Howmet Aerospace Inc.

Previous wording

In the six months ended June 30, 2026, the Company derived approximately 68% of its revenue from products sold to the commercial and defense aerospace markets. The timing and level of future aircraft builds by original equipment manufacturers (“OEMs”) are subject to changes and uncertainties, including but not limited to geopolitical tensions or volatility in global energy and raw material markets, which may cause our future results to differ from prior periods due to changes in product mix in certain segments.

Current wording

In the nine months ended September 30, 2026, the Company derived approximately 68% of its revenue from products sold to the commercial and defense aerospace markets. The timing and level of future aircraft builds by original equipment manufacturers (“OEMs”) are subject to changes and uncertainties, including but not limited to geopolitical tensions or volatility in global energy and raw material markets, which may cause our future results to differ from prior periods due to changes in product mix in certain segments.

Previous wording

Sales. Sales were $2,547 in the second quarter of 2026 compared to $2,053 in the second quarter of 2025, and $4,860 in the six months ended June 30, 2026 compared to $3,995 in the six months ended June 30, 2025. The increase of $494, or 24%, in the second quarter of 2026 and the increase of $865, or 22% in the six months ended June 30, 2026, was primarily due to growth in the commercial and defense aerospace and gas turbines markets, including engine spares, favorable product pricing, cost pass through, and sales from the Consolidated Aerospace Manufacturing, LLC (“CAM”) and Brunner Manufacturing Co. Inc. (“Brunner”) acquisitions from the dates they were acquired by the Company, partially offset by lower volumes in the commercial transportation market and the disk forging facility divestiture on March 31, 2026. Product price increases are in excess of material and inflationary cost pass through to our customers.

Current wording

Sales. Sales were $2,703 in the third quarter of 2026 compared to $2,089 in the third quarter of 2025, and $7,563 in the nine months ended September 30, 2026 compared to $6,084 in the nine months ended September 30, 2025. The increase of $614, or 29%, in the third quarter of 2026 and the increase of $1,479, or 24% in the nine months ended September 30, 2026, was primarily due to growth in the commercial and defense aerospace, gas turbines, and commercial transportation markets, growth in engine spares, favorable product pricing, cost pass through, and sales from the Consolidated Aerospace Manufacturing, LLC (“CAM”) and Brunner Manufacturing Co. Inc. (“Brunner”) acquisitions from the dates they were acquired by the Company, partially offset by the disk forging facility divestiture on March 31, 2026. Product price increases are in excess of material and inflationary cost pass through to our customers.

Previous wording

Cost of goods sold (“COGS”). COGS as a percentage of Sales was 62.7% in the second quarter of 2026 compared to 66.5% in the second quarter of 2025 and 62.9% in the six months ended June 30, 2026 compared to 66.5% in the six months ended June 30, 2025. The decrease in the second quarter and six months ended June 30, 2026 was primarily due to growth in the commercial and defense aerospace and gas turbines markets, favorable product pricing, partially offset by lower volumes in the commercial transportation market, higher cost pass through, and increased net headcount, primarily in the Engine Products segment, in support of expected revenue increases. Additionally, the decrease includes the impact of the acquisitions and divestiture completed this year, including amortization expense of inventory step-up recorded in accordance with the allocation of purchase price under accounting principles generally accepted in the United States of America (“GAAP”).

Current wording

Cost of goods sold (“COGS”). COGS as a percentage of Sales was 62.9% in the third quarter of 2026 compared to 65.3% in the third quarter of 2025, and 62.9% in the nine months ended September 30, 2026 compared to 66.1% in the nine months ended September 30, 2025. The decrease in the third quarter and nine months ended September 30, 2026 was primarily due to growth in the commercial and defense aerospace, gas turbines, and commercial transportation markets and favorable product pricing, partially offset by higher cost pass through and increased net headcount, primarily in the Engine Products segment, in support of expected revenue increases. Additionally, the decrease includes the impact of the acquisitions and divestiture completed this year, including expenses from the inventory step-up recorded in accordance with the allocation of purchase price under accounting principles generally accepted in the United States of America (“GAAP”).

