Howmet Aerospace (NYSE:HWM) posted third-quarter results that topped analyst expectations, fueled by robust demand from commercial and defense aerospace markets. Despite the strong performance and higher guidance, shares slipped 1.5% in Thursday’s session.
The company reported adjusted earnings of $0.95 per share on revenue of $2.09 billion, surpassing Wall Street estimates of $0.91 per share and $2.04 billion in revenue. Sales were up 14% year over year, with commercial aerospace revenue climbing 15% and defense aerospace sales jumping 24%.
“The Howmet team drove a very strong third quarter, with results exceeding the high end of guidance on all metrics,” said John Plant, Executive Chairman and CEO. “Notably, revenue growth accelerated to 14% year over year, versus 8% growth in the first half.”
Adjusted EBITDA, excluding special items, increased 26% year over year to $614 million, while margins expanded 290 basis points to 29.4%. The company also generated $423 million in free cash flow for the quarter.
Howmet raised its full-year 2025 outlook, now projecting earnings per share of $3.66–$3.68 (above its previous guidance and exceeding the $3.63 consensus) and revenue of $8.18–$8.2 billion (versus the $8.15 billion consensus). The company also offered its first look at 2026 guidance, targeting approximately $9 billion in revenue, representing around 10% growth.
During the quarter, Howmet returned cash to shareholders through $200 million in stock buybacks, repurchasing shares at an average price of $182.20, and increased its quarterly dividend by 20% to $0.12 per share. Additionally, the company fully repaid its remaining $63 million USD Term Loan, yielding about $4 million in annual interest savings.
“The outlook across most of our major end markets remains solid,” Plant added. “Air traffic continues to grow and the backlog of commercial aircraft extends through the decade, providing for both solid commercial aerospace original equipment demand and growing demand for engine spares.”
The results underscore Howmet’s strong execution and exposure to long-term aviation growth trends, positioning the company for sustained profitability and cash flow momentum heading into 2026.