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.

• Q4 2025 revenue reached $2.17B, up 15% year-over-year; adjusted EBITDA for Q4 was $653M, up 29%; Q4 adjusted EPS was $1.05, up 42%.

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

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

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

Financial highlights

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

• FY 2025 adjusted EBITDA margin was 29.3%, up 350 bps year-over-year; Q4 exit rate at 30.1%.

• Record capital expenditures of $453M in FY 2025, mainly in Engine Products.

• Debt reduced by $265M in FY 2025; net debt to trailing EBITDA at a record low of 1x.

• Year-end cash balance was $743M.

Outlook and guidance

• FY 2026 revenue guidance: $9.0B–$9.2B, up ~10% year-over-year; adjusted EBITDA: $2.71B–$2.81B, margin 30.1%–30.5%; adjusted EPS: $4.35–$4.55; free cash flow: $1.55B–$1.65B.

• Q1 2026 guidance: revenue of $2.235B ±$10M, EBITDA of $685M ±$5M, EPS of $1.10 ±$0.01.

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

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

• Gas turbine revenue base of ~$1B expected to double over 3–5 years.