On this page of StockholderLetter.com we present the latest annual shareholder letter from Howmet Aerospace Inc. — ticker symbol HWM. Reading current and past HWM letters to shareholders can bring important insights into the investment thesis.
2025 ANNUAL REPORT
HOWMET AEROSPACE Who We Are OUR VISION We are a company of innovators and makers. We are transforming the future with high-performance engineered solutions that are paired with advanced manufacturing expertise. OUR MISSION Leverage our di erentiated technologies to reduce the carbon footprint of our customers by delivering products that enable lighter, more fuel-e cient aircraft and commercial vehicles, and enable sustainable power generation. WHAT WE DO Howmet Aerospace is a manufacturer of high-performance advanced engineered solutions for the aerospace, defense, and transportation markets. Engine Products Fastening Systems Engineered Structures Forged Wheels Produce components enabling quieter, cleaner and more fuel-e cient aerospace engines and gas turbines. Make aerospace and industrial fasteners to hold together aircraft, jet engines, commercial trucks, wind turbines, solar panels, and more. Manufacture advanced, multi-material parts that make aircraft and vehicles lighter and more fuel-e cient. Forge strong aluminum wheels that allow commercial trucks to run lighter and more fuel-e ciently. HOW WE OPERATE As One Team, with One Direction, using One Plan. Value Our People Emphasize health and safety. Foster a speak up culture. Embrace a diverse and inclusive work environment. Support the communities where we operate. Copyright 2026 Howmet Aerospace. All rights reserved. Drive Operational Excellence Lead with integrity. Continuously improve operations. Focus on the few things that matter. Align to win together. Deliver value to shareholders. Win With Our Customers Collaborate to solve customer challenges. Innovate for our customers success. Deliver with quality. Act with our customers in mind.
HOWMET AEROSPACE | 2025 ANNUAL REPORT | 01 2025 OVERVIEW 2025 TOTAL REVENUE $8.3 Billion REVENUE BY MARKET 53% COMMERCIAL AEROSPACE 17% DEFENSE AEROSPACE 15% COMMERCIAL TRANSPORTATION 11% GAS TURBINES 4% GLOBAL PROFILE 25,430 EMPLOYEES 57 OTHER LOCATIONS* 23 COUNTRIES * Not including locations that serve as sales and administrative o ces, distribution centers or warehouses. Howmet Aerospace is a leading global provider of advanced engineered solutions for the aerospace and transportation industries. Headquartered in Pittsburgh, Pennsylvania, the Company s primary businesses focus on jet engine components, aerospace fastening systems and airframe structural components necessary for mission-critical performance and efficiency in aerospace and defense applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company s differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information: www.howmet.com FOLLOW @HOWMETAEROSPACE LINKED IN | FACEBOOK | INSTAGRAM | YOUTUBE
02 2026 Howmet Aerospace Shareholder Letter April 6, 2026 Dear Shareholder, Howmet Aerospace delivered record performance in 2025. Most markets we serve continue to grow, with our top-line performance outpacing them. Revenue for the full year of 2025 was approximately $8.3 billion, up a healthy 11 percent from 2024, driven by significant growth in commercial aerospace, defense aerospace, and gas turbine markets. Commercial aerospace, our largest end market, benefited from accelerating demand for new aircraft and engine spares and now enjoy a record backlog for new, more fuel-efficient aircraft. Adjusted EBITDA* of over $2.4 billion was up 26 percent year-overyear. Adjusted Earnings per Share* was $3.77, up 40 percent year over year. The Company s balance sheet is robust and continues to get stronger. Free cash flow for the year was a record $1.43 billion, with a solid free cash flow conversion of net income* at 93 percent, as we continue to deliver on our long-term target. This impressive cash generation was after record capital investments we are making to support future growth. We reduced gross debt by $265 million in the year, and combined with debt refinancing activity, annualized interest expense will be reduced by approximately $22 million. Net debt to last-twelve-month Adjusted EBITDA* continued to improve, ending the year at a record low of 1.0x. Capital Expenditures were a record $453 million, up approximately $132 million year over year. Approximately 70 percent of CapEx was deployed to our Engine Products business as we expand production capabilities in commercial aerospace and gas turbines. These investments are backed by customer commitments. In 2025, we deployed approximately $1.2 billion of cash to common stock repurchases, redemption of preferred stock, debt paydown and quarterly dividends. Common Stock of $700 million was repurchased at an average price of approximately $161 per share, retiring approximately 4.4 million shares. Howmet s strong balance sheet and growing cash generation provide the foundation for continuing signi cant capital deployment, including