Howmet Aerospace Inc. and subsidiaries Statement of Consolidated Operations (unaudited) (in millions, except per-share amounts) Second quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 Sales (D) $ 2,547 $ 2,053 $ 4,860 $ 3,995 Cost of goods sold (exclusive of expenses below) 1,596 1,365 3,055 2,655 Selling, general administrative, and other expenses 148 89 259 174 Research and development expenses 8 9 17 17 Provision for depreciation and amortization 84 69 158 138 Restructuring and other credits (E) — — (93) (4) Operating income 711 521 1,464 1,015 Interest expense, net 51 38 94 77 Other expense, net (G) 11 14 13 23 Income before income taxes 649 469 1,357 915 Provision for income taxes (H) 115 62 243 164 Net income $ 534 $ 407 $ 1,114 $ 751 Amounts Attributable to Howmet Aerospace Common Shareholders (I): Net income $ 534 $ 407 $ 1,114 $ 750 Earnings per share: Basic $ 1.33 $ 1.01 $ 2.78 $ 1.85 Diluted $ 1.33 $ 1.00 $ 2.77 $ 1.84 Average Shares Outstanding (I): Basic 400 404 400 404 Diluted 402 406 402 407 The accompanying notes are an integral part of the consolidated financial statements. 3 Howmet Aerospace Inc. and subsidiaries Statement of Consolidated Comprehensive Income (unaudited) (in millions) Second quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 Net income $ 534 $ 407 $ 1,114 $ 751 Other comprehensive (loss) income, net of tax (J): Change in unrecognized net actuarial loss and prior service cost related to pension and other postretirement benefits 4 3 8 6 Foreign currency translation adjustments (10) 117 (42) 162 Net change in unrecognized (losses) gains on cash flow hedges — (39) 10 (39) Total Other comprehensive (loss) income, net of tax (6) 81 (24) 129 Comprehensive income $ 528 $ 488 $ 1,090 $ 880 The accompanying notes are an integral part of the consolidated financial statements. 4 Howmet Aerospace Inc. and subsidiaries Consolidated Balance Sheet (unaudited) (in millions) June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 563 $ 742 Receivables from customers, less allowances of $— in both 2026 and 2025 (K) 1,040 779 Inventories (L) 2,183 1,849 Prepaid expenses and other current assets 407 409 Total current assets 4,193 3,779 Properties, plants, and equipment, net (M) 2,817 2,593 Goodwill 5,084 4,022 Deferred income taxes 48 40 Intangibles, net 869 457 Other noncurrent assets (N) 240 288 Total assets $ 13,251 $ 11,179 Liabilities Current liabilities: Accounts payable, trade (Q) $ 1,149 $ 845 Accrued compensation and retirement costs 304 343 Taxes, including income taxes (H) 87 77 Accrued interest payable 62 47 Deferred revenue 119 147 Other current liabilities (N)(Q) 134 121 Long-term debt due within one year (O) 1 191 Short-term borrowings (O) 450 — Total current liabilities 2,306 1,771 Long-term debt, less amount due within one year (O)(P) 4,050 2,859 Accrued pension benefits (F) 511 546 Accrued other postretirement benefits (F) 34 38 Other noncurrent liabilities and deferred credits (N) 618 612 Total liabilities 7,519 5,826 Contingencies and commitments (Q) Equity Howmet Aerospace shareholders’ equity: Common stock 400 402 Additional capital 1,919 2,531 Retained earnings 5,110 4,093 Accumulated other comprehensive loss (J) (1,697) (1,673) Total equity 5,732 5,353 Total liabilities and equity $ 13,251 $ 11,179 The accompanying notes are an integral part of the consolidated financial statements. 5 Howmet Aerospace Inc. and subsidiaries Statement of Consolidated Cash Flows (unaudited) (in millions) Six months ended June 30, 2026 2025 Operating activities Net income $ 1,114 $ 751 Adjustments to reconcile net income to cash provided from operations: Depreciation and amortization 158 138 Deferred income taxes 9 12 Restructuring and other credits (93) (4) Net realized and unrealized losses 8 11 Net periodic pension cost (F) 23 21 Stock-based compensation 57 39 Other 5 2 Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: Increase in receivables (K) (196) (170) Increase in inventories (L) (165) (81) (Increase) decrease in prepaid expenses and other current assets (53) 6 Increase in accounts payable, trade 279 74 Decrease in accrued expenses (59) (47) Decrease in taxes, including income taxes (27) (20) Pension contributions (21) (15) Increase in noncurrent assets (7) (2) Increase (decrease) in noncurrent liabilities 4 (16) Cash provided from operations 1,036 699 Financing Activities Net change in commercial paper (O) 450 — Additions to debt (O) 1,200 — Repurchases and payments on debt (O) (186) (77) Debt issuance costs (O) (12) — Repurchases of common stock (600) (300) Dividends paid to shareholders (97) (83) Taxes paid for net share settlement of equity awards (65) (44) Other (5) (2) Cash provided from (used for) financing activities 685 (506) Investing Activities Capital expenditures (D) (198) (221) Acquisitions, net of cash acquired (C) (1,929) — Proceeds from the sale of assets and businesses (C) 225 8 Other 2 1 Cash used for investing activities (1,900) (212) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — Net change in cash, cash equivalents and restricted cash (179) (19) Cash, cash equivalents and restricted cash at beginning of period 743 565 Cash, cash equivalents and restricted cash at end of period $ 564 $ 546 The accompanying notes are an integral part of the consolidated financial statements. 6 Howmet Aerospace Inc. and subsidiaries Statement of Changes in Consolidated Equity (unaudited) (in millions, except per-share amounts) Preferred stock Common stock Additional capital Retained earnings Accumulated other comprehensive loss Total Equity Balance at March 31, 2025 $ 55 $ 404 $ 3,095 $ 3,068 $ (1,830) $ 4,792 Net income — — — 407 — 407 Other comprehensive income (J) — — — — 81 81 Cash dividends declared: Preferred-Class A @ $0.9375 per share (I) — — — — — — Common @ $0.10 per share — — — (41) — (41) Repurchase and retirement of common stock (I) — (1) (175) — — (176) Stock-based compensation — — 25 — — 25 Common stock issued: compensation plans — 1 (47) — — (46) Balance at June 30, 2025 $ 55 $ 404 $ 2,898 $ 3,434 $ (1,749) $ 5,042 Preferred stock Common stock Additional capital Retained earnings Accumulated other comprehensive loss Total Equity Balance at March 31, 2026 $ — $ 401 $ 2,187 $ 4,625 $ (1,691) $ 5,522 Net income — — — 534 — 534 Other comprehensive loss (J) — — — — (6) (6) Cash dividends declared: Common @ $0.12 per share — — — (49) — (49) Repurchase and retirement of common stock (I) — (1) (302) — — (303) Stock-based compensation — — 36 — — 36 Common stock issued: compensation plans — — (2) — — (2) Balance at June 30, 2026 $ — $ 400 $ 1,919 $ 5,110 $ (1,697) $ 5,732 The accompanying notes are an integral part of the consolidated financial statements. 7 Howmet Aerospace Inc. and subsidiaries Statement of Changes in Consolidated Equity (unaudited) (U.S. dollars in millions, except per-share amounts) Preferred stock Common stock Additional capital Retained earnings Accumulated other comprehensive loss Total Equity Balance at December 31, 2024 $ 55 $ 405 $ 3,206 $ 2,766 $ (1,878) $ 4,554 Net income — — — 751 — 751 Other comprehensive income (J) — — — — 129 129 Cash dividends declared: Preferred-Class A @ $1.8750 per share (I) — — — (1) — (1) Common @ $0.20 per share — — — (82) — (82) Repurchase and retirement of common stock (I) — (2) (300) — — (302) Stock-based compensation — — 39 — — 39 Common stock issued: compensation plans — 1 (47) — — (46) Balance at June 30, 2025 $ 55 $ 404 $ 2,898 $ 3,434 $ (1,749) $ 5,042 Preferred stock Common stock Additional capital Retained earnings Accumulated other comprehensive loss Total Equity Balance at December 31, 2025 $ — $ 402 $ 2,531 $ 4,093 $ (1,673) $ 5,353 Net income — — — 1,114 — 1,114 Other comprehensive loss (J) — — — — (24) (24) Cash dividends declared: Common @ $0.24 per share — — — (97) — (97) Repurchase and retirement of common stock (I) — (2) (603) — — (605) Stock-based compensation — — 57 — — 57 Common stock issued: compensation plans — — (66) — — (66) Balance at June 30, 2026 $ — $ 400 $ 1,919 $ 5,110 $ (1,697) $ 5,732 The accompanying notes are an integral part of the consolidated financial statements. 