Howmet Aerospace Inc. (HWM): Business Model Canvas [Dec-2025 Updated]

You're looking at Howmet Aerospace, and after two decades in this game, I can tell you their story in late 2025 is simple: they make the hard, high-value bits that keep the planes flying and the engines turning. We're talking about mission-critical components where quality isn't optional; it's the whole game. With Commercial Aerospace OEMs driving about $\mathbf{52\%}$ of their Q2 2025 revenue and a solid $\mathbf{1.4x}$ net debt-to-Adjusted-EBITDA from 2024, the foundation looks strong, even with capital expenditures up $\mathbf{60\%}$ in H1 2025 to meet demand. This isn't just about selling metal; it's about proprietary alloys and long-term OEM security. Dive into the nine blocks below to see exactly how Howmet Aerospace is capturing value from the aerospace rebound.

Howmet Aerospace Inc. (HWM) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Howmet Aerospace Inc. relies on to keep the production lines moving, which is critical given the current ramp-up environment. These aren't just handshake deals; they are multi-year commitments tied to major aircraft programs.

The largest customer relationships drive significant revenue flow. In 2024, both GE Aerospace and RTX Corporation were anchor customers, each representing approximately 10% of Howmet Aerospace's third-party sales.

The relationship with airframe manufacturers is central to the Original Equipment Manufacturer (OEM) business. Howmet Aerospace CEO stated in May 2025 that the company would need to boost parts production for both Boeing and Airbus during 2025. The company raised its 2025 revenue guidance midpoint to approximately $8.18 billion, up from a prior forecast range, reflecting this expected increase in build rates. For context on the production environment, Boeing delivered 206 737 MAX jets through the first half of 2025, and Howmet Aerospace plans to support a 737 MAX production rate of 33 aircraft per month going forward. Howmet Aerospace's second-quarter 2025 revenue was $2.05 billion, with commercial aerospace sales increasing by 8% year-over-year.

Material sourcing is a high-stakes partnership, especially for specialized alloys. Howmet Structure Systems facilities, such as the one in La Porte, Indiana, are equipped for high-tonnage conventional and isothermal forging presses for materials like titanium and nickel-based superalloys. The company notes that it invented over 90% of all the aluminum alloys that have flown. In the specialized Single Crystal Nickel Based Super Alloys Market, which was valued at $157.04 million in 2025, Howmet Aerospace is a key player.

Defense partnerships involve complex, long-term supply agreements, sometimes leading to high-profile disputes. A notable example involved Lockheed Martin, where a settled lawsuit concerned the supply of titanium for the F-35 program, stemming from a price dispute where Howmet sought an increase amounting to a $17 million difference. Lockheed Martin reported third-quarter 2025 sales of $18.6 billion.

Collaboration with engine joint ventures is vital for the aftermarket and new engine supply. Howmet Aerospace supplies critical hot-section turbine blades for the CFM International LEAP engine, a joint venture between GE Aerospace and Safran. CFM International committed to boosting its LEAP engine output in 2025 by 15% to 20% over 2024 levels, targeting between 1,618 and 1,688 new engines. GE Aerospace raised its full-year forecast, anticipating a more than 20% increase in LEAP engine deliveries in 2025. To support this, CFM has produced over 1,200 high-pressure turbine (HPT) durability kits for LEAP-1A engines since their certification in December 2024.

Here is a summary of the key partnership data points:

• RTX Corporation and GE Aerospace each accounted for $\approx \mathbf{10\%}$ of 2024 third-party sales.
• Howmet Aerospace's 2025 revenue guidance midpoint is $\approx \mathbf{\$8.18}$ billion.
• Boeing 737 MAX production rate support is planned at $\mathbf{33}$ aircraft per month.
• Total spares revenue was $\mathbf{17\%}$ of 2024 total revenue.
• Single Crystal Nickel Based Super Alloys Market size in 2025 was $\mathbf{\$157.04}$ million.
• CFM International targets $\mathbf{15}$ to $\mathbf{20\%}$ more LEAP engines in 2025.
• Over $\mathbf{1,200}$ LEAP-1A HPT durability kits produced since December 2024.

