Revenue growth accelerated to 24.1% YoY in 2026Q2 with gross margin expanding to 37.3% from 30.2% a year earlier, while operating margin reached 27.9% and EPS grew 33% to $1.33.
Howmet Aerospace Inc. (HWM) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Sales/Revenue | 9.12B | 8.25B | 7.43B | 6.64B | 5.66B | 4.97B | 5.26B | 7.1B | 14.02B | 12.96B | 12.39B | 12.39B | 12.54B |
| Revenue Growth % | 18.08% | 11.06% | 11.9% | 17.25% | 13.9% | -5.46% | -25.91% | -49.38% | 8.18% | 4.59% | 0.01% | -1.2% | - |
| Cost of Goods Sold | 5.98B | 5.71B | 5.38B | 5.03B | 4.31B | 3.84B | 4.12B | 5.48B | 11.97B | 10.77B | 10.3B | 10.62B | 10.35B |
| COGS % of Revenue | - | 69.26% | 72.38% | 75.69% | 76.09% | 77.19% | 78.27% | 77.25% | 85.36% | 83.1% | 83.1% | 85.7% | 82.51% |
| Gross Profit | 3.14B | 2.54B | 2.05B | 1.61B | 1.35B | 1.13B | 1.14B | 1.61B | 2.05B | 2.19B | 2.1B | 1.77B | 2.19B |
| Gross Margin % | 34.44% | 30.74% | 27.62% | 24.31% | 23.91% | 22.81% | 21.73% | 22.75% | 14.64% | 16.9% | 16.9% | 14.3% | 17.49% |
| Gross Profit Growth % | - | 23.64% | 27.14% | 19.2% | 19.4% | -0.79% | -29.23% | -21.33% | -6.3% | 4.58% | 18.23% | -19.2% | - |
| Operating Expenses | 557M | 407M | 380M | 369M | 320M | 268M | 294M | 428M | 707M | 824M | 881M | 910M | 1.33B |
| OpEx % of Revenue | - | 4.93% | 5.11% | 5.56% | 5.65% | 5.39% | 5.59% | 6.03% | 5.04% | 6.36% | 7.11% | 7.34% | 10.6% |
| Selling, General & Admin | 455M | 370M | 362M | 333M | 288M | 251M | 277M | 400M | 604M | 715M | 749M | 741M | 770M |
| SG&A % of Revenue | - | 4.48% | 4.87% | 5.02% | 5.09% | 5.05% | 5.27% | 5.64% | 4.31% | 5.52% | 6.04% | 5.98% | 6.14% |
| Research & Development | 37M | 37M | 33M | 36M | 32M | 17M | 17M | 28M | 103M | 109M | 132M | 169M | 123M |
| R&D % of Revenue | - | 0.45% | 0.44% | 0.54% | 0.57% | 0.34% | 0.32% | 0.39% | 0.73% | 0.84% | 1.07% | 1.36% | 0.98% |
| Other Operating Expenses | 0 | 0 | -15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -47M |
| Operating Income | 2.58B | 2.13B | 1.67B | 1.25B | 1.03B | 866M | 849M | 1.19B | 1.35B | 1.37B | 1.21B | 862M | 864M |
| Operating Margin % | 28.33% | 25.81% | 22.5% | 18.75% | 18.26% | 17.42% | 16.14% | 16.72% | 9.6% | 10.55% | 9.8% | 6.96% | 6.89% |
| Operating Income Growth % | - | 27.39% | 34.3% | 20.41% | 19.4% | 2% | -28.48% | -11.81% | -1.54% | 12.6% | 40.84% | -0.23% | - |
| EBITDA | 2.89B | 2.41B | 1.95B | 1.52B | 1.3B | 1.14B | 1.13B | 1.48B | 1.92B | 1.92B | 1.75B | 1.37B | 2.24B |
| EBITDA Margin % | 31.66% | 29.24% | 26.23% | 22.85% | 22.94% | 22.85% | 21.45% | 20.88% | 13.71% | 14.8% | 14.11% | 11.06% | 17.83% |
| EBITDA Growth % | 33.18% | 23.81% | 28.48% | 16.78% | 14.35% | 0.71% | -23.89% | -22.89% | 0.21% | 9.66% | 27.66% | -38.73% | - |
