Paul.Luther@howmet.com Rob.Morrison@howmet.com
Investor Media Contact Contact Paul Rob T. Luther Morrison (412) (412) 553-1950 553-2666 Paul.Luther@howmet.com Rob.Morrison@howmet.com
Revenue up 29% Year over Year, Organic Growth 25% ; GAAP EPS $1.42, Adjusted EPS $1.46
Healthy Third Quarter Cash Generation; $500 Million Deployed for Common Stock Repurchases
Full Year 2027 Revenue Guidance: Approximately $11.5 Billion, Up ~12% Year over Year Summary Financial Results
1For more information, see “Non-GAAP Financial Measures” and the schedules to this release.
Repurchased · $500 million of common stock in third quarter 2026; $1.1 billion repurchased year to date On October 28, 2026, the Board of Directors authorized an increase in the · Company’s share repurchase program by $5 billion, resulting in $5.397 billion total authorization Increased · the quarterly common stock dividend by 17% to $0.14 per share in third quarter 2026
PITTSBURGH, PA, October 29, 2026 – Howmet Aerospace (NYSE: HWM) announced results today for the third quarter 2026.
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, “Howmet's performance was solid in all dimensions, with third quarter results exceeding the high end of guidance. Revenue grew 29% year over year and 25% organically, the strongest quarterly growth rate on record for Howmet. Adjusted EBITDA margin expanded 310 basis points year over year to 32.5%. Free cash flow was a robust $562 million after $147 million in capital expenditures, as we continue to invest for growth. The free cash flow supported $500 million in common stock repurchases in the third quarter, lifting year-to-date repurchases to $1.1 billion. The Board of Directors authorized an increase in the share repurchase program by $5 billion to $5.397 billion, reflecting confidence in the Company's strong free cash flow outlook.”
Mr. Plant continued, “Our trajectory points to a healthy fourth quarter and the conclusion of another strong year for Howmet. The commercial aerospace market continues to look robust, underpinned by the extraordinary aircraft order backlog that supports expected production volume increases throughout 2027 and beyond. We do not expect any material impact on our spares demand from the Middle East conflict given the backlog of engine shop visits and requirements to support next generation narrowbody engines. Defense markets remain solid, with further spares needs and likely increases in legacy fighter builds. Of particular note was the 45% year-over-year gas turbines revenue growth, which demonstrates both the extraordinary addition to output and, even more importantly, the increase in market share. Demand in the gas turbines market continues to strengthen with customers looking to increase volumes beyond previous expectations, which supports the outlook beyond 2028. Our capital expenditure plans envisage elevated spend beyond 2027 to support growth in both aerospace and defense as well as gas turbines. Our disciplined focus on free cash flow conversion will remain steadfast throughout this elevated investment period. The commercial transportation market continues to experience recovery in North America. Looking forward to 2027, we envisage revenue of approximately $11.5 billion, representing approximately 12% growth from the increased 2026 guidance.”
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.
Howmet Aerospace reported third quarter 2026 revenue of $2.70 billion, up 29% year over year with organic growth of25%, and Adjusted EPS of $1.46, up 54% year over year. Revenue was driven by 32% growth in the commercial aerospace market, 10% growth in the defense aerospace market, 45% growth in the gas turbines market, and 28% growth in the commercial transportation market.
The Company reported Adjusted EBITDA of $879 million, up 43% year over year. The year-over-year increase was driven by growth in the commercial aerospace, defense aerospace, gas turbines, and commercial transportation markets. Adjusted EBITDA margin was up approximately 310 basis points year over year at 32.5%.
Engine Products reported third quarter 2026 revenue of $1.45 billion, an increase of 33% year over year, driven by growth in the commercial aerospace and gas turbines markets. Segment Adjusted EBITDA was $567 million, up 57% year over year, driven by growth in the commercial aerospace and gas turbines markets. The Segment absorbed net headcount of approximately 520 in the quarter in support of expected future revenue increases. Segment Adjusted EBITDA margin increased approximately 580 basis points year over year to 39.1%.
Fastening Systems reported revenue of$630 million, an increase of 41% year over year, driven by growth in the commercial aerospace and defense aerospace markets. Excluding the CAM and Brunner acquisitions, revenue grew 10%. Segment Adjusted EBITDA was$185 million, up 34% year over year, driven by growth in the commercial aerospace and defense aerospace markets and including contributions from the acquisitions. Segment Adjusted EBITDA margin decreased approximately 140 basis points year over year to 29.4%, reflecting impact from the CAM acquisition.
Engineered Structures reported revenue of $295 million, a decrease of 4% year over year, principally driven by the divestiture of the Savannah disk forging facility. Excluding the Savannah divestiture, revenue grew8%. Segment Adjusted EBITDA was $70 million, up 9% year over year, on the exit of lower-margin business including the divestiture. Segment Adjusted EBITDA margin increased approximately 290 basis points year over year to 23.7%.
Forged Wheels reported revenue of $327 million, an increase of 32% year over year, driven by higher volumes in the commercial transportation market and an increase in aluminum cost pass through. Segment Adjusted EBITDA was $86 million and increased 18% year over year, driven by favorable volume. Segment Adjusted EBITDA margin decreased approximately 330 basis points year over year to 26.3%, due to the impact of higher aluminum cost pass through.
Repurchased $500 Million of Common Stock in Third Quarter 2026; $1.1B Year To Date
In the third quarter 2026, Howmet Aerospace repurchased $500 million of common stock at an average price of $264.77 per share, retiring approximately 1.9 million shares. Year to date throughOctober 28, 2026, the Company has repurchased$1.1 billion of shares at an average priceof $250.72 per share.
