v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
Howmet is a global leader in lightweight metals engineering and manufacturing. Howmet’s innovative, multi-material products, which include nickel, titanium, aluminum, and cobalt, are used worldwide in the aerospace (commercial and defense), commercial transportation, and industrial and other markets. Segment performance under Howmet’s management reporting system is evaluated based on Segment Adjusted EBITDA. The Company’s Chief Executive Officer, who has been determined to be our Chief Operating Decision Maker (“CODM”), believes that Segment Adjusted EBITDA provides information with respect to the Company’s operating performance and the Company’s ability to meet its financial obligations. Howmet’s definition of Segment Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation and amortization. Special items, including Restructuring and other charges (credits), are excluded from net margin and Segment Adjusted EBITDA. The Company’s CODM considers forecast-to-actual variances for Segment Adjusted EBITDA when allocating resources across the Company’s reportable segments. Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Differences between the total segment and consolidated totals are in Corporate.
Howmet’s operations consist of four worldwide reportable segments as follows:
Engine Products
Engine Products produces investment castings, including airfoils, and seamless rolled rings primarily for aircraft engines and industrial gas turbine applications. Engine Products produces rotating parts, as well as structural parts.
Fastening Systems
Fastening Systems produces aerospace fastening systems, as well as commercial transportation, industrial and other fasteners. The business’s high-tech, multi-material fastening systems are found nose to tail on aircraft and aero engines. Fastening Systems’ products are also critical components of commercial transportation vehicles, and construction, industrial, and renewable energy equipment.
Engineered Structures
Engineered Structures produces titanium ingots and mill products for aerospace and defense applications and is vertically integrated to produce titanium forgings, titanium extrusions, forming and machining services for airframe, wing, aero-engine, and landing gear components. Engineered Structures also produces aluminum forgings, nickel forgings, and aluminum machined components and assemblies for aerospace and defense applications.
Forged Wheels
Forged Wheels provides forged aluminum wheels and related products for heavy-duty trucks and the commercial transportation market.
The operating results of the Company’s reportable segments were as follows:
Engine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
Second quarter ended June 30, 2025
Sales:
Third-party sales$1,056 $431 $290 $276 $2,053 
Inter-segment sales2 — 3 — 5 
Total sales$1,058 $431 $293 $276 $2,058 
Expenses:
Segment Adjusted cost of goods sold(1)
$682 $276 $222 $189 $1,369 
   Other segment items(2)
27 29 9 11 76 
Profit and loss:
Segment Adjusted EBITDA$349 $126 $62 $76 $613 
Provision for depreciation and amortization35 12 10 10 67 
Restructuring and other charges (credits)— 1 — (1)— 
Other:
Capital expenditures$75 $9 $6 $8 $98 
Second quarter ended June 30, 2024
Sales:
Third-party sales$933 $394 $275 $278 $1,880 
Inter-segment sales1 — 3 — 4 
Total sales$934 $394 $278 $278 $1,884 
Expenses:
Segment Adjusted cost of goods sold(1)
$618 $265 $228 $192 $1,303 
   Other segment items(2)
24 28 10 11 73 
Profit and loss:
Segment Adjusted EBITDA$292 $101 $40 $75 $508 
Provision for depreciation and amortization33 13 11 10 67 
Restructuring and other (credits) charges(1)2 18 1 20 
Other:
Capital expenditures$33 $5 $5 $9 $52 
Engine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
Six months ended June 30, 2025
Sales:
Third-party sales$2,052 $843 $572 $528 $3,995 
Inter-segment sales4 — 6 — 10 
Total sales$2,056 $843 $578 $528 $4,005 
Expenses:
Segment Adjusted cost of goods sold(1)
$1,330 $532 $439 $363 $2,664 
   Other segment items(2)
52 58 17 21 148 
Profit and loss:
Segment Adjusted EBITDA$674 $253 $122 $144 $1,193 
Provision for depreciation and amortization69 24 22 20 135 
Restructuring and other charges (credits)— 1 (4)(1)(4)
Other:
Capital expenditures$161 $19 $11 $23 $214 
Total assets5,512 2,787 1,374 748 10,421 
Six months ended June 30, 2024
Sales:
Third-party sales$1,818 $783 $537 $566 $3,704 
Inter-segment sales3 — 4 — 7 
Total sales$1,821 $783 $541 $566 $3,711 
Expenses:
Segment Adjusted cost of goods sold(1)
$1,228 $533 $444 $387 $2,592 
   Other segment items(2)
52 57 20 22 151 
Profit and loss:
Segment Adjusted EBITDA$541 $193 $77 $157 $968 
Provision for depreciation and amortization66 24 22 20 132 
Restructuring and other (credits) charges(1)2 18 1 20 
Other:
Capital expenditures$88 $12 $11 $21 $132 
Total assets5,038 2,738 1,405 736 $9,917 
(1)Segment Adjusted cost of goods sold is exclusive of Provision for depreciation and amortization, Restructuring and other charges (credits), and Corporate expenses.
