Slide 1: Fourth Quarter and Full Year 2024 Earnings Call
Fourth Quarter and Full Year 2024 Earnings Call John Plant: Executive Chairman and Chief Executive Officer Ken Giacobbe: EVP and Chief Financial Officer February 13, 2025
Slide 2: Important Information: Forward-Looking Statements
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: 2024 Highlights
2024 Highlights Revenue and Profitability Q4 2023 Q3 2024 Q4 2024 Q4 YoY FY 2023 FY 2024 FY YoY Excluding Special Items1,2 Revenue $1.731B $1.835B $1.891B +9% $6.640B $7.430B +12% Adj EBITDA1 $398M $487M $507M +27% $1,508M $1,914M +27% Adj EBITDA Margin1 23.0% 26.5% 26.8% +380 bps 22.7% 25.8% +310 b
Slide 5: Q4 2024 Revenue Up 9% YoY, Commercial Aerospace Up 13% YoY
Q4 2024 Revenue Up 9% YoY, Commercial Aerospace Up 13% YoY Q4 2024 Revenue by Market Revenue by Market Q4 FY (% of total) (% change) YoY YoY Commercial Aerospace 53% Commercial Aerospace 13% 20% Defense Aerospace 22% 15% $1.891B Total Commercial Transportation (12%) (7%) Industrial & 15% Revenue Oth
Slide 6: FY 2024 YoY: Revenue Up 12%, Adj EBITDA Up 27%, Adj EPS Up 46%
FY 2024 YoY: Revenue Up 12%, Adj EBITDA1 Up 27%, Adj EPS2 Up 46% ▪ Record Revenue, Adj EBITDA1, Adj EBITDA Margin1 and Adj Earnings Per Share2 Enhanced ▪ Revenue Up 12% YoY, driven by Commercial Aerospace Up 20%, Commercial Transportation Down 7% Profitability FY 2024 ▪ Adj EBITDA1 of $1.9B, Up 27%
Slide 7: Engine Products: Revenue Up 14% Q4 YoY; Adj EBITDA Margin 31.1%
Engine Products: Revenue Up 14% Q4 YoY; Adj EBITDA Margin 31.1% Q4 Revenue by Market +14% (% of total) $933M $945M $972M $852M $885M Industrial & Other 24% 3rd Party Revenue 55% Commercial Aerospace Defense Aerospace 21% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2024 YoY +30% Segment $292M $307M $3
Slide 8: Fastening Systems: Revenue Up 11% Q4 YoY; Adj EBITDA Margin 27.7%
Fastening Systems: Revenue Up 11% Q4 YoY; Adj EBITDA Margin 27.7% Q4 Revenue by Market +11% (% of total) $389M $394M $392M $401M $360M Industrial & Other 9% 3rd Party Commercial Transportation Revenue 14% 66% Commercial Aerospace 11% Defense Aerospace Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2024
Slide 9: Engineered Structures: Revenue Up 13% Q4 YoY; Adj EBITDA Margin 18.5%
Engineered Structures: Revenue Up 13% Q4 YoY; Adj EBITDA Margin 18.5% Q4 Revenue by Market +13% (% of total) $262M $275M $275M $244M $253M Industrial & Other 5% 3rd Party Revenue Defense Aerospace 23% 72% Commercial Aerospace Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2024 YoY +55% Segment $51M + Co
Slide 10: Forged Wheels: Revenue Down 12% Q4 YoY; Adj EBITDA Margin 27.2%
Forged Wheels: Revenue Down 12% Q4 YoY; Adj EBITDA Margin 27.2% Q4 Revenue by Region -12% (% of total) $275M $288M $278M Other $245M $243M 14% 3rd Party Revenue 56% North America Europe 30% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2024 YoY -8% Segment $82M - Commercial Transportation Market Down $
Slide 11: 2025 Guidance
2025 Guidance Q1 2025 Guidance FY 2025 Guidance What we expect in 2025 Low Baseline High Low Baseline High Revenue $1.925B $1.935B $1.945B $7.930B $8.030B $8.130B ▪ FY 2025 Revenue up ~8% vs. FY 2024 ▪ FY 2025 Adj EBITDA1 up ~11% vs. FY 2024 Adj EBITDA1 $515M $520M $525M $2.105B $2.130B $2.155B Adj
Slide 12: Summary
Summary ▪ Revenue of $7.43B, Up 12% YoY, driven by Comm Aerospace Up 20%, Comm Transportation Down 7% Revenue / ▪ Adj EBITDA1 of $1.9B, Up 27% YoY Profit FY 2024 ▪ Adj EBITDA Margin1 of 25.8%, Up ~310 bps YoY ▪ Adj Earnings Per Share2 of $2.69, Up 46% YoY ▪ Record Free Cash Flow3 of $977M with Free
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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 ~$90M ▪ Included in Adj EBITDA Depreciation and Amortization ~$275M Interest Expense ~$160M Operational Tax Rate 20.5% - 21.5% ▪ Cash Tax Rate ~19% ▪ ~$5M Service Costs (included in Adj EBITDA) Pension / OPEB Expense ~$35M ▪ ~$30M Non-
Slide 16: Robust Liquidity; Each Debt Tower Below Free Cash Flow Expectations
Robust Liquidity; Each Debt Tower Below Free Cash Flow Expectations ▪ In December 2024, Paid Down $60M of 2026 US Term Loan with Cash on Hand ▪ In August 2024, Redeemed $577M of 2025 Notes with Cash on Hand, Issued $500M new notes due 2031 ▪ In July 2024, Redeemed $205M of 2024 Notes with Cash on Ha
Slide 17: Reconciliation of Net Income and Diluted EPS Excluding Special Items
Reconciliation of Net Income and Diluted EPS Excluding Special Items ($ in millions, except per-share amounts) Q4 2023 Q3 2024 Q4 2024 FY 2023 FY 2024 Net income $236 $332 $314 $765 $1,155 Diluted Earnings Per Share ("EPS") $0.57 $0.81 $0.77 $1.83 $2.81 Average number of diluted shares 414 410 408 4
