# Howmet Aerospace Inc. (HWM)

Informational only - not investment advice.

CIK: 0000004281
SIC: 3350 Rolling Drawing & Extruding of  Nonferrous Metals
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 33](/major-group/33/) > [SIC 3350 Rolling Drawing & Extruding of  Nonferrous Metals](/industry/3350/)
Latest 10-K filed: 2026-02-12
SEC page: https://www.sec.gov/edgar/browse/?CIK=4281
Filing source: https://www.sec.gov/Archives/edgar/data/4281/000000428126000012/hwm-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-12 · accession 0000004281-26-000012 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000004281.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 8,252,000,000 USD | 2025 | verified |
| Net income | 1,508,000,000 USD | 2025 | verified |
| Assets | 11,179,000,000 USD | 2025 | verified |
| Free cash flow | 1,431,000,000 USD | 2025 | computed |
| Net margin | 18.27% | 2025 | computed |
| Operating margin | 24.79% | 2025 | computed |
| Revenue YoY | +11.06% | 2025 | computed |
| ROE | 28.17% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | HWM | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 18.3% | 3.3% | 96 | 26 |
| Operating margin | 24.8% | 5.9% | 100 | 20 |
| Revenue growth | 11.1% | 9.5% | 64 | 26 |
| FCF margin | 17.3% | 3.7% | 100 | 26 |
| ROE | 28.2% | 9.0% | 96 | 27 |
| ROA | 13.5% | 5.0% | 92 | 27 |
| Liabilities / equity | 1.09 | 0.85 | 58 | 27 |
| Current ratio | 2.13 | 2.30 | 46 | 27 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 33 SIC Major Group 33, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 8252000000 | USD | 2025 | 2026-02-12 |
| Net income | 1508000000 | USD | 2025 | 2026-02-12 |
| Assets | 11179000000 | USD | 2025 | 2026-02-12 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000004281.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2009 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  | 12,394,000,000 | 12,960,000,000 | 6,778,000,000 | 7,098,000,000 | 5,259,000,000 | 4,972,000,000 | 5,663,000,000 | 6,640,000,000 | 7,430,000,000 | 8,252,000,000 |
| Net income |  |  | -941,000,000 | -74,000,000 | 642,000,000 | 470,000,000 | 261,000,000 | 258,000,000 | 469,000,000 | 765,000,000 | 1,155,000,000 | 1,508,000,000 |
| Operating income |  |  | 954,000,000 | 480,000,000 | 775,000,000 | 579,000,000 | 626,000,000 | 748,000,000 | 919,000,000 | 1,203,000,000 | 1,633,000,000 | 2,046,000,000 |
| Diluted EPS |  | -0.93 | -2.31 | -0.28 | 1.30 | 1.03 |  | 0.59 | 1.11 | 1.83 | 2.81 | 3.71 |
| Operating cash flow |  |  | 95,000,000 | -39,000,000 | 217,000,000 | 461,000,000 | 9,000,000 | 449,000,000 | 733,000,000 | 901,000,000 | 1,298,000,000 | 1,884,000,000 |
| Capital expenditures |  |  | 1,125,000,000 | 596,000,000 | 768,000,000 | 641,000,000 | 267,000,000 | 199,000,000 | 193,000,000 | 219,000,000 | 321,000,000 | 453,000,000 |
| Share buybacks | 0.00 |  |  | 0.00 | 0.00 | 1,150,000,000 | 73,000,000 | 430,000,000 | 400,000,000 | 250,000,000 | 500,000,000 | 700,000,000 |
| Assets |  |  | 20,038,000,000 | 18,718,000,000 | 18,693,000,000 | 17,562,000,000 | 11,443,000,000 | 10,219,000,000 | 10,255,000,000 | 10,428,000,000 | 10,519,000,000 | 11,179,000,000 |
| Liabilities |  |  | 14,897,000,000 | 13,794,000,000 | 13,108,000,000 | 12,957,000,000 | 7,866,000,000 | 6,711,000,000 | 6,654,000,000 | 6,391,000,000 | 5,965,000,000 | 5,826,000,000 |
| Stockholders' equity |  |  | 5,115,000,000 | 4,910,000,000 | 5,573,000,000 | 4,591,000,000 | 3,577,000,000 | 3,508,000,000 | 3,601,000,000 | 4,037,000,000 | 4,554,000,000 | 5,353,000,000 |
| Cash and cash equivalents |  |  | 1,863,000,000 | 2,150,000,000 | 2,277,000,000 | 1,577,000,000 | 1,610,000,000 | 720,000,000 | 791,000,000 | 610,000,000 | 564,000,000 | 742,000,000 |
| Free cash flow |  |  | -1,030,000,000 | -635,000,000 | -551,000,000 | -180,000,000 | -258,000,000 | 250,000,000 | 540,000,000 | 682,000,000 | 977,000,000 | 1,431,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2009 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  | -7.59% | -0.57% | 9.47% | 6.62% | 4.96% | 5.19% | 8.28% | 11.52% | 15.55% | 18.27% |
| Operating margin |  |  | 7.70% | 3.70% | 11.43% | 8.16% | 11.90% | 15.04% | 16.23% | 18.12% | 21.98% | 24.79% |
| Return on equity |  |  | -18.40% | -1.51% | 11.52% | 10.24% | 7.30% | 7.35% | 13.02% | 18.95% | 25.36% | 28.17% |
| Return on assets |  |  | -4.70% | -0.40% | 3.43% | 2.68% | 2.28% | 2.52% | 4.57% | 7.34% | 10.98% | 13.49% |
| Liabilities / equity |  |  | 2.91 | 2.81 | 2.35 | 2.82 | 2.20 | 1.91 | 1.85 | 1.58 | 1.31 | 1.09 |
| Current ratio |  |  | 2.14 | 2.26 | 1.87 | 1.42 | 2.21 | 2.18 | 2.12 | 1.86 | 2.17 | 2.13 |