Board of Directors Approved a $5 Billion Increase to the Share Repurchase Program
On October 28, 2026 the Board of Directors authorized an increase in the Company's share repurchase program by $5 billion, which, together with the remaining authorization of $397 million, results in authorization to repurchase up to $5.397 billion of the Company's outstanding stock.
In the third quarter 2026, the Company paid down $60 million of borrowings on its commercial paper program. At the end of the quarter, $390 million of the $1 billion commercial paper program was outstanding.
Quarterly Common Stock Dividend Increas es 17% to $0.14 Per Share in Third Quarter 2026
On July27, 2026, the Board of Directors declared a dividend of $0.14 per share on its common stock, which was paid on August25, 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, October 29, 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 October 29, via the “Investors” section of the Howmet Aerospace website.
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.
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at .
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "anticipates," "believes," "could," “envisions,” "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "points," “poised,” "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning. All statements that reflect Howmet Aerospace’s expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the condition of markets; future financial results or operating performance; future strategic actions; Howmet Aerospace's strategies, outlook, and business and financial prospects; any future dividends, debt issuances, debt reduction and repurchases of its common stock; and statements regarding any acquisitions, including expected benefits. These statements reflect beliefs and assumptions that are based on Howmet Aerospace’s perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: (a) deterioration in global economic and financial market conditions generally, or unfavorable changes in the markets served by Howmet Aerospace, including due to escalating tariff and other trade policies and energy costs, and the resulting impacts on Howmet Aerospace’s supply and distribution chains, as well as on market volatility and global trade generally; (b) the impact of potential cyber attacks and information technology or data security breaches; (c) the loss of significant customers or adverse changes in customers’ business or financial conditions; (d) manufacturing difficulties or other issues that impact product performance, quality or safety; (e) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (f) failure to attract and retain a qualified workforce and key personnel, labor disputes or other employee relations issues; (g) the inability to achieve anticipated or targeted financial performance, operations or competitiveness, or realization of expected benefits from acquisitions, including the effective integration of acquired businesses; (h) inability to meet increased demand, production targets or commitments; (i) competition from new product offerings, disruptive technologies or other developments; (j) geopolitical, economic, and regulatory risks relating to Howmet Aerospace’s global operations, including geopolitical and diplomatic tensions, instabilities, conflicts and wars, as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (k) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation; (l) failure to comply with government contracting regulations; (m) adverse changes in discount rates or investment returns on pension assets; and (n) the other risk factors summarized in Howmet Aerospace’s Form 10-K for the year ended December 31, 2025 and other reports filed with the U.S. Securities and Exchange Commission. Market projections are subject to the risks discussed above and other risks in the market. Under its share repurchase program, the Company may repurchase shares from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements and other considerations. The program has no stated expiration, and the Company is not obligated to repurchase any specific number of shares or to do so at any particular time. The declaration of any future dividends is subject to the discretion and approval of the Board of Directors after the Board’s consideration of all factors it deems relevant and subject to applicable law. The Company may modify, suspend, or cancel its share repurchase program or any dividend policy in any manner and at any time that it may deem necessary or appropriate. Credit ratings are not a recommendation to buy or hold any Howmet Aerospace securities, and they may be revised or revoked at any time at the sole discretion of the credit rating organizations. The statements in this release are made as of the date of this release, even if subsequently made available by Howmet Aerospace on its website or otherwise. Howmet Aerospace disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
Some of the information included in this release is derived from Howmet Aerospace’s consolidated financial information but is not presented in Howmet Aerospace’s financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain of these data are considered “non-GAAP financial measures” under SEC rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Reconciliations to the most directly comparable GAAP financial measures and management’s rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.
In this press release, the acronym “FY” means “full year”; “Q” means “quarter”; “YoY” means year over year; “Adj.” means adjusted; Howmet, Howmet Aerospace, or the Company means Howmet Aerospace Inc.; "organic growth" refers to the Company's revenue growth excluding the impact of acquisitions and divestitures; and references to performance by Howmet Aerospace or its segments as “record” mean its best result since April 1, 2020 when Howmet Aerospace Inc. (previously named Arconic Inc.) separated from Arconic Corporation.
Quarter September 30, June 30, September 30, ended 2026 2026 2025 ────────────────────────────────────────────────────────────────────────────── Sales $ 2,703 $ 2,547 $ 2,089 Cost of goods sold (exclusive 1,700 1,596 1,365 of expenses below) Selling, general administrative, 120 148 100 and other expenses Research and development 11 8 10 expenses Provision for depreciation 93 84 72 and amortization Restructuring and other 2 — — charges Operating 777 711 542 income Interest 48 51 37 expense, net Other expense, 8 11 10 net Income before 721 649 495 income taxes Provision for 154 115 110 income taxes Net income $ 567 $ 534 $ 385 Amounts Attributable to Howmet Aerospace Common Shareholders: Earnings per share - basic(1): Net income per $ 1.42 $ 1.33 $ 0.96 share Average number of 398 400 403 shares(2)(3) Earnings per share - diluted(1): Net income per $ 1.42 $ 1.33 $ 0.95 share Average number of 400 402 405 shares(2)(3) Common stock outstanding at 398 400 403 the end of the period
In order to calculate both basic and diluted earnings per (1) share through December 31, 2025, preferred stock dividends declared of less than $1 for the quarters presented need to be subtracted from Net income.
For the quarters presented, the difference between the diluted average number of shares and the basic average number of shares relates (2) to share equivalents associated with outstanding restricted stock unit awards and employee stock options.
As average shares outstanding are used in the calculation of both basic and diluted earnings per share, the full impact of share (3) 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.
