Howmet Aerospace reported third‑quarter 2025 results, with revenue increasing 14% year‑over‑year to $2.09 billion. Net income rose to $385 million, or $0.95 per diluted share, up from $332 million ($0.81) in the same quarter last year. Adjusted EBITDA reached $614 million, a 26% increase, and the adjusted EBITDA margin climbed to 29.4%. Free cash flow was $423 million after $108 million of capital expenditures. The company repurchased $200 million of common stock during the quarter and announced a 20% dividend increase to $0.12 per share. Debt was reduced by $63 million, strengthening the balance sheet.
Commercial aerospace revenue grew 15%, defense aerospace grew 24%, and industrial and other markets grew 18%. Commercial transportation revenue declined 3% due to a slowdown in new aircraft orders and higher competition in the regional jet market. Industrial and other markets include industrial gas turbines, data‑center components, and other high‑margin products, with growth driven by strong demand for engine spares and new turbine installations.
Management highlighted that the company is investing heavily in its engines business, with approximately 70% of year‑to‑date capital expenditures directed toward this segment. The CEO noted that while commercial transportation faces short‑term headwinds, the company’s defense and industrial portfolios are positioned for continued growth, supported by a robust backlog and pricing power.
For fiscal 2025, Howmet raised its guidance to revenue of approximately $8.18 billion, adjusted EBITDA of $2.38 billion, diluted EPS of $3.68, and free cash flow of $1.325 billion. Q4 guidance was updated to revenue of $2.10 billion, adjusted EBITDA of $615 million, EPS of $0.96, and free cash flow of $1.30 billion. The company also provided initial revenue guidance for 2026 of about $9 billion, representing roughly 10% year‑over‑year growth.
S&P upgraded Howmet Aerospace’s long‑term issuer credit rating from BBB to BBB+ on September 8, 2025, reflecting the company’s improved financial standing and operational efficiency.
Shareholder returns remain a priority, with $600 million of share repurchases year‑to‑date and a consistent increase in dividends. The 20% dividend hike to $0.12 per share underscores the company’s commitment to returning value to investors.
The results are underpinned by strong demand in both commercial and defense aerospace sectors, supported by a sizable backlog for new aircraft and increased demand for engine spares. Despite the commercial transportation decline, the company’s focus on high‑margin segments and disciplined capital allocation positions it to sustain growth and deliver value to stakeholders.
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