Howmet's Q3 Earnings & Revenues Top Estimates, Increase Y/Y

Core Insights - Howmet Aerospace Inc. reported third-quarter 2025 adjusted earnings of 95 cents per share, exceeding the Zacks Consensus Estimate of 91 cents, marking a 34% year-over-year increase [1][10] - Total revenues reached $2.09 billion, surpassing the consensus estimate of $2.05 billion, and reflecting a 14% increase from the previous year, driven by strong demand in the commercial aerospace market [1][10] Segment Performance - The Engine Products segment generated revenues of $1.11 billion, accounting for 52.9% of total revenues, with a 17% year-over-year increase, supported by growth in commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets [2] - The Fastening Systems segment reported revenues of $448 million, representing 21.5% of total revenues, with a 14% year-over-year increase, primarily due to growth in the commercial aerospace market, although partially offset by weakness in commercial transportation [3] - The Engineered Structures segment's revenues increased 14% year-over-year to $289 million, benefiting from growth in defense and commercial aerospace markets [4] - The Forged Wheels segment generated revenues of $247 million, a 1% year-over-year increase, driven by higher aluminum cost pass-through, despite a 16% decline in volumes in the commercial transportation market [5] Financial Metrics - Cost of goods sold rose 8.9% year-over-year to $1.37 billion, while selling, general, and administrative expenses increased 17.6% to $100 million [6] - Adjusted EBITDA, excluding special items, was $614 million, up 26.1% year-over-year, with an adjusted EBITDA margin of 29.4%, an increase of 290 basis points [6] - Adjusted operating income increased 29.4% year-over-year to $542 million, with an adjusted operating income margin of 25.9%, up 310 basis points [7] Balance Sheet and Cash Flow - As of the end of the third quarter, Howmet had cash and cash equivalents of $659 million, up from $564 million at the end of December 2024, and long-term debt decreased to $3.19 billion from $3.31 billion [8] - In the first nine months of 2025, Howmet generated net cash of $1.23 billion from operating activities, compared to $818 million in the same period last year, with capital expenditures totaling $329 million [9] Future Outlook - For the fourth quarter of 2025, Howmet expects revenues between $2.09 billion and $2.11 billion, with adjusted EBITDA projected between $605 million and $615 million [12] - The 2025 revenue outlook has been raised to a range of $8.175 billion to $8.195 billion, with adjusted EPS forecasted between $3.66 and $3.68 [13]