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Assets Current assets: Cash and cash equivalents $ 507 $ 742 Receivables from customers, less allowances 1,116 779 of $— in both 2026 and 2025 Inventories 2,113 1,849 Prepaid expenses 381 409 and other current assets Total current assets 4,117 3,779 Properties, 2,912 2,593 plants, and equipment, net Goodwill 5,098 4,022 Deferred income 48 40 taxes Intangibles, 855 457 net Other 250 288 noncurrent assets Total assets $ 13,280 $ 11,179 Liabilities Current liabilities: Accounts payable, trade $ 969 $ 845 Accrued compensation and retirement 373 343 costs Taxes, including income taxes 88 77 Accrued interest payable 54 47 Deferred revenue 204 147 Other current liabilities 136 121 Long-term debt due within one 1 191 year Short-term borrowings 390 — Total current liabilities 2,215 1,771 Long-term debt, 4,052 2,859 less amount due within one year Accrued pension 493 546 benefits Accrued other 33 38 postretirement benefits Other noncurrent liabilities and 725 612 deferred credits Total liabilities 7,518 5,826 Equity Howmet Aerospace shareholders’ equity: Common stock 398 402 Additional capital 1,438 2,531 Retained earnings 5,621 4,093 Accumulated other (1,695 ) (1,673 ) comprehensive loss Total equity 5,762 5,353 Total liabilities $ 13,280 $ 11,179 and equity
Nine months ended Operating September 30, activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net $ 1,681 $ 1,136 income Adjustments to reconcile net income to cash provided from operations: Depreciation and 251 210 amortization Deferred income taxes 48 75 Restructuring and other (91 ) (4 ) credits Net realized and 14 17 unrealized losses Net periodic pension cost 34 31 Stock-based compensation 80 59 Other 8 3 Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: Increase in receivables (284 ) (180 ) Increase in inventories (117 ) (95 ) Increase in prepaid expenses and other (40 ) (11 ) current assets Increase in accounts 68 17 payable, trade Increase (decrease) in 79 (2 ) accrued expenses Decrease in taxes, including income (23 ) (3 ) taxes Pension contributions (36 ) (30 ) Increase in noncurrent (8 ) (6 ) assets Increase in noncurrent 81 13 liabilities Cash provided 1,745 1,230 from operations Financing Activities Net change in 390 — commercial paper Additions to 1,200 — debt Repurchases (186 ) (140 ) and payments on debt Debt issuance (12 ) — costs Repurchases of common (1,100 ) (500 ) stock Dividends paid (153 ) (131 ) to shareholders Taxes paid for net share settlement of (68 ) (45 ) equity awards Other (6 ) (4 ) Cash provided from (used for) financing 65 (820 ) activities Investing Activities Capital expenditures (345 ) (329 ) Acquisitions, (1,929 ) — net of cash acquired Proceeds from the sale of assets and 226 9 businesses Additions to — (9 ) investments Sale of investments 2 13 Cash used (2,046 ) (316 ) for investing activities Effect of exchange rate changes 1 1 on cash, cash equivalents and restricted cash Net change in cash, cash equivalents and (235 ) 95 restricted cash Cash, cash equivalents and 743 565 restricted cash at beginning of period Cash, cash equivalents and restricted $ 508 $ 660 cash at end of period
Reconciliation of Total Segment Adjusted EBITDA to Consolidated Operating income
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, Provision for depreciation and amortization, and Special items. Special items, including Restructuring and other (credits) charges, are excluded from Adjusted EBITDA.
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.
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 charges (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.
Restructuring and other credits for the nine months ended (1) September 30, 2026 included a gain on the sale of the Company's disk forging facility in Savannah, GA within Engineered Structures.
Includes legal and advisory costs, amortization expense of inventory step-up recorded in accordance with purchase accounting, and (2) other acquisition-related costs for CAM and Brunner. Additionally, interest expense of $1 related to the CAM acquisition financing in 1Q26.
The Tax impact of Pre-tax special items is based on the applicable (3) statutory rates whereby the difference between such rates and the Company’s consolidated estimated annual effective tax rate is itself a Special item.
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 3Q26, a charge related to a foreign pension plan termination $5, a charge for a valuation allowance · related to U.S. foreign tax credits $3, a charge for an international withholding tax reserve $1, an excess benefit for stock compensation ($2), and a net benefit for other small items ($1);
for the nine months ended 3Q25, 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 research and development 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 $1; and
for the nine months ended 3Q26, an excess benefit for stock compensation ($24), a benefit to release a valuation allowance related to U.S. foreign tax credits ($19), 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), a net benefit for other small items ($1), a charge to establish an international withholding tax reserve $17, and a charge related to a foreign pension plan termination $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.
Pre-tax special items for 3Q26 included Acquisition and acquisition-related costs $7 and Restructuring and other charges $2. Pre-tax special items (1) for the nine months ended 3Q26 included Restructuring and other credits ($91) and Acquisition and acquisition-related costs $36.
Tax Special items includes discrete tax items, the tax impact on Special items based on the applicable statutory rates, the (2) 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 3Q26, a charge related to a foreign pension plan termination $5, a charge for · a valuation allowance related to U.S. foreign tax credits $3, a charge for an international withholding tax reserve $1, an excess benefit for stock compensation ($2), and a net benefit for other small items ($1);
for the nine months ended 3Q26, an excess benefit for stock compensation ($24), a benefit to release a valuation allowance related to U.S. foreign tax credits ($19), 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), a charge to establish an international withholding tax reserve $17, a charge related to a foreign pension plan termination $5, and a net benefit for other small items ($1).
