8-K
Howmet Aerospace Inc. (HWM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT
REPORT
**Pursuantto Section 13 or 15(**d) of the
Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported):October 30, 2025 (October 30, 2025)
HOWMET AEROSPACE INC.
(Exact name of registrant as specified in its charter)
| Delaware | 1-3610 | 25-0317820 |
|---|---|---|
| (State of Incorporation) | (Commission File Number) | (IRS Employer <br><br>Identification No.) |
| 201 Isabella Street, Suite 200 | ||
| --- | ||
| Pittsburgh, Pennsylvania | 15212-5872 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Office of InvestorRelations (412) 553-1950
Office of the
Secretary (412) 553-1940
(Registrant’s telephone numbers including area code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under<br>the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $1.00 per share | HWM | New York Stock Exchange |
| $3.75 Cumulative Preferred Stock, par value $100 per share | HWM PR | NYSE American |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. Results of Operations and Financial Condition.
On October 30, 2025, Howmet Aerospace Inc. issued a press release announcing its financial results for the third quarter of 2025. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | Howmet Aerospace Inc. press release dated October 30, 2025. |
|---|---|
| 104 | The cover page of this Current Report on Form 8-K, formatted in Inline XBRL. |
| --- | --- |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HOWMET AEROSPACE INC. | ||
|---|---|---|
| Dated: October 30, 2025 | By: | /s/ Ken Giacobbe |
| Name: | Ken Giacobbe | |
| Title: | Executive<br>Vice President and Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATERELEASE
| Investor Contact | Media Contact |
|---|---|
| Paul T. Luther | Rob Morrison |
| (412) 553-1950 | (412) 553-2666 |
| Paul.Luther@howmet.com | Rob.Morrison@howmet.com |
Howmet AerospaceReports Third Quarter 2025 Results
Record Revenue,Growth Accelerated to 14% Year Over Year; Strong Profit; Record Cash from Operations
$200 Million Deployedfor Common Stock Repurchases; $63 Million Debt Reduction
Full Year 2025Guidance: Raised on All Metrics
Full Year 2026Revenue Guidance: Approximately $9 Billion, Up ~10% Year over Year
Third Quarter 2025 GAAP FinancialResults
| · | Revenue<br> of $2.09 billion, up 14% year over year, driven by Commercial Aerospace, up 15% |
|---|---|
| · | Operating<br> Income Margin of 25.9%, up 300 basis points year over year |
| --- | --- |
| · | Net<br> Income of $385 million versus $332 million in the third quarter 2024; Earnings per Share<br> of $0.95 versus $0.81 in the third quarter 2024 |
| --- | --- |
| · | Generated<br> $531 million of Cash from Operations; $314 million of Cash used for Financing Activities;<br> and $104 million of Cash used for Investing Activities |
| --- | --- |
| · | Share<br> repurchases of $200 million; paid $0.12 per share common stock dividend, a 20% increase from<br> the second quarter 2025 |
| --- | --- |
Third Quarter 2025 Adjusted FinancialResults
| · | Adjusted<br> EBITDA excluding special items of $614 million, up 26% year over year |
|---|---|
| · | Adjusted<br> EBITDA margin excluding special items of 29.4%, up 290 basis points year over year |
| --- | --- |
| · | Adjusted<br> Operating Income Margin excluding special items of 25.9%, up 310 basis points year over year |
| --- | --- |
| · | Adjusted<br> Earnings Per Share excluding special items of $0.95, up 34% year over year |
| --- | --- |
| · | Generated<br> $423 million of Free Cash Flow |
| --- | --- |
2025 Guidance
| Q4 2025 Guidance | FY 2025 Guidance | |||||
|---|---|---|---|---|---|---|
| Low | Baseline | High | Low | Baseline | High | |
| Revenue | $2.090B | $2.100B | $2.110B | ~$8.175B | ~$8.185B | ~$8.195B |
| Adj. EBITDA^*1^ | $605M | $610M | $615M | ~$2.370B | ~$2.375B | ~$2.380B |
| Adj. EBITDA Margin^*1^ | 28.9% | 29.0% | 29.1% | 29.0% | 29.0% | 29.0% |
| Adj. Earnings per Share^*1^ | $0.94 | $0.95 | $0.96 | $3.66 | $3.67 | $3.68 |
| Free Cash Flow^1^ | $1.275B | $1.300B | $1.325B |
* Excluding special items
^1^ Reconciliations of the forward-looking non-GAAP measures to the most directly comparable GAAP measures, as well as the directly comparable GAAP measures, are not available without unreasonable efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP measures – for further detail, see “2025 Guidance” below.
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Key Announcements
| · | Repurchased<br> $200 million of common stock in third quarter 2025 at an average price of $182.20 per share |
|---|---|
| · | Repurchased<br> an additional $100 million of common stock in October 2025 at an average price of $191.86<br> per share |
| --- | --- |
| · | Increased<br> the third quarter dividend by 20% quarter over quarter to $0.12 per share on the Company’s<br> common stock |
| --- | --- |
| · | Paid<br> down remaining $63 million of the US dollar-denominated Term Loan in third quarter 2025,<br> reducing annualized interest expense by approximately $4 million |
| --- | --- |
| · | S&P<br> upgraded Howmet Aerospace’s long-term issuer credit rating from BBB to BBB+ on September 8,<br> 2025 |
| --- | --- |
| · | Full<br> Year 2025 Guidance: Raised on all metrics |
| --- | --- |
| · | Full<br> Year 2026 Revenue Guidance: Approximately $9 billion, up ~10% year over year |
| --- | --- |
PITTSBURGH, PA, October 30, 2025 – Howmet Aerospace (NYSE: HWM) today reported third quarter 2025 results. The Company reported record third quarter 2025 revenue of $2.09 billion, up 14% year over year, driven by growth in the commercial aerospace market of 15%, growth in the defense aerospace market of 24%, and growth in the industrial and other market of 18%, partially offset by declines in the commercial transportation market of 3%.