opportunities for acquisitions. In 2026, additions were made to the Company s Fastening Systems portfolio. In February of this year, we acquired a privately held business in Wisconsin, Brunner Manufacturing Co. Inc., for approximately $120 million. This acquisition complements product o erings and enhances growth opportunities in industrial fasteners. In addition, in April 2026, the Company acquired Consolidated Manufacturing LLC (CAM) for approximately $1.8 billion. CAM enhances the aerospace fasteners portfolio and positions the Company to expand and grow in the aerospace market. These acquisitions play to the Company s strengths as we allocate capital decisively to businesses that are growing and show the strongest returns on capital and cash generation. Commercial aerospace growth remained strong throughout 2025, with revenue up 12 percent year over year. Growth was driven by the accelerating demand for aircraft and spares for more fuel-e cient aircraft. Commercial aerospace engine spares were up approximately 44 percent for the full year. Defense aerospace growth continued to be robust. Defense aerospace in 2025 was up 21 percent year over year, representing broad based sector growth. In the fourth quarter, Oil and Gas and Industrial Gas Turbine (IGT) were combined to show a single end market: Gas Turbines. The de nition of Oil and Gas versus mid-to-small IGT has become blurred, with multiple end users. Growth has been very strong with revenue up 25 percent for the full year, driven by the increased demand for electricity generation, especially from natural gas. Spares growth was robust across Howmet s markets. The combination of commercial and defense aerospace, and gas turbine spares was up approximately 33 percent for the full year. Spares revenue accelerated throughout 2025 and now represents approximately 21 percent of total revenue, versus approximately 17 percent in 2024.
HOWMET AEROSPACE | 2025 ANNUAL REPORT | 03 Engine Products delivered another record year, with year-over-year revenue up 16 percent to $4.3 billion, Segment Adjusted EBITDA up 25 percent to $1.4 billion, and Segment Adjusted EBITDA Margin at 33.3 percent, up approximately 250 basis points. Moreover, the Engine Products segment added approximately 1,445 net new employees, which positions us well for future growth. Fastening Systems delivered solid year-over-year revenue and Segment Adjusted EBITDA growth, while maintaining a relatively flat headcount. For the full year, revenue was up 11 percent to $1.7 billion. Segment Adjusted EBITDA was up 31 percent to $530 million and Segment Adjusted EBITDA Margin was 30.4 percent, an increase of approximately 460 basis points. be a dependable partner for our customers, our employees, and the communities where we operate. Although we continue to face tari uncertainties and geopolitical dynamics, the markets we serve continue to be healthy, and our strategy remains unchanged. Focus on what we are good at to drive growth above market rate Prioritize major di erentiated products for resource allocation Underpin strategy with commercial and operational discipline Execute a disciplined capital allocation strategy Howmet Aerospace is well-positioned to meet the demands of the marketplace and reliably deliver the mission-critical products our customers demand. Engineered Structures performance continues to improve. For the full year, revenue was up 8 percent year over year to $1.1 billion. Segment Adjusted EBITDA was up 46 percent to $243 million, and Segment Adjusted EBITDA Margin was 21.2 percent, up approximately 560 basis points. Forged Wheels performed well in a soft market with lower volumes. For the full year, revenue was down 1 percent year over year to $1.0 billion. Segment Adjusted EBITDA was up 3 percent to $296 million, and Segment Adjusted EBITDA Margin was up approximately 130 basis points as the team flexed costs and drove higher product mix with premium products to improve profitability. These exceptional results would not be possible without dedicated and focused employees determined to deliver the highest performing products for the customers and markets we serve. We prioritize the safety and growth of our employees, act as a positive neighbor in the communities where we operate and steward our environmental resources responsibly while making sound business investments. We strive to JOHN C. PLANT Executive Chairman and Chief Executive Officer Howmet Aerospace Inc. * See Calculation of Financial Measures at the end of this report for reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures. Adjusted EBITDA, Adjusted Earnings per Share, and Net Income referenced in this letter each excludes special items. References to performance by Howmet Aerospace or its segments as record or all-time high mean its best result since April 1, 2020 when Howmet Aerospace Inc. (previously named for Arconic Inc.) separated from Arconic Corporation.
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 • Benford's Law Stocks icon HWM Benford's Law Stock Score = 90


