Howmet Aerospace Annual Report
Letter to Shareholders from Executive Chairman and Chief Executive Officer
April 9, 2025
Dear Shareholder,
Howmet Aerospace delivered excellent financial results in 2024. Additionally, the share price of our common stock increased 102 percent, which outpaced the 23 percent growth in the S&P 500 index.
Revenue for the full year of 2024 was approximately $7.4 billion, up 12 percent from 2023, driven by strong growth in all three of our aerospace segments, and we outgrew each of our respective markets. Adjusted EBITDA* of over $1.9 billion was up 27 percent year-over-year and was an all-time high. Adjusted Earnings per Share* was $2.69 per share, up 46 percent year-over-year.
The Company’s balance sheet continues to strengthen. Free cash flow for the year was $977 million, with a healthy free cash flow conversion of net income excluding special items at 88 percent, which is in-line with our long-term target of 90 percent and reflected the significant capital investments we are making in the business.
We reduced debt by $365 million in the year, and combined with other debt refinancing activity, our actions during 2024 will reduce annualized interest expense by approximately $37 million. Our net debt-to-Adjusted-EBITDA* ratio was 1.4 times for the twelve months ended December 31, 2024. Capital expenditures in the year were $321 million, up approximately $100 million year-over-year, as we continued to invest for growth. We also repurchased $500 million of common stock during 2024 and recently announced a 25 percent increase in the quarterly dividend on our common stock to $0.10 per share.
We deliver these superior results as we operate as one team focused on providing customers with high-performance products. We do this while focusing on our employees’ safety and development, being a good neighbor in the communities where we operate, being conscientious environmental stewards, and ensuring we are making good business investments. We seek to be reliable for our customers, suppliers, employees and our communities.
In the commercial aerospace market, the outlook remains healthy. Air passenger traffic continues to grow, led more recently by Europe and Asia Pacific. There has been some recent moderation in North American traffic growth, driven by tariff-related and economic uncertainty. Nevertheless, Howmet Aerospace’s engine and airframe OEM customers continue to demonstrate growth, with record backlogs supported by under-build of aircraft in recent years and the desire for new, fuel-efficient aircraft with reduced carbon emissions.
Given the easing of some production constraints at the OEMs and in the supply chain, the commercial aerospace industry is positioned for increased aircraft production. We expect to see higher production volumes in 2025, and we are positioned to support our customers with the differentiated, mission-critical aerospace parts that we provide. Spares growth was significant in 2024, and we expect robust growth again in 2025, driven by significant needs from both legacy and current engine programs.
The defense aerospace market, for which our revenue increased 15 percent in 2024 compared to 2023, was also a source of strength, and we expect this continuing into 2025 for both the F-35 aircraft and legacy fighter programs. Defense aerospace spares revenue growth was healthy in 2024, and we expect this trend to continue in 2025 as the fleet of F-35 aircraft continues to expand worldwide.
We expect additional growth in our Industrial and Other end markets, led by Industrial Gas Turbines (IGT), as the outlook for electricity demand is increasing from the significant increases in the building of data centers. Howmet Aerospace provides critical turbine airfoils for the IGT market, enabling better performance and fuel efficiency of these power generating units. Howmet Aerospace is the global market leader in turbine blades.
The commercial truck market entered a cyclical downturn in 2024, as expected. For 2025, we do not expect the market to recover before mid-year 2025. A potential increase in commercial truck builds is less certain in the second half of the year, given tariff-related and economic uncertainty in North America. However, our premium products and strong market position should allow Howmet Aerospace to continue to outperform the overall market.
While production challenges at OEMs impacted new aircraft build rates, engine spares continued to grow. Total spares revenue represented approximately 17% of total Howmet Aerospace revenue in 2024, significantly higher than the 11% of total revenue that spares represented in 2019. We envision spares to continue to be healthy again in 2025 and grow towards 20 percent of total Howmet Aerospace revenue in the coming years.
Engine Products delivered a record year. Revenue of $3.7 billion in 2024 reflected an increase of 14 percent year-over-year. Segment Adjusted EBITDA growth outpaced revenue growth and was up approximately 30 percent year-over-year. Segment Adjusted EBITDA Margin increased to 30.8 percent.