Howmet Aerospace reported Net Income of $385 million, or $0.95 per share, in the third quarter 2025 versus $332 million, or $0.81 per share, in the third quarter 2024. Net Income excluding special items was $385 million, or $0.95 per share, in the third quarter 2025, versus $290 million, or $0.71 per share, in the third quarter 2024; there was no impact from special items in the third quarter of 2025.
Third quarter 2025 Operating Income and Operating Income excluding special items were both $542 million, up 29% year over year. Operating Income Margin was 25.9%, up approximately 300 basis points year over year. Third quarter 2025 Adjusted Operating Income Margin excluding special items was 25.9%, up approximately 310 basis points year over year.
Third quarter 2025 Adjusted EBITDA excluding special items was $614 million, up 26% year over year. The year-over-year increase was driven by strong growth in the commercial aerospace, defense aerospace, and industrial and other markets. Adjusted EBITDA margin excluding special items was up approximately 290 basis points year over year at 29.4%.
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, “The Howmet team drove a very strong third quarter, with results exceeding the high end of guidance on all metrics. Notably, revenue growth accelerated to 14% year over year, versus 8% growth in the first half, driven by healthy demand across the commercial aerospace, defense aerospace, and industrial and other markets. Adjusted EBITDA Margin**^*^** was solid at 29.4%, up 290 basis points year over year. Free Cash Flow was $423 million after $108 million of capital expenditures, as Howmet continues to invest in growth, which is backed by customer contracts.”
* Excluding special items
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Mr. Plant continued, “Strong cash generation supported continued return of cash to shareholders, with $200 million of share repurchases in the third quarter 2025 and an additional $100 million in October, bringing year-to-date repurchases to $600 million. Furthermore, the Board of Directors declared a 20% increase in the common stock dividend to $0.12 per share in the third quarter 2025. The Company also paid down $63 million of debt in the quarter, further strengthening the balance sheet.”
“Turning to 2026, the outlook across most of our major end markets remains solid. Air traffic continues to grow and the backlog of commercial aircraft extends through the decade, providing for both solid commercial aerospace original equipment demand and growing demand for engine spares. The defense aerospace market remains strong across F-35 demand in addition to legacy fighters. Growing power demand to support data center builds bolsters the industrial gas turbine and aeroderivative market. However, the commercial transportation market remains weak. Our 2026 outlook envisions revenue of approximately $9 billion, up ~10% year over year.”
Third Quarter 2025 Segment Performance
| Engine Products | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in U.S. dollar millions) | |||||||||||||||
| Third-party sales | $ | 945 | $ | 972 | $ | 996 | $ | 1,056 | $ | 1,105 | |||||
| Inter-segment sales | $ | 3 | $ | 1 | $ | 2 | $ | 2 | $ | 1 | |||||
| Provision for depreciation and amortization | $ | 34 | $ | 39 | $ | 34 | $ | 35 | $ | 38 | |||||
| Segment Adjusted EBITDA | $ | 307 | $ | 302 | $ | 325 | $ | 349 | $ | 368 | |||||
| Segment Adjusted EBITDA Margin | 32.5 | % | 31.1 | % | 32.6 | % | 33.0 | % | 33.3 | % | |||||
| Restructuring and other (credits) charges | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | |||||
| Capital expenditures | $ | 55 | $ | 76 | $ | 86 | $ | 75 | $ | 74 |
Engine Products reported third quarter 2025 revenue of $1.1 billion, an increase of 17% year over year, due to growth in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets, including engine spares growth. Segment Adjusted EBITDA was $368 million, up 20% year over year, driven by growth in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets. The segment absorbed approximately 265 net headcount in the quarter in support of expected revenue increases. Segment Adjusted EBITDA Margin increased approximately 80 basis points year over year to 33.3%.
| Fastening Systems | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in U.S. dollar millions) | |||||||||||||||
| Third-party sales | $ | 392 | $ | 401 | $ | 412 | $ | 431 | $ | 448 | |||||
| Inter-segment sales | $ | — | $ | 1 | $ | — | $ | — | $ | — | |||||
| Provision for depreciation and amortization | $ | 12 | $ | 11 | $ | 12 | $ | 12 | $ | 12 | |||||
| Segment Adjusted EBITDA | $ | 102 | $ | 111 | $ | 127 | $ | 126 | $ | 138 | |||||
| Segment Adjusted EBITDA Margin | 26.0 | % | 27.7 | % | 30.8 | % | 29.2 | % | 30.8 | % | |||||
| Restructuring and other charges | $ | 1 | $ | 2 | $ | — | $ | 1 | $ | — | |||||
| Capital expenditures | $ | 5 | $ | 9 | $ | 10 | $ | 9 | $ | 13 |
3
Fastening Systems reported revenue of $448 million, an increase of 14% year over year, due to growth in the commercial aerospace market, partially offset by declines in the commercial transportation market. Segment Adjusted EBITDA was $138 million, up 35% year over year, driven by growth in the commercial aerospace market as well as productivity gains, partially offset by declines in the commercial transportation market. Segment Adjusted EBITDA Margin increased approximately 480 basis points year over year to 30.8%.
