Core Insights - Howmet (HWM) reported revenue of $2.05 billion for the quarter ended June 2025, marking a year-over-year increase of 9.2% and exceeding the Zacks Consensus Estimate by 3.24% [1] - The earnings per share (EPS) for the same period was $0.91, up from $0.67 a year ago, representing a surprise of 4.6% over the consensus estimate of $0.87 [1] Revenue Performance - Total Sales for Engine Products reached $1.06 billion, surpassing the average estimate of $1.04 billion, with a year-over-year change of +13.3% [4] - Total Sales for Forged Wheels was $276 million, exceeding the average estimate of $245.81 million, but showing a slight decline of -0.7% year-over-year [4] - Total Sales for Engineered Structures amounted to $293 million, slightly above the estimated $292.44 million, reflecting a +5.4% change compared to the previous year [4] - Total Sales for Fastening Systems was $431 million, compared to the average estimate of $420.33 million, indicating a year-over-year increase of +9.4% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Engine Products was $349 million, exceeding the average estimate of $336.08 million [4] - Adjusted EBITDA for Forged Wheels reached $76 million, surpassing the average estimate of $64.74 million [4] - Adjusted EBITDA for Engineered Structures was $62 million, slightly above the average estimate of $61.93 million [4] - Adjusted EBITDA for Fastening Systems was $126 million, which was below the average estimate of $129.03 million [4] Stock Performance - Howmet's shares have returned -0.7% over the past month, while the Zacks S&P 500 composite has increased by +2.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements and Supplementary Data](index=3&type=section&id=Item%201.%20Financial%20Statements%20and%20Supplementary%20Data) The company achieved significant financial growth in Q2 and H1 2025, driven by strong aerospace sales, increased net income, and improved cash from operations Consolidated Operations Highlights (Q2 & YTD 2025 vs 2024) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $2,053M | $1,880M | $3,995M | $3,704M | | **Operating Income** | $521M | $398M | $1,015M | $767M | | **Net Income** | $407M | $266M | $751M | $509M | | **Diluted EPS** | $1.00 | $0.65 | $1.84 | $1.23 | Consolidated Balance Sheet Summary (as of June 30, 2025) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,694M | $3,362M | | **Total Assets** | $11,046M | $10,519M | | **Total Current Liabilities** | $1,600M | $1,549M | | **Total Liabilities** | $6,004M | $5,965M | | **Total Equity** | $5,042M | $4,554M | Consolidated Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Cash from Operations** | $699M | $574M | | **Cash used for Financing** | ($506M) | ($301M) | | **Cash used for Investing** | ($212M) | ($129M) | | **Net Change in Cash** | ($19M) | $142M | [Note A: Basis of Presentation](index=9&type=section&id=A.%20Basis%20of%20Presentation) Financial statements adhere to GAAP, with aerospace markets contributing 69% of H1 2025 revenue, and future growth tied to OEM production rates and trade policies - In the first six months of 2025, approximately **69% of revenue** was derived from the commercial and defense aerospace markets[25](index=25&type=chunk) - The company anticipates continued growth in aerospace demand, supported by record aircraft backlogs and increasing production rates at Boeing and Airbus[25](index=25&type=chunk) - The FAA has capped Boeing's 737 MAX production rate increases at 38 aircraft per month until quality control procedures are deemed satisfactory, which could impact Howmet's financial performance[25](index=25&type=chunk) [Note C: Segment Information](index=10&type=section&id=C.