Howmet Aerospace Inc. · NYSE:HWM
Howmet Aerospace — Q3 2026 Earnings Presentation
28 slides from Howmet Aerospace's earnings presentation, Oct 29, 2026
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 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
Slide 3: Important Information (continued)
Important Information (continued) 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
Slide 4: Q3 2026 Highlights
Q3 2026 Highlights Revenue and Profitability Q3 2025 Q2 2026 Q3 2026 Q3 YoY Organic Growth Revenue $2.089B $2.547B $2.703B +29% +25% YoY 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
Slide 5: Q3 2026 Revenue Up 29% YoY, Commercial Aerospace Up 32% YoY
Q3 2026 Revenue Up 29% YoY, Commercial Aerospace Up 32% YoY Q3 2026 Revenue by Market Revenue by Market YoY Seq (% of total) (% change) Other Gas Turbines 4% Commercial Aerospace 32% 7% 13% Defense Aerospace 10% 1% Commercial $2.703B Transportation 14% Commercial Transportation 28% 3% Total 54% Reve
Slide 6: Q3 2026 YoY: Revenue Up 29%, Adj EBITDA Up 43%, Adj EPS Up 54%
Q3 2026 YoY: Revenue Up 29%, Adj EBITDA1 Up 43%, Adj EPS2 Up 54% Revenue Up 29% YoY, driven by Comm Aero Up 32% and Gas Turbines Up 45% YoY; Organic Growth Up 25% YoY Enhanced Adj EBITDA1 of $879M, Up 43% YoY. Adj EBITDA Margin1 of 32.5%, Up ~310 bps YoY Profitability Adj Earnings Per Share2 o
Slide 7: Engine Products: Revenue Up 33% Q3 YoY; Adj EBITDA Margin 39.1%
Engine Products: Revenue Up 33% Q3 YoY; Adj EBITDA Margin 39.1% Q3 Revenue by Market +33% (% of total) $1,373M $1,451M Other $1,253M 3% $1,087M $1,143M 3rd Party Gas Turbines 24% Revenue 57% Commercial Aerospace 16% Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Defense Aerospace Q3 2026 YoY +57% Segment $
Slide 8: Fastening Systems: Revenue Up 41% Q3 YoY; Adj EBITDA Margin 29.4%
Fastening Systems: Revenue Up 41% Q3 YoY; Adj EBITDA Margin 29.4% Q3 Revenue by Market +41% Organic Growth (% of total) +10% YoY $589M $630M $448M $454M $471M Other 9% 3rd Party Commercial Transportation 9% Revenue 70% Commercial Aerospace Defense Aerospace 12% Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 202
Slide 9: Engineered Structures: Revenue Down 4% Q3 YoY; Adj EBITDA Margin 23.7%
Engineered Structures: Revenue Down 4% Q3 YoY; Adj EBITDA Margin 23.7% Q3 Revenue by Market -4% Organic Growth (% of total) +8% YoY $307M $307M $294M $295M Other $269M 7% 3rd Party Revenue Defense Aerospace 27% 66% Commercial Aerospace Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q3 2026 YoY +9% Segment
Slide 10: Forged Wheels: Revenue Up 32% Q3 YoY; Adj EBITDA Margin 26.3%
Forged Wheels: Revenue Up 32% Q3 YoY; Adj EBITDA Margin 26.3% Q3 Revenue by Region +32% (% of total) $316M $327M $295M $247M $264M Other 14% 3rd Party Revenue 60% North America Europe 26% Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q3 2026 YoY +18% Segment $90M + Commercial Transportation Growth $88M $8
Slide 11: 2026 Guidance
2026 Guidance Q4 2026 Guidance FY 2026 Guidance What we expect in 2026 Low Baseline High Low Baseline High Revenue $2.740B $2.750B $2.760B $10.290B $10.300B $10.310B FY 2026 Revenue up ~25% vs. FY 2025 Baseline Change +$250M FY 2026 Adj EBITDA up ~38% vs. FY 2025 Adj EBITDA $895M $900M $905M $3.
