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Howmet's Q3 Earnings & Revenues Top Estimates, Increase Y/Y
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Key Takeaways
Howmet's Q3 adjusted EPS rose 34% to $0.95, topping the consensus estimate of $0.91.
Revenues grew 14% year over year to $2.09B, fueled by strong commercial aerospace demand.
2025 revenue outlook lifted to $8.175-$8.195B, with EPS projected between $3.66 and $3.68.
Howmet Aerospace Inc.’s (HWM - Free Report) third-quarter 2025 adjusted earnings of 95 cents per share beat the Zacks Consensus Estimate of 91 cents. The bottom line surged 34% year over year.
Total revenues of $2.09 billion beat the consensus estimate of $2.05 billion. The top line increased 14% from the year-ago quarter. The increase was backed by strength in the company’s commercial aerospace market.
Howmet’s Segmental Details
The Engine Products segment’s revenues totaled $1.11 billion, representing 52.9% of net revenues. On a year-over-year basis, the segment’s revenues increased 17%, driven by growth in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets. The Zacks Consensus Estimate for Engine Products’ revenues was pegged at $1.07 billion.
The Fastening Systems segment generated revenues of $448 million, accounting for 21.5% of net revenues. Revenues increased 14% year over year, driven by growth in the commercial aerospace market, partially offset by softness in the commercial transportation market. The consensus estimate for Fastening Systems’ revenues was pegged at $438 million.
The Engineered Structures segment’s revenues, representing 13.8% of net revenues, increased 14% year over year to $289 million. The results benefited from growth in the defense and commercial aerospace markets. The Zacks Consensus Estimate for Engineered Structures’ revenues was pegged at $298 million.
The Forged Wheels segment’s revenues totaled $247 million, representing 11.8% of net revenues. On a year-over-year basis, the segment’s revenues were up 1%, driven by higher aluminum cost pass-through. This was offset by 16% lower volumes in the commercial transportation market. The consensus estimate for Forged Wheels’ revenues was pegged at $234 million.
Howmet Aerospace Inc. Price, Consensus and EPS Surprise
Howmet’s cost of goods sold rose 8.9% year over year to $1.37 billion. Selling, general, administrative and other expenses increased 17.6% year over year to $100 million. Research and development expenses were $10 million.
Adjusted EBITDA, excluding special items, was $614 million, up 26.1% year over year. Adjusted EBITDA margin increased 290 basis points year over year to 29.4%. Adjusted operating income increased 29.4% year over year to $542 million.
The adjusted operating income margin was 25.9%, up 310 basis points year over year. Net interest expenses totaled $37 million, down 15.9% from the year-ago quarter.
Howmet’s Balance Sheet and Cash Flow
Exiting the third quarter, Howmet had cash and cash equivalents of $659 million compared with $564 million at the end of December 2024. Long-term debt was $3.19 billion compared with $3.31 billion at the end of fourth-quarter 2024.
In the first nine months of 2025, Howmet generated net cash of $1.23 billion from operating activities compared with $818 million in the year-ago period. Capital expenditures totaled $329 million compared with $219 million a year ago. Free cash flow in the same period was $901 million.
Howmet paid out dividends of $131 million in the first nine months of 2025 compared with $76 million in the year-ago period. In the same period, it repurchased shares worth $600 million, which included an additional repurchase of $100 million in October 2025.
HWM’s Q4 Outlook
For the fourth quarter of 2025, Howmet expects revenues to be in the range of $2.09-$2.11 billion. Adjusted EBITDA is expected to be between $605 million and $615 million, while the adjusted EBITDA margin is anticipated to be in the range of 28.9-29.1%. Adjusted earnings per share (EPS) are estimated to be in the range of 94-96 cents.
Howmet’s 2025 Outlook
Howmet predicts revenues to be in the range of $8.175-$8.195 billion compared with $8.08-$8.18 billion projected earlier. Adjusted EBITDA is expected to be between $2.37 billion and $2.38 billion, while the adjusted EBITDA margin is projected to be 29%.
Adjusted EPS is forecasted to be in the band of $3.66-$3.68. Free cash flow is expected to be in the range of $1.275-$1.325 billion.
HWM’s Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Dover Corporation (DOV - Free Report) reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.
Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.
Ardagh Metal Packaging S.A. (AMBP - Free Report) came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.
Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion.
Packaging Corporation of America (PKG - Free Report) reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.
Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.
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Howmet's Q3 Earnings & Revenues Top Estimates, Increase Y/Y
Key Takeaways
Howmet Aerospace Inc.’s (HWM - Free Report) third-quarter 2025 adjusted earnings of 95 cents per share beat the Zacks Consensus Estimate of 91 cents. The bottom line surged 34% year over year.
Total revenues of $2.09 billion beat the consensus estimate of $2.05 billion. The top line increased 14% from the year-ago quarter. The increase was backed by strength in the company’s commercial aerospace market.
Howmet’s Segmental Details
The Engine Products segment’s revenues totaled $1.11 billion, representing 52.9% of net revenues. On a year-over-year basis, the segment’s revenues increased 17%, driven by growth in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets. The Zacks Consensus Estimate for Engine Products’ revenues was pegged at $1.07 billion.
The Fastening Systems segment generated revenues of $448 million, accounting for 21.5% of net revenues. Revenues increased 14% year over year, driven by growth in the commercial aerospace market, partially offset by softness in the commercial transportation market. The consensus estimate for Fastening Systems’ revenues was pegged at $438 million.
The Engineered Structures segment’s revenues, representing 13.8% of net revenues, increased 14% year over year to $289 million. The results benefited from growth in the defense and commercial aerospace markets. The Zacks Consensus Estimate for Engineered Structures’ revenues was pegged at $298 million.
The Forged Wheels segment’s revenues totaled $247 million, representing 11.8% of net revenues. On a year-over-year basis, the segment’s revenues were up 1%, driven by higher aluminum cost pass-through. This was offset by 16% lower volumes in the commercial transportation market. The consensus estimate for Forged Wheels’ revenues was pegged at $234 million.
Howmet Aerospace Inc. Price, Consensus and EPS Surprise
Howmet Aerospace Inc. price-consensus-eps-surprise-chart | Howmet Aerospace Inc. Quote
HWM’s Margin Profile
Howmet’s cost of goods sold rose 8.9% year over year to $1.37 billion. Selling, general, administrative and other expenses increased 17.6% year over year to $100 million. Research and development expenses were $10 million.
Adjusted EBITDA, excluding special items, was $614 million, up 26.1% year over year. Adjusted EBITDA margin increased 290 basis points year over year to 29.4%. Adjusted operating income increased 29.4% year over year to $542 million.
The adjusted operating income margin was 25.9%, up 310 basis points year over year. Net interest expenses totaled $37 million, down 15.9% from the year-ago quarter.
Howmet’s Balance Sheet and Cash Flow
Exiting the third quarter, Howmet had cash and cash equivalents of $659 million compared with $564 million at the end of December 2024. Long-term debt was $3.19 billion compared with $3.31 billion at the end of fourth-quarter 2024.
In the first nine months of 2025, Howmet generated net cash of $1.23 billion from operating activities compared with $818 million in the year-ago period. Capital expenditures totaled $329 million compared with $219 million a year ago. Free cash flow in the same period was $901 million.
Howmet paid out dividends of $131 million in the first nine months of 2025 compared with $76 million in the year-ago period. In the same period, it repurchased shares worth $600 million, which included an additional repurchase of $100 million in October 2025.
HWM’s Q4 Outlook
For the fourth quarter of 2025, Howmet expects revenues to be in the range of $2.09-$2.11 billion. Adjusted EBITDA is expected to be between $605 million and $615 million, while the adjusted EBITDA margin is anticipated to be in the range of 28.9-29.1%. Adjusted earnings per share (EPS) are estimated to be in the range of 94-96 cents.
Howmet’s 2025 Outlook
Howmet predicts revenues to be in the range of $8.175-$8.195 billion compared with $8.08-$8.18 billion projected earlier. Adjusted EBITDA is expected to be between $2.37 billion and $2.38 billion, while the adjusted EBITDA margin is projected to be 29%.
Adjusted EPS is forecasted to be in the band of $3.66-$3.68. Free cash flow is expected to be in the range of $1.275-$1.325 billion.
HWM’s Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Dover Corporation (DOV - Free Report) reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.
Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.
Ardagh Metal Packaging S.A. (AMBP - Free Report) came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.
Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion.
Packaging Corporation of America (PKG - Free Report) reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.
Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.