| Engineered Structures | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in U.S. dollar millions) | |||||||||||||||
| Third-party sales | $ | 253 | $ | 275 | $ | 282 | $ | 290 | $ | 289 | |||||
| Inter-segment sales | $ | 3 | $ | 3 | $ | 3 | $ | 3 | $ | 2 | |||||
| Provision for depreciation and amortization | $ | 10 | $ | 10 | $ | 12 | $ | 10 | $ | 9 | |||||
| Segment Adjusted EBITDA | $ | 38 | $ | 51 | $ | 60 | $ | 62 | $ | 58 | |||||
| Segment Adjusted EBITDA Margin | 15.0 | % | 18.5 | % | 21.3 | % | 21.4 | % | 20.1 | % | |||||
| Restructuring and other charges (credits) | $ | (3 | ) | $ | (3 | ) | $ | (4 | ) | $ | — | $ | — | ||
| Capital expenditures | $ | 5 | $ | 4 | $ | 5 | $ | 6 | $ | 9 |
Engineered Structures reported revenue of $289 million, an increase of 14% year over year due to growth in the defense and commercial aerospace markets. Segment Adjusted EBITDA was $58 million, up 53% year over year, driven by growth in the defense and commercial aerospace markets. Segment Adjusted EBITDA Margin increased approximately 510 basis points year over year to 20.1%.
| Forged Wheels | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in U.S. dollar millions) | |||||||||||||||
| Third-party sales | $ | 245 | $ | 243 | $ | 252 | $ | 276 | $ | 247 | |||||
| Provision for depreciation and amortization | $ | 10 | $ | 12 | $ | 10 | $ | 10 | $ | 11 | |||||
| Segment Adjusted EBITDA | $ | 64 | $ | 66 | $ | 68 | $ | 76 | $ | 73 | |||||
| Segment Adjusted EBITDA Margin | 26.1 | % | 27.2 | % | 27.0 | % | 27.5 | % | 29.6 | % | |||||
| Restructuring and other charges (credits) | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | ||||
| Capital expenditures | $ | 14 | $ | 10 | $ | 15 | $ | 8 | $ | 9 |
Forged Wheels reported revenue of $247 million, up slightly year over year, with 16% lower volumes in the commercial transportation market more than offset by an increase in aluminum cost pass through. Segment Adjusted EBITDA was $73 million, up 14% year over year, driven by cost reductions in response to lower volumes in the commercial transportation market. Segment Adjusted EBITDA Margin increased approximately 350 basis points year over year to 29.6%.
Repurchased $200 Million of CommonStock in Third Quarter 2025, $100 Million in October 2025
In the third quarter 2025, Howmet Aerospace repurchased $200 million of common stock at an average price of $182.20 per share, retiring approximately 1.1 million shares. In October 2025, the Company repurchased an additional $100 million of common stock at an average price of $191.86 per share, retiring approximately 0.5 million shares. Year to date through October 2025, the Company has repurchased $600 million of common stock at an average price of $155.67, retiring approximately 3.9 million shares. As of October 30, 2025, total share repurchase authorization available is $1.597 billion.
4
Quarterly Common Stock Dividend Increases20% to $0.12 Per Share in Third Quarter 2025
On July 29, 2025, the Board of Directors declared a dividend of $0.12 per share on its common stock, which was paid on August 25, 2025 to holders of record as of the close of business on August 8, 2025. The quarterly dividend represents a 20% increase from the second quarter 2025 dividend of $0.10 per share.
Paid Down Remaining $63 Million ofUS Dollar-Denominated Term Loan
In the third quarter 2025, the Company paid down the remaining $63 million of its USD Term Loan, resulting in annualized interest expense savings of approximately $4 million.
S&P Upgraded Howmet AerospaceRating to BBB+
S&P upgraded Howmet Aerospace’s long-term issuer credit rating from BBB to BBB+ on September 8, 2025. All three major credit rating agencies rate Howmet Aerospace three notches into Investment Grade.
2025 Guidance
| Q4 2025 Guidance | FY 2025 Guidance | ||||
|---|---|---|---|---|---|
| Low | Baseline | High | Low | Baseline | |
| Revenue | $2.090B | $2.100B | $2.110B | ~$8.175B | ~8.185B |
| Baseline Change | +~55M | ||||
| Adj. EBITDA^*1^ | $605M | $610M | $615M | ~$2.370B | ~2.375B |
| Adj. EBITDA Margin^*1^ | 28.9% | 29.0% | 29.1% | 29.0% | 29.0% |
| Baseline Change | +~55M<br> +50 bps | ||||
| Adj. Earnings per Share^*1^ | $0.94 | $0.95 | $0.96 | $3.66 | 3.67 |
| Baseline Change | +0.07 | ||||
| Free Cash Flow^1^ | $1.275B | 1.300B | |||
| Baseline Change | +75M |
All values are in US Dollars.
* Excluding Special Items
^1^ Reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as the directly comparable GAAP measures, are not available without unreasonable efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP measures, such as gains or losses on sales of assets, taxes, and any future restructuring or impairment charges. In addition, there is inherent variability already included in the GAAP measures, including, but not limited to, price/mix and volume. Howmet Aerospace believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors.
Howmet Aerospace will hold its quarterlyconference call at 10:00 AM Eastern Time on Thursday, October 30, 2025. The call will be webcast via www.howmet.com. The press releaseand presentation materials will be available at approximately 7:00 AM ET on October 30, via the “Investors” sectionof the Howmet Aerospace website.
5
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace and transportation industries. The Company’s primary businesses focus on jet engine components, aerospace fastening systems, and airframe structural components necessary for mission-critical performance and efficiency in aerospace and defense applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,170 granted and pending patents, the Company’s differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.