Slide 12: Summary
Summary Revenue Up 29% YoY, driven by Comm Aero Up 32% and Gas Turbines Up 45% YoY; Organic Growth Up 25% YoY Revenue / Profit Adj EBITDA1 of $879M, Up 43% YoY. Adj EBITDA Margin1 of 32.5%, Up ~310 bps YoY Q3 2026 Adj Earnings Per Share2 of $1.46, Up 54% YoY Cash Free Cash Flow3 of $562M; En
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Slide 14: Appendix
Appendix FP) HOWMET Ui AEROSPACE
Slide 15: 2026 Assumptions
2026 Assumptions Full Year 2026 2026 Comments Corporate Overhead ~$105M Included in Adj EBITDA Depreciation and Amortization ~$345M Includes Acquisitions and Divestitures and Capacity Expansions Previous: ~$320M Includes Acquisitions and Divestitures Interest Expense ~$185M Excludes borrowin
Slide 16: Robust Liquidity; Total Debt ~$4.5B, Weighted Average Interest Rate ~4.3%
Robust Liquidity; Total Debt ~$4.5B, Weighted Average Interest Rate ~4.3% Fixed Rate Notes Q1 2026: Added $1.65B Debt for ~$1.8B CAM Acquisition Commercial Paper (CP) Q2 2026: Paid Down $186M 2026 JPY Term Loan; Entered Into $300M Cross-Currency JPY Swap on 2028 Notes1; Combined Debt Actions Gen
Slide 17: Reconciliation of Adjusted Net Income and Adjusted EPS
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 $4.18 Average number of diluted shares 405 402 400 406 402
Slide 18: Reconciliation of Operational Tax Rate
Reconciliation of Operational Tax Rate ($ in millions) Q3 2026 Q3 YTD 2026 Effective tax Operational Effective tax Operational Special Special rate, as items(1)(2) tax rate, as rate, as tax rate, as reported items(1)(2) adjusted reported adjusted Income before income taxes $721 $9 $730 $2,078 $(55)
Slide 19: Calculation of Segment Markets Revenue
Calculation of Segment Markets Revenue Engine Fastening Engineered Forged Total ($ in millions) Products Systems Structures Wheels Segment Q3 2025 Aerospace - Commercial $591 $310 $208 $— $1,109 Aerospace - Defense $229 $44 $84 $— $357 Commercial Transportation $— $54 $— $247 $301 Gas Turbines $241
Slide 20: Calculation of Segment Information
Calculation of Segment Information ($ 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 $
Slide 21: Calculation of Segment Information (continued)
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 $
Slide 22: Reconciliation of Total Segment Adj. EBITDA to Operating Income
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 $777 Operating income margin 25.4% 25.4% 25.9% 22.6% 24.8% 32.6% 27.9% 28.7% Segment provision for dep
Slide 23: Reconciliation of Adjusted Corporate Expense
Reconciliation of Adjusted Corporate Expense ($ 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 $38 Provision for depreciation and amortization 1 2 2 1 6 2 1 2 Acquisition and acquisition-related costs(1) — — — 2 2 6 22 7 Co
Slide 24: Reconciliation of Adj. Operating Income, Adj. EBITDA and Margins
Reconciliation of Adj. Operating Income, Adj. Operating Income Margin, Adj. EBITDA, and Adj. EBITDA Margin ($ 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 $2
Slide 25: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow ($ 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) $65 Cash
Slide 26: Reconciliation of Net Debt to Adjusted EBITDA
Reconciliation of Net Debt to Adjusted EBITDA ($ in millions) Trailing-12 months ended June 30, 2026 September 30, 2026 Net income $1,871 $2,053 Add: Provision for income taxes 411 455 Other expense, net 30 28 Loss on debt redemption 15 15 Interest expense, net 168 179 Restructuring and other credit
Slide 27: Reconciliation of Organic Revenue Growth
Reconciliation of Organic Revenue Growth ($ in millions) % Change - Q3 2025 Q3 2026 % Change - Sales Organic Revenue Acquisitions and Acquisitions and Sales Organic Revenue Sales Organic Revenue Divestitures Divestitures Engine Products $1,087 $— $1,087 $1,451 $— $1,451 33% 33% Fastening Systems $44
Slide 28: rr) HOWMET
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