Howmet Aerospace Inc

Strong Q1 Results: Howmet Aerospace reported a record revenue of $1.99 billion in Q1 2025, up 6% year-over-year. EBITDA increased by 28% to $570 million, with an EBITDA margin of 28.8%, an improvement of 480 basis points compared to the previous year. Earnings per share surged 51% year-over-year to $0.86, exceeding guidance expectations.

Mixed Market Performance: While Commercial Aerospace and Defense Aerospace segments displayed robust growth of 9% and 19% YoY respectively, the Commercial Transportation segment faced challenges, seeing a revenue decline of 14%. However, the company expects demand for spares in these markets to remain strong, with spare revenue representing 20% of total revenue in Q1, significantly up from 11% in 2019.

Increased Capital Deployment: The company returned approximately $167 million to shareholders in Q1 through a 25% dividend increase and $125 million in share repurchases, continuing this trend into April with an additional $100 million repurchase. This reflects confidence in ongoing cash generation, with free cash flow recorded at $134 million.