Howmet Aerospace Inc. reported third‑quarter 2025 results that included record revenue of $2.09 billion, up 14% year‑over‑year and $40 million sequentially from $2.05 billion in Q2. Net income reached $385 million, or $0.95 per share, slightly below the $1.00 EPS reported in Q2. Adjusted EBITDA climbed to $614 million, a 26% increase from the same period last year, and the adjusted EBITDA margin expanded to 29.4%, up from 28.8% in Q2. Free cash flow for the quarter was $423 million after $108 million of capital expenditures.
Shareholder returns were significant: Howmet repurchased $200 million of common stock during the quarter and an additional $100 million in October, bringing year‑to‑date buybacks to $600 million. The board increased the quarterly dividend by 20% to $0.12 per share. The company also paid down $63 million of debt, strengthening its balance sheet.
Segment performance highlighted continued strength across the business. Engine Products generated $1.105 billion in revenue, up 17% YoY, with an adjusted EBITDA margin of 33.3%. Fastening Systems posted $448 million in revenue, a 14% increase, with a margin of 30.8%. Engineered Structures delivered $289 million in revenue and a 20.1% margin, while Forged Wheels reported $247 million in revenue and a 29.6% margin.
Looking ahead, Howmet raised its full‑year 2025 guidance. Revenue is now projected at $8.18 billion, up from the previous $8.08‑$8.18 billion range. Adjusted EBITDA guidance is $2.375 billion, within the prior $2.375‑$2.38 billion range, and earnings per share are now $3.68, compared to the prior $3.66‑$3.68 range. Free cash flow guidance for the year is $1.325 billion, within the earlier $1.275‑$1.325 billion range. The company also projects 2026 revenue of approximately $9 billion, about 10% growth YoY.
Howmet’s credit rating was upgraded to BBB+ by S&P on September 8, 2025, reflecting its strengthened balance sheet and cash‑flow generation. Management cited robust demand from defense and data‑center markets, coupled with effective pricing actions and manufacturing footprint optimization, as key drivers of margin expansion. The company noted a 3% decline in the commercial transportation market, attributed to a slowdown in passenger aircraft orders, but emphasized that defense and data‑center demand offset this headwind.
The company’s results demonstrate disciplined cost management and pricing power amid input cost pressures. While the commercial transportation segment faced a modest decline, the overall business benefited from strong demand in defense and data‑center markets, supporting the company’s upward revision of full‑year guidance and its continued focus on operational efficiency and strategic capital allocation.
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