Howmet Aerospace (HWM) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $2.053B, up 9% year-over-year, led by commercial aerospace and defense aerospace growth, with net income rising to $407M and adjusted EBITDA reaching $589M (+22% YoY), margin expanding to 28.7%.

• Adjusted EPS grew 36% year-over-year to $0.91; GAAP EPS was $1.00.

• Free cash flow was a record $344M, supporting $175M in share repurchases in Q2 and $100M more in July, with a 20% dividend increase to $0.12 per share.

• Net debt to trailing EBITDA improved to a record low of 1.3x.

• 69% of revenue in the first half of 2025 came from aerospace markets, with record aircraft backlogs and continued demand for new aircraft and engine spares.

Financial highlights

• Q2 2025 net income was $407M, up from $266M in Q2 2024; operating income margin improved to 25.4%, and adjusted EBITDA margin reached 28.7%.

• Q2 2025 sales: $2.053B (up 9% YoY); six months sales: $3.995B (up 8%).

• Q2 2025 Segment Adjusted EBITDA: $613M (up from $508M in Q2 2024); six months: $1.193B (up from $968M).

• Free cash flow was $344M for Q2; cash balance at quarter-end was $546M.

• Share repurchases totaled $300M in the first half, with $100M more in July.

Outlook and guidance

• Full-year 2025 guidance raised: revenue $8.13B, adjusted EBITDA $2.32B, adjusted EPS $3.60, free cash flow $1.225B; Q3 2025 guidance: revenue $2.03B, adjusted EBITDA $580M, adjusted EPS $0.90.

• Growth expected to continue in Commercial Aerospace, Defense Aerospace, IGT, and oil & gas; commercial truck/transportation segment remains soft.

• Effective tax rate for 2025 before discrete items anticipated between 20.5% and 21.5%.

• FY 2025 capex projected at ~$390M (~5% of revenue).