Howmet Aerospace Inc.

Previous wording

In the three months ended March 31, 2025, the Company derived approximately 69% of its revenue from products sold to the commercial and defense aerospace markets. Aircraft production in the aerospace industry continues to grow based on increases in demand for new aircraft and engine spares. Despite the recent tariff announcements, we expect our aerospace demand to continue to grow, including engine spares. Aircraft backlogs are at record levels. Quality control issues at The Boeing Company (“Boeing”) have caused Boeing to produce aircraft at lower rates compared to historical pre-pandemic levels. Boeing has been gradually increasing its production rates, but rates are expected to remain lower than pre-pandemic levels in the near term. For instance, the Federal Aviation Administration stated that it will not approve production rate increases above 38 aircraft per month or additional production lines for the Boeing 737 MAX until it is satisfied that Boeing is in full compliance with required quality control procedures. Boeing production levels have had and are expected to have a material impact on the financial performance of Howmet. The timing and level of future aircraft builds by original equipment manufacturers (“OEM”) are subject to changes and uncertainties, which may cause our future results to differ from prior periods due to changes in product mix in certain segments.

Current wording

In the six months ended June 30, 2025, the Company derived approximately 69% of its revenue from products sold to the commercial and defense aerospace markets. Aircraft production in the aerospace industry continues to grow based on increases in demand for new aircraft and engine spares. Aircraft backlogs remain at record levels despite the recent tariff announcements. We expect our aerospace demand to continue to grow, including engine spares. The Boeing Company (“Boeing”) has been gradually increasing its production rates over the past several months, and Airbus SE (“Airbus”) has also signaled that its production rates are increasing, particularly in narrow body aircraft. The Federal Aviation Administration stated that it will not approve production rate increases above 38 aircraft per month or additional production lines for the Boeing 737 MAX until it is satisfied that Boeing is in full compliance with required quality control procedures. Boeing and Airbus are the primary original equipment manufacturers (“OEMs”) of aircraft airframes, and these companies’ production levels have had and are expected to have a material impact on the financial performance of Howmet. The timing and level of future aircraft builds by OEMs are subject to changes and uncertainties, which may cause our future results to differ from prior periods due to changes in product mix in certain segments.

Previous wording

Recent, ongoing changes in U.S. and international government policies, including executive orders on tariffs and retaliatory trade measures, is expected to impact the pricing of our products, disrupt supply chains, and increase our costs. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties in all segments. While the tariff situation remains fluid, we expect to pass along the costs associated with tariffs to our customers in the form of a cost pass through mechanism. There may be a delay between an increase in our costs and our ability to recover the higher costs that could impact our margins.

Current wording

Recent, ongoing changes in U.S. and international government policies, including executive orders on tariffs and retaliatory trade measures, are expected to impact the pricing of our products, disrupt supply chains, and increase our costs. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties in all segments. While the tariff situation remains fluid, we expect to pass along the costs associated with tariffs to our customers in the form of a cost pass through mechanism. There may be a delay between an increase in our costs and our ability to recover the higher costs that could impact our margins.

Previous wording

Sales. Sales were $1,942 in the first quarter of 2025 compared to $1,824 in the first quarter of 2024. The increase of $118, or 6%, in the first quarter of 2025 was primarily due to growth in the commercial aerospace, defense aerospace, and industrial and other markets, including engines spares, and favorable product pricing, partially offset by lower volumes in the commercial transportation market. Product price increases are in excess of material and inflationary cost pass through to our customers.

Current wording

Sales. Sales were $2,053 in the second quarter of 2025 compared to $1,880 in the second quarter of 2024, and $3,995 in the six months ended June 30, 2025 compared to $3,704 in the six months ended June 30, 2024. The increase of $173, or 9%, in the second quarter of 2025 and the increase of $291, or 8%, in the six months ended June 30, 2025 was primarily due to growth in the commercial aerospace, defense aerospace, and industrial and other markets, including engines spares, favorable product pricing, and cost pass through, partially offset by lower volumes in the commercial transportation market. Product price increases are in excess of material and inflationary cost pass through to our customers.

