You might also like
Howmet Aerospace is a global leader in lightweight metals engineering and manufacturing, specializing in advanced engineered solutions for the aerospace and transportation industries. The company operates in four primary segments, offering products such as investment castings, seamless rolled rings, fastening systems, titanium and aluminum components, and aluminum wheels . These products serve critical roles in the aerospace and transportation sectors, contributing significantly to Howmet's revenue, with the aerospace sector being the largest contributor .
- Engine Products - Provides investment castings and seamless rolled rings for aircraft engines and industrial gas turbines, significantly contributing to the aerospace market .
- Fastening Systems - Produces aerospace and industrial fastening systems, essential for aircraft and commercial transportation vehicles .
- Engineered Structures - Offers titanium and aluminum components for aerospace and defense applications .
- Forged Wheels - Manufactures aluminum wheels for commercial transportation, known for their strength and lightweight properties .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
John C. Plant ExecutiveBoard | Executive Chairman and Chief Executive Officer | Board Member at Jabil Circuit Corporation and Masco Corporation | John C. Plant has been leading Howmet Aerospace since 2019, guiding the company through its transition from Arconic Inc. He has extensive experience in global operations and strategic planning. | View Report → |
Ken Giacobbe Executive | Executive Vice President and Chief Financial Officer | None | Ken Giacobbe joined Howmet Aerospace in 2004 and has served as CFO since 2016, overseeing financial operations and contributing to the company's financial stability. | |
Lola F. Lin Executive | Executive Vice President, Chief Legal and Compliance Officer, and Secretary | None | Lola F. Lin joined Howmet Aerospace in 2021, bringing experience from Airgas, Inc. and Air Liquide USA LLC, where she held senior legal roles. | |
Michael N. Chanatry Executive | Vice President and Chief Commercial Officer | None | Michael N. Chanatry has been with Howmet Aerospace since 2018, with prior experience in supply chain and commercial roles at General Electric and Lockheed Martin. | |
Neil E. Marchuk Executive | Executive Vice President and Chief Human Resources Officer | None | Neil E. Marchuk has been with Howmet Aerospace since 2019, previously holding HR leadership roles at Adient and TRW Automotive. | |
David J. Miller Board | Independent Director | Equity Partner and Senior Portfolio Manager at Elliott Investment Management L.P.; Board Member at Peabody Energy Corporation, Acosta, Inc., Brazilian American Automotive Group, Inc., Futures and Options. | David J. Miller has been a director since 2017, with expertise in capital markets and financial strategy. | |
Gunner S. Smith Board | Independent Director | President of the Roofing business at Owens Corning; President of Asphalt Roofing Manufacturers Association; Board Member at Toledo Zoo and Aquarium. | Gunner S. Smith joined the board in 2023, bringing expertise in business strategy and manufacturing from Owens Corning. | |
James F. Albaugh Board | Independent Lead Director | Board Member at Aloft Aeroarchitects, Belcan Corporation; Chairman of National Aeronautic Association; Trustee at Willamette University and Columbia University. | James F. Albaugh has been a director since 2017, bringing expertise in aerospace, defense, and space sectors. | |
Joseph S. Cantie Board | Independent Director | Board Member at Summit Materials, Inc. and TopBuild Corporation. | Joseph S. Cantie has been a director since 2020, with expertise in finance and risk management from his roles at ZF TRW and TRW Automotive. | |
Robert F. Leduc Board | Independent Director | Board Member at AAR Corporation and JetBlue Airways Corporation. | Robert F. Leduc joined the board in 2020, with extensive aerospace experience from United Technologies Corporation. | |
Sharon R. Barner Board | Independent Director | Board Member at Eskenazi Health Foundation; Trustee at Foundation for Advancement of Diversity in Intellectual Property Law and Syracuse University. | Sharon R. Barner joined the board in 2021, with a background in legal and intellectual property from Cummins Inc. and the U.S. Patent and Trademark Office. | |
Ulrich R. Schmidt Board | Independent Director | None | Ulrich R. Schmidt has been a director since 2016, with a background in finance and aerospace from Spirit Aerosystems and Goodrich Corporation. |
-
Given that aftermarket revenues have increased from 11% in 2019 to 17% in 2024 and are expected to exceed 20% in the next few years, what specific strategies are you implementing to sustain this growth while mitigating risks associated with potential fluctuations in spares demand?
-
With the introduction of the new high-pressure turbine blade for the LEAP-1A, how do you anticipate this will impact your pricing structure and production efficiency, and what challenges might arise in scaling up production to meet both OEM and aftermarket demand?
