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Segment and Geographic Area Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographic Area Information Segment and Geographic Area 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 (“R&D”) expenses; and Provision for depreciation and amortization. Special items, including Restructuring and other charges, are excluded from net margin and Segment Adjusted EBITDA. The Company’s CODM considers forecast-to-actual variances for Segment Adjusted EBITDA when allocating resources across the Company’s reportable segments. Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Differences between the total segment and consolidated totals are in Corporate.
Howmet’s operations consist of four worldwide reportable segments as follows:
Engine Products
Engine Products produces investment castings, including airfoils, and seamless rolled rings primarily for aircraft engines and industrial gas turbine applications. Engine Products produces rotating parts as well as structural parts.
Fastening Systems
Fastening Systems produces aerospace fastening systems, as well as commercial transportation, industrial and other fasteners. The business’s high-tech, multi-material fastening systems are found nose to tail on aircraft and aero engines. Fastening Systems’ products are also critical components of commercial transportation vehicles, and construction, industrial, and renewable energy equipment.
Engineered Structures
Engineered Structures produces titanium ingots and mill products for aerospace and defense applications and is vertically integrated to produce titanium forgings, titanium extrusions, 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 and assets of the Company's reportable segments were as follows:
Year endedEngine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
2024
Sales:
Third-party sales$3,735 $1,576 $1,065 $1,054 $7,430 
Inter-segment sales7 1 10 — 18 
Total sales$3,742 $1,577 $1,075 $1,054 $7,448 
Expenses:
Segment Adjusted cost of goods sold(1)
$2,495 $1,061 $873 $724 $5,153 
   Other segment items(2)
97 110 36 43 286 
Profit and loss:
Segment Adjusted EBITDA$1,150 $406 $166 $287 $2,009 
Restructuring and other charges1 5 12 1 19 
Provision for depreciation and amortization139 47 42 42 270 
Other:
Capital expenditures$219 $26 $20 $45 $310 
Total assets5,145 2,711 1,355 701 9,912 
2023
Sales:
Third-party sales$3,266 $1,349 $878 $1,147 $6,640 
Inter-segment sales13 — 3 — 16 
Total sales$3,279 $1,349 $881 $1,147 $6,656 
Expenses:
Segment Adjusted cost of goods sold(1)
$2,295 $959 $720 $796 $4,770 
   Other segment items(2)
97 112 48 42 299 
Profit and loss:
Segment Adjusted EBITDA$887 $278 $113 $309 $1,587 
Restructuring and other (credits) charges(2)1 21 — 20 
Provision for depreciation and amortization130 46 47 39 262 
Other:
Capital expenditures$112 $31 $26 $36 $205 
Total assets4,926 2,749 1,415 724 9,814 
2022
Sales:
Third-party sales$2,698 $1,117 $790 $1,058 $5,663 
Inter-segment sales4 — 6 — 10 
Total sales$2,702 $1,117 $796 $1,058 $5,673 
Expenses:
Segment Adjusted cost of goods sold(1)
$1,881 $782 $644 $745 $4,052 
   Other segment items(2)
92 101 41 35 269 
Profit and loss:
Segment Adjusted EBITDA$729 $234 $111 $278 $1,352 
Restructuring and other charges29 8 7 2 46 
Provision for depreciation and amortization125 45 48 40 258 
Other:
Capital expenditures$94 $39 $17 $28 $178 
Total assets4,784 2,661 1,273 701 9,419 
(1)     Segment Adjusted cost of goods sold is exclusive of Provision for depreciation and amortization, Restructuring and other 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 charges.
The following table reconciles Total segment capital expenditures, which are presented on an accrual basis, with Capital expenditures as presented on the Statement of Consolidated Cash Flows. Differences between the total segment and consolidated totals are in Corporate, including the impact of changes in accrued capital expenditures during the period.
For the year ended December 31,202420232022
Total segment capital expenditures$310 $205 $178 
Corporate11 14 15 
Capital expenditures$321 $219 $193 
The following tables reconcile certain segment information to consolidated totals. Differences between the total segment and consolidated totals are in Corporate.
For the year ended December 31,202420232022
Total Segment Adjusted EBITDA$2,009 $1,587 $1,352 
Segment provision for depreciation and amortization(270)(262)(258)
Unallocated amounts:
Restructuring and other charges (D)
(21)(23)(56)
Corporate expense(85)(99)(119)
Operating income$1,633 $1,203 $919 
Loss on debt redemption(6)(2)(2)
Interest expense, net(182)(218)(229)
Other expense, net (F)
(62)(8)(82)
Income before income taxes$1,383 $975 $606 

December 31,20242023
Assets:
Total segment assets$9,912 $9,814 
Unallocated amounts:
Cash and cash equivalents564 610 
Deferred income taxes36 46 
Corporate fixed assets, net83 83 
Fair value of derivative contracts4 — 
Accounts receivable securitization(250)(250)
Other170 125 
Consolidated assets$10,519 $10,428 
Segment assets include third-party receivables while the accounts receivable securitization item includes the impact of sold receivables under the Company’s Accounts Receivable securitization programs. See Note L for further details.
Geographic information for sales was as follows (based upon the destination of the sale):
For the year ended December 31,202420232022
Sales:
United States$3,713 $3,273 $2,928 
France678 578 394 
Germany458 363 292 
Japan355 378 319 
United Kingdom350 283 228 
Italy287 220 180 
Mexico220 263 235 
Canada174 145 138 
Poland152 130 96 
China103 98 111 
Other940 909 742 
$7,430 $6,640 $5,663 
Geographic information for long-lived tangible assets was as follows (based upon the physical location of the assets):
December 31,20242023
Long-lived assets:
United States$1,864 $1,760 
Hungary199 200 
United Kingdom121 120 
France112 121 
Mexico68 71 
Germany54 58 
China41 46 
Other82 80 
 $2,541 $2,456 
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
Year ended December 31, 2024
Aerospace - Commercial$2,091 $1,006 $774 $— $3,871 
Aerospace - Defense 766 162 236 — 1,164 
Commercial Transportation— 254 — 1,054 1,308 
Industrial and Other878 154 55 — 1,087 
Total end-market revenue$3,735 $1,576 $1,065 $1,054 $7,430 
Year ended December 31, 2023
Aerospace - Commercial$1,798 $790 $641 $— $3,229 
Aerospace - Defense 670 173 172 — 1,015 
Commercial Transportation— 255 — 1,147 1,402 
Industrial and Other798 131 65 — 994 
Total end-market revenue$3,266 $1,349 $878 $1,147 $6,640 
Year ended December 31, 2022
Aerospace - Commercial$1,495 $616 $495 $— $2,606 
Aerospace - Defense 526 158 239 — 923 
Commercial Transportation— 225 — 1,058 1,283 
Industrial and Other677 118 56 — 851 
Total end-market revenue$2,698 $1,117 $790 $1,058 $5,663 
The Company derived 68%, 64%, and 62% of its revenue from the aerospace (commercial and defense) markets for the years ended December 31, 2024, 2023, and 2022, respectively.
On April 2, 2024, General Electric Company, one of our largest customers, completed the spin-off of its energy-focused business into GE Vernova, a new publicly traded company. Since then, General Electric Company operates as GE Aerospace. RTX Corporation and GE Aerospace each represented approximately 10% of the Company’s third-party sales for the year ended December 31, 2024. These sales were primarily from the Engine Products segment.