Howmet Aerospace posts record Q2 results, raises 2025 outlook

Howmet Aerospace (NYSE:HWM) on Thursday reported record-breaking performance, surpassing Wall Street expectations on both earnings and revenue and prompting management to lift its full-year 2025 outlook across all key metrics.

The aerospace and transportation components maker reported second-quarter revenue of $2.05 billion, up 9% year-over-year and ahead of analysts’ forecast of $2.01 billion.

Adjusted earnings came in at $0.91 per share, topping the consensus estimate of $0.87 and rising 36% from the prior-year period. Net income climbed to $407 million ($1.00 per share) from $266 million ($0.65 per share) a year earlier.

Chief Executive John Plant attributed the strong quarter to sustained demand in commercial and defense aerospace, a robust industrial gas turbine market fueled by data center expansion, and disciplined execution across business units.

“Howmet (NYSE:HWM) continues to invest in growth backed by customer contracts, with capital expenditures up approximately 60% year over year in the first half 2025,” Plant said. “The commercial aerospace market should continue to grow, driven by healthy passenger traffic, extraordinarily high OEM backlogs and the desire for new, fuel-efficient aircraft.”

The company reported adjusted earnings before interest, taxes, depreciation and amortization of $589 million, up 22% year-over-year, with margins expanding by 300 basis points to 28.7%. Free cash flow hit a second-quarter record of $344 million, marking the ninth consecutive quarter of positive generation.

Howmet (HWM) also stepped up shareholder returns, repurchasing $175 million in stock during the quarter and an additional $100 million in July, bringing year-to-date buybacks to $400 million. The board approved a 20% increase in the quarterly dividend to $0.12 per share, payable in August. Meanwhile, the company paid down $76 million in term debt, trimming annual interest costs by about $4 million.

Looking ahead, Howmet (HWM) raised its full-year 2025 guidance, now forecasting revenue between $8.08 billion and $8.18 billion, adjusted EPS of $3.56 to $3.64 (up from prior forecasts), and free cash flow of up to $1.28 billion.

Shares of Howmet (HWM) were little changed in early trading following the announcement but have rallied nearly 76% year-to-date, reflecting strong investor confidence in its aerospace growth trajectory and capital return strategy.