Previous wording

Cost of goods sold (“COGS”). COGS as a percentage of Sales was 66.4% in the first quarter of 2025 compared to 70.7% in the first quarter of 2024. The decrease in the first quarter of 2025 was primarily due to higher volumes, favorable product pricing, and productivity gains, partially offset by increased net headcount, primarily in the Engine Products segment, in support of expected revenue increases.

Current wording

Cost of goods sold (“COGS”). COGS as a percentage of Sales was 66.5% in the second quarter of 2025 compared to 68.5% in the second quarter of 2024 and 66.5% in the six months ended June 30, 2025 compared to 69.6% in the six months ended June 30, 2024. The decrease in the second quarter and six months ended June 30, 2025 was primarily due to higher volumes, favorable product pricing, and productivity gains, partially offset by increased net headcount, primarily in the Engine Products segment, in support of expected revenue increases. The Company had no COGS net insurance reimbursements in the second quarter and six months ended June 30, 2025, compared to $6 in the second quarter and six months ended June 30, 2024 due to the insurance claim related to substantial equipment damage at the Forged Wheels’ cast house in Barberton, Ohio from a mechanical failure (the “Barberton Cast House Incident”) that was settled in the second quarter of 2024.

Previous wording

Restructuring and other (credits) charges. Restructuring and other credits were $4 in the first quarter of 2025 compared to Restructuring and other charges of less than $1 in the first quarter of 2024. Restructuring and other credits for the first quarter of 2025 were primarily due to a gain on the sale of assets at a small U.K. manufacturing facility in Engineered Structures of $3 and a reversal of $1 for a layoff reserve related to a prior period. Restructuring and other charges for the first quarter of 2024 were primarily due a gain on the sale of assets at a small U.K. manufacturing facility in Engines Products of $1, partially offset by exit related costs, including accelerated depreciation, of $1.

Current wording

Restructuring and other charges (credits). Restructuring and other charges were less than $1 in the second quarter of 2025 compared to Restructuring and other charges of $22 in the second quarter of 2024. Restructuring and other credits were $4 in the six months ended June 30, 2025 compared to Restructuring and other charges of $22 in the six months ended June 30, 2024. Restructuring and other charges for the second quarter of 2025 were primarily due to a charge for layoff costs of $3, partially offset by a gain on the sale of assets at a previously closed facility in Forged Wheels of $2 and a reversal of $1 for a layoff reserve related to a prior period. Restructuring and other credits for the six months ended June 30, 2025 were primarily due to a gain on the sale of assets at a small U.K. manufacturing facility in Engineered Structures of $3, a gain on the sale of assets at a previously closed facility in Forged Wheels of $2, and a reversal of $2 for a layoff reserve related to a prior period, partially offset by a charge for layoff costs of $3. Restructuring and other charges for the second quarter and six months ended June 30, 2024 were primarily due to a loss on the sale of a small U.K. manufacturing facility in Engineered Structures of $14 and layoff costs of $7.

Previous wording

Interest expense, net. Interest expense, net was $39 in the first quarter of 2025 compared to $49 in the first quarter of 2024. The decrease of $10, or 20%, in the first quarter of 2025 was primarily due to the early redemptions of the 6.875% Notes due May 2025 (the “2025 Notes”) during various periods in 2024, the early redemptions of the 5.125% Notes due October 2024 (the “2024 Notes”) during various periods in 2024, and the early partial prepayment of its USD term loan, partially offset by the August 2024 issuance of $500 aggregate principal amount of 4.850% Notes due October 2031 (the “2031 Notes”), net of the cross-currency swap that synthetically converted the 2031 Notes into a lower fixed-interest-rate Euro liability.