%20Segment%20Information) The company's four segments generated $4.0 billion in sales and $1.19 billion in Adjusted EBITDA in H1 2025, with Engine Products leading and aerospace markets contributing 69% of revenue Segment Performance (Six Months Ended June 30, 2025) | Segment | Third-Party Sales | Segment Adjusted EBITDA | | :--- | :--- | :--- | | **Engine Products** | $2,052M | $674M | | **Fastening Systems** | $843M | $253M | | **Engineered Structures** | $572M | $122M | | **Forged Wheels** | $528M | $144M | | **Total Segment** | **$3,995M** | **$1,193M** | Revenue by End Market (Six Months Ended June 30, 2025) | End Market | Revenue | | :--- | :--- | | **Aerospace - Commercial** | $2,076M | | **Aerospace - Defense** | $685M | | **Commercial Transportation** | $637M | | **Industrial and Other** | $597M | - RTX Corporation and GE Aerospace were the company's largest customers, representing approximately **11% and 10% of third-party sales**, respectively, for the first six months of 2025[42](index=42&type=chunk) [Note H: Earnings Per Share and Common Stock](index=16&type=section&id=H.%20Earnings%20Per%20Share%20and%20Common%20Stock) H1 2025 diluted EPS was $1.84, supported by $300 million in share repurchases and a doubled Q2 dividend, with $1.8 billion remaining for future repurchases Share Repurchases (YTD June 30) | Period | Shares Repurchased | Average Price | Total Cost | | :--- | :--- | :--- | :--- | | **2025** | 2,235,415 | $134.20 | $300M | | **2024** | 2,977,996 | $70.52 | $210M | - Common stock dividends declared and paid were **$0.10 per share in Q2 2025**, an increase from $0.05 per share in Q2 2024[63](index=63&type=chunk) - The share repurchase program has approximately **$1.8 billion in remaining authorization** as of July 31, 2025, following an additional $100 million repurchase in July 2025[61](index=61&type=chunk) [Note N: Debt](index=20&type=section&id=N.%20Debt) Total long-term debt decreased to $3.25 billion by June 30, 2025, supported by a $75 million prepayment and an undrawn $1 billion revolving credit facility Total Long-Term Debt | Date | Amount | | :--- | :--- | | **June 30, 2025** | $3,253M | | **December 31, 2024** | $3,309M | - On June 11, 2025, the company completed an early partial prepayment of its USD Term Loan Facility in the amount of **$75 million**[76](index=76&type=chunk) - The company has a **$1 billion senior unsecured revolving credit facility** maturing in 2028, which was undrawn as of June 30, 2025[78](index=78&type=chunk)[79](index=79&type=chunk) [Note P: Contingencies, Commitments and Other Liabilities](index=22&type=section&id=P.%20Contingencies,%20Commitments%20and%20Other%20Liabilities) The company manages environmental remediation with a $16 million reserve, is indemnified for Grenfell Tower liabilities, and holds various financial commitments including $84 million in letters of credit - The company's environmental remediation reserve was **$16 million** as of June 30, 2025, down from $19 million at year-end 2024[88](index=88&type=chunk) - Howmet is indemnified by Arconic Corporation for all potential liabilities related to the Grenfell Tower fire, with personal injury claims settled but other legal proceedings ongoing[92](index=92&type=chunk)[93](index=93&type=chunk) - As of June 30, 2025, the company had outstanding letters of credit totaling **$84 million** and surety bonds of **$45 million**, primarily for workers' compensation, environmental, and tax matters[99](index=99&type=chunk)[101](index=101&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Strong H1 2025 performance, with Q2 sales up 9% and net income up 53%, was driven by aerospace growth, improved profitability, and strategic capital allocation, though commercial transportation demand is expected to decline - Q2 2025 sales increased **9% YoY to $2,053 million**, driven by growth in commercial aerospace, defense aerospace, and industrial markets, along with favorable pricing[110](index=110&type=chunk) - Cost of goods sold (COGS) as a percentage of sales decreased from 68.5% to **66.5% in Q2 2025 YoY**, attributed to higher volumes, favorable pricing, and productivity gains[111](index=111&type=chunk) - Interest expense decreased **22% in Q2 2025 YoY** due to early debt redemptions and prepayments[115](index=115&type=chunk) - The company anticipates its full-year 2025 effective tax rate before discrete items to be between **20.5% and 21.5%**[119](index=119&type=chunk) [Segment Performance