Slides
Page 1
Second Quarter 2026 Earnings Call John Plant : Executive Chairman and Chief Executive Officer Patrick Winterlich : EVP and Chief Financial Officer August 6 , 2026 H HOWMET AEROSPACE
Page 2
Important Information 2 Forward–Looking Statements This presentation 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“, “poised”, “projects“, "seeks“, "sees“, "should“, "targets“, "will“, "would“, or other words of similar meaning. All statements that reflect Howmet Aerospace Inc.’s (“Howmet’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'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’s perception of historical trends, current conditions and expected future developments, as well as other factors Howmet 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, including due to escalating tariff and other trade policies and energy costs, and the resulting impacts on Howmet’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’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’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, Howmet may repurchase shares from time to time, in amounts, at prices, and at such times as it deems appropriate, subject to market conditions, legal requirements and other considerations. Howmet 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 Howmet’s Board of Directors after consideration of all factors it deems relevant and subject to applicable law. Howmet 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 securities, and they may be revised or revoked at any time at the sole discretion of the credit rating organizations. The statements in this presentation are made as of the date of this presentation, even if subsequently made available by Howmet on its website or otherwise. Howmet 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.
Page 3
Important Information (continued) 3 Non-GAAP Financial Measures Some of the information included in this presentation 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 Appendix to this presentation. Howmet Aerospace has not provided reconciliations of any forward-looking non-GAAP financial measures (including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Earnings per Share, Free Cash Flow, and Free Cash Flow Conversion) to the most directly comparable GAAP financial measures because such reconciliations, 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. These reconciling items are in addition to the inherent variability already included in the GAAP measures, which includes, but is not limited to, price/mix and volume. Howmet Aerospace believes such reconciliations of forward-looking non-GAAP financial measures would imply a degree of precision that would be confusing or misleading to investors. Adjusted EBITDA is defined as Operating Income excluding Restructuring and other (credits) charges, Special Items and provision for depreciation and amortization. Other Information In this presentation: where values are denoted, M=USD millions and B=USD billions; Howmet, Howmet Aerospace, or the Company=Howmet Aerospace Inc.; CAM=Consolidated Aerospace Manufacturing, LLC; YTD=year to date; Q2 YTD=the 6 months ended June 30; YoY=year over year; QoQ=quarter over quarter; Seq=sequential; FY=full year; Q=quarter; bps=basis points; Avg=average; EPS=Earnings Per Share; FCF=Free Cash Flow; Free Cash Flow Conversion=Free Cash Flow divided by Adjusted Net Income; M&A = mergers and acquisitions; JPY=Japanese Yen; “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.
Page 4
