Acquisitions and Divestitures

6 Months Ended

Jun. 30, 2026

Acquisitions And Divestitures [Abstract]

Acquisitions

On April 6, 2026, Howmet completed its previously announced stock purchase of Consolidated Aerospace Manufacturing, LLC (“Consolidated Aerospace Manufacturing” or “CAM”), a wholly-owned subsidiary of Stanley Black & Decker, Inc. (“Stanley Black & Decker”), for a cash purchase price of approximately $1,812, net of cash and cash equivalents acquired of $1, subject to customary adjustments (the “CAM Acquisition”). CAM is a global aerospace manufacturer focused on highly-engineered, mission-critical parts used in aerospace markets, such as fasteners, fluid fittings and connectors, and other engineered products. This acquisition expands Howmet’s aerospace fastening systems portfolio and increases exposure to key aircraft and defense programs. Howmet financed the CAM Acquisition through utilizing a variety of financing sources, which include the notes issued in March 2026, borrowings under its commercial paper program (See Note O), and cash on hand. A portion of the goodwill relating to this transaction will be deductible for income tax purposes.

On February 6, 2026, the Company acquired all of the stock of Brunner Manufacturing Co. Inc. (“Brunner”), a privately-held manufacturer of high-quality fastener products in Wisconsin, for an all-cash purchase price of approximately $120, net of cash and cash equivalents acquired of $2.

The Company’s preliminary allocation of the purchase price for both the CAM and Brunner acquisitions, based upon the estimated fair value of assets acquired and liabilities assumed, is as follows:


Assets Acquired

Receivables from customers	$	83
Inventories	181

Properties, plants, and equipment	204
Other noncurrent assets	41
Intangible assets	425
Total Assets Acquired	934

Liabilities Assumed
Accounts payable, trade	$	40
Accrued compensation and retirement costs	14
Other current liabilities	10
Other noncurrent liabilities	23
Total Liabilities Assumed	87

Net Assets Acquired	$	847

Goodwill	$	1,082

The final allocations of purchase price will be based on management’s best estimates. Valuations of the assets acquired, other studies related to potential environmental and contingent liabilities, and other liabilities assumed may result in the identification of other intangible assets or liabilities. The valuations are expected to be completed by the end of 2026. The CAM and Brunner acquisitions have been included in the operations of the Fastening Systems segment, with revenue primarily included within Aerospace - Commercial, Aerospace - Defense, and Other in end-market revenue (See Note D). The aforementioned acquisitions’ combined third-party sales were approximately 2% of the Company’s consolidated sales and approximately 1% of consolidated net income from the respective acquisition dates through June 30, 2026.

Divestitures

On March 31, 2026, the Company completed the sale of its disk forging facility in Savannah, Georgia for $230 (of which approximately $225 was received in the first quarter of 2026, with the remainder expected in the fourth quarter of 2026). This resulted in a gain of $93 in the first quarter of 2026 that was recorded in Restructuring and other credits in the Statement of Consolidated Operations. This business had net assets of approximately $92, and the sale resulted in a reduction of goodwill in the Engineered Structures reporting unit of approximately $41. The sale remains subject to certain post-closing adjustments. This business was reclassified to assets and liabilities of operations held for sale, primarily included in Prepaid expenses and other current assets in the fourth quarter of 2025 and generated sales of approximately $130 for the year ended December 31, 2025 and had approximately 160 employees at the time of divestiture.