01—Abstract
Summary
Summary of the 10-K filed February 12, 2026. Cited figures are marked; the original filing is the authoritative source.
Howmet Aerospace Inc. (HWM) reported strong financial performance for the fiscal year 2025, demonstrating robust growth driven primarily by its aerospace segments.
Sales increased by 11% year-over-year to $8.25 billiona, propelled by higher volumes, favorable pricing, and cost pass-throughs, particularly in commercial and defense aerospace, as well as the gas turbines market. Net income saw a significant rise of 31% to $1.51 billion, and diluted earnings per share grew by 32% to $3.71. The company's operational efficiency improved, reflected in a higher Segment Adjusted EBITDA of $2.51 billion, a 25% increase from the previous year.
Looking ahead to 2026, Howmet anticipates continued sales growth driven by strong demand in its key markets, with planned capital expenditures to support capacity expansion. The company also announced a significant acquisition of Consolidated Aerospace Manufacturing, LLC (CAM) for approximately $1.8 billionb, expected to close in the first half of 2026, which is poised to strengthen its Fastening Systems segment. Howmet also recently acquired Brunner Manufacturing Co. Inc. These strategic moves underscore the company's focus on expanding its market position and product offerings.
02—Key points
Key Highlights
- Sales increased by 11% to $8.25 billion in 2025, driven by strong performance in aerospace and gas turbine markets.
- Net income rose by 31% to $1.51 billion, with diluted EPS increasing by 32% to $3.71.
- Segment Adjusted EBITDA grew by 25% to $2.51 billion, indicating improved operational performance.
- The company announced the planned acquisition of Consolidated Aerospace Manufacturing, LLC (CAM) for approximately $1.8 billion, expected to close in the first half of 2026.
- Howmet also completed the acquisition of Brunner Manufacturing Co. Inc., further bolstering its Fastening Systems segment.
- The aerospace segments (commercial and defense) accounted for approximately 70% of revenue in 2025.
- The company repurchased approximately 4.4 million shares for $700 million under its share repurchase program.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 12, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $8.25B$7.43B | +11.1% |
| R&D Expenses | $37.00M$33.00M | +12.1% |
| SG&A Expenses | $370.00M$347.00M | +6.6% |
| Operating Income | $2.05B$1.63B | +25.3% |
| Net Income | $1.51B$1.16B | +30.6% |
| EPS (Basic) | $3.73$2.83 | +31.8% |
| EPS (Diluted) | $3.71$2.81 | +32.0% |
| Shares Outstanding (Basic) | 404.00M408.00M | −1.0% |
| Shares Outstanding (Diluted) | 406.00M410.00M | −1.0% |
05—Questions
Frequently Asked Questions
What are the key drivers of Howmet's revenue growth in 2025?
Howmet's revenue growth of 11% in 2025 was primarily driven by increased demand in the commercial aerospace, defense aerospace, and gas turbines markets, including engine spares. Favorable product pricing and cost pass-throughs also contributed significantly to the growth, partially offset by lower volumes in the commercial transportation market.
What is the strategic significance of the Consolidated Aerospace Manufacturing, LLC (CAM) acquisition?
The acquisition of CAM for approximately $1.8 billion is a significant strategic move that is expected to be integrated into Howmet's Fastening Systems segment. This acquisition is anticipated to expand Howmet's offering of fastening solutions and strengthen its position in the aerospace market.
How is Howmet managing its debt and capital structure?
Howmet has been actively managing its debt, reducing total debt by $265 million in 2025 through early redemptions and prepayments, partially offset by new debt issuances. The company's credit ratings have been upgraded by major agencies, reflecting its deleveraging actions and strong financial performance. The company also continues to execute its share repurchase program.
What are the company's capital expenditure plans for 2026?
For 2026, Howmet expects capital expenditures to remain elevated, with planned investments focused on capacity expansions to support growth in the aerospace and gas turbines markets, as well as to drive market share gains.
06—Continue