## As-reported value updates

11 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/HWM/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000004281.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.19 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.35 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.46 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 1,658,000,000 | 188,000,000 | 0.45 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,731,000,000 | 236,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 1,824,000,000 | 243,000,000 | 0.59 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 1,880,000,000 | 266,000,000 | 0.65 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 1,835,000,000 | 332,000,000 | 0.81 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,891,000,000 | 314,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 1,942,000,000 | 344,000,000 | 0.84 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 2,053,000,000 | 407,000,000 | 1.00 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 2,089,000,000 | 385,000,000 | 0.95 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 2,168,000,000 | 372,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 2,313,000,000 | 580,000,000 | 1.44 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 2,547,000,000 | 534,000,000 | 1.33 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from HWM's latest 10-K: [/company/HWM/business/](/company/HWM/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from HWM's latest 10-K: [/company/HWM/risk-factors/](/company/HWM/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/4281/000000428126000025/hwm-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

(U.S. dollars in millions, except per share amounts)

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand our results of operations and financial condition. The MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and notes thereto included in Part I, Item 1 (Financial Statements and Supplementary Data) of this Form 10-Q.

Overview

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.

In the six months ended June 30, 2026, the Company derived approximately 68% of its revenue from products sold to the commercial and defense aerospace markets. The timing and level of future aircraft builds by original equipment manufacturers (“OEMs”) are subject to changes and uncertainties, including but not limited to geopolitical tensions or volatility in global energy and raw material markets, which may cause our future results to differ from prior periods due to changes in product mix in certain segments.

For additional information regarding the ongoing risks related to our business, see section Part I, Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Results of Operations

Earnings Summary:

Sales. Sales were $2,547 in the second quarter of 2026 compared to $2,053 in the second quarter of 2025, and $4,860 in the six months ended June 30, 2026 compared to $3,995 in the six months ended June 30, 2025. The increase of $494, or 24%, in the second quarter of 2026 and the increase of $865, or 22% in the six months ended June 30, 2026, was primarily due to growth in the commercial and defense aerospace and gas turbines markets, including engine spares, favorable product pricing, cost pass through, and sales from the Consolidated Aerospace Manufacturing, LLC (“CAM”) and Brunner Manufacturing Co. Inc. (“Brunner”) acquisitions from the dates they were acquired by the Company, partially offset by lower volumes in the commercial transportation market and the disk forging facility divestiture on March 31, 2026. Product price increases are in excess of material and inflationary cost pass through to our customers.