Previous wording

Selling, general administrative, and other expenses (“SG&A”). SG&A expenses were $148 in the second quarter of 2026 compared to $89 in the second quarter of 2025 and $259 in the six months ended June 30, 2026 compared to $174 in the six months ended June 30, 2025. The increase of $59, or 66%, in the second quarter of 2026 and the increase of $85, or 49%, in the six months ended June 30, 2026 was primarily due to higher employment costs, including incremental headcount from the acquisitions, acquisition and acquisition-related costs, and various other administrative expenses.

Current wording

Selling, general administrative, and other expenses (“SG&A”). SG&A expenses were $120 in the third quarter of 2026 compared to $100 in the third quarter of 2025 and $379 in the nine months ended September 30, 2026 compared to $274 in the nine months ended September 30, 2025. The increase of $20, or 20%, in the third quarter of 2026 and the increase of $105, or 38%, in the nine months ended September 30, 2026 was primarily due to higher employment costs, including incremental headcount from the acquisitions, acquisition and acquisition-related costs, and various other administrative expenses.

Previous wording

Provision for depreciation and amortization (“D&A”). The provision for D&A was $84 in the second quarter of 2026 compared to $69 in the second quarter of 2025 and $158 in the six months ended June 30, 2026 compared to $138 in the six months ended June 30, 2025. The increase of $15, or 22%, in the second quarter of 2026 and the increase of $20, or 14%, in the six months ended June 30, 2026 was primarily due to higher depreciation from additional capital investments in capacity expansions within the Engine Products segment, the CAM and Brunner acquisitions from the dates they were acquired by the Company, and amortization expense of inventory step-up recorded in accordance with the allocation of purchase price under GAAP.

Current wording

Provision for depreciation and amortization (“D&A”). The provision for D&A was $93 in the third quarter of 2026 compared to $72 in the third quarter of 2025 and $251 in the nine months ended September 30, 2026 compared to $210 in the nine months ended September 30, 2025. The increase of $21, or 29%, in the third quarter of 2026 and the increase of $41, or 20%, in the nine months ended September 30, 2026 was primarily due to higher depreciation from additional capital investments in capacity expansions within the Engine Products segment and, from the dates they were acquired by the Company, the additional D&A on the fair value of fixed assets and intangible assets acquired in the CAM and Brunner transactions.

Previous wording

Restructuring and other credits. Restructuring and other charges were less than $1 in the second quarter of 2026 compared to Restructuring and other charges of less than $1 in the second quarter of 2025. Restructuring and other credits were $93 in the six months ended June 30, 2026 compared to Restructuring and other credits of $4 in the six months ended June 30, 2025. Restructuring and other credits for the six months ended June 30, 2026 were primarily due to a gain on the sale of the Company’s disk forging facility in Savannah, Georgia within Engineered Structures of $93. Restructuring and other charges for the second quarter of 2025 were primarily due to a charge for layoff costs of $3, partially offset by a gain on the sale of assets at a previously closed facility in Forged Wheels of $2 and a reversal of $1 for a layoff reserve related to a prior period. Restructuring and other credits for the six months ended June 30, 2025 were primarily due to a gain on the sale of assets at a small U.K. manufacturing facility in Engineered Structures of $3, a gain on the sale of assets at a previously closed facility in Forged Wheels of $2, and a reversal of $2 for a layoff reserve related to a prior period, partially offset by a charge for layoff costs of $3.

Current wording

Restructuring and other charges (credits). Restructuring and other charges were $2 in the third quarter of 2026 compared to Restructuring and other credits of less than $1 in the third quarter of 2025. Restructuring and other credits were $91 in the nine months ended September 30, 2026 compared to Restructuring and other credits of $4 in the nine months ended September 30, 2025. Restructuring and other credits for the nine months ended September 30, 2026 were primarily due to a gain on the sale of the Company’s disk forging facility in Savannah, Georgia within Engineered Structures of $93 and a gain related to post-closing adjustments from the May 2024 sale of a small U.K. manufacturing facility in Engineered Structures of $1. Restructuring and other charges for the third quarter of 2025 were primarily due to a gain related to post-closing adjustments from the May 2024 sale of a small U.K. manufacturing facility in Engineered Structures of $1 partially offset by exit related costs, including accelerated depreciation, of $1. Restructuring and other credits for the nine months ended September 30, 2025 were primarily due to a gain on the sale of assets at a small U.K. manufacturing facility in Engineered Structures of $3, a gain on the sale of assets at a previously closed facility in Forged Wheels of $2, a reversal of $2 for a layoff reserve related to a prior period, and a gain related to post-closing adjustments from the May 2024 sale of a small U.K. manufacturing facility in Engineered Structures of $1, partially offset by a charge for layoff costs of $3 and exit related costs, including accelerated depreciation, of $1.

