Howmet Aerospace Reports Second Quarter 2025 Results
Howmet Aerospace (NYSE:HWM) reported strong Q2 2025 results with record revenue of $2.05 billion, up 9% year over year. The company achieved net income of $407 million, or $1.00 per share, compared to $266 million in Q2 2024.
Key financial highlights include Adjusted EBITDA of $589 million (up 22% YoY), Operating Income Margin of 25.4% (up 420 basis points), and free cash flow of $344 million. The company returned significant value to shareholders through $175 million in share repurchases and increased its quarterly dividend by 20% to $0.12 per share.
Growth was primarily driven by strong performance in commercial aerospace (+8%), defense aerospace (+21%), and industrial markets (+17%). The company raised its full-year 2025 guidance across all metrics, projecting revenue between $8.08-8.18 billion.
Howmet Aerospace (NYSE:HWM) ha riportato risultati solidi nel secondo trimestre 2025 con un fatturato record di 2,05 miliardi di dollari, in aumento del 9% rispetto all'anno precedente. La societ脿 ha raggiunto un utile netto di 407 milioni di dollari, pari a 1,00 dollaro per azione, rispetto ai 266 milioni nel secondo trimestre 2024.
I principali indicatori finanziari includono un EBITDA rettificato di 589 milioni di dollari (in crescita del 22% su base annua), un margine operativo del 25,4% (in aumento di 420 punti base) e un flusso di cassa libero di 344 milioni di dollari. La societ脿 ha restituito valore significativo agli azionisti attraverso 175 milioni di dollari in riacquisti di azioni e ha aumentato il dividendo trimestrale del 20%, portandolo a 0,12 dollari per azione.
La crescita 猫 stata principalmente trainata da una forte performance nei settori del aerospaziale commerciale (+8%), aerospaziale per la difesa (+21%) e mercati industriali (+17%). L鈥檃zienda ha rivisto al rialzo le previsioni per l鈥檌ntero anno 2025 su tutti i parametri, prevedendo un fatturato compreso tra 8,08 e 8,18 miliardi di dollari.
Howmet Aerospace (NYSE:HWM) report贸 s贸lidos resultados en el segundo trimestre de 2025 con ingresos r茅cord de 2.05 mil millones de d贸lares, un aumento del 9% interanual. La compa帽铆a alcanz贸 un ingreso neto de 407 millones de d贸lares, o 1.00 d贸lar por acci贸n, en comparaci贸n con 266 millones en el segundo trimestre de 2024.
Los aspectos financieros clave incluyen un EBITDA ajustado de 589 millones de d贸lares (un aumento del 22% interanual), un margen de ingreso operativo del 25.4% (un incremento de 420 puntos b谩sicos) y un flujo de caja libre de 344 millones de d贸lares. La empresa devolvi贸 un valor significativo a los accionistas mediante 175 millones de d贸lares en recompras de acciones y aument贸 su dividendo trimestral en un 20% a 0.12 d贸lares por acci贸n.
El crecimiento fue impulsado principalmente por el s贸lido desempe帽o en aeroespacial comercial (+8%), aeroespacial de defensa (+21%) y mercados industriales (+17%). La compa帽铆a elev贸 su gu铆a para todo el a帽o 2025 en todos los indicadores, proyectando ingresos entre 8.08 y 8.18 mil millones de d贸lares.
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靹膘灔鞚� 欤茧 靸侅梾鞖� 頃车鞖办＜ 攵�氍�(+8%), 氚╈渼 頃车鞖办＜ 攵�氍�(+21%), 攴鸽Μ瓿� 靷办梾 鞁滌灔(+17%)鞚� 臧曤牓頃� 靹标臣鞐� 鞚橅暣 瓴澑霅橃棃鞀惦媹雼�. 須岇偓電� 2025雲� 鞝勳泊 鞐瓣皠 臧�鞚措崢鞀るゼ 氇摖 歆�響滌棎靹� 靸來枼 臁办爼頄堨溂氅�, 毵れ稖鞎§潉 80鞏� 8觳滊 雼煬鞐愳劀 81鞏� 8觳滊 雼煬 靷澊搿� 鞝勲頃橁碃 鞛堨姷雼堧嫟.
Howmet Aerospace (NYSE:HWM) a annonc茅 de solides r茅sultats pour le deuxi猫me trimestre 2025 avec un chiffre d'affaires record de 2,05 milliards de dollars, en hausse de 9 % par rapport 脿 l'ann茅e pr茅c茅dente. La soci茅t茅 a r茅alis茅 un b茅n茅fice net de 407 millions de dollars, soit 1,00 dollar par action, contre 266 millions au deuxi猫me trimestre 2024.
Les principaux points financiers incluent un EBITDA ajust茅 de 589 millions de dollars (en hausse de 22 % sur un an), une marge d'exploitation de 25,4 % (en hausse de 420 points de base) et un flux de tr茅sorerie disponible de 344 millions de dollars. La soci茅t茅 a rendu une valeur significative aux actionnaires gr芒ce 脿 175 millions de dollars de rachats d'actions et a augment茅 son dividende trimestriel de 20 %, le portant 脿 0,12 dollar par action.