Forward-Looking Statements
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "anticipates", "believes", "could", “envisions”, "estimates", "expects", "forecasts", "goal", "guidance", "intends", "may", "outlook", "plans", “poised”, "projects", "seeks", "sees", "should", "targets", "will", "would", or other words of similar meaning. All statements that reflect Howmet Aerospace’s expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the condition of markets; future financial results or operating performance; future strategic actions; Howmet Aerospace's strategies, outlook, and business and financial prospects; and any future dividends, debt issuances, debt reduction and repurchases of its common stock. These statements reflect beliefs and assumptions that are based on Howmet Aerospace’s perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: (a) deterioration in global economic and financial market conditions generally, or unfavorable changes in the markets served by Howmet Aerospace, including due to escalating tariff and other trade policies and the resulting impacts on Howmet Aerospace’s supply and distribution chains, as well as on market volatility and global trade generally; (b) the impact of potential cyber attacks and information technology or data security breaches; (c) the loss of significant customers or adverse changes in customers’ business or financial conditions; (d) manufacturing difficulties or other issues that impact product performance, quality or safety; (e) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (f) failure to attract and retain a qualified workforce and key personnel, labor disputes or other employee relations issues; (g) the inability to achieve improvement in or strengthening of financial performance, operations or competitiveness anticipated or targeted; (h) inability to meet increased demand, production targets or commitments; (i) competition from new product offerings, disruptive technologies or other developments; (j) geopolitical, economic, and regulatory risks relating to Howmet Aerospace’s global operations, including geopolitical and diplomatic tensions, instabilities, conflicts and wars, as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (k) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation; (l) failure to comply with government contracting regulations; (m) adverse changes in discount rates or investment returns on pension assets; and (n) the other risk factors summarized in Howmet Aerospace’s Form 10-K for the year ended December 31, 2024 and other reports filed with the U.S. Securities and Exchange Commission. Market projections are subject to the risks discussed above and other risks in the market. Under its share repurchase program, the Company may repurchase shares from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements and other considerations. The Company is not obligated to repurchase any specific number of shares or to do so at any particular time. The declaration of any future dividends is subject to the discretion and approval of the Board of Directors after the Board’s consideration of all factors it deems relevant and subject to applicable law. The Company may modify, suspend, or cancel its share repurchase program or its dividend policy in any manner and at any time that it may deem necessary or appropriate. Credit ratings are not a recommendation to buy or hold any Howmet Aerospace securities, and they may be revised or revoked at any time at the sole discretion of the credit rating organizations. The statements in this release are made as of the date of this release, even if subsequently made available by Howmet Aerospace on its website or otherwise. Howmet Aerospace disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
6
Non-GAAP Financial Measures
Some of the information included in this release is derived from Howmet Aerospace’s consolidated financial information but is not presented in Howmet Aerospace’s financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain of these data are considered “non-GAAP financial measures” under SEC rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Reconciliations to the most directly comparable GAAP financial measures and management’s rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.
Other Information
In this press release, the acronym “FY” means “full year”; “Q” means “quarter”; “YoY” means year over year; “Adj.” means adjusted; Howmet, Howmet Aerospace, or the Company means Howmet Aerospace Inc.; and references to performance by Howmet Aerospace or its segments as “record” mean its best result since April 1, 2020 when Howmet Aerospace Inc. (previously named Arconic Inc.) separated from Arconic Corporation.
7
Howmet Aerospace Inc. and subsidiaries
Statement of Consolidated Operations(unaudited)
(in U.S. dollar millions, exceptper-share and share amounts)
| Quarter<br> ended | |||||||
|---|---|---|---|---|---|---|---|
| September 30,<br> 2025 | June 30,<br> 2025 | September 30,<br> 2024 | |||||
| Sales | $ | 2,089 | $ | 2,053 | $ | 1,835 | |
| Cost<br> of goods sold (exclusive of expenses below) | 1,365 | 1,365 | 1,253 | ||||
| Selling,<br> general administrative, and other expenses | 100 | 89 | 85 | ||||
| Research<br> and development expenses | 10 | 9 | 9 | ||||
| Provision<br> for depreciation and amortization | 72 | 69 | 68 | ||||
| Restructuring<br> and other credits | — | — | (1 | ) | |||
| Operating<br> income | 542 | 521 | 421 | ||||
| Loss<br> on debt redemption | — | — | 6 | ||||
| Interest<br> expense, net | 37 | 38 | 44 | ||||
| Other<br> expense, net | 10 | 14 | 17 | ||||
| Income<br> before income taxes | 495 | 469 | 354 | ||||
| Provision<br> for income taxes | 110 | 62 | 22 | ||||
| Net<br> income | $ | 385 | $ | 407 | $ | 332 | |
| Amounts<br> Attributable to Howmet Aerospace Common Shareholders: | |||||||
| Earnings<br> per share - basic^(1)^: | |||||||
| Net<br> income per share | $ | 0.96 | $ | 1.01 | $ | 0.81 | |
| Average<br> number of shares^(2)(3)^ | 403 | 404 | 408 | ||||
| Earnings<br> per share - diluted^(1)^: | |||||||
| Net<br> income per share | $ | 0.95 | $ | 1.00 | $ | 0.81 | |
| Average<br> number of shares^(2)(3)^ | 405 | 406 | 410 | ||||