Previous wording

Interest expense, net. Interest expense, net was $51 in the second quarter of 2026 compared to $38 in the second quarter of 2025 and $94 in the six months ended June 30, 2026 compared to $77 in the six months ended June 30, 2025. The increase of $13, or 34%, in the second quarter of 2026 and $17, or 22%, in the six months ended June 30, 2026 was primarily due to the March 2026 issuance of $1,200 aggregate principal amount of notes that have interest rates ranging from 3.750% to 4.750% and the November 2025 issuance of $500 of 4.550% Notes due 2032, partially offset by the early prepayment of the JPY Term Loan Facility, the cross-currency swap that synthetically converted the 6.750% Bonds due 2028 into a lower fixed-interest-rate Japanese Yen liability, the early redemption of$625 of 5.900% Notes in December 2025, and prepayments of the USD Term Loan Facility during various periods in 2025. On an annual basis, the current year debt actions are expected to increase Interest expense, net by approximately $38.

Current wording

Interest expense, net. Interest expense, net was $48 in the third quarter of 2026 compared to $37 in the third quarter of 2025 and $142 in the nine months ended September 30, 2026 compared to $114 in the nine months ended September 30, 2025. The increase of $11, or 30%, in the third quarter of 2026 and $28, or 25%, in the nine months ended September 30, 2026 was primarily due to the March 2026 issuance of $1,200 aggregate principal amount of notes that have interest rates ranging from 3.750% to 4.750%, the November 2025 issuance of $500 of 4.550% Notes due 2032, and the commercial paper borrowings that had weighted average interest rates of 3.979%, partially offset by the early prepayment of the JPY Term Loan Facility, the cross-currency swap that synthetically converted the 6.750% Bonds due 2028 into a lower fixed-interest-rate Japanese Yen liability, the early redemption of$625 of 5.900% Notes in December 2025, and prepayments of the USD Term Loan Facility during various periods in 2025. On an annual basis, the current year long-term debt actions are expected to increase Interest expense, net by approximately $38.

Previous wording

Other expense, net. Other expense, net was $11 in the second quarter of 2026 compared to $14 in the second quarter of 2025 and $13 in the six months ended June 30, 2026 compared to $23 in the six months ended June 30, 2025. The decrease in expense of $3 in the second quarter of 2026 and $10 in the six months ended June 30, 2026 was primarily due to an increase in interest income resulting from additional cash on hand prior to the acquisition of CAM. Non-service related net periodic benefit costs related to defined benefit plans and other postretirement benefit plans are expected to increase by approximately $5 for the full year 2026 versus 2025.

Current wording

Other expense, net. Other expense, net was $8 in the third quarter of 2026 compared to $10 in the third quarter of 2025 and $21 in the nine months ended September 30, 2026 compared to $33 in the nine months ended September 30, 2025. The decrease in expense of $12 in the nine months ended September 30, 2026 was primarily due to an increase in interest income resulting from additional cash on hand prior to the acquisition of CAM and lower deferred compensation. Non-service related net periodic benefit costs related to defined benefit plans and other postretirement benefit plans are expected to increase by approximately $5 for the full year 2026 versus 2025.

Previous wording

Provision for income taxes. The estimated annual effective tax rate, before discrete items, applied to ordinary income was 20.9% in the second quarter ended June 30, 2026 compared to 20.8% in the second quarter ended June 30, 2025. The tax rate including discrete items was 17.7% in the second quarter of 2026 compared to 13.2% in the second quarter of 2025. A discrete net tax benefit of $20 was recorded in the second quarter of 2026 compared to a discrete net tax benefit of $35 in the second quarter of 2025. The tax rate including discrete items was 17.9% in the six months ended June 30, 2026 and June 30, 2025. A discrete net tax benefit of $41 was recorded in the six months ended June 30, 2026 compared to a discrete net tax benefit of $26 recorded in the six months ended June 30, 2025. The 2026 estimated annual effective tax rate remains consistent with the 2025 rate.