The company's operations rely on specific material processing capabilities:

The defense sector relationship highlights material cost pressures:

Finance: draft 13-week cash view by Friday.

Howmet Aerospace Inc. (HWM) - Canvas Business Model: Key Activities

You're looking at the core engine of Howmet Aerospace Inc. (HWM)'s value creation, which is all about making incredibly precise, high-performance parts for the most demanding environments. The key activities revolve around mastering complex metallurgy and manufacturing at scale.

Precision investment casting and forging of jet engine components

This is the heart of the Engine Products segment, where Howmet Aerospace turns raw materials into critical rotating and structural parts for jet engines and industrial gas turbines (IGT). The activity is characterized by high barriers to entry due to required certifications and material expertise, like working with nickel superalloys and titanium.

The sheer volume of this activity is clear from the latest segment results. For the third quarter of 2025, the Engine Products segment generated revenue of $1.105 billion, marking a 17% year-over-year increase. This segment's operational excellence is reflected in its strong profitability, posting an adjusted EBITDA Margin of 33.3% for Q3 2025. Commercial aerospace demand, which represents 55% of this segment's revenue, is a primary driver of this activity.

Advanced manufacturing (e.g., titanium 3D printing) and material science R&D

This activity focuses on developing and deploying next-generation production methods and materials to meet evolving customer requirements for lighter, more fuel-efficient aircraft. While the company boasts about its differentiated technologies, the reported financial investment in pure Research and Development (R&D) shows a focused, but relatively small, spend compared to overall revenue. Research and development expenses for the twelve months ending September 30, 2025, were $34 million, representing a slight 2.86% decline year-over-year. Capital expenditure (CapEx) is a better indicator of investment in capability expansion; for the first half of 2025, approximately $220 million was invested, with about 70% directed toward the engines business to support future growth.

Managing a complex, global aerospace and defense supply chain

Keeping the flow of highly engineered components moving across the globe is a massive undertaking, especially given the criticality of aerospace parts. This activity involves rigorous supplier qualification, quality control, and inventory management to meet OEM and aftermarket schedules. The focus on cost structure optimization is evident in the balance sheet improvements resulting from this management. For the third quarter of 2025, Howmet Aerospace generated $423 million in Free Cash Flow after deploying $108 million in capital expenditures. Furthermore, the Net Debt-to-Trailing-EBITDA ratio improved to 1.1 times as of Q3 2025, showing effective management of financial leverage alongside operations.

Manufacturing high-performance aerospace fastening systems

This activity centers on producing the critical fasteners that hold aircraft together, a segment that also heavily relies on commercial aerospace demand. The Fastening Systems segment delivered Q3 2025 revenue of $448 million, an increase of 14% year-over-year, with commercial aerospace making up 69% of that revenue. Productivity gains helped drive the segment's adjusted EBITDA Margin up to 30.8% in the third quarter of 2025.

Operational efficiency and cost structure optimization to maintain margins

This is the continuous activity of squeezing more profit out of every dollar of sales, which is crucial given the cyclical nature of aerospace. The success of this focus is seen in the margin expansion across the board. For Q3 2025, the consolidated Adjusted EBITDA Margin hit 29.4%, a 290 basis point expansion year-over-year. The full-year 2024 Cost of Goods Sold was $5.119 billion, and management's focus is clearly on improving the relationship between revenue and that cost base. The S&P credit rating upgrade to BBB+ in Q3 2025 is a direct external validation of this improved financial discipline.

Here is a look at the latest segment revenue and margin performance, which directly results from these key activities:

The overall consolidated results for Q3 2025 show total revenue of $2.09 billion, up 14% year-over-year, with Adjusted EBITDA reaching $614 million.

