Howmet Aerospace (HWM) Q4 2025 Earnings
How Did HWM Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −1.54%.
Did HWM Beat Earnings? Q4 2025 Results
Yes. Howmet Aerospace reported Q4 2025 earnings of $1.05 a share on Feb 12, 2026, beating the $0.97 consensus estimate by 8.7%. Revenue was $2.2B against a $2.1B estimate.
Howmet Aerospace capped a record year with a standout fourth quarter, posting adjusted EPS of $1.05 against a consensus estimate of $0.95, a beat of 10.65%, while revenue of $2.17 billion topped the $2.12 billion estimate by 2.13% and climbed 14.7% year over year. The primary engine behind those results was broad-based aerospace demand, with Engine Products leading the way at 20% revenue growth in the quarter and gas turbines surging 32%, a trajectory management says is entering its largest expansion phase in years as data center electricity needs accelerate power generation investment. Adjusted EBITDA margin expanded roughly 330 basis points to 30.1%, underscoring the operating leverage embedded in Howmet's model even as the company absorbed approximately $54 million in net special charges tied largely to a UK pension settlement. The company's pending $1.80 billion acquisition of Consolidated Aerospace Manufacturing adds further strategic weight to its fastener portfolio. For full-year 2026, Howmet guides baseline revenue of $9.10 billion and adjusted EPS of $4.45, with free cash flow targeted at $1.60 billion.
- Commercial aerospace market growth of 13% in Q4, including engine spares growth
- Defense aerospace market growth of 20% in Q4
- Gas turbines market growth of 32% in Q4, driven by electricity generation demand especially from data centers
- Adjusted EBITDA margin expansion of approximately 330 basis points year over year to 30.1% in Q4
- Productivity gains across segments
- Cost reductions in Forged Wheels offsetting lower commercial transportation volumes
“The Howmet team delivered an exceptional quarter to cap a strong 2025. Revenue growth accelerated in the fourth quarter 2025 to 15% year over year, reflecting healthy growth in the commercial aerospace, defense aerospace, and gas turbines markets. Adjusted EBITDA grew 29% year over year to $653 million and Adjusted EBITDA Margin increased approximately 330 basis points to 30.1%, both records. Adjusted Earnings per Share grew 42% to a record $1.05. Free Cash Flow for full year 2025 was $1.43 billion and 93% conversion of Net Income after record capital expenditures of $453 million as Howmet continued to invest for growth.”
Howmet Aerospace CEO, on the earnings call
What Was Howmet Aerospace's Outlook in Q4 2025?
For FY 2026, Howmet guides revenue growth at approximately 10% with baseline revenue of $9.100B (range $9.000B-$9.200B), baseline adjusted EBITDA of $2.760B (range $2.710B-$2.810B), adjusted EBITDA margin of 30.3% (range 30.1%-30.5%), baseline adjusted EPS of $4.45 (range $4.35-$4.55), and baseline free cash flow of $1.600B (range $1.550B-$1.650B). For Q1 2026, guidance calls for baseline revenue of $2.235B (range $2.225B-$2.245B), baseline adjusted EBITDA of $685M (range $680M-$690M), and baseline adjusted EPS of $1.10 (range $1.09-$1.11). The vast majority of markets served are in a growth phase. Commercial aerospace benefits from rising passenger demand and multi-year aircraft under-build with record OEM backlogs. Gas turbines are entering their largest growth phase in years driven by data center electricity demand. Commercial transportation is expected to bottom in Q1 2026 and recover in H2 2026.
HWM YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $2.2B | $1.9B | +14.7% |
| Operating Income | $489.0M | $457.0M | +7.0% |
| Net Income | $372.0M | $314.0M | +18.5% |
HWM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.