How Does Howmet Aerospace Company Work?

This segment produces components like airfoils, rings, disks, and forgings for aero engines and industrial gas turbines. It excels in vacuum-melted superalloys and advanced machining, contributing significantly to Howmet Aerospace products.

Holding the number one global position in aerospace fastening systems, this segment also leads in North America for commercial transportation fasteners. These high-tech, multi-material systems are found throughout aircraft and vehicles.

This area focuses on titanium aero ingots, mill products, and highly engineered, multi-material structures for aircraft. It's a key part of the aerospace manufacturing process for critical aircraft components.

This segment is a global market leader in forged aluminum heavy-duty truck wheels. It showcases the company's diverse manufacturing capabilities beyond the aerospace industry.

Howmet Aerospace achieved record revenue, profit, and cash generation in both Q4 and the full year of 2024. This momentum continued into Q1 2025 with another record revenue of $1.94 billion. A significant strategic move was Fitch Ratings upgrading the company's Long-Term Issuer Default Rating from BBB to BBB+ in March 2025, underscoring its strengthening financial health.

The company has effectively managed near-term supply chain bottlenecks and customer production rate fluctuations. In response to quality control issues affecting turbine blades for CFM LEAP engines in July 2024, which impacted industry-wide production, Howmet has focused on passing costs to customers and diversifying its supplier base. Its vertical integration provides a buffer against disruptions, and the company maintains cost discipline amidst a cyclical downturn in commercial transportation, anticipating market stabilization by 2026.

Howmet Aerospace's competitive edge is built on its strong brand, technological leadership, and economies of scale. With nearly 1,150 granted and pending patents, its differentiated technologies enable lighter, more efficient, and lower-emission aerospace components. Significant production volumes and global operations create substantial economies of scale, complemented by long-standing relationships and contracts with major customers like Boeing and Airbus.

The company continuously adapts to new trends and technological shifts through dedicated research and development. Expansion of its product portfolio is achieved through strategic acquisitions and partnerships. A core element of its business strategy is prioritizing sustainability across its operations, aligning with the evolving demands of the aerospace industry.

Howmet Aerospace commands a leading global market position in aerospace manufacturing, particularly as the number one supplier of turbine blades. Its strong relationships with major aerospace OEMs like Boeing and Airbus solidify its integral role in the supply chain for critical aerospace components.

The company faces challenges including near-term supply chain disruptions and production rate volatility from its customers, which have impacted delivery schedules and costs. The inherent cyclicality of the aerospace industry and a current downturn in commercial transportation, especially affecting its Forged Wheels segment, also present hurdles.

Howmet Aerospace is strategically focused on expanding revenue through innovation and R&D for next-generation aerospace applications. The company anticipates robust growth in commercial aerospace and defense markets, with aftermarket spares revenue expected to contribute significantly to total revenue in the coming years.

For the full year 2025, Howmet Aerospace has raised its revenue guidance to a range of $7.88 billion to $8.18 billion. Adjusted EBITDA is projected between $2.225 billion and $2.275 billion, with an expectation to generate over $1 billion in free cash flow.