Current wording

Provision for income taxes. The estimated annual effective tax rate, before discrete items, applied to ordinary income was 20.8% in the third quarter ended September 30, 2026 compared to 21.4% in the third quarter ended September 30, 2025. The tax rate including discrete items was 21.4% in the third quarter of 2026 compared to 22.2% in the third quarter of 2025. A discrete net tax charge of $6 was recorded in the third quarter of 2026 compared to a discrete net tax benefit of $1 in the third quarter of 2025. The tax rate including discrete items was 19.1% in the nine months ended September 30, 2026 compared to 19.4% in the nine months ended September 30, 2025. A discrete net tax benefit of $35 was recorded in the nine months ended September 30, 2026 compared to a discrete net tax benefit of $27 recorded in the nine months ended September 30, 2025. The 2026 estimated annual effective tax rate was lower than the 2025 rate primarily due to a larger U.S. deduction on Foreign-Derived Deduction Eligible Income (“FDDEI”) formerly known as Foreign-Derived Intangible Income (“FDII”).

Previous wording

Net income. Net income was $534, or $1.33 per diluted share, in the second quarter of 2026 compared to $407, or $1.00 per diluted share, in the second quarter of 2025 and $1,114, or $2.77 per diluted share, in the six months ended June 30, 2026 compared to $751, or $1.84 per diluted share, in the six months ended June 30, 2025. The increase of $127 in the second quarter of 2026 and $363 in the six months ended June 30, 2026 was primarily due to growth in the commercial and defense aerospace and gas turbines markets, including engine spares, as well as favorable product pricing and the CAM and Brunner acquisitions, partially offset by lower volumes in the commercial transportation market.

Current wording

Net income. Net income was $567, or $1.42 per diluted share, in the third quarter of 2026 compared to $385, or $0.95 per diluted share, in the third quarter of 2025 and $1,681, or $4.18 per diluted share, in the nine months ended September 30, 2026 compared to $1,136, or $2.79 per diluted share, in the nine months ended September 30, 2025. The increase of $182 in the third quarter of 2026 and $545 in the nine months ended September 30, 2026 was primarily due to growth in the commercial and defense aerospace, gas turbines, and commercial transportation markets, growth in engine spares, favorable product pricing and the impact of the CAM and Brunner acquisitions.

Previous wording

Third-party sales for the Engine Products segment increased $335, or 32%, in the second quarter of 2026 compared to the second quarter of 2025, primarily due to growth in the commercial and defense aerospace and gas turbines markets, including engine spares growth.

Current wording

Third-party sales for the Engine Products segment increased $978, or 32%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to growth in the commercial and defense aerospace and gas turbines markets, as well as engine spares growth.

Previous wording

Segment Adjusted EBITDA for the Engine Products segment increased $174, or 51%, in the second quarter of 2026 compared to the second quarter of 2025, primarily due to growth in the commercial and defense aerospace and gas turbines markets. The segment absorbed approximately 485 net headcount in the second quarter of 2026 in support of expected revenue increases.

Current wording

Segment Adjusted EBITDA for the Engine Products segment increased $205, or 57%, in the third quarter of 2026 compared to the third quarter of 2025, primarily due to growth in the commercial aerospace and gas turbines markets. The segment absorbed approximately 520 net headcount in the third quarter of 2026 in support of expected revenue increases.

Previous wording

Segment Adjusted EBITDA for the Engine Products segment increased $314, or 48%, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to growth in the commercial and defense aerospace and gas turbines markets. The segment absorbed approximately 720 net headcount in the six months ended June 30, 2026, in support of expected revenue increases.

Current wording

Segment Adjusted EBITDA for the Engine Products segment increased $519, or 51%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to growth in the commercial and defense aerospace and gas turbines markets. The segment absorbed approximately 1,240 net headcount in the nine months ended September 30, 2026, in support of expected revenue increases.

Previous wording

Third-party sales for the Fastening Systems segment increased $158, or 37%, in the second quarter of 2026 compared to the second quarter of 2025, primarily due to the CAM and Brunner acquisitions as well as growth in the commercial aerospace and defense aerospace markets.