Q2 2026 Highlights 4 Q2 2026 Balance Sheet and Cash Flow ▪ Q2 Free Cash Flow3 of $479M; Q2 YTD Free Cash Flow3 of $838M ▪ Repurchased $300M of Common Stock at ~$251 Avg Price per Share in Q2 ▪ Repurchased $600M of Common Stock at ~$240 Avg Price per Share through June YTD; Repurchased Additional $200M in July ▪ Paid Down $186M of Debt ▪ Closed ~$1.8B CAM Acquisition on April 6; Net Debt-to-LTM EBITDA4 at 1.4x ▪ Increased Q3 2026 Quarterly Common Stock Dividend by 17% QoQ to $0.14 Per Share 1) Operating income (GAAP): Q2 2025 = $521M, Q1 2026 = $753M, Q2 2026 = $711M; Operating income margin (GAAP): Q2 2025 = 25.4%, Q1 2026 = 32.6%, Q2 2026 = 27.9% 2) EPS (GAAP): Q2 2025 = $1.00, Q1 2026 = $1.44, Q2 2026 = $1.33 3) Free Cash Flow = Cash provided from operations less Capital expenditures; Q2 2026: Cash provided from operations = $583M, Cash used for financing activities = ($541M), Cash used for investing activities = ($1,914M) ; Q2 YTD 2026: Cash provided from operations = $1,036M, Cash provided from financing activities = $685M, Cash used for investing activities = ($1,900M) 4) Last twelve months (LTM) Adj. EBITDA See appendix for reconciliations Revenue and Profitability Q2 2025 Q1 2026 Q2 2026 Q2 YoY Revenue $2.053B $2.313B $2.547B +24% Adj EBITDA1 $589M $740M $817M +39% Adj EBITDA Margin1 28.7% 32.0% 32.1% +340 bps Adj Operating Income1 $520M $666M $733M +41% Adj Operating Income Margin1 25.3% 28.8% 28.8% +350 bps Adj Earnings Per Share2 $0.91 $1.22 $1.33 +46% Organic Growth +21% YoY
Page 5
5 Q2 2026 Revenue Up 24% YoY, Commercial Aerospace Up 28% YoY Revenue by Market (% change) YoY Seq Commercial Aerospace 28% 12% Defense Aerospace 11% 6% Commercial Transportation 12% 8% Gas Turbines 38% 13% Other 39% 4% Total Revenue 24% 10% Q2 2026 Revenue by Market (% of total) 53% 15% 15% 13% 4% Gas Turbines $2.547B Total Revenue Other Commercial Aerospace Defense Aerospace Commercial Transportation
Page 6
▪ Free Cash Flow3 of $479M; Ending Cash Balance of $564M ▪ Q2 Debt Actions Generated ~$12M Annualized Interest Expense Savings including $186M Debt Paydown ▪ Closed ~$1.8B CAM Acquisition on April 6; Net Debt-to-LTM EBITDA4 at 1.4x 6 ▪ Revenue Up 24% YoY, driven by Comm Aero Up 28% and Gas Turbines Up 38% YoY; Organic Growth Up 21% YoY ▪ Adj EBITDA1 of $817M, Up 39% YoY. Adj EBITDA Margin1 of 32.1%, Up ~340 bps YoY ▪ Adj Earnings Per Share2 of $1.33, Up 46% YoY ▪ Capex of $104M; Continued Growth Investments in Engine Products Segment ▪ Repurchased $300M of Common Stock at ~$251 Avg Price per Share; Repurchased Additional $200M in July ▪ Paid $49M in Dividends; Common Stock Dividend at $0.12 Per Share, Up ~20% YoY Q2 2026 YoY: Revenue Up 24%, Adj EBITDA1 Up 39%, Adj EPS2 Up 46% Enhanced Profitability Strong Balance Sheet and Cash Flow Capital Deployment 1) Operating income (GAAP): Q2 2025 = $521M, Q2 2026 = $711M; Operating income margin (GAAP): Q2 2025 = 25.4%, Q2 2026 = 27.9% 2) EPS (GAAP): Q2 2025 = $1.00, Q2 2026 = $1.33 3) Free Cash Flow = Cash provided from operations less Capital expenditures; Q2 2026: Cash provided from operations = $583M, Cash used for financing activities = ($541M), Cash used for investing activities = ($1,914M) 4) Last twelve months (LTM) Adj. EBITDA See appendix for reconciliations
Page 7
+ Commercial Aerospace Growth + Defense Aerospace Growth + Gas Turbines Growth + Spares Growth Across All Markets + Net Headcount Up ~485 QoQ; Up ~720 YTD 7 $1,038M $1,087M $1,143M $1,253M $1,373M Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 +32% $393M $458M $517M 33.0% Q2 2025 33.3% Q3 2025 Q4 2025 Q1 2026 Q2 2026 $343M $362M +51% Engine Products: Revenue Up 32% Q2 YoY; Adj EBITDA Margin 37.7% Q2 Revenue by Market (% of total) Segment Adjusted EBITDA and Margin 3rd Party Revenue Q2 2026 YoY 56% 18% 24% Commercial Aerospace Defense Aerospace Gas Turbines 2% Other A titanium alloy operation moved from Engine Products to Engineered Structures in Q1 2026; Comparable periods have been recast 34.4% 36.6% 37.7%
Page 8
