Howmet Aerospace Reports $1.942 Billion Revenue and $344 Million Net Income in Q1 2025

Howmet Aerospace Inc. reported a revenue of $1.942 billion for the first quarter of 2025, marking a 6% increase from $1.824 billion in the same period of 2024. The company's net income rose to $344 million, or $0.84 per diluted share, compared to $243 million, or $0.59 per diluted share, in the prior year. This growth in profitability was attributed to increased demand in the commercial and defense aerospace markets, favorable product pricing, and productivity improvements, despite a decline in volumes within the commercial transportation sector.

The company's cost of goods sold (COGS) as a percentage of sales decreased to 66.4% in the first quarter of 2025 from 70.7% in the previous year, primarily due to higher production volumes and productivity gains. Howmet also recorded restructuring and other credits of $4 million in the latest quarter, compared to negligible charges in the first quarter of 2024. Interest expenses decreased by 20% to $39 million, reflecting the impact of debt redemptions and lower long-term debt levels.

Operationally, Howmet's four reportable segments—Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels—showed varied performance. Engine Products, which generated $996 million in sales, saw a 13% increase year-over-year, driven by growth in aerospace and industrial markets. Fastening Systems reported a 6% increase in sales to $412 million, while Engineered Structures experienced an 8% rise to $282 million. Conversely, the Forged Wheels segment faced a 13% decline in sales to $252 million, primarily due to lower demand in the commercial transportation market.

The company continues to navigate challenges such as tariff impacts and supply chain disruptions, which may affect future performance. However, Howmet remains optimistic about its growth trajectory, particularly in the aerospace sector, where aircraft production is expected to rise. The company anticipates that its strategic initiatives, including ongoing investments in capacity expansion and product innovation, will support its long-term objectives. As of March 31, 2025, Howmet had approximately 403.7 million shares of common stock outstanding and maintained a strong liquidity position with cash and cash equivalents totaling $536 million.