Howmet Aerospace Inc. demonstrated exceptional financial strength in the third quarter of 2025, exceeding market predictions for both earnings and revenue. The company's impressive growth was primarily fueled by thriving commercial and defense aerospace sectors, prompting an optimistic revision of its annual financial projections. This remarkable quarter underscored Howmet's robust operational capabilities and its strong position within the aerospace industry.
Howmet Aerospace's stellar third-quarter performance in 2025 showcased its dominance in the aerospace components manufacturing sector. The company's adjusted earnings per share reached 95 cents, outperforming the 91-cent analyst estimate, while revenue hit $2.089 billion, comfortably surpassing the $2.042 billion forecast. This financial success was largely attributed to a 14% year-over-year revenue increase, with commercial aerospace revenue surging by 15% and defense aerospace by 24%. Even its industrial and other markets segment saw an 18% rise, although commercial transportation experienced a minor 3% dip. Operating income, both standard and adjusted, climbed to $542 million, marking a 29% increase from the previous year and achieving a 25.9% operating margin. Furthermore, adjusted EBITDA, excluding special items, grew by 26% to $614 million, pushing margins to an impressive 29.4%. The company also generated a record $531 million in cash from operations and $423 million in free cash flow, after accounting for $108 million in capital expenditures. These figures illustrate a period of significant expansion and profitability for Howmet Aerospace.
Exceptional Third-Quarter Performance and Market Outperformance
Howmet Aerospace Inc. delivered outstanding financial results for the third quarter of 2025, significantly exceeding Wall Street's expectations. The company reported adjusted earnings per share of 95 cents and revenue of $2.089 billion, driven by robust demand across its commercial and defense aerospace divisions. This strong performance allowed Howmet to raise its full-year financial outlook, signaling continued confidence in its growth trajectory and operational efficiency. The strategic repurchase of shares and an increased dividend further highlighted the company's commitment to shareholder value amidst its impressive gains.
During the third quarter of 2025, Howmet Aerospace Inc. not only met but surpassed market expectations, reporting adjusted earnings per share of 95 cents against an estimated 91 cents, and revenue of $2.089 billion, exceeding the $2.042 billion forecast. This impressive financial showing was largely propelled by a 14% year-over-year revenue growth. Commercial aerospace revenue soared by 15%, defense aerospace by 24%, and industrial markets saw an 18% increase, collectively demonstrating broad-based strength. The company's operating income reached $542 million, a 29% surge from the previous year, with operating margins improving by 300 basis points to 25.9%. Adjusted EBITDA, excluding special items, also increased by 26% to $614 million, achieving a 29.4% margin. Howmet's strong cash generation was evident, with $531 million from operations and $423 million in free cash flow. In a move to enhance shareholder returns, the company repurchased $200 million of common stock at an average price of $182.20 per share, and an additional $100 million in October. The board also approved a 20% dividend increase, affirming a strong financial outlook and commitment to investors.
Elevated Full-Year Guidance and Future Growth Prospects
Following its exceptional third-quarter results, Howmet Aerospace has significantly raised its financial guidance for the entire year 2025. The company now anticipates higher adjusted earnings per share and increased revenue, reflecting sustained demand in key aerospace segments and expanding industrial markets. This optimistic forecast extends into 2026, with projected revenue nearing $9 billion, underscoring Howmet's resilient business model and its capacity for continuous growth in the dynamic aerospace industry.
Looking ahead, Howmet Aerospace has set an optimistic tone by elevating its full-year 2025 guidance. The company now projects adjusted EPS to range between $3.66 and $3.68, an increase from the previous forecast of $3.56 to $3.64, and exceeding the $3.62 estimate. Revenue expectations have also been boosted to between $8.175 billion and $8.195 billion, up from the earlier range of $8.080 billion to $8.180 billion, and surpassing the $8.157 billion estimate. Free cash flow is expected to be robust, estimated between $1.275 billion and $1.325 billion, with an adjusted EBITDA margin of approximately 29%. For 2026, Howmet anticipates continued momentum, forecasting approximately $9 billion in revenue, representing a 10% year-over-year growth. This projected growth is underpinned by strong and ongoing demand in both commercial and defense aerospace sectors, coupled with expansion in various industrial markets. Executive Chairman and CEO John Plant highlighted the accelerated revenue growth, attributing it to healthy demand across these critical segments, reinforcing the company's strong market position and future prospects.