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Howmet Aerospace Reports Record Financial Results for FY 2025

Howmet Aerospace, headquartered in Pittsburgh, recently released its fourth-quarter and full-year results for 2025, showcasing a remarkable performance driven by strong growth in the commercial aerospace and defense markets. The company achieved record revenues of $2.2 billion for the fourth quarter, reflecting a 15% increase compared to the same period in the previous year. This growth was largely attributed to a 13% rise in the commercial aerospace sector, 20% in defense aerospace, and 32% in gas turbines.

The operating income margin slightly decreased to 22.6%, down 90 basis points year-over-year. However, net income surged to $372 million, translating to an earnings per share (EPS) of $0.92, representing a 19% increase from the prior year. The fourth quarter recorded cash generation of $654 million from operations, further highlighting the company’s strong liquidity and cash flow management.

For the entire fiscal year of 2025, Howmet reported a substantial increase in revenues, totaling $8.3 billion, which was an 11% rise compared to 2024. This performance was bolstered by continued demand in the commercial and defense aerospace markets, with incremental revenue from gas turbines. The operating income margin improved to 24.8%, a 280 basis point improvement year-over-year. Net income reached $1.5 billion, equating to an EPS of $3.71 versus $2.81 the year before, marking a robust financial turnaround.

In terms of cash management, the company reported a staggering $1.9 billion generated from operations for the fiscal year, while utilizing $1.3 billion for financing activities and another $0.4 billion on investments. During the year, Howmet undertook aggressive share repurchases totaling $700 million, along with the payment of $0.44 per share in dividends, reflecting a commitment to maximize shareholder value.

Strategic Acquisitions and Future Outlook

In line with its growth strategy, Howmet Aerospace announced definitive agreements to acquire Consolidated Aerospace Manufacturing, LLC (CAM) for approximately $1.8 billion and Brunner Manufacturing Co. Inc. to enhance its product offerings in the aerospace sector. These moves are expected to close in the first half of 2026 and further solidify the company’s market position.

Looking ahead, Howmet Aerospace's management has provided guidance for fiscal year 2026, expecting revenue growth of around 10% with improved profitability and cash generation. This is attributed to the anticipated growth in passenger demand across commercial aerospace and stable recovery in the commercial transportation market.

With the automotive sector showing renewed strength and the energy segment experiencing a surge in gas turbine market demand, Howmet is well-positioned for sustainable growth moving forward. The executive team emphasized strong confidence in the company’s ability to navigate any future economic challenges thanks to its diversified portfolio and operational excellence.

In summary, Howmet Aerospace's impressive financial performance in FY 2025 highlights its strategic direction and robust operational capabilities, setting the stage for further advancements and shareholder rewards in 2026 and beyond.