Analysis](index=27&type=section&id=Segment%20Information%20(MD%26A)) Aerospace segments (Engine Products, Fastening Systems, Engineered Structures) demonstrated strong Q2 sales and EBITDA growth, while Forged Wheels faced a slight sales decline due to commercial transportation weakness Segment Performance Highlights (Q2 2025 vs Q2 2024) | Segment | Sales Growth | Adj. EBITDA Growth | Adj. EBITDA Margin 2025 | Adj. EBITDA Margin 2024 | | :--- | :--- | :--- | :--- | :--- | | **Engine Products** | +13% | +20% | 33.0% | 31.3% | | **Fastening Systems** | +9% | +25% | 29.2% | 25.6% | | **Engineered Structures** | +5% | +55% | 21.4% | 14.5% | | **Forged Wheels** | -1% | +1% | 27.5% | 27.0% | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with H1 2025 operating cash flow up 22% to $699 million, supported by investment-grade credit ratings and sufficient capital resources - Cash provided from operations increased by **$125 million (22%) to $699 million** in the first six months of 2025, primarily due to higher operating results[156](index=156&type=chunk) - Financing activities in the first half of 2025 included **$300 million in share repurchases**, **$83 million in dividends**, and **$77 million in debt repayments**[158](index=158&type=chunk)[17](index=17&type=chunk) Credit Ratings | Agency | Short-Term | Long-Term | Outlook | | :--- | :--- | :--- | :--- | | **S&P Global Ratings** | A-2 | BBB | Stable | | **Moody's** | P-2 | Baa1 | Stable | | **Fitch Ratings** | F1 | BBB+ | Stable | [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material quantitative or qualitative disclosures regarding market risk are reported for the current period [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO confirmed the effectiveness of disclosure controls and procedures as of June 30, 2025, with no material changes to internal control over financial reporting in Q2 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[172](index=172&type=chunk) - No changes in internal control over financial reporting occurred during Q2 2025 that materially affected, or are reasonably likely to materially affect, the company's internal controls[172](index=172&type=chunk) [Part II - Other Information](index=33&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Information concerning legal proceedings is detailed in Note P of the Consolidated Financial Statements - Details on legal proceedings are provided in Note P to the Consolidated Financial Statements[173](index=173&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K were reported - No material changes from the risk factors disclosed in the 2024 Form 10-K were reported[174](index=174&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased 1.23 million shares for $175 million, with approximately $1.8 billion remaining in the share repurchase authorization as of July 31, 2025 Common Stock Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | **April 2025** | 796,117 | $125.61 | | **May 2025** | 44,183 | $169.74 | | **June 2025** | 389,013 | $173.52 | | **Total for Q2** | **1,229,313** | **$142.36** | - The share repurchase program has approximately **$1,797 million in authorization remaining** as of July 31, 2025[175](index=175&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including a letter agreement, an amended cash incentive plan, Sarbanes-Oxley certifications, and Inline XBRL data files - Key exhibits filed include a Letter Agreement with John C. Plant, the Howmet Aerospace Inc. 2020 Annual Cash Incentive Plan, and Sarbanes-Oxley Act certifications (Sections 302 and 906)[177](index=177&type=chunk)

Key Takeaways HWM posted Q2 EPS of $0.91 on $2.05B revenues, up 36% and 9% year over year, beating the consensus estimate.Engine Products revenues jumped 13%, while EBITDA margin rose 300 bps to 28.7% on broad aerospace demand.HWM raised full-year revenue and EPS guidance, with free cash flow now projected up to $1.275B.Howmet Aerospace Inc.’s (HWM) second-quarter 2025 adjusted earnings of 91 cents per share beat the Zacks Consensus Estimate of 87 cents. The bottom line surged 36% year over year.Total reven ...

