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August 1, 2025 • 4 min read
Howmet Aerospace Inc. (HWM), a key player in engineering advanced solutions for the aerospace and commercial transportation industries, just released its second-quarter financial results in its latest 10-Q filing. Today, we're diving into the numbers to see how the company is performing and what its results tell us about its business and the markets it serves.
Howmet reported a stellar second quarter for 2025, with impressive growth in both revenue and profitability. The company's sales reached $2.05 billion, a solid 9% increase from the $1.88 billion reported in the same quarter last year.
Even more impressive was the bottom-line performance. Net income soared by over 50% to $407 million, or $1.00 per diluted share, up from $266 million, or $0.65 per diluted share, in Q2 2024. This demonstrates not just growth, but increasingly profitable growth.
To visualize how the company's revenue translated into profit, here's a look at the flow of income and expenses for the first six months of 2025.
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This strong performance wasn't limited to a single quarter. For the first six months of 2025, Howmet's sales grew to nearly $4 billion, driving net income to $751 million, a substantial increase from the $509 million earned in the first half of 2024.
Digging into the segment results reveals where this strength is coming from. Howmet's operations are divided into four main segments, and three of them, all tied to the aerospace industry, showed remarkable performance.
Engine Products: As the largest segment, it continues to be the primary growth engine. Sales jumped 13% to $1.06 billion in Q2. More importantly, its Segment Adjusted EBITDA—a measure of a segment's operating profitability—rose to $349 million, with margins expanding from 31.3% to a very healthy 33.0%. This segment provides critical components for aircraft engines.
Fastening Systems & Engineered Structures: These segments, which supply everything from high-tech fasteners to structural components for airframes, also posted strong results. Engineered Structures was a particular standout, with its EBITDA margin rocketing from 14.5% to 21.4% year-over-year, a clear sign of significant operational improvement and pricing power.
Forged Wheels: This segment, which serves the commercial transportation market by producing forged aluminum wheels for heavy-duty trucks, was the exception. Its sales were essentially flat at $276 million. This performance reflects a softer demand environment in the commercial truck market, a cyclical industry that appears to be in a downturn.
Howmet's management is translating this strong operational cash flow into direct returns for its shareholders. The company has been active on two fronts:
Share Repurchases: Howmet bought back $300 million of its own stock in the first half of 2025, a significant increase from the $210 million repurchased in the same period of 2024. These buybacks reduce the number of shares outstanding, boosting earnings per share (EPS).
Increased Dividends: Reflecting its confidence in the business, Howmet doubled its quarterly common stock dividend to $0.10 per share. Total dividends paid in the first six months of 2025 were $83 million, nearly twice the amount from the prior year.
Howmet Aerospace's latest report paints a picture of a company executing at a high level. The robust demand in both commercial and defense aerospace markets is providing a strong tailwind, and the company is expertly converting this demand into impressive profit margins and shareholder value. While the softness in the commercial trucking market is a headwind for the Forged Wheels segment, the powerful performance of its aerospace divisions is more than compensating. Howmet's challenge will be to maintain this operational excellence as it navigates the differing cycles of its key end markets.
Last updated: August 1, 2025