8 $431M $448M $454M $471M $589M Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 +37% $138M $139M $150M 29.2% Q2 2025 Q3 2025 Q4 2025 Q1 2026 30.1% Q2 2026 $126M $177M +40% Fastening Systems: Revenue Up 37% Q2 YoY; Adj EBITDA Margin 30.1% Q2 2026 YoY Segment Adjusted EBITDA and Margin 3rd Party Revenue + CAM & Brunner Acquisitions + Commercial Aerospace Growth + Defense Aerospace Growth + Sustaining Productivity Gains Q2 Revenue by Market (% of total) 70% 11% 9% 10% Commercial Aerospace Defense Aerospace Commercial Transportation Other 30.8% 30.6% 31.8% Brunner Acquisition was completed on February 6, 2026 CAM Acquisition was completed on April 6, 2026
Page 9
$308M $307M $307M $294M $269M Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 -13% $68M $64M $66M $66M $64M Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 -6% Engineered Structures: Revenue Down 13% Q2 YoY; Adj EBITDA Margin 23.8% 9 Segment Adjusted EBITDA and Margin 3rd Party Revenue ▪ Disk Forging Facility Divestiture + Product Rationalization + Focused Operational Improvement Q2 Revenue by Market (% of total) 66% 28% 6% Commercial AerospaceDefense Aerospace Other Q2 2026 YoY 20.8%22.1% 21.5% 22.4% A titanium alloy operation moved from Engine Products to Engineered Structures in Q1 2026; Comparable periods have been recast Disk Forging Facility was divested on March 31, 2026 23.8%
Page 10
$276M $247M $264M $295M $316M Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 +14% $73M $79M $90M 27.5% Q2 2025 Q3 2025 Q4 2025 Q1 2026 27.8% Q2 2026 $76M $88M +16% Forged Wheels: Revenue Up 14% Q2 YoY; Adj EBITDA Margin 27.8% 10 Segment Adjusted EBITDA and Margin 3rd Party Revenue Q2 2026 YoY - Volume Down 8% YoY; Up 7% QoQ + Commercial Transportation Market Recovering + Cost Flexing ▪ Higher Aluminum Cost Pass Through Q2 Revenue by Region (% of total) 54% 33% 13% North America Europe Other 29.6% 29.9% 30.5%
Page 11
2026 Guidance 11 Q3 2026 Guidance FY 2026 Guidance What we expect in 2026 Low Baseline High Low Baseline High ▪ FY 2026 Revenue up ~22% vs. FY 2025 ▪ FY 2026 Adj EBITDA up ~34% vs. FY 2025 ▪ FY 2026 Adj EPS up ~40% vs. FY 2025 ▪ FY 2026 Capex of ~$515M, ~5% of Revenue ▪ FY 2026 Free Cash Flow Conversion ~90% Revenue $2.565B $2.575B $2.585B $10.000B $10.050B $10.100B Adj EBITDA $825M $830M $835M $3.210B $3.230B $3.250B Adj EBITDA Margin 32.2% 32.2% 32.3% 32.1% 32.1% 32.2% Adj Earnings per Share $1.34 $1.35 $1.36 $5.23 $5.27 $5.31 Free Cash Flow $1.850B $1.900B $1.950B Baseline Change +$170M +40 bps Baseline Change +$0.33 Baseline Change +$150M Baseline Change +$400M Guidance includes impact of completed Acquisitions and Divestitures
Page 12
Summary 12 ▪ Free Cash Flow3 of $479M; Ending Cash Balance of $564M ▪ Closed ~$1.8B CAM Acquisition on April 6; Net Debt-to-LTM EBITDA4 at 1.4x ▪ Capital Deployment: ~$535M Common Stock Repurchases, Debt Paydown, and Quarterly Dividends ▪ Revenue Up 24% YoY, driven by Comm Aero Up 28% and Gas Turbines Up 38% YoY; Organic Growth Up 21% YoY ▪ Adj EBITDA1 of $817M, Up 39% YoY. Adj EBITDA Margin1 of 32.1%, Up ~340 bps YoY ▪ Adj Earnings Per Share2 of $1.33, Up 46% YoY Revenue / Profit Q2 2026 Cash Generation / Deployment Q2 2026 Guidance Expectations FY 2026 ▪ Expect Revenue Up ~22% YoY, Adj EBITDA Up ~34% YoY, Adj Earnings Per Share Up ~40% YoY ▪ Expect Free Cash Flow of ~$1.9B, Up ~33% YoY, with Free Cash Flow Conversion5 of ~90% ▪ Increased Q3 2026 Quarterly Common Stock Dividend by 17% QoQ to $0.14 Per Share 1) Operating income (GAAP): Q2 2025 = $521M, Q2 2026 = $711M; Operating income margin (GAAP): Q2 2025 = 25.4%, Q2 2026 = 27. 9% 2) EPS (GAAP): Q2 2025 = $1.00, Q2 2026 = $1.33 3) Free Cash Flow = Cash provided from operations less Capital expenditures; Q2 2026: Cash provided from operations = $583M, Cash used for financing activities = ($541M), Cash used for investing activities = ($1,914M) 4) Last twelve months (LTM) Adj. EBITDA 5) FCF divided by Adjusted Net Income See appendix for reconciliations
Page 14
Appendix
Page 15