Current wording

Interest expense, net. Interest expense, net was $38 in the second quarter of 2025 compared to $49 in the second quarter of 2024 and $77 in the six months ended June 30, 2025 compared to $98 in the six months ended June 30, 2024. The decrease of $11, or 22%, in the second quarter of 2025 and $21, or 21%, in the six months ended June 30, 2025 was primarily due to the early redemptions of the 2025 Notes during various periods in 2024, the early redemptions of the 5.125% Notes due October 2024 during various periods in 2024, and the early partial prepayments of its USD Term Loan Facility, partially offset by the August 2024 issuance of $500 aggregate principal amount of the 2031 Notes, net of the cross-currency swap that synthetically converted the 2031 Notes into a lower fixed-interest-rate Euro liability. On an annual basis, the debt reduction activities in 2025 will decrease Interest expense, net by approximately $4.

Previous wording

Other expense, net. Other expense, net was $9 in the first quarter of 2025 compared to Other expense, net of $17 in the first quarter of 2024. The decrease in expense of $8 in the first quarter of 2025 was primarily due to a decrease in deferred compensation of $3, a decrease in foreign currency losses, net of $3, and a decrease in net realized and unrealized losses of $2. Non-service related net periodic benefit costs related to defined benefit plans and other postretirement benefit plans is expected to be relatively flat for the full year 2025 versus 2024.

Current wording

Other expense, net. Other expense, net was $14 in the second quarter of 2025 compared to $15 in the second quarter of 2024 and $23 in the six months ended June 30, 2025 compared to $32 in the six months ended June 30, 2024. The decrease in expense of $1 in the second quarter of 2025 was primarily due to an increase of foreign currency gains, net of $7 partially offset by an increase in deferred compensation of $5. The decrease in expense of $9 in the six months ended June 30, 2025 was primarily due to an increase of foreign currency gains, net of $10. Non-service related net periodic benefit costs related to defined benefit plans and other postretirement benefit plans is expected to be relatively flat for the full year 2025 versus 2024.

Previous wording

Provision for income taxes. The estimated annual effective tax rate, before discrete items, applied to ordinary income was 20.8% in the first quarter of 2025 compared to 21.7% in the first quarter of 2024. The tax rate including discrete items was 22.9% in the first quarter of 2025 compared to 19.8% in the first quarter of 2024. A discrete net tax charge of $9 was recorded in the first quarter of 2025 compared to a discrete net tax benefit of $7 in the first quarter of 2024. The 2025 estimated annual effective tax rate is lower than the 2024 rate primarily due to a U.S. deduction on Foreign Derived Intangible Income (“FDII”), a net tax benefit related to U.S. federal and state research and development credits, and a U.S. tax benefit recognized for foreign tax credits.

Current wording

Provision for income taxes. The estimated annual effective tax rate, before discrete items, applied to ordinary income was 20.8% in both the second quarter and six months ended June 30, 2025 compared to 21.7% in both the second quarter and six months ended June 30, 2024. The tax rate including discrete items was 13.2% in the second quarter of 2025 compared to 20.4% in the second quarter of 2024. A discrete net tax benefit of $35 was recorded in the second quarter of 2025 compared to a discrete net tax benefit of $5 in the second quarter of 2024. The tax rate including discrete items was 17.9% in the six months ended June 30, 2025 compared to 20.1% in the six months ended June 30, 2024. A discrete net tax benefit of $26 was recorded in the six months ended June 30, 2025 compared to a discrete net tax benefit of $12 recorded in the six months ended June 30, 2024. The 2025 estimated annual effective tax rate is lower than the 2024 rate primarily due to higher U.S. federal and state research and development credits and a higher U.S. deduction on Foreign Derived Intangible Income (“FDII”). The One Big Beautiful Bill Act (“OBBB”), which was enacted on July 4, 2025, is not expected to have a material impact on our estimated annual effective tax rate in 2025. Management is currently evaluating the provisions and available elections of the OBBB which could impact the amount and timing of the Company’s U.S. tax deductions. The Company expects a modest cash tax benefit in 2025. Howmet continues to anticipate that the effective tax rate in 2025 before discrete items will be between 20.5% and 21.5%.

