Howmet Aerospace Inc. priced a $1.2 billion public debt offering on February 17, 2026, issuing three tranches: $400 million of 3.75% notes due 2028, $300 million of 3.90% notes due 2029, and $500 million of 4.75% notes due 2036. The proceeds, combined with $600 million of borrowings under its commercial paper program and existing cash, will fund the approximately $1.8 billion purchase price for Consolidated Aerospace Manufacturing, LLC (CAM).
The debt issuance is structured under a shelf registration statement and is expected to close on March 3, 2026. By layering short‑term and long‑term maturities, Howmet balances liquidity needs with a disciplined debt profile, maintaining a net debt‑to‑EBITDA ratio of roughly one at the end of 2025. The financing mix also preserves flexibility for future capital‑raising or operational investments.
Howmet’s Q4 2025 results, released on February 12, 2026, provide context for the transaction. Revenue rose 15% year‑over‑year to $2.2 billion, and net income reached $372 million, or $0.92 per share, compared with $314 million, or $0.77 per share, in Q4 2024. Adjusted EBITDA grew 29% to $653 million, and the adjusted EBITDA margin expanded 330 basis points to 30.1%. These gains reflect strong demand across commercial aerospace, defense aerospace, and gas turbine segments, and demonstrate Howmet’s ability to generate high‑margin operating cash flow.
"The Howmet team delivered an exceptional quarter to cap a strong 2025. Revenue growth accelerated in the fourth quarter 2025 to 15% year over year, reflecting healthy growth in the commercial aerospace, defense aerospace, and gas turbines markets. Adjusted EBITDA grew 29% year over year to $653 million and Adjusted EBITDA Margin increased approximately 330 basis points to 30.1%, both records. Adjusted Earnings per Share grew 42% to a record $1.05," said John C. Plant, Executive Chairman and CEO. Plant’s remarks underscore the company’s robust financial footing and its capacity to pursue strategic acquisitions without compromising profitability.
"The acquisition of CAM is a major step in our strategy to build out our differentiated fastener portfolio. CAM's established brands, engineering prowess, and deep customer relationships are a perfect complement to our existing business. This transaction will allow us to better serve our aerospace and defense customers with a broader offering of mission‑critical fastening solutions and represents a compelling use of capital to drive value for our shareholders," Plant added. The deal is expected to generate FY 2026 revenue of $485–$495 million with an adjusted EBITDA margin above 20% before synergies, positioning the combined entity as an accretive contributor to Howmet’s earnings.
The market has responded positively to the announcement, with analysts noting the alignment of the acquisition with Howmet’s growth strategy and the company’s disciplined balance sheet. Several analysts raised their price targets following the news, reflecting confidence in the company’s ability to integrate CAM and capitalize on synergies. The transaction is viewed as a strategic expansion that strengthens Howmet’s footprint in key aerospace and defense platforms while maintaining financial flexibility.
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