Howmet Aerospace Reports Second Quarter 2025 Results

Core Insights - Howmet Aerospace reported record revenue of $2.05 billion for the second quarter of 2025, representing a 9% increase year over year, driven by growth in the commercial aerospace market (8%), defense aerospace market (21%), and industrial and other markets (17%) [3][4][8] - The company achieved a net income of $407 million, or $1.00 per share, compared to $266 million, or $0.65 per share, in the same quarter of 2024, with adjusted earnings per share of $0.91, up 36% year over year [4][8] - Operating income increased by 31% year over year to $521 million, with an operating income margin of 25.4%, up approximately 420 basis points [5][8] - Adjusted EBITDA for the quarter was $589 million, a 22% increase year over year, with an adjusted EBITDA margin of 28.7%, up 300 basis points [6][8] - The company generated $344 million in free cash flow, marking the ninth consecutive quarter of positive free cash flow generation [7][8] Financial Performance - Revenue for the second quarter of 2025 was $2.05 billion, up 9% year over year, with significant contributions from various markets [3][8] - Net income was reported at $407 million, an increase from $266 million in the previous year, with adjusted net income excluding special items at $371 million [4][8] - Operating income reached $521 million, reflecting a 31% year-over-year increase, with a margin of 25.4% [5][8] - Adjusted EBITDA was $589 million, a 22% increase year over year, with a margin of 28.7% [6][8] Shareholder Returns and Debt Management - The company repurchased $175 million of common stock in the second quarter of 2025 and an additional $100 million in July, totaling $400 million year-to-date [9][16] - A quarterly dividend of $0.12 per share was declared, representing a 20% increase from the previous dividend [10][17] - Howmet Aerospace paid down $76 million of its USD Term Loan, reducing annualized interest expense by approximately $4 million [10][18] Guidance and Market Outlook - Full year 2025 guidance was raised on all metrics following strong second quarter performance [10][19] - The commercial aerospace market is expected to continue growing, supported by healthy passenger traffic and high OEM backlogs [10][19] - The defense aerospace market remains strong, and demand for industrial gas turbines is anticipated to stay robust [10][19]