Financial Data and Key Metrics Changes - Revenue for the second quarter increased by 9% year over year, reaching $2,530,000,000, exceeding the high end of guidance [6][12] - EBITDA margins improved to 28.7%, up 300 basis points year over year, with EBITDA at $589,000,000 [7][12] - Earnings per share (EPS) rose by 36% year over year to $0.91 [8][12] - Free cash flow was strong at $344,000,000, enabling share repurchases and debt repayment [7][14] Business Segment Data and Key Metrics Changes - Engine products revenue increased by 13% to $1,056,000,000, with an EBITDA margin of 33% [17][18] - Forged Wheels segment maintained a strong EBITDA margin of 27.5%, despite a volume decline of 11% [8][22] - Fastening Systems revenue grew by 9% to $431,000,000, with an EBITDA margin of 29.2% [19] - Engineered Structures revenue increased by 5% to $290,000,000, with a significant EBITDA margin increase to 21.4% [20][21] Market Data and Key Metrics Changes - Commercial aerospace revenue grew by 8%, driven by demand for engine spares [10] - Defense aerospace revenue reached a record $352,000,000, up 21% [10] - Industrial and other markets saw a 17% increase, with oil and gas up 26% and IGT up 25% [11] - Commercial transportation revenue declined by 4% due to higher aluminum costs [10] Company Strategy and Development Direction - The company is focused on expanding capacity for turbine airfoils and IGT build-out during 2026 and 2027 [6] - Continued investment in capital expenditures, with approximately $220,000,000 invested in the first half of the year, primarily in the engines business [14] - The company anticipates strong growth in commercial aerospace and defense aerospace, with a cautious outlook on the commercial truck segment [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in free cash flow and announced a 20% increase in the quarterly dividend [7][17] - The company expects continued strength in commercial aerospace and defense markets, with a slight offset in commercial transportation [28] - Management highlighted the importance of maintaining healthy inventory levels and navigating potential destocking risks [99] Other Important Information - The company is reviewing new U.S. tax legislation related to R&D and CapEx expensing, expecting a modest free cash flow benefit in 2025 [22][23] - The company has a strong liquidity position with a cash balance of $546,000,000 and an undrawn revolver of $1,000,000,000 [15] Q&A Session Summary Question: Can you comment on the rationalization of products within structures? - Management indicated that most rationalization has already occurred, leading to improved margins and healthy revenue growth [34][36] Question: What is the timing of revenue contributions from engine expansions? - Management expects outputs from new plants to begin in the fourth quarter of the year, with significant contributions anticipated in 2026 and 2027 [46][48] Question: How does the defense business, particularly F-35, contribute to future growth? - Management noted that the spares business for F-35 is expected to exceed original equipment production, indicating strong future contributions [56][58] Question: What are the assumptions for production rates of key aircraft models? - Management provided updated assumptions for production rates, including an increase for the Boeing 737 MAX from 28 to 33 per month [65] Question: What is the outlook for pricing expectations next year? - Management expects consistent pricing increases, similar to previous years, as they renew long-term agreements [120] Question: Are there any concerns regarding inventory levels and destocking? - Management acknowledged the potential for destocking but emphasized that their underlying growth remains strong despite these challenges [98][100]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 9% year over year, reaching $2,530,000,000, exceeding guidance [5][11] - EBITDA margins improved to 28.7%, up 300 basis points year over year, with EBITDA at $589,000,000 [6][12] - Earnings per share (EPS) rose by 36% year over year to $0.91 [7][12] - Free cash flow was strong at $344,000,000, enabling share repurchases and debt repayment [6][12] Business Segment Data and Key Metrics Changes - Engine products revenue increased by 13% to $1,056,000,000, with EBITDA margin rising to 33% [17] - Fastening systems revenue grew by 9% to $431,000,000, with EBITDA margin at 29.2% [19] - Engineered structures revenue increased by 5% to $290,000,000, with EBITDA margin at 21.4% [20] - Forged wheels revenue decreased slightly, but EBITDA margin remained strong at 27.5% [21] Market Data and Key Metrics Changes - Commercial aerospace revenue grew by 8%, driven by demand for engine spares [9] - Defense aerospace revenue reached a record $352,000,000, up 21% [9] - Industrial