Howmet Aerospace Inc.

Previous 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.

Current wording

In the nine months ended September 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. 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. In October 2025, Boeing and the Federal Aviation Administration jointly agreed to production rate increases for the Boeing 737 MAX from 38 aircraft per month to 42 aircraft per month. 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

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.

Current wording

Sales. Sales were $2,089 in the third quarter of 2025 compared to $1,835 in the third quarter of 2024, and $6,084 in the nine months ended September 30, 2025 compared to $5,539 in the nine months ended September 30, 2024. The increase of $254, or 14%, in the third quarter of 2025 and the increase of $545, or 10%, in the nine months ended September 30, 2025 was primarily due to growth in the commercial aerospace, defense aerospace, and industrial and other markets, including engine 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 66.5% 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.

Current wording

Cost of goods sold (“COGS”). COGS as a percentage of Sales was 65.3% in the third quarter of 2025 compared to 68.3% in the third quarter of 2024 and 66.1% in the nine months ended September 30, 2025 compared to 69.1% in the nine months ended September 30, 2024. The decrease in the third quarter of 2025 was primarily due to higher volumes and favorable product pricing, partially offset by increased net headcount, primarily in the Engine Products segment, in support of expected revenue increases. The decrease in the nine months ended September 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 third quarter and nine months ended September 30, 2025, compared to $6 in the nine months ended September 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

Selling, general administrative, and other expenses (“SG&A”). SG&A expenses were $89 in the second quarter of 2025 compared to $97 in the second quarter of 2024 and $174 in the six months ended June 30, 2025 compared to $185 in the six months ended June 30, 2024. The decrease of $8, or 8%, in the second quarter of 2025 and $11, or 6%, in the six months ended June 30, 2025 was primarily due to lower employment costs.

Current wording

Selling, general administrative, and other expenses (“SG&A”). SG&A expenses were $100 in the third quarter of 2025 compared to $85 in the third quarter of 2024 and $274 in the nine months ended September 30, 2025 compared to $270 in the nine months ended September 30, 2024. The increase of $15, or 18%, in the third quarter of 2025 and $4, or 1%, in the nine months ended September 30, 2025 was primarily driven by higher employment costs and timing of other administrative expenses.

Previous 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.

Current wording

Restructuring and other charges (credits). Restructuring and other credits were less than $1 in the third quarter of 2025 compared to Restructuring and other credits of $1 in the third quarter of 2024. Restructuring and other credits were $4 in the nine months ended September 30, 2025 compared to Restructuring and other charges of $21 in the nine months ended September 30, 2024. Restructuring and other credits for the third quarter of 2025 were primarily due to a gain related to post-closing adjustments from the May 2024 sale of a small U.K. manufacturing facility in Engineered Structures of $1 partially offset by exit related costs, including accelerated depreciation, of $1. Restructuring and other credits for the nine months ended September 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, a reversal of $2 for a layoff reserve related to a prior period, and a gain related to post-closing adjustments from the May 2024 sale of a small U.K. manufacturing facility in Engineered Structures of $1, partially offset by a charge for layoff costs of $3, and exit related costs, including accelerated depreciation, of $1. Restructuring and other credits for the third quarter of 2024 were primarily due to a $1 gain related to post-closing adjustments from the May 2024 sale of a small U.K. manufacturing facility in Engineered Structures. Restructuring and other charges for the nine months ended September 30, 2024 were primarily due to a net loss on the sale of a small U.K. manufacturing facility in Engineered Structures of $13 and layoff costs of $8.

Previous 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.

Current wording

Interest expense, net. Interest expense, net was $37 in the third quarter of 2025 compared to $44 in the third quarter of 2024 and $114 in the nine months ended September 30, 2025 compared to $142 in the nine months ended September 30, 2024. The decrease of $7, or 16%, in the third quarter of 2025 and $28, or 20%, in the nine months ended September 30, 2025 was primarily due to the early redemptions of the 6.875% Notes due May 2025 and the 5.125% Notes due October 2024 during various periods in 2024, and the early prepayment of its USD Term Loan Facility during various periods in 2025, 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 $8.

Previous 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.

Current wording

Other expense, net. Other expense, net was $10 in the third quarter of 2025 compared to $17 in the third quarter of 2024 and $33 in the nine months ended September 30, 2025 compared to $49 in the nine months ended September 30, 2024. The decrease in expense of $7 in the third quarter of 2025 was primarily due to an increase of foreign currency translation gains, net of $3, and a decrease in deferred compensation of $2. The decrease in expense of $16 in the nine months ended September 30, 2025 was primarily due to an increase of foreign currency translation gains, net of $13. 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 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%.

