Howmet Aerospace Inc. · NYSE:HWM
Howmet Aerospace — Q2 2026 Earnings Presentation
28 slides from Howmet Aerospace's earnings presentation, Aug 6, 2026
Slide 1: Second Quarter 2026 Earnings Call
Second Quarter 2026 Earnings Call John Plant: Executive Chairman and Chief Executive Officer Patrick Winterlich: EVP and Chief Financial Officer August 6, 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: Q2 2026 Highlights
Q2 2026 Highlights Revenue and Profitability Q2 2025 Q1 2026 Q2 2026 Q2 YoY Revenue $2.053B $2.313B $2.547B +24% Organic Growth +21% YoY 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
Slide 5: Q2 2026 Revenue Up 24% YoY, Commercial Aerospace Up 28% YoY
Q2 2026 Revenue Up 24% YoY, Commercial Aerospace Up 28% YoY Q2 2026 Revenue by Market Revenue by Market YoY Seq (% of total) (% change) Other Gas Turbines 4% Commercial Aerospace 28% 12% 13% Defense Aerospace 11% 6% Commercial $2.547B Transportation 15% Total 53% Commercial Transportation 12% 8% Rev
Slide 6: Q2 2026 YoY: Revenue Up 24%, Adj EBITDA Up 39%, Adj EPS Up 46%
Q2 2026 YoY: Revenue Up 24%, Adj EBITDA1 Up 39%, Adj EPS2 Up 46% ▪ Revenue Up 24% YoY, driven by Comm Aero Up 28% and Gas Turbines Up 38% YoY; Organic Growth Up 21% YoY Enhanced ▪ Adj EBITDA1 of $817M, Up 39% YoY. Adj EBITDA Margin1 of 32.1%, Up ~340 bps YoY Profitability ▪ Adj Earnings Per Share2 o
Slide 7: Engine Products: Revenue Up 32% Q2 YoY; Adj EBITDA Margin 37.7%
Engine Products: Revenue Up 32% Q2 YoY; Adj EBITDA Margin 37.7% Q2 Revenue by Market +32% (% of total) Other $1,373M $1,253M 2% $1,087M $1,143M $1,038M Gas Turbines 3rd Party 24% Revenue 56% Commercial Aerospace 18% Defense Aerospace Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2026 YoY +51% Segment $
Slide 8: Fastening Systems: Revenue Up 37% Q2 YoY; Adj EBITDA Margin 30.1%
Fastening Systems: Revenue Up 37% Q2 YoY; Adj EBITDA Margin 30.1% Q2 Revenue by Market +37% (% of total) $589M $431M $448M $454M $471M Other 10% 3rd Party Revenue Commercial Transportation 9% 70% Commercial Aerospace Defense Aerospace 11% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2026 YoY +40% Segm
Slide 9: Engineered Structures: Revenue Down 13% Q2 YoY; Adj EBITDA Margin 23.8%
Engineered Structures: Revenue Down 13% Q2 YoY; Adj EBITDA Margin 23.8% Q2 Revenue by Market -13% (% of total) $308M $307M $307M $294M Other $269M 6% 3rd Party Revenue Defense Aerospace 28% 66% Commercial Aerospace Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2026 YoY -6% Segment $68M $64M $66M $66M $
Slide 10: Forged Wheels: Revenue Up 14% Q2 YoY; Adj EBITDA Margin 27.8%
Forged Wheels: Revenue Up 14% Q2 YoY; Adj EBITDA Margin 27.8% Q2 Revenue by Region +14% (% of total) $295M $316M Other $276M $264M 13% $247M 3rd Party Revenue 54% North America Europe 33% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2026 YoY +16% Segment $90M - Volume Down 8% YoY; Up 7% QoQ $88M $76M
Slide 11: 2026 Guidance
2026 Guidance Q3 2026 Guidance FY 2026 Guidance What we expect in 2026 Low Baseline High Low Baseline High Revenue $2.565B $2.575B $2.585B $10.000B $10.050B $10.100B ▪ FY 2026 Revenue up ~22% vs. FY 2025 Baseline Change +$400M ▪ FY 2026 Adj EBITDA up ~34% vs. FY 2025 Adj EBITDA $825M $830M $835M $3.