2026 Assumptions 15 Full Year 2026 2026 Comments Corporate Overhead ~$105M Previous: ~$100M ▪ Included in Adj EBITDA Depreciation and Amortization ~$320M ▪ Includes Acquisitions and Divestitures Interest Expense ~$185M Previous: ~$190M ▪ Includes Acquisitions and Divestitures ▪ Excludes borrowing, breakage, and redemption/tender fees Operational Tax Rate 20.5% - 21.5% ▪ Cash Tax Rate ~18% with Acquisitions and Divestitures Pension / OPEB Expense ~$35M ▪ ~$5M Service Costs (included in Adj EBITDA) ▪ ~$30M Non-Service Costs (excluded from Adj EBITDA) Miscellaneous Other Expenses $15M - $20M ▪ Included in Other expense (income), net ▪ Examples are deferred compensation and foreign currency impacts Pension / OPEB Contributions ~$65M Capex $500M - $530M Previous: $470M - $510M ▪ Engine Products Capacity Expansions ▪ Includes Acquisitions and Divestitures Diluted Share Count Average ~402M ▪ Q2 2026 Diluted Share exit rate of ~401M ▪ Common share buyback in Q2 2026: $300M; in July 2026: $200M ▪ Excludes any potential additional common stock repurchases Assumptions exclude special items and include impact of completed Acquisitions and Divestitures Bold denotes changes from previous Full Year 2026 assumptions
Page 16
$200M $400M $600M $800M $1,000M CP ~4.0% $450 2026 2027 Mar 3.75% $400 Jan 3.88%1 $300 2028 Apr 3.9% $300 Jan 3.0% $700 2029 2030 2031 2032 2036 2037 2042 $700 $1,000 Oct 3.72%2 $500 Nov 4.55% $500 Apr 4.75% $500 Feb 5.95% $625 Aug 4.75% $250 16 Robust Liquidity; Total Debt ~$4.5B, Weighted Average Interest Rate ~4.2% As of June 30, 2026 1) After cross-currency swap to synthetically convert notes into JPY liability of ~¥47.76B with a fixed interest rate of 3.88% 2) After cross-currency swap to synthetically convert notes into Euro liability of ~€458M with a fixed interest rate of 3.72% ▪ Q1 2026: Added $1.65B Debt for ~$1.8B CAM Acquisition ▪ Q2 2026: Paid Down $186M 2026 JPY Term Loan; Entered Into $300M Cross-Currency JPY Swap on 2028 Notes1; Combined Debt Actions Generated ~$12M Annualized Interest Expense Savings Fixed Rate Notes Commercial Paper (CP) Paid Down Remaining $186M of JPY Term Loan May 2026
Page 17
17 Reconciliation of Adjusted Net Income and Adjusted EPS ($ in millions, except per-share amounts) Q2 2025 Q1 2026 Q2 2026 Q2 YTD 2025 Q2 YTD 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 i ncome and Diluted EPS determined under GAAP as well as Adjusted Net income and Adjusted EPS. (1) Restructuring and other credits for Q1 2026 and Q2 YTD 2026 included a gain on the sale of the Company's disk forging facility in Savannah, Georgia 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 Q1 2026. (3) The Tax impact of Pre-tax special items is based on the applicable statutory rates whereby the difference between such rates an d the Company's consolidated estimated annual effective tax rate is itself a Special item. (4) Discrete tax items for Q2 2026 and Q2 YTD 2026 are discussed further in the Reconciliation of the Operational Tax Rate. Discrete tax items for Q2 2025 included 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). Discrete tax items for Q1 2026 included an excess benefit for stock compensation ($21). Discrete tax items for Q2 YTD 2025 included benefits related to U.S. accounting method changes for certain prior period transaction and other costs ($17), an excess bene fit 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 $2.
Page 18
18 Reconciliation of Operational Tax Rate ($ in millions) Q2 2026 Q2 YTD 2026 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 m anagement 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 per iods. 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 Q2 2026 included Acquisition and acquisition-related costs $22. Pre-tax special items for Q2 YTD 2026 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 d ifference 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 Q2 2026, 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 Q2 YTD 2026, 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 $16.