Current wording

Provision for income taxes. The estimated annual effective tax rate, before discrete items, applied to ordinary income was 21.4% in both the third quarter and nine months ended September 30, 2025 compared to 20.9% in both the third quarter and nine months ended September 30, 2024. The tax rate including discrete items was 22.2% in the third quarter of 2025 compared to 6.2% in the third quarter of 2024. A discrete net tax benefit of $1 was recorded in the third quarter of 2025 compared to a discrete net tax benefit of $46 in the third quarter of 2024. The tax rate including discrete items was 19.4% in the nine months ended September 30, 2025 compared to 15.1% in the nine months ended September 30, 2024. A discrete net tax benefit of $27 was recorded in the nine months ended September 30, 2025 compared to a discrete net tax benefit of $58 recorded in the nine months ended September 30, 2024. The 2025 estimated annual effective tax rate was higher than the 2024 rate primarily due to higher state income taxes and non-deductible amounts in 2025 relative to increased profit before taxes. The One Big Beautiful Bill Act (“OBBB”) which was enacted on July 4, 2025, has not had a material impact on our estimated annual effective tax rate in 2025. Management continues to evaluate elections available under the OBBB which could impact the amount and timing of the Company’s U.S. tax deductions, as well as the recognition of its deferred tax assets and related valuation allowances. The Company expects a modest cash tax benefit in 2025. Howmet anticipates that the effective tax rate in 2025 before discrete items will be approximately 21.5%.

Previous 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.

Current wording

Net income. Net income was $385, or $0.95 per diluted share, in the third quarter of 2025 compared to $332, or $0.81 per diluted share, in the third quarter of 2024 and $1,136, or $2.79 per diluted share, in the nine months ended September 30, 2025 compared to $841, or $2.04 per diluted share, in the nine months ended September 30, 2024. The increase of $53 in the third quarter of 2025 and $295 in the nine months ended September 30, 2025 was primarily due to growth in the commercial aerospace, defense aerospace, and industrial and other markets, including engine spares, favorable product pricing, 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

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.

Current wording

Segment Adjusted EBITDA for the Engine Products segment increased $61, or 20%, in the third quarter of 2025 compared to the third 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 265 net headcount in the third quarter of 2025, in support of expected revenue increases.

Previous wording

Segment Adjusted EBITDA for the Engine Products segment increased $133, or 25%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to growth in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets. The segment absorbed approximately 860 net headcount in the six months ended June 30, 2025, in support of expected revenue increases.

Current wording

Segment Adjusted EBITDA for the Engine Products segment increased $194, or 23%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to growth in the commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets. The segment absorbed approximately 1,125 net headcount in the nine months ended September 30, 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, 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.

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 engine 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

Third-party sales for the Fastening Systems segment increased $60, or 8%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to growth in the commercial and defense aerospace markets, partially offset by lower volumes in the commercial transportation market.

Current wording

Third-party sales for the Fastening Systems segment increased $116, or 10%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to growth in the commercial and defense aerospace markets, partially offset by lower volumes in the commercial transportation market.

Previous 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.

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 in 2025, given tariff-related, economic, and regulatory 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 $35, or 7%, in the six months ended June 30, 2025 compared to the six months ended June 30, 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 $71, or 9%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 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

Third-party sales for the Forged Wheels segment decreased $2, or 1%, in the second quarter of 2025 compared to the second quarter of 2024, primarily due to lower volumes in the commercial transportation market, partially offset by an increase in aluminum cost pass through.

Current wording

Third-party sales for the Forged Wheels segment increased $2, or 1%, in the third quarter of 2025 compared to the third quarter of 2024, with lower volumes in the commercial transportation market more than offset by an increase in aluminum cost pass through.

Previous wording

Third-party sales for the Forged Wheels segment decreased $38, or 7%, 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, partially offset by an increase in aluminum cost pass through.

Current wording

Third-party sales for the Forged Wheels segment decreased $36, or 4%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to lower volumes in the commercial transportation market, partially offset by an increase in aluminum cost pass through.

Previous wording

Segment Adjusted EBITDA Margin for the Forged Wheels segment increased approximately 50 basis points in the second quarter of 2025 compared to the second quarter of 2024, primarily due to cost reductions in response to lower volumes in the commercial transportation market, partially offset by higher aluminum cost pass through.

