Howmet Aerospace Soars 5.35% on Record Q1 Revenue

Howmet Aerospace's stock price surged by 5.35% in pre-market trading on May 1, 2025, driven by a series of positive developments and strong financial performance.

Howmet Aerospace reported record first-quarter 2025 revenue of $1.94 billion, marking a 6% year-over-year increase. The company achieved notable milestones, including record revenue, Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Earnings Per Share, surpassing all initial guidance targets. The Fastening Systems and Engineered Structures segments contributed significantly to these improvements, leading to enhanced margins. Additionally, the company reported robust free cash flow of $134 million, up from $95 million in the same quarter of the previous year, marking the eighth consecutive period of positive free cash flow.

Howmet Aerospace's strong performance was further highlighted by its Q4 2024 results, which showed a 9% increase in revenue and a 40% year-over-year increase in earnings per share. The company's operating margin for Q4 was 23%, and it generated a record $977 million in free cash flow for the year, representing an 88% conversion of net income. Howmet Aerospace also repurchased $500 million of common stock and reduced debt by $365 million in 2024, demonstrating its commitment to shareholder value and financial discipline.

Despite these positive developments, Howmet Aerospace faces some challenges. Commercial transportation revenues were down 12% in the fourth quarter and 7% for the full year, indicating potential headwinds in this segment. The company also anticipates a back-end loaded profit in 2025, with potential uncertainties in narrow-body aircraft builds and a cautious outlook for the commercial truck market. Additionally, Howmet Aerospace plans to add approximately 1,000 net new employees in 2025, which could impact operating leverage and margins.