and other markets saw a 17% increase, with oil and gas up 26% and IGT up 25% [10] - Commercial transportation revenue declined by 4% due to higher aluminum costs [9] Company Strategy and Development Direction - The company is focused on expanding capacity for turbine airfoils and IGT, with significant capital expenditures planned [5][13] - Continued investment in engine business is expected to drive future growth, particularly in commercial aerospace and IGT [13][30] - The company anticipates strong demand in commercial aerospace and defense sectors, with a cautious outlook on commercial transportation [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth in commercial aerospace and defense markets, supported by high backlogs and increasing production rates [24][25] - The company expects to maintain EBITDA margins above 28% and has raised full-year guidance for revenue and free cash flow [29][30] - Management remains vigilant regarding potential risks in the commercial truck market and ongoing inventory destocking in aerospace [81][96] Other Important Information - The company announced a 20% increase in quarterly dividends to $0.12 per share starting in August [6][12] - The balance sheet remains strong with a cash balance of $546,000,000 and a net debt to trailing EBITDA ratio of 1.3 times [14][12] Q&A Session Summary Question: Comments on product rationalization within structures - Management indicated that most rationalization has already occurred, leading to improved margins and healthy revenue growth [32][33] Question: Expectations for margins in structures for the second half - Management expects to maintain current margin levels, with a goal of EBITDA above 28% [34] Question: Update on engine expansions and profitability - Management detailed ongoing construction of new plants, with expected outputs in 2026 and 2027, and anticipates improved profitability as training costs decrease [43][47] Question: Contribution of F-35 in defense revenue - Management noted strong contributions from the F-35 program, with expectations for continued growth in spares business [53][55] Question: Inventory levels and destocking risks - Management acknowledged some destocking in the aerospace sector but indicated that overall growth remains positive [96] Question: Pricing expectations for the coming years - Management expects consistent pricing increases in line with previous years, maintaining a disciplined approach to long-term agreements [115] Question: Industrial policy and forging assets - Management confirmed the importance of their forging assets and indicated potential discussions with the DoD regarding upgrades [120] Question: Monitoring supply chain bottlenecks - Management highlighted the importance of engine production rates for narrow-body aircraft and the need for increased supply to meet demand [126]

Financial Performance Highlights - Q2 2025 revenue reached $2.053 billion, a 9% increase year-over-year (YoY), driven by an 8% increase in Commercial Aerospace and a 21% increase in Defense Aerospace[7, 15, 17] - Adjusted EBITDA for Q2 2025 was $589 million, up 22% YoY, with an Adjusted EBITDA Margin of 28.7%, an increase of approximately 300 basis points[7, 19] - Adjusted Earnings Per Share (EPS) for Q2 2025 was $0.91, a 36% increase YoY[7, 17] - The company reported a record Q2 Free Cash Flow of $344 million, with an ending cash balance of $546 million[10, 19] - For Q2 Year-to-Date (YTD) 2025, revenue was $3.995 billion, an 8% increase YoY, and Adjusted EBITDA was $1.149 billion, a 25% increase YoY[11] Balance Sheet and Capital Deployment - Net Debt-to-Last Twelve Months (LTM) EBITDA improved to a record low of 1.3x[10, 19] - The company repurchased $175 million of common stock in Q2 at an average price of approximately $142 per share and an additional $100 million in July at approximately $183 per share[10, 20] - The company paid down $76 million in debt, resulting in annualized interest expense savings of approximately $4 million[10, 19] - The quarterly common stock dividend was increased by 20% quarter-over-quarter (QoQ) to $0.12 per share for Q3 2025[10, 20] Guidance - The company expects full-year (FY) 2025 revenue to increase by approximately 9% YoY, Adjusted EBITDA to increase by approximately 21% YoY, and Adjusted EPS to increase by approximately 34% YoY[29, 30] - The company anticipates FY 2025 Free Cash Flow to be approximately $1.225 billion, a 25% increase YoY, with a Free Cash Flow Conversion of approximately 85% or higher[29, 30]

Howmet (HWM) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +4.60%. A quarter ago, it was expected that this maker of engineered products for the aerospace and other industries would post earnings of $0.77 per share when it actually produced earnings of $0.86, delivering a surprise ...