Current wording

Third-party sales for the Fastening Systems segment increased $182, or 41%, in the third quarter of 2026 compared to the third quarter of 2025, primarily due to the CAM and Brunner acquisitions as well as growth in the commercial and defense aerospace markets. Excluding the CAM and Brunner acquisitions, revenue grew 10%.

Previous wording

Third-party sales for the Fastening Systems segment increased $217, or 26%, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to the CAM and Brunner acquisitions as well as growth in the commercial aerospace and defense aerospace markets.

Current wording

Third-party sales for the Fastening Systems segment increased $399, or 31%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to the CAM and Brunner acquisitions as well as growth in the commercial aerospace and defense aerospace markets. Excluding the CAM and Brunner acquisitions, revenue grew 12%.

Previous wording

Third-party sales for the Engine Products segment increased $614, or 31%, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to growth in the commercial and defense aerospace and gas turbines markets, including engine spares growth.

Current wording

Segment Adjusted EBITDA for the Fastening Systems segment increased $121, or 31%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, driven by growth in the commercial and defense aerospace markets and including the impacts of the CAM and Brunner acquisitions.

Previous wording

In 2026, as compared to 2025, demand in the commercial aerospace and defense aerospace markets is expected to increase, and results will also include the impacts of the CAM and Brunner acquisitions. Modest recovery in the commercial transportation market began in the second quarter of 2026 and is expected to continue into the second half of 2026, amid energy-related, economic, and regulatory uncertainty in North America. Governmental policies, laws and regulations, and other geopolitical and economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties.

Current wording

In 2026, as compared to 2025, demand in the commercial aerospace and defense aerospace markets is expected to increase, and results will include the impacts of the CAM and Brunner acquisitions. In 2026, as compared to 2025, demand in the commercial transportation market is expected to have a modest recovery. Governmental policies, laws and regulations, and other geopolitical and economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties.

Previous wording

The Brunner acquisition has been included in the operations of the Fastening Systems segment starting in February 2026. The CAM acquisition has been included in our Fastening Systems segment starting in the second quarter of 2026.

Current wording

The Brunner acquisition has been included in the operations of the Fastening Systems segment starting in February 2026. The CAM acquisition has been included in the Fastening Systems segment starting in the second quarter of 2026.

Previous wording

Third-party sales for the Engineered Structures segment decreased $39, or 13%, in the second quarter of 2026 compared to the second quarter of 2025, primarily due to the disk forging facility divestiture and product rationalization. The Engineered Structures segment continues to focus on the optimization of its manufacturing footprint and rationalization of product mix in order to maximize profitability.

Current wording

Third-party sales for the Engineered Structures segment decreased $12, or 4%, in the third quarter of 2026 compared to the third quarter of 2025, primarily due to the disk forging facility divestiture and product rationalization. Excluding the disk forging facility divestiture, revenue grew 8%. The Engineered Structures segment continues to focus on the optimization of its manufacturing footprint and rationalization of product mix in order to maximize profitability.

Previous wording

Third-party sales for the Engineered Structures segment decreased $49, or 8%, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to the disk forging facility divestiture and product rationalization. The Engineered Structures segment is focusing on the optimization of its manufacturing footprint and rationalization of product mix in order to maximize profitability.

Current wording

Third-party sales for the Engineered Structures segment decreased $61, or 7%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to the disk forging facility divestiture and product rationalization. Excluding the disk forging facility divestiture, revenue was flat. The Engineered Structures segment is focusing on the optimization of its manufacturing footprint and rationalization of product mix in order to maximize profitability.

Previous wording

Segment Adjusted EBITDA Margin for the Engineered Structures segment increased approximately 170 basis points in the second quarter of 2026 compared to the second quarter of 2025, primarily due to operational improvement efforts and lower net headcount.

Current wording

Segment Adjusted EBITDA Margin for the Engineered Structures segment increased approximately 290 basis points in the third quarter of 2026 compared to the third quarter of 2025, primarily due to operational improvement efforts.

Previous wording

Segment Adjusted EBITDA Margin for the Engineered Structures segment increased approximately 100 basis points in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to operational improvement efforts and lower net headcount.

