Howmet Aerospace Inc. (NYSE:HWM) stock is trading higher on Thursday after the company reported first-quarter 2025 results.
The company reported revenue growth of 6.5% year over year to $1.94 billion, which is in line with the consensus estimate. The increase was driven by a 9% surge in commercial aerospace sales.
Adjusted EPS stood at 86 cents (+51% YoY), beating the consensus of 78 cents.
Revenue by Segments: Engine Products $996 million (+13% YoY); Fastening Systems $412 million (+6% YoY); Engineered Structures $282 million (+8% YoY); and Forged Wheels $252 million (-13% YoY).
Also Read: General Dynamics Delivers Strong Performance In Q1, Aerospace Segments Shows Major Profit Growth
Howmet Aerospace repurchased $125 million in stock at an average price of $124.24 per share in Q1 and $100 million in April, retiring about 1.8 million shares overall, with $1.972 billion still authorized for buybacks.
Adjusted EBITDA excluding special items was $560 million (+28.2% YoY), and the margin was 28.8%, up from 23.9% YoY. Operating income increased by 33.9% YoY to $494 million, and the margin expanded by 520 bps to 25.4%.
Operating cash flow for the quarter totaled $253 million, up from $177 million a year ago. Free cash flow remained strong at $134 million, up from $95 million a year ago. At the end of the quarter, the company’s cash balance was $536 million.
Howmet Aerospace sees continued growth in commercial aerospace, driven by rising passenger traffic, especially in Europe and Asia Pacific, despite some North American softness.
“We continue to expect healthy growth in the defense aerospace market as well as industrial and other, with demand for industrial gas turbine fueled by significant data center expansion,” commented Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant.
“While the tariff situation remains fluid, we expect to pass on tariff-related costs to our customers. Taking these factors into account including the impact of tariffs, for the full year 2025 guidance, the revenue range has been widened with increases to Adjusted EBITDA, Adjusted EPS, and Free Cash Flow. The balance sheet continues to strengthen, and liquidity remains healthy.”
Q2 Outlook: Howmet Aerospace expects revenue of $1.98 billion – $2.00 billion, versus the consensus of $2.00 billion, and adjusted EPS of $0.85 – $0.87, versus the consensus of $0.81.
The company expects an Adjusted EBITDA margin of 28%—28.3%, with Adjusted EBITDA of $555 million—$565 million.
2025 Outlook updated: Howmet Aerospace now expects revenue of $7.88 billion—$8.18 billion (prior $7.93 billion—$8.13 billion) versus the consensus of $8.07 billion and adjusted EPS of $3.36-$3.44 (prior 3.13 – $3.21) versus the consensus of $3.27.
The company expects an Adjusted EBITDA margin of ~28.2% and Adjusted EBITDA of $2.225 billion—$2.275 billion in 2025.
Price Action: HWM shares are trading higher by 7.53% at $149.02 at the last check Thursday.
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