Howmet Aerospace Inc. · NYSE:HWM
Howmet Aerospace — Q1 2026 Earnings Presentation
28 slides from Howmet Aerospace's earnings presentation, May 7, 2026
Slide 1: First Quarter 2026 Earnings Call
First Quarter 2026 Earnings Call John Plant: Executive Chairman and Chief Executive Officer Patrick Winterlich: EVP and Chief Financial Officer May 7, 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: Q1 2026 Highlights
Q1 2026 Highlights Revenue and Profitability Q1 2025 Q4 2025 Q1 2026 Q1 YoY Revenue $1.942B $2.168B $2.313B +19% Adj EBITDA1 $560M $653M $740M +32% Adj EBITDA Margin1 28.8% 30.1% 32.0% +320 bps Adj Operating Income1 $491M $580M $666M +36% Adj Operating Income Margin1 25.3% 26.8% 28.8% +350 bps Adj E
Slide 5: Q1 2026 Revenue Up 19% YoY, Commercial Aerospace Up 20% YoY
Q1 2026 Revenue Up 19% YoY, Commercial Aerospace Up 20% YoY Q1 2026 Revenue by Market Revenue by Market YoY Seq (% of total) (% change) Other Gas Turbines 4% Commercial Aerospace 20% 7% 12% Defense Aerospace 10% Flat Commercial $2.313B Transportation 15% Total 53% Commercial Transportation 13% 12% R
Slide 6: Q1 2026 YoY: Revenue Up 19%, Adj EBITDA Up 32%, Adj EPS Up 42%
Q1 2026 YoY: Revenue Up 19%, Adj EBITDA1 Up 32%, Adj EPS2 Up 42% ▪ Revenue Up 19% YoY, driven by Comm Aero Up 20%, Defense Aero Up 10%, and Gas Turbines Up 39% YoY Enhanced ▪ Adj EBITDA1 of $740M, Up 32% YoY. Adj EBITDA Margin1 of 32.0%, Up ~320 bps YoY Profitability ▪ Adj Earnings Per Share2 of $1.
Slide 7: Engine Products: Revenue Up 29% Q1 YoY; Adj EBITDA Margin 36.6%
Engine Products: Revenue Up 29% Q1 YoY; Adj EBITDA Margin 36.6% Q1 Revenue by Market +29% (% of total) Other $1,253M $1,087M $1,143M 2% $974M $1,038M Gas Turbines 3rd Party 23% Revenue 56% Commercial Aerospace Defense Aerospace 19% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2026 YoY +44% Segment $45
Slide 8: Fastening Systems: Revenue Up 14% Q1 YoY; Adj EBITDA Margin 31.8%
Fastening Systems: Revenue Up 14% Q1 YoY; Adj EBITDA Margin 31.8% Q1 Revenue by Market +14% (% of total) $448M $454M $471M $412M $431M Other 10% 3rd Party Revenue Commercial Transportation 11% 68% Commercial Aerospace 11% Defense Aerospace Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2026 YoY +18% Seg
Slide 9: Engineered Structures: Revenue Down 3% Q1 YoY; Adj EBITDA Margin 22.4%
Engineered Structures: Revenue Down 3% Q1 YoY; Adj EBITDA Margin 22.4% Q1 Revenue by Market -3% (% of total) $304M $308M $307M $307M $294M Other 9% 3rd Party Revenue 65% Commercial Aerospace Defense Aerospace 26% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2026 YoY -1% Segment $67M $68M $64M $66M $66
Slide 10: Forged Wheels: Revenue Up 17% Q1 YoY; Adj EBITDA Margin 30.5%
Forged Wheels: Revenue Up 17% Q1 YoY; Adj EBITDA Margin 30.5% Q1 Revenue by Region +17% (% of total) $276M $295M Other $252M $247M $264M 13% 3rd Party Revenue 50% North America Europe 37% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2026 YoY +32% Segment $90M - Commercial Transportation Market Down $7
Slide 11: 2026 Guidance
2026 Guidance Q2 2026 Guidance FY 2026 Guidance What we expect in 2026 Low Baseline High Low Baseline High Revenue $2.390B $2.400B $2.410B $9.575B $9.650B $9.725B ▪ FY 2026 Revenue up ~17% vs. FY 2025 Baseline Change +$550M ▪ FY 2026 Adj EBITDA up ~27% vs. FY 2025 Adj EBITDA $760M $765M $770M $3.025
Slide 12: Summary
Summary ▪ Revenue Up 19% YoY, driven by Comm Aero Up 20%, Defense Aero Up 10%, and Gas Turbines Up 39% YoY Revenue / Profit ▪ Adj EBITDA1 of $740M, Up 32% YoY. Adj EBITDA Margin1 of 32.0%, Up ~320 bps YoY Q1 2026 ▪ Adj Earnings Per Share2 of $1.22, Up 42% YoY ▪ Free Cash Flow3 of $359M; Ending Cash
Slide 13: HOWMET
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Slide 14: Appendix
Appendix Pl HOWMET UELJ AEROSPACE
Slide 15: 2026 Assumptions
2026 Assumptions Full Year 2026 2026 Comments Corporate Overhead ~$100M ▪ Included in Adj EBITDA Depreciation and Amortization ~$320M ▪ Includes Acquisitions and Divestitures Previous: ~$300M ~$190M ▪ Includes Acquisitions and Divestitures Interest Expense Previous: ~$135M ▪ Excludes borrowing, brea