The Engine Products segment grew employee headcount by approximately 1,205 over the course of 2024 to support future growth. We also deployed significant capital in the business to increase production capacity for airfoils, with the investment supported by long-term customer agreements.
Fastening Systems revenue of $1.6 billion in 2024 reflected an increase of 17 percent year-over-year. Segment Adjusted EBITDA growth outpaced revenue growth and was up approximately 46 percent year-over-year. Segment Adjusted EBITDA Margin increased to 25.8 percent as the Fasteners team drove strong commercial and operational improvements in the segment.
Engineered Structures revenue of $1.1 billion in 2024 reflected an increase of 21 percent year-over-year. Segment Adjusted EBITDA growth outpaced revenue growth and was up approximately 47 percent. Segment Adjusted EBITDA Margin increased to 15.6 percent, driven by commercial improvements, optimization of its manufacturing footprint and product rationalization.
Forged Wheels revenue of $1.1 billion in 2024 was down eight percent year-over-year due to lower volumes in the commercial transportation market. Despite lower volumes, the Forged Wheels team delivered a Segment Adjusted EBITDA margin of 27.2 percent, up approximately 30 basis points year-over-year.
In closing, markets continue to be healthy, and our strategy remains unchanged.
- Focus on what we are good at to drive growth above market rate
- Prioritize major differentiated products for resource allocation
- Underpin strategy with commercial and operational discipline
- Execute a disciplined capital allocation strategy
While tariffs have increased uncertainty in the outlook, we still expect to see increasing demand in the commercial aerospace, defense aerospace, and data center-driven industrial/IGT markets in 2025, as we continue our focus on growth above the market rate. We remain focused on delivering our differentiated, mission-critical parts and serving as a reliable supplier to our customers. Howmet Aerospace remains well-positioned for a strong 2025 and beyond.

JOHN C. PLANT
Executive Chairman and Chief Executive Officer
Howmet Aerospace Inc.
*Adjusted EBITDA, Adjusted Earnings per Share, and net debt-to-Adjusted EBITDA are non-GAAP financial measures. See “Calculation of Financial Measures” at the end of the 2024 Annual Report for reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures. Note that each of the measures, Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Earnings per Share, 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.
Certain statements on this website by Howmet Aerospace Inc. 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 containing such words as “anticipates”, “believes”, “could”, “envisions”, “estimates”, “expects”, “forecasts”, “goal”, “guidance”, “intends”, “may”, “outlook”, “plans”, “projects”, “seeks”, “sees”, “should”, “targets”, “will”, “would”, or other words of similar meaning. All statements that reflect Howmet Aerospace’s expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the condition of markets; future financial results or operating performance; future strategic actions; Howmet Aerospace’s strategies, outlook, and business and financial prospects; and any future dividends, debt issuances, debt reduction and repurchases of its common stock. These statements reflect beliefs and assumptions that are based on Howmet Aerospace’s perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: (a) deterioration in global economic and financial market conditions generally, or unfavorable changes in the markets served by Howmet Aerospace, including due to escalating tariff and other trade policies and the resulting impacts on Howmet Aerospace’s supply and distribution chains, as well as on market volatility and global trade generally; (b) the impact of potential cyber attacks and information technology or data security breaches; (c) the loss of significant customers or adverse changes in customers’ business or financial conditions; (d) manufacturing difficulties or other issues that impact product performance, quality or safety; (e) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (f) failure to attract and retain a qualified workforce and key personnel, labor disputes or other employee relations issues; (g) the inability to achieve improvement in or strengthening of financial performance, operations or competitiveness anticipated or targeted; (h) inability to meet increased demand, production targets or commitments; (i) competition from new product offerings, disruptive technologies or other developments; (j) geopolitical, economic, and regulatory risks relating to Howmet Aerospace’s global operations, including geopolitical and diplomatic tensions, instabilities, conflicts and wars, as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (k) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation; (l) failure to comply with government contracting regulations; (m) adverse changes in discount rates or investment returns on pension assets; and (n) the other risk factors summarized in Howmet Aerospace’s Form 10-K for the year ended December 31, 2024 and other reports filed with the U.S. Securities and Exchange Commission. Market projections are subject to the risks discussed above and other risks in the market. The statements contained in a presentation or document are made as of the date of such presentation or document. Howmet Aerospace disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.