| Common<br> stock outstanding at the end of the period | 403 | 404 | 407 | ||||
| ^(1)^ | In<br> order to calculate both basic and diluted earnings per share, preferred stock dividends declared<br> of less than $1 for the quarters presented need to be subtracted from Net income. | ||||||
| --- | --- | ||||||
| ^(2)^ | For<br> the quarters presented, the difference between the diluted average number of shares and the<br> basic average number of shares relates to share equivalents associated with outstanding restricted<br> stock unit awards and employee stock options. | ||||||
| --- | --- | ||||||
| ^(3)^ | As<br> average shares outstanding are used in the calculation of both basic and diluted earnings<br> per share, the full impact of share repurchases is not fully realized in earnings per share<br> ("EPS") in the period of repurchase since share repurchases may occur at varying<br> points during a period. | ||||||
| --- | --- |
8
HowmetAerospace Inc. and subsidiaries
ConsolidatedBalance Sheet (unaudited)
(inU.S. dollar millions)
| December 31,<br> 2024 | |||||
|---|---|---|---|---|---|
| Assets | |||||
| Current<br> assets: | |||||
| Cash<br> and cash equivalents | 659 | $ | 564 | ||
| Receivables<br> from customers, less allowances of — in both 2025 and 2024 | 884 | 689 | |||
| Other<br> receivables | 17 | 20 | |||
| Inventories | 1,975 | 1,840 | |||
| Prepaid<br> expenses and other current assets | 289 | 249 | |||
| Total<br> current assets | 3,824 | 3,362 | |||
| Properties,<br> plants, and equipment, net | 2,551 | 2,386 | |||
| Goodwill | 4,058 | 4,010 | |||
| Deferred<br> income taxes | 31 | 35 | |||
| Intangibles,<br> net | 462 | 475 | |||
| Other<br> noncurrent assets | 251 | 251 | |||
| Total<br> assets | 11,177 | $ | 10,519 | ||
| Liabilities | |||||
| Current<br> liabilities: | |||||
| Accounts<br> payable, trade | 957 | $ | 948 | ||
| Accrued<br> compensation and retirement costs | 314 | 305 | |||
| Taxes,<br> including income taxes | 71 | 60 | |||
| Accrued<br> interest payable | 32 | 59 | |||
| Other<br> current liabilities | 250 | 171 | |||
| Long-term<br> debt due within one year | 1 | 6 | |||
| Total<br> current liabilities | 1,625 | 1,549 | |||
| Long-term<br> debt | 3,188 | 3,309 | |||
| Accrued<br> pension benefits | 597 | 625 | |||
| Accrued<br> other postretirement benefits | 50 | 54 | |||
| Other<br> noncurrent liabilities and deferred credits | 574 | 428 | |||
| Total<br> liabilities | 6,034 | 5,965 | |||
| Equity | |||||
| Howmet<br> Aerospace shareholders’ equity: | |||||
| Preferred<br> stock | 55 | 55 | |||
| Common<br> stock | 403 | 405 | |||
| Additional<br> capital | 2,717 | 3,206 | |||
| Retained<br> earnings | 3,722 | 2,766 | |||
| Accumulated<br> other comprehensive loss | (1,754 | ) | (1,878 | ) | |
| Total<br> equity | 5,143 | 4,554 | |||
| Total<br> liabilities and equity | 11,177 | $ | 10,519 |
All values are in US Dollars.
9
HowmetAerospace Inc. and subsidiaries
Statementof Consolidated Cash Flows (unaudited)
(inU.S. dollar millions)
| Nine<br> months ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Operating<br> activities | ||||||
| Net<br> income | $ | 1,136 | $ | 841 | ||
| Adjustments<br> to reconcile net income to cash provided from operations: | ||||||
| Depreciation<br> and amortization | 210 | 204 | ||||
| Deferred<br> income taxes | 75 | 39 | ||||
| Restructuring<br> and other (credits) charges | (4 | ) | 21 | |||
| Net<br> realized and unrealized losses | 17 | 18 | ||||
| Net<br> periodic pension cost | 31 | 31 | ||||
| Stock-based<br> compensation | 59 | 54 | ||||
| Loss<br> on debt redemption | — | 6 | ||||
| Other | 3 | 4 | ||||
| Changes<br> in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: | ||||||
| Increase in receivables | (180 | ) | (97 | ) | ||
| Increase in inventories | (95 | ) | (139 | ) | ||
| (Increase)<br> decrease in prepaid expenses and other current assets | (11 | ) | 9 | |||
| Increase<br> (decrease) in accounts payable, trade | 17 | (67 | ) | |||
| Decrease<br> in accrued expenses | (2 | ) | (42 | ) | ||
| Decrease<br> in taxes, including income taxes | (3 | ) | (5 | ) | ||
| Pension<br> contributions | (30 | ) | (33 | ) | ||
| Increase<br> in noncurrent assets | (6 | ) | (6 | ) | ||
| Increase<br> (decrease) in noncurrent liabilities | 13 | (20 | ) | |||
| Cash<br> provided from operations | 1,230 | 818 | ||||
| Financing<br> Activities | ||||||
| Additions<br> to debt | — | 500 | ||||
| Repurchases<br> and payments on debt | (140 | ) | (805 | ) | ||
| Debt<br> issuance costs | — | (5 | ) | |||
| Premiums<br> paid on early redemption of debt | — | (5 | ) | |||
| Repurchases of common stock | (500 | ) | (310 | ) | ||
| Proceeds<br> from exercise of employee stock options | 1 | 7 | ||||
| Dividends<br> paid to shareholders | (131 | ) | (76 | ) | ||
| Taxes<br> paid for net share settlement of equity awards | (45 | ) | (48 | ) | ||
| Other | (5 | ) | — | |||
| Cash<br> used for financing activities | (820 | ) | (742 | ) | ||
| Investing<br> Activities | ||||||
| Capital<br> expenditures | (329 | ) | (219 | ) | ||
| Proceeds<br> from the sale of assets and businesses | 9 | 9 | ||||
| Additions<br> to investments | (9 | ) | — | |||
| Sale<br> of investments | 13 | — | ||||
| Other | — | 1 | ||||
| Cash<br> used for investing activities | (316 | ) | (209 | ) | ||
| Effect<br> of exchange rate changes on cash, cash equivalents and restricted cash | 1 | (2 | ) | |||
| Net<br> change in cash, cash equivalents and restricted cash | 95 | (135 | ) | |||
| Cash,<br> cash equivalents and restricted cash at beginning of period | 565 | 610 | ||||
| Cash,<br> cash equivalents and restricted cash at end of period | $ | 660 | $ | 475 |
10
HowmetAerospace Inc. and subsidiaries
Calculationof Financial Measures (unaudited), continued
(inU.S. dollars millions)
| Quarter<br> ended | Nine<br> months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of Free cash flow | 1Q25 | 2Q25 | 3Q25 | 3Q25 | ||||||||
| Cash<br> provided from operations | $ | 253 | $ | 446 | $ | 531 | $ | 1,230 | ||||
| Capital<br> expenditures | (119 | ) | (102 | ) | (108 | ) | (329 | ) | ||||
| Free<br> cash flow | $ | 134 | $ | 344 | $ | 423 | $ | 901 |
The Accounts Receivable Securitization program remains unchanged at $250 outstanding.
