Howmet Aerospace Reports Second Quarter 2026 Results

Revenue up 24% Year over Year, Organic Growth 21%; GAAP EPS $1.33, Adjusted EPS $1.33 Strong Second Quarter Cash Generation; $300 Million Deployed for Common Stock Repurchases Full Year 2026 Guidance Increased

Summary Financial Results

Second Quarter

Six Months

Dollars in Millions; Per share amounts in dollars, diluted

2026

2025

Change

2026

2025

Change

Revenue

$2,547

$2,053

24 %

$4,860

$3,995

22 %

GAAP Metrics

Operating Income

$711

$521

36 %

$1,464

$1,015

44 %

Operating Income Margin

27.9 %

25.4 %

250 bps

30.1 %

25.4 %

470 bps

Earnings per Share (EPS)

$1.33

$1.00

33 %

$2.77

$1.84

51 %

Cash from Operations

$583

$446

31 %

$1,036

$699

48 %

Non-GAAP Metrics****1

Adjusted EBITDA

$817

$589

39 %

$1,557

$1,149

36 %

Adjusted EBITDA Margin

32.1 %

28.7 %

340 bps

32.0 %

28.8 %

320 bps

Adjusted Operating Income

$733

$520

41 %

$1,399

$1,011

38 %

Adjusted Operating Income Margin

28.8 %

25.3 %

350 bps

28.8 %

25.3 %

350 bps

Adjusted Earnings per Share (EPS)

$1.33

$0.91

46 %

$2.56

$1.77

45 %

Free Cash Flow

$479

$344

39 %

$838

$478

75 %

1 For more information, see "Non-GAAP Financial Measures" and the schedules to this release.

Key Activity

• Completed acquisition of CAM on April 6, 2026 for approximately $1.8 billion
• Paid down the Company's $186 million Japanese Yen-denominated term loan facility and entered into a separate $300 million cross-currency swap, reducing annualized interest expense by $12 million
• Increased the third quarter common stock dividend by 17% to $0.14 per share

PITTSBURGH, Aug. 6, 2026 /PRNewswire/ -- Howmet Aerospace (NYSE: HWM) announced results today for the second quarter 2026.

Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, "The Howmet team delivered a strong set of results, with revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share all exceeding the high end of guidance. Revenue growth was healthy at 24% year over year and 21% excluding the net impact of the three asset transactions completed this year. Adjusted EBITDA margin expanded 340 basis points year over year to 32.1%, including the absorption of the CAM fastener acquisition in April. Free cash flow performance was excellent at $479 million after $104 million in capital expenditures, supporting the future growth rate of the Company. The free cash flow also enabled $800 million in common stock repurchases year to date through July, an amount already greater than total repurchases in 2025."

Mr. Plant continued, "Looking ahead, Howmet is well positioned, with all our major markets in growth mode. More robust build rates for commercial aircraft are supported by record backlogs, while engine spares needs continue to increase. Defense markets remain healthy, and the focus for missiles, drones and collaborative combat aircraft continues with growth expected over the medium term. Demand in the gas turbines market is extraordinary with customers already revisiting and adding to their demand outlooks. The commercial transportation market has begun to recover, as anticipated."

"Our capital expenditure requirements continue to increase, and we already see the need to increase this further in 2027 to support future organic growth expectations in both the aerospace and gas turbines markets. We closed the CAM acquisition in April, and the integration is on track. Continued healthy cash generation will allow us to achieve pre-CAM leverage levels in short order, with the Company well positioned to consider all paths of capital deployment optionality going forward."

2026 Guidance

Dollars in Millions; Per share amounts in dollars, diluted

Q3 2026 Guidance

FY 2026 Guidance

Low

Baseline

High

Low

Baseline

High

Revenue

$2,565

$2,575

$2,585

$10,000

$10,050

$10,100

Baseline Change

+$400

Adj. EBITDA****1

$825

$830

$835

$3,210

$3,230

$3,250

Adj. EBITDA Margin****1

32.2 %

32.2 %

32.3 %

32.1 %

32.1 %

32.2 %

Baseline Change

+$170 + 40 bps

Adj. Earnings per Share****1

$1.34

$1.35

$1.36

$5.23

$5.27

$5.31

Baseline Change

+$0.33

Free Cash Flow****1

$1,850

$1,900

$1,950

Baseline Change

+$150

1 Reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as the directly comparable GAAP measures, are not available without unreasonable efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP measures, such as gains or losses on sales of assets, taxes, and any future restructuring or impairment charges. In addition, there is inherent variability already included in the GAAP measures, including, but not limited to, price/mix and volume. Howmet Aerospace believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors.

