Revenue ($USD)

Q3 2025

no prior guidance

$2,030,000,000 ± $10,000,000 "

no prior guidance

EBITDA ($USD)

Q3 2025

no prior guidance

$580,000,000 ± $5,000,000 "

no prior guidance

EPS ($USD)

Q3 2025

no prior guidance

$0.90 ± $0.01 "

no prior guidance

Revenue ($USD Billions)

FY 2025

$8.03 ± $0.15 "

$8,130,000,000 ± $50,000,000 "

raised

EBITDA ($USD Millions)

FY 2025

$2,250 ± $25 "

$2,320,000,000 ± $20,000,000 "

raised

EPS ($USD)

FY 2025

$3.40 ± $0.04 "

$3.60 ± $0.04 "

raised

Free Cash Flow ($USD Billions)

FY 2025

$1.15 ± $0.05 "

$1,225,000,000 ± $50,000,000 "

raised

Spares & Aftermarket Growth

Earlier quarters detailed strong spares growth with Q1 2025 calls noting a 33% year‐over‐year increase and spares contributing 20% of revenue " " " " , Q4 2024 calling out 25% growth to $1.28B and rising revenue share from 11% to 17% " " " " , and Q3 2024 emphasizing an increase from 11% to 17% with expectations toward 20% " "

Q2 2025 reported accelerated spares growth across commercial, defense and IGT segments with 40% YoY growth and highlighted the F‑35 spares expansion as a key driver " " "

Acceleration and further emphasis on spares growth – The shift is increasingly pronounced with spares now overtaking OE in value contribution and benefiting from fleet expansions. " " "

Margin Management & Cost Efficiency

Q1 2025 highlighted margin improvements (fastening, structures, wheels) " " , Q4 2024 showcased sequential and full‐year margin upticks across segments with noted cost flexing " " " , and Q3 2024 reported record margins and productivity gains across engine and fastening segments " " "

In Q2 2025, margin performance continued to improve with record EBITDA margins reported in key segments along with effective cost flexing and headcount management " " "

Sustained improvement despite headcount and investment costs – Operational flexibility and cost discipline are maintained, even as investments in capacity and new hires temporarily press margins. " " "

Production Capacity Expansion & Supply Chain Challenges

Q1 2025 emphasized investments in new facilities in Japan and Europe with headcount ramp-ups " " " , Q4 2024 focused on adding new plants and infrastructure build‑outs " , and Q3 2024 discussed increased engine capacity and addressing aircraft supply constraints " "

Q2 2025 noted significant capacity expansion plans with new engine plants in Michigan and Japan, along with supply chain challenges such as destocking in aerospace and rising fastener orders " " " "

Continued expansion amid supply chain adjustments – The company remains focused on increasing capacity while managing inventory and sourcing challenges. " " " "

Tariff & Trade Uncertainty

Q1 2025 described a rapidly evolving tariff environment with mitigation measures " " , Q4 2024 expressed confidence in passing costs to customers " , while Q3 2024 had no discussion on tariffs

Q2 2025 reported modest tariff drag (below $5M in Q2) with improved sequential performance and clear timing of cost recovery " "

Moderation of tariff impact – Earlier concerns are easing as better pass‐through and mitigation strategies result in reduced tariff drag. " "

Commercial Truck Segment & Regulatory Risks

Q1 2025 reported significant revenue declines and margin pressures with regulatory uncertainties due to tariffs and economic headwinds " " " " , Q4 2024 noted a 12% revenue drop but maintained healthy margins " " , and Q3 2024 pointed to continued softness linked to upcoming environmental regulations " "

Q2 2025 indicated continued weakness with a 4% revenue decline, and softness persists in the commercial truck market, though stabilization is expected in 2026 " " " "

Persistent underperformance with cautious outlook – The segment remains weak across periods, with expectations for stabilization only in the longer term. " " "

Engine Segment Challenges (Destocking & Yield Uncertainty)

Q1 2025 discussed destocking issues in LPT parts and manageable yield uncertainty for new blade production " " , Q3 2024 noted potential destocking risks and early yield observations on the LEAP-1A blade " " , while Q4 2024 mentioned changeover costs without explicit destocking concerns "

Q2 2025 acknowledged destocking in commercial aerospace and rising headcount-related production costs, while maintaining that strong spares demand and capacity expansion help mitigate these issues " "

Ongoing challenges, partially mitigated by capacity investments – While destocking and yield issues persist, they are being addressed through increased production capacity and are expected to ease over time. " "

Financial Strength & Capital Allocation

Q1 2025 underscored strong liquidity, record free cash flow and disciplined share repurchases " " , Q4 2024 emphasized improved net debt, robust cash balances and active buybacks/dividend increases " " " " , and Q3 2024 highlighted strong free cash flow and strategic debt management " "

Q2 2025 continued to reflect a strong balance sheet with a $546 million cash balance, significant debt reductions, record free cash flow, and active share repurchase and dividend increases " "

Consistently robust financials with strategic capital returns – Across periods, Howmet maintains a strong liquidity profile and makes disciplined capital allocation decisions via buybacks and dividends. " " "

Industrial Gas Turbine (IGT) Market Growth Driven by Data Center Demand

Q1 2025 described steady growth with revenue up 12% YoY, capacity expansions in key regions and robust customer agreements " " " , Q4 2024 highlighted an “exceptional” outlook driven by data center energy demands and shifts in energy mix " , and Q3 2024 cited AI/data center and crypto demand with strong long‑term growth prospects "

Q2 2025 reported 25% YoY growth in IGT and detailed significant capacity investments (new Japan plant, Europe extension), with data center demand prominently driving the market " " " "

Robust and accelerating growth driven by data center demand – The IGT market continues to see strong expansion fueled by rising electricity demands from data centers and AI, with capacity expansions underway. " " "

Rising Labor Costs & Training Impact

Q1 2025 mentioned recruiting 500 new employees with expected training impacts on margins " " , Q3 2024 detailed significant hiring and training investments affecting short-term margins " " , and Q4 2024 discussed broader employee adjustments due to events like a Boeing strike " "

Q2 2025 reported additional headcount increases (400 net in Q2) for the engine business and associated training-related scrap and margin drag, though with an expectation of smoothing out by 2026–2027 " " " "

Near-term margin pressure from workforce expansion – Rising labor costs and training investments continue to impact margins now, though they are viewed as critical for long-term capacity and potential improvements mid-term. " " " "

Shift from Original Equipment (OE) to Spares Focus

Q1 2025 stressed a clear upward shift with spares revenue growing at over 33% YoY and spares moving from 11% to 20% of revenue " " " , Q4 2024 noted spares now representing 17% of revenue with delayed peak for CFM56 spares " " " " , and Q3 2024 projected aftermarket exposure rising above 20% " "

Q2 2025 reiterated the trend with spares driving 40% YoY growth, the F‑35 program accelerating spares demand, and spares now accounting for 20% of total revenue " " "

Definitive shift from OE toward a spares-dominated mix – The company is strategically transitioning its revenue mix from traditional OE to higher-margin spares, a trend that is accelerating in the current period. " " "

Reduced Emphasis on M&A Activities

Q3 2024 briefly mentioned that while small, technology-enhancing acquisitions were considered, larger deals were weighed against stock buybacks and had no immediate plans " ; Q1 and Q4 2024 were silent on the topic

Q2 2025 did not address M&A activities, consistent with earlier indications of cautious or minimal near-term M&A activity

Limited focus on M&A continues – Recent commentary indicates disciplined and opportunistic rather than proactive M&A, with no significant activity anticipated in the near term. "