HWM · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

Howmet Aerospace Inc. · 2026-08-06 · Importance 29 · Surprise 22

The estimated annual effective tax rate before discrete items was 20.9% in the second quarter of 2026 versus 20.8% in the second quarter of 2025. The tax rate including discrete items increased to 17.7% from 13.2% in the second quarter because the discrete net tax benefit declined to $20 million from $35 million. For the six months, the tax rate including discrete items remained 17.9% in both years. The six-month discrete net tax benefit increased to $41 million in 2026 from $26 million in 2025.

Key facts

• Estimated annual effective tax rate before discrete items in Q2 2026: 20.9% compared to 20.8% in Q2 2025. source
• Tax rate including discrete items for the six months ended June 30, 2026 and June 30, 2025: 17.9%; discrete net tax benefit for six months ended June 30, 2026: $41 compared to $26 in the six months ended June 30, 2025. source
• Tax rate including discrete items in Q2 2026: 17.7% compared to 13.2% in Q2 2025; discrete net tax benefit recorded in Q2 2026: $20 compared to $35 in Q2 2025. source