[Financial Performance and Outlook](index=1&type=section&id=Financial%20Performance%20and%20Outlook) This section details Howmet Aerospace's strong Q2 2025 financial results, strategic insights, segment performance, and updated full-year guidance [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Howmet Aerospace achieved record Q2 2025 results with $2.05 billion revenue, 9% YoY growth, and significant profit margin expansion Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $2.05B | $1.88B | +9% | | Net Income | $407M | $266M | +53% | | Earnings Per Share (Diluted) | $1.00 | $0.65 | +54% | | Adjusted EBITDA* | $589M | $483M | +22% | | Adjusted EBITDA Margin* | 28.7% | 25.7% | +300 bps | | Adjusted EPS* | $0.91 | $0.67 | +36% | | Free Cash Flow | $344M | N/A | N/A | *Excluding special items - Revenue growth was driven by strong performance across key markets: Commercial Aerospace (**+8%**), Defense Aerospace (**+21%**), and Industrial and Other (**+17%**), which was partially offset by a **4%** decline in the Commercial Transportation market[5](index=5&type=chunk) - The company generated **$446 million** in cash from operations and **$344 million** in free cash flow, marking the ninth consecutive quarter of positive free cash flow generation[3](index=3&type=chunk)[9](index=9&type=chunk) [Management Commentary and Strategic Actions](index=2&type=section&id=Management%20Commentary%20and%20Strategic%20Actions) Management highlighted strong Q2 performance, capital returns, and debt reduction, raising full-year guidance based on positive market outlook - The Board of Directors declared a **20% increase** in the quarterly common stock dividend to **$0.12 per share** for Q3 2025[9](index=9&type=chunk)[18](index=18&type=chunk) - The company repurchased **$175 million** of common stock in Q2 2025 and an additional **$100 million** in July, bringing year-to-date repurchases to **$400 million**[9](index=9&type=chunk)[10](index=10&type=chunk)[17](index=17&type=chunk) - Paid down **$76 million** of the USD Term Loan in Q2 2025, reducing annualized interest expense by approximately **$4 million**[9](index=9&type=chunk)[19](index=19&type=chunk) - Management sees a healthy outlook driven by robust demand in commercial aerospace (engine spares, new aircraft), defense aerospace, and industrial gas turbines for data centers, while the commercial transportation market remains weak[11](index=11&type=chunk) [Business Segment Performance](index=3&type=section&id=Second%20Quarter%202025%20Segment%20Performance) All segments contributed to strong performance, with Engine Products leading growth and margin expansion, while Forged Wheels improved margins despite flat revenue [Engine Products](index=3&type=section&id=Engine%20Products) Engine Products revenue grew 13% to $1.1 billion, with Adjusted EBITDA up 20% and margin expanding to 33.0% driven by aerospace and industrial markets Engine Products Q2 2025 Performance | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Revenue | $1.1B | +13% | | Segment Adjusted EBITDA | $349M | +20% | | Segment Adjusted EBITDA Margin | 33.0% | +170 bps | [Fastening Systems](index=3&type=section&id=Fastening%20Systems) Fastening Systems revenue increased 9% to $431 million, with Adjusted EBITDA up 25% and margin expanding to 29.2% due to aerospace growth and productivity Fastening Systems Q2 2025 Performance | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Revenue | $431M | +9% | | Segment Adjusted EBITDA | $126M | +25% | | Segment Adjusted EBITDA Margin | 29.2% | +360 bps | [Engineered Structures](index=4&type=section&id=Engineered%20Structures) Engineered Structures revenue