Howmet Aerospace Inc. (HWM) - Canvas Business Model: Key Resources

You're looking at the core assets that let Howmet Aerospace Inc. deliver on its promises in the aerospace and transportation sectors. These aren't just line items; they are the tangible and intellectual foundations of their competitive edge, especially as they push capacity to meet record backlogs.

The intellectual property is substantial. Howmet Aerospace Inc. leverages over $\mathbf{1,150}$ granted patents for advanced engineered solutions. As of the third quarter of 2025, the company reported having approximately $\mathbf{1,170}$ granted and pending patents that enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint.

The physical assets are seeing significant investment to keep pace. Howmet Aerospace Inc. is expanding with specialized manufacturing facilities, notably new capacity coming online in Michigan and Kentucky slated to begin operations in late 2025 and into 2026. The Michigan expansion in Whitehall (Muskegon County) alone represents up to $\mathbf{\$107.5}$ million in private investment for a new ceramic core production facility, expected to create up to $\mathbf{300}$ new jobs.

The materials science expertise is a deep moat. Howmet Aerospace Inc. possesses proprietary high-temperature, high-strength metal alloys and processes. The company excels in vacuum-melted superalloys, hot isostatic pressing (HIP), and metallurgical expertise in titanium and aluminum. A key process is the Spraycast-X™ process, which combines vacuum induction melting with high purity argon gas atomization to produce aerospace quality nickel-based superalloys like Rene 95 and MERL 76.

The human capital is both deep and growing. As of the end of 2024, Howmet Aerospace Inc. employed $\mathbf{23,930}$ people globally. To support future growth, the Engine Products segment alone grew its employee headcount by approximately $\mathbf{1,205}$ over the course of 2024. This highly skilled engineering and metallurgical workforce is critical for managing complex processes like investment casting, forging, and machining across their product lines.

The financial foundation supports these long-term investments. Howmet Aerospace Inc. maintains a strong balance sheet, evidenced by its low leverage. The net debt-to-Adjusted-EBITDA ratio stood at $\mathbf{1.4x}$ for the twelve months ended December 31, 2024. This strength is further supported by a reported annualized Debt-to-EBITDA of $\mathbf{1.39}$ as of September 2025. Here's a quick look at the balance sheet strength metrics reported around that time:

The company's vertical integration across key capabilities is also a resource. Howmet Aerospace Inc. combines metallurgical expertise with vertically integrated manufacturing capabilities, including:

• Casting and forging.
• Extruding and hot forming.
• Machining.
• Performance coatings.

Howmet Aerospace Inc. (HWM) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Howmet Aerospace Inc. over competitors, which is essentially their promise of performance, efficiency, and reliability, backed by hard numbers from their latest reports.

The fundamental value proposition centers on enabling a lower carbon footprint for customers. Howmet Aerospace Inc. achieves this by delivering products that result in lighter, more fuel-efficient aircraft and commercial trucks, alongside components that support sustainable power generation. This technological edge is protected by a significant intellectual property portfolio, boasting approximately 1,170 granted and pending patents as of mid-2025.

For the aerospace original equipment manufacturers (OEMs), the value proposition is long-term security and quality. Howmet Aerospace Inc.'s engine and airframe customers are currently operating with record backlogs, meaning a stable, multi-year demand for Howmet Aerospace Inc.'s high-performance, precision-engineered components necessary for mission-critical applications. This is evident in the Commercial Aerospace segment's performance, which delivered revenue growth of 8% year-over-year in the second quarter of 2025 and 15% in the third quarter of 2025.

The push for efficiency extends to ground transportation through their forged aluminum wheels. Switching from conventional steel wheels to Howmet Aerospace Inc.'s Alcoa® Wheels can save more than 1,400 pounds on an average truck, depending on the specific application. This lightweighting directly translates to the ability to carry more payload and potentially use less fuel. The wheels are up to 51% lighter than their steel counterparts. [cite: 3 (second search)] Still, this segment faces headwinds, as the Commercial Transportation market saw revenue decline by 4% in the second quarter of 2025 and 3% in the third quarter of 2025.

