Fundamentals Hub
▼ FY 2025 Summary Analysis
Annual report ending Dec 31, 2025Overview and Growth
In fiscal 2025, Howmet Aerospace Inc. recorded $8.25B of revenue, net income of $1.51B, and an operating cash inflow of $1.88B. Revenue of $8.25B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $7.43B in fiscal 2024, revenue recorded a 11.1% year-over-year increase. The company reported diluted EPS of $3.71, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 32.0% increase from fiscal 2024 diluted EPS of $2.81. The revenue-to-assets relationship was 0.74x, showing the sales generated relative to the resources carried on the balance sheet.Profitability
After reported cost of revenue, the company retained $2.82B as gross profit before recognizing operating expenses and other items. Gross profit represented 34.2% of revenue, showing how much of the top line remained after direct costs. Operating income was $2.05B, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 24.8% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $1.51B for the fiscal year. Net margin was 18.3%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $1.84B of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 22.3%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $332.00M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 18.0%, without assuming a statutory-rate comparison.Liquidity and Capital Structure
Total assets were $11.18B, supported by $5.83B of liabilities and $5.35B of shareholder equity. At period end, current assets of $3.78B compared with current liabilities of $1.77B, defining the company’s short-term resource position. The current ratio was 2.13x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $742.00M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 41.9% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $3.05B, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.57x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 27.3%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 52.1%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 6.6%, a balance-sheet composition measure rather than a liquidity forecast.Cash Flow and Earnings Quality
Cash flow from operations was $1.88B, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 1.25x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $453.00M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 24.0%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $1.43B, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 17.3% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 12.8%, showing the cash productivity of the company’s assets.
Based on the annual report for the fiscal year ending Dec 31, 2025.
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