Slide 18: Reconciliation of 2024 and 2023 Operational Tax Rate
Reconciliation of 2024 and 2023 Operational Tax Rate ($ in millions) Q4 2024 FY 2023 FY 2024 Effective tax Operational Effective tax Operational Effective tax Operational rate, as Special tax rate, as rate, as Special tax rate, as rate, as Special tax rate, as reported items(1)(3) adjusted reported
Slide 19: Calculation of Segment Markets Revenue
Calculation of Segment Markets Revenue Engine Fastening Engineered Forged ($ in millions) Products Systems Structures Wheels Total Segment Q4 2023 Aerospace - Commercial $474 $227 $183 $— $884 Aerospace - Defense $168 $42 $41 $— $251 Commercial Transportation $— $63 $— $275 $338 Industrial and Other
Slide 20: Calculation of Segment Information
Calculation of Segment Information ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Engine Products Third-party sales $ 795 $ 821 $ 798 $ 852 $ 3,266 $ 885 $ 933 $ 945 $ 972 $ 3,735 Inter-segment sales $ 2 $ 5 $ 5 $ 1 $ 13 $ 2 $ 1 $ 3 $ 1 $ 7 Provision
Slide 21: Calculation of Segment Information (continued)
Calculation of Segment Information (continued) ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Engineered Structures Third-party sales $ 207 $ 200 $ 227 $ 244 $ 878 $ 262 $ 275 $ 253 $ 275 $ 1,065 Inter-segment sales $ — $ 1 $ — $ 2 $ 3 $ 1 $ 3 $ 3 $ 3
Slide 22: Calculation of Total Segment Adj. EBITDA and Adj. EBITDA Margin
Calculation of Total Segment Adj. EBITDA and Adj. EBITDA Margin ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Third-party sales – Engine Products $795 $821 $798 $852 $3,266 $885 $933 $945 $972 $3,735 Third-party sales – Fastening Systems $312 $329 $3
Slide 23: Reconciliation of Total Segment Adj. EBITDA to Income Before Income Taxes
Reconciliation of Total Segment Adj. EBITDA to Income Before Income Taxes ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Income before income taxes $220 $243 $242 $270 $975 $303 $334 $354 $392 $1,383 Loss on debt redemption 1 — — 1 2 — — 6 — 6 Interes
Slide 24: Reconciliation of Adj. Corporate Exp. Excluding Depreciation and Special Items
Reconciliation of Adj. Corporate Exp. Excluding Depreciation and Special Items ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Corporate expense $29 $34 $24 $12 $99 $26 $21 $25 $13 $85 Provision for depreciation and amortization 5 1 1 3 10 2 2 2 1 7 Ad
Slide 25: Reconciliation of Adj. EBITDA Excluding Special Items and Incremental Margin
Reconciliation of Adj. EBITDA and Adj. EBITDA Margin Excluding Special Items and Incremental Margin ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Third-party sales $1,603 $1,648 $1,658 $1,731 $6,640 $1,824 $1,880 $1,835 $1,891 $7,430 Operating income
Slide 26: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Cash provided from operations $177 $397 $244 $480 $1,298 Capital expenditures (82) (55) (82) (102) (321) Free cash flow (a) $95 $342 $162 $378 $977 Net income (b) $243 $266 $332 $314 $1,155 Free cash flow conver
Slide 27: Reconciliation of Net Debt to Adjusted EBITDA Excluding Special Items
Reconciliation of Net Debt to Adjusted EBITDA Excluding Special Items ($ in millions) Trailing-12 months ended December 31, 2024 Net income $1,155 Add: Provision for income taxes 228 Other expense, net 62 Loss on debt redemption 6 Interest expense, net 182 Restructuring and other charges 21 Provisio
Slide 28: Reconciliation of Adj. Operating Income and Margin Both Excluding Special Items
Reconciliation of Adj. Operating Income and Margin Both Excluding Special Items ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Third-party sales $1,603 $1,648 $1,658 $1,731 $6,640 $1,824 $1,880 $1,835 $1,891 $7,430 Operating income $285 $285 $307 $326
Slide 29: Reconciliation of Adjusted Free Cash Flow Conversion
Reconciliation of Adjusted Free Cash Flow Conversion ($ in millions) Q2-Q4 2020 FY 2021 FY 2022 FY 2023 FY 2024 Cash provided from operations $217 $449 $733 $901 $1,298 Capital expenditures (115) (199) (193) (219) (321) Free cash flow ("FCF") (a) $102 $250 $540 $682 $977 Cash receipts from sold rece
Slide 30: Reconciliation of Adjusted Pre-Tax Return on Net Assets (Pre-Tax RONA)
Reconciliation of Adjusted Pre-Tax Return on Net Assets (Pre-Tax RONA) ($ in millions) FY 2023 FY 2024 Operating income $1,203 $1,633 Add: Restructuring and other charges $23 $21 Plant fire reimbursements, net (12) (18) Collective bargaining agreement negotiations 8 — Costs associated with closures,
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