v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
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, gas turbines, 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 is defined as Operating Income excluding Restructuring and other credits, Provision for depreciation and amortization, and Special items. Special items, including Restructuring and other credits, are excluded from 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.
In the first quarter of 2026, the Company’s CODM reorganized Howmet’s segments by moving a titanium alloy location from Engine Products to Engineered Structures as it better aligns with the operations of the Engineered Structures segment. The comparable periods of Engine Products and Engineered Structures have been recast to reflect the new alignment. The recasting had no impact on the Company’s consolidated results, financial position or cash flows.
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 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, and machining services for airframe, wing, aero-engine, and landing gear components. Engineered Structures also produces aluminum 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
Third quarter ended September 30, 2026
Sales:
Third-party sales$1,451 $630 $295 $327 $2,703 
Inter-segment sales2 — 13 — 15 
Total sales$1,453 $630 $308 $327 $2,718 
Expenses:
Segment Adjusted cost of goods sold(1)
$855 $403 $229 $230 $1,717 
Other segment items(2)
31 42 9 11 93 
Profit and loss:
Segment Adjusted EBITDA$567 $185 $70 $86 $908 
Provision for depreciation and amortization41 29 10 11 91 
Restructuring and other credits1 2 (1)— 2 
Other:
Capital expenditures$95 $19 $14 $14 $142 
Third quarter ended September 30, 2025
Sales:
Third-party sales$1,087 $448 $307 $247 $2,089 
Inter-segment sales2 — 7 — 9 
Total sales$1,089 $448 $314 $247 $2,098 
Expenses:
Segment Adjusted cost of goods sold(1)
$698 $280 $241 $162 $1,381 
Other segment items(2)
29 30 9 12 80 
Profit and loss:
Segment Adjusted EBITDA$362 $138 $64 $73 $637 
Provision for depreciation and amortization37 12 10 11 70 
Other:
Capital expenditures$73 $13 $10 $9 $105 
Engine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
Nine months ended September 30, 2026
Sales:
Third-party sales$4,077 $1,690 $858 $938 $7,563 
Inter-segment sales7 — 29 — 36 
Total sales$4,084 $1,690 $887 $938 $7,599 
Expenses:
Segment Adjusted cost of goods sold(1)
$2,451 $1,065 $659 $641 $4,816 
Other segment items(2)
91 113 28 33 265 
Profit and loss:
Segment Adjusted EBITDA$1,542 $512 $200 $264 $2,518 
Provision for depreciation and amortization121 62 31 32 246 
Restructuring and other credits1 2 (94)— (91)
Other:
Capital expenditures$231 $47 $34 $21 $333 
Total assets5,942 4,745 1,268 756 12,711 
Nine months ended September 30, 2025
Sales:
Third-party sales$3,099 $1,291 $919 $775 $6,084 
Inter-segment sales7 — 22 — 29 
Total sales$3,106 $1,291 $941 $775 $6,113 
Expenses:
Segment Adjusted cost of goods sold(1)
$2,002 $812 $716 $525 $4,055 
Other segment items(2)
81 88 26 33 228 
Profit and loss:
Segment Adjusted EBITDA$1,023 $391 $199 $217 $1,830 
Provision for depreciation and amortization105 36 33 31 205 
Restructuring and other charges (credits)— 1 (4)(1)(4)
Other:
Capital expenditures$232 $32 $23 $32 $319 
Total assets5,512 2,782 1,446 733 $10,473 
(1)Segment Adjusted cost of goods sold is exclusive of Provision for depreciation and amortization, Restructuring and other 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 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.
Third quarter endedNine months ended
September 30,September 30,
2026202520262025
Total Segment Adjusted EBITDA$908 $637 $2,518 $1,830 
Segment provision for depreciation and amortization(91)(70)(246)(205)
Unallocated amounts:
Restructuring and other credits(2)— 91 4 
Corporate expense(1)
(38)(25)(122)(72)
Operating income$777 $542 $2,241 $1,557 
Interest expense, net(48)(37)(142)(114)
Other expense, net(8)(10)(21)(33)
Income before income taxes$721 $495 $2,078 $1,410 
(1)    Corporate expense includes selling, general administrative and other expenses, costs of corporate headquarters, acquisition and acquisition-related costs, costs associated with closures, supply chain disruptions, and other items.
The following table reconciles total segment capital expenditures with Capital expenditures as presented in the Statement of Consolidated Cash Flows.
Third quarter endedNine months ended
September 30,September 30,
2026202520262025
Total segment capital expenditures$142 $105 $333 $319 
Corporate5 3 12 10 
Capital expenditures$147 $108 $345 $329 
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
Third quarter ended September 30, 2026
Aerospace - Commercial$824 $439 $196 $— $1,459 
Aerospace - Defense 239 73 79 — 391 
Commercial Transportation— 57 — 327 384 
Gas Turbines348 1 — — 349 
Other40 60 20 — 120 
Total end-market revenue$1,451 $630 $295 $327 $2,703 
Third quarter ended September 30, 2025
Aerospace - Commercial$591 $310 $208 $— $1,109 
Aerospace - Defense 229 44 84 — 357 
Commercial Transportation— 54 — 247 301 
Gas Turbines241 — — — 241 
Other26 40 15 — 81 
Total end-market revenue$1,087 $448 $307 $247 $2,089 
Nine months ended September 30, 2026
Aerospace - Commercial$2,296 $1,173 $564 $— $4,033 
Aerospace - Defense 727 188 231 — 1,146 
Commercial Transportation— 164 — 938 1,102 
Gas Turbines953 1 — — 954 
Other101 164 63 — 328 
Total end-market revenue$4,077 $1,690 $858 $938 $7,563 
Nine months ended September 30, 2025
Aerospace - Commercial$1,688 $882 $615 $— $3,185 
Aerospace - Defense 654 130 258 — 1,042 
Commercial Transportation— 163 — 775 938 
Gas Turbines678 — — — 678 
Other79 116 46 — 241 
Total end-market revenue$3,099 $1,291 $919 $775 $6,084 
The Company derived 68% and 69% of its revenue from the aerospace (commercial and defense) markets for the nine months ended September 30, 2026 and 2025, respectively.
GE Aerospace and RTX Corporation represented approximately 14% and 11%, respectively, of the Company’s third-party sales in the nine months ended September 30, 2026. RTX Corporation and GE Aerospace represented approximately 11% and 10%, respectively, of the Company’s third-party sales in the nine months ended September 30, 2025. These sales were primarily from the Engine Products segment.
Total deferred revenue was $397 ($204 in Deferred revenue and $193 in Other noncurrent liabilities) and $253 ($147 in Deferred revenue and $106 in Other noncurrent liabilities) as of September 30, 2026 and December 31, 2025, respectively.