Cost of goods sold (“COGS”). COGS as a percentage of Sales was 62.7% in the second quarter of 2026 compared to 66.5% in the second quarter of 2025 and 62.9% in the six months ended June 30, 2026 compared to 66.5% in the six months ended June 30, 2025. The decrease in the second quarter and six months ended June 30, 2026 was primarily due to growth in the commercial and defense aerospace and gas turbines markets, favorable product pricing, partially offset by lower volumes in the commercial transportation market, higher cost pass through, and increased net headcount, primarily in the Engine Products segment, in support of expected revenue increases. Additionally, the decrease includes the impact of the acquisitions and divestiture completed this year, including amortization expense of inventory step-up recorded in accordance with the allocation of purchase price under accounting principles generally accepted in the United States of America (“GAAP”).

Selling, general administrative, and other expenses (“SG&A”). SG&A expenses were $148 in the second quarter of 2026 compared to $89 in the second quarter of 2025 and $259 in the six months ended June 30, 2026 compared to $174 in the six months ended June 30, 2025. The increase of $59, or 66%, in the second quarter of 2026 and the increase of $85, or 49%, in the six months ended June 30, 2026 was primarily due to higher employment costs, including incremental headcount from the acquisitions, acquisition and acquisition-related costs, and various other administrative expenses.

Provision for depreciation and amortization (“D&A”). The provision for D&A was $84 in the second quarter of 2026 compared to $69 in the second quarter of 2025 and $158 in the six months ended June 30, 2026 compared to $138 in the six months ended June 30, 2025. The increase of $15, or 22%, in the second quarter of 2026 and the increase of $20, or 14%, in the six months ended June 30, 2026 was primarily due to higher depreciation from additional capital investments in capacity expansions within the Engine Products segment, the CAM and Brunner acquisitions from the dates they were acquired by the Company, and amortization expense of inventory step-up recorded in accordance with the allocation of purchase price under GAAP.

27

Restructuring and other credits. Restructuring and other charges were less than $1 in the second quarter of 2026 compared to Restructuring and other charges of less than $1 in the second quarter of 2025. Restructuring and other credits were $93 in the six months ended June 30, 2026 compared to Restructuring and other credits of $4 in the six months ended June 30, 2025. Restructuring and other credits for the six months ended June 30, 2026 were primarily due to a gain on the sale of the Company’s disk forging facility in Savannah, Georgia within Engineered Structures of $93. Restructuring and other charges for the second quarter of 2025 were primarily due to a charge for layoff costs of $3, partially offset by a gain on the sale of assets at a previously closed facility in Forged Wheels of $2 and a reversal of $1 for a layoff reserve related to a prior period. Restructuring and other credits for the six months ended June 30, 2025 were primarily due to a gain on the sale of assets at a small U.K. manufacturing facility in Engineered Structures of $3, a gain on the sale of assets at a previously closed facility in Forged Wheels of $2, and a reversal of $2 for a layoff reserve related to a prior period, partially offset by a charge for layoff costs of $3.

See Note E to the Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for additional detail.

Interest expense, net. Interest expense, net was $51 in the second quarter of 2026 compared to $38 in the second quarter of 2025 and $94 in the six months ended June 30, 2026 compared to $77 in the six months ended June 30, 2025. The increase of $13, or 34%, in the second quarter of 2026 and $17, or 22%, in the six months ended June 30, 2026 was primarily due to the March 2026 issuance of $1,200 aggregate principal amount of notes that have interest rates ranging from 3.750% to 4.750% and the November 2025 issuance of $500 of 4.550% Notes due 2032, partially offset by the early prepayment of the JPY Term Loan Facility, the cross-currency swap that synthetically converted the 6.750% Bonds due 2028 into a lower fixed-interest-rate Japanese Yen liability, the early redemption of $625 of 5.900% Notes in December 2025, and prepayments of the USD Term Loan Facility during various periods in 2025. On an annual basis, the current year debt actions are expected to increase Interest expense, net by approximately $38.

See Note O to the Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for additional detail related to the Company’s debt.

Other expense, net. Other expense, net was $11 in the second quarter of 2026 compared to $14 in the second quarter of 2025 and $13 in the six months ended June 30, 2026 compared to $23 in the six months ended June 30, 2025. The decrease in expense of $3 in the second quarter of 2026 and $10 in the six months ended June 30, 2026 was primarily due to an increase in interest income resulting from additional cash on hand prior to the acquisition of CAM. Non-service related net periodic benefit costs related to defined benefit plans and other postretirement benefit plans are expected to increase by approximately $5 for the full year 2026 versus 2025.