Current wording

Segment Adjusted EBITDA Margin for the Forged Wheels segment increased approximately 350 basis points in the third quarter of 2025 compared to the third quarter of 2024, primarily due to cost reductions, including lower net headcount, in response to lower volumes in the commercial transportation market, as well as favorable foreign currency exchange rates, partially offset by higher aluminum cost pass through.

Previous wording

Segment Adjusted EBITDA for the Forged Wheels segment increased $1, or 1%, in the second quarter of 2025 compared to the second quarter of 2024, primarily due to cost reductions in response to lower volumes in the commercial transportation market.

Current wording

Segment Adjusted EBITDA Margin for the Forged Wheels segment increased approximately 70 basis points in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to cost reductions in response to lower volumes in the commercial transportation market, as well as favorable foreign currency exchange rates, partially offset by higher aluminum cost pass through.

Previous wording

Corporate expense remained flat in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Current wording

Corporate expense remained flat in the third quarter of 2025 and in the nine months ended September 30, 2025 compared to the third quarter of 2024 and the nine months ended September 30, 2024 due to a decrease in plant fire reimbursements from the Barberton Cast House Incident of $6, offset by a decrease in loss on debt redemption of $6.

Previous 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.

Current wording

Cash provided from operations was $1,230 in the nine months ended September 30, 2025 compared to $818 in the nine months ended September 30, 2024. The increase of $412, or 50%, was primarily due to higher operating results of $309, favorable changes in accounts payable of $84, inventories of $44, accrued expenses of $40, which includes compensation-related payments, and increased advanced payments within noncurrent liabilities of $33, partially offset by unfavorable changes in receivables of $83, and prepaid expenses and other current assets of $20.

Previous 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.

Current wording

Cash used for financing activities was $820 in the nine months ended September 30, 2025 compared to $742 in the nine months ended September 30, 2024. The increase of $78, or 11%, was primarily due to decreased additions to debt of $500, increased common stock repurchases of $190, increased dividends paid to common stock shareholders of $55 due to a $0.04 increase in dividends per common share, from $0.08 to $0.12 per share from the third quarter of 2024 to the third quarter of 2025, and decreased proceeds from exercise of employee stock options of $6, partially offset by decreased payments on debt of $665, debt issuance costs of $5, premiums paid on an early redemption of debt of $5, and taxes paid for the net share settlement of equity awards of $3. On an annual basis, the current year debt actions are expected to reduce Interest expense, net by approximately $8.

Previous wording

The Company has an effective shelf registration statement on Form S-3, filed with the SEC, which allows for offerings of debt securities from time to time. The Company may opportunistically issue new debt securities in accordance with securities laws or utilize commercial paper in order to, but not limited to, refinance existing indebtedness.

Current wording

The Company has an effective shelf registration statement on Form S-3, filed with the SEC, which allows for offerings of debt securities from time to time. The Company may opportunistically issue new debt securities in accordance with securities laws or utilize commercial paper in order to, but not limited to, refinance existing indebtedness. The Company continues to evaluate whether, when, and to what extent it may access capital markets, including any plans to refinance the JPY Term Loan Facility due November 2026 or the 5.900% Notes due February 2027. Our ability to refinance our indebtedness or enter into alternative financings in adequate amounts on commercially reasonable terms, or terms acceptable to us, may be affected by circumstances and economic events outside of our control. In the event that a refinancing does not occur before the November 2026 maturity date of the JPY Term Loan Facility, the Company believes that its projected cash on hand and availability under the Credit Facility and its commercial paper program will enable the Company to repay the JPY Term Loan Facility.

Previous wording

On November 26, 2024, S&P upgraded Howmet’s short-term debt rating from A-3 to A-2 and long-term debt rating from BBB- to BBB, and affirmed the current outlook at stable, citing strong demand for commercial aerospace components and debt reduction.

Current wording

On September 8, 2025, S&P upgraded Howmet’s long-term debt rating from BBB to BBB+, and affirmed the current short-term debt rating and outlook at A-2 and stable, respectively, citing strong demand for commercial aerospace components, margin gains, and debt reduction.

Previous 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.

Current wording

Cash used for investing activities was $316 in the nine months ended September 30, 2025 compared to $209 in the nine months ended September 30, 2024. The increase of $107, or 51%, was primarily due to an increase in capital expenditures of $110 primarily related to capacity expansion projects in Engine Products in support of expected revenue increases backed by aerospace and industrial gas turbine customer contracts, and additions to investments of $9, partially offset by $13 in proceeds from sales and redemptions of investments.