Howmet Aerospace Inc. reported record first quarter 2025 revenue of $1.94 billion, a 6% increase year-over-year, driven primarily by 9% growth in the commercial aerospace market. The company achieved record adjusted net income of $351 million, or $0.86 per share, and record adjusted EBITDA of $560 million, up 28% year-over-year, with a record margin of 28.8%.
Free cash flow for the quarter was $134 million, an increase from $95 million in the prior year period, marking the eighth consecutive quarter of positive free cash flow generation. Segment performance was strong, with Engine Products revenue up 13% to $996 million and Segment Adjusted EBITDA up 31% to a record $325 million, achieving a 32.6% margin.
Howmet Aerospace raised its full-year 2025 guidance, increasing the baseline for adjusted EBITDA to $2.25 billion, adjusted EPS to $3.40, and free cash flow to $1.15 billion, while widening the revenue range to $7.88 billion to $8.18 billion. The company also raised its internal assumption for Boeing 737 MAX build rates to an average of 28 aircraft per month for the year, up from a prior assumption of 25 per month.
The company continued its capital allocation strategy, repurchasing $125 million of common stock in the first quarter of 2025 and an additional $100 million in April. Howmet Aerospace's strong balance sheet was recognized by Fitch Ratings, which upgraded its debt rating to BBB+, three notches into Investment Grade, on March 31, 2025.
Management noted that while the tariff situation remains fluid, the company expects to pass on tariff-related costs to its customers. The commercial aerospace market remains poised for continued growth, supported by record backlogs and demand for new, fuel-efficient aircraft, with industrial gas turbine demand also increasing due to data center expansion.
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