grew 5% to $290 million, with Adjusted EBITDA surging 55% to $62 million and margin expanding to 21.4% driven by defense aerospace Engineered Structures Q2 2025 Performance | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Revenue | $290M | +5% | | Segment Adjusted EBITDA | $62M | +55% | | Segment Adjusted EBITDA Margin | 21.4% | +690 bps | [Forged Wheels](index=4&type=section&id=Forged%20Wheels) Forged Wheels revenue decreased 1% to $276 million, but Adjusted EBITDA increased 1% to $76 million, with margin improving to 27.5% due to cost reductions Forged Wheels Q2 2025 Performance | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Revenue | $276M | -1% | | Segment Adjusted EBITDA | $76M | +1% | | Segment Adjusted EBITDA Margin | 27.5% | +50 bps | [Full Year 2025 Guidance](index=1&type=section&id=2025%20Guidance) Howmet Aerospace raised its full-year 2025 guidance for revenue, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, reflecting strong performance and positive outlook Updated Full Year 2025 Guidance (Baseline) | Metric | New FY 2025 Guidance (Baseline) | Change from Prior Guidance | | :--- | :--- | :--- | | Revenue | $8.130B | +$100M | | Adj. EBITDA | $2.320B | +$70M | | Adj. EBITDA Margin | 28.5% | +50 bps | | Adj. Earnings per Share | $3.60 | +$0.20 | | Free Cash Flow | $1.225B | +$75M | Q3 2025 Guidance (Baseline) | Metric | Q3 2025 Guidance (Baseline) | | :--- | :--- | | Revenue | $2.030B | | Adj. EBITDA | $580M | | Adj. EBITDA Margin | 28.6% | | Adj. Earnings per Share | $0.90 | [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20%28unaudited%29) This section presents Howmet Aerospace's unaudited consolidated statements of operations, balance sheet, and cash flows for the reported periods [Statement of Consolidated Operations](index=8&type=section&id=Statement%20of%20Consolidated%20Operations%20%28unaudited%29) The unaudited statement of operations shows Q2 2025 sales of $2.053 billion, operating income of $521 million, and net income of $407 million Q2 2025 Statement of Operations Highlights (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $2,053 | $1,880 | | Operating income | $521 | $398 | | Income before income taxes | $469 | $334 | | Net income | $407 | $266 | | Diluted EPS | $1.00 | $0.65 | [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet%20%28unaudited%29) As of June 30, 2025, the balance sheet shows total assets of $11.046 billion, total liabilities of $6.004 billion, and total equity of $5.042 billion Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $545 | $564 | | Total current assets | $3,694 | $3,362 | | Total assets | $11,046 | $10,519 | | Long-term debt | $3,253 | $3,309 | | Total liabilities | $6,004 | $5,965 | | Total equity | $5,042 | $4,554 | [Statement of Consolidated Cash Flows](index=10&type=section&id=Statement%20of%20Consolidated%20Cash%20Flows%20%28unaudited%29) For the six months ended June 30, 2025, cash from operations was $699 million, with $506 million used in financing and $212 million in investing activities Cash Flow Highlights - Six Months Ended June 30 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Cash provided from operations | $699 | $574 | | Cash used for financing activities | ($506) | ($301) | | - Repurchases of common stock | ($300) | ($210) | | Cash used for investing activities | ($212) | ($129) | | - Capital expenditures | ($221) | ($137) | | Net change in cash | ($19) | $142 | [Non-GAAP Financial Measures and Reconciliations](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides reconciliations of non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, Operational Tax Rate, and Adjusted