Reconciliation of Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, and Adjusted EBITDA margin
Adjusted operating income and Adjusted operating income margin are non-GAAP financial measures. Special items, including Restructuring and other charges (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 charges (credits), Provision for depreciation and amortization, and Special items. Special items, including Restructuring and other charges (credits), are excluded from Adjusted EBITDA.
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.
Full text with the tables
Exhibit 99.1
FOR IMMEDIATE RELEASE
Investor Media
Contact Contact
Paul Rob
T. Luther Morrison
(412) (412)
553-1950 553-2666
Paul.Luther@howmet.com Rob.Morrison@howmet.com
Howmet Aerospace Reports Third Quarter 2026 Results
Revenue up 29% Year over Year, Organic Growth 25% ; GAAP EPS $1.42, Adjusted EPS
$1.46
Healthy Third Quarter Cash Generation; $500 Million Deployed for Common Stock
Repurchases
Additional$5 Billion Share Repurchase Authorization by Board of Directors
Full Year 2026 Guidance Increased
Full Year 2027 Revenue Guidance: Approximately $11.5 Billion, Up ~12% Year over
Year
Summary Financial Results
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… $ 5… $ 4… 33 % $ 1… $ 9… … %
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1For more information, see “Non-GAAP Financial Measures” and the schedules to
this release.
Key Activity
Repurchased
· $500 million of common stock in third quarter 2026; $1.1 billion
repurchased year to date
On October 28, 2026, the Board of Directors authorized an increase in the
· Company’s
share repurchase program by $5 billion, resulting in $5.397 billion total
authorization
Increased
· the quarterly common stock dividend by 17% to $0.14
per share in third quarter 2026
1
PITTSBURGH, PA, October 29, 2026 – Howmet Aerospace
(NYSE: HWM) announced results today for the third quarter 2026.
Howmet Aerospace Executive Chairman and Chief Executive Officer John
Plant said, “Howmet's performance was solid in all dimensions, with third
quarter results exceeding the high end of guidance. Revenue
grew 29% year over year and 25% organically, the strongest quarterly growth rate
on record for Howmet. Adjusted EBITDA margin expanded
310 basis points year over year to 32.5%. Free cash flow was a robust $562
million after $147 million in capital expenditures, as we
continue to invest for growth. The free cash flow supported $500 million in
common stock repurchases in the third quarter, lifting year-to-date
repurchases to $1.1 billion. The Board of Directors authorized an increase in
the share repurchase program by $5 billion to $5.397 billion,
reflecting confidence in the Company's strong free cash flow outlook.”
Mr. Plant continued, “Our trajectory points to a healthy
fourth quarter and the conclusion of another strong year for Howmet. The
commercial aerospace market continues to look robust, underpinned
by the extraordinary aircraft order backlog that supports expected production
volume increases throughout 2027 and beyond. We do not
expect any material impact on our spares demand from the Middle East conflict
given the backlog of engine shop visits and requirements
to support next generation narrowbody engines. Defense markets remain solid,
with further spares needs and likely increases in legacy
fighter builds. Of particular note was the 45% year-over-year gas turbines
revenue growth, which demonstrates both the extraordinary
addition to output and, even more importantly, the increase in market share.
Demand in the gas turbines market continues to strengthen
with customers looking to increase volumes beyond previous expectations, which
supports the outlook beyond 2028. Our capital expenditure
plans envisage elevated spend beyond 2027 to support growth in both aerospace
and defense as well as gas turbines. Our disciplined focus
on free cash flow conversion will remain steadfast throughout this elevated
investment period. The commercial transportation market continues
to experience recovery in North America. Looking forward to 2027, we envisage
revenue of approximately $11.5 billion, representing approximately
12% growth from the increased 2026 guidance.”
2026 Guidance
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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.
2
Consolidated Results
Howmet Aerospace reported third quarter 2026 revenue of $2.70 billion,
up 29% year over year with organic growth of25%, and Adjusted EPS of $1.46, up
54% year over year. Revenue was driven by 32% growth in the commercial aerospace
market, 10% growth
in the defense aerospace market, 45% growth in the gas turbines market, and 28%
growth in the commercial transportation market.
The Company reported Adjusted EBITDA of $879 million, up 43% year
over year. The year-over-year increase was driven by growth in the commercial
aerospace, defense aerospace, gas turbines, and commercial transportation
markets. Adjusted EBITDA margin was up approximately 310 basis points year
over year at 32.5%.
Segment Results
Engine Products
Dollars in
Millions Third Quarter 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Third-party sales $ 1,451 $ 1,087 33 %
Segment adjusted $ 567 $ 362 57 %
EBITDA
Segment adjusted 39.1 % 33.3 % 580 bps
EBITDA margin
Depreciation and $ 41 $ 37
amortization
Engine Products reported third quarter 2026 revenue of $1.45
billion, an increase of 33% year over year, driven by growth in the commercial
aerospace and gas turbines markets. Segment Adjusted EBITDA was $567 million, up
57% year over year, driven by growth in the commercial aerospace and gas
turbines markets. The Segment absorbed net headcount of approximately 520 in the
quarter in support of expected future revenue
increases. Segment Adjusted EBITDA margin increased approximately 580 basis
points year over year to 39.1%.
Fastening Systems
Dollars in
Millions Third Quarter 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Third-party sales $ 630 $ 448 41 %
Segment adjusted $ 185 $ 138 34 %
EBITDA
Segment adjusted 29.4 % 30.8 % (140 )bps
EBITDA margin
Depreciation and $ 29 $ 12
amortization
Fastening Systems reported revenue of$630 million, an increase of 41% year over
year, driven by growth in the commercial aerospace and defense aerospace
markets. Excluding the CAM and Brunner acquisitions, revenue grew 10%. Segment
Adjusted EBITDA was$185
million, up 34% year over year, driven by growth in the commercial aerospace and
defense aerospace markets and including contributions from the acquisitions.