Previous wording

Net income. Net income was $344, or $0.84 per diluted share, in the first quarter of 2025 compared to $243, or $0.59 per diluted share, in the first quarter of 2024. The increase of $101 in the first quarter of 2025 was primarily due to growth in the commercial aerospace, defense aerospace, and industrial and other markets, including engines spares, favorable product pricing, productivity, and a reduction in interest expense due to lower long-term debt levels, partially offset by lower volumes in the commercial transportation market.

Current wording

Net income. Net income was $407, or $1.00 per diluted share, in the second quarter of 2025 compared to $266, or $0.65 per diluted share, in the second quarter of 2024 and $751, or $1.84 per diluted share, in the six months ended June 30, 2025 compared to $509, or $1.23 per diluted share, in the six months ended June 30, 2024. The increase of $141 in the second quarter of 2025 and $242 in the six months ended June 30, 2025 was primarily due to growth in the commercial aerospace, defense aerospace, and industrial and other markets, including engines spares, favorable product pricing, productivity gains, and a reduction in interest expense due to lower long-term debt levels, partially offset by lower volumes in the commercial transportation market.

Previous wording

The Company’s operations consist of four worldwide reportable segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. Segment performance under Howmet’s management reporting system is evaluated based on Segment Adjusted EBITDA. The Company’s Chief Executive Officer, who has been determined to be our Chief Operating Decision Maker (“CODM”), believes that Segment Adjusted EBITDA provides information with respect to the Company’s operating performance and the Company’s ability to meet its financial obligations. Howmet’s definition of Segment Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation and amortization. Special items, including Restructuring and other (credits) charges, are excluded from net margin and Segment Adjusted EBITDA. The Company’s CODM considers forecast-to-actual variances for Segment Adjusted EBITDA when allocating resources across the Company’s reportable segments. Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Differences between the total segment and consolidated totals are in Corporate. (See Note C to the Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for a description of each segment).

Current wording

The Company’s operations consist of four worldwide reportable segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. Segment performance under Howmet’s management reporting system is evaluated based on Segment Adjusted EBITDA. The Company’s Chief Executive Officer, who has been determined to be our Chief Operating Decision Maker (“CODM”), believes that Segment Adjusted EBITDA provides information with respect to the Company’s operating performance and the Company’s ability to meet its financial obligations. Howmet’s definition of Segment Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation and amortization. Special items, including Restructuring and other charges (credits), are excluded from net margin and Segment Adjusted EBITDA. The Company’s CODM considers forecast-to-actual variances for Segment Adjusted EBITDA when allocating resources across the Company’s reportable segments. Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Differences between the total segment and consolidated totals are in Corporate. (See Note C to the Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for a description of each segment).

Previous wording

Third-party sales for the Engine Products segment increased $111, or 13%, in the first quarter of 2025 compared to the first quarter of 2024, primarily due to growth in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets, including engines spares growth.

Current wording

Third-party sales for the Engine Products segment increased $123, or 13%, in the second quarter of 2025 compared to the second quarter of 2024, primarily due to growth in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets, including engines spares growth.

Previous wording

Segment Adjusted EBITDA for the Engine Products segment increased $76, or 31%, in the first quarter of 2025 compared to the first quarter of 2024, primarily due to growth in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets. The segment absorbed approximately 500 net headcount in the first quarter of 2025, in support of expected revenue increases.

Current wording

Segment Adjusted EBITDA for the Engine Products segment increased $57, or 20%, in the second quarter of 2025 compared to the second quarter of 2024, primarily due to growth in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets. The segment absorbed approximately 360 net headcount in the second quarter of 2025, in support of expected revenue increases.

Previous wording

In 2025, as compared to 2024, demand in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets is expected to increase. Governmental policies, laws and regulations, and other economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties.

Current wording

In 2025, as compared to 2024, demand in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets is expected to increase, including engines spares growth. Governmental policies, laws and regulations, and other economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties.

Previous wording

In 2025, as compared to 2024, demand in the commercial aerospace market is expected to increase, including potential new business resulting from a fire at a competitor’s facility. Demand in the commercial transportation market is not expected to recover before mid-year of 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. Governmental policies, laws and regulations, and other economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties.