Consolidated Results

Howmet Aerospace reported second quarter 2026 revenue of $2.55 billion, up 24% year over year with organic growth of 21%, and Adjusted EPS of $1.33, up 46% year over year. Revenue was driven by 28% growth in the commercial aerospace market, 11% growth in the defense aerospace market and 38% growth in the gas turbines market.

The Company reported adjusted EBITDA of $817 million, up 39% year over year. The year-over-year increase was driven by strong growth in the commercial aerospace, defense aerospace, and gas turbines markets. Adjusted EBITDA margin was up approximately 340 basis points year over year at 32.1%.

Segment Results

Engine Products

Dollars in Millions

Second Quarter

2026

2025

Change

Third-party sales

$1,373

$1,038

32 %

Segment adjusted EBITDA

$517

$343

51 %

Segment adjusted EBITDA margin

37.7 %

33.0 %

470 bps

Provision for depreciation and amortization

$42

$35

Engine Products reported second quarter 2026 revenue of $1.37 billion, an increase of 32% year over year, driven by growth in the commercial aerospace, defense aerospace, and gas turbines markets. Segment Adjusted EBITDA was $517 million, up 51% year over year, driven by growth in the commercial aerospace, defense aerospace, and gas turbines markets. The Segment absorbed approximately 485 net headcount in the quarter in support of expected revenue increases. Segment Adjusted EBITDA margin increased approximately 470 basis points year over year to 37.7%.

Fastening Systems

Dollars in Millions

Second Quarter

2026

2025

Change

Third-party sales

$589

$431

37 %

Segment adjusted EBITDA

$177

$126

40 %

Segment adjusted EBITDA margin

30.1 %

29.2 %

90 bps

Provision for depreciation and amortization

$20

$12

Fastening Systems reported revenue of $589 million, an increase of 37% year over year, driven by growth in the commercial aerospace and defense aerospace markets. Revenue includes the impacts from the CAM and Brunner acquisitions. Segment Adjusted EBITDA was $177 million, up 40% year over year, driven by growth in the commercial aerospace and defense aerospace markets and including contributions from the acquisitions. Segment Adjusted EBITDA margin increased approximately 90 basis points year over year to 30.1%.

Engineered Structures

Dollars in Millions

Second Quarter

2026

2025

Change

Third-party sales

$269

$308

(13 %)

Segment adjusted EBITDA

$64

$68

(6 %)

Segment adjusted EBITDA margin

23.8 %

22.1 %

170 bps

Provision for depreciation and amortization

$11

$10

Engineered Structures reported revenue of $269 million, a decrease of 13% year over year, driven by the divestiture of the Savannah disk forging facility and product rationalization. Segment Adjusted EBITDA was $64 million, a decrease of 6% year over year on the exit of lower-margin business including the divestiture. Segment Adjusted EBITDA margin increased approximately 170 basis points year over year to 23.8%.

Forged Wheels

Dollars in Millions

Second Quarter

2026

2025

Change

Third-party sales

$316

$276

14 %

Segment adjusted EBITDA

$88

$76

16 %

Segment adjusted EBITDA margin

27.8 %

27.5 %

30 bps

Provision for depreciation and amortization

$10

$10

Forged Wheels reported revenue of $316 million, an increase of 14% year over year, with 8% lower volumes in the commercial transportation market more than offset by an increase in aluminum and other inflationary cost pass through. Volumes increased 7% sequentially from the first quarter 2026, reflecting the beginning of the recovery of the North American commercial transportation market. Segment Adjusted EBITDA was $88 million and increased 16% year over year, driven by cost reductions, including lower net headcount, in response to lower volumes. Segment Adjusted EBITDA margin increased approximately 30 basis points year over year to 27.8% despite the impact of higher aluminum cost pass through.