| D&A (Non-Cash Add-back) | 303M | 283M | 277M | 272M | 265M | 270M | 279M | 295M | 576M | 551M | 535M | 508M | 1.37B |
| EBIT | 2.45B | 1.99B | 1.56B | 1.19B | 835M | 583M | 552M | 548M | 1.24B | 966M | 922M | 657M | 555M |
| Net Interest Income | -149M | -131M | -162M | -195M | -223M | -257M | -376M | -314M | -353M | -477M | -492M | -458M | -423M |
| Interest Income | 19M | 20M | 20M | 23M | 6M | 2M | 5M | 24M | 23M | 19M | 16M | 16M | 19M |
| Interest Expense | 168M | 151M | 182M | 218M | 229M | 259M | 381M | 338M | 376M | 496M | 508M | 474M | 442M |
| Other Income/Expense | -301M | -290M | -289M | -270M | -428M | -542M | -678M | -977M | -478M | -897M | -800M | -679M | -751M |
| Pretax Income | 2.28B | 1.84B | 1.38B | 975M | 606M | 324M | 171M | 210M | 868M | 470M | 414M | 183M | 113M |
| Pretax Margin % | 25.03% | 22.3% | 18.61% | 14.68% | 10.7% | 6.52% | 3.25% | 2.96% | 6.19% | 3.63% | 3.34% | 1.48% | 0.9% |
| Income Tax | 411M | 332M | 228M | 210M | 137M | 66M | -40M | 84M | 226M | 544M | 1.48B | 339M | 174M |
| Effective Tax Rate % | 18.01% | 18.04% | 16.49% | 21.54% | 22.61% | 20.37% | -23.39% | 40% | 26.04% | 115.74% | 356.52% | 185.25% | 153.98% |
| Net Income | 1.87B | 1.51B | 1.16B | 765M | 469M | 258M | 211M | 470M | 642M | -74M | -941M | -322M | 268M |
| Net Margin % | 20.52% | 18.27% | 15.55% | 11.52% | 8.28% | 5.19% | 4.01% | 6.62% | 4.58% | -0.57% | -7.59% | -2.6% | 2.14% |
| Net Income Growth % | 33.93% | 30.56% | 50.98% | 63.11% | 81.78% | 22.27% | -55.11% | -26.79% | 967.57% | 92.14% | -192.24% | -220.15% | - |
| Net Income (Continuing) | 1.87B | 1.51B | 1.16B | 765M | 469M | 258M | 211M | 126M | 642M | -74M | -1.06B | -156M | -61M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 344M | 0 | 0 | 121M | -165M | 329M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14M | 12M | 14M | 26M | 2.08B | 0 |
| EPS (Diluted) | 4.65 | 3.71 | 2.81 | 1.83 | 1.11 | 0.59 | 0.48 | 1.02 | 1.28 | -0.16 | -2.13 | -0.73 | 0.56 |
| EPS Growth % | 35.67% | 32.03% | 53.55% | 64.86% | 88.14% | 22.92% | -52.94% | -20.31% | 900% | 92.49% | -191.78% | -230.36% | - |
| EPS (Basic) | - | 3.73 | 2.83 | 1.85 | 1.12 | 0.60 | 0.48 | 1.08 | 1.35 | -0.15 | -2.55 | -0.73 | 0.56 |
| Diluted Shares Outstanding | 402M | 406M | 410M | 416M | 421M | 435M | 439M | 463M | 503M | 451M | 438M | 438.52M | 438.52M |
| Basic Shares Outstanding | 400M | 404M | 408M | 412.17M | 416.04M | 429.83M | 435.13M | 434.4M | 477.12M | 481.67M | 364.42M | 438.52M | 438.52M |
| Dividend Payout Ratio | - | 12% | 9.26% | 9.28% | 8.96% | 6.59% | 5.21% | 12.13% | 18.54% | - | - | - | 60.07% |
Quick answers to the most common questions about buying HWM stock.
For fiscal year 2025, Howmet Aerospace Inc. (HWM) reported total revenue of $8.25B. This represents a 34.2% decline compared to $12.54B in 2014.