Page 19
19 Calculation of Segment Markets Revenue ($ in millions) Engine Products Fastening Systems Engineered Structures Forged Wheels Total Segment Q2 2025 Aerospace - Commercial $562 $297 $201 $— $1,060 Aerospace - Defense $214 $44 $94 $— $352 Commercial Transportation $— $56 $— $276 $332 Gas Turbines $233 $— $— $— $233 Other $29 $34 $13 $— $76 Total end-market revenue $1,038 $431 $308 $276 $2,053 Q1 2026 Aerospace - Commercial $702 $322 $191 $— $1,215 Aerospace - Defense $238 $51 $77 $— $366 Commercial Transportation $— $51 $— $295 $346 Gas Turbines $284 $— $— $— $284 Other $29 $47 $26 $— $102 Total end-market revenue $1,253 $471 $294 $295 $2,313 Q2 2026 Aerospace - Commercial $770 $412 $177 $— $1,359 Aerospace - Defense $250 $64 $75 $— $389 Commercial Transportation $— $56 $— $316 $372 Gas Turbines $321 $— $— $— $321 Other $32 $57 $17 $— $106 Total end-market revenue $1,373 $589 $269 $316 $2,547 Revenue includes impacts of foreign currency, material and other inflationary cost pass through, and the Brunner and CAM acquisitions from their dates of acquisition.
Page 20
20 Calculation of Segment Information ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 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% Depreciation and amortization % of Revenue 3.4% 3.4% 3.4% 3.4% 3.4% 3.0% 3.1% 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% Depreciation and amortization % of Revenue 2.9% 2.8% 2.7% 2.6% 2.8% 2.8% 3.4% Restructuring and other charges (credits) $— $1 $— $(1) $— $— $— Capital expenditures $10 $9 $13 $20 $52 $17 $11
Page 21
21 Calculation of Segment Information (continued) ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 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% Depreciation and amortization % of Revenue 4.3% 3.2% 3.3% 3.3% 3.5% 3.4% 4.1% 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% Depreciation and amortization % of Revenue 4.0% 3.6% 4.5% 4.2% 4.0% 3.7% 3.2% Restructuring and other credits $— $(1) $— $— $(1) $— $— Capital expenditures $15 $8 $9 $4 $36 $3 $4
Page 22
22 Reconciliation of Total Segment Adj. EBITDA to Operating Income ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Operating income $494 $521 $542 $489 $2,046 $753 $711 Operating income margin 25.4% 25.4% 25.9% 22.6% 24.8% 32.6% 27.9% 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 third-party sales 1,942 2,053 2,089 2,168 8,252 2,313 2,547 Total Segment Adjusted EBITDA margin 29.9% 29.9% 30.5% 31.2% 30.4% 33.0% 33.2% Total Segment Adjusted EBITDA and Total Segment Adjusted EBITDA margin are non-GAAP financial measures. Management believes that these measures are meaningful to investors because Total Segment Adjusted EBITDA and Total Segment Adjusted EBITDA margin provide 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 othe r companies. Howmet’s definition of Total Segment Adjusted EBITDA is defined as Adjusted EBIT excluding the Provision for depreciation and amortization. Adjusted EBIT is defined as Operating Inc ome excluding Restructuring and other (credits) charges and Special items. Special items, including Restructuring and other (credits) charges, are excluded from Adjusted EBITDA. Differences between th e total segment and consolidated totals are in Corporate. (1) Pre-tax special items included in Corporate expense Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 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 $1 related to the CAM acquisition financing in Q1 2026.
Page 23
23 Reconciliation of Adjusted Corporate Expense ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Corporate expense $22 $25 $25 $28 $100 $32 $52 Provision for depreciation and amortization 1 2 2 1 6 2 1 Acquisition and acquisition-related costs(1) — — — 2 2 6 22 Costs (benefits) associated with closures, supply chain disruptions, and other items 1 (1) — 1 1 — — Adjusted Corporate expense $20 $24 $23 $24 $91 $24 $29 Adjusted Corporate expense is a non-GAAP financial measure. Management believes that this measure is meaningful to investors bec ause management reviews the operating results of the Company excluding the impacts of depreciation and Special items. There can be no assurances that additional Special items wil l not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Corporate expense determined under GAAP as well as Adjusted Corpo rate expense. (1) Interest expense of $1 related to the CAM acquisition financing in Q1 2026.