Current wording

In 2025, as compared to 2024, demand in the commercial and defense aerospace markets is expected to increase, including potential new business resulting from a fire at a competitor’s facility. Demand in the commercial transportation market is not expected to recover before the end of 2025, given tariff-related and economic uncertainty in North America. Governmental policies, laws and regulations, and other economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties.

Previous wording

Third-party sales for the Engineered Structures segment increased $20, or 8%, in the first quarter of 2025 compared to the first quarter of 2024, primarily due to growth in the defense aerospace market. The Engineered Structures segment is focusing on the optimization of its manufacturing footprint and rationalization of product mix in order to maximize profitability.

Current wording

Third-party sales for the Engineered Structures segment increased $15, or 5%, in the second quarter of 2025 compared to the second quarter of 2024, primarily due to growth in the defense aerospace market. The Engineered Structures segment is focusing on the optimization of its manufacturing footprint and rationalization of product mix in order to maximize profitability.

Previous wording

Segment Adjusted EBITDA Margin for the Forged Wheels segment decreased approximately 150 basis points in the first quarter of 2025 compared to the first quarter of 2024, primarily due to lower volumes in the commercial transportation market and higher aluminum and other inflationary cost pass through.

Current wording

Segment Adjusted EBITDA Margin for the Forged Wheels segment decreased approximately 40 basis points in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to lower volumes in the commercial transportation market and higher aluminum cost pass through.

Previous wording

In 2025, as compared to 2024, demand in the commercial transportation markets served by Forged Wheels is not expected to recover before mid-year of 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. Governmental policies, laws and regulations, and other economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties.

Current wording

In 2025, as compared to 2024, demand in the commercial transportation markets served by Forged Wheels is expected to continue to decrease throughout the remainder of the year. Governmental policies, laws and regulations, and other economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties.

Previous wording

See Restructuring and other (credits) charges, Interest expense, net, and Other expense, net discussions above, under “Results of Operations” for reference.

Current wording

See Restructuring and other charges (credits), Interest expense, net, and Other expense, net discussions above, under “Results of Operations” for reference.

Previous wording

Cash provided from operations was $253 in the three months ended March 31, 2025 compared to $177 in the three months ended March 31, 2024. The increase of $76, or 43%, was primarily due to higher operating results of $84 and lower pension contributions of $2, partially offset by higher payments of noncurrent liabilities of $9 and higher working capital of $2. The components of the change in working capital primarily included unfavorable changes in receivables of $62, inventories of $18, and other accrued expenses of $4, which includes compensation related payments, partially offset by taxes, including income taxes of $45, accounts payable of $36, and prepaid expenses and other current assets of $1.

Current wording

Cash provided from operations was $699 in the six months ended June 30, 2025 compared to $574 in the six months ended June 30, 2024. The increase of $125, or 22%, was primarily due to higher operating results of $158, lower payments of noncurrent assets of $5 and lower pension contributions of $2, partially offset by higher working capital of $36 and higher payments of noncurrent liabilities of $4. The components of the change in working capital primarily included unfavorable changes in receivables of $70, taxes, including income taxes of $33, and accrued expenses of $30, which includes compensation related payments, partially offset by favorable changes in accounts payable of $68, inventories of $28, and prepaid expenses and other current assets of $1.

Previous wording

Cash used for financing activities was $167 in the three months ended March 31, 2025 compared to $178 in the three months ended March 31, 2024. The decrease of $11, or 6%, was primarily due to a decrease in common stock repurchases of $25 and a decrease in taxes paid for the net share settlement of equity awards of $12, partially offset by increased dividends paid to common stock shareholders of $21 due to a $0.05 increase in dividends per common share, from $0.05 to $0.10 per share from the first quarter of 2024 to the first quarter of 2025, and a decrease in proceeds from exercise of employee stock options of $4.

