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Segment and Geographic Area Information
 12 Months Ended
Dec. 31, 2025
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 may include nickel, titanium, aluminum, and cobalt, are used worldwide in the aerospace (commercial and defense), commercial transportation, gas turbines, 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, forming and machining services for airframe, wing, aero-engine, and landing gear components. Engineered Structures also produces aluminum forgings, nickel forgings, and aluminum machined components and assemblies for aerospace and defense applications.
Forged Wheels
Forged Wheels provides forged aluminum wheels and related products for heavy-duty trucks and the commercial transportation market.
The operating results and assets of the Company's reportable segments were as follows:
Year endedEngine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
2025
Sales:
Third-party sales$4,320 $1,745 $1,148 $1,039 $8,252 
Inter-segment sales7 1 9 — 17 
Total sales$4,327 $1,746 $1,157 $1,039 $8,269 
Expenses:
Segment Adjusted cost of goods sold(1)
$2,776 $1,098 $880 $700 $5,454 
  Other segment items(2)
113 118 34 43 308 
Profit and loss:
Segment Adjusted EBITDA$1,438 $530 $243 $296 $2,507 
Restructuring and other charges (credits)88 — (4)(1)83 
Provision for depreciation and amortization146 48 41 42 277 
Other:
Capital expenditures$319 $52 $33 $36 $440 
Total assets5,626 2,761 1,330 691 10,408 
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 
(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 in the Statement of Consolidated Cash Flows.
For the year ended December 31,202520242023
Total segment capital expenditures$440 $310 $205 
Corporate13 11 14 
Capital expenditures$453 $321 $219 
The following tables reconcile certain segment information to consolidated totals.
For the year ended December 31,202520242023
Total Segment Adjusted EBITDA$2,507 $2,009 $1,587 
Segment provision for depreciation and amortization(277)(270)(262)
Unallocated amounts:
Restructuring and other charges (D)
(84)(21)(23)
Corporate expense(1)
(100)(85)(99)
Operating income$2,046 $1,633 $1,203 
Loss on debt redemption(15)(6)(2)
Interest expense, net(151)(182)(218)
Other expense, net (F)
(40)(62)(8)
Income before income taxes$1,840 $1,383 $975 
(1)    Corporate expense includes selling, general administrative and other expenses, costs of corporate headquarters, plant fire reimbursements, acquisition costs, costs associated with closures, supply chain disruptions, and other items.
December 31,20252024
Assets:
Total segment assets$10,408 $9,912 
Unallocated amounts:
Cash and cash equivalents742 564 
Deferred income taxes40 36 
Corporate fixed assets, net77 83 
Accounts receivable securitization(250)(250)
Other162 174 
Consolidated assets$11,179 $10,519 
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 31,202520242023
Sales:
United States$4,377 $3,713 $3,273 
France625 678 578 
Japan513 355 378 
Germany439 458 363 
United Kingdom376 350 283 
Italy264 287 220 
Canada187 174 145 
Mexico166 220 263 
Poland150 152 130 
China130 103 98 
Other1,025 940 909 
$8,252 $7,430 $6,640 
Geographic information for long-lived tangible assets was as follows (based upon the physical location of the assets):
December 31,20252024
Long-lived assets:
United States$1,986 $1,864 
Hungary218 199 
United Kingdom153 121 
France130 112 
Mexico63 68 
Germany62 54 
Japan48 29 
Other95 94 
 $2,755 $2,541 
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, 2025
Aerospace - Commercial$2,355 $1,202 $765 $— $4,322 
Aerospace - Defense 900 176 333 — 1,409 
Commercial Transportation— 209 — 1,039 1,248 
Gas Turbines944 — — — 944 
Other121 158 50 — 329 
Total end-market revenue$4,320 $1,745 $1,148 $1,039 $8,252 
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 
Gas Turbines755 — — — 755 
Other123 154 55 — 332 
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 
Gas Turbines674 — — — 674 
Other124 131 65 — 320 
Total end-market revenue$3,266 $1,349 $878 $1,147 $6,640 
The Company derived approximately 70%, 68%, and 64% of its revenue from the aerospace (commercial and defense) markets for the years ended December 31, 2025, 2024, and 2023, respectively.
RTX Corporation and GE Aerospace each represented approximately 11% of the Company’s third-party sales for the year ended December 31, 2025. These sales were primarily from the Engine Products segment.