Howmet Aerospace Reports Record FY 2025 Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: PRnewswire
- Significant Revenue Growth: Howmet Aerospace achieved record revenue of $8.3 billion in FY 2025, an 11% increase year-over-year, primarily driven by a 12% growth in the commercial aerospace market, 21% in defense aerospace, and 25% in gas turbines, indicating strong demand and market positioning in the aerospace sector.
- Record Net Income: The company reported a net income of $1.5 billion for FY 2025, with earnings per share of $3.71, reflecting a 25% increase from $1.2 billion and a 32% increase from $2.81 per share in FY 2024, showcasing significant improvements in profitability and effective cost management.
- Strong Free Cash Flow: Howmet generated $1.43 billion in free cash flow for FY 2025, achieving a conversion rate of 93% of net income, demonstrating robust cash generation capabilities post capital expenditures, which supports future investments and shareholder returns.
- Stock Buybacks and Debt Management: The company repurchased $700 million of common stock and reduced debt by $265 million in FY 2025, reflecting proactive measures in optimizing capital structure and enhancing shareholder value.
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Analyst Views on HWM
Wall Street analysts forecast HWM stock price to fall
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 244.790
Low
209.00
Averages
236.77
High
258.00
Current: 244.790
Low
209.00
Averages
236.77
High
258.00
About HWM
Howmet Aerospace Inc. is a global provider of advanced engineered solutions for the aerospace and transportation industries. The Company’s primary business focus is on jet engine components, aerospace fastening systems, and airframe structural components. Its Engine Products segment produces investment castings, including airfoils, and seamless rolled rings primarily for aircraft engines and industrial gas turbine applications. Its Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial and other fasteners. Its Engineered Structures segment produces titanium ingots and mill products for aerospace and defense applications and is vertically integrated to produce titanium forgings, titanium extrusions, and machining services for airframe, wing, aero-engine, and landing gear components. Its Forged Wheels segment provides forged aluminum wheels and related products for heavy-duty trucks and the commercial transportation market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- EBITDA and Free Cash Flow: The fourth quarter EBITDA was $653 million, up 29%, while free cash flow reached $1.43 billion, exceeding guidance by over $100 million, demonstrating strong cash generation capabilities post capital expenditures.
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- Cisco Profit Warning: Cisco Systems forecasted that rising memory chip prices would erode profitability, leading to a more than 10% drop in its stock price, which may prompt investors to revise down their future performance expectations, negatively impacting overall market sentiment.
- Employment Data Impact: Initial US jobless claims fell by 5,000 to 227,000, reflecting a slightly weaker labor market, which could influence the Federal Reserve's monetary policy decisions and lower market expectations for future rate cuts.
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