Earnings Per Share and Common Stock

9 Months Ended

Sep. 30, 2025

Basic earnings per share (“EPS”) amounts are computed by dividing earnings, after the deduction of preferred stock dividends declared, by the average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding.

The information used to compute basic and diluted EPS attributable to Howmet common shareholders was as follows (shares in millions in the table below):


	Third quarter ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024


Net income	$	385	$	332	$	1,136	$	841
Less: preferred stock dividends declared	1		1		2		2
Net income available to Howmet Aerospace common shareholders - basic and diluted	$	384	$	331	$	1,134	$	839



Average shares outstanding - basic	403		408		404		408
Effect of dilutive securities:
Stock and performance awards	2		2		2		3


Average shares outstanding - diluted	405		410		406		411

Common stock outstanding as of September 30, 2025 and 2024 was 403 million and 407 million, respectively.

As average shares outstanding are used in the calculation for both basic and diluted EPS, the full impact of share repurchases and issuances is not fully realized in EPS in the period of repurchase or issuance since share activity may occur at varying points during a period.

The Company has a share repurchase program (the “Share Repurchase Program”) that has approximately $1,597 in Board authorization remaining available as of October 30, 2025, after giving effect to the additional $100 share repurchases made in October 2025 at an average price per share of $191.86, which retired approximately 0.5 million shares. The Share Repurchase Program was authorized by the Company’s Board of Directors on August 18, 2021 at $1,500, which was increased by the Board by $2,000 on July 30, 2024. Under the Share Repurchase Program, the Company may repurchase shares by means of trading plans established from time to time in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, block trades, private transactions, open market repurchases and/or accelerated share repurchase agreements, or other derivative transactions. There is no stated expiration for the Share Repurchase Program. Under the Share Repurchase Program, the Company may repurchase shares from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements, and other considerations. The Company is not obligated to repurchase any specific number of shares or to do so at any particular time, and the Share Repurchase Program may be suspended, modified, or terminated at any time without prior notice.

The following table provides details for share repurchases made for the periods presented:


	Number of shares(1)	Average price per share(2)		Total
Q1 2025 open market repurchase	1,006,102	$	124.24	$	125

Q2 2025 open market repurchase	1,229,313	$	142.36	$	175

Q3 2025 open market repurchase	1,097,686	$	182.20	$	200

2025 Share repurchases as of September 30, 2025	3,333,101	$	150.01	$	500

Q1 2024 open market repurchase	2,243,259	$	66.87	$	150

Q2 2024 open market repurchase	734,737	$	81.66	$	60

Q3 2024 open market repurchase	1,061,323	$	94.22	$	100

2024 Share repurchases as of September 30, 2024	4,039,319	$	76.75	$	310

(1)All of the shares repurchased have been retired.

(2)Excludes commissions cost.

The Inflation Reduction Act of 2022 imposed a 1% excise tax on net stock repurchases after December 31, 2022. The Company recorded additional capital for excise tax on net repurchases of $2 in the third quarter and $4 in the nine months ended September 30, 2025 and $2 in the third quarter and $3 in the nine months ended September 30, 2024.

There were no shares relating to outstanding stock options excluded from the calculation of average shares outstanding - diluted for the third quarter and nine months ended September 30, 2025 and 2024.

Common stock dividends declared were $0.24 per share in the third quarter of 2025 (of which $0.12 per share were paid) and $0.44 per share in the nine months ended September 30, 2025 (of which $0.32 per share were paid). Common stock dividends declared were $0.16 per share in the third quarter of 2024 (of which $0.08 per share were paid) and $0.26 per share in the nine months ended September 30, 2024 (of which $0.18 per share were paid).