Howmet Aerospace Inc. · NYSE:HWM
Howmet Aerospace — Q3 2025 Earnings Presentation
28 slides from Howmet Aerospace's earnings presentation, Oct 30, 2025
Slide 1: Third Quarter 2025 Earnings Call
Third Quarter 2025 Earnings Call John Plant: Executive Chairman and Chief Executive Officer Ken Giacobbe: EVP and Chief Financial Officer October 30, 2025
Slide 2: Important Information
Important Information Forward–Looking Statements This presentation 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
Slide 3: Important Information (continued)
Important Information (continued) Non-GAAP Financial Measures Some of the information included in this presentation 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
Slide 4: Q3 2025 Highlights
Q3 2025 Highlights Revenue and Profitability Excluding Special Items1,2 Q3 2024 Q2 2025 Q3 2025 Q3 YoY Revenue $1.835B $2.053B $2.089B +14% Adj EBITDA1 $487M $589M $614M +26% Adj EBITDA Margin1 26.5% 28.7% 29.4% +290 bps Adj Operating Income1 $419M $520M $542M +29% Adj Operating Income Margin1 22.8%
Slide 5: Q3 2025 Revenue Up 14% YoY, Commercial Aerospace Up 15% YoY
Q3 2025 Revenue Up 14% YoY, Commercial Aerospace Up 15% YoY Q3 2025 Revenue by Market Revenue by Market YoY Seq (% of total) (% change) Commercial Aerospace 53% Commercial Aerospace 15% 5% Defense Aerospace 24% 1% $2.089B Total Commercial Transportation (3%) (9%) Revenue Industrial & 16% Other Indus
Slide 6: Q3 2025 YoY: Revenue Up 14%, Adj EBITDA Up 26%, Adj EPS Up 34%
Q3 2025 YoY: Revenue Up 14%, Adj EBITDA1 Up 26%, Adj EPS2 Up 34% ▪ Record Revenue, Adj EBITDA1, Adj EBITDA Margin1, and Adj Earnings Per Share2 ▪ Revenue Up 14% YoY, driven by Commercial Aerospace Up 15% and Defense Aerospace Up 24% Enhanced Profitability ▪ Adj EBITDA1 of $614M, Up 26% YoY. Adj EBIT
Slide 7: Engine Products: Revenue Up 17% Q3 YoY; Adj EBITDA Margin 33.3%
Engine Products: Revenue Up 17% Q3 YoY; Adj EBITDA Margin 33.3% Q3 Revenue by Market +17% (% of total) $1,056M $1,105M $945M $972M $996M Industrial & Other 24% 3rd Party Revenue 55% Commercial Aerospace Defense Aerospace 21% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2025 YoY +20% Segment $349M $368
Slide 8: Fastening Systems: Revenue Up 14% Q3 YoY; Adj EBITDA Margin 30.8%
Fastening Systems: Revenue Up 14% Q3 YoY; Adj EBITDA Margin 30.8% Q3 Revenue by Market +14% (% of total) $431M $448M $392M $401M $412M Industrial & Other 9% 3rd Party Revenue Commercial Transportation 12% 69% Commercial Aerospace 10% Defense Aerospace Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2025
Slide 9: Engineered Structures: Revenue Up 14% Q3 YoY; Adj EBITDA Margin 20.1%
Engineered Structures: Revenue Up 14% Q3 YoY; Adj EBITDA Margin 20.1% Q3 Revenue by Market +14% (% of total) $275M $282M $290M $289M Industrial & Other $253M 4% 3rd Party Revenue Defense Aerospace 28% 68% Commercial Aerospace Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2025 YoY +53% Segment $60M $62M
Slide 10: Forged Wheels: Revenue Up 1% Q3 YoY; Adj EBITDA Margin 29.6%
Forged Wheels: Revenue Up 1% Q3 YoY; Adj EBITDA Margin 29.6% Q3 Revenue by Region +1% (% of total) $276M Other $245M $243M $252M $247M 18% 3rd Party Revenue 48% North America Europe 34% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2025 YoY +14% Segment $76M - Commercial Transportation Market Down $68M
Slide 11: 2025 Guidance
2025 Guidance Q4 2025 Guidance FY 2025 Guidance What we expect in 2025 Low Baseline High Low Baseline High Revenue $2.090B $2.100B $2.110B ~$8.175B ~$8.185B ~$8.195B ▪ FY 2025 Revenue up ~10% vs. FY 2024 Baseline Change +~$55M ▪ FY 2025 Adj EBITDA1 up ~24% vs. FY 2024 Adj EBITDA1 $605M $610M $615M ~
Slide 12: Summary
Summary ▪ Record Revenue, Adj EBITDA1, Adj EBITDA Margin1, and Adj Earnings Per Share2 Revenue / ▪ Revenue of $2.089B, Up 14% YoY, driven by Commercial Aerospace Up 15% and Defense Aerospace Up 24% Profit Q3 2025 ▪ Adj EBITDA1 of $614M, Up 26% YoY. Adj EBITDA Margin1 of 29.4%, Up ~290 bps YoY ▪ Adj
Slide 13: Howmet Aerospace
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Slide 14: Appendix
Appendix Pl HOWMET UELJ AEROSPACE
Slide 15: 2025 Assumptions