Page 24
24 Reconciliation of Adj. Operating Income, Adj. Operating Income Margin, Adj. EBITDA, and Adj. EBITDA Margin ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Third-party sales $1,942 $2,053 $2,089 $2,168 $8,252 $2,313 $2,547 Operating income $494 $521 $542 $489 $2,046 $753 $711 Operating income margin 25.4% 25.4% 25.9% 22.6% 24.8% 32.6% 27.9% Operating income $494 $521 $542 $489 $2,046 $753 $711 Add: Restructuring and other (credits) charges $(4) $— $— $88 $84 $(93) $— Acquisition and acquisition-related costs(1) — — — 2 2 6 22 Costs (benefits) associated with closures, supply chain disruptions, and other items 1 (1) — 1 1 — — Adjusted operating income $491 $520 $542 $580 $2,133 $666 $733 Adjusted operating income margin 25.3% 25.3% 25.9% 26.8% 25.8% 28.8% 28.8% Provision for depreciation and amortization 69 69 72 73 283 74 84 Adjusted EBITDA $560 $589 $614 $653 $2,416 $740 $817 Adjusted EBITDA margin 28.8% 28.7% 29.4% 30.1% 29.3% 32.0% 32.1% Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Management believes that these measures are meaningf ul 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 Adjusted EBIT excluding the Provision for depreciation and amortization. Adjusted EBIT is defined as Operating Income excluding Restructuring and other (credits) charges and Special items. Special items, including Restructuring and othe r (credits) charges, are excluded from Adjusted EBITDA. (1) Interest expense of $1 related to the CAM acquisition financing in Q1 2026. Adjusted operating income and Adjusted operating income margin are non-GAAP financial measures. Special items, including Restructuring and other (credits) charges, are excluded from Adjusted operating income. Management believes that these measures are meaningful to investors because management reviews the operatin g results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limi tation, management believes that it is appropriate to consider both Operating income and Operating Income margin determined under GAAP as well as Adjusted operating income and Adjusted operatin g income margin.
Page 25
25 Reconciliation of Free Cash Flow ($ in millions) Q1 2026 Q2 2026 Q2 YTD 2026 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 $250 outstanding. Free cash flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because managem ent reviews cash flows generated from operations after taking into consideration capital expenditures (due to the fact that these expenditures are considered neces sary to maintain and expand the Company's asset base and are expected to generate future cash flows from operations). It is important to note that Free cash flow does not re present the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.
Page 26
26 Reconciliation of Net Debt to Adjusted EBITDA ($ in millions) Trailing-12 months ended March 31, 2026 June 30, 2026 Net income $1,744 $1,871 Add: Provision for income taxes 358 411 Other expense, net 33 30 Loss on debt redemption 15 15 Interest expense, net 155 168 Restructuring and other credits (5) (5) Provision for depreciation and amortization 288 303 Acquisition and acquisition-related costs(1) 8 30 Costs associated with closures, supply chain disruptions, and other items — 1 Adjusted EBITDA $2,596 $2,824 Long-term debt due within one year $186 $1 Short-term borrowings $450 $450 Long-term debt, less amount due within one year $4,050 $4,050 Total Debt, at period end $4,686 $4,501 Less: Cash, cash equivalents, and restricted cash, at period end $2,436 $564 Net Debt, at period end $2,250 $3,937 Total Debt to Net Income 2.7 2.4 Net Debt to Adjusted EBITDA 0.9 1.4 Net debt, Net debt to Adjusted EBITDA, and Adjusted EBITDA are non-GAAP financial measures. The Company's definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization), which is defined in accordance with the Company's term loan and revolving credit agreements, is net margin plu s an add-back for depreciation and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Resea rch and development expenses; and Provision for depreciation and amortization. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. Management believes that these measures are meaningful to investors because management assesses the Company's leverage positi on after factoring in cash that could be used to repay outstanding debt, and also because they provide additional information with respect to the Company’s operating performance an d the Company’s ability to meet its financial obligations. (1) Interest expense of $1 related to the CAM acquisition financing in Q1 2026.
Page 27
27 Reconciliation of Organic Revenue ($ in millions) Q2 2025 Q2 2026 % Change Q2 YTD 2025 Q2 YTD 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.