Segment Adjusted EBITDA margin decreased approximately 140 basis points
year over year to 29.4%, reflecting impact from the CAM acquisition.
Engineered Structures
Dollars in Millions Third Quarter 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Third-party sales $ 295 $ 307 (4 )%
Segment adjusted $ 70 $ 64 9 %
EBITDA
Segment adjusted 23.7 % 20.8 % 290 bps
EBITDA margin
Depreciation and $ 10 $ 10
amortization
3
Engineered Structures reported revenue of $295 million, a decrease
of 4% year over year, principally driven by the divestiture of the Savannah disk
forging facility. Excluding the Savannah divestiture, revenue grew8%. Segment
Adjusted EBITDA was
$70 million, up 9% year over year, on the exit of lower-margin business
including the divestiture. Segment Adjusted EBITDA margin increased
approximately 290 basis points year over year to 23.7%.
Forged Wheels
Dollars in
Millions Third Quarter 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Third-party sales $ 327 $ 247 32 %
Segment adjusted $ 86 $ 73 18 %
EBITDA
Segment adjusted 26.3 % 29.6 % (330 )bps
EBITDA margin
Depreciation and $ 11 $ 11
amortization
Forged Wheels reported revenue of $327 million, an increase of 32%
year over year, driven by higher volumes in the commercial transportation market
and an increase in aluminum cost pass through. Segment Adjusted EBITDA was $86
million and increased 18% year over year, driven by favorable volume.
Segment Adjusted EBITDA margin decreased approximately 330 basis points year
over year to 26.3%, due to the impact of higher aluminum
cost pass through.
Repurchased $500 Million of Common Stock in Third Quarter 2026; $1.1B Year To
Date
In the third quarter 2026, Howmet Aerospace repurchased $500 million
of common stock at an average price of $264.77 per share, retiring approximately
1.9 million shares. Year to date throughOctober 28, 2026, the Company has
repurchased$1.1 billion of shares at an average priceof $250.72 per share.
Board of Directors Approved a $5 Billion Increase to the Share Repurchase
Program
On October 28, 2026 the Board of Directors authorized an increase
in the Company's share repurchase program by $5 billion, which, together with
the remaining authorization of $397 million, results in
authorization to repurchase up to $5.397 billion of the Company's outstanding
stock.
Paid Down $60 Million of Debt
In the third quarter 2026, the Company paid down $60 million of borrowings
on its commercial paper program. At the end of the quarter, $390 million of the
$1 billion commercial paper program was outstanding.
Quarterly Common Stock Dividend Increas es 17% to $0.14 Per Share in Third
Quarter 2026
On July27, 2026,
the Board of Directors declared a dividend of $0.14 per share on its common
stock, which
was paid on August25, 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, October 29, 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 October 29, 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.
4
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company
developments and financial performance through its website at .
Forward-Looking Statements
This release contains statements that relate to future events and
expectations and as such constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements include those containing such words as
"anticipates," "believes," "could,"
“envisions,” "estimates," "expects," "forecasts," "goal," "guidance," "intends,"
"may," "outlook," "plans," "points," “poised,” "projects," "seeks,"
"sees," "should," "targets," "will," "would," or other words of similar meaning.
All
statements that reflect Howmet Aerospace’s expectations, assumptions or
projections about the future, other than statements of
historical fact, are forward-looking statements, including, without limitation,
statements, forecasts and outlook relating to the condition
of markets; future financial results or operating performance; future strategic
actions; Howmet Aerospace's strategies, outlook, and
business and financial prospects; any future dividends, debt issuances, debt
reduction and repurchases of its common stock; and statements
regarding any acquisitions, including expected benefits. These statements
reflect beliefs and assumptions that are based on Howmet Aerospace’s
perception of historical trends, current conditions and expected future
developments, as well as other factors Howmet Aerospace believes
are appropriate in the circumstances. Forward-looking statements are not
guarantees of future performance and are subject to risks, uncertainties
and changes in circumstances that are difficult to predict, which could cause
actual results to differ materially from those indicated
by these statements. Such risks and uncertainties include, but are not limited
to: (a) deterioration in global economic and financial
market conditions generally, or unfavorable changes in the markets served by
Howmet Aerospace, including due to escalating tariff and
other trade policies and energy costs, and the resulting impacts on Howmet
Aerospace’s supply and distribution chains, as well
as on market volatility and global trade generally; (b) the impact of potential
cyber attacks and information technology or data
security breaches; (c) the loss of significant customers or adverse changes in
customers’ business or financial conditions;
(d) manufacturing difficulties or other issues that impact product performance,
quality or safety; (e) inability of suppliers
to meet obligations due to supply chain disruptions or otherwise; (f) failure to
attract and retain a qualified workforce and key
personnel, labor disputes or other employee relations issues; (g) the inability
to achieve anticipated or targeted financial performance,
operations or competitiveness, or realization of expected benefits from
acquisitions, including the effective integration of acquired
businesses; (h) inability to meet increased demand, production targets or
commitments; (i) competition from new product offerings,
disruptive technologies or other developments; (j) geopolitical, economic, and
regulatory risks relating to Howmet Aerospace’s
global operations, including geopolitical and diplomatic tensions,
instabilities, conflicts and wars, as well as compliance with U.S.