See Note G to the Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for additional detail.

Provision for income taxes. The estimated annual effective tax rate, before discrete items, applied to ordinary income was 20.9% in the second quarter ended June 30, 2026 compared to 20.8% in the second quarter ended June 30, 2025. The tax rate including discrete items was 17.7% in the second quarter of 2026 compared to 13.2% in the second quarter of 2025. A discrete net tax benefit of $20 was recorded in the second quarter of 2026 compared to a discrete net tax benefit of $35 in the second quarter of 2025. The tax rate including discrete items was 17.9% in the six months ended June 30, 2026 and June 30, 2025. A discrete net tax benefit of $41 was recorded in the six months ended June 30, 2026 compared to a discrete net tax benefit of $26 recorded in the six months ended June 30, 2025. The 2026 estimated annual effective tax rate remains consistent with the 2025 rate.

See Note H to the Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for additional detail.

Net income. Net income was $534, or $1.33 per diluted share, in the second quarter of 2026 compared to $407, or $1.00 per diluted share, in the second quarter of 2025 and $1,114, or $2.77 per diluted share, in the six months ended June 30, 2026 compared to $751, or $1.84 per diluted share, in the six months ended June 30, 2025. The increase of $127 in the second quarter of 2026 and $363 in the six months ended June 30, 2026 was primarily due to growth in the commercial and defense aerospace and gas turbines markets, including engine spares, as well as favorable product pricing and the CAM and Brunner acquisitions, partially offset by lower volumes in the commercial transportation market.

28

Segment Information

The Company’s operations consist of four worldwide reportable segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. 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. (See Note D to the Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for a description of each segment).

The Company has aligned its operations consistent with how the Chief Executive Officer assesses operating performance and allocates capital.

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. The recast historical segment information is available in Exhibit 99.1 to the Company’s Current Report on Form 8-K dated May 28, 2026.

Engine Products

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/4281/000000428126000012/hwm-20251231.htm
Complete FY 2025 MD&A: /company/HWM/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-12
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

(dollars in millions, except share and per-share amounts)

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand our results of operations and financial condition. MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and notes thereto included in Part II, Item 8 (Financial Statements and Supplementary Data) of this Form 10-K.

Overview

Our Business

Howmet is a global leader in lightweight metals engineering and manufacturing. Howmet’s innovative, multi-material products, which may include nickel, titanium, aluminum, and cobalt, are used worldwide in the aerospace (commercial and defense), commercial transportation, gas turbines, and other markets.

Howmet is a global company operating in 19 countries. Based upon the country where the point of shipment occurred, North America and Europe generated 72% and 22%, respectively, of Howmet’s sales in 2025. In addition to the United States, Canada, and Mexico in North America and France, United Kingdom, Hungary, and Germany in Europe, Howmet has operating activities in numerous other countries and regions, including Japan and China. Governmental policies, laws and regulations, and other economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, affect the results of operations in countries with such activities.

Recent Developments

On December 22, 2025, Howmet Aerospace entered into a transaction with Stanley Black & Decker, pursuant to which the Company has agreed to purchase CAM, for a cash purchase price of approximately $1.8 billion, subject to customary adjustments. The Proposed CAM Acquisition is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals. On February 6, 2026, the Company acquired Brunner Manufacturing Co. Inc., a small privately-held manufacturer of high-quality fastener products in the U.S., for an all-cash purchase price. See “Business” in Part I, Item 1 and “Liquidity and Capital Resources” in Part II, Item 7 for more information.

Management Review of 2025 and Outlook

The Company derived approximately 70% of its revenue from products sold to the commercial and defense aerospace markets for the year ended December 31, 2025. The timing and level of future aircraft builds by original equipment manufacturers are subject to changes and uncertainties, which may cause our future results to differ from prior periods due to changes in product mix in certain segments.

In 2025, Sales increased 11% from 2024 primarily as a result of growth in the commercial aerospace, defense aerospace, and gas turbines markets, including engine spares, favorable product pricing, and cost pass through, partially offset by lower volumes in the commercial transportation market. Product price increases are in excess of material and inflationary cost pass through to our customers.