8 Howmet Aerospace Inc. and subsidiaries Notes to the Consolidated Financial Statements (unaudited) (U.S. dollars in millions, except share and per-share amounts) A. Basis of Presentation The interim Consolidated Financial Statements of Howmet Aerospace Inc. and its subsidiaries (“Howmet” or the “Company” or “we” or “our”) are unaudited. These Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The results reported in these Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the entire year. The 2025 year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). This Form 10-Q report should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”), which includes all disclosures required by GAAP, and with Exhibit 99.1 to the Company’s Current Report on Form 8-K dated May 28, 2026, which provides recast historical segment information. Certain amounts in previously issued financial statements were reclassified to conform to the current period presentation. In the six months ended June 30, 2026, the Company derived approximately 68% of its revenue from products sold to the commercial and defense aerospace markets. The timing and level of future aircraft builds by original equipment manufacturers (“OEMs”) are subject to changes and uncertainties, including but not limited to geopolitical tensions or volatility in global energy and raw material markets, which may cause our future results to differ from prior periods due to changes in product mix in certain segments. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties in all segments. While the tariff situation remains fluid, we expect to pass along the costs associated with tariffs to our customers in the form of a cost pass through mechanism. There may be a delay between an increase in our costs and our ability to recover the higher costs that could impact our margins. The preparation of the Consolidated Financial Statements of the Company in conformity with GAAP requires management to make certain judgments, estimates, and assumptions. These estimates are based on historical experience and, in some cases, assumptions based on current and future market expectations, including considerations relating to changes in the aerospace industry. The impact of these changes, including the macroeconomic considerations, remains highly uncertain. Management has made its best estimates using all relevant information available at the time, but it is possible that our estimates will differ from our actual results and affect the Consolidated Financial Statements in future periods and potentially require adverse adjustments to the recoverability of goodwill, intangible and long-lived assets, the realizability of deferred tax assets and other judgments and estimations and assumptions. B. Recently Issued Accounting Guidance Issued In May 2026, the Financial Accounting Standards Board (“FASB”) issued guidance to improve the financial accounting for and disclosure of environmental credits and environmental credit obligations. These changes become effective for fiscal years beginning after December 15, 2027 for interim and annual reporting periods. Management is currently evaluating the impact of these changes on the Consolidated Financial Statements. In September 2025, the FASB issued guidance to simplify the requirements for the capitalization of costs surrounding internally-developed software. These changes become effective for fiscal years beginning after December 15, 2027 for interim and annual reporting periods. Management is currently evaluating the impact of these changes on the Consolidated Financial Statements. In November 2024, the FASB issued guidance to improve disclosures about an entity’s expenses including more detailed information about the components of expenses in commonly presented expense captions. These changes become effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Management is currently evaluating the impact of these changes on the Consolidated Financial Statements. 9 C. Acquisitions and Divestitures 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. 10 D. Segment Information Howmet is a global leader in lightweight metals engineering and manufacturing. Howmet’s innovative, multi-material products, which include nickel, titanium, aluminum, and cobalt, are used worldwide in the aerospace (commercial and defense), commercial transportation, gas turbines, and other markets. Segment performance under Howmet’s management reporting system is evaluated based on Segment Adjusted EBITDA. The Company’s Chief Executive Officer, who has been determined to be our Chief Operating Decision Maker (“CODM”), believes that Segment Adjusted EBITDA provides information with respect to the Company’s operating performance and the Company’s ability to meet its financial obligations. Howmet’s definition of Segment Adjusted EBITDA is defined as Operating Income excluding Restructuring and other credits, Provision for depreciation and amortization, and Special items. Special items, including Restructuring and other credits, are excluded from Segment Adjusted EBITDA. The Company’s CODM considers forecast-to-actual variances for Segment Adjusted EBITDA when allocating resources across the Company’s reportable segments. Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Differences between the total segment and consolidated totals are in Corporate. In the first quarter of 2026, the Company’s CODM reorganized Howmet’s segments by moving a titanium alloy location from Engine Products to Engineered Structures as it better aligns with the operations of the Engineered Structures segment. The comparable periods of Engine Products and Engineered Structures have been recast to reflect the new alignment. The recasting had no impact on the Company’s consolidated results, financial position or cash flows. Howmet’s operations consist of four worldwide reportable segments as follows: Engine Products Engine Products produces investment castings, including airfoils, and seamless rolled rings primarily for aircraft engines and gas turbine applications. Engine Products produces rotating parts, as well as structural parts. Fastening Systems Fastening Systems produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners. The business’s high-tech, multi-material fastening systems are found nose to tail on aircraft and aero engines. Fastening Systems’ products are also critical components of commercial transportation vehicles and construction, industrial, and renewable energy equipment. Engineered Structures Engineered Structures produces titanium ingots and mill products for aerospace and defense applications and is vertically integrated to produce titanium forgings, titanium extrusions, and machining services for airframe, wing, aero-engine, and landing gear components. Engineered Structures also produces aluminum forgings and aluminum machined components and assemblies for aerospace and defense applications. Forged Wheels Forged Wheels provides forged aluminum wheels and related products for heavy-duty trucks and the commercial transportation market. 11 The operating results of the Company’s reportable segments were as follows: Engine Products Fastening Systems Engineered Structures Forged Wheels Total Segment Second quarter ended June 30, 2026 Sales: Third-party sales $ 1,373 $ 589 $ 269 $ 316 $ 2,547 Inter-segment sales 3 — 8 — 11 Total sales $ 1,376 $ 589 $ 277 $ 316 $ 2,558 Expenses: Segment Adjusted cost of goods sold(1) $ 831 $ 373 $ 204 $ 216 $ 1,624 Other segment items(2) 28 39 9 12 88 Profit and loss: Segment Adjusted EBITDA $ 517 $ 177 $ 64 $ 88 $ 846 Provision for depreciation and amortization 42 20 11 10 83 Other: Capital expenditures $ 77 $ 11 $ 8 $ 4 $ 100 Second quarter ended June 30, 2025 Sales: Third-party sales $ 1,038 $ 431 $ 308 $ 276 $ 2,053 Inter-segment sales 3 — 8 — 11 Total sales $ 1,041 $ 431 $ 316 $ 276 $ 2,064 Expenses: Segment Adjusted cost of goods sold(1) $ 671 $ 276 $ 239 $ 189 $ 1,375 Other segment items(2) 27 29 9 11 76 Profit and loss: Segment Adjusted EBITDA $ 343 $ 126 $ 68 $ 76 $ 613 Provision for depreciation and amortization 35 12 10 10 67 Restructuring and other charges (credits) — 1 — (1) — Other: Capital expenditures $ 74 $ 9 $ 7 $ 8 $ 98 Engine Products Fastening Systems Engineered Structures Forged Wheels Total Segment Six months ended June 30, 2026 Sales: Third-party sales $ 2,626 $ 1,060 $ 563 $ 611 $ 4,860 Inter-segment sales 5 — 16 — 21 Total sales $ 2,631 $ 1,060 $ 579 $ 611 $ 4,881 Expenses: Segment Adjusted cost of goods sold(1) $ 1,596 $ 662 $ 430 $ 411 $ 3,099 Other segment items(2) 60 71 19 22 172 Profit and loss: Segment Adjusted EBITDA $ 975 $ 327 $ 130 $ 178 $ 1,610 Provision for depreciation and amortization 80 33 21 21 155 Restructuring and other credits — — (93) — (93) Other: Capital expenditures $ 136 $ 28 $ 20 $ 7 $ 191 Total assets 5,777 4,756 1,277 785 12,595 12 Six months ended June 30, 2025 Sales: Third-party sales $ 2,012 $ 843 $ 612 $ 528 $ 3,995 Inter-segment sales 5 — 15 — 20 Total sales $ 2,017 $ 843 $ 627 $ 528 $ 4,015 Expenses: Segment Adjusted cost of goods sold(1) $ 1,304 $ 532 $ 475 $ 363 $ 2,674 Other segment items(2) 52 58 17 21 148 Profit and loss: Segment Adjusted EBITDA $ 661 $ 253 $ 135 $ 144 $ 1,193 Provision for depreciation and amortization 68 24 23 20 135 Restructuring and other charges (credits) — 1 (4) (1) (4) Other: Capital expenditures $ 159 $ 19 $ 13 $ 23 $ 214 Total assets 5,512 2,787 1,374 748 $ 10,421 (1)Segment Adjusted cost of goods sold is exclusive of Provision for depreciation and amortization, Restructuring and other credits, and Corporate expenses. (2)Other segment items includes Selling, general administrative, and other expenses, and Research and development expenses; exclusive of Provision for depreciation and amortization, and Restructuring and credits. The following table reconciles Total Segment Adjusted EBITDA to Income before income taxes. Differences between the total segment and consolidated totals are in Corporate. Second quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 Total Segment Adjusted EBITDA $ 846 $ 613 $ 1,610 $ 1,193 Segment provision for depreciation and amortization (83) (67) (155) (135) Unallocated amounts: Restructuring and other credits — — 93 4 Corporate expense(1) (52) (25) (84) (47) Operating income $ 711 $ 521 $ 1,464 $ 1,015 Interest expense, net (51) (38) (94) (77) Other expense, net (11) (14) (13) (23) Income before income taxes $ 649 $ 469 $ 1,357 $ 915 (1) Corporate expense includes selling, general administrative and other expenses, costs of corporate headquarters, acquisition and acquisition-related costs, costs associated with closures, supply chain disruptions, and other items. The following table reconciles total segment capital expenditures with Capital expenditures as presented in the Statement of Consolidated Cash Flows. Second quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 Total segment capital expenditures $ 100 $ 98 $ 191 $ 214 Corporate 4 4 7 7 Capital expenditures $ 104 $ 102 $ 198 $ 221 13 The following table disaggregates segment revenue by major market served. Differences between the total segment and consolidated totals are in Corporate. Engine Products Fastening Systems Engineered Structures Forged Wheels Total Segment Second quarter ended June 30, 2026 Aerospace - Commercial $ 770 $ 412 $ 177 $ — $ 1,359 Aerospace - Defense 250 64 75 — 389 Commercial Transportation — 56 — 316 372 Gas Turbines 321 — — — 321 Other 32 57 17 — 106 Total end-market revenue $ 1,373 $ 589 $ 269 $ 316 $ 2,547 Second quarter ended June 30, 2025 Aerospace - Commercial $ 562 $ 297 $ 201 $ — $ 1,060 Aerospace - Defense 214 44 94 — 352 Commercial Transportation — 56 — 276 332 Gas Turbines 233 — — — 233 Other 29 34 13 — 76 Total end-market revenue $ 1,038 $ 431 $ 308 $ 276 $ 2,053 Six months ended June 30, 2026 Aerospace - Commercial $ 1,472 $ 734 $ 368 $ — $ 2,574 Aerospace - Defense 488 115 152 — 755 Commercial Transportation — 107 — 611 718 Gas Turbines 605 — — — 605 Other 61 104 43 — 208 Total end-market revenue $ 2,626 $ 1,060 $ 563 $ 611 $ 4,860 Six months ended June 30, 2025 Aerospace - Commercial $ 1,097 $ 572 $ 407 $ — $ 2,076 Aerospace - Defense 425 86 174 — 685 Commercial Transportation — 109 — 528 637 Gas Turbines 437 — — — 437 Other 53 76 31 — 160 Total end-market revenue $ 2,012 $ 843 $ 612 $ 528 $ 3,995 The Company derived 68% and 69% of its revenue from the aerospace (commercial and defense) markets for the six months ended June 30, 2026 and 2025, respectively. GE Aerospace and RTX Corporation represented approximately 14% and 10%, respectively, of the Company’s third-party sales in the six months ended June 30, 2026. RTX Corporation and GE Aerospace represented approximately 11% and 10%, respectively, of the Company’s third-party sales in the six months ended June 30, 2025. These sales were primarily from the Engine Products segment. 14 E. Restructuring and Other Credits Second quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 Layoff costs $ — $ 3 $ — $ 3 Reversals of previously recorded layoff reserves — (1) — (2) Net gains related to divestitures of assets and businesses (C) — (2) (93) (5) Total restructuring and other credits $ — $ — $ (93) $ (4) In the second quarter of 2026, the Company recorded Restructuring and other charges of less than $1. In the six months ended June 30, 2026, the Company recorded Restructuring and other credits of $93, which were primarily due to a gain on the sale of its disk forging facility in Savannah, Georgia within Engineered Structures of $93 in the first quarter of 2026. In the second quarter of 2025, the Company recorded Restructuring and other charges of less than $1, which were primarily due to a charge for layoff costs of $3, including the separation of 119 employees (79 in Fastening Systems and 40 in Forged Wheels), partially offset by a gain on the sale of assets at a previously closed facility in Forged Wheels of $2 and a reversal of $1 for layoff reserves related to a prior period. In the six months ended June 30, 2025, the Company recorded Restructuring and other credits of $4, which were primarily due to a gain on the sale of assets at a small U.K. manufacturing facility in Engineered Structures of $3, a gain on the sale of assets at a previously closed facility in Forged Wheels of $2, and a reversal of $2 for layoff reserves related to a prior period, partially offset by a charge for layoff costs of $3. Layoff costs Other exit costs Total Reserve balances at December 31, 2025 $ 1 $ — $ 1 Restructuring credits — (93) (93) Other(1) — 93 93 Reserve balances at June 30, 2026 $ 1 $ — $ 1 (1)In the six months ended June 30, 2026, other for other exit costs were primarily due to a gain on the sale of the disk forging facility in Savannah, Georgia within Engineered Structures of $93. The remaining reserves as of June 30, 2026 are expected to be paid in cash in 2026 and 2027. 15 F. Retirement and Other Postretirement Benefits The components of net periodic cost (benefit) were as follows: Second quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 Pension benefits Service cost $ 1 $ — $ 1 $ 1 Interest cost 15 19 31 38 Expected return on plan assets (13) (16) (27) (33) Recognized net actuarial loss 9 8 18 15 Net periodic cost(1) $ 12 $ 11 $ 23 $ 21 Other postretirement benefits Service cost $ — $ — $ — $ — Interest cost — 1 1 2 Recognized net actuarial gain (2) (2) (4) (4) Amortization of prior service benefit (2) (3) (4) (5) Net periodic benefit(1) $ (4) $ (4) $ (7) $ (7) (1)Service cost was included within Cost of goods sold; all other cost components were recorded in Other expense, net in the Statement of Consolidated Operations. For the second quarter and six months ended June 30, 2026, Howmet’s combined pension contributions and other postretirement benefit payments were approximately $24 and $27, respectively. For the second quarter and six months ended June 30, 2025, Howmet’s combined pension contributions and other postretirement benefit payments were approximately $18 and $19, respectively. G. Other Expense, Net Second quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 Non-service costs - pension and other postretirement benefits (F) $ 7 $ 7 $ 15 $ 13 Interest income (7) (4) (17) (8) Foreign currency losses (gains), net 1 (3) 2 (3) Net realized and unrealized losses 4 6 8 11 Deferred compensation 7 8 6 10 Other, net (1) — (1) — Total other expense, net $ 11 $ 14 $ 13 $ 23 H. Income Taxes The Company’s year-to-date tax provision is comprised of the most recent estimated annual effective tax rate applied to year-to-date, pre-tax ordinary income. The tax impacts of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are recorded discretely in the interim period in which they occur. In addition, the tax provision is adjusted for the interim period impact of non-benefited, pre-tax losses. The estimated annual effective tax rate, before discrete items, applied to ordinary income was 20.9% in the second quarter and six months ended June 30, 2026, and 20.8% in the second quarter and six months ended June 30, 2025. 16 The 2026 rate was lower than the U.S. federal statutory rate of 21% primarily due to a U.S. deduction on Foreign-Derived Deduction Eligible Income (“FDDEI”) formerly known as Foreign-Derived Intangible Income (“FDII”), and a net benefit related to U.S. federal and state research and development (“R&D”) credits, partially offset by incremental state income tax, nondeductible expenses, and foreign earnings subject to tax in jurisdictions with tax rates higher than the U.S. federal statutory rate of 21%. The 2025 rate was lower than the U.S. federal statutory rate of 21% primarily due to a U.S. deduction on FDII, a net benefit related to U.S. federal and state R&D credits, and a U.S. tax benefit recognized for foreign tax credits, partially offset by incremental state income tax, additional U.S. tax on Global Intangible Low-Taxed Income (“GILTI”) and other foreign earnings, nondeductible expenses, and foreign earnings subject to tax in jurisdictions with tax rates higher than the U.S. federal statutory rate of 21%. The 2026 rate is consistent with the 2025 rate. For the second quarter of 2026 and 2025, the tax rate including discrete items was 17.7% and 13.2%, respectively. In the second quarter of 2026, the Company recorded a discrete net tax benefit of $20 attributable to a benefit to release a valuation allowance related to U.S. foreign tax credits of $22, a benefit to release a valuation allowance related to U.S. state tax losses of $10, a benefit to release a tax reserve in Germany of $3, and an excess tax benefit for stock compensation of $1, reduced by a charge to establish an international withholding tax reserve of $16. In the second quarter of 2025, the Company recorded a discrete net tax benefit of $35 attributable to benefits related to U.S. tax accounting method changes for the deduction of certain prior period transaction and other costs of $17, an excess benefit for stock compensation of $13, and a net benefit related to U.S. federal and state R&D credits claimed for prior years of $5. For both the six months ended June 30, 2026 and June 30, 2025, the tax rate including discrete items was 17.9%. In the six months ended June 30, 2026, the Company recorded a discrete net tax benefit of $41 attributable to a benefit to release a valuation allowance related to U.S. foreign tax credits of $22, an excess tax benefit for stock compensation of $22, a benefit to release a valuation allowance related to U.S. state tax losses of $10, and a benefit to release a tax reserve in Germany of $3, reduced by a charge to establish an international withholding tax reserve of $16. In the six months ended June 30, 2025, the Company recorded a discrete net tax benefit of $26 attributable to benefits related to U.S. tax accounting method changes for the deduction of certain prior period transaction and other costs of $17, an excess benefit for stock compensation of $14, and a net benefit related to U.S. federal and state R&D credits claimed for prior years of $5, reduced by a net charge related to the expiration of a tax holiday in China of $6, a charge for a tax reserve established in Germany of $2, and a net charge for other small items of $2. The tax provision was comprised of the following: Second quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 Pre-tax income at estimated annual effective income tax rate before discrete items $ 135 $ 97 $ 284 $ 190 Other discrete items (20) (35) (41) (26) Provision for income taxes $ 115 $ 62 $ 243 $ 164 17 I. Earnings Per Share and Common Stock 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. 18 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. J. Accumulated Other Comprehensive Loss The following table details the activity of the three components that comprise Accumulated other comprehensive loss: Second quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 Pension and other postretirement benefits (F) Balance at beginning of period $ (588) $ (669) $ (592) $ (672) Other comprehensive income: Unrecognized net actuarial gain and prior service benefit — 1 — — Tax benefit — — — 1 Total Other comprehensive income before reclassifications, net of tax — 1 — 1 Amortization of net actuarial loss and prior service benefit(1) 5 3 10 6 Tax expense(2) (1) (1) (2) (1) Total amount reclassified from Accumulated other comprehensive loss, net of tax(3) 4 2 8 5 Total Other comprehensive income 4 3 8 6 Balance at end of period $ (584) $ (666) $ (584) $ (666) Foreign currency translation Balance at beginning of period $ (1,084) $ (1,162) $ (1,052) $ (1,207) Other comprehensive (loss) income(4) (10) 117 (42) 162 Balance at end of period $ (1,094) $ (1,045) $ (1,094) $ (1,045) Cash flow hedges Balance at beginning of period $ (19) $ 1 $ (29) $ 1 Other comprehensive (loss) income: Net change from periodic revaluations(5) 1 (49) 14 (50) Tax benefit (expense) — 11 (3) 11 Total Other comprehensive income (loss) before reclassifications, net of tax 1 (38) 11 (39) Net amount reclassified to earnings(6) (1) (2) (1) — Tax benefit(2) — 1 — — Total amount reclassified from Accumulated other comprehensive loss, net of tax(3) (1) (1) (1) — Total Other comprehensive (loss) income — (39) 10 (39) Balance at end of period $ (19) $ (38) $ (19) $ (38) Accumulated other comprehensive loss $ (1,697) $ (1,749) $ (1,697) $ (1,749) (1)These amounts were recorded in Other expense, net (See Note G) in the Statement of Consolidated Operations. (2)These amounts were included in Provision for income taxes (See Note H) in the Statement of Consolidated Operations. (3)A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. (4)In all periods presented, no amounts were reclassified to earnings. 19 (5)Includes the change in the cross-currency swaps related to the 6.750% Bonds due 2028 and the 4.850% Notes due 2031 (See Note O). In all periods presented, no amounts related to the changes were reclassified to earnings. The cross-currency swaps were recorded in Other noncurrent assets and Other noncurrent liabilities and deferred credits respectively, in the Consolidated Balance Sheet. (6)These amounts were recorded in Cost of goods sold in the Statement of Consolidated Operations. K. Receivables Sale of Receivables Programs The Company maintains an accounts receivables securitization arrangement through a wholly-owned special purpose entity (“SPE”). The net cash funding from the sale of accounts receivable was neither a use of cash nor a source of cash for the second quarter or six months ended June 30, 2026 or June 30, 2025. The accounts receivables securitization arrangement is one in which the Company, through an SPE, has a receivables purchase agreement (the “Receivables Purchase Agreement”) pursuant to which the SPE may sell certain receivables to financial institutions. On October 9, 2025, the Company extended the Receivables Purchase Agreement to the earlier of October 8, 2027 or a termination event. The Receivables Purchase Agreement contains customary representations and warranties, as well as affirmative and negative covenants. Pursuant to the Receivables Purchase Agreement, the Company does not maintain effective control over the transferred receivables, and therefore accounts for these transfers as sales of receivables. The Receivables Purchase Agreement also contains a provision that allows the Company to increase the facility limit to $325. The facility limit under the Receivables Purchase Agreement was $250 as of both June 30, 2026 and December 31, 2025, of which $250 was drawn as of both June 30, 2026 and December 31, 2025. As collateral against the sold receivables, the SPE maintains a certain level of unsold receivables, which were $296 and $217 as of June 30, 2026 and December 31, 2025, respectively. The Company sold $294 and $651 during the second quarter and six months ended June 30, 2026, respectively, and $359 and $829 during the second quarter and six months ended June 30, 2025, respectively, of its receivables without recourse and received cash funding under this program, resulting in derecognition of the receivables from the Company’s Consolidated Balance Sheet. Costs associated with the sales of receivables are reflected in the Company’s Statement of Consolidated Operations in Other expense, net for the periods in which the sales occur. Cash receipts from sold receivables under the Receivables Purchase Agreement are presented in changes in receivables within operating activities in the Statement of Consolidated Cash Flows. Other Customer Receivable Sales In the second quarter and six months ended June 30, 2026, the Company sold certain customers’ receivables without recourse of $348 and $671, respectively, in exchange for cash. In the second quarter and six months ended June 30, 2025, the Company sold certain customers’ receivables without recourse of $223 and $406, respectively, in exchange for cash. The Company has no continuing involvement in the aforementioned amounts sold or outstanding, resulting in the derecognition of the receivables from the Company’s Consolidated Balance Sheet. The net proceeds are presented in changes in receivables within operating activities in the Statement of Consolidated Cash Flows and the costs associated with the sales of receivables are reflected in the Company’s Statement of Consolidated Operations in Other expense, net for the periods in which the sales occur. L. Inventories June 30, 2026 December 31, 2025 Finished goods $ 497 $ 462 Work-in-process 1,070 885 Purchased raw materials 531 424 Operating supplies 85 78 Total inventories $ 2,183 $ 1,849 As of June 30, 2026 and December 31, 2025, the portion of inventories valued on a last-in, first-out (“LIFO”) basis was $707 and $642, respectively. If valued on an average-cost basis, total inventories would have been $376 and $333 higher as of June 30, 2026 and December 31, 2025, respectively. 20 M. Properties, Plants, and Equipment, net June 30, 2026 December 31, 2025 Land and land rights $ 113 $ 85 Structures 1,179 1,134 Machinery and equipment 4,496 4,275 5,788 5,494 Less: accumulated depreciation and amortization 3,330 3,236 2,458 2,258 Construction work-in-progress 359 335 Properties, plants, and equipment, net $ 2,817 $ 2,593 The Company had unpaid capital expenditures of $55, $101, and $85 as of June 30, 2026, December 31, 2025, and June 30, 2025, respectively, which results in cash outflows within investing activities in the Statement of Consolidated Cash Flows in subsequent periods. N. Leases Operating lease cost, which includes short-term leases and variable lease payments and approximates cash paid, was $20 and $18 in the second quarter of 2026 and 2025, respectively, and $39 and $35 in the six months ended June 30, 2026 and June 30, 2025. Operating lease right-of-use assets and lease liabilities in the Consolidated Balance Sheet were as follows: June 30, 2026 December 31, 2025 Right-of-use assets classified in Other noncurrent assets $ 162 $ 162 Current portion of lease liabilities classified in Other current liabilities $ 46 $ 42 Long-term portion of lease liabilities classified in Other noncurrent liabilities and deferred credits 117 121 Total lease liabilities $ 163 $ 163 O. Debt June 30, 2026 December 31, 2025 JPY Term Loan Facility, due 2026(1) $ — $ 191 6.750% Bonds, due 2028(2) 300 300 3.750% Notes, due 2028 400 — 3.000% Notes, due 2029 700 700 3.900% Notes, due 2029 300 — 4.850% Notes, due 2031(3) 500 500 4.550% Notes, due 2032 500 500 4.750% Notes, due 2036 500 — 5.950% Notes, due 2037 625 625 4.750% Iowa Finance Authority Loan, due 2042 250 250 Short-term borrowings 450 — Other, net(4) (24) (16) 4,501 3,050 Less: amounts due within one year 451 191 Total long-term debt $ 4,050 $ 2,859 (1)On May 22, 2026, the Company completed the early prepayment of the remaining amount outstanding under the JPY Term Loan Facility. The Company had entered into an interest rate swap to exchange the floating interest rate of the JPY Term Loan Facility to a fixed interest rate of 1.794% as of December 31, 2025, based on the Company’s long-term debt ratings. This swap was settled upon the prepayment of the JPY Term Loan Facility with an impact to the Consolidated Financial Statements of less than $1. 21 (2)The Company entered into a cross-currency swap to synthetically convert the 6.750% Bonds due 2028 (the “2028 Bonds”) into a Japanese Yen liability of approximately ¥47,760 million with a fixed annual interest rate of 3.880%. (3)The Company entered into a cross-currency swap to synthetically convert the 4.850% Notes due 2031 (the “2031 Notes”) into a Euro liability of approximately €458 million with a fixed annual interest rate of 3.720%. (4)Includes unamortized debt discounts and unamortized debt issuance costs related to outstanding notes and bonds listed in the table above and various financing arrangements related to subsidiaries. Debt Term Loan Facility. The Company maintained a Japanese yen-denominated, senior unsecured term loan facility (the “JPY Term Loan Facility”). As of June 30, 2026 and December 31, 2025, the Company was in compliance with all applicable covenants under the JPY Term Loan Facility. On May 22, 2026, the Company completed the early prepayment of the remaining outstanding principal amount under its JPY Term Loan Facility of ¥29,702 million (approximately $186) with cash on hand. There were no amounts outstanding under the JPY Term Loan Facility as of June 30, 2026 and ¥29,702 million ($191) outstanding as of December 31, 2025. Public Debt. On March 3, 2026 the Company completed the offerings of aggregate principal amounts of $400 of 3.750% Notes due 2028 (the “2028 Notes”), $300 of 3.900% Notes due 2029 (the “2029 Notes”) and $500 of 4.750% Notes due 2036 (the “2036 Notes”). The Company utilized the net proceeds of $1,193 from these debt issuances as part of the financing for the CAM Acquisition (see Note C). On May 22, 2026, the Company entered into a cross-currency swap to synthetically convert the outstanding $300 aggregate principal amount of its 2028 Bonds into a Japanese Yen liability of approximately ¥47,760 million. The fixed interest rate on the Japanese Yen liability is 3.880% per annum. Amounts payable to holders of these bonds remain unchanged. Short-term Borrowings Commercial Paper. The Company maintains a $1,000 commercial paper program, under which $450 was outstanding with a weighted average interest rate of 4.018% as of June 30, 2026, and no amounts were outstanding as of December 31, 2025. The Company had no commercial paper borrowings with original maturities greater than 90 days in 2026 or 2025. Amounts outstanding under the commercial paper program are supported by the unused commitments under the Company’s $600 364-Day Revolving Credit Facility and $1,000 5-Year Revolving Credit Facility. Credit Agreements Credit Facilities. On February 9, 2026, the Company entered into the Third Amended and Restated Five-Year Revolving Credit Agreement (as so amended and restated, the “5-Year Revolving Credit Agreement”) and the 364-Day Revolving Credit Agreement (the “364-Day Revolving Credit Agreement”). The 364-Day Revolving Credit Agreement and the 5-Year Revolving Credit Agreement are jointly referred to as the “Revolving Credit Agreements.” The 5-Year Revolving Credit Agreement provides a $1,000 senior unsecured revolving credit facility (the “5-Year Revolving Credit Facility”) that matures on February 7, 2031, unless extended or earlier terminated in accordance with the provisions of the 5-Year Revolving Credit Agreement. The Company may make two one-year extension requests during the term of the 5-Year Revolving Credit Facility, with any extension being subject to the lender consent requirements set forth in the 5-Year Revolving Credit Agreement. Subject to the terms and conditions of the 5-Year Revolving Credit Agreement, the Company may from time to time request increases in commitments under the 5-Year Revolving Credit Facility, not to exceed $500 in aggregate principal amount, and may also request the issuance of letters of credit, subject to a letter of credit sublimit of $500 of the 5-Year Revolving Credit Facility. Under the provisions of the 5-Year Revolving Credit Agreement, based on Howmet’s current long-term debt ratings, Howmet pays an annual fee of 0.090% of the total commitment to maintain the 5-Year Revolving Credit Facility. The 364-Day Revolving Credit Agreement provides a $600 senior unsecured revolving credit facility (the “364-Day Revolving Credit Facility” and, together with the 5-Year Revolving Credit Facility, the “Revolving Credit Facilities”) that matures on February 8, 2027, unless extended or earlier terminated in accordance with the provisions of the 364-Day Revolving Credit Agreement. Under the provisions of the 364-Day Revolving Credit Agreement, based on Howmet’s current long-term debt ratings, Howmet pays an annual fee of 0.070% of the total commitment to maintain the 364-Day Revolving Credit Facility. 22 The Revolving Credit Facilities are unsecured and amounts payable under them will rank pari passu with all other unsecured, unsubordinated indebtedness of the Company. U.S. dollar denominated loans under the Revolving Credit Facilities will bear interest at a base rate, or a rate equal to the Term Secured Overnight Financing Rate (“SOFR”) plus adjustment and Euro-denominated loans will bear interest at the Euro inter-bank offered rate (“EURIBOR”), plus in each case, an applicable margin based on the credit ratings of the Company’s outstanding senior unsecured long-term debt. Based on the Company’s current long-term debt ratings, which are subject to change, there would be no applicable margin on base rate loans for either of the Revolving Credit Facilities. The applicable margin on Term SOFR and EURIBOR loans would be 0.910% per annum for the 5-Year Revolving Credit Facility and 0.930% per annum for the 364-Day Revolving Credit Facility. Loans under the Revolving Credit Facilities may be prepaid without premium or penalty, subject to customary breakage costs. The obligation of the Company to pay amounts outstanding under the Revolving Credit Facilities may be accelerated upon the occurrence of an “Event of Default” as defined in the applicable Revolving Credit Agreement. Such Events of Default include, among others, (a) non-payment of obligations; (b) breach of any representation or warranty in any material respect; (c) non-performance of covenants and obligations; (d) with respect to other indebtedness in a principal amount in excess of $100, a default thereunder that causes such indebtedness to become due prior to its stated maturity or a default in the payment at maturity of any principal of such indebtedness; (e) the bankruptcy or insolvency of Howmet; and (f) a change in control of the Company. The Revolving Credit Agreements contain covenants, including, among others, (a) limitations on the Company’s ability to incur liens securing indebtedness for borrowed money; (b) limitations on the Company’s ability to consummate a consolidation, merger or sale of all or substantially all of its assets; (c) limitations on the Company’s ability to change the nature of its business; and (d) a limitation requiring the ratio of Consolidated Net Debt to Consolidated EBITDA (each as defined in the Revolving Credit Agreements, as applicable) as of the end of each fiscal quarter for the period of the four fiscal quarters most recently ended, to be less than or equal to 3.75 to 1.00, which may be increased to 4.25 to 1.00, at Howmet’s option, upon the occurrence of a material acquisition for the four consecutive fiscal quarters following the consummation thereof. As of June 30, 2026 and December 31, 2025, the Company was in compliance with all covenants under the Revolving Credit Agreements. There were no amounts outstanding as of June 30, 2026 or December 31, 2025, and no amounts were borrowed during 2026 or 2025 under the Revolving Credit Facilities. P. Fair Value of Financial Instruments The carrying