Furthermore, Howmet Aerospace Inc. is a key enabler of sustainable power generation via its industrial gas turbine (IGT) components. Demand in this area is robust, fueled by significant data center expansion. The Engine Products segment, which includes IGT components, reported revenue of $1.1 billion in both the second and third quarters of 2025. The growth in the Industrial and Other market, which includes IGT, was 17% year-over-year in Q2 2025 and 18% in Q3 2025.

Here's a breakdown of the quantitative value delivered across these key areas as of late 2025, based on the latest reported quarterly results:

The specific contributions to customer value can be summarized by looking at the segment performance that directly reflects these propositions:

• Commercial Aerospace revenue growth: 15% in Q3 2025.
• Defense Aerospace revenue growth: 24% in Q3 2025.
• Engine Products segment revenue: $1.1 billion in Q3 2025.
• Segment Adjusted EBITDA Margin for Engine Products: 33.3% in Q3 2025.
• Total Company Adjusted EBITDA Margin: 29.4% in Q3 2025.

The company's overall financial health, evidenced by a Q3 2025 Adjusted Earnings Per Share of $0.95, shows they are effectively monetizing these value propositions.

Howmet Aerospace Inc. (HWM) - Canvas Business Model: Customer Relationships

You're looking at how Howmet Aerospace Inc. manages its biggest revenue drivers-the Original Equipment Manufacturers (OEMs) and the defense sector. This isn't a casual sales environment; it's about deep, embedded relationships, especially given the massive capital expenditures Howmet Aerospace is making, which were up approximately 60% year-over-year in the first half of 2025, all backed by customer contracts.

The relationship with major airframers like Boeing and Airbus is cemented through collaborative long-term contracts for new aircraft programs. This is where the real volume is. For instance, the production surge on the Boeing 737 MAX directly translates to Howmet Aerospace's top line. Boeing delivered 206 737 MAX units in the first half of 2025, a significant jump from 135 in the same period the prior year, which benefits Howmet Aerospace's component demand. The company's conservative 2025 assumption for the 737 MAX build rate was 25/month, even as Boeing signaled a push toward 38/month in the second half of 2025, potentially reaching 42/month by year-end. This high-volume, direct engagement necessitates a dedicated, high-touch direct sales force managing these multi-year commitments.

The technical side is just as crucial. You don't just sell a part; you partner on integration. This means a constant technical support and engineering partnership for product integration, especially as Howmet Aerospace invests in capacity for parts like airfoils, supported by those long-term agreements. The overall revenue growth reflects this success: third quarter 2025 revenue hit a record $2.09 billion, with Commercial Aerospace sales up 15% year-over-year.

Here's a quick look at the volume and growth underpinning these OEM relationships in 2025:

It's not all long-term commitments, though. A significant portion of the business relies on the immediate needs of the installed fleet, which translates to transactional sales for aftermarket spares and MRO. The need for greater aftermarket services is growing as airlines extend the lifespan of older aircraft due to supply chain delays. Spares accounted for 17% of Howmet Aerospace's total revenue in 2024, and the company expects this percentage to rise toward 20% in the coming years. The Engine Products segment, which includes engine spares, saw revenue of $1.1 billion in the third quarter of 2025, marking a 17% increase year-over-year.

Finally, managing input cost volatility is a direct negotiation point with customers. Howmet Aerospace has been active in using contractual provisions to pass through rising raw material costs, particularly those related to tariffs. The company stated it intends to pass on inflated costs to customers via price hikes. For example, CEO John Plant noted that the impact of a U.S.-led trade war was mitigated to around $5 million by passing higher costs to customers. This is a constant negotiation, as the estimated gross impact from tariffs for FY2025 was $80 million, netting down to $15 million after pass-through efforts. The mechanism for this is often a Raw Material Surcharge (RMS) adder applied at the time of shipment, based on the difference between Howmet Aerospace's total blended raw material cost versus a baseline.

