XML 21 R12.htm IDEA: XBRL DOCUMENT v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 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. 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 ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
Second quarter ended June 30, 2026
Sales:
Third-party sales$1,373 $589 $269 $316 $2,547 
Inter-segment sales3 — 8 — 11 
Total sales$1,376 $589 $277 $316 $2,558 
Expenses:
Segment Adjusted cost of goods sold(1)
$831 $373 $204 $216 $1,624 
Other segment items(2)
28 39 9 12 88 
Profit and loss:
Segment Adjusted EBITDA$517 $177 $64 $88 $846 
Provision for depreciation and amortization42 20 11 10 83 
Other:
Capital expenditures$77 $11 $8 $4 $100 
Second quarter ended June 30, 2025
Sales:
Third-party sales$1,038 $431 $308 $276 $2,053 
Inter-segment sales3 — 8 — 11 
Total sales$1,041 $431 $316 $276 $2,064 
Expenses:
Segment Adjusted cost of goods sold(1)
$671 $276 $239 $189 $1,375 
Other segment items(2)
27 29 9 11 76 
Profit and loss:
Segment Adjusted EBITDA$343 $126 $68 $76 $613 
Provision for depreciation and amortization35 12 10 10 67 
Restructuring and other charges (credits)— 1 — (1)— 
Other:
Capital expenditures$74 $9 $7 $8 $98 
Engine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
Six months ended June 30, 2026
Sales:
Third-party sales$2,626 $1,060 $563 $611 $4,860 
Inter-segment sales5 — 16 — 21 
Total sales$2,631 $1,060 $579 $611 $4,881 
Expenses:
Segment Adjusted cost of goods sold(1)
$1,596 $662 $430 $411 $3,099 
Other segment items(2)
60 71 19 22 172 
Profit and loss:
Segment Adjusted EBITDA$975 $327 $130 $178 $1,610 
Provision for depreciation and amortization80 33 21 21 155 
Restructuring and other credits— — (93)— (93)
Other:
Capital expenditures$136 $28 $20 $7 $191 
Total assets5,777 4,756 1,277 785 12,595 
Six months ended June 30, 2025
Sales:
Third-party sales$2,012 $843 $612 $528 $3,995 
Inter-segment sales5 — 15 — 20 
Total sales$2,017 $843 $627 $528 $4,015 
Expenses:
Segment Adjusted cost of goods sold(1)
$1,304 $532 $475 $363 $2,674 
Other segment items(2)
52 58 17 21 148 
Profit and loss:
Segment Adjusted EBITDA$661 $253 $135 $144 $1,193 
Provision for depreciation and amortization68 24 23 20 135 
Restructuring and other charges (credits)— 1 (4)(1)(4)
Other:
Capital expenditures$159 $19 $13 $23 $214 
Total assets5,512 2,787 1,374 748 $10,421 
(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.
Second quarter endedSix months ended
June 30,June 30,
2026202520262025
Total Segment Adjusted EBITDA$846 $613 $1,610 $1,193 
Segment provision for depreciation and amortization(83)(67)(155)(135)
Unallocated amounts:
Restructuring and other credits— — 93 4 
Corporate expense(1)
(52)(25)(84)(47)
Operating income$711 $521 $1,464 $1,015 
Interest expense, net(51)(38)(94)(77)
Other expense, net(11)(14)(13)(23)
Income before income taxes$649 $469 $1,357 $915 
(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.
Second quarter endedSix months ended
June 30,June 30,
2026202520262025
Total segment capital expenditures$100 $98 $191 $214 
Corporate4 4 7 7 
Capital expenditures$104 $102 $198 $221 
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
Second quarter ended June 30, 2026
Aerospace - Commercial$770 $412 $177 $— $1,359 
Aerospace - Defense 250 64 75 — 389 
Commercial Transportation— 56 — 316 372 
Gas Turbines321 — — — 321 
Other32 57 17 — 106 
Total end-market revenue$1,373 $589 $269 $316 $2,547 
Second quarter ended June 30, 2025
Aerospace - Commercial$562 $297 $201 $— $1,060 
Aerospace - Defense 214 44 94 — 352 
Commercial Transportation— 56 — 276 332 
Gas Turbines233 — — — 233 
Other29 34 13 — 76 
Total end-market revenue$1,038 $431 $308 $276 $2,053 
Six months ended June 30, 2026
Aerospace - Commercial$1,472 $734 $368 $— $2,574 
Aerospace - Defense 488 115 152 — 755 
Commercial Transportation— 107 — 611 718 
Gas Turbines605 — — — 605 
Other61 104 43 — 208 
Total end-market revenue$2,626 $1,060 $563 $611 $4,860 
Six months ended June 30, 2025
Aerospace - Commercial$1,097 $572 $407 $— $2,076 
Aerospace - Defense 425 86 174 — 685 
Commercial Transportation— 109 — 528 637 
Gas Turbines437 — — — 437 
Other53 76 31 — 160 
Total end-market revenue$2,012 $843 $612 $528 $3,995 
The Company derived 68% and 69% of its revenue from the aerospace (commercial and defense) markets for the six months ended June 30, 2026 and 2025, respectively.
GE Aerospace and RTX Corporation represented approximately 14% and 10%, respectively, of the Company’s third-party sales in the six months ended June 30, 2026. RTX Corporation and GE Aerospace represented approximately 11% and 10%, respectively, of the Company’s third-party sales in the six months ended June 30, 2025. These sales were primarily from the Engine Products segment.