values of Cash and cash equivalents, restricted cash, derivatives, noncurrent receivables, Long-term debt due within one year, and short-term borrowings included in the Consolidated Balance Sheet approximate their fair value. The aforementioned derivatives were included in Prepaid expenses and other current assets, Other noncurrent assets, Other current liabilities, and Other noncurrent liabilities and deferred credits in the Consolidated Balance Sheet, as applicable. The Company holds available-for-sale, exchange-traded fixed income securities, which were included in Other noncurrent assets in the Consolidated Balance Sheet. The Company holds a held-to-maturity, real estate debt investment purchased from the U.K. pension plan’s trust in 2025, of which $2 was redeemed during the first quarter of 2026. These activities are presented as Investing Activities in the Statement of Consolidated Cash Flows, and the remaining investment is included in Prepaid expenses and other current assets and Other noncurrent assets, in the Consolidated Balance Sheet. The fair value of Long-term debt, less long-term debt due within one year, was based on quoted market prices for public debt with similar terms, interest rates and maturities available to Howmet. June 30, 2026 December 31, 2025 Carrying value Fair value Carrying value Fair value Available-for-sale securities Level 1 $ 18 $ 18 $ 18 $ 18 Held-to-maturity investments Level 2 $ 3 $ 3 $ 5 $ 5 Long-term debt, less long-term debt due within one year Level 2 $ 4,050 $ 4,034 $ 2,859 $ 2,919 Restricted cash, which is included in Prepaid expenses and other current assets in the Consolidated Balance Sheet, was $1 as of both June 30, 2026 and December 31, 2025. 23 Q. Contingencies, Commitments, and Other Liabilities Contingencies The following information supplements and, as applicable, updates the discussion of the contingencies and commitments in Note U to the Consolidated Financial Statements in our Form 10-K, and should be read in conjunction with the complete descriptions provided in the Form 10-K. Environmental Matters. Howmet participates in environmental assessments and/or cleanups at more than 30 locations. These include owned or operating facilities and adjoining properties, previously owned or operated facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”)) sites. A liability is recorded for environmental remediation when a cleanup program becomes probable and the costs can be reasonably estimated. As assessments and cleanups proceed, the liability is adjusted based on progress made in determining the extent of remedial actions and related costs. The liability can change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, and technological changes, among others. The Company’s remediation reserve balance was $16 as of both June 30, 2026 and December 31, 2025 and was recorded in Other noncurrent liabilities and deferred credits in the Consolidated Balance Sheet (of which $7 as of both June 30, 2026 and December 31, 2025 was classified as a current liability), and reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. Payments related to remediation expenses applied against the reserve were $1 in both the second quarter and six months ended June 30, 2026, and included expenditures currently mandated, as well as those not required by any regulatory authority or third party. Included in annual operating expenses are the recurring costs of managing hazardous substances and environmental programs. These costs are estimated to be less than 1% of Cost of goods sold. Tax. In December 2013 and 2014, the Company received audit assessment notices from the French Tax Authority (“FTA”) for the 2010 through 2012 tax years. In 2016, the Company appealed to the Committee of the Abuse of Tax Law, where it received a favorable nonbinding decision. The FTA disagreed with the Committee of the Abuse of Tax Law’s opinion, and the Company appealed to the Montreuil Administrative Court, where in 2020 the Company prevailed on the merits. The FTA appealed this decision to the Paris Administrative Court of Appeal in 2021. On March 31, 2023, the Company received an adverse decision from the Paris Administrative Court of Appeal. The Company appealed this decision to the French Administrative Supreme Court. The assessment amount was $17 (€16 million), including $10 (€9 million) of tax and interest up through 2017 and $7 (€7 million) of penalties. The Company estimated additional interest to be $2 (€2 million). On July 23, 2024, the Company received the French Administrative Supreme Court’s decision. That decision upheld the assessment of $10 (€9 million) of tax and interest, while cancelling the penalties of $7 (€7 million) and remanding the penalty assessment issue to the Paris Administrative Court of Appeal for reexamination. On April 16, 2026, the Paris Administrative Court of Appeal reduced the penalties assessed to $4 (€3 million). In 2023, the Company recorded an income tax reserve in Provision for income taxes in the Statement of Consolidated Operations of $21 (€19 million), which includes tax, estimated interest and penalties, for the 2010 through 2012 tax years, as well as the remaining tax years open for reassessment (2020-2023). In accordance with FTA dispute resolution practices, the Company paid the assessment amount including tax, interest, and penalties, to the FTA in December 2023. The Company expects to pay the additional interest related to the assessment in 2026. The Company also paid the estimated tax related to the 2020-2023 tax years in 2023. As of the third quarter of 2024, the Company no longer recorded an uncertain tax position related to the tax and interest assessed. In October 2024, the Company received a refund of the penalties that were remanded. Based on the April 2026 decision, the Company expects to pay the reduced penalties in 2026. Legal Proceedings. Indemnified Matters. The Separation and Distribution Agreement, dated October 31, 2016, that the Company entered into with Alcoa Corporation in connection with its separation from Alcoa Corporation, and the Separation and Distribution Agreement, dated March 31, 2020, that the Company entered into with Arconic Corporation in connection with its separation from Arconic Corporation, provide for cross-indemnities for claims subject to indemnification between the Company and Alcoa Corporation and between the Company and Arconic Corporation, respectively. To date, Alcoa Corporation and Arconic Corporation have fulfilled their respective indemnification obligations to the Company, and claims subject to indemnification by Alcoa Corporation or Arconic Corporation have not impacted the Company financially. Among other claims that are covered by these indemnities, Arconic Corporation indemnifies the Company (previously named Arconic Inc. and, prior to that, Alcoa Inc.) for all potential liabilities associated with the fire that occurred at the Grenfell Tower in London, U.K. on June 14, 2017, including the following legal proceedings, as updated from the Form 10-K: 24 United Kingdom Litigation. All personal injury claims on behalf of survivors and estates of decedents have been settled pursuant to terms of confidential settlement agreements and are discontinued and closed. On June 21, 2024, the Company was joined as a party to proceedings initiated by the Royal Borough of Kensington and Chelsea (RBKC) and Kensington and Chelsea Tenant Management Organisation (KCTMO) against AAP SAS and Whirlpool. On February 14, 2025, RBKC and KCTMO