2025 Assumptions Full Year 2025 2025 Comments Corporate Overhead ~$95M ▪ Included in Adj EBITDA Depreciation and Amortization ~$280M Previous: ~$275M Interest Expense ~$150M Operational Tax Rate ~21.5% ▪ Cash Tax Rate ~17% Previous: 20.5% - 21.5% ~$30M ▪ ~$5M Service Costs (included in Adj EBITDA) P
Slide 16: Robust Liquidity; Each Debt Tower Below Annual Free Cash Flow Expectations
Robust Liquidity; Each Debt Tower Below Annual Free Cash Flow Expectations $1,000M $800M Jan 3.0% Feb $700 Feb 5.9% 5.95% $625 $625 $600M Oct 3.72%1 $500 $400M Jan 6.75% Aug $300 4.75% Paid Down $250 Remaining $200M $63M of US Term Loan Nov September ~1.8% 2025 $200 2025 2026 2027 2028 2029 2030 203
Slide 17: Reconciliation of Net Income and Diluted EPS Excluding Special Items
Reconciliation of Net Income and Diluted EPS Excluding Special Items ($ in millions, except per-share amounts) Q3 2024 Q2 2025 Q3 2025 Net income $332 $407 $385 Diluted Earnings Per Share ("EPS") $0.81 $1.00 $0.95 Average number of diluted shares 410 406 405 Special items: Restructuring and other (c
Slide 18: Reconciliation of Operational Tax Rate
Reconciliation of Operational Tax Rate Operational tax rate is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additi
Slide 19: Calculation of Segment Markets Revenue
Calculation of Segment Markets Revenue Engine Fastening Engineered Forged ($ in millions) Products Systems Structures Wheels Total Segment Q3 2024 Aerospace - Commercial $534 $245 $183 $— $962 Aerospace - Defense $189 $43 $57 $— $289 Commercial Transportation $— $65 $— $245 $310 Industrial and Other
Slide 20: Calculation of Segment Information
Calculation of Segment Information ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Engine Products Third-party sales $ 885 $ 933 $ 945 $ 972 $ 3,735 $ 996 $ 1,056 $ 1,105 Inter-segment sales $ 2 $ 1 $ 3 $ 1 $ 7 $ 2 $ 2 $ 1 Provision for depreciation and amortization $
Slide 21: Calculation of Segment Information (continued)
Calculation of Segment Information (continued) ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Engineered Structures Third-party sales $ 262 $ 275 $ 253 $ 275 $ 1,065 $ 282 $ 290 $ 289 Inter-segment sales $ 1 $ 3 $ 3 $ 3 $ 10 $ 3 $ 3 $ 2 Provision for depreciation and
Slide 22: Reconciliation of Total Segment Adj. EBITDA to Income Before Income Taxes
Reconciliation of Total Segment Adj. EBITDA to Income Before Income Taxes ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Income before income taxes $303 $334 $354 $392 $1,383 $446 $469 $495 Loss on debt redemption — — 6 — 6 — — — Interest expense, net 49 49 44 40 182
Slide 23: Reconciliation of Adj. Corporate Exp. Excluding Depreciation and Special Items
Reconciliation of Adj. Corporate Exp. Excluding Depreciation and Special Items ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Corporate expense $26 $21 $25 $13 $85 $22 $25 $25 Provision for depreciation and amortization 2 2 2 1 7 1 2 2 Adjusted Corporate expense excl
Slide 24: Reconciliation of Adj. EBITDA and Adj. EBITDA Margin Both Excluding Special Items
Reconciliation of Adj. EBITDA and Adj. EBITDA Margin Both Excluding Special Items ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Third-party sales $1,824 $1,880 $1,835 $1,891 $7,430 $1,942 $2,053 $2,089 Operating income $369 $398 $421 $445 $1,633 $494 $521 $542 Opera
Slide 25: Reconciliation of Adj. Operating Income and Margin Both Excluding Special Items
Reconciliation of Adj. Operating Income and Margin Both Excluding Special Items ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Third-party sales $1,824 $1,880 $1,835 $1,891 $7,430 $1,942 $2,053 $2,089 Operating income $369 $398 $421 $445 $1,633 $494 $521 $542 Operati
Slide 26: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q3 YTD 2025 Cash provided from operations $253 $446 $531 $1,230 Capital expenditures (119) (102) (108) (329) Free cash flow $134 $344 $423 $901 The Accounts Receivable Securitization program remains unchanged at $250 outstandin
Slide 27: Reconciliation of Net Debt to Adjusted EBITDA Excluding Special Items
Reconciliation of Net Debt to Adjusted EBITDA Excluding Special Items ($ in millions) Trailing-12 months ended June 30, 2025 September 30, 2025 Net income $1,397 $1,450 Add: Provision for income taxes 264 352 Other expense, net 53 46 Loss on debt redemption 6 — Interest expense, net 161 154 Restruct
Slide 28: Howmet Aerospace
rr) HOWMET Lw.JJ AEROSPACE