(2)Other segment items includes Selling, general administrative, and other expenses, and Research and development expenses; exclusive of Provision for depreciation and amortization, and Restructuring and other charges (credits).
The following table reconciles Total Segment Adjusted EBITDA to Income before income taxes. Differences between the total segment and consolidated totals are in Corporate.
Second quarter endedSix months ended
June 30,June 30,
2025202420252024
Total Segment Adjusted EBITDA$613 $508 $1,193 $968 
Segment provision for depreciation and amortization(67)(67)(135)(132)
Unallocated amounts:
Restructuring and other (charges) credits— (22)4 (22)
Corporate expense(25)(21)(47)(47)
Operating income$521 $398 $1,015 $767 
Interest expense, net(38)(49)(77)(98)
Other expense, net(14)(15)(23)(32)
Income before income taxes$469 $334 $915 $637 
The following table reconciles total segment capital expenditures with Capital expenditures as presented in the Statement of Consolidated Cash Flows.
Second quarter endedSix months ended
June 30,June 30,
2025202420252024
Total segment capital expenditures$98 $52 $214 $132 
Corporate4 3 7 5 
Capital expenditures$102 $55 $221 $137 
The following table disaggregates segment revenue by major market served. Differences between the total segment and consolidated totals are in Corporate.
Engine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
Second quarter ended June 30, 2025
Aerospace - Commercial$574 $297 $189 $— $1,060 
Aerospace - Defense 217 44 91 — 352 
Commercial Transportation— 56 — 276 332 
Industrial and Other265 34 10 — 309 
Total end-market revenue$1,056 $431 $290 $276 $2,053 
Second quarter ended June 30, 2024
Aerospace - Commercial$528 $251 $200 $— $979 
Aerospace - Defense 192 37 61 — 290 
Commercial Transportation— 68 — 278 346 
Industrial and Other213 38 14 — 265 
Total end-market revenue$933 $394 $275 $278 $1,880 
Six months ended June 30, 2025
Aerospace - Commercial$1,123 $572 $381 $— $2,076 
Aerospace - Defense 432 86 167 — 685 
Commercial Transportation— 109 — 528 637 
Industrial and Other497 76 24 — 597 
Total end-market revenue$2,052 $843 $572 $528 $3,995 
Six months ended June 30, 2024
Aerospace - Commercial$1,020 $495 $392 $— $1,907 
Aerospace - Defense 377 76 117 — 570 
Commercial Transportation— 134 — 566 700 
Industrial and Other421 78 28 — 527 
Total end-market revenue$1,818 $783 $537 $566 $3,704 
The Company derived 69% and 67% of its revenue from the aerospace (commercial and defense) markets for the six months ended June 30, 2025 and 2024, respectively.
RTX Corporation and GE Aerospace represented approximately 11% and 10%, respectively, of the Company’s third-party sales in the six months ended June 30, 2025. GE Aerospace and RTX Corporation each represented approximately 10%, respectively, of the Company’s third-party sales in the six months ended June 30, 2024. These sales were primarily from the Engine Products segment.