Slide 1: Second Quarter 2025 Earnings Call
Second Quarter 2025 Earnings Call John Plant: Executive Chairman and Chief Executive Officer Ken Giacobbe: EVP and Chief Financial Officer July 31, 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: Q2 2025 Highlights
Q2 2025 Highlights Revenue and Profitability Excluding Special Items1,2 Q2 2024 Q1 2025 Q2 2025 Q2 YoY Revenue $1.880B $1.942B $2.053B +9% Adj EBITDA1 $483M $560M $589M +22% Adj EBITDA Margin1 25.7% 28.8% 28.7% +300 bps Adj Operating Income1 $414M $491M $520M +26% Adj Operating Income Margin1 22.0%
Slide 5: Q2 YTD 2025 Highlights
Q2 YTD 2025 Highlights Revenue and Profitability Excluding Special Items1,2 Q2 YTD 2024 Q2 YTD 2025 Q2 YTD YoY Revenue $3.704B $3.995B +8% Adj EBITDA1 $920M $1.149B +25% Adj EBITDA Margin1 24.8% 28.8% +400 bps Adj Operating Income1 $784M $1.011B +29% Adj Operating Income Margin1 21.2% 25.3% +410 bps
Slide 6: Q2 2025 Revenue Up 9% YoY, Commercial Aerospace Up 8% YoY
Q2 2025 Revenue Up 9% YoY, Commercial Aerospace Up 8% YoY Q2 2025 Revenue by Market Revenue by Market YoY Seq (% of total) (% change) Commercial Aerospace 52% Commercial Aerospace 8% 4% Defense Aerospace 21% 6% $2.053B Total Commercial Transportation (4%) 9% Industrial & 15% Revenue Other Industrial
Slide 7: Q2 2025 YoY: Revenue Up 9%, Adj EBITDA Up 22%, Adj EPS Up 36%
Q2 2025 YoY: Revenue Up 9%, Adj EBITDA1 Up 22%, Adj EPS2 Up 36% ▪ Record Revenue Up 9% YoY, driven by Commercial Aerospace Up 8% and Defense Aerospace Up 21% Enhanced ▪ Record Adj EBITDA1 of $589M, Up 22% YoY. Adj EBITDA Margin1 of 28.7%, Up ~300 bps YoY Profitability ▪ Record Adj Earnings Per Share
Slide 8: Engine Products: Revenue Up 13% Q2 YoY
Engine Products: Revenue Up 13% Q2 YoY; Adj EBITDA Margin 33.0% Q2 Revenue by Market +13% (% of total) $996M $1,056M $933M $945M $972M Industrial & Other 25% 3rd Party Revenue 54% Commercial Aerospace Defense Aerospace 21% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2025 YoY +20% Segment $349M + Comm
Slide 9: Fastening Systems: Revenue Up 9% Q2 YoY
Fastening Systems: Revenue Up 9% Q2 YoY; Adj EBITDA Margin 29.2% Q2 Revenue by Market +9% (% of total) $401M $412M $431M $394M $392M Industrial & Other 8% 3rd Party Commercial Transportation Revenue 13% 69% Commercial Aerospace 10% Defense Aerospace Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2025 Yo
Slide 10: Engineered Structures: Revenue Up 5% Q2 YoY
Engineered Structures: Revenue Up 5% Q2 YoY; Adj EBITDA Margin 21.4% Q2 Revenue by Market +5% (% of total) $275M $275M $282M $290M Industrial & Other $253M 4% 3rd Party Revenue Defense Aerospace 31% 65% Commercial Aerospace Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2025 YoY +55% Segment $60M $62M +
Slide 11: Forged Wheels: Revenue Down 1% Q2 YoY
Forged Wheels: Revenue Down 1% Q2 YoY; Adj EBITDA Margin 27.5% Q2 Revenue by Region -1% (% of total) $278M $276M Other $245M $243M $252M 14% 3rd Party Revenue 53% North America Europe 33% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2025 YoY +1% Segment $76M - Commercial Transportation Market Down $75
Slide 12: 2025 Guidance
2025 Guidance Q3 2025 Guidance FY 2025 Guidance What we expect in 2025 Low Baseline High Low Baseline High Revenue $2.020B $2.030B $2.040B $8.080B $8.130B $8.180B ▪ FY 2025 Revenue up ~9% vs. FY 2024 Baseline Change +$100M ▪ FY 2025 Adj EBITDA1 up ~21% vs. FY 2024 Adj EBITDA1 $575M $580M $585M $2.30
Slide 13: Summary
Summary ▪ Record Revenue, Adj EBITDA1, and Adj Earnings Per Share2 Revenue / ▪ Revenue of $2.053B, Up 9% YoY, driven by Commercial Aerospace Up 8% and Defense Aerospace Up 21% Profit Q2 2025 ▪ Adj EBITDA1 of $589M, Up 22% YoY. Adj EBITDA Margin1 of 28.7%, Up ~300 bps YoY ▪ Adj Earnings Per Share2 of
Slide 14: Howmet Aerospace
rr) HOWMET Lw.JJ AEROSPACE
Slide 15: Appendix
Appendix Pl HOWMET UELJ AEROSPACE
Slide 16: 2025 Assumptions
2025 Assumptions Full Year 2025 2025 Comments Corporate Overhead ~$95M ▪ Included in Adj EBITDA Previous: ~$90M Depreciation and Amortization ~$275M Interest Expense ~$150M Previous: ~$160M Operational Tax Rate 20.5% - 21.5% ▪ Cash Tax Rate ~18% ▪ ~$5M Service Costs (included in Adj EBITDA) Pension