La croissance a 茅t茅 principalement port茅e par de solides performances dans les secteurs a茅rospatial commercial (+8%), a茅rospatial de d茅fense (+21%) et march茅s industriels (+17%). La soci茅t茅 a relev茅 ses pr茅visions pour l'ensemble de l'ann茅e 2025 sur tous les indicateurs, pr茅voyant un chiffre d'affaires compris entre 8,08 et 8,18 milliards de dollars.
Howmet Aerospace (NYSE:HWM) meldete starke Ergebnisse f眉r das zweite Quartal 2025 mit einem rekordverd盲chtigen Umsatz von 2,05 Milliarden US-Dollar, was einem Anstieg von 9 % gegen眉ber dem Vorjahr entspricht. Das Unternehmen erzielte einen Nettoertrag von 407 Millionen US-Dollar bzw. 1,00 US-Dollar je Aktie, verglichen mit 266 Millionen US-Dollar im zweiten Quartal 2024.
Zu den wichtigsten finanziellen Highlights z盲hlen ein bereinigtes EBITDA von 589 Millionen US-Dollar (plus 22 % im Jahresvergleich), eine Betriebsmargenquote von 25,4 % (plus 420 Basispunkte) und ein freier Cashflow von 344 Millionen US-Dollar. Das Unternehmen gab den Aktion盲ren durch Aktienr眉ckk盲ufe im Wert von 175 Millionen US-Dollar erheblichen Wert zur眉ck und erh枚hte seine Quartalsdividende um 20 % auf 0,12 US-Dollar je Aktie.
Das Wachstum wurde haupts盲chlich durch starke Leistungen im Bereich kommerzieller Luftfahrt (+8%), Verteidigungsluftfahrt (+21%) und industrielle M盲rkte (+17%) angetrieben. Das Unternehmen hat seine Prognose f眉r das Gesamtjahr 2025 in allen Kennzahlen nach oben korrigiert und erwartet einen Umsatz zwischen 8,08 und 8,18 Milliarden US-Dollar.
- None.
- Commercial transportation market declined 4% year over year
- Forged Wheels segment experienced 11% lower volumes
- Increased capital expenditures by 60% year over year in first half 2025
Insights
Howmet's Q2 delivers record results with impressive margin expansion and raised guidance across all metrics, demonstrating exceptional execution.
Howmet Aerospace's Q2 results showcase exceptional operational execution with record quarterly revenue of $2.05 billion, up 9% year-over-year, and impressive margin expansion. The 300-basis-point improvement in Adjusted EBITDA margin to 28.7% highlights management's ability to translate revenue growth into enhanced profitability.
The performance was primarily driven by robust growth in commercial aerospace (up 8%), defense aerospace (up 21%), and industrial markets (up 17%), effectively offsetting the 4% decline in commercial transportation. Engine Products was the standout segment with 13% revenue growth and a 33% EBITDA margin, reflecting strong demand for engine spares across markets.
Notably, Engineered Structures demonstrated remarkable margin improvement, with EBITDA margin expanding 690 basis points to 21.4%, benefiting from defense aerospace growth and productivity initiatives. The Forged Wheels segment showed resilience despite volume challenges, maintaining healthy 27.5% margins through effective cost management.
Cash flow generation remains exceptional with $344 million in free cash flow, enabling significant shareholder returns via $175 million in share repurchases, a 20% dividend increase to $0.12 per share, and $76 million in debt reduction. The company has strengthened its balance sheet while simultaneously investing in growth, with capital expenditures up approximately 60% in H1.
Management's decision to raise full-year guidance across all metrics reflects confidence in continued momentum, particularly in commercial aerospace, defense, and data center-driven industrial gas turbine demand. The improved outlook specifically includes increases of $100 million in revenue, $70 million in Adjusted EBITDA, $0.20 in EPS, and $75 million in free cash flow from previous guidance.
Record Revenue Up
Full Year 2025 Guidance1 Raised on All Metrics
Second Quarter 2025 GAAP Financial Results
- Revenue of
$2.05 billion 9% year over year, driven by Commercial Aerospace, up8% - Operating Income Margin of
25.4% , up 420 basis points year over year - Net Income of
$407 million $266 million $1.00 $0.65 - Generated
$446 million $339 million $97 million - Share repurchases of
$175 million $0.10
Second Quarter 2025 Adjusted Financial Results
- Adjusted EBITDA excluding special items of
$589 million 22% year over year - Adjusted EBITDA margin excluding special items of
28.7% , up 300 basis points year over year - Adjusted Operating Income Margin excluding special items of
25.3% , up 330 basis points year over year - Adjusted Earnings Per Share excluding special items of
$0.91 36% year over year - Generated
$344 million
2025 Guidance
Q3 2025 Guidance | FY 2025 Guidance | ||||||