Income before income taxes increased 33% from 2024. Total Segment Adjusted EBITDA(1) increased 25% from 2024 primarily due to growth in the commercial aerospace, defense aerospace, and gas turbines markets, and favorable product pricing, partially offset by lower volumes in the commercial transportation market.

Management continued its focus on liquidity and cash flows as well as improving its operating performance through profitable revenue, efficient operations, and margin enhancement. Management has also continued its intensified focus on capital efficiency. Management’s focus and the related results enabled Howmet to end 2025 with a solid financial position.

The following financial information reflects certain key highlights of Howmet’s 2025 results:

•Sales of $8,252, an increase of 11% from 2024, driven by growth in the commercial aerospace, defense aerospace, and gas turbines markets, including engine spares, partially offset by lower volumes in the commercial transportation market;

•Net income of $1,508, an increase of 31%, or $3.71 per diluted share, an increase of 32%, from 2024;

•Income before income taxes of $1,840, an increase of $457, or 33%, from 2024;

•Total Segment Adjusted EBITDA(1) of $2,507, an increase of $498, or 25%, from 2024;

•Cash on hand and restricted cash at the end of the year of $743;

•Cash provided from operations of $1,884; cash used for financing activities of $1,269; and cash used for investing activities of $438;

21

Table of Contents

•Repurchased the Company’s common stock of approximately 4.4 million shares under the Share Repurchase Program for approximately $700;

•Total debt of $3,050, a net decrease of $265 from 2024, reflecting the early redemption of the 5.900% Notes due February 2027 (the “2027 Notes”) of $625 and the early prepayment of its USD Term Loan Facility during various periods in 2025 of $140, partially offset by the November 2025 issuance of $500 aggregate principal amount of the 4.550% Notes due 2032 (the “2032 Notes”); and

•The Company’s common stock had a closing price of $205.02 per share as of December 31, 2025, an increase of $191.82 per share, or 1453%, since the Arconic Inc. Separation Transaction on April 1, 2020, compared to an increase of 177% for the S&P 500® Index and 178% for the S&P 500® Aerospace & Defense Index over the same period.

(1)See below in Results of Operations for the reconciliation of Total Segment Adjusted EBITDA to Income before income taxes.

In 2026, management projects sales to increase as we expect solid growth in the commercial aerospace, defense aerospace, and gas turbines markets, and the Company’s strong position in those markets is expected to continue, including engine spares. Earnings per share is expected to grow as management continues to focus on revenue growth and operational performance. Cash provided from operations is expected to increase for the full year in 2026 compared with 2025, resulting from a continued focus on operating performance. Capital expenditures are expected to remain elevated with additional investments in capacity expansions to support aerospace and gas turbines market growth and share gains. Governmental policies, laws and regulations, and other economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow.

Results of Operations

Earnings Summary

Sales. Sales for 2025 were $8,252 compared with $7,430 in 2024, an increase of $822, or 11%. The increase was primarily due to growth in the commercial aerospace, defense aerospace, and gas turbines markets, including engine spares, favorable product pricing, and cost pass through, partially offset by lower volumes in the commercial transportation market. Product price increases are in excess of material and inflationary cost pass through to our customers.

Sales for 2024 were $7,430 compared with $6,640 in 2023, an increase of $790, or 12%. The increase was primarily due to higher sales in the commercial aerospace, defense aerospace, and gas turbines markets, including engine spares, and favorable product pricing, partially offset by lower volumes in the commercial transportation market. Product price increases are in excess of inflationary cost pass through to our customers.

Cost of goods sold (“COGS”). COGS as a percentage of Sales was 65.8% in 2025 compared with 68.9% in 2024. The decrease was primarily due to higher volumes, favorable product pricing and productivity gains, partially offset by increased net headcount, primarily in the Engine Products segment, in support of expected revenue increases. The Company had no COGS net reimbursements in 2025 compared to total COGS net reimbursements of $18 in 2024 due to the final settlement of the insurance claim related to a mechanical failure that occurred in 2022 resulting in substantial heat and fire-related damage to equipment at the Forged Wheels’ cast house in Barberton, Ohio (the “Barberton Cast House Incident”) in the second quarter of 2024 and the final settlement of the insurance claim related to the fires that occurred in 2019 at a Fastening Systems plant in France (the “France Plant Fire”) in the fourth quarter of 2024.

