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,
	2026		2025		2026		2025


Net income	$	567	$	385	$	1,681	$	1,136
Less: preferred stock dividends declared	—		1		—		2
Net income available to Howmet Aerospace common shareholders - basic and diluted	$	567	$	384	$	1,681	$	1,134



Average shares outstanding - basic	398		403		400		404
Effect of dilutive securities:
Stock and performance awards	2		2		2		2


Average shares outstanding - diluted	400		405		402		406

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, 2026 and 2025.

Common stock outstanding as of September 30, 2026 and 2025 was 398 million and 403 million, respectively. Howmet redeemed all outstanding shares of its $3.75 Cumulative Class A Preferred Stock on December 17, 2025. There is no preferred stock outstanding as of September 30, 2026.

The Company has a Share Repurchase Program (the “Share Repurchase Program”) under which 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.


	Number of shares(1)	Average price per share(2)		Total
Q1 2026 open market repurchase	1,301,914	$	230.43	$	300

Q2 2026 open market repurchase	1,197,056	$	250.61	$	300

Q3 2026 open market repurchase	1,888,442	$	264.77	$	500

2026 open market repurchases as of September 30, 2026	4,387,412	$	250.72	$	1,100

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

The Share Repurchase Program was authorized by the Company’s Board of Directors in August 2021 at $1,500, which was increased by $2,000 by the Board in July 2024. On October 28, 2026, the Board authorized an additional $5,000 increase to the Share Repurchase Program. After giving effect to the share repurchases made through October 28, 2026, the Company has approximately $5,397 in Board authorization remaining available.

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.

For excise tax on net repurchases, the Company recorded $5 in the third quarter ended September 30, 2026 and $10 in the nine months ended September 30, 2026 and $2 in the third quarter and $4 in the nine months ended September 30, 2025 to additional capital.