HWM Shareholder/Stockholder Letter Transcript:

2025 ANNUAL REPORT

HOWMET AEROSPACE
Who We Are
OUR VISION We are a company of innovators and makers.
We are transforming the future with high-performance engineered solutions
that are paired with advanced manufacturing expertise.
OUR MISSION Leverage our di   erentiated technologies to reduce the carbon footprint of our
customers by delivering products that enable lighter, more fuel-e   cient aircraft and commercial vehicles,
and enable sustainable power generation.
WHAT WE DO
Howmet Aerospace is a manufacturer of high-performance advanced engineered
solutions for the aerospace, defense, and transportation markets.
Engine
Products
Fastening
Systems
Engineered
Structures
Forged
Wheels
Produce components
enabling quieter, cleaner
and more fuel-e   cient
aerospace engines and
gas turbines.
Make aerospace and
industrial fasteners to
hold together aircraft, jet
engines, commercial
trucks, wind turbines,
solar panels, and more.
Manufacture advanced,
multi-material parts that
make aircraft and vehicles
lighter and more
fuel-e   cient.
Forge strong aluminum
wheels that allow
commercial trucks to run
lighter and more
fuel-e   ciently.
HOW WE OPERATE As One Team, with One Direction, using One Plan.
Value Our People
Emphasize health and safety.
Foster a    speak up    culture.
Embrace a diverse and inclusive
work environment.
Support the communities where
we operate.
Copyright 2026    Howmet Aerospace. All rights reserved.
Drive Operational Excellence
Lead with integrity.
Continuously improve operations.
Focus on the few things that matter.
Align to win together.
Deliver value to shareholders.
Win With Our Customers
Collaborate to solve customer
challenges.
Innovate for our customers   
success.
Deliver with quality.
Act with our customers in mind.

HOWMET AEROSPACE | 2025 ANNUAL REPORT | 01
2025 OVERVIEW
2025 TOTAL REVENUE
$8.3 Billion
REVENUE BY MARKET
53%
COMMERCIAL
AEROSPACE
17%
DEFENSE
AEROSPACE
15%
COMMERCIAL
TRANSPORTATION
11%
GAS
TURBINES
4%
GLOBAL PROFILE
25,430
EMPLOYEES
57
OTHER
LOCATIONS*
23
COUNTRIES
* Not including locations that serve as sales and administrative o   ces, distribution centers or warehouses.
Howmet Aerospace is a leading global provider of advanced engineered
solutions for the aerospace and transportation industries.
Headquartered in Pittsburgh, Pennsylvania, the Company   s primary businesses
focus on jet engine components, aerospace fastening systems and airframe
structural components necessary for mission-critical performance and
efficiency in aerospace and defense applications, as well as forged aluminum
wheels for commercial transportation.
With approximately 1,200 granted and pending patents, the Company   s
differentiated technologies enable lighter, more fuel-efficient aircraft and
commercial trucks to operate with a lower carbon footprint.
For more information: www.howmet.com
FOLLOW @HOWMETAEROSPACE
LINKED IN | FACEBOOK | INSTAGRAM | YOUTUBE

02
2026 Howmet Aerospace
Shareholder Letter
April 6, 2026
Dear Shareholder,
Howmet Aerospace delivered record performance in
2025. Most markets we serve continue to grow, with
our top-line performance outpacing them.
Revenue for the full year of 2025 was approximately
$8.3 billion, up a healthy 11 percent from 2024,
driven by significant growth in commercial aerospace,
defense aerospace, and gas turbine markets.
Commercial aerospace, our largest end market,
benefited from accelerating demand for new aircraft
and engine spares and now enjoy a record backlog for
new, more fuel-efficient aircraft. Adjusted EBITDA*
of over $2.4 billion was up 26 percent year-overyear. Adjusted Earnings per Share* was $3.77, up 40
percent year over year.
The Company   s balance sheet is robust and continues
to get stronger. Free cash flow for the year was a record
$1.43 billion, with a solid free cash flow conversion of
net income* at 93 percent, as we continue to deliver on
our long-term target. This impressive cash generation
was after record capital investments we are making to
support future growth.
We reduced gross debt by $265 million in the year, and
combined with debt refinancing activity, annualized
interest expense will be reduced by approximately
$22 million. Net debt to last-twelve-month Adjusted
EBITDA* continued to improve, ending the year at a
record low of 1.0x. Capital Expenditures were a
record $453 million, up approximately $132 million
year over year.
Approximately 70 percent of CapEx was deployed to our
Engine Products business as we expand production
capabilities in commercial aerospace and gas turbines.
These investments are backed by customer
commitments.
In 2025, we deployed approximately $1.2 billion of cash
to common stock repurchases, redemption of
preferred stock, debt paydown and quarterly dividends.
Common Stock of $700 million was repurchased at an
average price of approximately $161 per share, retiring
approximately 4.4 million shares.
Howmet   s strong balance sheet and growing cash
generation provide the foundation for continuing
signi   cant capital deployment, including opportunities
for acquisitions. In 2026, additions were made to
the Company   s Fastening Systems portfolio. In
February of this year, we acquired a privately held
business in Wisconsin, Brunner Manufacturing Co.
Inc., for approximately $120 million. This acquisition
complements product o   erings and enhances growth
opportunities in industrial fasteners. In addition,
in April 2026, the Company acquired Consolidated
Manufacturing LLC (CAM) for approximately $1.8
billion. CAM enhances the aerospace fasteners
portfolio and positions the Company to expand and
grow in the aerospace market. These acquisitions
play to the Company   s strengths as we allocate capital
decisively to businesses that are growing and show
the strongest returns on capital and cash generation.
Commercial aerospace growth remained strong
throughout 2025, with revenue up 12 percent year
over year. Growth was driven by the accelerating
demand for aircraft and spares for more fuel-e   cient
aircraft. Commercial aerospace engine spares were
up approximately 44 percent for the full year.
Defense aerospace growth continued to be robust.
Defense aerospace in 2025 was up 21 percent year
over year, representing broad based sector growth.
In the fourth quarter, Oil and Gas and Industrial Gas
Turbine (IGT) were combined to show a single end
market: Gas Turbines. The de   nition of Oil and Gas
versus mid-to-small IGT has become blurred, with
multiple end users. Growth has been very strong with
revenue up 25 percent for the full year, driven by the
increased demand for electricity generation, especially
from natural gas.
Spares growth was robust across Howmet   s markets.
The combination of commercial and defense
aerospace, and gas turbine spares was up
approximately 33 percent for the full year. Spares
revenue accelerated throughout 2025 and now
represents approximately 21 percent of total revenue,
versus approximately 17 percent in 2024.

