Earnings Per Share and Common Stock

6 Months Ended

Jun. 30, 2026

Basic earnings per share (“EPS”) amounts are computed by dividing earnings, after the deduction of preferred stock dividends declared, by the average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding.

The information used to compute basic and diluted EPS attributable to Howmet common shareholders was as follows (shares in millions in the table below):


	Second quarter ended				Six months ended
	June 30,				June 30,
	2026		2025		2026		2025


Net income	$	534	$	407	$	1,114	$	751
Less: preferred stock dividends declared	—		—		—		1
Net income available to Howmet Aerospace common shareholders - basic and diluted	$	534	$	407	$	1,114	$	750



Average shares outstanding - basic	400		404		400		404
Effect of dilutive securities:
Stock and performance awards	2		2		2		3


Average shares outstanding - diluted	402		406		402		407

There were no shares relating to outstanding stock options excluded from the calculation of average shares outstanding - diluted for the second quarter and six months ended June 30, 2026 and 2025.

Common stock outstanding as of June 30, 2026 and 2025 was 400 million and 404 million, respectively. Howmet redeemed all outstanding shares of its $3.75 Cumulative Class A Preferred Stock on December 17, 2025. There is no preferred stock outstanding as of June 30, 2026.

The Company has a Share Repurchase Program (the “Share Repurchase Program”) under which the Company may repurchase shares by means of trading plans established from time to time in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, block trades, private transactions, open market repurchases and/or accelerated share repurchase agreements, or other derivative transactions. There is no stated expiration for the Share Repurchase Program. Under the Share Repurchase Program, the Company may repurchase shares from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements and other considerations. The Company is not obligated to repurchase any specific number of shares or to do so at any particular time, and the Share Repurchase Program may be suspended, modified, or terminated at any time without prior notice.

The following table provides details for share repurchases made for the periods presented:


	Number of shares(1)	Average price per share(2)		Total
Q1 2026 open market repurchase	1,301,914	$	230.43	$	300

Q2 2026 open market repurchase	1,197,056	$	250.61	$	300



2026 open market repurchases as of June 30, 2026	2,498,970	$	240.10	$	600

Q1 2025 open market repurchase	1,006,102	$	124.24	$	125

Q2 2025 open market repurchase	1,229,313	$	142.36	$	175



2025 open market repurchases as of June 30, 2025	2,235,415	$	134.20	$	300

(1)All of the shares repurchased have been retired.

(2)Excludes commissions cost.

The Share Repurchase Program was authorized by the Company’s Board of Directors in August 2021 at $1,500, which was increased by $2,000 by the Board in July 2024 to a total authorization of $3,500. As of August 3, 2026, the Company has approximately $697 in Board authorization remaining available after giving effect to the additional $200 share repurchases made in July 2026 at an average price per share of $276.61, which retired approximately 0.7 million additional shares.

As average shares outstanding are used in the calculation for both basic and diluted EPS, the full impact of share repurchases and issuances is not fully realized in EPS in the period of repurchase or issuance since share activity may occur at varying points during a period.

For excise tax on net repurchases, the Company recorded $3 in the second quarter ended June 30, 2026 and $5 in the six months ended June 30, 2026 and $1 in the second quarter and $2 in the six months ended June 30, 2025 to additional capital.