Core Insights - Howmet Aerospace reported record revenue and profit for FY 2025, with revenue of $8.3 billion, up 11% year over year, and net income of $1.5 billion, up 25% year over year [1][2][3] - The company generated $1.9 billion in cash from operations for FY 2025, with a free cash flow of $1.4 billion, reflecting strong cash generation capabilities [1][2] - For FY 2026, Howmet expects revenue growth of approximately 10% and improved profit and cash generation [1][4] Fourth Quarter 2025 Financial Results - Fourth quarter revenue reached $2.2 billion, a 15% increase year over year, driven by growth in commercial aerospace (up 13%), defense aerospace (up 20%), and gas turbines (up 32%) [1][2] - Net income for Q4 2025 was $372 million, or $0.92 per share, compared to $314 million, or $0.77 per share, in Q4 2024 [1][2] - Adjusted EPS for Q4 2025 was $1.05, up 42% year over year, with adjusted EBITDA of $653 million, a 29% increase year over year [1][2] Full Year 2025 Financial Performance - Full year operating income was $2.0 billion, up 25% year over year, with an operating income margin of 24.8%, an increase of 280 basis points [2][3] - Adjusted EBITDA for FY 2025 was $2.4 billion, up 26% year over year, with an adjusted EBITDA margin of 29.3%, up 350 basis points [2][3] - The company repurchased $700 million of common stock in FY 2025 and paid $181 million in dividends [1][2] Segment Performance - Engine Products segment reported Q4 revenue of $1.2 billion, a 20% increase year over year, with adjusted EBITDA of $396 million, up 31% [2][3] - Fastening Systems segment achieved Q4 revenue of $454 million, a 13% increase year over year, with adjusted EBITDA of $139 million, up 25% [3] - Engineered Structures segment reported Q4 revenue of $287 million, a 4% increase year over year, with adjusted EBITDA of $63 million, up 24% [3] Strategic Actions and Guidance - The company announced the acquisition of Consolidated Aerospace Manufacturing for approximately $1.8 billion, expected to close in the first half of 2026 [3][4] - Howmet redeemed all outstanding preferred stock for approximately $55 million and reduced its gross pension obligation by approximately $125 million [4] - For Q1 2026, revenue guidance is set between $2.225 billion and $2.245 billion, with adjusted EBITDA guidance of $680 million to $690 million [4]