XML 20 R11.htm IDEA: XBRL DOCUMENT
v3.25.1

Segment Information | 3 Months Ended
--- | ---
Mar. 31, 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 (credits) charges, 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 Products |  | Fastening Systems |  | Engineered Structures |  | Forged Wheels |  | Total Segment
First quarter ended March 31, 2025 |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |
Third-party sales | $ | 996 |  |  | $ | 412 |  |  | $ | 282 |  |  | $ | 252 |  |  | $ | 1,942 |
Inter-segment sales | 2 |  |  | — |  |  | 3 |  |  | — |  |  | 5 |
Total sales | $ | 998 |  |  | $ | 412 |  |  | $ | 285 |  |  | $ | 252 |  |  | $ | 1,947 |
Expenses: |  |  |  |  |  |  |  |  |
Segment Adjusted cost of goods sold(1) | $ | 648 |  |  | $ | 256 |  |  | $ | 217 |  |  | $ | 174 |  |  | $ | 1,295 |
Other segment items(2) | 25 |  |  | 29 |  |  | 8 |  |  | 10 |  |  | 72 |
Profit and loss: |  |  |  |  |  |  |  |  |
Segment Adjusted EBITDA | $ | 325 |  |  | $ | 127 |  |  | $ | 60 |  |  | $ | 68 |  |  | $ | 580 |
Restructuring and other (credits) charges | — |  |  | — |  |  | (4) |  |  | — |  |  | (4) |
Provision for depreciation and amortization | 34 |  |  | 12 |  |  | 12 |  |  | 10 |  |  | 68 |
Other: |  |  |  |  |  |  |  |  |
Capital expenditures | $ | 86 |  |  | $ | 10 |  |  | $ | 5 |  |  | $ | 15 |  |  | $ | 116 |
Total assets | 5,371 |  |  | 2,741 |  |  | 1,376 |  |  | 728 |  |  | 10,216 |
First quarter ended March 31, 2024 |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |
Third-party sales | $ | 885 |  |  | $ | 389 |  |  | $ | 262 |  |  | $ | 288 |  |  | $ | 1,824 |
Inter-segment sales | 2 |  |  | — |  |  | 1 |  |  | — |  |  | 3 |
Total sales | $ | 887 |  |  | $ | 389 |  |  | $ | 263 |  |  | $ | 288 |  |  | $ | 1,827 |
Expenses: |  |  |  |  |  |  |  |  |
Segment Adjusted cost of goods sold(1) | $ | 610 |  |  | $ | 268 |  |  | $ | 216 |  |  | $ | 195 |  |  | $ | 1,289 |
Other segment items(2) | 28 |  |  | 29 |  |  | 10 |  |  | 11 |  |  | 78 |
Profit and loss: |  |  |  |  |  |  |  |  |
Segment Adjusted EBITDA | $ | 249 |  |  | $ | 92 |  |  | $ | 37 |  |  | $ | 82 |  |  | $ | 460 |
Provision for depreciation and amortization | 33 |  |  | 11 |  |  | 11 |  |  | 10 |  |  | 65 |
Other: |  |  |  |  |  |  |  |  |
Capital expenditures | $ | 55 |  |  | $ | 7 |  |  | $ | 6 |  |  | $ | 12 |  |  | $ | 80 |
Total assets | 4,983 |  |  | 2,753 |  |  | 1,421 |  |  | 715 |  |  | 9,872 |
(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 other 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.
| First quarter ended |  |
| March 31, |  |
| 2025 |  | 2024 |  |  |  |
Total Segment Adjusted EBITDA | $ | 580 |  |  | $ | 460 |  |  |  |  |
Segment provision for depreciation and amortization | (68) |  |  | (65) |  |  |  |  |
Unallocated amounts: |  |  |  |  |  |  |
Restructuring and other credits (charges) | 4 |  |  | — |  |  |  |  |
Corporate expense | (22) |  |  | (26) |  |  |  |  |
Operating income | $ | 494 |  |  | $ | 369 |  |  |  |  |
Interest expense, net | (39) |  |  | (49) |  |  |  |  |
Other expense, net | (9) |  |  | (17) |  |  |  |  |
Income before income taxes | $ | 446 |  |  | $ | 303 |  |  |  |  |
The following table reconciles total segment capital expenditures with Capital expenditures as presented in the Statement of Consolidated Cash Flows.
| First quarter ended |  |
| March 31, |  |
| 2025 |  | 2024 |  |  |  |
Total segment capital expenditures | $ | 116 |  |  | $ | 80 |  |  |  |  |
Corporate | 3 |  |  | 2 |  |  |  |  |
Capital expenditures | $ | 119 |  |  | $ | 82 |  |  |  |  |
The following table disaggregates segment revenue by major market served. Differences between the total segment and consolidated totals are in Corporate.
| Engine Products |  | Fastening Systems |  | Engineered Structures |  | Forged Wheels |  | Total Segment
First quarter ended March 31, 2025 |  |  |  |  |  |  |  |  |
Aerospace - Commercial | $ | 549 |  |  | $ | 275 |  |  | $ | 192 |  |  | $ | — |  |  | $ | 1,016 |
Aerospace - Defense | 215 |  |  | 42 |  |  | 76 |  |  | — |  |  | 333 |
Commercial Transportation | — |  |  | 53 |  |  | — |  |  | 252 |  |  | 305 |
Industrial and Other | 232 |  |  | 42 |  |  | 14 |  |  | — |  |  | 288 |
Total end-market revenue | $ | 996 |  |  | $ | 412 |  |  | $ | 282 |  |  | $ | 252 |  |  | $ | 1,942 |
First quarter ended March 31, 2024 |  |  |  |  |  |  |  |  |
Aerospace - Commercial | $ | 492 |  |  | $ | 244 |  |  | $ | 192 |  |  | $ | — |  |  | $ | 928 |
Aerospace - Defense | 185 |  |  | 39 |  |  | 56 |  |  | — |  |  | 280 |
Commercial Transportation | — |  |  | 66 |  |  | — |  |  | 288 |  |  | 354 |
Industrial and Other | 208 |  |  | 40 |  |  | 14 |  |  | — |  |  | 262 |
Total end-market revenue | $ | 885 |  |  | $ | 389 |  |  | $ | 262 |  |  | $ | 288 |  |  | $ | 1,824 |
The Company derive d 69% and 66% of its revenue from the aerospace (commercial and defense) markets for the first quarter ended March 31, 2025 and 2024, respectively. On April 2, 2024, General Electric Company, one of our largest customers, completed the spin-off of its energy-focused business into GE Vernova, a new publicly traded company. Since then, General Electric Company operates as GE Aerospace. RTX Corporation and GE Aerospace represented approximately 11% and 10%, respectively, of the Company’s third-party sales in the first quarter ended March 31, 2025. General Electric Company and RTX Corporation represented approximately 12% and 9%, respectively, of the Company’s third-party sales in the first quarter ended March 31, 2024. These sales were primarily from the Engine Products segment.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration