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Howmet Aerospace — 3Q26 Analyst Presentation(PDF) (company IR deck)
Howmet Aerospace (HWM) · 28 slides · Filed Oct 29, 2026
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Slide 1 — Third Quarter 2026 Earnings Call
Third Quarter 2026 Earnings Call John Plant: Executive Chairman and Chief Executive Officer Patrick Winterlich: EVP and Chief Financial Officer October 29, 2026
Slide 2 — Important Information
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.
Slide 3 — Important Information (continued)
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. 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; Q3 YTD=the 9 months ended September 30; YoY=year over year; QoQ=quarter over quarter; Seq=sequential; FY=full year; Q=quarter; bps=basis points; Avg=average; LTM EBITDA=Last twelve months Adjusted EBITDA; EPS=Earnings Per Share; FCF=Free Cash Flow=Cash provided from operations less Capital expenditures; 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.
Slide 4 — Q3 2026 Highlights
Q3 2026 Highlights 4 Q3 2026 Balance Sheet and Cash Flow Q3 Free Cash Flow3 of $562M; Q3 YTD Free Cash Flow3 of $1.4B Repurchased $500M of Common Stock at ~$265 Avg Price per Share; Repurchased $1.1B Q3 YTD at ~$251 Avg Price per Share Paid Down $60M of Debt; Net Debt-to-LTM EBITDA Improved to 1.3x Increased Q3 2026 Quarterly Common Stock Dividend by 17% QoQ to $0.14 Per Share Share Repurchase Authorization Increased on October 28 by $5B to $5.4B 1) Operating income (GAAP): Q3 2025 = $542M, Q2 2026 = $711M, Q3 2026 = $777M; Operating income margin (GAAP): Q3 2025 = 25.9%, Q2 2026 = 27.9%, Q3 2026 = 28.7% 2) EPS (GAAP): Q3 2025 = $0.95, Q2 2026 = $1.33, Q3 2026 = $1.42 3) Q3 2026: Cash provided from operations = $709M, Cash used for financing activities = ($620M), Cash used for investing activities = ($146M); Q3 YTD 2026: Cash provided from operations = $1,745M, Cash provided from financing activities = $65M, Cash used for investing activities = ($2,046M) See appendix for reconciliations Revenue and Profitability Q3 2025 Q2 2026 Q3 2026 Q3 YoY Revenue $2.089B $2.547B $2.703B +29% Adj EBITDA1 $614M $817M $879M +43% Adj EBITDA Margin1 29.4% 32.1% 32.5% +310 bps Adj Operating Income1 $542M $733M $786M +45% Adj Operating Income Margin1 25.9% 28.8% 29.1% +320 bps Adj Earnings Per Share2 $0.95 $1.33 $1.46 +54% Organic Growth +25% YoY
Slide 5 — Q3 2026 Revenue Up 29% YoY, Commercial Aerospace Up 32% YoY
5 Q3 2026 Revenue Up 29% YoY, Commercial Aerospace Up 32% YoY Revenue by Market (% change) YoY Seq Commercial Aerospace 32% 7% Defense Aerospace 10% 1% Commercial Transportation 28% 3% Gas Turbines 45% 9% Other 48% 13% Total Revenue 29% 6% Q3 2026 Revenue by Market (% of total) 54% 15% 14% 13% 4% Gas Turbines $2.703B Total Revenue Other Commercial Aerospace Defense Aerospace Commercial Transportation
Slide 6 — Q3 2026 YoY: Revenue Up 29%, Adj EBITDA1 Up 43%, Adj EPS2 Up 54%
Free Cash Flow3 of $562M; Ending Cash Balance of $508M Paid Down $60M of Debt Net Debt-to-LTM EBITDA Improved to 1.3x 6 Revenue Up 29% YoY, driven by Comm Aero Up 32% and Gas Turbines Up 45% YoY; Organic Growth Up 25% YoY Adj EBITDA1 of $879M, Up 43% YoY. Adj EBITDA Margin1 of 32.5%, Up ~310 bps YoY Adj Earnings Per Share2 of $1.46, Up 54% YoY Capex of $147M; Continued Growth Investments in Engine Products Segment Repurchased $500M of Common Stock at ~$265 Avg Price per Share; $1.1B Q3 YTD at ~$251 Avg per Share Paid $56M in Dividends; Common Stock Dividend at $0.14 Per Share, Up ~17% YoY Q3 2026 YoY: Revenue Up 29%, Adj EBITDA1 Up 43%, Adj EPS2 Up 54% Enhanced Profitability Strong Balance Sheet and Cash Flow Capital Deployment 1) Operating income (GAAP): Q3 2025 = $542M, Q3 2026 = $777M; Operating income margin (GAAP): Q3 2025 = 25.9%, Q3 2026 = 28.7% 2) EPS (GAAP): Q3 2025 = $0.95, Q3 2026 = $1.42 3) Q3 2026: Cash provided from operations = $709M, Cash used for financing activities = ($620M), Cash used for investing activities = ($146M) See appendix for reconciliations
Slide 7 — Engine Products: Revenue Up 33% Q3 YoY; Adj EBITDA Margin 39.1%
+ Commercial Aerospace Growth + Gas Turbines Growth + Spares Growth + Net Headcount Up ~520 QoQ; Up ~1,240 YTD 7 $1,087M $1,143M $1,253M $1,373M $1,451M Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 +33% $362M $393M $458M $517M $567M Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 +57% Engine Products: Revenue Up 33% Q3 YoY; Adj EBITDA Margin 39.1% Q3 Revenue by Market (% of total) Segment Adjusted EBITDA and Margin 3rd Party Revenue Q3 2026 YoY 57% 16% 24% Commercial Aerospace Defense Aerospace Gas Turbines 3% Other A titanium alloy operation moved from Engine Products to Engineered Structures in Q1 2026; Comparable periods have been recast 36.6% 37.7% 39.1% 33.3% 34.4%
Slide 8 — Fastening Systems: Revenue Up 41% Q3 YoY; Adj EBITDA Margin 29.4%
8 $448M $454M $471M $589M $630M Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 +41% $138M $139M $150M $177M $185M Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 +34% Fastening Systems: Revenue Up 41% Q3 YoY; Adj EBITDA Margin 29.4% Q3 2026 YoY Segment Adjusted EBITDA and Margin 3rd Party Revenue + CAM & Brunner Acquisitions + Commercial Aerospace Growth + Defense Aerospace Growth Q3 Revenue by Market (% of total) 70% 12% 9% 9% 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 30.1% 29.4% Organic Growth +10% YoY
Slide 9 — Engineered Structures: Revenue Down 4% Q3 YoY; Adj EBITDA Margin 23.7%
$307M $307M $294M $269M $295M Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 -4% $64M $66M $66M $64M $70M Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 +9% Engineered Structures: Revenue Down 4% Q3 YoY; Adj EBITDA Margin 23.7% 9 Segment Adjusted EBITDA and Margin 3rd Party Revenue Disk Forging Facility Divestiture + Product Rationalization + Focused Operational Improvement Q3 Revenue by Market (% of total) 66% 27% 7% Commercial Aerospace Defense Aerospace Other Q3 2026 YoY 21.5% 20.8% 22.4% 23.8% 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 23.7% Organic Growth +8% YoY
Slide 10 — Forged Wheels: Revenue Up 32% Q3 YoY; Adj EBITDA Margin 26.3%
$247M $264M $295M $316M $327M Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 +32% $73M $79M $90M $88M $86M Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 +18% Forged Wheels: Revenue Up 32% Q3 YoY; Adj EBITDA Margin 26.3% 10 Segment Adjusted EBITDA and Margin 3rd Party Revenue Q3 2026 YoY + Commercial Transportation Growth Higher Aluminum Cost Pass Through Q3 Revenue by Region (% of total) 60% 26% 14% North America Europe Other 29.9% 30.5% 27.8% 29.6% 26.3%
Slide 11 — 2026 Guidance
2026 Guidance 11 Q4 2026 Guidance FY 2026 Guidance What we expect in 2026 Low Baseline High Low Baseline High FY 2026 Revenue up ~25% vs. FY 2025 FY 2026 Adj EBITDA up ~38% vs. FY 2025 FY 2026 Adj EPS up ~46% vs. FY 2025 FY 2026 Capex of ~$515M, ~5% of Revenue FY 2026 Free Cash Flow Conversion ~90% Revenue $2.740B $2.750B $2.760B $10.290B $10.300B $10.310B Adj EBITDA $895M $900M $905M $3.325B $3.330B $3.335B Adj EBITDA Margin 32.7% 32.7% 32.8% 32.3% 32.3% 32.3% Adj Earnings per Share $1.49 $1.50 $1.51 $5.49 $5.50 $5.51 Free Cash Flow $1.950B $2.000B $2.050B Baseline Change +$100M +20 bps Baseline Change +$0.23 Baseline Change +$100M Baseline Change +$250M Guidance includes impact of completed Acquisitions and Divestitures 2027 Revenue Guidance: $11.5B +/-, Up ~12% YoY
Slide 12 — Summary
Summary 12 Free Cash Flow3 of $562M; Ending Cash Balance of $508M Net Debt-to-LTM EBITDA Improved to 1.3x Capital Deployment: ~$616M Common Stock Repurchases, Debt Paydown, and Quarterly Dividends Revenue Up 29% YoY, driven by Comm Aero Up 32% and Gas Turbines Up 45% YoY; Organic Growth Up 25% YoY Adj EBITDA1 of $879M, Up 43% YoY. Adj EBITDA Margin1 of 32.5%, Up ~310 bps YoY Adj Earnings Per Share2 of $1.46, Up 54% YoY Revenue / Profit Q3 2026 Cash Generation / Deployment Q3 2026 Guidance Expectations Expect FY 2026 Revenue Up ~25% YoY, Adj EBITDA Up ~38% YoY, Adj Earnings Per Share Up ~46% YoY Expect FY 2026 Free Cash Flow of ~$2.0B, Up ~40% YoY, with Free Cash Flow Conversion of ~90% Expect FY 2027 Revenue Up ~12% YoY 1) Operating income (GAAP): Q3 2025 = $542M, Q3 2026 = $777M; Operating income margin (GAAP): Q3 2025 = 25.9%, Q3 2026 = 28.7% 2) EPS (GAAP): Q3 2025 = $0.95, Q3 2026 = $1.42 3) Q3 2026: Cash provided from operations = $709M, Cash used for financing activities = ($620M), Cash used for investing activities = ($146M) See appendix for reconciliations
Slide 13
Slide 14 — Appendix
Appendix
Slide 15 — 2026 Assumptions
2026 Assumptions 15 Full Year 2026 2026 Comments Corporate Overhead ~$105M Included in Adj EBITDA Depreciation and Amortization ~$345M Previous: ~$320M Includes Acquisitions and Divestitures and Capacity Expansions Interest Expense ~$185M Includes Acquisitions and Divestitures Excludes borrowing, breakage, and redemption/tender fees Operational Tax Rate ~20.5% Previous: 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 ~$5M Previous: ~$15M - $20M Included in Other expense (income), net Examples are deferred compensation and foreign currency impacts Pension / OPEB Contributions ~$65M Capex $500M - $530M Engine Products Capacity Expansions Includes Acquisitions and Divestitures Diluted Share Count Average ~401M Previous: ~402M Q3 2026 Diluted Share exit rate of ~399M Common share buyback in Q3 2026: $500M 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
Slide 16 — Robust Liquidity; Total Debt ~$4.5B, Weighted Average Interest Rate ~4.3%
$200M $400M $600M $800M $1,000M 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 CP ~4.2% $390 16 Robust Liquidity; Total Debt ~$4.5B, Weighted Average Interest Rate ~4.3% As of September 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 Q3 2026: Paid Down $60M CP Debt; ~$2M Annualized Interest Expense Savings Fixed Rate Notes Commercial Paper (CP)
Slide 17 — Reconciliation of Adjusted Net Income and Adjusted EPS
17 Reconciliation of Adjusted Net Income and Adjusted EPS (In millions, except per-share amounts) Q3 2025 Q2 2026 Q3 2026 Q3 YTD 2025 Q3 YTD 2026 Net income $385 $534 $567 $1,136 $1,681 Diluted Earnings Per Share ("EPS") $0.95 $1.33 $1.42 $2.79 $4.18 Average number of diluted shares 405 402 400 406 402 Special items: Restructuring and other charges (credits)(1) $— $— $2 $(4) $(91) Acquisition and acquisition-related costs(2) — 22 7 — 36 Subtotal: Pre-tax special items $— $22 $9 $(4) $(55) Tax impact of Pre-tax special items(3) — (4) (2) 1 24 Subtotal $— $18 $7 $(3) $(31) Discrete and other tax special items(4) $— $(18) $10 $(26) $(38) Total: After-tax special items $— $— $17 $(29) $(69) Adjusted Net income $385 $534 $584 $1,107 $1,612 Adjusted EPS $0.95 $1.33 $1.46 $2.72 $4.01 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. (1) Restructuring and other credits for Q3 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 and the Company's consolidated estimated annual effective tax rate is itself a Special item. (4) Discrete tax items for Q3 2026 and Q3 YTD 2026 are discussed further in the Reconciliation of the Operational Tax Rate. Discrete tax items for Q3 2025 included a net benefit for other small items ($1). Discrete tax items for Q2 2026 included 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. Discrete tax items for Q3 YTD 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 ($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 $1.
Slide 18 — Reconciliation of Operational Tax Rate
18 Reconciliation of Operational Tax Rate ($ in millions) Q3 2026 Q3 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 $721 $9 $730 $2,078 $(55) $2,023 Provision for income taxes $154 $(8) $146 $397 $14 $411 Tax rate 21.4% 20.0% 19.1% 20.3% Operational tax rate is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both the Effective tax rate determined under GAAP as well as the Operational tax rate. (1) Pre-tax special items for Q3 2026 included Acquisition and acquisition-related costs $7 and Restructuring and other charges $2. Pre-tax special items for Q3 YTD 2026 included Restructuring and other credits ($91) and Acquisition and acquisition-related costs $36. (2) Tax Special items includes discrete tax items, the tax impact on Special items based on the applicable statutory rates, the difference between such rates and the Company’s consolidated estimated annual effective tax rate and other tax related items. Discrete tax items for each period included the following: • for Q3 2026, 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 Q3 YTD 2026, 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 $5.
Slide 19 — Calculation of Segment Markets Revenue
19 Calculation of Segment Markets Revenue ($ in millions) Engine Products Fastening Systems Engineered Structures Forged Wheels Total Segment Q3 2025 Aerospace - Commercial $591 $310 $208 $— $1,109 Aerospace - Defense $229 $44 $84 $— $357 Commercial Transportation $— $54 $— $247 $301 Gas Turbines $241 $— $— $— $241 Other $26 $40 $15 $— $81 Total end-market revenue $1,087 $448 $307 $247 $2,089 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 Q3 2026 Aerospace - Commercial $824 $439 $196 $— $1,459 Aerospace - Defense $239 $73 $79 $— $391 Commercial Transportation $— $57 $— $327 $384 Gas Turbines $348 $1 $— $— $349 Other $40 $60 $20 $— $120 Total end-market revenue $1,451 $630 $295 $327 $2,703 Revenue includes impacts of foreign currency, material and other inflationary cost pass through, and the Brunner and CAM acquisitions from their respective dates of acquisition.
Slide 20 — Calculation of Segment Information
20 Calculation of Segment Information ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Q3 2026 Engine Products Third-party sales $974 $1,038 $1,087 $1,143 $4,242 $1,253 $1,373 $1,451 Inter-segment sales $2 $3 $2 $1 $8 $2 $3 $2 Provision for depreciation and amortization $33 $35 $37 $39 $144 $38 $42 $41 Segment Adjusted EBITDA $318 $343 $362 $393 $1,416 $458 $517 $567 Segment Adjusted EBITDA Margin 32.6% 33.0% 33.3% 34.4% 33.4% 36.6% 37.7% 39.1% Depreciation and amortization % of Revenue 3.4% 3.4% 3.4% 3.4% 3.4% 3.0% 3.1% 2.8% Restructuring and other charges $— $— $— $88 $88 $— $— $1 Capital expenditures $85 $74 $73 $84 $316 $59 $77 $95 Fastening Systems Third-party sales $412 $431 $448 $454 $1,745 $471 $589 $630 Inter-segment sales $— $— $— $1 $1 $— $— $— Provision for depreciation and amortization $12 $12 $12 $12 $48 $13 $20 $29 Segment Adjusted EBITDA $127 $126 $138 $139 $530 $150 $177 $185 Segment Adjusted EBITDA Margin 30.8% 29.2% 30.8% 30.6% 30.4% 31.8% 30.1% 29.4% Depreciation and amortization % of Revenue 2.9% 2.8% 2.7% 2.6% 2.8% 2.8% 3.4% 4.6% Restructuring and other charges (credits) $— $1 $— $(1) $— $— $— $2 Capital expenditures $10 $9 $13 $20 $52 $17 $11 $19
Slide 21 — Calculation of Segment Information (continued)
21 Calculation of Segment Information (continued) ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Q3 2026 Engineered Structures Third-party sales $304 $308 $307 $307 $1,226 $294 $269 $295 Inter-segment sales $7 $8 $7 $4 $26 $8 $8 $13 Provision for depreciation and amortization $13 $10 $10 $10 $43 $10 $11 $10 Segment Adjusted EBITDA $67 $68 $64 $66 $265 $66 $64 $70 Segment Adjusted EBITDA Margin 22.0% 22.1% 20.8% 21.5% 21.6% 22.4% 23.8% 23.7% Depreciation and amortization % of Revenue 4.3% 3.2% 3.3% 3.3% 3.5% 3.4% 4.1% 3.4% Restructuring and other credits $(4) $— $— $— $(4) $(93) $— $(1) Capital expenditures $6 $7 $10 $13 $36 $12 $8 $14 Forged Wheels Third-party sales $252 $276 $247 $264 $1,039 $295 $316 $327 Provision for depreciation and amortization $10 $10 $11 $11 $42 $11 $10 $11 Segment Adjusted EBITDA $68 $76 $73 $79 $296 $90 $88 $86 Segment Adjusted EBITDA Margin 27.0% 27.5% 29.6% 29.9% 28.5% 30.5% 27.8% 26.3% Depreciation and amortization % of Revenue 4.0% 3.6% 4.5% 4.2% 4.0% 3.7% 3.2% 3.4% Restructuring and other credits $— $(1) $— $— $(1) $— $— $— Capital expenditures $15 $8 $9 $4 $36 $3 $4 $14
Slide 22 — Reconciliation of Total Segment Adj. EBITDA to Operating Income
22 Reconciliation of Total Segment Adj. EBITDA to Operating Income ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Q3 2026 Operating income $494 $521 $542 $489 $2,046 $753 $711 $777 Operating income margin 25.4% 25.4% 25.9% 22.6% 24.8% 32.6% 27.9% 28.7% Segment provision for depreciation and amortization 68 67 70 72 277 72 83 91 Unallocated amounts: Restructuring and other (credits) charges (4) — — 88 84 (93) — 2 Corporate expense(1) 22 25 25 28 100 32 52 38 Total Segment Adjusted EBITDA $580 $613 $637 $677 $2,507 $764 $846 $908 Total Segment third-party sales 1,942 2,053 2,089 2,168 8,252 2,313 2,547 2,703 Total Segment Adjusted EBITDA margin 29.9% 29.9% 30.5% 31.2% 30.4% 33.0% 33.2% 33.6% 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 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. Differences between the 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 Q3 2026 Acquisition and acquisition-related costs(2) $— $— $— $2 $2 $6 $22 $7 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 $7 (2) Interest expense of $1 related to the CAM acquisition financing in Q1 2026.
Slide 23 — Reconciliation of Adjusted Corporate Expense
23 Reconciliation of Adjusted Corporate Expense ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Q3 2026 Corporate expense $22 $25 $25 $28 $100 $32 $52 $38 Provision for depreciation and amortization 1 2 2 1 6 2 1 2 Acquisition and acquisition-related costs(1) — — — 2 2 6 22 7 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 $29 Adjusted Corporate expense 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 depreciation and 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 Corporate expense determined under GAAP as well as Adjusted Corporate expense. (1) Interest expense of $1 related to the CAM acquisition financing in Q1 2026.
Slide 24 — Reconciliation of Adj. Operating Income, Adj. Operating Income
24 Reconciliation of Adj. Operating Income, Adj. Operating Income Margin, Adj. EBITDA, and Adj. EBITDA Margin ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Q3 2026 Third-party sales $1,942 $2,053 $2,089 $2,168 $8,252 $2,313 $2,547 $2,703 Operating income $494 $521 $542 $489 $2,046 $753 $711 $777 Operating income margin 25.4% 25.4% 25.9% 22.6% 24.8% 32.6% 27.9% 28.7% Operating income $494 $521 $542 $489 $2,046 $753 $711 $777 Add: Restructuring and other (credits) charges $(4) $— $— $88 $84 $(93) $— $2 Acquisition and acquisition-related costs(1) — — — 2 2 6 22 7 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 $786 Adjusted operating income margin 25.3% 25.3% 25.9% 26.8% 25.8% 28.8% 28.8% 29.1% Provision for depreciation and amortization 69 69 72 73 283 74 84 93 Adjusted EBITDA $560 $589 $614 $653 $2,416 $740 $817 $879 Adjusted EBITDA margin 28.8% 28.7% 29.4% 30.1% 29.3% 32.0% 32.1% 32.5% Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Management believes that these measures are meaningful to investors because they provide additional information with respect to the Company's operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. The Company's definition of Adjusted EBITDA is defined as Operating Income excluding Restructuring and other (credits) charges, Provision for depreciation and amortization, and Special items. Special items, including Restructuring and other (credits) charges, are excluded from Adjusted EBITDA. (1) Interest expense of $1 related to the CAM acquisition financing in Q1 2026. Adjusted operating income and Adjusted operating income margin are non-GAAP financial measures. Special items, including Restructuring and other (credits) charges, are excluded from Adjusted operating income. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Operating income and Operating Income margin determined under GAAP as well as Adjusted operating income and Adjusted operating income margin.
Slide 25 — Reconciliation of Free Cash Flow
25 Reconciliation of Free Cash Flow ($ in millions) Q1 2026 Q2 2026 Q3 2026 Q3 YTD 2026 Cash provided from operations $453 $583 $709 $1,745 Capital expenditures (94) (104) (147) $(345) Free cash flow $359 $479 $562 $1,400 Cash provided from (used for) financing activities $1,226 $(541) $(620) $65 Cash provided from (used for) investing activities $14 $(1,914) $(146) $(2,046) The Accounts Receivable Securitization program remains unchanged at $250 outstanding. Free cash flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures (due to the fact that these expenditures are considered necessary to maintain and expand the Company's asset base and are expected to generate future cash flows from operations). It is important to note that Free cash flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.
Slide 26 — Reconciliation of Net Debt to Adjusted EBITDA
26 Reconciliation of Net Debt to Adjusted EBITDA ($ in millions) Trailing-12 months ended June 30, 2026 September 30, 2026 Net income $1,871 $2,053 Add: Provision for income taxes 411 455 Other expense, net 30 28 Loss on debt redemption 15 15 Interest expense, net 168 179 Restructuring and other credits (5) (3) Provision for depreciation and amortization 303 324 Acquisition and acquisition-related costs(1) 30 37 Costs associated with closures, supply chain disruptions, and other items 1 1 Adjusted EBITDA $2,824 $3,089 Long-term debt due within one year $1 $1 Short-term borrowings $450 $390 Long-term debt, less amount due within one year $4,050 $4,052 Total Debt, at period end $4,501 $4,443 Less: Cash, cash equivalents, and restricted cash, at period end $564 $508 Net Debt, at period end $3,937 $3,935 Total Debt to Net Income 2.4 2.2 Net Debt to Adjusted EBITDA 1.4 1.3 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 plus 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; Research 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 position 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 and the Company’s ability to meet its financial obligations. (1) Interest expense of $1 related to the CAM acquisition financing in Q1 2026.
Slide 27 — Reconciliation of Organic Revenue Growth
Reconciliation of Organic Revenue Growth ($ in millions) Q3 2025 Q3 2026 % Change - Sales % Change - Organic Revenue Sales Acquisitions and Divestitures Organic Revenue Sales Acquisitions and Divestitures Organic Revenue Engine Products $1,087 $— $1,087 $1,451 $— $1,451 33% 33% Fastening Systems $448 $— $448 $630 $135 $495 41% 10% Engineered Structures $307 $34 $273 $295 $— $295 (4)% 8% Forged Wheels $247 $— $247 $327 $— $327 32% 32% Total $2,089 $34 $2,055 $2,703 $135 $2,568 29% 25% 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.