Low | Baseline | High | Low | Baseline | High | ||
Revenue | |||||||
Adj. EBITDA*1 | |||||||
Adj. EBITDA Margin*1 | 28.5听% | 28.6听% | 28.7听% | 28.5听% | 28.5听% | 28.6听% | |
Adj. Earnings per Share*1 | |||||||
Free Cash Flow1 | |||||||
_____________________________ |
* Excluding special items |
1 Reconciliations of the forward-looking non-GAAP measures to the most directly comparable GAAP measures, as well as the directly comparable GAAP measures, are not available without unreasonable efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP measures 鈥� for further detail, see "2025 Guidance" below. |
Key Announcements听
- Repurchased
$175 million $142.36 - Repurchased an additional
$100 million $182.90 - Increased the third quarter dividend by
20% to$0.12 - Paid down
$76 million $4 million - Full Year 2025 Guidance raised on all metrics above the second quarter 2025 outperformance
Howmet Aerospace reported Net Income of
Second quarter 2025 Operating Income was
Second quarter 2025 Adjusted EBITDA excluding special items was
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, "The Howmet team delivered another strong set of results in the second quarter 2025, exceeding the high end of guidance on all metrics. Howmet achieved a quarterly record in revenue, surpassing the
Mr. Plant continued, "Howmet continues to invest in growth backed by customer contracts, with capital expenditures up approximately
"Turning to the outlook, the commercial aerospace market should continue to grow, driven by healthy passenger traffic, extraordinarily high OEM backlogs and the desire for new, fuel-efficient aircraft. We acknowledge positive signs for narrow body build rate increases, particularly on the Boeing 737MAX. Demand for engine spares also remains robust across all markets. The defense aerospace market continues to show strength that should carry through 2025. Additionally, demand for industrial gas turbines fueled by significant data center expansion should remain strong for the balance of the year. The commercial transportation market remains weak. Taking these factors into account, the overall picture appears healthy, and we are increasing our full year 2025 guidance on all metrics." 听
________________________ |
* Excluding special items |
Second Quarter 2025 Segment Performance
Engine Products | 2Q24 | 3Q24 | 4Q24 | 1Q25 | 2Q25 |
(in | |||||
Third-party sales | |||||
Inter-segment sales | |||||
Provision for depreciation and amortization | |||||
Segment Adjusted EBITDA | |||||
Segment Adjusted EBITDA Margin | 31.3听% | 32.5听% | 31.1听% | 32.6听% | 33.0听% |
Restructuring and other (credits) charges | $ 鈥� | $ 鈥� | |||
Capital expenditures |
Engine Products reported second quarter 2025 revenue of
Fastening Systems | 2Q24 | 3Q24 | 4Q24 | 1Q25 | 2Q25 |
(in | |||||
Third-party sales | |||||
Inter-segment sales | $听 鈥� | $听 鈥� | $听听听 1 | $听听听 鈥� | $听 鈥� |
Provision for depreciation and amortization | $听 13 | $听 12 | $听 11 | $听 12 | |
Segment Adjusted EBITDA | |||||
Segment Adjusted EBITDA Margin | 25.6听% | 26.0听% | 27.7听% | 30.8听% | 29.2听% |
Restructuring and other charges | $听 鈥� | ||||
Capital expenditures |
Fastening Systems reported revenue of
Engineered Structures | 2Q24 | 3Q24 | 4Q24 | 1Q25 | 2Q25 |
(in | |||||
Third-party sales | |||||
Inter-segment sales | |||||
Provision for depreciation and amortization | |||||
Segment Adjusted EBITDA | |||||
Segment Adjusted EBITDA Margin | 14.5听% | 15.0听% | 18.5听% | 21.3听% | 21.4听% |
Restructuring and other charges (credits) | $听 鈥� | ||||
Capital expenditures | $听 5 | $听 5 | $听 4 | $听 5 |
Engineered Structures reported revenue of
Forged Wheels | 2Q24 | 3Q24 | 4Q24 | 1Q25 | 2Q25 |
(in | |||||
Third-party sales | |||||
Provision for depreciation and amortization | |||||
Segment Adjusted EBITDA | |||||
Segment Adjusted EBITDA Margin | 27.0听% | 26.1听% | 27.2听% | 27.0听% | 27.5听% |
Restructuring and other charges (credits) | $ 鈥� | $ 鈥� | $ 鈥� | ||
Capital expenditures | $听听 9 |
Forged Wheels reported revenue of
Repurchased
In the second quarter 2025, Howmet Aerospace repurchased
Quarterly Common Stock Dividend Increases
On July 29, 2025, the Board of Directors declared a dividend of
Paid Down
In the second quarter 2025, the Company paid down
2025 Guidance
Q3 2025 Guidance | FY 2025 Guidance | ||||||
Low | Baseline | High | Low | Baseline | High | ||
Revenue | |||||||
Baseline Change | |||||||
Adj. EBITDA*1 | |||||||
Adj. EBITDA Margin*1 | 28.5听% | 28.6听% | 28.7听% | 28.5听% | 28.5听% | 28.6听% | |
Baseline Change Baseline Change | + 50 bps | ||||||
Adj. Earnings per Share*1 | |||||||
Baseline Change | |||||||