Completed Acquisition of CAM for Approximately $1.8 Billion

On April 6, 2026, the Company completed the acquisition of Consolidated Aerospace Manufacturing, LLC (CAM) for approximately $1.8 billion from Stanley Black & Decker, Inc. CAM is a leading global designer and manufacturer of precision fasteners, fluid fittings, and other complex, highly engineered products for demanding aerospace and defense applications.

Debt Actions in Second Quarter Reduce Annualized Interest Expense by Approximately $12 Million

On May 22, 2026, the Company repaid the outstanding principal amount of its Japanese Yen-denominated, senior unsecured term loan facility for approximately $186 million with cash on hand. The Company also entered into a cross-currency swap to synthetically convert the outstanding $300 million aggregate principal amount of its 6.75% Bonds due 2028 into a Japanese Yen liability for a fixed interest rate of approximately 3.88%. The combined effect of these debt actions will reduce annualized interest expense by $12 million.

Repurchased $300 Million of Common Stock in Second Quarter 2026; $200 Million in July 2026

In the second quarter 2026, Howmet Aerospace repurchased $300 million of common stock at an average price of $250.61 per share, retiring approximately 1.2 million shares. In July 2026, the Company repurchased an additional $200 million of common stock at an average price of $276.61 per share, retiring approximately 0.7 million shares. Year to date through July, the Company has repurchased $800 million of shares at an average price of $248.29 per share, exceeding the $700 million of shares repurchased in all of 2025. As of August 6, 2026, total share repurchase authorization available was $697 million.

Quarterly Common Stock Dividend Increases 17% to $0.14 Per Share in Third Quarter 2026

On July 27, 2026, the Board of Directors declared a dividend of $0.14 per share on its common stock to be paid on August 25, 2026 to holders of record as of the close of business on August 7, 2026. The quarterly dividend represents a 17% increase from the second quarter 2026 dividend of $0.12 per share.

Howmet Aerospace will hold its quarterly conference call at 10:00 AM Eastern Time on Thursday, August 6, 2026. The call will be webcast via www.howmet.com. The press release and presentation materials will be available at approximately 7:00 AM ET on August 6, via the "Investors" section of the Howmet Aerospace website.

About Howmet Aerospace

Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine, and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 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, visit www.howmet.com.

Dissemination of Company Information

Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.

Howmet Aerospace Inc. and subsidiaries Statement of Consolidated Operations (unaudited) (in U.S. dollar millions, except per-share and share amounts)

Quarter ended

June 30, 2026

March 31, 2026

June 30, 2025

Sales

$ 2,547

$ 2,313

$ 2,053

Cost of goods sold (exclusive of expenses below)

1,596

1,459

1,365

Selling, general administrative, and other expenses

148

111

89

Research and development expenses

8

9

9

Provision for depreciation and amortization

84

74

69

Restructuring and other credits

—

(93)

—

Operating income

711

753

521

Interest expense, net

51

43

38

Other expense, net

11

2

14

Income before income taxes

649

708

469

Provision for income taxes

115

128

62

Net income

$ 534

$ 580

$ 407

Amounts Attributable to Howmet Aerospace Common Shareholders:

Earnings per share - basic(1):

Net income per share

$ 1.33

$ 1.45

$ 1.01

Average number of shares(2)(3)

400

401

404

Earnings per share - diluted(1):

Net income per share

$ 1.33

$ 1.44

$ 1.00

Average number of shares(2)(3)

402

403

406

Common stock outstanding at the end of the period

400

401

404

(1)

In order to calculate both basic and diluted earnings per share through December 31, 2025, preferred stock dividends declared of less than $1 for the quarters presented need to be subtracted from Net income.

(2)

For the quarters presented, the difference between the diluted average number of shares and the basic average number of shares relates to share equivalents associated with outstanding restricted stock unit awards and employee stock options.

(3)

As average shares outstanding are used in the calculation of both basic and diluted earnings per share, the full impact of share repurchases is not fully realized in earnings per share ("EPS") in the period of repurchase since share repurchases may occur at varying points during a period.