HOWMET AEROSPACE | 2025 ANNUAL REPORT | 03
Engine Products delivered another record year, with
year-over-year revenue up 16 percent to $4.3 billion,
Segment Adjusted EBITDA up 25 percent to $1.4
billion, and Segment Adjusted EBITDA Margin at
33.3 percent, up approximately 250 basis points.
Moreover, the Engine Products segment added
approximately 1,445 net new employees, which
positions us well for future growth.
Fastening Systems delivered solid year-over-year
revenue and Segment Adjusted EBITDA growth,
while maintaining a relatively flat headcount. For the
full year, revenue was up 11 percent to $1.7 billion.
Segment Adjusted EBITDA was up 31 percent to
$530 million and Segment Adjusted EBITDA Margin
was 30.4 percent, an increase of approximately 460
basis points.
be a dependable partner for our customers, our
employees, and the communities where we operate.
Although we continue to face tari    uncertainties and
geopolitical dynamics, the markets we serve continue
to be healthy, and our strategy remains unchanged.
Focus on what we are good at to drive growth
above market rate
Prioritize major di   erentiated products for
resource allocation
Underpin strategy with commercial and
operational discipline
Execute a disciplined capital allocation strategy
Howmet Aerospace is well-positioned to meet the
demands of the marketplace and reliably deliver the
mission-critical products our customers demand.
Engineered Structures performance continues to
improve. For the full year, revenue was up 8 percent
year over year to $1.1 billion. Segment Adjusted
EBITDA was up 46 percent to $243 million, and
Segment Adjusted EBITDA Margin was 21.2 percent,
up approximately 560 basis points.
Forged Wheels performed well in a soft market with
lower volumes. For the full year, revenue was down
1 percent year over year to $1.0 billion. Segment
Adjusted EBITDA was up 3 percent to $296 million,
and Segment Adjusted EBITDA Margin was up
approximately 130 basis points as the team flexed
costs and drove higher product mix with premium
products to improve profitability.
These exceptional results would not be possible
without dedicated and focused employees determined
to deliver the highest performing products for the
customers and markets we serve. We prioritize the
safety and growth of our employees, act as a positive
neighbor in the communities where we operate and
steward our environmental resources responsibly
while making sound business investments. We strive to
JOHN C. PLANT
Executive Chairman and Chief Executive Officer
Howmet Aerospace Inc.
* See    Calculation of Financial Measures    at the end of this report for reconciliations of non-GAAP financial measures to the most directly comparable GAAP
financial measures. Adjusted EBITDA, Adjusted Earnings per Share, and Net
Income referenced in this letter each excludes special items.
References to performance by Howmet Aerospace or its segments as    record    or
   all-time high    mean its best result since April 1, 2020 when Howmet Aerospace
Inc. (previously named for Arconic Inc.) separated from Arconic Corporation.


shareholder letter icon 4/6/2026 Letter Continued (Full PDF)
 

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