Free cash flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures (due to the fact that these expenditures are considered necessary to maintain and expand the Company's asset base and are expected to generate future cash flows from operations). It is important to note that Free cash flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.
11
HowmetAerospace Inc. and subsidiaries
SegmentInformation (unaudited)
(inU.S. dollar millions)
| 1Q24 | 2Q24 | 3Q24 | 4Q24 | 2024 | 1Q25 | 2Q25 | 3Q25 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Engine<br> Products | ||||||||||||||||||||||||
| Third-party<br> sales | $ | 885 | $ | 933 | $ | 945 | $ | 972 | $ | 3,735 | $ | 996 | $ | 1,056 | $ | 1,105 | ||||||||
| Inter-segment<br> sales | $ | 2 | $ | 1 | $ | 3 | $ | 1 | $ | 7 | $ | 2 | $ | 2 | $ | 1 | ||||||||
| Provision<br> for depreciation and amortization | $ | 33 | $ | 33 | $ | 34 | $ | 39 | $ | 139 | $ | 34 | $ | 35 | $ | 38 | ||||||||
| Segment<br> Adjusted EBITDA | $ | 249 | $ | 292 | $ | 307 | $ | 302 | $ | 1,150 | $ | 325 | $ | 349 | $ | 368 | ||||||||
| Segment<br> Adjusted EBITDA Margin | 28.1 | % | 31.3 | % | 32.5 | % | 31.1 | % | 30.8 | % | 32.6 | % | 33.0 | % | 33.3 | % | ||||||||
| Restructuring<br> and other (credits) charges | $ | — | $ | (1 | ) | $ | 1 | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | |||||||
| Capital<br> expenditures | $ | 55 | $ | 33 | $ | 55 | $ | 76 | $ | 219 | $ | 86 | $ | 75 | $ | 74 | ||||||||
| Fastening<br> Systems | ||||||||||||||||||||||||
| Third-party<br> sales | $ | 389 | $ | 394 | $ | 392 | $ | 401 | $ | 1,576 | $ | 412 | $ | 431 | $ | 448 | ||||||||
| Inter-segment<br> sales | $ | — | $ | — | $ | — | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | ||||||||
| Provision<br> for depreciation and amortization | $ | 11 | $ | 13 | $ | 12 | $ | 11 | $ | 47 | $ | 12 | $ | 12 | $ | 12 | ||||||||
| Segment<br> Adjusted EBITDA | $ | 92 | $ | 101 | $ | 102 | $ | 111 | $ | 406 | $ | 127 | $ | 126 | $ | 138 | ||||||||
| Segment<br> Adjusted EBITDA Margin | 23.7 | % | 25.6 | % | 26.0 | % | 27.7 | % | 25.8 | % | 30.8 | % | 29.2 | % | 30.8 | % | ||||||||
| Restructuring<br> and other charges | $ | — | $ | 2 | $ | 1 | $ | 2 | $ | 5 | $ | — | $ | 1 | $ | — | ||||||||
| Capital<br> expenditures | $ | 7 | $ | 5 | $ | 5 | $ | 9 | $ | 26 | $ | 10 | $ | 9 | $ | 13 | ||||||||
| Engineered<br> Structures | ||||||||||||||||||||||||
| Third-party<br> sales | $ | 262 | $ | 275 | $ | 253 | $ | 275 | $ | 1,065 | $ | 282 | $ | 290 | $ | 289 | ||||||||
| Inter-segment<br> sales | $ | 1 | $ | 3 | $ | 3 | $ | 3 | $ | 10 | $ | 3 | $ | 3 | $ | 2 | ||||||||
| Provision<br> for depreciation and amortization | $ | 11 | $ | 11 | $ | 10 | $ | 10 | $ | 42 | $ | 12 | $ | 10 | $ | 9 | ||||||||
| Segment<br> Adjusted EBITDA | $ | 37 | $ | 40 | $ | 38 | $ | 51 | $ | 166 | $ | 60 | $ | 62 | $ | 58 | ||||||||
| Segment<br> Adjusted EBITDA Margin | 14.1 | % | 14.5 | % | 15.0 | % | 18.5 | % | 15.6 | % | 21.3 | % | 21.4 | % | 20.1 | % | ||||||||
| Restructuring<br> and other charges (credits) | $ | — | $ | 18 | $ | (3 | ) | $ | (3 | ) | $ | 12 | $ | (4 | ) | $ | — | $ | — | |||||
| Capital<br> expenditures | $ | 6 | $ | 5 | $ | 5 | $ | 4 | $ | 20 | $ | 5 | $ | 6 | $ | 9 | ||||||||
| Forged<br> Wheels | ||||||||||||||||||||||||
| Third-party<br> sales | $ | 288 | $ | 278 | $ | 245 | $ | 243 | $ | 1,054 | $ | 252 | $ | 276 | $ | 247 | ||||||||
| Provision<br> for depreciation and amortization | $ | 10 | $ | 10 | $ | 10 | $ | 12 | $ | 42 | $ | 10 | $ | 10 | $ | 11 | ||||||||
| Segment<br> Adjusted EBITDA | $ | 82 | $ | 75 | $ | 64 | $ | 66 | $ | 287 | $ | 68 | $ | 76 | $ | 73 | ||||||||
| Segment<br> Adjusted EBITDA Margin | 28.5 | % | 27.0 | % | 26.1 | % | 27.2 | % | 27.2 | % | 27.0 | % | 27.5 | % | 29.6 | % | ||||||||
| Restructuring<br> and other charges (credits) | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | $ | (1 | ) | $ | — | |||||||
| Capital<br> expenditures | $ | 12 | $ | 9 | $ | 14 | $ | 10 | $ | 45 | $ | 15 | $ | 8 | $ | 9 |
Differences between the total segment and consolidated totals are in Corporate.
