Howmet HWM Q4 2025 Earnings Call Transcript

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Thursday, Feb. 12, 2026 astatine 10 a.m. ET

• Chairman and Chief Executive Officer — John Plant

• Executive Vice President and Chief Financial Officer — Patrick Winterlich

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John Plant: Thank you, PT. Good morning, and invited to Howmet's Q4 and Full Year 2025 Earnings Call. Let's commencement with the highlights connected Slide #4. Q4 was an highly coagulated quarter. Revenue of $2.17 cardinal was up 15%. Full twelvemonth gross was up 11%, and hence, the last 4th saw an acceleration of growth. EBITDA was $653 million, up 29%. Our operating income was $580 million, an summation of 34%. Full twelvemonth EBITDA of $2.42 cardinal was an summation of 26%. Free currency travel aft grounds superior walk of $453 cardinal was $1.43 billion, which is much than $100 cardinal supra the guidance and a 93% conversion of nett income. .

Over the past 6 years, aggregate nett income conversion to escaped currency travel has been 95%. Earnings per stock were $1.05, an summation of 42% successful the 4th implicit 2024, resulting successful a 40% summation for the year. Capital deployment successful the 4th included $200 cardinal of stock buybacks, $50 cardinal of dividends, $55 cardinal for preferred stock redemption and a further $125 cardinal for indebtedness reduction. The closing currency equilibrium was $743 million, allowing for further stock buybacks successful January and February with $150 cardinal completed quarter-to-date. I'll halt astatine this constituent and fto Patrick supply commentary by extremity markets and by segment.

Patrick Winterlich: Thank you, John. Good morning, everyone. Please determination to Slide 5. Another coagulated 4th for Howmet's with extremity markets continuing to beryllium healthy. We are good positioned for the aboriginal and proceed to put for growth. Revenue was up 15% successful the 4th fourth and up 11% for the afloat year. Commercial aerospace maturation remained beardown passim 2025, with gross up 13% successful the 4th fourth and up 12% for the afloat year. Commercial aerospace maturation is driven by accelerating request for motor spares and a grounds backlog for new, much fuel-efficient craft with reduced c emissions. Commercial aerospace motor spares were up 44% for the afloat year, driven by some bequest and next-generation engines.

Defense aerospace maturation continued to beryllium robust astatine 20% successful the 4th quarter. For the afloat year, Defense aerospace was up 21%, driven by motor spares, which accrued 32% arsenic good arsenic caller F-35 craft builds. Commercial proscription gross was up 4% successful the 4th quarter. However, it was down 5% for the afloat year, including the pass-through of higher aluminum costs and tariffs. On a measurement basis, wheels was down 10% successful the 4th fourth and down 13% for the afloat year. We proceed to outperform the marketplace with Howmet's premium products. As mentioned connected the Q3 net call, we person combined the lipid and state and IGT markets into a azygous marketplace we are calling state turbines.