HWM · 10-Q · 2026Q2 · Full report
Liquidity and Debt Position
Howmet Aerospace Inc. · 2026-08-06 · Importance 78 · Surprise 74 · In source text
Howmet issued $1,200 million of notes in March 2026 with interest rates ranging from 3.750% to 4.750% and had $450 million of commercial paper outstanding at June 30, 2026. Net interest expense increased 34% to $51 million in the second quarter and 22% to $94 million for the six months, with current-year debt actions expected to add approximately $38 million to annual interest expense. The company had no borrowings under its $1,000 million five-year or $600 million 364-day revolving facilities. Howmet’s debt remained investment grade, with Fitch at A-, Moody’s at Baa1 with a positive outlook, and S&P at BBB+ with a stable outlook.
Key facts
- Cash provided from financing activities in six months ended June 30, 2026: $685 compared to cash used of $506 in six months ended June 30, 2025; increase of $1,191, or 235%, primarily due to additions to debt of $1,200 and a net increase in commercial paper of $450, partially offset by increased common stock repurchases of $300 and increased payments on debt of $109. source
- Company maintains a Five-Year Revolving Credit Facility providing a $1,000 senior unsecured revolving credit facility and a 364-Day Revolving Credit Facility providing a $600 senior unsecured revolving credit facility; no amounts outstanding as of June 30, 2026 or December 31, 2025. source
- Company may refinance the $300 million aggregate principal amount of its 6.750% Bonds due January 2028 and believes projected cash on hand and/or availability under the Revolving Credit Facilities will enable repayment if refinancing does not occur. source
- On May 7, 2026 Moody's updated Howmet's rating outlook from stable to positive citing strong demand for aerospace components, potential for free cash flow growth and sustained, low financial leverage. source
- On February 13, 2026 Fitch upgraded Howmet's long-term debt rating from BBB+ to A- citing conservative capital allocation and strong deleveraging momentum. source
- The Company had $450 of commercial paper outstanding as of June 30, 2026, and no amounts outstanding under the commercial paper program as of December 31, 2025. source
- Howmet's commercial paper program maximum aggregate face amount: $1,000. source
- On September 8, 2025 S&P upgraded Howmet's long-term debt rating from BBB to BBB+, and affirmed short-term A-2 and stable outlook. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | -3.4% | Cash provided from financing activities in six months ended June 30, 2026: $685 compared to cash used of $506 in six months ended June 30,… |
| cash | negative | realized | -2.3% | Cash provided from financing activities in six months ended June 30, 2026: $685 compared to cash used of $506 in six months ended June 30,… |
| liability | positive | realized | +0.8% | Cash provided from financing activities in six months ended June 30, 2026: $685 compared to cash used of $506 in six months ended June 30,… |
| liability | negative | contingent | -0.2% | Company may refinance the $300 million aggregate principal amount of its 6.750% Bonds due January 2028 and believes projected cash on hand… |