Current wording

Segment Adjusted EBITDA Margin for the Engineered Structures segment increased approximately 160 basis points in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to operational improvement efforts.

Previous wording

Third-party sales for the Forged Wheels segment increased $40, or 14%, in the second quarter of 2026 compared to the second quarter of 2025 primarily due to an increase in aluminum and other inflationary cost pass through, partially offset by lower volumes in the commercial transportation market.

Current wording

Third-party sales for the Forged Wheels segment increased $80, or 32%, in the third quarter of 2026 compared to the third quarter of 2025 primarily due to higher volumes in the commercial transportation market and an increase in aluminum and other inflationary cost pass through.

Previous wording

Third-party sales for the Forged Wheels segment increased $83, or 16%, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to an increase in aluminum and other inflationary cost pass through and favorable foreign currency exchange rates, partially offset by lower volumes in the commercial transportation market.

Current wording

Third-party sales for the Forged Wheels segment increased $163, or 21%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to an increase in aluminum and other inflationary cost pass through, favorable foreign currency exchange rates, and higher volumes in the commercial transportation market.

Previous wording

Segment Adjusted EBITDA Margin for the Forged Wheels segment increased approximately 180 basis points in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to cost reductions, including lower net headcount in response to lower volumes in the commercial transportation market, as well as favorable foreign currency exchange rates, partially offset by higher aluminum and other inflationary cost pass through.

Current wording

Segment Adjusted EBITDA Margin for the Forged Wheels segment increased approximately 10 basis points in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to cost reductions, favorable foreign currency exchange rates, and higher volumes in the commercial transportation market, mostly offset by higher aluminum and other inflationary cost pass through.

Previous wording

In 2026, as compared to 2025, demand in the commercial transportation markets served by Forged Wheels is expected to remain low. Modest recovery in the commercial transportation market began in the second quarter and is expected to continue into the second half of 2026, amid volatile aluminum metal pricing and energy-related, economic, and regulatory uncertainty in North America. Governmental policies, laws and regulations, and geopolitical and other economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties.

Current wording

In 2026, as compared to 2025, demand in the commercial transportation markets served by Forged Wheels is expected to remain moderate. Modest recovery in the commercial transportation market began in the second quarter and is expected to continue, amid energy-related, economic, and regulatory uncertainty in North America. Governmental policies, laws and regulations, and geopolitical and other economic factors, including inflation, customer requirements, tariffs, and fluctuations in foreign currency exchange rates and interest rates, may affect future results of operations and cash flow. The timing, extent, application, and level of tariffs by various governments and our ability to recover tariffs are subject to changes and uncertainties.

Previous wording

Corporate expense increased $27, or 108%, in the second quarter of 2026 compared to the second quarter of 2025 primarily due to acquisition and acquisition-related costs of $22 as well as employment costs.

Current wording

Corporate expense increased $13, or 52%, in the third quarter of 2026 compared to the third quarter of 2025 primarily due to acquisition and acquisition-related costs of $7 as well as employment costs and various other administrative expenses.

Previous wording

Corporate expense increased $37, or 79%, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to acquisition and acquisition-related costs of $28 as well as employment costs.

Current wording

Corporate expense increased $50, or 69%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to acquisition and acquisition-related costs of $35 as well as employment costs and various other administrative expenses.

Previous wording

Cash provided from operations was $1,036 in the six months ended June 30, 2026 compared to $699 in the six months ended June 30, 2025. The increase of $337, or 48%, was primarily due to higher operating results of $311 and lower working capital of $17, partially offset by higher pension contributions of $6. The components of the change in working capital primarily included favorable changes in accounts payable of $205, partially offset by unfavorable changes in inventories of $84, prepaid expenses and other current assets of $59, receivables of $26, other accrued expenses, including timing of interest payments on long-term debt and deferred revenue, of $12, and taxes, including income taxes, of $7.

Current wording

Cash provided from operations was $1,745 in the nine months ended September 30, 2026 compared to $1,230 in the nine months ended September 30, 2025. The increase of $515, or 42%, was primarily due to higher operating results of $498 and increased noncurrent liabilities of $68, related to deferred revenue, partially offset by higher working capital of $43, and higher pension contributions of $6. The components of the change in working capital primarily included unfavorable changes in receivables of $104, prepaid expenses and other current assets of $29, inventories of $22, and taxes, including income taxes, of $20, partially offset by favorable changes in other accrued expenses of $81, related to deferred revenue and compensation-related accruals, and accounts payable of $51.

