Howmet Q4 Sales Jump 14.6% to $2.17B, Q1 Profit Forecast Tops Estimates
Howmet reported Q4 CY2025 revenue of $2.17 billion, up 14.6% year-on-year, and adjusted EPS of $1.05, beating consensus by 2.3% and 8.7% respectively. It guided Q1 CY2026 revenue to $2.24 billion at the midpoint (3.5% above consensus) and forecasts first-quarter profit above estimates on robust aerospace demand.
1. Strong Q4 Results
Howmet delivered Q4 CY2025 revenue of $2.17 billion, a 14.6% increase year-on-year that topped analysts’ $2.12 billion estimate by 2.3%. Adjusted EPS reached $1.05, an 8.7% beat over the $0.97 consensus, while adjusted EBITDA of $650 million (30% margin) exceeded forecasts by 4.3% and operating margin held at 22.6%.
2. Upbeat Q1 2026 Guidance
The company set Q1 CY2026 revenue guidance at a $2.24 billion midpoint, 3.5% above consensus, and signaled first-quarter profit above expectations, citing strong commercial and defense aerospace demand. Full-year 2026 adjusted EPS and EBITDA guidance of $4.45 and $2.76 billion at midpoints were maintained in line with analyst forecasts.
3. Operational Drivers and Cash Flow
Engine products and fastening systems grew roughly 14.8% and 13.9% year-on-year, reflecting strength in aircraft engines and connector markets. Full-year free cash flow reached $1.43 billion with a 93% conversion of net income after $453 million in capital expenditures, while a 7.8% reduction in share count supported long-term EPS growth.