served their Particulars of Claim and Schedule of Loss on the defendants, which they updated on February 27, 2026. On July 18, 2025, the Company and AAP SAS filed their defense and counterclaim against RBKC and KCTMO, and contribution claims against various co-defendants and other third parties, as updated on March 13, 2026. The next case management conference is scheduled for December 13, 2027. Trial is anticipated to occur between October 2028 and July 2029. Raul v. Albaugh, et al. (United States District Court for the District of Delaware). On June 22, 2018, a derivative complaint was filed nominally on behalf of Arconic Inc. by a purported Arconic Inc. stockholder against the then directors and certain officers of Arconic Inc., naming Arconic Inc. as a nominal defendant. The complaint alleged violations of federal securities laws relating to the Grenfell Fire, as well as claims under Delaware state law. On February 10, 2026, the court held a final settlement approval hearing, and the parties’ Stipulation of Settlement was approved. The Stipulation of Settlement had no material impact on the Company’s results of operations or cash flows. With respect to the regulatory investigations in the U.K. described in the Form 10-K, there are no updates. Other. In addition to the matters discussed above, various other lawsuits, claims, and proceedings have been or may be instituted or asserted against the Company, including those pertaining to environmental, product liability, safety and health, employment, tax and antitrust matters. While the amounts claimed in these other matters may be substantial, the ultimate liability cannot currently be determined because of the considerable uncertainties that exist. Therefore, it is possible that the Company’s liquidity or results of operations in a period could be materially affected by one or more of these other matters. However, based on facts currently available, management believes that the disposition of these other matters that are pending or asserted will not have a material adverse effect, individually or in the aggregate, on the results of operations, financial position or cash flows of the Company. Commitments Letters of Credit. The Company has outstanding letters of credit primarily related to workers’ compensation, environmental obligations, tax matters, and insurance obligations. The total amount committed under these letters of credit, which automatically renew or expire at various dates, primarily in 2026 and 2027, was $76 as of June 30, 2026. Pursuant to the Separation and Distribution Agreements between the Company and Arconic Corporation and between the Company and Alcoa Corporation, the Company is required to retain letters of credit of $43, which are included in the $76 in the above paragraph, that had previously been provided related to the Company, Arconic Corporation, and Alcoa Corporation workers’ compensation claims that occurred prior to the respective separation transactions of April 1, 2020 and November 1, 2016. Arconic Corporation and Alcoa Corporation workers’ compensation and letters of credit fees paid by the Company are proportionally billed to, and are reimbursed by, Arconic Corporation and Alcoa Corporation, respectively. Also, the Company was required to provide letters of credit for certain Arconic Corporation environmental obligations and, as a result, the Company has $8 of outstanding letters of credit relating to such liabilities, which are also included in the $76 in the above paragraph. Arconic Corporation is being billed for these letter of credit fees paid by the Company and will reimburse the Company for any payments made under these letters of credit. Surety Bonds. The Company has outstanding surety bonds primarily related to customs duties, workers’ compensation, pension, environmental-related matters, and contract performance. The total amount committed under these annual surety bonds, which automatically renew or expire at various dates, primarily in 2026 and 2027, was $43 as of June 30, 2026. Pursuant to the Separation and Distribution Agreements between the Company and Arconic Corporation and between the Company and Alcoa Corporation, the Company is required to provide surety bonds of $19, which are included in the $43 in the above paragraph, that had previously been provided related to the Company, Arconic Corporation, and Alcoa Corporation workers’ compensation claims that occurred prior to the respective separation transactions of April 1, 2020 and November 1, 2016. Arconic Corporation and Alcoa Corporation workers’ compensation claims and surety bond fees paid by the Company are proportionately billed to, and are reimbursed by, Arconic Corporation and Alcoa Corporation, respectively. 25 Guarantees. Pursuant to the Separation and Distribution Agreement between the Company and Alcoa Corporation, Howmet was required to provide certain guarantees for Alcoa Corporation, which were included in Other noncurrent liabilities and deferred credits in the Consolidated Balance Sheet. The remaining guarantee which had a fair value of $5 as of both June 30, 2026 and December 31, 2025, relates to a long-term energy supply agreement that expires in 2047 at an Alcoa Corporation facility, for which the Company is secondarily liable in the event of a payment default by Alcoa Corporation. If the Company incurs any liability under this guarantee, Arconic Corporation is obligated to indemnify the Company for 50% of such liability. The Company currently views the risk of an Alcoa Corporation payment default on its obligations under the contract to be remote. The Company is required to provide a guarantee up to an estimated present value amount of approximately $1,141 as of both June 30, 2026 and December 31, 2025 in the event of an Alcoa Corporation default. In the fourth quarter of 2025, a surety bond with a limit of $80 relating to this guarantee was obtained by Alcoa Corporation to protect Howmet’s obligation. This surety bond will be renewed on an annual basis by Alcoa Corporation. As of June 30, 2026, Howmet had other outstanding bank guarantees related to customs duties, rental, plant expansion, and environmental obligations. The total amount committed under these guarantees, which expire at various dates between 2026 and 2028, was $4 as of June 30, 2026. Other Liabilities Supplier Financing Arrangements. We offer voluntary supplier finance programs to suppliers who may elect to sell their receivables to third parties at the sole discretion of both the suppliers and the third parties. The program is at no cost to the Company and provides additional liquidity to our suppliers, if they desire, at their cost. Under these programs, the Company pays the third-party bank, rather than the supplier, the stated amount of the confirmed invoices on the original maturity date of the invoices. The Company or the third-party bank may terminate a program upon at least 30 days’ notice. Supplier invoices under the program require payment in full no more than approximately 120 days of the invoice date. As of June 30, 2026 and December 31, 2025, supplier invoices that are subject to future payment under these programs were $377 and $266, respectively, and are included in Accounts payable, trade in the Consolidated Balance Sheet. R. Subsequent Events Management evaluated all activity of Howmet and concluded that no subsequent events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements, except as noted below: See Note I regarding share repurchases made in July 2026. 26