Free Cash Flow1 | |||||||
Baseline Change | |||||||
*听 Excluding Special Items |
1听 Reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as the directly comparable GAAP measures, are not available without unreasonable efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP measures, such as gains or losses on sales of assets, taxes, and any future restructuring or impairment charges. In addition, there is inherent variability already included in the GAAP measures, including, but not limited to, price/mix and volume. Howmet Aerospace believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. |
Howmet Aerospace will hold its quarterly conference call at 11:00 AM Eastern Time on Thursday, July 31, 2025.听 The call will be webcast via .听 The press release and presentation materials will be available at approximately 7:00 AM ET on July 31, via the "Investors" section of the Howmet Aerospace website.听
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at .听
Forward-Looking Statements
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "anticipates", "believes", "could", "envisions", "estimates", "expects", "forecasts", "goal", "guidance", "intends", "may", "outlook", "plans", "poised", "projects", "seeks", "sees", "should", "targets", "will", "would", or other words of similar meaning. All statements that reflect听Howmet Aerospace's expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the condition of markets; future financial results or operating performance; future strategic actions; Howmet Aerospace's strategies, outlook, and business and financial prospects; and any future dividends, debt issuances, debt reduction and repurchases of its common stock. These statements reflect beliefs and assumptions that are based on Howmet Aerospace's perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: (a) deterioration in global economic and financial market conditions generally, or unfavorable changes in the markets served by Howmet Aerospace, including due to escalating tariff and other trade policies and the resulting impacts on Howmet Aerospace's supply and distribution chains, as well as on market volatility and global trade generally; (b) the impact of potential cyber attacks and information technology or data security breaches; (c) the loss of significant customers or adverse changes in customers' business or financial conditions; (d) manufacturing difficulties or other issues that impact product performance, quality or safety; (e) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (f) failure to attract and retain a qualified workforce and key personnel, labor disputes or other employee relations issues; (g) the inability to achieve improvement in or strengthening of financial performance, operations or competitiveness anticipated or targeted; (h) inability to meet increased demand, production targets or commitments; (i) competition from new product offerings, disruptive technologies or other developments; (j) geopolitical, economic, and regulatory risks relating to Howmet Aerospace's global operations, including geopolitical and diplomatic tensions, instabilities, conflicts and wars, as well as compliance with
Non-GAAP Financial Measures
Some of the information included in this release is derived from Howmet Aerospace's consolidated financial information but is not presented in Howmet Aerospace's financial statements prepared in accordance with accounting principles generally accepted in
Other Information
In this press release, the acronym "FY" means "full year"; "Q" means "quarter"; "YoY" means year over year; "Adj." means adjusted; and references to performance by Howmet Aerospace or its segments as "record" mean its best result since April 1, 2020 when Howmet Aerospace Inc. (previously named Arconic Inc.) separated from Arconic Corporation.
听
Howmet Aerospace Inc. and subsidiaries Statement of Consolidated Operations (unaudited) (in | |||||
鈥� | |||||
Quarter ended | |||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | |||
Sales | $听听听听听听听听听听听听听听听听听听听听 2,053 | $听听听听听听听听听听听听听听听听听听听听 1,942 | $听听听听听听听听听听听听听听听听听听听听 1,880 | ||
听鈥� | |||||
Cost of goods sold (exclusive of expenses below) | 1,365 | 1,290 | 1,287 | ||
Selling, general administrative, and other expenses | 89 | 85 | 97 | ||
Research and development expenses | 9 | 8 | 7 | ||
Provision for depreciation and amortization | 69 | 69 | 69 | ||
Restructuring and other (credits) charges | 鈥� | (4) | 22 | ||
Operating income | 521 | 494 | 398 | ||
听鈥� | |||||
Interest expense, net | 38 | 39 | 49 | ||
Other expense, net | 14 | 9 | 15 | ||
听鈥� | |||||