Howmet Aerospace Inc. (HWM) is profitable, generating $1.51B in net income for the fiscal year ending 2025 with a net profit margin of 18.3%.
Howmet Aerospace Inc. (HWM) reported an operating income of $2.13B, resulting in an operating profit margin of 25.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Howmet Aerospace Inc. (HWM) generated $2.54B in gross profit for the year, representing a gross profit margin of 30.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Boeing production bottlenecks
Metrics are mathematically derived from official filings.
Wide-Body Recovery Fuels Acceleration
Revenue growth accelerated to 24.1% YoY in 2026Q2, up from 9.2% in 2025Q2, driven by wide-body production recovery and aftermarket demand, as reported in quarterly filings.
The sequential acceleration from 19.1% in 2026Q1 to 24.1% in 2026Q2 suggests that the wide-body recovery is gaining momentum, with Howmet's high content per shipset in 787 and A350 engines likely a key driver. This growth appears durable as it is supported by both OEM build rates and the aging fleet spares cycle, though investors should monitor Boeing's production quality issues that could disrupt delivery schedules.
Gross Margin Expansion Reflects Pricing Power
Gross margin expanded to 37.3% in 2026Q2 from 30.2% a year earlier, indicating successful cost pass-through and favorable mix shift toward high-margin aftermarket and wide-body content, per income statement data.
The 710 basis point year-over-year improvement in gross margin suggests that Howmet is not only passing through raw material costs but also benefiting from operational leverage as volumes increase. This margin expansion is consistent with the company's moat in single-crystal castings, where pricing power is supported by high switching costs and limited competition. However, the sustainability of this margin level depends on continued wide-body production stability and the absence of disruptive technology shifts like CMCs.
Operating Leverage Drives Margin Outperformance
Operating income grew 36.5% YoY in 2026Q2, outpacing revenue growth of 24.1%, with operating margin reaching 27.9%, up from 25.4% in 2025Q2, as per reported figures.
The incremental operating margin is significantly higher than the reported operating margin, indicating that fixed costs are being spread over a larger revenue base. SG&A as a percentage of revenue declined to 5.9% in 2026Q2 from 6.9% in 2025Q2, reflecting disciplined overhead control. This operating leverage appears structural, given the capital-intensive nature of the foundries, and should continue to drive margin expansion as volumes recover further.
EPS Growth Outpaces Net Income on Buybacks
Diluted EPS grew 33% YoY in 2026Q2 to $1.33, while net income grew 31.3%, indicating share repurchases are enhancing per-share metrics, based on quarterly data.
The slight outperformance of EPS relative to net income suggests that management's capital allocation strategy, including buybacks, is accretive to shareholders. Stock-based compensation of $36M in 2026Q2 is modest relative to net income, representing about 6.7% of net income, which is manageable. However, investors should note that the effective tax rate appears to have declined, as net margin improved to 21.0% from 19.8% in 2025Q2, which may warrant monitoring for sustainability.
R&D Minimal but Strategic
R&D spending remained low at $8M in 2026Q2, just 0.3% of revenue, while COGS grew 23.1% YoY, reflecting raw material and volume increases, as per income statement.
The minimal R&D investment relative to revenue suggests that Howmet's competitive advantage is more reliant on manufacturing expertise and certification barriers than on continuous innovation. This could be a risk if additive manufacturing or CMC technologies disrupt the casting market, but the low R&D intensity also supports high operating margins. COGS growth in line with revenue indicates that input costs are being passed through effectively, though any lag in pass-through during rapid inflation could temporarily compress margins.
Boeing Bottlenecks Could Stall Momentum
Despite strong results, Boeing's production quality issues may lead to inventory build-up and delayed revenue recognition, potentially pressuring near-term cash flow, as highlighted in recent context.
The 11.1% revenue growth in 2026Q2 may be partly due to shipments that cannot be billed if Boeing's final assembly line is stalled, leading to an inventory overhang. This could result in a temporary drag on free cash flow and a subsequent revenue normalization. Additionally, the lack of explicit guidance in the latest earnings event suggests management is cautious about forward visibility, which may indicate that the current growth rate is not fully sustainable. Short-sellers could argue that the market is pricing in a flawless execution of the wide-body recovery, leaving little room for error.