HWM · 8-K · 20260806PR091610

Income Tax Rate Changes

Howmet Aerospace Inc. · 2026-08-06 · Importance 40 · Surprise 42

Second-quarter income before taxes was $649 million and the reported income-tax provision was $115 million, producing a 17.7% effective tax rate. The adjusted operational tax rate was 20.4% for the quarter versus a 17.9% rate after excluding special items. Second-quarter tax special items included $22 million from releasing a U.S. foreign-tax-credit valuation allowance, $10 million from releasing a U.S. state-tax-loss valuation allowance, and a $16 million international withholding-tax reserve charge. For the first six months, the reported tax rate was 20.5%, and tax special items reduced the provision by a net $22 million.

Key facts

• Quarter ended 2Q26 discrete tax items included 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, an excess benefit for stock compensation of $1, and a charge to establish an international withholding tax reserve of $16 source
• Provision for income taxes in second quarter 2026: $115 million resulting in net income $534 million source