Howmet Aerospace Inc. and subsidiaries Consolidated Balance Sheet (unaudited) (in U.S. dollar millions)

June 30, 2026

December 31, 2025

Assets

Current assets:

Cash and cash equivalents

$ 563

$ 742

Receivables from customers, less allowances of $— in both 2026 and 2025

1,040

779

Inventories

2,183

1,849

Prepaid expenses and other current assets

407

409

Total current assets

4,193

3,779

Properties, plants, and equipment, net

2,817

2,593

Goodwill

5,084

4,022

Deferred income taxes

48

40

Intangibles, net

869

457

Other noncurrent assets

240

288

Total assets

$ 13,251

$ 11,179

Liabilities

Current liabilities:

Accounts payable, trade

$ 1,149

$ 845

Accrued compensation and retirement costs

304

343

Taxes, including income taxes

87

77

Accrued interest payable

62

47

Deferred revenue

119

147

Other current liabilities

134

121

Long-term debt due within one year

1

191

Short-term borrowings

450

—

Total current liabilities

2,306

1,771

Long-term debt, less amount due within one year

4,050

2,859

Accrued pension benefits

511

546

Accrued other postretirement benefits

34

38

Other noncurrent liabilities and deferred credits

618

612

Total liabilities

7,519

5,826

Equity

Howmet Aerospace shareholders' equity:

Common stock

400

402

Additional capital

1,919

2,531

Retained earnings

5,110

4,093

Accumulated other comprehensive loss

(1,697)

(1,673)

Total equity

5,732

5,353

Total liabilities and equity

$ 13,251

$ 11,179

Howmet Aerospace Inc. and subsidiaries Statement of Consolidated Cash Flows (unaudited) (in U.S. dollar millions)

Six months ended

June 30,

2026

2025

Operating activities

Net income

$ 1,114

$ 751

Adjustments to reconcile net income to cash provided from operations:

Depreciation and amortization

158

138

Deferred income taxes

9

12

Restructuring and other credits

(93)

(4)

Net realized and unrealized losses

8

11

Net periodic pension cost

23

21

Stock-based compensation

57

39

Other

5

2

Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments:

Increase in receivables

(196)

(170)

Increase in inventories

(165)

(81)

(Increase) decrease in prepaid expenses and other current assets

(53)

6

Increase in accounts payable, trade

279

74

Decrease in accrued expenses

(59)

(47)

Decrease in taxes, including income taxes

(27)

(20)

Pension contributions

(21)

(15)

Increase in noncurrent assets

(7)

(2)

Increase (decrease) in noncurrent liabilities

4

(16)

Cash provided from operations

1,036

699

Financing Activities

Net change in commercial paper

450

—

Additions to debt

1,200

—

Repurchases and payments on debt

(186)

(77)

Debt issuance costs

(12)

—

Repurchases of common stock

(600)

(300)

Dividends paid to shareholders

(97)

(83)

Taxes paid for net share settlement of equity awards

(65)

(44)

Other

(5)

(2)

Cash provided from (used for) financing activities

685

(506)

Investing Activities

Capital expenditures

(198)

(221)

Acquisitions, net of cash acquired

(1,929)

—

Proceeds from the sale of assets and businesses

225

8

Other

2

1

Cash used for investing activities

(1,900)

(212)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

—

—

Net change in cash, cash equivalents and restricted cash

(179)

(19)

Cash, cash equivalents and restricted cash at beginning of period

743

565

Cash, cash equivalents and restricted cash at end of period

$ 564

$ 546

Howmet Aerospace Inc. and subsidiaries Segment Information (unaudited) (in U.S. dollar millions)