COGS as a percentage of Sales was 68.9% in 2024 compared with 71.9% in 2023. The decrease was primarily due to higher volumes and favorable product pricing, partially offset by increased net headcount, primarily in the Engine Products segment, in support of expected revenue increases. The Company had total COGS net reimbursements of $18 in 2024 due to the final settlement of the Barberton Cast House Incident in the second quarter of 2024 and the final settlement of the insurance claim related to the France Plant Fire in the fourth quarter of 2024, compared to total COGS insurance claims reimbursements of $19 in 2023, partially offset by charges of $7 in 2023, related to the France Plant Fire and Barberton Cast House Incident. All cash related to the completed insurance claims for the Barberton Cast House Incident and the France Plant Fire were collected as of January 2025.

Selling, general administrative, and other expenses (“SG&A”). SG&A expenses were $370, or 4.5% of Sales, in 2025 compared with $347, or 4.7% of Sales, in 2024. The increase in SG&A of $23, or 7%, was primarily due to higher employment costs, other administrative expenses, and acquisition costs.

SG&A expenses were $347, or 4.7% of Sales, in 2024 compared with $333, or 5.0% of Sales, in 2023. The increase in SG&A of $14, or 4%, was primarily due to higher employment costs.

22

Table of Contents

Research and development expenses (“R&D”). R&D expenses were $37 in 2025 compared with $33 in 2024. The increase of $4, or 12%, was primarily due to an increase in spending on technology projects related to the aerospace and gas turbines markets.

R&D expenses were $33 in 2024 compared with $36 in 2023. The decrease of $3, or 8%, was primarily due to the timing of spending on technology projects.

Provision for depreciation and amortization (“D&A”). The provision for D&A was $283 in 2025 compared with $277 in 2024. The increase of $6, or 2%, was primarily driven by higher depreciation from additional capital investments in capacity expansions within the Engine Products segment.

The provision for D&A was $277 in 2024 compared with $272 in 2023. The increase of $5, or 2%, was primarily driven by the disposal of unused assets in the Engine Products segment.

Restructuring and other charges. Restructuring and other charges were $84 in 2025 compared with $21 in 2024 and $23 in 2023.

Restructuring and other charges in 2025 consisted primarily of $89 charges for U.K. pension plan settlement accounting and a $3 charge for layoff costs partially offset by $5 in gains on the sales of assets at two small previously closed facilities.

Restructuring and other charges in 2024 consisted primarily of a $13 net loss on the sale of a small U.K. manufacturing facility in Engineered Structures and a $10 charge for layoff costs.

Restructuring and other charges in 2023 consisted primarily of a $12 charge for impairment of assets primarily related to decommissioned fixed assets in Engineered Structures, a $5 charge for U.S. and Canadian pension plans’ settlement accounting, a $3 charge for layoff costs, a $3 charge for various other exit related costs primarily for the closures of small manufacturing facilities, and a $2 charge for accelerated depreciation primarily related to the closure of a small Engineered Structures facility in the U.K.

The Company has closed or sold some small manufacturing facilities and may, in the future, close or sell additional small facilities in order to consolidate operations, reduce fixed costs, and exit les

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/HWM/mda/fy2025/
All MD&A years: /company/HWM/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/HWM/mda/fy2024/): filed 2025-02-14; accession 0000004281-25-000011 (https://www.sec.gov/Archives/edgar/data/4281/000000428125000011/hwm-20241231.htm)
- [FY 2023 MD&A](/company/HWM/mda/fy2023/): filed 2024-02-13; accession 0000004281-24-000007 (https://www.sec.gov/Archives/edgar/data/4281/000000428124000007/hwm-20231231.htm)
- [FY 2022 MD&A](/company/HWM/mda/fy2022/): filed 2023-02-14; accession 0000004281-23-000004 (https://www.sec.gov/Archives/edgar/data/4281/000000428123000004/hwm-20221231.htm)
- [FY 2021 MD&A](/company/HWM/mda/fy2021/): filed 2022-02-14; accession 0000004281-22-000004 (https://www.sec.gov/Archives/edgar/data/4281/000000428122000004/hwm-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3350 Rolling Drawing & Extruding of  Nonferrous Metals) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/HWM.md · JSON record: /company/HWM.json · verified financials: /company/HWM/financials.json / /company/HWM/financials.csv · machine TOC for the whole site: /llms.txt