Income before income taxes | 469 | 446 | 334 | ||
Provision for income taxes | 62 | 102 | 68 | ||
Net income | $听听听听听听听听听听听听听听听听听听听听听听听 407 | $听听听听听听听听听听听听听听听听听听听听听听听 344 | $听听听听听听听听听听听听听听听听听听听听听听听 266 | ||
听鈥� | |||||
Amounts Attributable to Howmet Aerospace Common Shareholders: | |||||
Earnings per share - basic(1): | |||||
听Net income per share | $听听听听听听听听听听听听听听听听听听听听听听 1.01 | $听听听听听听听听听听听听听听听听听听听听听听 0.85 | $听听听听听听听听听听听听听听听听听听听听听听 0.65 | ||
听Average number of shares(2)(3) | 404 | 405 | 408 | ||
听鈥� | |||||
Earnings per share - diluted(1): | |||||
听Net income per share | $听听听听听听听听听听听听听听听听听听听听听听 1.00 | $听听听听听听听听听听听听听听听听听听听听听听 0.84 | $听听听听听听听听听听听听听听听听听听听听听听 0.65 | ||
听Average number of shares(2)(3) | 406 | 407 | 411 | ||
听鈥� | |||||
Common stock outstanding at the end of the period | 404 | 404 | 408 | ||
鈥� | |
(1) | In order to calculate both basic and diluted earnings per share, preferred stock dividends declared of less than |
鈥� | |
(2) | For the quarters presented, the difference between the diluted average number of shares and the basic average number of shares relates to share equivalents associated with outstanding restricted stock unit awards and employee stock options. |
鈥� | |
(3) | As average shares outstanding are used in the calculation of both basic and diluted earnings per share, the full impact of share repurchases is not fully realized in earnings per share ("EPS") in the period of repurchase since share repurchases may occur at varying points during a period. |
听
Howmet Aerospace Inc. and subsidiaries Consolidated Balance Sheet (unaudited) (in | |||
鈥� | |||
听鈥� | June 30, 2025 | December 31, 2024 | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | $听听听听听听听听听听听听听听听听听听听听听听听听听听听 545 | $听听听听听听听听听听听听听听听听听听听听听听听听听听听 564 | |
Receivables from customers, less allowances of $鈥� in both 2025 and 2024 | 888 | 689 | |
Other receivables | 14 | 20 | |
Inventories | 1,964 | 1,840 | |
Prepaid expenses and other current assets | 283 | 249 | |
听Total current assets | 3,694 | 3,362 | |
Properties, plants, and equipment, net | 2,526 | 2,386 | |
Goodwill | 4,065 | 4,010 | |
Deferred income taxes | 31 | 35 | |
Intangibles, net | 467 | 475 | |
Other noncurrent assets | 263 | 251 | |
听Total assets | $听听听听听听听听听听听听听听听听听听听听听 11,046 | $听听听听听听听听听听听听听听听听听听听听听 10,519 | |
听鈥� | |||
Liabilities | |||
Current liabilities: | |||
Accounts payable, trade | $听听听听听听听听听听听听听听听听听听听听听听听听 1,028 | $听听听听听听听听听听听听听听听听听听听听听听听听听听听 948 | |
Accrued compensation and retirement costs | 263 | 305 | |
Taxes, including income taxes | 64 | 60 | |
Accrued interest payable | 59 | 59 | |
Other current liabilities | 181 | 171 | |
Long-term debt due within one year | 5 | 6 | |
听Total current liabilities | 1,600 | 1,549 | |
Long-term debt | 3,253 | 3,309 | |
Accrued pension benefits | 613 | 625 | |
Accrued other postretirement benefits | 52 | 54 | |
Other noncurrent liabilities and deferred credits | 486 | 428 | |
听Total liabilities | 6,004 | 5,965 | |
听鈥� | |||
Equity | |||
Howmet Aerospace shareholders' equity: | |||
Preferred stock | 55 | 55 | |
Common stock | 404 | 405 | |
Additional capital | 2,898 | 3,206 | |
Retained earnings | 3,434 | 2,766 | |
Accumulated other comprehensive loss | (1,749) | (1,878) | |
听Total equity | 5,042 | 4,554 | |
听Total liabilities and equity | $听听听听听听听听听听听听听听听听听听听听听 11,046 | $听听听听听听听听听听听听听听听听听听听听听 10,519 | |
听
Howmet Aerospace Inc. and subsidiaries Statement of Consolidated Cash Flows (unaudited) (in | |||
鈥� | |||
Six months ended June 30, | |||
听鈥� | 2025 | 2024 | |
Operating activities | |||
Net income | $听听听听听听听听听听听听听听听听听听听听 751 | $听听听听听听听听听听听听听听听听听听听听 509 | |
Adjustments to reconcile net income to cash provided from operations: | |||
Depreciation and amortization | 138 | 136 | |
Deferred income taxes | 12 | 67 | |
Restructuring and other (credits) charges | (4) | 22 | |
Net realized and unrealized losses | 11 | 13 | |
Net periodic pension cost | 21 | 20 | |
Stock-based compensation | 39 | 38 | |
Other | 2 | 7 | |
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: | |||
Increase听in听receivables | (170) | (100) | |
Increase听in听inventories | (81) | (109) | |
Decrease in prepaid expenses and other current assets | 6 | 5 | |
Increase in accounts payable, trade | 74 | 6 | |
Decrease in accrued expenses | (47) | (17) | |
(Decrease) increase in taxes, including income taxes | (20) | 13 | |
Pension contributions | (15) | (17) | |
Increase in noncurrent assets | (2) | (7) | |
Decrease in noncurrent liabilities | (16) | (12) | |
Cash provided from operations | 699 | 574 | |
Financing Activities | |||
Repurchases and payments on debt | (77) | (23) | |
