Howmet Aerospace expands margins and lifts 2025 EBITDA guidance

HWMHWM

Howmet Aerospace expanded operating margins in recent quarters despite rising raw material and labor costs, driven by stronger pricing on aerospace components. The company simultaneously raised its 2025 EBITDA guidance, reflecting continued profitability momentum from advanced engineered turbine and fastening systems.

1. Margins Expand Despite Rising Input Costs

Howmet Aerospace reported a 220 basis‐point increase in adjusted operating margin to 19.5% in the first nine months of fiscal 2025, even as raw material and energy costs rose by 8% year-over-year. The company attributed its margin expansion to disciplined pricing actions, which delivered a 6% boost to revenue per unit, and to productivity improvements that generated $150 million in cost savings over the period. Management noted that efficient factory scheduling and targeted headcount reductions in non-core support functions helped offset inflationary pressures on nickel, titanium and aluminum alloys, which account for approximately 60% of its jet engine components business cost base.

2. 2025 EBITDA Guidance Rises on Strong Pricing and Volume

Building on its first-nine-month performance, Howmet Aerospace raised its full-year 2025 adjusted EBITDA guidance by $100 million to a range of $2.45 billion to $2.55 billion. The upward revision reflects stronger aftermarket demand for engine component repairs—up 12% year-over-year—and continued growth in forged wheel shipments, which are projected to rise 15% over 2024. Free cash flow is now expected between $800 million and $900 million, driven by disciplined capital expenditures of $350 million and improved working capital turns, particularly in receivables and finished-goods inventories.

3. Webcast and Fourth Quarter 2025 Results Announcement

Howmet Aerospace will host its fourth quarter and full-year 2025 results webcast on Thursday, February 12, 2026. A press release and presentation materials will be available at 7:00 AM ET in the Investors section of howmet.com, followed by a conference call at 10:00 AM ET led by CEO John Plant and CFO Patrick Winterlich. Participants may dial +1-844-481-2703 (U.S. toll-free) or +1-412-317-0659 (international), with a replay accessible through February 26 at +1-877-344-7529 using access code 3861988 or via the webcast archive on the company website.

Sources

ZP