Segment Information

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Segment Information

Segment Information

Howmet is a global leader in lightweight metals engineering and manufacturing. Howmet’s innovative, multi-material products, which include nickel, titanium, aluminum, and cobalt, are used worldwide in the aerospace (commercial and defense), commercial transportation, 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 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. Current and prior periods’ Segment Adjusted EBITDA calculations have not changed although the definitions have been simplified. 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.

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.

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 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 and aluminum machined components and assemblies for aerospace and defense applications.

Forged Wheels

Forged Wheels provides forged aluminum wheels and related products for heavy-duty trucks and the commercial transportation market.

The operating results of the Company’s reportable segments were as follows:

	Engine Products		Fastening Systems		Engineered Structures		Forged Wheels		Total Segment
First quarter ended March 31, 2026
Sales:
Third-party sales	$	1,253	$	471	$	294	$	295	$	2,313
Inter-segment sales	2		—		8		—		10
Total sales	$	1,255	$	471	$	302	$	295	$	2,323
Expenses:
Segment Adjusted cost of goods sold(1)	$	765	$	289	$	226	$	195	$	1,475
Other segment items(2)	32		32		10		10		84
Profit and loss:
Segment Adjusted EBITDA	$	458	$	150	$	66	$	90	$	764
Provision for depreciation and amortization	38		13		10		11		72
Restructuring and other credits	—		—		(93)		—		(93)
Other:
Capital expenditures	$	59	$	17	$	12	$	3	$	91
Total assets	5,698		2,902		1,300		723		10,623
First quarter ended March 31, 2025
Sales:
Third-party sales	$	974	$	412	$	304	$	252	$	1,942
Inter-segment sales	2		—		7		—		9
Total sales	$	976	$	412	$	311	$	252	$	1,951
Expenses:
Segment Adjusted cost of goods sold(1)	$	633	$	256	$	236	$	174	$	1,299
Other segment items(2)	25		29		8		10		72
Profit and loss:
Segment Adjusted EBITDA	$	318	$	127	$	67	$	68	$	580
Provision for depreciation and amortization	33		12		13		10		68
Restructuring and other credits	—		—		(4)		—		(4)
Other:
Capital expenditures	$	85	$	10	$	6	$	15	$	116
Total assets	5,279		2,741		1,469		728		10,217

(1)Segment Adjusted cost of goods sold is exclusive of Provision for depreciation and amortization, Restructuring and other credits, 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 credits.

The following table reconciles Total Segment Adjusted EBITDA to Income before income taxes. Differences between the total segment and consolidated totals are in Corporate.

	First quarter ended
	March 31,
	2026		2025
Total Segment Adjusted EBITDA	$	764	$	580
Segment provision for depreciation and amortization	(72)		(68)
Unallocated amounts:
Restructuring and other credits	93		4
Corporate expense(1)	(32)		(22)
Operating income	$	753	$	494
Interest expense, net	(43)		(39)
Other expense, net	(2)		(9)
Income before income taxes	$	708	$	446

(1)    Corporate expense includes selling, general administrative and other expenses, costs of corporate headquarters, acquisition and acquisition-related costs, costs associated with closures, supply chain disruptions, and other items.

The following table reconciles total segment capital expenditures with Capital expenditures as presented in the Statement of Consolidated Cash Flows.

	First quarter ended
	March 31,
	2026		2025
Total segment capital expenditures	$	91	$	116
Corporate	3		3
Capital expenditures	$	94	$	119

The following table disaggregates segment revenue by major market served. Differences between the total segment and consolidated totals are in Corporate.

	Engine Products		Fastening Systems		Engineered Structures		Forged Wheels		Total Segment
First quarter ended March 31, 2026
Aerospace - Commercial	$	702	$	322	$	191	$	—	$	1,215
Aerospace - Defense	238		51		77		—		366
Commercial Transportation	—		51		—		295		346
Gas Turbines	284		—		—		—		284
Other	29		47		26		—		102
Total end-market revenue	$	1,253	$	471	$	294	$	295	$	2,313
First quarter ended March 31, 2025
Aerospace - Commercial	$	535	$	275	$	206	$	—	$	1,016
Aerospace - Defense	211		42		80		—		333
Commercial Transportation	—		53		—		252		305
Gas Turbines	204		—		—		—		204
Other	24		42		18		—		84
Total end-market revenue	$	974	$	412	$	304	$	252	$	1,942

The Company derived 68% and 69% of its revenue from the aerospace (commercial and defense) markets for the first quarter ended March 31, 2026 and 2025, respectively.

GE Aerospace and RTX Corporation represented approximately 14% and 10%, respectively, of the Company’s third-party sales in the first quarter ended March 31, 2026. RTX Corporation and GE Aerospace and each represented approximately 11% and 10%, respectively, of the Company’s third-party sales in the first quarter ended March 31, 2025. These sales were primarily from the Engine Products segment.