Howmet Aerospace Reports Third Quarter 2025 Results

Core Insights - Howmet Aerospace reported record revenue of $2.09 billion for Q3 2025, reflecting a 14% year-over-year growth, driven by strong performance in the commercial aerospace, defense aerospace, and industrial markets [3][4][7] - The company achieved a net income of $385 million, or $0.95 per share, compared to $332 million, or $0.81 per share, in Q3 2024, marking a significant increase in profitability [4][8] - Full year 2026 revenue guidance has been raised to approximately $9 billion, representing a ~10% increase year-over-year [9][16] Financial Performance - Q3 2025 Adjusted EBITDA was $614 million, up 26% year-over-year, with an Adjusted EBITDA margin of 29.4%, an increase of approximately 290 basis points [6][8] - Operating income for Q3 2025 was $542 million, a 29% increase from the previous year, with an operating income margin of 25.9%, up about 300 basis points [5][8] - Free cash flow generated in Q3 2025 was $423 million after $108 million in capital expenditures [7][8] Shareholder Returns - The company repurchased $200 million of common stock in Q3 2025 and an additional $100 million in October 2025, totaling $600 million year-to-date [9][13] - A 20% increase in the quarterly dividend to $0.12 per share was declared in Q3 2025 [14][9] - The company paid down $63 million of debt in Q3 2025, reducing annualized interest expenses by approximately $4 million [15][9] Market Outlook - The commercial aerospace market is expected to continue growing, supported by increasing air traffic and a backlog of commercial aircraft orders extending through the decade [7][9] - The defense aerospace market remains robust, particularly due to demand for F-35 and legacy fighter aircraft [7][9] - However, the commercial transportation market is experiencing weakness, which may impact overall performance [7][9]