Operating Income, to their GAAP equivalents [Reconciliation of Net Income and Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20and%20Adjusted%20EBITDA) This section reconciles Q2 2025 GAAP Net Income to Adjusted Net Income and GAAP Operating Income to Adjusted EBITDA, detailing adjustments for special items Q2 2025 Reconciliation of Net Income to Adjusted Net Income (in millions) | Line Item | Amount | | :--- | :--- | | Net income (GAAP) | $407 | | After-tax special items | ($36) | | **Net income excluding Special items (Non-GAAP)** | **$371** | Q2 2025 Reconciliation to Adjusted EBITDA (in millions) | Line Item | Amount | | :--- | :--- | | Operating income (GAAP) | $521 | | Add: Depreciation & Amortization | $69 | | Add: Corporate Expense | $25 | | **Total Segment Adjusted EBITDA** | **$613** | | Less: Special Items | ($1) | | **Adjusted EBITDA excluding Special items (Non-GAAP)** | **$589** | [Reconciliation of Free Cash Flow](index=13&type=section&id=Reconciliation%20of%20Free%20cash%20flow) This section details the calculation of Free Cash Flow for Q2 2025, derived by subtracting capital expenditures from cash provided by operations Q2 2025 Free Cash Flow Calculation (in millions) | Line Item | Amount | | :--- | :--- | | Cash provided from operations | $446 | | Capital expenditures | ($102) | | **Free cash flow (Non-GAAP)** | **$344** | [Reconciliation of Operational Tax Rate](index=15&type=section&id=Reconciliation%20of%20Operational%20tax%20rate) This section reconciles the GAAP effective tax rate to the non-GAAP Operational Tax Rate for Q2 2025, adjusting for special tax items Q2 2025 Tax Rate Reconciliation | Metric | Rate | | :--- | :--- | | Effective tax rate, as reported (GAAP) | 13.2% | | **Operational tax rate, as adjusted (Non-GAAP)** | **20.7%** | - Tax special items for Q2 2025 included benefits from U.S. accounting method changes (**$17M**), excess benefit for stock compensation (**$13M**), and R&D credits (**$5M**)[43](index=43&type=chunk) [Reconciliation of Adjusted Operating Income](index=17&type=section&id=Reconciliation%20of%20Adjusted%20Operating%20Income%20Excluding%20Special%20Items) This section reconciles GAAP Operating Income to Adjusted Operating Income for Q2 2025, detailing adjustments for special items and margin improvement Q2 2025 Adjusted Operating Income Reconciliation (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating income (GAAP) | $521 | $398 | | Add/Subtract: Special Items | ($1) | $16 | | **Adjusted operating income (Non-GAAP)** | **$520** | **$414** | | **Adjusted operating income margin (Non-GAAP)** | **25.3%** | **22.0%** |

Record Revenue Up 9% Year Over Year, Record Profit, Strong Cash from Operations $175 Million Deployed for Common Stock Repurchases, $76 Million Debt Reduction Full Year 2025 Guidance1 Raised on All Metrics Second Quarter 2025 GAAP Financial Results Second Quarter 2025 Adjusted Financial Results 2025 Guidance | Q3 2025 Guidance | FY 2025 Guidance | | | | | | --- | --- | --- | --- | --- | --- | | Low | Low BaselineHigh | BaselineHigh | | | | | Revenue | $2.020B$2.030B$2.040B$8.080B$8.130B$8.180B | | | | | | A ...

PITTSBURGH, July 29, 2025 /PRNewswire/ -- The Board of Directors of Howmet Aerospace Inc. (NYSE: HWM) declared (a) a dividend of 12 cents per share on the outstanding Common Stock of the Company, to be paid on August 25, 2025 to the holders of record of the Common Stock at the close of business on August 8, 2025; and (b) a dividend of 93.75 cents per share on the outstanding $3.75 Cumulative Preferred Stock ("Class A Stock") of the Company, to be paid on October 1, 2025 to the holders of record of the Class ...