Howmet Aerospace Posts Record 2025 Results, Announces $1.8B Acquisition
Event summary
- Howmet Aerospace reported record full-year 2025 revenue of $8.3B, up 11% YoY, driven by commercial aerospace (12%) and defense aerospace (21%) growth.
- Adjusted EBITDA margin excluding special items rose 350 basis points to 29.3%, with adjusted EPS up 40% YoY to $3.77.
- The company announced a $1.8B all-cash acquisition of Consolidated Aerospace Manufacturing (CAM) from Stanley Black & Decker, expected to close in H1 2026.
- Howmet repurchased $700M of common stock in 2025 and reduced debt by $265M, saving $22M in annualized interest expense.
- 2026 guidance projects 10% revenue growth, with adjusted EBITDA margins expected to hold at 30.1%-30.5%.
The big picture
Howmet Aerospace's strong 2025 performance reflects broader aerospace industry tailwinds, including rising passenger demand and defense spending. The CAM acquisition positions the company to capitalize on growing demand for precision fasteners in aerospace and defense applications. With $1.35B in remaining share repurchase authorization, Howmet's capital allocation strategy will be closely watched as it balances growth investments with shareholder returns.
What we're watching
- Acquisition Integration
- How the $1.8B CAM acquisition will strengthen Howmet's fastener portfolio and whether the deal will close as expected in H1 2026.
- Market Diversification
- Whether Howmet can sustain growth in commercial aerospace and defense while stabilizing its commercial transportation segment.
- Profitability Trends
- The pace at which Howmet can maintain its improved EBITDA margins amid rising input costs and competitive pressures.
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