Howmet Aerospace Inc

Strong Q2 performance; margins and cash flow exceeded guidance - Revenues +24% YoY (+21% organic)—described as the strongest quarterly growth since Q1 2023; EBITDA +39% YoY with incremental flow-through of ~46%. - EBITDA margin: 32.1% (+340 bps YoY), after CAM acquisition headwind absorption starting in April. - EPS: $1.33 (+46% YoY). Free cash flow (FCF): $479M in Q2 (~just under $0.5B); $840M in first half. - Shareholder returns: $300M repurchased in Q2; $600M repurchased H1. Company also noted debt retirement of $186M in the period.

Business momentum across segments; spares mix rising (opportunity) - End markets: Commercial aerospace +28%, Defense aerospace +11%, Gas turbines +38%, Commercial transportation +12% (but wheels volume -8% YoY; +7% sequential as market recovers). - Spares growth strong: total spares +37% to ~$560M (through first half context), and spares are now ~22% of revenue (a higher mix than historically). - Segment notes: - Engine Products: revenue +$32% to $1.37B, EBITDA +$51% to $517M, EBITDA margin 37.7%. - Fastening Systems: revenue +$37% to $589M; margin 30.1%, with expected sequential decline due to CAM addition. - Forged Wheels: revenue +14%, EBITDA $88M (+16%), but margin % down sequentially due to aluminum cost pass-through.

2026 outlook raised; Q3 and full-year forecasts increased - Q3 guidance: revenue $2.575B ± $10M, EBITDA $830M ± $5M, EPS $1.35 ± $0.01. - Full-year 2026 guidance increased again: - Revenue $10.05B ± $50M - EBITDA $3.23B ± $20M - EPS $5.27 ± $0.04 - FCF $1.9B ± $50M - Company reaffirmed ~90% free cash flow conversion target and expects to return leverage toward ~1.0x net debt/EBITDA by year-end.