• Commercial Aerospace sales growth in Q2 2025 was 8% year-over-year.
• Defense Aerospace sales growth in Q2 2025 was 21% year-over-year.
• The quarterly common stock dividend was increased by 20% to $0.12 per share in Q3 2025.
• Howmet Aerospace absorbed approximately 265 net headcount in Q3 2025 to support expected revenue increases.

Finance: draft 13-week cash view by Friday.

Howmet Aerospace Inc. (HWM) - Canvas Business Model: Channels

You're looking at how Howmet Aerospace Inc. gets its engineered solutions into the hands of its customers as of late 2025. The channels are heavily weighted toward direct engagement with major aerospace and defense primes, supported by a strong aftermarket presence.

Direct sales and distribution to global Aerospace and Defense OEMs

The core of Howmet Aerospace Inc.'s channel strategy involves direct sales to Original Equipment Manufacturers (OEMs) in the aerospace and defense sectors. This is evident in the revenue mix reported through the second quarter of 2025. Commercial Aerospace accounted for 52% of total revenue in Q2 2025, showing the primary channel focus. Defense Aerospace was the next largest, representing 16% of total revenue in Q2 2025. The strength in this channel is clear from the year-over-year growth figures; Defense Aerospace market revenue increased by 21% in Q2 2025, and Commercial Aerospace revenue grew by 8% in the same period. For Q1 2025, defense aerospace revenues specifically rose 19% year-over-year.

The direct OEM channel is supported by the performance of key segments:

• Engine Products segment revenue in Q2 2025 was $1.1 billion, up 13% year-over-year.
• Fastening Systems segment revenue in Q2 2025 reached $431 million, marking a 9% increase year-over-year.
• Engine Products Q3 2025 revenue was $1.1 billion, a 17% increase year-over-year.

Direct sales to commercial transportation vehicle manufacturers

Direct sales to commercial transportation vehicle manufacturers represent a smaller, though still significant, portion of the channel mix, and this area has seen some softness. Commercial Transportation made up 17% of total revenue in Q2 2025. This channel experienced a revenue decline of 4% in Q2 2025. The Forged Wheels segment, which reflects this market, saw sales down 1% year-over-year in Q2 2025. For the third quarter of 2025, Forged Wheels revenue was $247 million, with 16% lower volumes in the commercial transportation market.

Global network of specialized manufacturing and service centers

Howmet Aerospace Inc. uses its manufacturing footprint as a direct channel for delivery. While specific service center revenue isn't isolated, the output from its segments illustrates the scale of this physical channel. The Engineered Structures segment, for instance, reported Q2 2025 revenue of $290 million, a 5% increase year-over-year, growing to $289 million in Q3 2025, up 14% year-over-year. The company is definitely investing in this physical channel, with capital expenditures up approximately 60% year-over-year in the first half of 2025.

Here's a look at the revenue distribution across the primary end-markets served through these channels for Q2 2025:

Aftermarket spares distribution for MRO activities

The aftermarket spares channel, crucial for Maintenance, Repair, and Overhaul (MRO) activities, is a rapidly growing component of the business. Total spares revenue represented approximately 17% of total Howmet Aerospace revenue in 2024. Management envisions this growing towards 20% of total revenue in the coming years, including 2025. The Engine Products segment saw growth in engine spares contributing to its Q2 2025 revenue of $1.1 billion and its Q3 2025 revenue of $1.1 billion. This growth is driven by significant needs from both legacy and current engine programs.

Technical procurement systems for large, long-term contracts

Howmet Aerospace Inc. secures its revenue stream through a strategy that favors long-term deals, which ensure a steady flow of business. The company has long-term contracts with a significant number of its customers. This structure is key to managing the industry's need for precision and reliability. The full-year 2025 revenue guidance was raised to approximately $8.130 billion, reflecting confidence in these long-term commitments. The company's strategy is to pass on inflated costs, such as those from tariffs, to customers through price hikes to cushion the impact.

