HWM · 8-K · 20260806PR091610

Operating Margin Drivers

Howmet Aerospace Inc. · 2026-08-06 · Importance 64 · Surprise 56 · Contradicted

Second-quarter GAAP operating income increased 36% year over year to $711 million, and operating margin expanded 250 basis points to 27.9%. Adjusted EBITDA increased 39% to $817 million, with adjusted EBITDA margin rising 340 basis points to 32.1%. Engine Products adjusted EBITDA increased 51% to $517 million and margin expanded 470 basis points to 37.7%, while Fastening Systems EBITDA rose 40% to $177 million and margin increased 90 basis points to 30.1%. Forged Wheels margin increased 30 basis points to 27.8% through cost reductions and lower net headcount, while Engineered Structures margin expanded 170 basis points to 23.8% because of the exit of lower-margin business.

Key facts

• Engine Products segment adjusted EBITDA second quarter 2026: $517 million, up 51% year over year source
• Second quarter 2026 GAAP operating income: $711 million, up 36% year over year source
• Second quarter 2026 Adjusted EBITDA: $817 million, up 39% year over year source
• Fastening Systems segment adjusted EBITDA second quarter 2026: $177 million, up 40% year over year source
• Second quarter 2026 operating income margin: 27.9%, up 250 basis points year over year source
• Second quarter 2026 Adjusted EBITDA margin: 32.1%, up approximately 340 basis points year over year source

Impact estimates