Howmet Aerospace Inc. · NYSE:HWM
Howmet Aerospace — Q4 2025 Earnings Presentation
28 slides from Howmet Aerospace's earnings presentation, Feb 12, 2026
Slide 1: Fourth Quarter and Full Year 2025 Earnings Call
Fourth Quarter and Full Year 2025 Earnings Call John Plant: Executive Chairman and Chief Executive Officer Patrick Winterlich: EVP and Chief Financial Officer February 12, 2026
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: 2025 Highlights
2025 Highlights Revenue and Profitability Q4 2024 Q3 2025 Q4 2025 Q4 YoY FY 2024 FY 2025 FY YoY Excluding Special Items1,2 Revenue $1.891B $2.089B $2.168B +15% $7.430B $8.252B +11% Adj EBITDA1 $507M $614M $653M +29% $1,914M $2,416M +26% Adj EBITDA Margin1 26.8% 29.4% 30.1% +330 bps 25.8% 29.3% +350
Slide 5: Q4 2025 Revenue Up 15% YoY, Commercial Aerospace Up 13% YoY
Q4 2025 Revenue Up 15% YoY, Commercial Aerospace Up 13% YoY Q4 2025 Revenue by Market Revenue by Market Q4 FY (% of total) (% change) YoY YoY Commercial Aerospace 53% Commercial Aerospace 13% 12% Defense Aerospace 20% 21% $2.168B Other 4% Total Commercial Transportation 4% (5%) Revenue Gas 12% Turbi
Slide 6: FY 2025 YoY: Revenue Up 11%, Adj EBITDA Up 26%, Adj EPS Up 40%
FY 2025 YoY: Revenue Up 11%, Adj EBITDA1 Up 26%, Adj EPS2 Up 40% ▪ Record Revenue, Adj EBITDA1, Adj EBITDA Margin1, and Adj Earnings Per Share2 ▪ Revenue Up 11% YoY, driven by Commercial Aerospace Up 12% and Defense Aerospace Up 21% Enhanced Profitability ▪ Adj EBITDA1 of $2.42B, Up 26% YoY. Adj EBI
Slide 7: Engine Products: Revenue Up 20% Q4 YoY; Adj EBITDA Margin 34.0%
Engine Products: Revenue Up 20% Q4 YoY; Adj EBITDA Margin 34.0% Q4 Revenue by Market +20% (% of total) Other $1,105M $1,163M $972M $996M $1,056M 3% Gas Turbines 3rd Party 23% Revenue 54% Commercial Aerospace Defense Aerospace 20% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q4 2025 YoY +31% Segment $396M
Slide 8: Fastening Systems: Revenue Up 13% Q4 YoY; Adj EBITDA Margin 30.6%
Fastening Systems: Revenue Up 13% Q4 YoY; Adj EBITDA Margin 30.6% Q4 Revenue by Market +13% (% of total) $431M $448M $454M $401M $412M Other 9% 3rd Party Revenue Commercial Transportation 10% 71% Commercial Aerospace 10% Defense Aerospace Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q4 2025 YoY +25% Segm
Slide 9: Engineered Structures: Revenue Up 4% Q4 YoY; Adj EBITDA Margin 22.0%
Engineered Structures: Revenue Up 4% Q4 YoY; Adj EBITDA Margin 22.0% Q4 Revenue by Market +4% (% of total) $275M $282M $290M $289M $287M Other 5% 3rd Party Revenue Defense Aerospace 30% 65% Commercial Aerospace Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q4 2025 YoY +24% Segment $60M $62M $63M + Defense
Slide 10: Forged Wheels: Revenue Up 9% Q4 YoY; Adj EBITDA Margin 29.9%
Forged Wheels: Revenue Up 9% Q4 YoY; Adj EBITDA Margin 29.9% Q4 Revenue by Region +9% (% of total) $276M $264M Other $243M $252M $247M 16% 3rd Party Revenue 50% North America Europe 34% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q4 2025 YoY +20% Segment $79M - Commercial Transportation Market Down $76M
Slide 11: 2026 Guidance
2026 Guidance Q1 2026 Guidance FY 2026 Guidance What we expect in 2026 Low Baseline High Low Baseline High Revenue $2.225B $2.235B $2.245B $9.000B $9.100B $9.200B ▪ FY 2026 Revenue up ~10% vs. FY 2025 ▪ FY 2026 Adj EBITDA1 up ~14% vs. FY 2025 Adj EBITDA1 $680M $685M $690M $2.710B $2.760B $2.810B Adj
Slide 12: Summary
Summary ▪ Record Revenue, Adj EBITDA1, Adj EBITDA Margin1, and Adj Earnings Per Share2 Revenue / ▪ Revenue of $8.25B, Up 11% YoY, driven by Commercial Aerospace Up 12% and Defense Aerospace Up 21% Profit FY 2025 ▪ Adj EBITDA1 of $2.42B, Up 26% YoY. Adj EBITDA Margin1 of 29.3%, Up ~350 bps YoY ▪ Adj
Slide 13: Howmet Aerospace
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Slide 14: Appendix
Appendix Pl HOWMET UELJ AEROSPACE
Slide 15: 2026 Assumptions
2026 Assumptions Full Year 2026 2026 Comments Corporate Overhead ~$100M ▪ Included in Adj EBITDA Depreciation and Amortization ~$300M ▪ Excludes future potential impact of the Consolidated Aerospace Interest Expense ~$135M Manufacturing, LLC (CAM) acquisition, as well as any potential borrowing, bre