Current wording

Cash used for financing activities was $506 in the six months ended June 30, 2025 compared to $301 in the six months ended June 30, 2024. The increase of $205, or 68%, was primarily due to increased common stock repurchases of $90, increased payments on debt of $54, increased dividends paid to common stock shareholders of $41 due to a $0.05 increase in dividends per common share, from $0.05 to $0.10 per share from the second quarter of 2024 to the second quarter of 2025, increased taxes paid for the net share settlement of equity awards of $12, and decreased proceeds from exercise of employee stock options of $5. On an annual basis, the current year debt actions are expected to reduce Interest expense, net by approximately $4.

Previous wording

On July 30, 2024, the Board of Directors of Howmet Aerospace approved the establishment of a 2025 dividend policy to pay cash dividends on the Company’s common stock in 2025 at a rate of 15% plus or minus 5% of net income excluding special items. The declaration of future common stock dividends is subject to the discretion and approval of the Board of Directors of Howmet after the Board’s consideration of all factors it deems relevant and subject to applicable law. The Company may modify, suspend, or cancel the dividend policy in any manner and at any time that it may deem necessary or appropriate. On January 27, 2025, the Board of Directors of Howmet Aerospace declared a quarterly dividend of $0.10 per share on the Company’s common stock.

Current wording

The Board of Directors of Howmet Aerospace established a 2025 dividend policy to pay cash dividends on the Company’s common stock in 2025 at a rate of 15% plus or minus 5% of net income excluding special items. The declaration of future common stock dividends is subject to the discretion and approval of the Board of Directors of Howmet after the Board’s consideration of all factors it deems relevant and subject to applicable law. The Company may modify, suspend, or cancel the dividend policy in any manner and at any time that it may deem necessary or appropriate.

Previous wording

On April 4, 2024, the Company established a commercial paper program under which the Company may issue unsecured commercial paper from time to time up to a maximum aggregate face amount of$1,000. The Company’s commercial paper will be sold on customary terms in the U.S. commercial paper market on a private placement basis. The proceeds of the commercial paper will be used for general corporate purposes. In conjunction with the commercial paper program, the Company was assigned short-term credit ratings by Moody’s Investors Service, Inc., S&P Global Ratings, and Fitch Ratings, Inc.

Current wording

The Company has a commercial paper program under which the Company may issue unsecured commercial paper from time to time up to a maximum aggregate face amount of$1,000. The Company’s commercial paper will be sold on customary terms in the U.S. commercial paper market on a private placement basis. The proceeds of the commercial paper will be used for general corporate purposes. In conjunction with the commercial paper program, the Company was assigned short-term credit ratings by Moody’s Investors Service, Inc., S&P Global Ratings, and Fitch Ratings, Inc.

Previous wording

On August 6, 2024, Moody’s upgraded Howmet’s short-term debt rating from P-3 to P-2, further upgraded Howmet’s long-term debt rating two notches from Baa3 to Baa1, which was previously upgraded to Baa3 from Ba1 on February 29, 2024 citing demand in the markets served by Howmet along with the Company’s improved financial leverage and updated the current outlook from positive to stable.

Current wording

On August 6, 2024, Moody’s upgraded Howmet’s short-term debt rating from P-3 to P-2, further upgraded Howmet’s long-term debt rating two notches from Baa3 to Baa1 citing demand in the markets served by Howmet along with the Company’s improved financial leverage, and updated the current outlook from positive to stable.

Previous wording

Cash used for investing activities was $115 in the three months ended March 31, 2025 compared to $75 in the three months ended March 31, 2024. The increase of $40, or 53%, was primarily due to an increase in capital expenditures of $37 primarily related to capacity expansion projects in Engine Products, and a decrease in proceeds from the sale of assets and businesses of $2.

Current wording

Cash used for investing activities was $212 in the six months ended June 30, 2025 compared to $129 in the six months ended June 30, 2024. The increase of $83, or 64%, was primarily due to an increase in capital expenditures of $84 primarily related to capacity expansion projects in Engine Products in support of expected revenue increases backed by aerospace and industrial gas turbine customer contracts.