Howmet Aerospace (HWM) Q3 2025: Strong Growth Fueled by Aerospace Demand

Howmet Aerospace (HWM), a key manufacturer of advanced engineered products for the aerospace and transportation industries, recently released its financial results for the third quarter of 2025. For anyone interested in the health of the aviation and commercial trucking markets, this latest 10-Q filing offers a detailed look under the hood. The report paints a picture of a company capitalizing on strong demand, particularly in its aerospace segments, leading to robust growth in both revenue and profit.

Let's break down the key takeaways from their Q3 performance.

A Strong Quarter Fueled by Aerospace

Howmet reported impressive top-line growth, with quarterly sales climbing 14% to $2.09 billion compared to $1.84 billion in the same period last year. This growth translated directly to the bottom line, as net income rose to $385 million, or $0.95 per diluted share, up from $332 million, or $0.81 per share, in Q3 2024.

To better understand how Howmet generated its profits this quarter, the following flow diagram visualizes the company's income statement, tracing revenue through various costs and expenses down to the final net income.

The driving force behind these strong numbers is the continued recovery and expansion in the aerospace market. Howmet's operations are divided into four main segments, and the three focused on aerospace—Engine Products, Fastening Systems, and Engineered Structures—all posted significant gains.

• Engine Products: As the company's largest division, which supplies critical components for jet engines, it saw sales jump 17% to $1.1 billion. More importantly, its profitability, measured by Segment Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), grew to $368 million with a strong margin of 33.3%.
• Fastening Systems & Engineered Structures: These segments, providing essential fasteners and structural parts for airframes, also delivered strong results. Fastening Systems' revenue grew 14% to $448 million, while Engineered Structures was up 14% to $289 million. Both segments saw remarkable improvements in their profit margins, expanding to 30.8% and 20.1%, respectively. This suggests the company is effectively managing costs while benefiting from higher production volumes.

In contrast, the Forged Wheels segment, which serves the commercial transportation market, saw relatively flat sales at $247 million. However, the division still improved its profitability, indicating successful efficiency initiatives even in a less dynamic market.

Shareholder Returns and a Healthier Balance Sheet

Howmet's management has been actively returning value to its shareholders. The company repurchased $200 million of its common stock during the third quarter, bringing the total for the first nine months of 2025 to $500 million. This is a substantial increase from the $310 million repurchased over the same period in 2024 and signals strong confidence from leadership in the company's financial outlook.

On the balance sheet, the company has also been diligently managing its debt. Total long-term debt decreased to $3.19 billion from $3.31 billion at the end of 2024. Notably, Howmet fully paid off its $140 million USD Term Loan Facility during the period, strengthening its financial position.

Looking Ahead

Howmet Aerospace's third-quarter performance highlights its strong position as a critical supplier to a thriving aerospace industry. The significant growth in its core segments underscores the sustained demand for new aircraft and engine technologies. While the commercial transportation market remains steady but not spectacular, the company's ability to enhance profitability in that segment speaks to its operational discipline.

Overall, the Q3 2025 report shows a company firing on nearly all cylinders, converting market tailwinds into impressive financial results while rewarding shareholders and improving its balance sheet.