Previous wording

Cash provided from financing activities was $685 in the six months ended June 30, 2026 compared to cash used for financing activities of $506 in the six months ended June 30, 2025. The increase of $1,191, or 235%, was 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, increased payments on debt of $109, increased taxes paid for the net share settlement of equity awards of $21 primarily due to the timing of payments year over year, and increased dividends paid to common stock shareholders of $14 due to a $0.02 increase in dividends per common share, from $0.10 per share in the second quarter of 2025 to $0.12 per share in the second quarter of 2026, and debt issuance costs of $12. On an annual basis, the current year debt actions are expected to increase Interest expense, net by approximately $38.

Current wording

Cash provided from financing activities was $65 in the nine months ended September 30, 2026 compared to cash used for financing activities of $820 in the nine months ended September 30, 2025. The increase in cash provided of $885, or 108%, was primarily due to additions to debt of $1,200 and a net increase in commercial paper of $390, partially offset by increased common stock repurchases of $600, increased payments on debt of $46, increased taxes paid for the net share settlement of equity awards of $23 primarily due to the increased stock price year over year, and increased dividends paid to common stock shareholders of $22, primarily due to a $0.06 increase in dividends per common share, from $0.32 per share in the nine months ended September 30, 2025 to $0.38 per share in the nine months ended September 30, 2026, and debt issuance costs of $12. Common stock outstanding as of September 30, 2026 and December 31, 2025 was 397,656,778 and 401,620,565, respectively. Diluted common stock outstanding as of September 30, 2026 and December 31, 2025 was 399,450,237 and 403,759,503, respectively. On an annual basis, the current year long-term debt actions are expected to increase Interest expense, net by approximately $38.

Previous wording

The Company has a commercial paper program under which the Company may issue unsecured commercial paper from time to time up to a maximum aggregate face amount of$1,000. The Company had $450 of commercial paper outstanding as of June 30, 2026, and no amounts were outstanding under the commercial paper program as of December 31, 2025. The Company had no commercial paper borrowings with original maturities greater than 90 days in 2026 or 2025. The Company’s commercial paper is sold on customary terms in the U.S. commercial paper market on a private placement basis. The proceeds of the commercial paper are used for general corporate purposes, including the CAM acquisition. In conjunction with the commercial paper program, the Company was assigned short-term credit ratings by Moody’s Investors Service, Inc., S&P Global Ratings, and Fitch Ratings, Inc.

Current wording

The Company has a commercial paper program under which the Company may issue unsecured commercial paper from time to time up to a maximum aggregate face amount of$1,000. The Company had $390 of commercial paper outstanding as of September 30, 2026, and no amounts were outstanding under the commercial paper program as of December 31, 2025. The Company had no commercial paper borrowings with original maturities greater than 90 days in 2026 or 2025. The Company’s commercial paper is sold on customary terms in the U.S. commercial paper market on a private placement basis. The proceeds of the commercial paper are used for general corporate purposes. In conjunction with the commercial paper program, the Company was assigned short-term credit ratings by Moody’s Investors Service, Inc., S&P Global Ratings, and Fitch Ratings, Inc.

Previous wording

Cash used for investing activities was $1,900 in the six months ended June 30, 2026 compared to $212 in the six months ended June 30, 2025. The increase of $1,688, or 796%, was primarily due to cash used for the CAM and Brunner acquisitions, net of cash acquired, of $1,929, partially offset by an increase in proceeds from the sale of assets and businesses of $217, primarily due to the sale of its disk forging facility, and a decrease in capital expenditures of $23.

Current wording

Cash used for investing activities was $2,046 in the nine months ended September 30, 2026 compared to $316 in the nine months ended September 30, 2025. The increase of $1,730, or 547%, was primarily due to cash used for the CAM and Brunner acquisitions, net of cash acquired, of $1,929 and an increase in capital expenditures of $16, partially offset by an increase in proceeds from the sale of assets and businesses of $217, primarily due to the sale of the disk forging facility within Engineered Structures.