Repurchases听of听common听stock | (300) | (210) | |
Proceeds from exercise of employee stock options | 1 | 6 | |
Dividends paid to shareholders | (83) | (42) | |
Taxes paid for net share settlement of equity awards | (44) | (32) | |
Other | (3) | 鈥� | |
Cash used for financing activities | (506) | (301) | |
Investing Activities | |||
Capital expenditures | (221) | (137) | |
Proceeds from the sale of assets and businesses听 | 8 | 8 | |
Other | 1 | 鈥� | |
Cash used for investing activities | (212) | (129) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 鈥� | (2) | |
Net change in cash, cash equivalents and restricted cash听听听听听听听听 | (19) | 142 | |
Cash, cash equivalents and restricted cash at beginning of period | 565 | 610 | |
Cash, cash equivalents and restricted cash at end of period | $听听听听听听听听听听听听听听听听听听听听 546 | $听听听听听听听听听听听听听听听听听听听听 752 | |
听
Howmet Aerospace Inc. and subsidiaries Segment Information (unaudited)听听听听听 (in | |||||||
鈥� | |||||||
1Q24 | 2Q24 | 3Q24 | 4Q24 | 2024 | 1Q25 | 2Q25 | |
Engine Products | |||||||
Third-party sales | $听 3,735 | $听 1,056 | |||||
Inter-segment sales | $听听听听 2 | $听听听听 1 | $听听听听 3 | $听听听听 1 | $听 听 听 听 听7 | $听听听听 2 | $听听听听 2 |
Provision for depreciation and amortization | $听听 33 | $听听 33 | $听听 34 | $听听 39 | $听 听 听139 | $听听 34 | $听听 35 |
Segment Adjusted EBITDA | $听 1,150 | ||||||
Segment Adjusted EBITDA Margin | 28.1听% | 31.3听% | 32.5听% | 31.1听% | 30.8听% | 32.6听% | 33.0听% |
Restructuring and other (credits) charges | $听听 鈥� | $听听 (1) | $听听听听 1 | $听听听听 1 | $听 听 听 听 听1 | $听听 鈥� | $听听 鈥� |
Capital expenditures | $听听 55 | $听听 33 | $听听 55 | $听听 76 | $听 听 听219 | $听听 86 | $听听 75 |
听鈥� | |||||||
Fastening Systems | |||||||
Third-party sales | $听 1,576 | ||||||
Inter-segment sales | $听听 鈥� | $听听 鈥� | $听听 鈥� | $听听听听 1 | $听 听 听 听 听1 | $听听 鈥� | $听听 鈥� |
Provision for depreciation and amortization | $听听 11 | $听听 13 | $听听 12 | $听听 11 | $听 听 听 听47 | $听听 12 | $听听 12 |
Segment Adjusted EBITDA | $听听 92 | $听 听 听406 | |||||
Segment Adjusted EBITDA Margin | 23.7听% | 25.6听% | 26.0听% | 27.7听% | 25.8听% | 30.8听% | 29.2听% |
Restructuring and other charges | $听听 鈥� | $听听听听 2 | $听听听听 1 | $听听听听 2 | $听 听 听 听 听5 | $听听 鈥� | $听听听听 1 |
Capital expenditures | $听听听听 7 | $听听听听 5 | $听听听听 5 | $听听听听 9 | $听 听 听 听26 | $听听 10 | $听听听听 9 |
听鈥� | |||||||
Engineered Structures | |||||||
Third-party sales | $听 1,065 | ||||||
Inter-segment sales | $听听听听 1 | $听听听听 3 | $听听听听 3 | $听听听听 3 | $听 听 听 听10 | $听听听听 3 | $听听听听 3 |
Provision for depreciation and amortization | $听听 11 | $听听 11 | $听听 10 | $听听 10 | $听 听 听 听42 | $听听 12 | $听听 10 |
Segment Adjusted EBITDA | $听听 37 | $听听 40 | $听听 38 | $听听 51 | $听 听 听166 | $听听 60 | $听听 62 |
Segment Adjusted EBITDA Margin | 14.1听% | 14.5听% | 15.0听% | 18.5听% | 15.6听% | 21.3听% | 21.4听% |
Restructuring and other charges (credits) | $听听 鈥� | $听听 18 | $听听 (3) | $听听 (3) | $听 听 听 听12 | $听听 (4) | $听听 鈥� |
Capital expenditures | $听听听听 6 | $听听听听 5 | $听听听听 5 | $听听听听 4 | $听 听 听 听20 | $听听听听 5 | $听听听听 6 |
听鈥� | |||||||
Forged Wheels | |||||||
Third-party sales | $听 1,054 | ||||||
Provision for depreciation and amortization | $听听 10 | $听听 10 | $听听 10 | $听听 12 | $听 听 听 听42 | $听听 10 | $听听 10 |
Segment Adjusted EBITDA | $听听 82 | $听听 75 | $听听 64 | $听听 66 | $听 听 听287 | $听听 68 | $听听 76 |
Segment Adjusted EBITDA Margin | 28.5听% | 27.0听% | 26.1听% | 27.2听% | 27.2听% | 27.0听% | 27.5听% |
Restructuring and other charges (credits) | $听听 鈥� | $听听听听 1 | $听听 鈥� | $听听 鈥� | $听 听 听 听 听1 | $听听 鈥� | $听听 (1) |
Capital expenditures | $听听 12 | $听听听听 9 | $听听 14 | $听听 10 | $听 听 听 听45 | $听听 15 | $听听听听 8 |
鈥� |
Differences between the total segment and consolidated totals are in Corporate. |
听
Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited) (in | |||||||
鈥� | |||||||
Reconciliation of Total Segment Adjusted EBITDA to Consolidated Income Before Income Taxes | |||||||
1Q24 | 2Q24 | 3Q24 | 4Q24 | 2024 | 1Q25 | 2Q25 | |
Income before income taxes | $听听听 303 | $听听听 334 | $听听听 354 | $听听听 392 | $听听听 446 | $听听听 469 | |
Loss on debt redemption | 鈥� | 鈥� | 6 | 鈥� | 6 | 鈥� | 鈥� |
Interest expense, net | 49 | 49 | 44 | 40 | 182 | 39 | 38 |
Other expense, net | 17 | 15 | 17 | 13 | 62 | 9 | 14 |
Operating income | $听听听 369 | $听听听 398 | $听听听 421 | $听听听 445 | $听听听 494 | $听听听 521 | |
Segment provision for depreciation and amortization | 65 | 67 | 66 | 72 | 270 | 68 | 67 |
Unallocated amounts: | |||||||
Restructuring and other charges (credits) | 鈥� | 22 | (1) | 鈥� | 21 | (4) | 鈥� |
Corporate expense(1) | 26 | 21 | 25 | 13 | 85 | 22 | 25 |
Total Segment Adjusted EBITDA | $听听听 460 | $听听听 508 | $听听听 511 | $听听听 530 | $听听听 580 | $听听听 613 | |
鈥� |
Total Segment Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Total Segment Adjusted EBITDA provides additional information with respect to the Company's operating performance and the Company's ability to meet its financial obligations. The Total Segment Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. Howmet's definition of Total 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 expenses; and Provision for depreciation and amortization. Special items, including Restructuring and other charges (credits), are excluded from net margin and Segment Adjusted EBITDA. Differences between the total segment and consolidated totals are in Corporate. |
听
(1) Pre-tax special items included in Corporate expense | |||||||
1Q24 | 2Q24 | 3Q24 | 4Q24 | 2024 | 1Q25 | 2Q25 | |
Plant fire reimbursements, net | $听听听听听听 鈥� | $听听听听听听 (6) | $听听听听听听 鈥� | $听听听听 (12) | $听听听听 (18) | $听听听听听听 鈥� | $听听听听听听 鈥� |
Costs (benefits) associated with closures, supply chain disruptions, and other items | 1 | 鈥� | (1) | 1 | 1 | 1 | (1) |
Total Pre-tax special items included in Corporate expense | $听听听听听听听听 1 | $听听听听听听 (6) | $听听听听听听 (1) | $听听听听 (11) | $听听听听 (17) | $听听听听听听听听 1 | $听听听听听听 (1) |
听
Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited), continued (in | |||||
鈥� | |||||
Reconciliation of Free cash flow | Quarter ended | Six months ended | |||
1Q25 | 2Q25 | 2Q25 | |||
Cash provided from operations | $听听听听听听听听听听听听听听听听听听听听听听听听 253 | $听听听听听听听听听听听听听听听听听听听听听听听听 446 | $听听听听听听听听听听听听听听听听听听听听听听听 699 | ||
Capital expenditures | (119) | (102) | (221) | ||
Free cash flow | $听听听听听听听听听听听听听听听听听听听听听听听听 134 | $听听听听听听听听听听听听听听听听听听听听听听听听 344 | $听听听听听听听听听听听听听听听听听听听听听听听 478 | ||
鈥� |
The Accounts Receivable听Securitization program remains unchanged at |
鈥� |
Free cash flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures (due to the fact that these expenditures are considered necessary to maintain and expand the Company's asset base and are expected to generate future cash flows from operations). It is important to note that Free cash flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure. |
听
Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited), continued (in | |||||
鈥� | |||||
Reconciliation of Net income excluding Special items | Quarter ended | ||||
2Q24 | 1Q25 | 2Q25 | |||
Net income | $听听听听听听听听听听听听听听听听听 266 | $听听听听听听听听听听听听听听听听听 344 | $听听听听听听听听听听听听听听听听听 407 | ||
听鈥� | |||||
Diluted earnings per share ("EPS") | $听听听听听听听听听听听听听听听听 0.65 | $听听听听听听听听听听听听听听听听 0.84 | $听听听听听听听听听听听听听听听听 1.00 | ||
听鈥� | |||||
Average number of diluted shares | 411 | 407 | 406 | ||
听鈥� | |||||
Special items: | |||||
听Restructuring and other charges (credits)(1) | 22 | (4) | 鈥� | ||
Plant fire reimbursements, net | (6) | 鈥� | 鈥� | ||
Costs (benefits) associated with closures, supply chain disruptions, and other items | 鈥� | 1 | (1) | ||
Subtotal: Pre-tax special items | 16 | (3) | (1) | ||
Tax impact of Pre-tax special items(2) | 鈥� | 1 | 鈥� | ||
Subtotal | 16 | (2) | (1) | ||
听鈥� | |||||
Discrete and other tax special items(3) | (6) | 9 | (35) | ||
Total: After-tax special items | 10 | 7 | (36) | ||
Net income excluding Special items | $听听听听听听听听听听听听听听听听听 276 | $听听听听听听听听听听听听听听听听听 351 | $听听听听听听听听听听听听听听听听听 371 | ||
听鈥� | |||||
Diluted EPS excluding Special items | $听听听听听听听听听听听听听听听听 0.67 | $听听听听听听听听听听听听听听听听 0.86 | $听听听听听听听听听听听听听听听听 0.91 | ||
鈥屸赌� | ||
Net income excluding Special items and Diluted EPS excluding Special items are non-GAAP financial measures. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Restructuring and other charges (credits), Discrete tax items, and Other special items (collectively, "Special items"). There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Net income and Diluted EPS determined under GAAP as well as Net income excluding Special items and Diluted EPS excluding Special items.听 | ||
鈥� | ||
(1) | 2Q24 includes non-cash Special items of a loss on sale of a small manufacturing facility in Engineered Structures | |
鈥� | ||
(2) | The Tax impact of Pre-tax special items is based on the applicable statutory rates whereby the difference between such rates and the Company's consolidated estimated annual effective tax rate is itself a Special item.听 | |
鈥� | ||
(3) | Discrete tax items for each period included the following: | |
鈥� | for 2Q24, an excess benefit for stock compensation ( | |
鈥� | for 1Q25, a net charge related to the expiration of a tax holiday in | |
鈥� | for 2Q25, benefits related to | |
听
Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited), continued (in | |||||||||||
鈥� | |||||||||||
