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.
2024 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 industrial 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 2025 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 | 2024 ANNUAL REPORT | 01 2024 OVERVIEW 2024 TOTAL REVENUE Billion REVENUE BY MARKET SECTOR COMMERCIAL AEROSPACE 52% GLOBAL PROFILE 23,930 57 22 LOCATIONS* EMPLOYEES INDUSTRIAL AND OTHER DEFENSE AEROSPACE 16% COMMERCIAL TRANSPORTATION 15% 17% 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 1,170 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 | X | FACEBOOK | INSTAGRAM | YOUTUBE
02 2025 Howmet Aerospace Shareholder Letter April 9, 2025 Dear Shareholder, Howmet Aerospace delivered excellent nancial 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. 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. 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. In the commercial aerospace market, the outlook remains healthy. Air passenger tra c continues to grow, led more recently by Europe and Asia Paci c. There has been some recent moderation in North American tra c growth, driven by tari -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-e cient aircraft with reduced carbon emissions. The Company s balance sheet continues to strengthen. Free cash ow for the year was $977 million, with a healthy free cash ow conversion of net income excluding special items at 88 percent, which is in-line with our long-term target of 90 percent and re ected the signi cant capital investments we are making in the business. We reduced debt by $365 million in the year, and combined with other debt re nancing 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, 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 di erentiated, mission-critical aerospace parts that we provide. Spares growth was signi cant in 2024, and we expect robust growth again in 2025, driven by signi cant 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 ghter programs. Defense aerospace spares revenue growth was healthy in 2024, and we expect this trend to continue in 2025 as the eet 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
HOWMET AEROSPACE | 2024 ANNUAL REPORT | 03 from the signi cant increases in the building of data centers. Howmet Aerospace provides critical turbine airfoils for the IGT market, enabling better performance and fuel e ciency 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 tari -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, signi cantly 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 re ected 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 signi cant 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 re ected 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 re ected 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 di erentiated products for resource allocation Underpin strategy with commercial and operational discipline Execute a disciplined capital allocation strategy While tari s 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 di erentiated, 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. * See Calculation of Financial Measures" at the end of this report for reconciliations of non-GAAP nancial measures to the most directly comparable GAAP nancial 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.
 • shareholder letter icon 4/16/2025 Letter Continued (Full PDF)
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HWM Shareholder/Stockholder Letter Transcript:

2024 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
industrial 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 2025    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 | 2024 ANNUAL REPORT | 01
2024 OVERVIEW
2024 TOTAL REVENUE
Billion
REVENUE BY MARKET SECTOR
COMMERCIAL
AEROSPACE
52%
GLOBAL PROFILE
23,930
57
22
LOCATIONS*
EMPLOYEES
INDUSTRIAL
AND OTHER
DEFENSE
AEROSPACE
16%
COMMERCIAL
TRANSPORTATION
15%
17%
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 1,170 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 | X | FACEBOOK | INSTAGRAM | YOUTUBE

02
2025 Howmet Aerospace
Shareholder Letter
April 9, 2025
Dear Shareholder,
Howmet Aerospace delivered excellent    nancial 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.
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.
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.
In the commercial aerospace market, the outlook
remains healthy. Air passenger tra   c continues to
grow, led more recently by Europe and Asia Paci   c.
There has been some recent moderation in North
American tra   c growth, driven by tari   -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-e   cient aircraft with
reduced carbon emissions.
The Company   s balance sheet continues to strengthen.
Free cash    ow for the year was $977 million, with a
healthy free cash    ow conversion of net income
excluding special items at 88 percent, which is in-line
with our long-term target of 90 percent and re   ected
the signi   cant capital investments we are making in
the business.
We reduced debt by $365 million in the year, and
combined with other debt re   nancing 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,
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 di   erentiated, mission-critical
aerospace parts that we provide. Spares growth was
signi   cant in 2024, and we expect robust growth again
in 2025, driven by signi   cant 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    ghter programs. Defense aerospace spares
revenue growth was healthy in 2024, and we expect
this trend to continue in 2025 as the    eet 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

HOWMET AEROSPACE | 2024 ANNUAL REPORT | 03
from the signi   cant increases in the building of data
centers. Howmet Aerospace provides critical turbine
airfoils for the IGT market, enabling better performance
and fuel e   ciency 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 tari   -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, signi   cantly
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 re   ected 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
signi   cant 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
re   ected 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
re   ected 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 di   erentiated products for
resource allocation
Underpin strategy with commercial and
operational discipline
Execute a disciplined capital allocation strategy
While tari   s 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 di   erentiated,
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.
* See    Calculation of Financial Measures" at the end of this report for reconciliations of
non-GAAP    nancial measures to the most directly comparable GAAP    nancial
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.



shareholder letter icon 4/16/2025 Letter Continued (Full PDF)
 

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