Slide 12: Summary
Summary ▪ Revenue Up 24% YoY, driven by Comm Aero Up 28% and Gas Turbines Up 38% YoY; Organic Growth Up 21% YoY Revenue / Profit ▪ Adj EBITDA1 of $817M, Up 39% YoY. Adj EBITDA Margin1 of 32.1%, Up ~340 bps YoY Q2 2026 ▪ Adj Earnings Per Share2 of $1.33, Up 46% YoY Cash ▪ Free Cash Flow3 of $479M; En
Slide 13: Howmet Aerospace
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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 ~$105M ▪ Included in Adj EBITDA Previous: ~$100M Depreciation and Amortization ~$320M ▪ Includes Acquisitions and Divestitures ~$185M ▪ Includes Acquisitions and Divestitures Interest Expense Previous: ~$190M ▪ Excludes borrowing, brea
Slide 16: Robust Liquidity; Total Debt ~$4.5B, Weighted Average Interest Rate ~4.2%
Robust Liquidity; Total Debt ~$4.5B, Weighted Average Interest Rate ~4.2% 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) 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 $2.77 Average number of diluted shares 406 403 402 407 402
Slide 18: Reconciliation of Operational Tax Rate
Reconciliation of Operational Tax Rate ($ in millions) Q2 2026 Q2 YTD 2026 Effective tax Special Operational Effective tax Special Operational rate, as items(1)(2) tax rate, as rate, as items(1)(2) tax rate, as reported adjusted reported adjusted Income before income taxes $649 $22 $671 $1,357 $(64)
Slide 19: Calculation of Segment Markets Revenue
Calculation of Segment Markets Revenue Engine Fastening Engineered Forged Total ($ in millions) Products Systems Structures Wheels Segment Q2 2025 Aerospace - Commercial $562 $297 $201 $— $1,060 Aerospace - Defense $214 $44 $94 $— $352 Commercial Transportation $— $56 $— $276 $332 Gas Turbines $233
Slide 20: Calculation of Segment Information
Calculation of Segment Information ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 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 $4
Slide 21: Calculation of Segment Information (continued)
Calculation of Segment Information (continued) ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 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 $4
Slide 22: Reconciliation of Total Segment Adj. EBITDA to Operating Income
Reconciliation of Total Segment Adj. EBITDA to Operating Income ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Operating income $494 $521 $542 $489 $2,046 $753 $711 Operating income margin 25.4% 25.4% 25.9% 22.6% 24.8% 32.6% 27.9% Segment provision for depreciation and amort
Slide 23: Reconciliation of Adjusted Corporate Expense
Reconciliation of Adjusted Corporate Expense ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Corporate expense $22 $25 $25 $28 $100 $32 $52 Provision for depreciation and amortization 1 2 2 1 6 2 1 Acquisition and acquisition-related costs(1) — — — 2 2 6 22 Costs (benefits) a
Slide 24: Reconciliation of Adj. Operating Income, Adj. EBITDA and Margins
Reconciliation of Adj. Operating Income, Adj. Operating Income Margin, Adj. EBITDA, and Adj. EBITDA Margin ($ in millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 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 $711
Slide 25: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow ($ 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) $685 Cash provided from (used for) investin
Slide 26: Reconciliation of Net Debt to Adjusted EBITDA
Reconciliation of Net Debt to Adjusted EBITDA ($ in millions) Trailing-12 months ended March 31, 2026 June 30, 2026 Net income $1,744 $1,871 Add: Provision for income taxes 358 411 Other expense, net 33 30 Loss on debt redemption 15 15 Interest expense, net 155 168 Restructuring and other credits (5
Slide 27: Reconciliation of Organic Revenue
Reconciliation of Organic Revenue ($ 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 fin
Slide 28: Howmet Aerospace
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