Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
HWM delivered a strong FY2025 with revenue growing 11.1% to $8.25B, operating income surging 25.3% to $2.05B, and net income jumping 30.6% to $1.51B, reflecting significant margin expansion and robust cash generation.
Revenue
$8.25B
+11.06% YoY
EPS (Diluted)
$3.71
+32.03% YoY
Operating Income
$2.05B
+25.29% YoY
Source: SEC XBRL
Howmet Aerospace (HWM) reported FY2025 revenue of $8.25B, up 11.1% year over year. Operating margin was 24.8%, up 2.8 points from 22.0% a year earlier. Operating cash flow was $1.88B, up 45.1% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.33 | 1.26 | Beat +5.7% |
| Mar 2026 | 1.22 | 1.12 | Beat +9.1% |
| Dec 2025This filing | 1.05 | 0.98 | Beat +7.7% |
| Sep 2025 | 0.95 | 0.92 | Beat +3.8% |
Reported EPS of $1.05 versus the $0.98 analyst consensus — a +7.7% beat for Dec 2025.
Compiled by AI from this SEC filing
HWM grew total revenue by 11.1% year-over-year to $8.25B in FY2025 (from $7.43B in FY2024), reflecting strong demand across its end markets. This top-line growth was broad-based and supported continued profitability improvements.
Source: 10-K Income Statement
Operating margin expanded approximately 280 basis points to 24.8% in FY2025 from 22.0% in FY2024, as operating income grew 25.3% to $2.05B — well outpacing revenue growth. This indicates meaningful operating leverage and cost discipline.
Source: 10-K Income Statement & Key Ratios
Operating cash flow surged 45.1% to $1.88B in FY2025, while capital expenditures (implied by investing cash flow of -$438M) resulted in robust free cash flow. This strong cash generation funded $700M in share buybacks, up 40% year-over-year.
Source: 10-K Cash Flow Statement
Total liabilities declined 2.3% to $5.83B while stockholders' equity rose 17.5% to $5.35B, and long-term debt was reduced 8.0% to $3.05B. Cash and equivalents increased 31.6% to $742M, reflecting a materially stronger financial position.
Source: 10-K Balance Sheet
HWM repurchased $700M in shares during FY2025, a 40% increase from $500M in FY2024, while EPS (diluted) grew 32.0% to $3.71. The combination of earnings growth and buybacks drove significant per-share value creation.
Source: 10-K Cash Flow Statement & Income Statement
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Despite reducing long-term debt by 8.0% to $3.05B, HWM carries a debt-to-equity ratio of approximately 1.09x, indicating meaningful financial leverage. Servicing this debt consumes cash flow and could constrain flexibility if operating conditions deteriorate. Rising interest rates could increase the cost of refinancing existing obligations.
Source: 10-K Balance Sheet & Key Ratios
HWM is a major supplier of engineered components to the aerospace and defense sectors, making its financial performance highly dependent on production rates at major OEMs and government defense spending. Any slowdown in commercial aircraft build rates or defense budget cuts could materially impact revenue. Supply chain disruptions at key customers would also flow through to HWM's results.
Source: 10-K Income Statement (inferred from business profile)
HWM's manufacturing operations rely on specialty metals and other raw materials whose prices can be volatile. Cost increases that cannot be passed through to customers via pricing would compress gross and operating margins. While FY2025 showed strong margin expansion, a reversal in input cost trends poses a risk to future profitability.
Source: 10-K Income Statement (inferred from cost structure)
HWM accelerated share buybacks to $700M in FY2025, a 40% increase year-over-year, while also investing in capital expenditures. Aggressive capital return programs reduce the financial cushion available for organic investment or acquisitions. If earnings growth slows, the sustainability of this buyback pace could come under pressure.
Source: 10-K Cash Flow Statement
As a specialized components manufacturer, HWM likely derives a significant portion of revenue from a limited number of large aerospace and industrial customers. Loss of a major customer contract or failure to renew long-term supply agreements could create material revenue gaps. Pricing pressure from large OEM customers during contract renewals could also weigh on margins.
Source: 10-K (inferred from business model)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 8.25 $B | 7.43 $B | +11.06% |
Operating Income $B | 2.05 $B | 1.63 $B | +25.29% |
Net Income $B | 1.51 $B | 1.16 $B | +30.56% |
EPS (Basic) $ | 3.73 $ | 2.83 $ | +31.80% |
EPS (Diluted) $ | 3.71 $ | 2.81 $ | +32.03% |
R&D Expense $M | 37.00 $M | 33.00 $M | +12.12% |
SG&A Expense $M | 370.00 $M | 347.00 $M | +6.63% |
Answers draw on this SEC filing and the data on this page
Howmet delivered robust second-quarter growth driven by surging aerospace demand and strategic acquisitions, with margins expanding despite rising costs.
HWM delivered exceptional Q1 FY2026 results with revenue surging 19.1% YoY to $2.31B and net income jumping 68.6% to $580M, driven by strong operating leverage and a dramatic improvement in cash position.
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