12
HowmetAerospace Inc. and subsidiaries
Calculationof Financial Measures (unaudited)
(inU.S. dollar millions)
Reconciliationof Total Segment Adjusted EBITDA to Consolidated Income Before Income Taxes
| 1Q24 | 2Q24 | 3Q24 | 4Q24 | 2024 | 1Q25 | 2Q25 | 3Q25 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income<br> before income taxes | $ | 303 | $ | 334 | $ | 354 | $ | 392 | $ | 1,383 | $ | 446 | $ | 469 | $ | 495 | ||
| Loss<br> on debt redemption | — | — | 6 | — | 6 | — | — | — | ||||||||||
| Interest<br> expense, net | 49 | 49 | 44 | 40 | 182 | 39 | 38 | 37 | ||||||||||
| Other<br> expense, net | 17 | 15 | 17 | 13 | 62 | 9 | 14 | 10 | ||||||||||
| Operating<br> income | $ | 369 | $ | 398 | $ | 421 | $ | 445 | $ | 1,633 | $ | 494 | $ | 521 | $ | 542 | ||
| Segment<br> provision for depreciation and amortization | 65 | 67 | 66 | 72 | 270 | 68 | 67 | 70 | ||||||||||
| Unallocated<br> amounts: | ||||||||||||||||||
| Restructuring<br> and other charges (credits) | — | 22 | (1 | ) | — | 21 | (4 | ) | — | — | ||||||||
| Corporate<br> expense^(1)^ | 26 | 21 | 25 | 13 | 85 | 22 | 25 | 25 | ||||||||||
| Total<br> Segment Adjusted EBITDA | $ | 460 | $ | 508 | $ | 511 | $ | 530 | $ | 2,009 | $ | 580 | $ | 613 | $ | 637 |
Total Segment Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Total Segment Adjusted EBITDA provides additional information with respect to the Company's operating performance and the Company’s ability to meet its financial obligations. The Total Segment Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. Howmet’s definition of Total 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. Differences between the total segment and consolidated totals are in Corporate.
(1) Pre-tax special items included in Corporate expense
| 1Q24 | 2Q24 | 3Q24 | 4Q24 | 2024 | 1Q25 | 2Q25 | 3Q25 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Plant<br> fire reimbursements, net | $ | — | $ | (6 | ) | $ | — | $ | (12 | ) | $ | (18 | ) | $ | — | $ | — | $ | — | ||
| Costs<br> (benefits) associated with closures, supply chain disruptions, and other items | 1 | — | (1 | ) | 1 | 1 | 1 | (1 | ) | — | |||||||||||
| Total<br> Pre-tax special items included in Corporate expense | $ | 1 | $ | (6 | ) | $ | (1 | ) | $ | (11 | ) | $ | (17 | ) | $ | 1 | $ | (1 | ) | $ | — |
13
HowmetAerospace Inc. and subsidiaries
Calculationof Financial Measures (unaudited), continued
(inU.S. dollar millions, except per-share and share amounts)
Reconciliation of Net income excluding Special items
| Quarter<br> ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| 3Q24 | 2Q25 | 3Q25 | ||||||
| Net<br> income | $ | 332 | $ | 407 | $ | 385 | ||
| Diluted<br> earnings per share ("EPS") | $ | 0.81 | $ | 1.00 | $ | 0.95 | ||
| Average<br> number of diluted shares | 410 | 406 | 405 | |||||
| Special<br> items: | ||||||||
| Restructuring<br> and other (credits) charges | (1 | ) | — | — | ||||
| Loss<br> on debt redemption | 6 | — | — | |||||
| (Benefits)<br> costs associated with closures, supply chain disruptions, and other items | (1 | ) | (1 | ) | — | |||
| Subtotal:<br> Pre-tax special items | 4 | (1 | ) | — | ||||
| Tax<br> impact of Pre-tax special items^(1)^ | (1 | ) | — | — | ||||
| Subtotal | 3 | (1 | ) | — | ||||
| Discrete<br> and other tax special items^(2)^ | (45 | ) | (35 | ) | — | |||
| Total:<br> After-tax special items | (42 | ) | (36 | ) | — | |||
| Net<br> income excluding Special items | $ | 290 | $ | 371 | $ | 385 | ||
| Diluted<br> EPS excluding Special items | $ | 0.71 | $ | 0.91 | $ | 0.95 |
Net income excluding Special items and Diluted EPS excluding Special items are non-GAAP financial measures. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Restructuring and other charges (credits), Discrete tax items, and Other special items (collectively, “Special items”). There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Net income and Diluted EPS determined under GAAP as well as Net income excluding Special items and Diluted EPS excluding Special items.