-
Considering the expected reacceleration in incremental margins in the fourth quarter, can you provide more detail on the drivers of this improvement and discuss the sustainability of these margin levels given the uncertainties and costs associated with hiring and training new employees next year?
-
Despite external forecasts predicting higher aircraft production rates for 2025, you've tempered your expectations due to factors like the gradual restart of Boeing 737 assembly lines and supply chain impacts at Airbus; could you elaborate on these factors and how they might affect your growth targets?
-
Even with the resumption of F-35 deliveries and expected growth in defense aerospace, your forecast for defense revenue growth remains at mid-single digits; what barriers are preventing higher growth in this segment, and are there opportunities to accelerate this growth?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Through its 2016 acquisition of Precision Castparts Corporation and subsidiaries, it competes in the markets for titanium and titanium-based alloys, precision forgings, seamless rolled rings, investment castings, including airfoils, and aerospace fasteners. | |
VSMPO | A competitor in the markets for titanium and titanium-based alloys and precision forgings. |
Its High-Performance Materials & Components segment competes in the markets for titanium and titanium-based alloys and precision forgings. | |
Lisi Aerospace | A competitor in the aerospace fasteners market. |
Aubert & Duval | Part of Eramet Group in France, competes in the precision forgings market. |
Doncasters Group Ltd. | A competitor in the investment castings market. |
Consolidated Precision Products Corp. | Owned by Warburg Pincus and Berkshire Partners, competes in the investment castings market. |
Weber Metals | Part of Otto Fuchs, competes in the precision forgings market. |
Forgital | A competitor in the seamless rings market. |
Frisa | Based in Mexico, competes in the seamless rings market. |
Accuride Corporation | A larger aluminum wheel competitor in the commercial transportation industry. |
Speedline | A member of the Ronal Group, competes in the aluminum wheel market. |
Nippon Steel Corporation | A competitor in the aluminum wheel market. |
Dicastal | A competitor in the aluminum wheel market. |
Alux | A competitor in the aluminum wheel market. |
Wheels India Limited | A competitor in the aluminum wheel market. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
GE Aerospace | Supplies aircraft engine components including airfoils, rings, and rotating parts | Engine Products | Represents 10% of Howmet’s third-party sales in 2024, which is $743 million out of $7,430 million total revenue. |
RTX Corporation | Supplies aircraft engine components including airfoils, rings, and rotating parts | Engine Products | Represents 10% of Howmet’s third-party sales in 2024, which is $743 million out of $7,430 million total revenue. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Camcraft LTD | 2024 | In October 2024, Howmet completed the acquisition of Camcraft LTD for approximately $5 million, acquiring a U.K. facility that manufactures tooling for the investment casting process and expanding its Engine Products segment. |
Recent press releases and 8-K filings for HWM.
- Record Q1 2025 Performance: Achieved revenue of $1.94B (up 6% YoY), net income of $344M, adjusted EBITDA of $560M, adjusted EPS of $0.86, an EBITDA margin of 28.8%, and generated $134M in free cash flow .
- Guidance & Outlook Update: Provided Q2 guidance of approximately $1.99B with net tariff impact under $15M for 2025, and updated full-year expectations with increased adjusted EBITDA, EPS, and free cash flow, along with a Fitch upgrade to BBB+ .
- Capital Deployment: Executed total share repurchases of $225M ($125M in Q1 plus an additional $100M in April) and raised the quarterly dividend to $0.10 per share (up 25%) .
- Robust Segment Growth: Notable performance across engine products, fastening systems, and engineered structures with significant increases in revenue and EBITDA margins .
- Strong Financial Discipline: Maintained a low Net Debt-to-LTM EBITDA ratio of 1.4x, underscoring robust cash management .
- 2024 Annual Report & Shareholders Letter: On April 16, 2025, Howmet Aerospace released its 2024 Annual Report, which includes a shareholders letter dated April 9, 2025 outlining the company’s 2024 achievements and providing a market outlook for 2025.
- ESG Report Availability: The report also highlights the publication of the 2024 Environmental, Social, and Governance Report on the company’s website.
- Capital expenditures increased by about 50% in 2024 to boost capacity, with guidance indicating similarly high investment in 2025 to support future growth and production ramp-up ( ).
- The discussion highlighted mixed OEM signals, with Airbus showing strong demand while Boeing faces inventory corrections, warranting a conservative approach on production assumptions ( , ).
- The company’s aftermarket business, particularly in turbine blades, has risen from 11% to 17% of revenues and is expected to near 20% in the coming years, underscoring a favorable long-term trend ( ).