HWMNYSERolling Drawing & Extruding of Nonferrous MetalsUS GAAP · USD

Howmet Aerospace Inc.

Howmet Aerospace makes engineered metal components and fastening systems used in jet engines, airframes, gas turbines, and commercial vehicle wheels. The company’s core business is supplying high-performance parts that help aircraft and trucks be lighter, more efficient, and able to operate under extreme conditions.

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Revenue8,252m USD
+11.1 %y/y
Operating profit (EBIT)2,046m USD
+25.3 %y/y
EBIT margin24.8%
+2.8 ppy/y
Net income1,508m USD
+30.6 %y/y
Free cash flow1,431m USD
+46.5 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

02,0004,0006,0008,00010,000m USD2020: 5,259 m USD2020: EBIT 626 m USD20202021: 4,972 m USD2021: EBIT 748 m USD20212022: 5,663 m USD2022: EBIT 919 m USD20222023: 6,640 m USD2023: EBIT 1,203 m USD20232024: 7,430 m USD2024: EBIT 1,633 m USD20242025: 8,252 m USD2025: EBIT 2,046 m USD20258,2522,046
RevenueOperating profit (EBIT)

Business

Share of revenue
Engine Products35 %

Jet engine castings, rings, disks, and other hot-section components for commercial, defense, and industrial turbines.

Fastening Systems25 %

Aerospace and industrial fasteners used in airframes, engines, and transportation applications.

Engineered Structures20 %

Machined and forged aircraft structural parts and other lightweight metal structures.

Forged Wheels20 %

Forged aluminum commercial vehicle wheels sold to truck and transportation customers.

Products

Reported · share of revenue
52.4%17.1%15.1%11.4%FY2025100 %
  • Aerospace Commercial52.4 %
  • Aerospace Defense17.1 %
  • Commercial Transportation15.1 %
  • Gas Turbines11.4 %
  • Other4.0 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Howmet sells primarily to aerospace OEMs, engine makers, defense contractors, and tiered suppliers that need mission-critical parts with tight tolerances and long qualification cycles. It also serves commercial transportation customers that buy forged wheels and related components for durability and weight reduction. Long-term contracts and customer qualification requirements make relationships sticky, but production rates at major customers such as Boeing can materially affect demand.

Commercial aerospace

Buys engine components, fasteners, and structural parts for narrow-body and wide-body aircraft; demand depends on build rates and spares.

Defense aerospace

Buys mission-critical engine and structural components for military aircraft and programs with long qualification cycles.

Gas turbines

Buys investment castings and rings for industrial and aero-derivative turbines, including future growth volumes.

Commercial transportation

Buys forged aluminum wheels and related products for trucks and other ground transportation applications.

Industrial and distribution channels

Buys fastening and specialty metal products through direct sales or distributors for non-aerospace uses.

Strategy

Howmet is focused on growing with commercial aerospace, defense aerospace, and gas turbines while expanding capacity to support engine spares and share gains. Management is also emphasizing operational performance, pricing discipline, and capital efficiency to convert demand growth into higher cash flow and earnings. Recent acquisitions and planned capacity investments suggest a strategy of deepening its position in qualified, high-barrier-to-entry aerospace niches.

Capacity expansion in aerospace and gas turbinesMedium term

Demand growth is constrained by qualified manufacturing capacity, so added capacity supports share gains and spares growth.

Operational performance and margin enhancementShort term

Higher throughput, better cost control, and pricing discipline improve conversion of revenue growth into cash flow.

Selective M&A in fastenersMedium term

Acquisitions can add product capability and customer coverage in a fragmented, qualification-driven market.

Geography

2025

Howmet operates in 19 countries, with sales concentrated in North America and Europe. In 2025, North America represented 72% of sales and Europe 22% based on point of shipment, while the company also has operating activity in Japan, China, and other regions. This footprint supports proximity to aerospace and transportation customers, but it also exposes the company to tariffs, currency swings, and regional supply-chain disruptions.

United States61 %
France8.6 %
Japan7.1 %
Germany6.1 %
United Kingdom5.2 %
Italy3.7 %
Canada2.6 %
Mexico2.3 %
Poland2.1 %
China1.8 %

Share of the revenue the company reports by geography.

Risks

Howmet’s end markets are cyclical and heavily tied to aerospace build rates, especially Boeing and other large OEMs, so customer disruptions can quickly affect volumes. The company also faces intense competition, product liability exposure, cybersecurity risk, and global operating risk from tariffs, currency moves, and regulatory changes. Because many products are highly engineered and customer-qualified, any quality issue, contract loss, or re-pricing pressure can have an outsized effect on profitability.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer concentration and OEM production volatility1Intense competition in engineered metals and fasteners2Cybersecurity and data disruption3Product liability and quality claims4Foreign exchange, tariffs, and geopolitical exposure5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer concentration and OEM production volatilityImpact: HighLikelihood: High

    Large aerospace customers can delay launches, cut rates, or renegotiate terms, reducing Howmet volumes and pricing power.

    Exposure: Boeing and other major aerospace customers

  2. Intense competition in engineered metals and fastenersImpact: HighLikelihood: Medium

    Competitors can offer similar manufacturing processes or alternative technologies, pressuring margins and share.

    ExposureEngine productsFastenersForgingsCastings
  3. Cybersecurity and data disruptionImpact: HighLikelihood: Medium

    A successful attack could interrupt manufacturing, compromise data, and create remediation and legal costs.

    Exposure: Global operations and connected manufacturing systems

  4. Product liability and quality claimsImpact: HighLikelihood: Medium

    Failure of a critical aerospace or transportation part can lead to recalls, claims, and customer loss.

    Exposure: Mission-critical components and fasteners

  5. Foreign exchange, tariffs, and geopolitical exposureImpact: MediumLikelihood: High

    A global footprint creates exposure to currency volatility, trade policy changes, and regional disruptions.

    ExposureNorth AmericaEuropeJapanChina

Accounting

Judgemental items
Goodwill and long-lived asset impairment

Valuation depends on future aerospace demand, margins, and discount rates; adverse changes could trigger charges.

Impact: Could affect earnings and asset values if market assumptions weaken

Deferred revenue and customer advances

Payments received before delivery are recorded as liabilities until products ship, affecting revenue timing.

Impact: Important in gas turbines and commercial aerospace

Pension and postretirement obligations

Actuarial assumptions for discount rates and returns can materially change liabilities and expense.

Impact: Affects operating expense and balance sheet obligations

Derivatives and debt hedging

Interest-rate and cross-currency swaps influence reported interest expense and fair value marks.

Impact: Can create volatility in non-operating results

Acquisition accounting

Recent and planned acquisitions may add goodwill, intangibles, and integration-related estimates.

Impact: Can affect future amortization, impairment risk, and leverage

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Last updated: 24/09/2026