Howmet Aerospace (HWM) Q4 2025 earnings summary

Executive summary

• Achieved record FY 2025 revenue of $8.3B, up 11% year-over-year, with strong growth in commercial and defense aerospace and gas turbines markets.

• Adjusted EBITDA for FY 2025 was $2.42B, up 26% year-over-year, with a margin of 29.3%, up 350 bps.

• Adjusted EPS for FY 2025 was $3.77, up 40% year-over-year.

• Free cash flow for FY 2025 was $1.43B, with a 93% net income conversion.

• Deployed $700M for share repurchases, $181M in dividends, and $265M in debt reduction in FY 2025.

Financial highlights

• Q4 2025 revenue was $2.17B, up 15% year-over-year; adjusted EBITDA was $653M, up 29% year-over-year.

• Q4 2025 adjusted EPS was $1.05, up 42% year-over-year.

• Q4 2025 adjusted operating income was $580M, up 34% year-over-year, with a margin of 26.8%.

• Adjusted EBITDA margin for FY 2025 was 29.3%, up 350 bps; Q4 2025 margin reached 30.1%.

• Net debt-to-LTM adjusted EBITDA improved to a record low of 1.0x.

Outlook and guidance

• FY 2026 revenue guidance: $9.0B–$9.2B, up ~10% year-over-year.

• FY 2026 adjusted EBITDA guidance: $2.71B–$2.81B, margin 30.1%–30.5%.

• FY 2026 adjusted EPS guidance: $4.35–$4.55; free cash flow $1.55B–$1.65B.

• Growth expected in commercial aerospace, defense, and gas turbines; commercial truck wheels to recover in late 2026.

• FY 2026 capex expected at ~$470M, ~5% of revenue.