and foreign trade and tax laws, sanctions, embargoes and other regulations; (k)
the outcome of contingencies, including legal proceedings,
government or regulatory investigations, and environmental remediation; (l)
failure to comply with government contracting regulations;
(m) adverse changes in discount rates or investment returns on pension assets;
and (n) the other risk factors summarized in
Howmet Aerospace’s Form 10-K for the year ended December 31, 2025 and other
reports filed with the U.S. Securities and
Exchange Commission. Market projections are subject to the risks discussed above
and other risks in the market. Under its share repurchase
program, the Company may repurchase shares from time to time, in amounts, at
prices, and at such times as the Company deems appropriate,
subject to market conditions, legal requirements and other considerations. The
program has no stated expiration, and the Company is not
obligated to repurchase any specific number of shares or to do so at any
particular time. The declaration of any future dividends is
subject to the discretion and approval of the Board of Directors after the
Board’s consideration of all factors it deems relevant
and subject to applicable law. The Company may modify, suspend, or cancel its
share repurchase program or any dividend policy in any
manner and at any time that it may deem necessary or appropriate. Credit ratings
are not a recommendation to buy or hold any Howmet Aerospace
securities, and they may be revised or revoked at any time at the sole
discretion of the credit rating organizations. The statements
in this release are made as of the date of this release, even if subsequently
made available by Howmet Aerospace on its website or otherwise.
Howmet Aerospace disclaims any intention or obligation to update publicly any
forward-looking statements, whether in response to new
information, future events, or otherwise, except as required by applicable law.
5
Non-GAAP Financial Measures
Some of the information included in this release is derived from Howmet
Aerospace’s consolidated financial information but is not presented in Howmet
Aerospace’s financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America (GAAP). Certain of these data are considered
“non-GAAP financial measures” under SEC rules. These non-GAAP financial measures
supplement our GAAP disclosures and should
not be considered an alternative to the GAAP measure. Reconciliations to the
most directly comparable GAAP financial measures and management’s
rationale for the use of the non-GAAP financial measures can be found in the
schedules to this release.
Other Information
In this press release, the acronym “FY” means “full
year”; “Q” means “quarter”; “YoY” means year over year; “Adj.” means adjusted;
Howmet, Howmet Aerospace, or the Company means Howmet Aerospace Inc.; "organic
growth" refers to the Company's revenue growth
excluding the impact of acquisitions and divestitures; and references to
performance by Howmet Aerospace or its segments as “record”
mean its best result since April 1, 2020 when Howmet Aerospace Inc. (previously
named Arconic Inc.) separated from Arconic Corporation.
6
Howmet Aerospace Inc. and subsidiaries
Statement of Consolidated Operations (unaudited)
(in millions, except per-share amounts)
Quarter September 30, June 30, September 30,
ended 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Sales $ 2,703 $ 2,547 $ 2,089
Cost of goods
sold (exclusive 1,700 1,596 1,365
of
expenses below)
Selling,
general
administrative, 120 148 100
and
other expenses
Research and
development 11 8 10
expenses
Provision for
depreciation 93 84 72
and
amortization
Restructuring
and other 2 — —
charges
Operating 777 711 542
income
Interest 48 51 37
expense, net
Other expense, 8 11 10
net
Income before 721 649 495
income taxes
Provision for 154 115 110
income taxes
Net income $ 567 $ 534 $ 385
Amounts
Attributable to
Howmet
Aerospace
Common
Shareholders:
Earnings
per share -
basic(1):
Net income per $ 1.42 $ 1.33 $ 0.96
share
Average
number of 398 400 403
shares(2)(3)
Earnings
per share -
diluted(1):
Net income per $ 1.42 $ 1.33 $ 0.95
share
Average
number of 400 402 405
shares(2)(3)
Common stock
outstanding at 398 400 403
the end
of the period
In order to calculate both basic and diluted earnings per
(1) share through December 31, 2025, preferred stock dividends declared of
less than $1
for the quarters presented need to be subtracted from Net income.
For the quarters presented, the difference between the diluted
average number of shares and the basic average number of shares relates
(2) to share equivalents
associated with outstanding restricted stock unit awards and employee
stock options.
As average shares outstanding are used in the calculation
of both basic and diluted earnings per share, the full impact of share
(3) 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.