Slide 16: Robust Liquidity; Each Debt Tower Below Annual Free Cash Flow Expectations
Robust Liquidity; Each Debt Tower Below Annual Free Cash Flow Expectations ▪ Q3 YTD 2025: Redeemed ~$140M 2026 US Term Loan with Cash on Hand ▪ Q4 2025: Issued $500M 2032 Notes; Redeemed $625M 2027 Notes ▪ FY 2025: Debt Actions Drive Annualized Interest Expense Savings of ~$22M $800M Jan 3.0% $700 F
Slide 17: Reconciliation of Net Income and Diluted EPS Excluding Special Items
Reconciliation of Net Income and Diluted EPS Excluding Special Items ($ in millions, except per-share amounts) Q4 2024 Q3 2025 Q4 2025 FY 2024 FY 2025 Net income $314 $385 $372 $1,155 $1,508 Diluted Earnings Per Share ("EPS") $0.77 $0.95 $0.92 $2.81 $3.71 Average number of diluted shares 408 405 404
Slide 18: Reconciliation of 2025 and 2024 Operational Tax Rate
Reconciliation of 2025 and 2024 Operational Tax Rate ($ in millions) Q4 2025 FY 2024 FY 2025 Effective tax Special Operational Effective tax Special Operational Effective tax Special Operational rate, as items(1)(3) tax rate, as rate, as items(2)(3) tax rate, as rate, as items(2)(3) tax rate, as rep
Slide 19: Calculation of Segment Markets Revenue
Calculation of Segment Markets Revenue ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Engine Products Aerospace - Commercial $ 492 $ 528 $ 534 $ 537 $ 2,091 $ 549 $ 574 $ 603 $ 629 $ 2,355 Aerospace - Defense $ 185 $ 192 $ 189 $ 200 $ 766 $ 215 $ 217
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 Q4 2025 FY 2025 Engine Products Third-party sales $ 885 $ 933 $ 945 $ 972 $ 3,735 $ 996 $ 1,056 $ 1,105 $ 1,163 $ 4,320 Inter-segment sales $ 2 $ 1 $ 3 $ 1 $ 7 $ 2 $ 2 $ 1 $ 2 $ 7 Provi
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 Q4 2025 FY 2025 Engineered Structures Third-party sales $ 262 $ 275 $ 253 $ 275 $ 1,065 $ 282 $ 290 $ 289 $ 287 $ 1,148 Inter-segment sales $ 1 $ 3 $ 3 $ 3 $ 10 $ 3 $ 3 $ 2
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 Q4 2025 FY 2025 Income before income taxes $303 $334 $354 $392 $1,383 $446 $469 $495 $430 $1,840 Loss on debt redemption — — 6 — 6 — — — 15 15 Int
Slide 23: Reconciliation of Adj. Corporate Exp. Excluding Depreciation and Special Items
Reconciliation of Adj. Corporate Exp. Excluding Depreciation and Special Items ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Corporate expense $26 $21 $25 $13 $85 $22 $25 $25 $28 $100 Provision for depreciation and amortization 2 2 2 1 7 1 2 2 1 6 Ad
Slide 24: Reconciliation of Adj. EBITDA and Adj. EBITDA Margin Both Excluding Special Items
Reconciliation of Adj. EBITDA and Adj. EBITDA Margin Both Excluding Special Items ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Third-party sales $1,824 $1,880 $1,835 $1,891 $7,430 $1,942 $2,053 $2,089 $2,168 $8,252 Operating income $369 $398 $421 $4
Slide 25: Reconciliation of Adj. Operating Income and Margin Both Excluding Special Items
Reconciliation of Adj. Operating Income and Margin Both Excluding Special Items ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Third-party sales $1,824 $1,880 $1,835 $1,891 $7,430 $1,942 $2,053 $2,089 $2,168 $8,252 Operating income $369 $398 $421 $445
Slide 26: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Cash provided from operations $253 $446 $531 $654 $1,884 Capital expenditures (119) (102) (108) (124) (453) Free cash flow (a) $134 $344 $423 $530 $1,431 Net income (b) $344 $407 $385 $372 $1,508 Free cash flow
Slide 27: Reconciliation of Net Debt to Adjusted EBITDA Excluding Special Items
Reconciliation of Net Debt to Adjusted EBITDA Excluding Special Items ($ in millions) Trailing-12 months ended December 31, 2025 Net income $1,508 Add: Provision for income taxes 332 Other expense, net 40 Loss on debt redemption 15 Interest expense, net 151 Restructuring and other charges 84 Provisi
Slide 28: Howmet Aerospace
rr) HOWMET Lw.JJ AEROSPACE