Slide 17: 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 Nov 6.75% ~2.7% Aug $300 $269 4.75% $250 $200M 2025 2026 2027 2028 2029 2030 2031 2037 2042 1) After cross-currency swap to syntheticall
Slide 18: Reconciliation of Net Income and Diluted EPS Excluding Special Items
Reconciliation of Net Income and Diluted EPS Excluding Special Items ($ in millions, except per-share amounts) Q2 2024 Q1 2025 Q2 2025 Q2 YTD 2024 Q2 YTD 2025 Net income $266 $344 $407 $509 $751 Diluted Earnings Per Share ("EPS") $0.65 $0.84 $1.00 $1.23 $1.84 Average number of diluted shares 411 407
Slide 19: Reconciliation of Operational Tax Rate
Reconciliation of Operational Tax Rate ($ in millions) Q2 2025 Q2 YTD 2025 Effective tax Operational Effective tax Operational rate, as Special tax rate, as rate, as Special tax rate, as reported items(1)(2) adjusted reported items(1)(2) adjusted Income before income taxes $469 $(1) $468 $915 $(4) $
Slide 20: Calculation of Segment Markets Revenue
Calculation of Segment Markets Revenue Engine Fastening Engineered Forged ($ in millions) Products Systems Structures Wheels Total Segment Q2 2024 Aerospace - Commercial $528 $251 $200 $— $979 Aerospace - Defense $192 $37 $61 $— $290 Commercial Transportation $— $68 $— $278 $346 Industrial and Other
Slide 21: Calculation of Segment Information
Calculation of Segment Information ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Engine Products Third-party sales $ 885 $ 933 $ 945 $ 972 $ 3,735 $ 996 $ 1,056 Inter-segment sales $ 2 $ 1 $ 3 $ 1 $ 7 $ 2 $ 2 Provision for depreciation and amortization $ 33 $ 33 $ 34 $ 39 $
Slide 22: 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 Engineered Structures Third-party sales $ 262 $ 275 $ 253 $ 275 $ 1,065 $ 282 $ 290 Inter-segment sales $ 1 $ 3 $ 3 $ 3 $ 10 $ 3 $ 3 Provision for depreciation and amortization $ 11
Slide 23: 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 Income before income taxes $303 $334 $354 $392 $1,383 $446 $469 Loss on debt redemption — — 6 — 6 — — Interest expense, net 49 49 44 40 182 39 38 Other ex
Slide 24: Reconciliation of Adj. Corporate Exp. Excluding Depreciation and Special Items
Reconciliation of Adj. Corporate Exp. Excluding Depreciation and Special Items ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Corporate expense $26 $21 $25 $13 $85 $22 $25 Provision for depreciation and amortization 2 2 2 1 7 1 2 Adjusted Corporate expense excluding deprecia
Slide 25: Reconciliation of Adj. EBITDA and Adj. EBITDA Margin Excluding Special Items
Reconciliation of Adj. EBITDA and Adj. EBITDA Margin Excluding Special Items ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q2 YTD 2024 Q2 YTD 2025 Third-party sales $1,824 $1,880 $1,835 $1,891 $7,430 $1,942 $2,053 $3,704 $3,995 Operating income $369 $398 $421 $445 $1,633 $4
Slide 26: Reconciliation of Adj. Operating Income and Margin
Reconciliation of Adj. Operating Income and Margin Both Excluding Special Items ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q2 YTD 2024 Q2 YTD 2025 Third-party sales $1,824 $1,880 $1,835 $1,891 $7,430 $1,942 $2,053 $3,704 $3,995 Operating income $369 $398 $421 $445 $1,633
Slide 27: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow ($ in millions) Q1 2025 Q2 2025 Q2 YTD 2025 Cash provided from operations $253 $446 $699 Capital expenditures (119) (102) (221) Free cash flow $134 $344 $478 The Accounts Receivable Securitization program remains unchanged at $250 outstanding. Free cash flow is a non
Slide 28: Reconciliation of Net Debt to Adjusted EBITDA Excluding Special Items
Reconciliation of Net Debt to Adjusted EBITDA Excluding Special Items ($ in millions) Trailing-12 months ended March 31, 2025 June 30, 2025 Net income $1,256 $1,397 Add: Provision for income taxes 270 264 Other expense, net 54 53 Loss on debt redemption 6 6 Interest expense, net 172 161 Restructurin
Slide 29: Howmet Aerospace
rr) HOWMET Lw.JJ AEROSPACE