Slide 16: Robust Liquidity including $1.65B Debt Added for $1.8B CAM Acquisition
Robust Liquidity including $1.65B Debt Added for $1.8B CAM Acquisition Fixed Rate Notes ▪ Added $400M 2028 Notes, $300M 2029 Notes, $500M 2036 Notes, and Commercial Paper (CP) $450M Commercial Paper to finance the CAM Acquisition ▪ Total Debt of ~$4.7B with a Weighted Average Rate of ~4.3% $1,000 $1
Slide 17: Reconciliation of Adjusted Net Income and Adjusted EPS
Reconciliation of Adjusted Net Income and Adjusted EPS ($ in millions, except per-share amounts) Q1 2025 Q4 2025 Q1 2026 Net income $344 $372 $580 Diluted Earnings Per Share ("EPS") $0.84 $0.92 $1.44 Average number of diluted shares 407 404 403 Special items: Restructuring and other (credits) charge
Slide 18: Reconciliation of Operational Tax Rate
Reconciliation of Operational Tax Rate ($ in millions) Q1 2026 Effective tax Special Operational rate, as items(1)(2) tax rate, as reported adjusted Income before income taxes $708 $(86) $622 Provision for income taxes $128 $— $128 Tax rate 18.1% 20.6% Operational tax rate is a non-GAAP financial me
Slide 19: Calculation of Segment Markets Revenue
Calculation of Segment Markets Revenue Engine Fastening Engineered Forged Total ($ in millions) Products Systems Structures Wheels Segment Q1 2025 Aerospace - Commercial $535 $275 $206 $— $1,016 Aerospace - Defense $211 $42 $80 $— $333 Commercial Transportation $— $53 $— $252 $305 Gas Turbines $204
Slide 20: Calculation of Segment Information
Calculation of Segment Information ($ in millions) FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Engine Products Third-party sales $ 3,671 $ 974 $ 1,038 $ 1,087 $ 1,143 $ 4,242 $ 1,253 Inter-segment sales $ 6 $ 2 $ 3 $ 2 $ 1 $ 8 $ 2 Provision for depreciation and amortization $ 138 $ 33 $
Slide 21: Calculation of Segment Information (continued)
Calculation of Segment Information (continued) ($ in millions) FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Engineered Structures Third-party sales $ 1,129 $ 304 $ 308 $ 307 $ 307 $ 1,226 $ 294 Inter-segment sales $ 28 $ 7 $ 8 $ 7 $ 4 $ 26 $ 8 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 Operating income $494 $521 $542 $489 $2,046 $753 Segment provision for depreciation and amortization 68 67 70 72 277 72 Unallocated amounts: Restructuring and other (credit
Slide 23: Reconciliation of Adjusted Corporate Expense
Reconciliation of Adjusted Corporate Expense ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Corporate expense $22 $25 $25 $28 $100 $32 Provision for depreciation and amortization 1 2 2 1 6 2 Acquisition and acquisition-related costs(1) — — — 2 2 6 Costs (benefits) associated with cl
Slide 24: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Third-party sales $1,942 $2,053 $2,089 $2,168 $8,252 $2,313 Operating income $494 $521 $542 $489 $2,046 $753 Operating income margin 25.4% 25.4% 25.9% 22.6% 24.8% 32.6% Operat
Slide 25: Reconciliation of Adjusted Operating Income and Margin
Reconciliation of Adjusted Operating Income and Margin ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Third-party sales $1,942 $2,053 $2,089 $2,168 $8,252 $2,313 Operating income $494 $521 $542 $489 $2,046 $753 Operating income margin 25.4% 25.4% 25.9% 22.6% 24.8% 32.6% Operating in
Slide 26: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow ($ in millions) Q1 2025 Q1 2026 Cash provided from operations $253 $453 Capital expenditures (119) (94) Free cash flow $134 $359 Cash (used for) provided from financing activities $(167) $1,226 Cash (used for) provided from investing activities $(115) $14 The Account
Slide 27: Reconciliation of Net Debt to Adjusted EBITDA
Reconciliation of Net Debt to Adjusted EBITDA ($ in millions) Trailing-12 months ended December 31, 2025 March 31, 2026 Net income $1,508 $1,744 Add: Provision for income taxes 332 358 Other expense, net 40 33 Loss on debt redemption 15 15 Interest expense, net 151 155 Restructuring and other charge
Slide 28: HOWMET
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