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Segment Information
 9 Months Ended
Sep. 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
Third quarter ended September 30, 2025
Sales:
Third-party sales$1,105 $448 $289 $247 $2,089 
Inter-segment sales1 — 2 — 3 
Total sales$1,106 $448 $291 $247 $2,092 
Expenses:
Segment Adjusted cost of goods sold(1)
$709 $280 $224 $162 $1,375 
Other segment items(2)
29 30 9 12 80 
Profit and loss:
Segment Adjusted EBITDA$368 $138 $58 $73 $637 
Provision for depreciation and amortization38 12 9 11 70 
Other:
Capital expenditures$74 $13 $9 $9 $105 
Third quarter ended September 30, 2024
Sales:
Third-party sales$945 $392 $253 $245 $1,835 
Inter-segment sales3 — 3 — 6 
Total sales$948 $392 $256 $245 $1,841 
Expenses:
Segment Adjusted cost of goods sold(1)
$616 $265 $210 $171 $1,262 
Other segment items(2)
25 25 8 10 68 
Profit and loss:
Segment Adjusted EBITDA$307 $102 $38 $64 $511 
Provision for depreciation and amortization34 12 10 10 66 
Restructuring and other charges (credits)1 1 (3)— (1)
Other:
Capital expenditures$55 $5 $5 $14 $79 
Engine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
Nine months ended September 30, 2025
Sales:
Third-party sales$3,157 $1,291 $861 $775 $6,084 
Inter-segment sales5 — 8 — 13 
Total sales$3,162 $1,291 $869 $775 $6,097 
Expenses:
Segment Adjusted cost of goods sold(1)
$2,039 $812 $663 $525 $4,039 
Other segment items(2)
81 88 26 33 228 
Profit and loss:
Segment Adjusted EBITDA$1,042 $391 $180 $217 $1,830 
Provision for depreciation and amortization107 36 31 31 205 
Restructuring and other charges (credits)— 1 (4)(1)(4)
Other:
Capital expenditures$235 $32 $20 $32 $319 
Total assets5,597 2,782 1,361 733 10,473 
Nine months ended September 30, 2024
Sales:
Third-party sales$2,763 $1,175 $790 $811 $5,539 
Inter-segment sales6 — 7 — 13 
Total sales$2,769 $1,175 $797 $811 $5,552 
Expenses:
Segment Adjusted cost of goods sold(1)
$1,844 $798 $654 $558 $3,854 
Other segment items(2)
77 82 28 32 219 
Profit and loss:
Segment Adjusted EBITDA$848 $295 $115 $221 $1,479 
Provision for depreciation and amortization100 36 32 30 198 
Restructuring and other charges— 3 15 1 19 
Other:
Capital expenditures$143 $17 $16 $35 $211 
Total assets5,181 2,750 1,379 737 $10,047 
(1)Segment Adjusted cost of goods sold is exclusive of Provision for depreciation and amortization, Restructuring and other (credits) charges, 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) charges.
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,
2025202420252024
Total Segment Adjusted EBITDA$637 $511 $1,830 $1,479 
Segment provision for depreciation and amortization(70)(66)(205)(198)
Unallocated amounts:
Restructuring and other credits (charges)— 1 4 (21)
Corporate expense(25)(25)(72)(72)
Operating income$542 $421 $1,557 $1,188 
Loss on debt redemption— (6)— (6)
Interest expense, net(37)(44)(114)(142)
Other expense, net(10)(17)(33)(49)
Income before income taxes$495 $354 $1,410 $991 
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,
2025202420252024
Total segment capital expenditures$105 $79 $319 $211 
Corporate3 3 10 8 
Capital expenditures$108 $82 $329 $219 
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, 2025
Aerospace - Commercial$603 $310 $196 $— $1,109 
Aerospace - Defense 232 44 81 — 357 
Commercial Transportation— 54 — 247 301 
Industrial and Other:
Industrial Gas Turbine152 — — — 152 
Oil and Gas89 — — — 89 
General Industrial29 40 12 — 81 
Total end-market revenue$1,105 $448 $289 $247 $2,089 
Third quarter ended September 30, 2024
Aerospace - Commercial$534 $245 $183 $— $962 
Aerospace - Defense 189 43 57 — 289 
Commercial Transportation— 65 — 245 310 
Industrial and Other:
Industrial Gas Turbine124 — — — 124 
Oil and Gas67 — — — 67 
General Industrial31 39 13 — 83 
Total end-market revenue$945 $392 $253 $245 $1,835 
Nine months ended September 30, 2025
Aerospace - Commercial$1,726 $882 $577 $— $3,185 
Aerospace - Defense 664 130 248 — 1,042 
Commercial Transportation— 163 — 775 938 
Industrial and Other:
Industrial Gas Turbine431 — — — 431 
Oil and Gas247 — — — 247 
General Industrial89 116 36 — 241 
Total end-market revenue$3,157 $1,291 $861 $775 $6,084 
Nine months ended September 30, 2024
Aerospace - Commercial$1,554 $740 $575 $— $2,869 
Aerospace - Defense 566 119 174 — 859 
Commercial Transportation— 199 — 811 1,010 
Industrial and Other:
Industrial Gas Turbine359 — — — 359 
Oil and Gas195 — — — 195 
General Industrial89 117 41 — 247 
Total end-market revenue$2,763 $1,175 $790 $811 $5,539 
The Company derived 69% and 67% of its revenue from the aerospace (commercial and defense) markets for the nine months ended September 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 nine months ended September 30, 2025. GE Aerospace and RTX Corporation each represented approximately 10% of the Company’s third-party sales in the nine months ended September 30, 2024. These sales were primarily from the Engine Products segment.