Reconciliation of Operational tax rate | 2Q25 | Six months ended 2Q25 | |||||||||
Effective | Special | Operational | Effective | Special | Operational | ||||||
Income before income taxes | $听 听 听 469 | $听 听 听 听 听 听 (1) | $听听听听听听听听听 468 | $听听听听 915 | $听 听 听 听 听 听 (4) | $听 听 听 听 听 911 | |||||
Provision for income taxes | $听听听听听听听 62 | $听听听听听听听听听听 35 | $听听听听听听听听听听听 97 | $听听听听 164 | $听听听听听听听听听听 25 | $听听听听听听听听听 189 | |||||
Tax rate | 13.2听% | 20.7听% | 17.9听% | 20.7听% | |||||||
鈥屸赌� | ||
Operational tax rate is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both the Effective tax rate determined under GAAP as well as the Operational tax rate. | ||
鈥� | ||
(1) | Pre-tax special items for 2Q25 included Costs (benefits) associated with closures, supply chain disruptions, and other items ( | |
鈥� | ||
(2) | Tax Special items includes discrete tax items, the tax impact on Special items based on the applicable statutory rates, the difference between such rates and the Company's consolidated estimated annual effective tax rate and other tax related items. Discrete tax items for each period included the following: | |
鈥� | for 2Q25, benefits related to | |
鈥� | for the six months ended 2Q25, benefits related to | |
听
Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited), continued (in | |||||
鈥屸赌屸�� | |||||
Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin excluding Special items | Quarter ended | ||||
2Q24 | 1Q25 | 2Q25 | |||
Sales | $听 听 听 听 听 1,880 | $听 听 听 听 听 1,942 | $听 听 听 听 听 2,053 | ||
Operating income | $听听听听听听听听听听听听 398 | $听听听听听听听听听听听听 494 | $听听听听听听听听听听听听 521 | ||
Operating income margin | 21.2听% | 25.4听% | 25.4听% | ||
听鈥屸赌屸�� | |||||
Net income | $听听听听听听听听听听听听 266 | $听听听听听听听听听听听听 344 | $听听听听听听听听听听听听 407 | ||
Add: | |||||
Provision for income taxes | $听听听听听听听听听听听听听听 68 | $听听听听听听听听听听听听 102 | $听听听听听听听听听听听听听听 62 | ||
Other expense, net | 15 | 9 | 14 | ||
Interest expense, net | 49 | 39 | 38 | ||
Restructuring and other charges (credits) | 22 | (4) | 鈥� | ||
Provision for depreciation and amortization | 69 | 69 | 69 | ||
Adjusted EBITDA | $听听听听听听听听听听听听 489 | $听听听听听听听听听听听听 559 | $听听听听听听听听听听听听 590 | ||
听鈥屸赌屸�� | |||||
Add: | |||||
Plant fire reimbursements, net | $听听听听听听听听听听听听听听 (6) | $听听听听听听听听听听听听听听 鈥� | $听听听听听听听听听听听听听听 鈥� | ||
Costs (benefits) associated with closures, supply chain disruptions, and other items | 鈥� | 1 | (1) | ||
Adjusted EBITDA excluding Special items | $听 听 听 听 听 听 483 | $听 听 听 听 听 听 560 | $听 听 听 听 听 听 589 | ||
听鈥屸赌屸�� | |||||
Adjusted EBITDA margin excluding Special items | 25.7听% | 28.8听% | 28.7听% | ||
鈥� |
Adjusted EBITDA, Adjusted EBITDA excluding Special items, and Adjusted EBITDA margin excluding Special items are non-GAAP financial measures. Management believes that these measures are meaningful to investors because they provide additional information with respect to the Company's operating performance and the Company's ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. The Company's definition of 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 expenses, and Provision for depreciation and amortization. Special items, including Restructuring and other charges (credits), are excluded from Adjusted EBITDA. |
听
Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited), continued (in | |||||
鈥� | |||||
Reconciliation of Adjusted Operating Income Excluding Special Items and Adjusted Operating Income Margin Excluding Special Items | Quarter ended | ||||
2Q24 | 1Q25 | 2Q25 | |||
Sales | $听 听 听 1,880 | $听 听 听 1,942 | $听 听 听 2,053 | ||
Operating income | $听听听听听听听听 398 | $听听听听听听听听 494 | $听听听听听听听听 521 | ||
Operating income margin | 21.2听% | 25.4听% | 25.4听% | ||
听鈥� | |||||
Add: | |||||
Restructuring and other charges (credits) | $听听听听听听听听听听 22 | $听听听听听听听听听听 (4) | $听听听听听听听听听听 鈥� | ||
Plant fire reimbursements, net | (6) | 鈥� | 鈥� | ||
Costs (benefits) associated with closures, supply chain disruptions, and other items | 鈥� | 1 | (1) | ||
Adjusted operating income excluding Special items | $听听听听听听听听 414 | $听听听听听听听听 491 | $听听听听听听听听 520 | ||
听鈥� | |||||
Adjusted operating income margin excluding Special items | 22.0听% | 25.3听% | 25.3听% | ||
鈥� |
Adjusted operating income excluding Special items and Adjusted operating income margin excluding Special items are non-GAAP financial measures. Special items, including Restructuring and other charges (credits), are excluded from Adjusted operating income. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Operating income determined under GAAP as well as Operating income excluding Special items. |
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