Howmet Aerospace Inc.HWM
Howmet Aerospace Inc. Segments Disclosure
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 ended | Engine Products | Fastening Systems | Engineered Structures | Forged Wheels | Total Segment | ||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||
| Sales: | |||||||||||||||||||||||||||||
| Third-party sales | $ | 4,320 | $ | 1,745 | $ | 1,148 | $ | 1,039 | $ | 8,252 | |||||||||||||||||||
| Inter-segment sales | 7 | 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 amortization | 146 | 48 | 41 | 42 | 277 | ||||||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||
| Capital expenditures | $ | 319 | $ | 52 | $ | 33 | $ | 36 | $ | 440 | |||||||||||||||||||
| Total assets | 5,626 | 2,761 | 1,330 | 691 | 10,408 | ||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||
| Sales: | |||||||||||||||||||||||||||||
| Third-party sales | $ | 3,735 | $ | 1,576 | $ | 1,065 | $ | 1,054 | $ | 7,430 | |||||||||||||||||||
| Inter-segment sales | 7 | 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 charges | 1 | 5 | 12 | 1 | 19 | ||||||||||||||||||||||||
| Provision for depreciation and amortization | 139 | 47 | 42 | 42 | 270 | ||||||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||
| Capital expenditures | $ | 219 | $ | 26 | $ | 20 | $ | 45 | $ | 310 | |||||||||||||||||||
| Total assets | 5,145 | 2,711 | 1,355 | 701 | 9,912 | ||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||
| Sales: | |||||||||||||||||||||||||||||
| Third-party sales | $ | 3,266 | $ | 1,349 | $ | 878 | $ | 1,147 | $ | 6,640 | |||||||||||||||||||
| Inter-segment sales | 13 | — | 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 amortization | 130 | 46 | 47 | 39 | 262 | ||||||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||
| Capital expenditures | $ | 112 | $ | 31 | $ | 26 | $ | 36 | $ | 205 | |||||||||||||||||||
| Total assets | 4,926 | 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, | 2025 | 2024 | 2023 | ||||||||||||||
| Total segment capital expenditures | $ | 440 | $ | 310 | $ | 205 | |||||||||||
| Corporate | 13 | 11 | 14 | ||||||||||||||
| Capital expenditures | $ | 453 | $ | 321 | $ | 219 | |||||||||||
The following tables reconcile certain segment information to consolidated totals.
| For the year ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Total Segment Adjusted EBITDA | $ | 2,507 | $ | 2,009 | $ | 1,587 | |||||||||||
| Segment provision for depreciation and amortization | (277) | (270) | (262) | ||||||||||||||
| Unallocated amounts: | |||||||||||||||||
| (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) | ||||||||||||||
| (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, | 2025 | 2024 | |||||||||
| Assets: | |||||||||||
| Total segment assets | $ | 10,408 | $ | 9,912 | |||||||
| Unallocated amounts: | |||||||||||
| Cash and cash equivalents | 742 | 564 | |||||||||
| Deferred income taxes | 40 | 36 | |||||||||
| Corporate fixed assets, net | 77 | 83 | |||||||||
| Accounts receivable securitization | (250) | (250) | |||||||||
| Other | 162 | 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, | 2025 | 2024 | 2023 | ||||||||||||||
| Sales: | |||||||||||||||||
| United States | $ | 4,377 | $ | 3,713 | $ | 3,273 | |||||||||||
| France | 625 | 678 | 578 | ||||||||||||||
| Japan | 513 | 355 | 378 | ||||||||||||||
| Germany | 439 | 458 | 363 | ||||||||||||||
| United Kingdom | 376 | 350 | 283 | ||||||||||||||
| Italy | 264 | 287 | 220 | ||||||||||||||
| Canada | 187 | 174 | 145 | ||||||||||||||
| Mexico | 166 | 220 | 263 | ||||||||||||||
| Poland | 150 | 152 | 130 | ||||||||||||||
| China | 130 | 103 | 98 | ||||||||||||||
| Other | 1,025 | 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, | 2025 | 2024 | |||||||||
| Long-lived assets: | |||||||||||
| United States | $ | 1,986 | $ | 1,864 | |||||||
| Hungary | 218 | 199 | |||||||||
| United Kingdom | 153 | 121 | |||||||||
| France | 130 | 112 | |||||||||
| Mexico | 63 | 68 | |||||||||
| Germany | 62 | 54 | |||||||||
| Japan | 48 | 29 | |||||||||
| Other | 95 | 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 Products | Fastening Systems | Engineered Structures | Forged Wheels | Total 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 Turbines | 944 | — | — | — | 944 | ||||||||||||||||||||||||
| Other | 121 | 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 Turbines | 755 | — | — | — | 755 | ||||||||||||||||||||||||
| Other | 123 | 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 Turbines | 674 | — | — | — | 674 | ||||||||||||||||||||||||
| Other | 124 | 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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 14, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 19, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.