| ^(1)^ | The<br> Tax impact of Pre-tax special items is based on the applicable statutory rates whereby the<br> difference between such rates and the Company’s consolidated estimated annual effective<br> tax rate is itself a Special item. |
|---|---|
| ^(2)^ | Discrete<br> tax items for each period included the following: |
| --- | --- |
| · | for<br> 3Q24, a net benefit related to additional U.S. federal and state research and development<br> ("R&D") credits claimed for prior years upon completion of the Company's R&D<br> study ($44), and an excess tax benefit for stock compensation ($2); |
| --- | --- |
| · | for<br> 2Q25, benefits related to U.S. accounting method changes for certain prior period transaction<br> and other costs ($17), an excess benefit for stock compensation ($13), and a net benefit<br> related to U.S. federal and state R&D credits claimed for prior years ($5). |
| --- | --- |
| · | for<br> 3Q25, a net benefit for other small items of ($1). |
| --- | --- |
14
HowmetAerospace Inc. and subsidiaries
Calculationof Financial Measures (unaudited), continued
(inU.S. dollar millions)
Reconciliationof Operational tax rate
| 3Q25 | Nine months ended 3Q25 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Effective tax rate, as reported | Special items^(1)(2)^ | Operational tax rate, as adjusted | Effective tax rate, as reported | Special items^(1)(2)^ | Operational tax rate, as adjusted | ||||||||||||
| Income<br> before income taxes | $ | 495 | $ | — | $ | 495 | $ | 1,410 | $ | (4 | ) | $ | 1,406 | ||||
| Provision<br> for income taxes | $ | 110 | $ | — | $ | 110 | $ | 274 | $ | 25 | $ | 299 | |||||
| Tax<br> rate | 22.2 | % | 22.2 | % | 19.4 | % | 21.3 | % |
Operational tax rate is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both the Effective tax rate determined under GAAP as well as the Operational tax rate.
| ^(1)^ | There<br> were no pre-tax special items in Q325. Pre-tax special items for the nine months ended 3Q25<br> included Restructuring and other credits ($4). |
|---|---|
| ^(2)^ | Tax<br> Special items include discrete tax items, the tax impact on Special items based on the applicable<br> statutory rates, the difference between such rates and the Company’s consolidated estimated<br> annual effective tax rate and other tax related items. Discrete tax items for each period<br> included the following: |
| --- | --- |
| · | for<br> 3Q25, a net benefit for other small items of ($1); and |
| --- | --- |
| · | for<br> the nine months ended 3Q25, benefits related to U.S. accounting method changes for certain<br> prior period transaction and other costs ($17), an excess benefit for stock compensation<br> ($14), a net benefit related to U.S. federal and state research and development credits claimed<br> for prior years ($5), a net charge related to the expiration of a tax holiday in China $6,<br> a charge for a tax reserve established in Germany $2, and a net charge for other small items<br> $1. |
| --- | --- |
15
HowmetAerospace Inc. and subsidiaries
Calculationof Financial Measures (unaudited), continued
(inU.S. dollars millions)
Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin excluding Special items
| Quarter<br> ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 3Q24 | 2Q25 | 3Q25 | |||||||
| Sales | $ | 1,835 | $ | 2,053 | $ | 2,089 | |||
| Operating<br> income | $ | 421 | $ | 521 | $ | 542 | |||
| Operating<br> income margin | 22.9 | % | 25.4 | % | 25.9 | % | |||
| Net<br> income | $ | 332 | $ | 407 | $ | 385 | |||
| Add: | |||||||||
| Provision<br> for income taxes | $ | 22 | $ | 62 | $ | 110 | |||
| Other<br> expense, net | 17 | 14 | 10 | ||||||
| Loss<br> on debt redemption | 6 | — | — | ||||||
| Interest<br> expense, net | 44 | 38 | 37 | ||||||
| Restructuring<br> and other (credits) charges | (1 | ) | — | — | |||||
| Provision<br> for depreciation and amortization | 68 | 69 | 72 | ||||||
| Adjusted<br> EBITDA | $ | 488 | $ | 590 | $ | 614 | |||
| Add: | |||||||||
| (Benefits)<br> costs associated with closures, supply chain disruptions, and other items | (1 | ) | (1 | ) | — | ||||
| Adjusted<br> EBITDA excluding Special items | $ | 487 | $ | 589 | $ | 614 | |||
| Adjusted<br> EBITDA margin excluding Special items | 26.5 | % | 28.7 | % | 29.4 | % |
Adjusted EBITDA, Adjusted EBITDA excluding Special items, and Adjusted EBITDA margin excluding Special items are non-GAAP financial measures. Management believes that these measures are meaningful to investors because they provide additional information with respect to the Company's operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. The Company's definition of 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 Adjusted EBITDA.
16
HowmetAerospace Inc. and subsidiaries
Calculationof Financial Measures (unaudited), continued
(inU.S. dollar millions)
Reconciliationof Adjusted Operating Income Excluding Special Items and Adjusted Operating Income Margin Excluding Special Items
| Quarter<br> ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 3Q24 | 2Q25 | 3Q25 | |||||||
| Sales | $ | 1,835 | $ | 2,053 | $ | 2,089 | |||
| Operating<br> income | $ | 421 | $ | 521 | $ | 542 | |||
| Operating<br> income margin | 22.9 | % | 25.4 | % | 25.9 | % | |||
| Add: | |||||||||
| Restructuring<br> and other (credits) charges | $ | (1 | ) | $ | — | $ | — | ||
| (Benefits)<br> costs associated with closures, supply chain disruptions, and other items | (1 | ) | (1 | ) | — | ||||
| Adjusted<br> operating income excluding Special items | $ | 419 | $ | 520 | $ | 542 | |||
| Adjusted<br> operating income margin excluding Special items | 22.8 | % | 25.3 | % | 25.9 | % |
Adjusted operating income excluding Special items and Adjusted operating income margin excluding Special items are non-GAAP financial measures. Special items, including Restructuring and other (credits) charges, are excluded from Adjusted operating income. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Operating income determined under GAAP as well as Operating income excluding Special items.
17