7
Howmet Aerospace Inc. and subsidiaries
Consolidated Balance Sheet (unaudited)
(in U.S. dollar millions)
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets:
Cash and cash equivalents $ 507 $ 742
Receivables from customers,
less allowances 1,116 779
of $— in both 2026 and 2025
Inventories 2,113 1,849
Prepaid expenses 381 409
and other current assets
Total current assets 4,117 3,779
Properties, 2,912 2,593
plants, and equipment, net
Goodwill 5,098 4,022
Deferred income 48 40
taxes
Intangibles, 855 457
net
Other 250 288
noncurrent assets
Total assets $ 13,280 $ 11,179
Liabilities
Current liabilities:
Accounts payable, trade $ 969 $ 845
Accrued compensation and
retirement 373 343
costs
Taxes, including income taxes 88 77
Accrued interest payable 54 47
Deferred revenue 204 147
Other current liabilities 136 121
Long-term debt due within one 1 191
year
Short-term borrowings 390 —
Total current liabilities 2,215 1,771
Long-term debt, 4,052 2,859
less amount due within one year
Accrued pension 493 546
benefits
Accrued other 33 38
postretirement benefits
Other
noncurrent liabilities and 725 612
deferred credits
Total liabilities 7,518 5,826
Equity
Howmet Aerospace
shareholders’ equity:
Common stock 398 402
Additional capital 1,438 2,531
Retained earnings 5,621 4,093
Accumulated other (1,695 ) (1,673 )
comprehensive loss
Total equity 5,762 5,353
Total liabilities $ 13,280 $ 11,179
and equity
8
Howmet Aerospace Inc. and subsidiaries
Statement of Consolidated Cash Flows (unaudited)
(in U.S. dollar millions)
Nine months ended
Operating September 30,
activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 1,681 $ 1,136
income
Adjustments to reconcile
net income
to cash provided from
operations:
Depreciation and 251 210
amortization
Deferred income taxes 48 75
Restructuring and other (91 ) (4 )
credits
Net realized and 14 17
unrealized losses
Net periodic pension cost 34 31
Stock-based compensation 80 59
Other 8 3
Changes in assets and
liabilities, excluding
effects of acquisitions,
divestitures, and foreign
currency translation
adjustments:
Increase in receivables (284 ) (180 )
Increase in inventories (117 ) (95 )
Increase in prepaid
expenses and other (40 ) (11 )
current assets
Increase in accounts 68 17
payable, trade
Increase (decrease) in 79 (2 )
accrued expenses
Decrease in taxes,
including income (23 ) (3 )
taxes
Pension contributions (36 ) (30 )
Increase in noncurrent (8 ) (6 )
assets
Increase in noncurrent 81 13
liabilities
Cash provided 1,745 1,230
from operations
Financing
Activities
Net change in 390 —
commercial paper
Additions to 1,200 —
debt
Repurchases (186 ) (140 )
and payments on debt
Debt issuance (12 ) —
costs
Repurchases of common (1,100 ) (500 )
stock
Dividends paid (153 ) (131 )
to shareholders
Taxes paid for
net share settlement of (68 ) (45 )
equity awards
Other (6 ) (4 )
Cash provided
from (used for) financing 65 (820 )
activities
Investing
Activities
Capital expenditures (345 ) (329 )
Acquisitions, (1,929 ) —
net of cash acquired
Proceeds from
the sale of assets and 226 9
businesses
Additions to — (9 )
investments
Sale of investments 2 13
Cash used (2,046 ) (316 )
for investing activities
Effect
of exchange rate changes 1 1
on cash, cash equivalents
and restricted cash
Net change in
cash, cash equivalents and (235 ) 95
restricted cash
Cash,
cash equivalents and 743 565
restricted cash at
beginning of period
Cash, cash
equivalents and restricted $ 508 $ 660
cash at end of period
9
Howmet Aerospace Inc. and subsidiaries
Segment Information (unaudited)
(in U.S. dollar millions)
… … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ …
$ 3 $ 1 $ 2 $ 2
$ … $ … $ … $ …
$ … $ … $ … $ …
% … % … % … % …
$ — $ … $ — $ 1
$ … $ … $ … $ …
$ … $ … $ … $ …
$ — $ 1 $ — $ —
$ … $ … $ … $ …
$ … $ … $ … $ …
% … % … % … % …
$ 1 $ … $ — $ 2
$ 9 $ … $ … $ …
$ … $ … $ … $ …
$ 8 $ 4 $ 8 $ …
$ … $ … $ … $ …
$ … $ … $ … $ …
% … % … % … % …
$ ) — $ — $ ) … $ …
$ 7 $ … $ … $ …
$ … $ … $ … $ …
$ … $ … $ … $ …
$ … $ … $ … $ …
% … % … % … % …
$ … $ — $ ) — $ —
$ 8 $ 4 $ 3 $ …
Differences between the total
segment and consolidated totals are in Corporate.
10
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
1… 2… 3… … 2… … 2… …
──────────────────────────────────────────────────────────────────────────────
… $ 4… $ 5… $ 5… $ … $ 2… $ … $ 7… $ …
…
…
…
… 68 67 70 … 2… … 83 …
…
…
…
…
…
…
…
… (4 ) — — … 84 … ) — 2
…
…
… 22 25 25 … 1… … 52 …
…
…
… $ 5… $ 6… $ 6… $ … $ 2… $ … $ 8… $ …
…
…
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, Provision for depreciation and amortization, and Special items. Special
items, including Restructuring and other (credits) charges,
are excluded from Adjusted EBITDA.
(1)Pre-tax special items included in Corporate expense
1… 2… 3… 4… 2… 1… … …
──────────────────────────────────────────────────────────────────────────────
…
… $ — $ — $ — $ 2 $ 2 $ 6 $ 22 $ 7
…
…
…
…
…
…
…
… 1 (1 ) — 1 1 — — —
…
…
…
…
…
…
…
…
… $ 1 $ (1 ) $ — $ 3 $ 3 $ 6 $ 22 $ 7
…
…
…
…
(2) Interest expense of $1 related to the CAM acquisition financing
in 1Q26.
11
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollars millions)
Reconciliation of Free cash flow
Nine
Quart… months
ended 1Q26 2Q26 3Q26 ended 3Q26
──────────────────────────────────────────────────────────────────────────────
Cash
prov… $ 453 $ 583 $ 709 $ 1,745
from
oper…
Capi… (94 ) (104 ) (147 ) (345 )
expe…
Free
cash $ 359 $ 479 $ 562 $ 1,400
flow
Cash
prov…
from
(used $ 1,226 $ (541 ) $ (620 ) $ 65
for)
fina…
acti…
Cash
prov…
from
(used $ 14 $ (1,914 ) $ (146 ) $ (2,046 )
for)
inve…
acti…
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.
