Results
4Revenue up 24% Year over Year, Organic Growth 21% ; G AAP EPS $1.33, Adjusted EPS $1.33
Capital return
Strong Second Quarter Cash Generation; $300 Million Deployed for Common Stock Repurchases
Outlook
Full Year 2026 Guidance IncreasedGuidance raised
Summary Financial ResultsGuidance raised
Results
Key Activity
Corporate events
Completed acquisition of CAM on April 6, 2026 for approximately $1.8 billion
2Paid down the Company's $186 million Japanese Yen-denominated term loan facility and entered into a separate $300 million cross-currency swap, reducing annualized interest expense by $12 million
Capital return
1Increased the third quarter common stock dividend by 17% to $0.14 per s hare
Management commentary
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, “The Howmet team delivered a strong set of results, with revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share all exceeding the high end of guidance.
3Revenue growth was healthy at 24% year over year and 21% excluding the net impact of the three asset transactions completed this year.
8Adjusted EBITDA margin expanded 340 basis points year over year to 32.1%, including the absorption of the CAM fastener acquisition in April.
Free cash flow performance was excellent at $479 million after $104 million in capital expenditures, supporting the future growth rate of the Company.
The free cash flow also enabled $800 million in common stock repurchases year to date through July, an amount already greater than total repurchases in 2025.”
Mr. Plant continued, “Looking ahead, Howmet is well positioned, with all our major markets in growth mode.
More robust build rates for commercial aircraft are supported by record backlogs, while engine spares needs continue to increase.
Defense markets remain healthy, and the focus for missiles, drones and collaborative combat aircraft continues with growth expected over the medium term.
Demand in the gas turbines market is extraordinary with customers already revisiting and adding to their demand outlooks .
The commercial transportation market has begun to recover, as anticipated.”
"Our capital expenditure requirements continue to increase, and we already see the need to increase this further in 2027 to support future organic growth expectations in both the aerospace and gas turbines markets.
We closed the CAM acquisition in April, and the integration is on track.
Continued healthy cash generation will allow us to achieve pre-CAM leverage levels in short order, with the Company well positioned to consider all paths of capital deployment optionality going forward."
Outlook
2026 Guidance
Consolidated Results
Results
7Howmet Aerospace reported second quarter 2026 revenue of $2.55 billion, up 24% year ov er year with organic growth of 21%, and Adjusted EPS of $1.33, up 46% year over year.
Revenue was driv en by 28% growth in the commercial aerospace market, 11% growth in the defense aerospace market and 38% growth in the gas turbines market.
The Company reported adjusted EBITDA of $817 million, up 39% year over year.
The year-over-year increase was driven by strong growth in the commercial aerospace, defense aerospace, and gas turbines markets.
Adj usted EBITDA margin was up approximately 340 basis points year over year at 32.1%.
Segment Results
Engine Products
Engine Products reported second quarter 2026 revenue of $1.37 billion, an increase of 32% year over year, driven by growth in t he commercial aerospace, defense aerospace, and gas turbines markets.
Segment Adjusted EBITDA was $517 million, up 51% year over year, driven by growth in the commercial aerospace, defense aerospace, and gas t urbines markets.
The Segment absorbed approximately 485 net headcount in the quarter in support of expected revenue increases.
Segment Adjusted EBITDA margin increased approximately 470 basis points year over year to 37.7%.
Fastening Systems
Fastening Systems repor ted revenue of $589 million, an increase of 37% year over year, driven by growth in the commercial aerospace and defense aerospace markets.
Revenue includes the impacts from the CAM and Brunner acquisitions.
Segment Adjusted EBITDA was $177 million, up 40% year over year, driven by growth in the commercial aerospace and defense aerospace markets and including contributions from the acquisitions.
Segm ent Adjusted EBITDA margin increased approximately 90 basis points year over year to 30.1%.
Engineered Structures
Engineered Structures reported revenue of $269 million, a decrease of 13% year over year, driven by the divestiture of the Savannah disk forging facility and product rationalization.
Se gment Adjusted EBITDA was $64 million, a decrease of 6% year over year on the exit of lower-margin business including the divestiture .
Se gment Adjusted EBITDA margin increased approximately 170 basis points year over year to 23.8%.
Forged Wheels
Forged Wheels reported revenue of $316 million, an increase of 14% year over year, with 8% lower volumes in the commercial transportation market more than offset by an increase in aluminum and other inflationary cost pass through.
6Volumes increased 7% sequentially from the first quarter 2026, reflecting the beginning of the recovery of the North American commercial transportation market.
Segm ent Adjusted EBITDA was $88 million and increased 16% year over year, driven by cost reductions, including lower net headcount, in response to lower volumes.
Segment Adjusted EBITDA margin increased approximately 30 basis points year over year to 27.8% despite the impact of higher aluminum cost pass through.
Corporate events
Completed Acquisition of CAM for Approximately $1.8 Billion
On April 6, 2026, the Company completed the acquisition of Consolidated Aerospace Manufacturing, LLC (CAM) for approximately $1.8 billion from Stanley Black & Decker, Inc. CAM is a leading global designer and manufacturer of precision fasteners, fluid fittings, and other complex, highly engineered products for demanding aerospace and defense applications.
Debt Actions in Second Quarter Reduce Annualized Interest Expense by Approximately $12 Million
On May 22, 2026, the Company repaid the outstanding principal amount of its Japanese Yen-denominated, senior unsecured term loan facility for approximately $186 million with cash on hand.
The Company also entered into a cross-currency swap to synthetically convert the outstanding $300 million aggregate principal amount of its 6.75% Bonds due 2028 into a Japanese Yen liability for a fixed interest rate of approximately 3.88%.
5The combined effect of these debt actions will reduce annualized interest expense by $12 million.
Capital return
Repurchased $300 Million of Common Stock in Second Quarter 2026; $200 Million in July 2026
In the second quarter 2026, Howmet Aerospace repurchased $300 million of common stock at an average price of $250.61 per share, retiring approximately 1.2 million shares.
In July 2026, the Company repurchased an additional $20 0 million of common stock at an average price of $276.61 per share, retiring approximately 0.7 million shares.
Year to date through July, the Company has repurchased $800 million of shares at an average price of $248.29 per share, exceeding the $700 million of shares repurchased in all of 2025.
As of August 6, 2026, total share repurchase authorization available was $697 million.
Quarterly Common Stock Dividend Increas es 17% to $0.14 Per Sh are in Third Quarter 2026
On July 27 , 2026, the Board of Directors declared a dividend o f $0.14 pe r share on its common stock to be paid on August 25 , 2026 to holders of record as of the close of business on August 7 , 2026.
The quarterly dividend represents a 17% inc rease from the second quarter 2026 dividend of $0.12 per share.
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