Howmet Aerospace Inc. (HWM) - Canvas Business Model: Customer Segments

You're looking at the core demand drivers for Howmet Aerospace Inc. (HWM) as of late 2025, based on the Q2 2025 revenue split. The business is heavily weighted toward aerospace, which is definitely showing up in the numbers.

The company reported record second quarter 2025 revenue of $\mathbf{\$2.05}$ billion, up $\mathbf{9\%}$ year over year. This revenue base clearly shows where the demand is concentrated.

Here is the breakdown of Howmet Aerospace Inc.'s customer segments based on $\mathbf{Q2\ 2025}$ revenue contribution:

The growth rates across these markets in Q2 2025 tell a clear story about near-term strength. Commercial Aerospace grew $\mathbf{8\%}$ year over year, while Defense Aerospace saw $\mathbf{21\%}$ growth. The Industrial and Other market grew $\mathbf{17\%}$.

The Commercial Transportation segment was the exception, showing a $\mathbf{4\%}$ decline in Q2 2025 revenue. This weakness is also reflected in the Forged Wheels segment, which saw $\mathbf{11\%}$ lower volumes in that market in Q2 2025.

The Engine Products segment, which includes aftermarket sales, is a key driver for high-margin revenue. This segment's revenue was $\mathbf{\$1.1}$ billion in Q2 2025 and $\mathbf{\$1.1}$ billion in Q3 2025. The Q2 2025 Engine Products revenue growth of $\mathbf{13\%}$ year over year was specifically driven by growth in commercial aerospace, defense aerospace, IGT, and oil and gas markets, including engine spares growth.

For context on the spares business, total spares revenue represented approximately $\mathbf{17\%}$ of total Howmet Aerospace Inc. revenue in 2024, with an expectation to grow towards $\mathbf{20\%}$ in the coming years.

Looking ahead, the company raised its full-year 2025 revenue guidance to $\mathbf{\$8.130}$ billion. The third quarter 2025 results showed even stronger year-over-year growth, with total revenue at $\mathbf{\$2.09}$ billion, up $\mathbf{14\%}$.

You can see the concentration of the aerospace focus in the segment performance:

• Engine Products revenue in Q2 2025 was $\mathbf{\$1.1}$ billion.
• Fastening Systems revenue in Q2 2025 was $\mathbf{\$431}$ million.
• Engine spares growth contributed to the $\mathbf{13\%}$ increase in Engine Products revenue in Q2 2025.
• Defense aerospace drove $\mathbf{55\%}$ year-over-year growth in Engineered Structures Segment Adjusted EBITDA in Q2 2025.

Finance: draft 13-week cash view by Friday.

Howmet Aerospace Inc. (HWM) - Canvas Business Model: Cost Structure

You're looking at the major expenses Howmet Aerospace Inc. (HWM) faces to keep those high-performance aerospace components flowing. The cost structure is heavily weighted toward material inputs and significant, ongoing investment in manufacturing capability.

High cost of raw materials (titanium, nickel superalloys) and energy-intensive production represent a foundational cost. While specific material cost breakdowns aren't public line-by-line, the Cost of Goods Sold (COGS) for the twelve months ending September 30, 2025, reached $\mathbf{\$5.309}$ billion. This is up from the full year 2024 COGS of $\mathbf{\$5.119}$ billion. The company has historically noted monitoring the global trade environment, tariffs, and inflationary costs impacting raw materials, which are essential for jet engine components and airframe structures. The manufacturing processes for these advanced alloys are inherently energy-intensive, tying operational costs to energy market fluctuations.

Significant capital expenditures for growth and capacity expansion is a major cash outlay. Howmet Aerospace Inc. is actively investing to meet rising demand, particularly in the aerospace segments. The company explicitly stated that capital expenditures were 'up approximately $\mathbf{60\%}$ year over year in the first half 2025.' For context, full-year 2024 Capital Expenditures were $\mathbf{\$321}$ million. The full-year 2025 guidance, raised after Q2 2025, anticipated total capital expenditures around $\mathbf{\$390}$ million.

