This article is based on an official press release from Howmet Aerospace.

Howmet Aerospace Posts Record 2025 Results, Announces $1.8 Billion Acquisitions

Howmet Aerospace (NYSE: HWM) has reported record-breaking financial results for both the fourth quarter and the full fiscal year of 2025, driven by a robust recovery in the commercial aerospace sector and surging demand in defense markets. According to the company’s official release, full-year revenue climbed 11% year-over-year to $8.3 billion, while profitability metrics saw significant expansion.

The Pittsburgh-based engineered metal products manufacturers also revealed a major strategic expansion, announcing a definitive agreement to acquire Consolidated Aerospace Manufacturing, LLC (CAM) for approximately $1.8 billion. This move is expected to bolster Howmet’s fastening systems portfolio as the industry enters what many analysts describe as an aerospace supercycle.

In a statement regarding the company’s performance, Executive Chairman and CEO John Plant highlighted the operational discipline that led to record margins.

“The Howmet team delivered an exceptional quarter to cap a strong 2025… Adjusted EBITDA margin increased approximately 330 basis points to 30.1%, a record.”

, John Plant, Executive Chairman and CEO

Financial Highlights: Q4 and Full Year 2025

Howmet’s financial report outlines substantial growth across key metrics, reflecting strong pricing power and volume increases. For the fourth quarter of 2025, the company reported revenue of $2.2 billion, a 15% increase compared to the same period in 2024. Net income for the quarter rose to $372 million ($0.92 per share), up from $314 million ($0.77 per share) the previous year.

Full Year Performance

For the full fiscal year 2025, Howmet achieved:

• Revenue: $8.3 billion (up 11% year-over-year).
• Adjusted Earnings Per Share (EPS): $3.77, a 40% increase from the prior year.
• Adjusted EBITDA: $2.4 billion, representing a 26% year-over-year jump.
• Operating Cash Flow: A record $1.9 billion.

The company noted that free cash flow reached $1.43 billion, demonstrating a 93% conversion rate of net income, which supported aggressive capital deployment strategy throughout the year.

Segment Performance Breakdown

Growth was broad-based across Howmet’s four business segments, with the Engine Products division leading the charge. According to the earnings report, the Engine Products segment generated $1.16 billion in revenue, a 20% increase year-over-year. This surge was driven by high demand for engine spares and components across both commercial and defense sectors.

The Fastening Systems segment also saw double-digit growth, reporting $454 million in revenue (up 13%), aided by the ongoing recovery in commercial aerospace build rates. Engineered Structures grew 4% to $287 million, benefiting primarily from defense aerospace markets, while Forged Wheels revenue increased 9% to $264 million despite headwinds in the commercial transportation sector.

Strategic Capital Deployment and M&A

Alongside its earnings, Howmet detailed significant capital allocation activities. The company repurchased $700 million of common stock during the fiscal year and reduced its debt by $265 million, achieving a net debt-to-EBITDA ratio of 1.0x.

The headline strategic development is the agreement to acquire Consolidated Aerospace Manufacturing (CAM). Expected to close in the first half of 2026, this $1.8 billion acquisition is designed to deepen Howmet’s reach in the fasteners market. Additionally, the company completed the “bolt-on” acquisition of Brunner Manufacturing Co. to expand its engineered products capabilities.

“Healthy cash generation supported significant capital deployment… In full year 2025, Howmet repurchased a record $700 million of common stock.”

, John Plant, Executive Chairman and CEO

2026 Outlook and Guidance

Looking ahead, Howmet management issued optimistic guidance for fiscal year 2026, projecting continued double-digit growth. The company forecasts revenue between $9.0 billion and $9.2 billion. Adjusted EBITDA is expected to range from $2.71 billion to $2.81 billion, with Adjusted EPS projected between $4.35 and $4.55.

AirPro News Analysis

The results from Howmet Aerospace underscore the durability of the current aerospace upcycle. While supply chain constraints have plagued airframers like Boeing and Airbus, suppliers with strong pricing power and aftermarket exposure, like Howmet, are capitalizing on the demand for spare parts and maintenance. The 32% growth in the Gas Turbines sub-segment also points to a secondary tailwind: rising electricity demand from data centers, which is driving orders for industrial gas turbines.

Furthermore, the 20% jump in defense revenue aligns with global trends of increased defense budgets and restocking cycles. By acquiring CAM, Howmet appears to be positioning itself to capture more value per aircraft as production rates eventually stabilize and increase.

Sources: Howmet Aerospace Press Release