1Q25

2Q25

3Q25

4Q25

2025

1Q26

2Q26

Engine Products

Third-party sales

$ 974

$ 1,038

$ 1,087

$ 1,143

$ 4,242

$ 1,253

$ 1,373

Inter-segment sales

$ 2

$ 3

$ 2

$ 1

$ 8

$ 2

$ 3

Provision for depreciation and amortization

$ 33

$ 35

$ 37

$ 39

$ 144

$ 38

$ 42

Segment Adjusted EBITDA

$ 318

$ 343

$ 362

$ 393

$ 1,416

$ 458

$ 517

Segment Adjusted EBITDA Margin

32.6 %

33.0 %

33.3 %

34.4 %

33.4 %

36.6 %

37.7 %

Restructuring and other charges

$ —

$ —

$ —

$ 88

$ 88

$ —

$ —

Capital expenditures

$ 85

$ 74

$ 73

$ 84

$ 316

$ 59

$ 77

Fastening Systems

Third-party sales

$ 412

$ 431

$ 448

$ 454

$ 1,745

$ 471

$ 589

Inter-segment sales

$ —

$ —

$ —

$ 1

$ 1

$ —

$ —

Provision for depreciation and amortization

$ 12

$ 12

$ 12

$ 12

$ 48

$ 13

$ 20

Segment Adjusted EBITDA

$ 127

$ 126

$ 138

$ 139

$ 530

$ 150

$ 177

Segment Adjusted EBITDA Margin

30.8 %

29.2 %

30.8 %

30.6 %

30.4 %

31.8 %

30.1 %

Restructuring and other charges (credits)

$ —

$ 1

$ —

$ (1)

$ —

$ —

$ —

Capital expenditures

$ 10

$ 9

$ 13

$ 20

$ 52

$ 17

$ 11

Engineered Structures

Third-party sales

$ 304

$ 308

$ 307

$ 307

$ 1,226

$ 294

$ 269

Inter-segment sales

$ 7

$ 8

$ 7

$ 4

$ 26

$ 8

$ 8

Provision for depreciation and amortization

$ 13

$ 10

$ 10

$ 10

$ 43

$ 10

$ 11

Segment Adjusted EBITDA

$ 67

$ 68

$ 64

$ 66

$ 265

$ 66

$ 64

Segment Adjusted EBITDA Margin

22.0 %

22.1 %

20.8 %

21.5 %

21.6 %

22.4 %

23.8 %

Restructuring and other credits

$ (4)

$ —

$ —

$ —

$ (4)

$ (93)

$ —

Capital expenditures

$ 6

$ 7

$ 10

$ 13

$ 36

$ 12

$ 8

Forged Wheels

Third-party sales

$ 252

$ 276

$ 247

$ 264

$ 1,039

$ 295

$ 316

Provision for depreciation and amortization

$ 10

$ 10

$ 11

$ 11

$ 42

$ 11

$ 10

Segment Adjusted EBITDA

$ 68

$ 76

$ 73

$ 79

$ 296

$ 90

$ 88

Segment Adjusted EBITDA Margin

27.0 %

27.5 %

29.6 %

29.9 %

28.5 %

30.5 %

27.8 %

Restructuring and other credits

$ —

$ (1)

$ —

$ —

$ (1)

$ —

$ —

Capital expenditures

$ 15

$ 8

$ 9

$ 4

$ 36

$ 3

$ 4

Differences between the total segment and consolidated totals are in Corporate.

Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited) (in U.S. dollar millions)

Reconciliation of Total Segment Adjusted EBITDA to Consolidated Operating income

1Q25

2Q25

3Q25

4Q25

2025

1Q26

2Q26

Operating income

$ 494

$ 521

$ 542

$ 489

$ 2,046

$ 753

$ 711

Segment provision for depreciation and amortization

68

67

70

72

277

72

83

Unallocated amounts:

Restructuring and other (credits) charges

(4)

—

—

88

84

(93)

—

Corporate expense(1)

22

25

25

28

100

32

52

Total Segment Adjusted EBITDA

$ 580

$ 613

$ 637

$ 677

$ 2,507

$ 764

$ 846

Total Segment Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Total Segment Adjusted EBITDA provides additional information with respect to the Company's operating performance and the Company's ability to meet its financial obligations. The Total Segment Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. Howmet's definition of Total Segment Adjusted EBITDA is defined as Operating Income excluding Restructuring and other (credits) charges and Special items and Provision for depreciation and amortization. Special items, including Restructuring and other (credits) charges, are excluded from Adjusted EBITDA.

(1) Pre-tax special items included in Corporate expense

1Q25

2Q25

3Q25

4Q25

2025

1Q26

2Q26

Acquisition and acquisition-related costs(2)

$ —

$ —

$ —

$ 2

$ 2

$ 6

$ 22

Costs (benefits) associated with closures, supply chain disruptions, and other items

1

(1)

—

1

1

—

—

Total Pre-tax special items included in Corporate expense

$ 1

$ (1)

$ —

$ 3

$ 3

$ 6

$ 22

(2) Interest expense of $1 related to the CAM acquisition financing in 1Q26.

Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited), continued (in U.S. dollars millions)

Reconciliation of Free cash flow

Quarter ended

Six months ended

1Q26

2Q26

2Q26

Cash provided from operations

$ 453

$ 583

$ 1,036

Capital expenditures

(94)

(104)

(198)

Free cash flow

$ 359

$ 479

$ 838

Cash provided from (used for) financing activities

$ 1,226

(541)

685

Cash provided from (used for) investing activities

$ 14

(1,914)

(1,900)

The Accounts Receivable Securitization program remains unchanged at $250 outstanding.

Free cash flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures (due to the fact that these expenditures are considered necessary to maintain and expand the Company's asset base and are expected to generate future cash flows from operations). It is important to note that Free cash flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.

Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited), continued (in U.S. dollar millions, except per-share and share amounts)

Reconciliation of Adjusted Net income

Quarter ended

Six months ended

2Q25

1Q26

2Q26

June 30, 2025

June 30, 2026

Net income

$ 407

$ 580

$ 534

$ 751

$ 1,114

Diluted earnings per share ("EPS")

$ 1.00

$ 1.44

$ 1.33

$ 1.84

$ 2.77

Average number of diluted shares

406

403

402

407

402

Special items:

Restructuring and other credits(1)

—

(93)

—

(4)

(93)

Acquisition and acquisition-related costs(2)

—

7

22

—

29

Benefits associated with closures, supply chain disruptions, and other items

(1)

—

—

—

—

Subtotal: Pre-tax special items

(1)

(86)

22

(4)

(64)

Tax impact of Pre-tax special items(3)

—

30

(4)

1

26

Subtotal

(1)

(56)

18

(3)

(38)

Discrete and other tax special items(4)

(35)

(30)

(18)

(26)

(48)

Total: After-tax special items

(36)

(86)

—

(29)

(86)

Adjusted Net income

$ 371

$ 494

$ 534

$ 722

$ 1,028

Adjusted EPS

$ 0.91

$ 1.22

$ 1.33

$ 1.77

$ 2.56

Adjusted Net income and Adjusted EPS are non-GAAP financial measures. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Restructuring and other credits, Discrete tax items, and Other special items (collectively, "Special items"). There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Net income and Diluted EPS determined under GAAP as well as Adjusted Net income and Adjusted EPS.

(1)

Restructuring and other credits for the quarter ended 1Q26 and the six months ended June 30, 2026 included a gain on the sale of the Company's disk forging facility in Savannah, GA within Engineered Structures.

(2)

Includes legal and advisory costs, amortization expense of inventory step-up recorded in accordance with purchase accounting, and other acquisition-related costs for CAM and Brunner. Additionally, interest expense of $1 related to the CAM acquisition financing in 1Q26.

(3)

The Tax impact of Pre-tax special items is based on the applicable statutory rates whereby the difference between such rates and the Company's consolidated estimated annual effective tax rate is itself a Special item.

(4)

Discrete tax items for each period included the following:

•

for 2Q25, benefits related to U.S. accounting method changes for certain prior period transaction and other costs ($17), an excess benefit for stock compensation ($13), and a net benefit related to U.S. federal and state research and development ("R&D") credits claimed for prior years ($5).

•

for 1Q26, an excess benefit for stock compensation ($21);

•

for 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), an excess benefit for stock compensation ($1), and a charge to establish an international withholding tax reserve $16;

•

for the six months ended 2Q25, benefits related to U.S. accounting method changes for certain prior period transaction and other costs ($17), an excess benefit for stock compensation ($14), a net benefit related to U.S. federal and state R&D credits claimed for prior years ($5), a net charge related to the expiration of a tax holiday in China $6, a charge for a tax reserve established in Germany $2, and a net charge for other small items $2; and

•

for the six months ended 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), an excess benefit for stock compensation ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), and a charge to establish an international withholding tax reserve $16.

Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited), continued (in U.S. dollar millions)

Reconciliation of Operational tax rate

Quarter ended

Six months ended

2Q26

2Q26

Effective tax rate, as reported

Special items(1)(2)

Operational tax rate, as adjusted

Effective tax rate, as reported

Special items(1)(2)

Operational tax rate, as adjusted

Income before income taxes

$ 649

$ 22

$ 671

$ 1,357

$ (64)

$ 1,293

Provision for income taxes

$ 115

$ 22

$ 137

$ 243

$ 22

$ 265

Tax rate

17.7 %

20.4 %

17.9 %

20.5 %

Operational tax rate is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both the Effective tax rate determined under GAAP as well as the Operational tax rate.

(1)

Pre-tax special items for 2Q26 included Acquisition and acquisition-related costs $22. Pre-tax special items for the six months ended 2Q26 included Restructuring and other credits ($93) and Acquisition and acquisition-related costs $29.

(2)

Tax Special items includes discrete tax items, the tax impact on Special items based on the applicable statutory rates, the difference between such rates and the Company's consolidated estimated annual effective tax rate and other tax related items. Discrete tax items for each period included the following:

•

for the quarter ended 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), an excess benefit for stock compensation ($1), and a charge to establish an international withholding tax reserve $16.

•

for the six months ended 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), an excess benefit for stock compensation ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), and a charge to establish an international withholding tax reserve $16.

Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited), continued (in U.S. dollars millions)

Reconciliation of Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, and Adjusted EBITDA margin

Quarter ended

Six months ended

2Q25

1Q26

2Q26

June 30, 2025

June 30, 2026

Sales

$ 2,053

$ 2,313

$ 2,547

$ 3,995

$ 4,860

Operating income

$ 521

$ 753

$ 711

$ 1,015

$ 1,464

Operating income margin

25.4 %

32.6 %

27.9 %

25.4 %

30.1 %

Operating income

$ 521

$ 753

$ 711

$ 1,015

$ 1,464

Add:

Restructuring and other credits

$ —

$ (93)

$ —

(4)

(93)

Acquisition and acquisition-related costs(1)

—

6

22

—

28

Benefits associated with closures, supply chain disruptions, and other items

(1)

—

—

—

—

Adjusted operating income

$ 520

$ 666

$ 733

$ 1,011

$ 1,399

Adjusted operating income margin

25.3 %

28.8 %

28.8 %

25.3 %

28.8 %

Provision for depreciation and amortization

69

74

84

138

158

Adjusted EBITDA

$ 589

$ 740

$ 817

$ 1,149

$ 1,557

Adjusted EBITDA margin

28.7 %

32.0 %

32.1 %

28.8 %

32.0 %

Adjusted operating income and Adjusted operating income margin are non-GAAP financial measures. Special items, including Restructuring and other credits, are excluded from Adjusted operating income. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Operating income and Operating income margin determined under GAAP as well as Adjusted operating income and Adjusted operating income margin.

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Management believes that these measures are meaningful to investors because they provide additional information with respect to the Company's operating performance and the Company's ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. The Company's definition of Adjusted EBITDA is defined as Operating Income excluding Restructuring and other credits and Special items and Provision for depreciation and amortization. Special items, including Restructuring and other credits, are excluded from Adjusted EBITDA.

(1) Interest expense of $1 related to the CAM acquisition financing in 1Q26.

Howmet Aerospace Inc. and subsidiaries Calculation of Financial Measures (unaudited), continued (in U.S. dollars millions)

Reconciliation of Organic Revenue

Quarter ended

Six months ended

2Q25

2Q26

% Change

June 30, 2025

June 30, 2026

% Change

Sales

$ 2,053

$ 2,547

24 %

$ 3,995

$ 4,860

22 %

Less:

Net Acquisitions and Divestitures

$ 34

$ 100

$ 65

$ 146

Total: Organic Revenue

$ 2,019

$ 2,447

21 %

$ 3,930

$ 4,714

20 %

Organic revenue is a non-GAAP financial measure. Management believes this measure is meaningful to investors as it presents revenue on a comparable basis for all periods presented excluding the impact of the acquisitions of CAM (acquired April 2026) and Brunner (acquired February 2026) and the sale of the disk forging facility in Savannah, GA (divested March 2026). Management believes that it is appropriate to consider both Sales determined under GAAP as well as Organic Revenue.