12
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in millions, except per-share amounts)
Reconciliation of Adjusted Net income
Nine Sep… Sep…
Qua… mon… 30, 30,
end… 3Q25 2Q26 3Q26 end… 2025 2026
──────────────────────────────────────────────────────────────────────────────
Net $ 385 $ 534 $ 567 $ 1,1… $ 1,6…
in…
Di…
ea…
per $ 0.95 $ 1.33 $ 1.42 $ 2.79 $ 4.18
sh…
("…
Av…
nu…
of 405 402 400 406 402
di…
sh…
Sp…
it…
Re…
and
ot… — — 2 (4 ) (91 )
ch…
(c…
Ac…
and — 22 7 — 36
ac…
co…
Su…
Pr… — 22 9 (4 ) (55 )
sp…
it…
Tax
im…
of — (4 ) (2 ) 1 24
Pr…
sp…
it…
Su… — 18 7 (3 ) (31 )
Di…
and
ot… — (18 ) 10 (26 ) (38 )
tax
sp…
it…
To…
Af… — — 17 (29 ) (69 )
sp…
it…
Ad…
Net $ 385 $ 534 $ 584 $ 1,1… $ 1,6…
in…
Ad… $ 0.95 $ 1.33 $ 1.46 $ 2.72 $ 4.01
EPS
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 charges (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.
Restructuring and other credits for the nine months ended
(1) September 30, 2026 included a gain on the sale of the Company's disk
forging facility
in Savannah, GA within Engineered Structures.
Includes legal and advisory costs, amortization expense of
inventory step-up recorded in accordance with purchase accounting, and
(2) other acquisition-related
costs for CAM and Brunner. Additionally, interest expense of $1 related
to the CAM acquisition
financing in 1Q26.
The Tax impact of Pre-tax special items is based on the applicable
(3) 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 3Q25,
a net benefit for other small items ($1);
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 3Q26,
a charge related to a foreign pension plan termination $5, a charge for a
valuation allowance
· related to U.S. foreign tax credits $3, a charge for an international
withholding tax reserve
$1, an excess benefit for stock compensation ($2), and a net benefit for
other small items
($1);
for the
nine months ended 3Q25, 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 research and development
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
$1; and
for the
nine months ended 3Q26, an excess benefit for stock compensation ($24), a
benefit to release
a valuation allowance related to U.S. foreign tax credits ($19), 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), a net benefit for other small items ($1), a charge to establish an
international withholding
tax reserve $17, and a charge related to a foreign pension plan
termination $5.
13
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollar millions)
Reconciliation of Operational tax rate
N…
Q… m…
e… 3… e… …
──────────────────────────────────────────────────────────────────────────────
E… O… E… O…
t… S… t… t… S… t…
r… i… r… r… i… r…
as as as as
r… a… r… a…
…
… $ 7… $ 9 $ 7… $ … $ … ) $ …
…
…
…
… $ 1… $ (8 ) $ 1… $ … $ … $ …
…
…
… 2… % 2… % … % … %
…
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.
Pre-tax special items for 3Q26 included Acquisition and
acquisition-related
costs $7 and Restructuring and other charges $2. Pre-tax special items
(1) for the nine months
ended 3Q26 included Restructuring and other credits ($91) and
Acquisition and acquisition-related
costs $36.
Tax Special items includes discrete tax items, the tax impact
on Special items based on the applicable statutory rates, the
(2) 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 3Q26, a charge related to a foreign pension plan
termination $5, a charge for
· a valuation allowance related to U.S. foreign tax credits $3, a charge
for an international
withholding tax reserve $1, an excess benefit for stock compensation
($2), and a net benefit
for other small items ($1);
for the
nine months ended 3Q26, an excess benefit for stock compensation ($24), a
benefit to release
a valuation allowance related to U.S. foreign tax credits ($19), 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), a charge to establish an international withholding tax reserve $17,
a charge related
to a foreign pension plan termination $5, and a net benefit for other
small items ($1).
14
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
Nine Se… Sep…
Qua… mon… 30, 30,
end… 3Q… 2Q26 3Q… end… 20… 2026
──────────────────────────────────────────────────────────────────────────────
Sa… $ 2,… $ 2,5… $ 2,… $ 6,… $ 7,5…
Op… $ 542 $ 711 $ 777 $ 1,… $ 2,2…
in…
Op…
in… 25… % 27.9 % 28… % 25… % 29.6 %
ma…
Op… $ 542 $ 711 $ 777 $ 1,… $ 2,2…
in…
Ad…
Re…
and
ot… $ — $ — $ 2 (4 ) (91 )
ch…
(c…
Ac…
and — 22 7 — 35
ac…
co…
Ad…
op… $ 542 $ 733 $ 786 $ 1,… $ 2,1…
in…
Ad…
op… 25… % 28.8 % 29… % 25… % 28.9 %
in…
ma…
Pr…
for
de… 72 84 93 210 251
and
am…
Ad… $ 614 $ 817 $ 879 $ 1,… $ 2,4…
EB…
Ad…
EB… 29… % 32.1 % 32… % 29… % 32.2 %
ma…
Adjusted operating income and Adjusted operating income margin are
non-GAAP financial measures. Special items, including Restructuring and other
charges (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 charges (credits), Provision for
depreciation and amortization, and Special items. Special items,
including Restructuring and other charges (credits), are excluded from Adjusted
EBITDA.
(1) Interest expense of $1 related to the CAM acquisition financing
in 1Q26.
15
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollars millions)
Reconciliation of Organic Revenue Growth
…
… … 3…
──────────────────────────────────────────────────────────────────────────────
% %
… … … … … C…
… … … … … … - -
… … … O…
R…
$ … $ — $ 1… $ 1… $ — $ 1… 33 % … %
$ … $ — $ 4… $ 6… $ 1… $ 4… 41 % … %
$ … $ … $ 2… $ 2… $ — $ 2… (4 … 8 %
$ … $ — $ 2… $ 3… $ — $ 3… 32 % … %
$ … $ … $ 2… $ 2… $ 1… $ 2… 29 % … %
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.
16