Here's a look at some key financial metrics that frame the cost environment:

Labor costs for specialized manufacturing and engineering headcount are substantial, given the complexity of the products. Howmet Aerospace employs a specialized workforce, with an approximate headcount of $\mathbf{23.2K}$ employees as of late 2025. The need for highly skilled roles, such as a Director of Operations with an estimated salary around $\mathbf{\$76,000}$ or a Continuous Improvement Engineer around $\mathbf{\$90,000}$, reflects the premium paid for expertise in aerospace manufacturing and quality control. The company noted in its 2024 report that an increase in headcount was a factor impacting operating costs.

Research and development (R&D) investment in advanced materials and processes is a necessary, though comparatively smaller, line item. For the twelve months ending September 30, 2025, Howmet Aerospace reported R&D expenses of $\mathbf{\$34}$ million. This investment supports the development of new products and the implementation of advanced manufacturing technologies to maintain a competitive edge.

Finally, debt servicing costs are managed actively. The company successfully reduced its gross debt in 2024, and this action, combined with other refinancing, resulted in annualized interest expense savings of approximately $\mathbf{\$37}$ million in 2024. For the third quarter of 2025, the reported interest expense on debt was $\mathbf{\$37}$ million. The net debt-to-Adjusted-EBITDA ratio improved to a record low of $\mathbf{1.3x}$ following Q2 2025 results, indicating strong leverage management relative to earnings. The company's strategy includes paying down debt, such as paying down $\mathbf{\$76}$ million of debt in Q2 2025.

Howmet Aerospace Inc. (HWM) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for Howmet Aerospace Inc. (HWM) as of late 2025, which is definitely showing a strong pivot toward aerospace, especially after the latest Q3 numbers came in.

The core of Howmet Aerospace Inc. (HWM)'s revenue generation comes from its four distinct operating segments. These streams are heavily weighted toward the aerospace sector, which is driving significant top-line growth, though the commercial transportation side still contributes.

Here's a breakdown of the key revenue components:

• Sales of Engine Products (e.g., turbine blades, vanes): Q3 2025 revenue: $1.1 billion.
• Sales of Fastening Systems and Engineered Structures (airframe components)
• Sales of Forged Wheels for the commercial transportation market
• High-margin aftermarket spares revenue, a key growth driver
• Full-year 2025 revenue is projected to be approximately $8.130 billion (baseline guidance).

The Engine Products segment, which includes those critical turbine components, is clearly the largest revenue generator. Its Q3 2025 revenue hit $1.1 billion, marking a 17% increase year over year, fueled by commercial aerospace and industrial gas turbine demand. Also, the growth in engine spares is a big deal here; management noted spares revenue was a driver for this segment's performance.

For the aftermarket spares, which typically carry better margins, the focus is clear. Management had previously signaled confidence that commercial aerospace spares revenue would grow toward 20% of total revenue in 2025, up from 17% in 2024. That's a tangible shift in the revenue mix you want to see.

Here's a quick look at the Q3 2025 segment revenue performance:

The Fastening Systems segment, which is heavily exposed to commercial aerospace at about 69% of its revenue, brought in $448 million in Q3 2025, up 14% year over year. Engineered Structures followed closely with $289 million in revenue, also seeing a 14% jump, largely supported by defense and commercial aerospace demand, which makes up about 68% of that segment's sales.

The Forged Wheels business, tied to commercial transportation, saw revenue of $247 million in the third quarter, which was roughly flat year over year. This segment's performance reflects the ongoing softness in the commercial transportation market, which saw a 3% decline overall in Q3 2025. Still, the segment maintains a strong adjusted EBITDA margin around 29.6%.

Overall, the company reported record total revenue of $2.09 billion for the third quarter of 2025, which was a 14% increase year over year. This strong quarterly result led Howmet Aerospace Inc. (HWM) to raise its full-year 2025 guidance on all metrics following the Q3 report, though the baseline projection you noted was $8.130 billion.

Finance: draft 13-week cash view by Friday.