Howmet Aerospace’s stellar second quarter 2025 results highlight robust financial performance driven by strong demand across key aerospace and industrial sectors, setting new company records in revenue and profitability. This exceptional performance reflects the company’s strategic positioning and operational efficiency within the advanced manufacturing landscape, reaffirming its leadership in providing critical engineered solutions for the global aerospace industry.
The company reported record second quarter 2025 revenue of $2.05 billion, marking an impressive 9% increase year over year. This substantial growth was primarily fueled by significant expansion in the commercial aerospace market, which saw an 8% rise, alongside a robust 21% surge in the defense aerospace market, and a 17% increase in the industrial and other market. These gains were only partially offset by a minor 4% decline in the commercial transportation market, demonstrating the diversified strength of Howmet Aerospace’s core segments.
Profitability metrics also reached new heights, with Net Income climbing to $407 million, or $1.00 per share, in Q2 2025, a significant jump from $266 million, or $0.65 per share, in the prior year. Adjusted EBITDA, a key indicator of operational health, soared to $589 million, up 22% year over year, pushing the Adjusted EBITDA margin to a solid 28.7%, reflecting improved operational leverage and cost management.
Strong cash generation further underscored the company’s financial prowess, with $446 million generated from operations and a second-quarter record of $344 million in free cash flow. This robust cash flow supported aggressive capital deployment, including $175 million in common stock repurchases during the quarter, with an additional $100 million deployed in July. Moreover, Howmet Aerospace demonstrated its commitment to shareholder returns by increasing the third-quarter common stock dividend by 20% to $0.12 per share, signaling confidence in future financial stability.
Executive Chairman and CEO John Plant highlighted the team’s exceptional execution, noting that Howmet surpassed the $2 billion revenue mark for the first time in a quarter and exceeded the high end of guidance across all metrics. Plant emphasized continued investment in growth, with capital expenditures up approximately 60% in the first half of 2025, reinforced by strong customer contracts. He affirmed the company’s robust balance sheet and optimistic outlook for the commercial aerospace market, driven by healthy passenger traffic and substantial OEM backlogs for new, fuel-efficient aircraft, while acknowledging the ongoing weakness in the commercial transportation market.
Segment performance remained strong, with Engine Products reporting $1.1 billion in revenue, up 13% year over year, and a 20% increase in Segment Adjusted EBITDA to $349 million, benefiting from growth in commercial aerospace, defense aerospace, and industrial gas turbine markets. Fastening Systems also saw impressive gains, with revenue reaching $431 million, a 9% year-over-year increase, and Segment Adjusted EBITDA rising 25% to $126 million, propelled by growth in commercial and defense aerospace as well as productivity improvements.
Engineered Structures reported revenue of $290 million, up 5% year over year, driven by the defense aerospace market, particularly the F-35 program, and saw Segment Adjusted EBITDA jump 55% to $62 million, reflecting significant productivity gains. Conversely, Forged Wheels experienced a slight revenue decrease of 1% to $276 million due to lower commercial transportation volumes, but managed a 1% increase in Segment Adjusted EBITDA to $76 million through strategic cost reductions.
Looking ahead, Howmet Aerospace has confidently raised its full-year 2025 guidance across all financial metrics, building on the second quarter’s outperformance. The company anticipates sustained growth in commercial and defense aerospace, buoyed by robust demand and ongoing market tailwinds, along with continued strength in industrial gas turbines. This revised outlook underscores Howmet’s strategic agility and its capacity to deliver consistent value to shareholders amidst evolving market dynamics.
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