Howmet Aerospace (HWM) — Q2 2026 Earnings Preview

1. Earnings Preview

Key Takeaway: Setup leans toward a beat — consensus sits at or just below the midpoint of management’s own Q2 guidance, the peer read-through from GE Aerospace, TransDigm, and Carpenter Technology is uniformly bullish, and estimate revisions have moved materially higher since the Q1 print; the single biggest swing factor is whether IGT revenue growth sustains the ~39% Q1 pace and whether Engine Products EBITDA margin can hold above 36% despite absorbing new headcount.

Heading into Q2 2026, the bar for HWM is high in absolute terms but not stretched relative to management’s own guidance: consensus EPS of $1.25 sits essentially at the $1.23 midpoint of the Q2 guide issued on May 7, implying the Street has already baked in a modest beat but left little room for upside surprise on the bottom line. Management’s tone since Q1 has been unambiguously constructive — at the Bernstein SDC on May 27, CEO John Plant reiterated the $1.75 billion free cash flow target, flagged Boeing 737 MAX rates trending toward 47/month in the summer (above the 42/month embedded in guidance), and described IGT demand as extraordinary with the seventh major customer contract expected to close during Q2. Estimate revisions have tracked guidance closely: the Q2 EPS consensus has risen from $1.10 at the time of the Q4 2025 print to $1.25 today, a 14% upward move that mirrors the organic revenue guidance raise from ~10% to ~14% for the full year. The stock has re-rated sharply — up ~7% since the Q1 print and ~61% over the trailing twelve months — with roughly two-thirds of the move driven by multiple expansion (NTM EV/EBITDA now 34.3x vs. 30.9x six months ago), meaning the stock is pricing in continued execution rather than a step-change surprise. The wildcard is IGT revenue trajectory: if the seventh customer contract closed during Q2 and capacity from the new Japan facility begins contributing, IGT could print above the 25–30% full-year growth guide and force another material FY2026 raise — the single event most likely to drive a meaningful post-print move.

2. KPIs & Consensus Expectations

Key Takeaway: Consensus is a modest but not stretched bar — Q2 EPS of $1.25 sits just above the $1.23 guidance midpoint, and revenue of $2.43B is in line with the $2.40B guide. The bigger swing factor is Engine Products EBITDA margin (consensus ~36.7% vs. Q1 record of 36.6%) and IGT revenue growth, where any acceleration above the 25–30% full-year guide would be the most meaningful upside catalyst.

Table 1 — Q2 2026 Current Quarter Snapshot (All Key KPIs)

Sources: Visible Alpha Consensus and Actuals Data (Revenue, Adjusted EBITDA, EPS — Diluted Operating, Free Cash Flow, Revenue — Engine Products, Revenue — Commercial Aerospace, Revenue — Gas Turbines — Engine Products, EBITDA Margin — Engine Products — Operating). Q2 2026 guidance from HWM Q1 2026 Earnings Call, May 7, 2026.

Table 2 — Beat/Miss History: Last 8 Quarters (Top 2 KPIs: Revenue & Operating EPS)

Pattern: HWM has beaten consensus on Operating EPS in 7 of the last 8 quarters (the lone revenue miss in Q3 2024 was offset by a strong EPS beat), with the magnitude of EPS beats accelerating sharply in Q1 2025 (+11.7%) and Q1 2026 (+10.2%) as IGT and spares mix inflected — a consistent pattern of conservative guidance that the Street has not yet fully closed.

Source: Visible Alpha Consensus and Actuals Data.

3. Guidance & Commentary Evolution

Key Takeaway: Guidance has not been formally revised since the May 7 Q1 earnings call, but management’s tone at the Bernstein SDC (May 27) was incrementally more constructive on Boeing 737 MAX rates (trending toward 47/month vs. 42/month embedded in guidance) and IGT demand breadth; the only post-earnings financial action was a ~$12M annual interest expense reduction from the JPY term loan prepayment on May 22, which is a modest EPS tailwind not yet reflected in consensus.

Sources: HWM Q1 2026 Earnings Call transcript (May 7, 2026); HWM Bernstein Strategic Decisions Conference transcript (May 27, 2026); HWM 8-K filed May 28, 2026 (JPY Term Loan Facility Prepayment); Visible Alpha Consensus and Actuals Data.

4. Guidance vs. Estimate Revision Tracker

Key Takeaway: Estimates have moved sharply higher since the Q1 print — Q2 EPS consensus is up ~13% from the post-Q4 baseline and FY2026 EPS is up ~10% — tracking closely with management’s guidance raises. The gap between consensus and guidance midpoints is narrow (+1–2%), suggesting the Street has largely closed the cushion; any further raise at Q2 would require a beat on IGT or a higher Boeing rate assumption.

Commentary: The Q2 EPS estimate has risen 12.6% since the post-Q4 baseline, driven almost entirely by the Q1 beat and the FY2026 guidance raise (organic growth from ~10% to ~14%). The FY2026 revenue consensus of $9.76B sits just 1.1% above the guidance midpoint, leaving limited room for a further raise unless Boeing 737 rates exceed the 42/month embedded assumption (management flagged 47/month trending at Bernstein) or IGT accelerates above the 25–30% full-year guide. The FY2027 EPS estimate of $6.12 has risen 7.4% since the Q4 baseline, reflecting growing confidence in the multi-year IGT and spares flywheel.

Sources: Visible Alpha Consensus and Actuals Data (all estimate figures); HWM Q1 2026 Earnings Call (May 7, 2026) for guidance figures; HWM Bernstein SDC transcript (May 27, 2026).

5. Stock Performance

Key Takeaway: HWM has outperformed both ITA (+13.4%) and SPY (+5.2%) by a wide margin since the Q1 print (+7.0%), with roughly two-thirds of the trailing 6-month gain driven by multiple expansion (NTM EV/EBITDA from 30.9x to 34.3x) rather than estimate revisions alone — suggesting the stock is pricing in continued execution and the IGT secular story, leaving it vulnerable to any guidance miss.

Chart: HWM vs. ITA vs. SPY — Indexed to 100 at May 7, 2026 (Q1 2026 Earnings Date)

Note: Indexed to 100 at May 7, 2026 close ($272.54 for HWM, $222.51 for ITA, $731.58 for SPY). Aug 5, 2026 values based on Aug 4 close (last available trading day before preparation date). Key events marked: Bernstein SDC (May 27), JPY Loan 8-K (May 28), GE Aerospace Q2 print (Jul 16), HXL Q2 print (Jul 29), TDG/AIN Q2 prints (Aug 4).

Performance Summary (May 7 → Aug 4, 2026): HWM +5.7% | ITA +12.6% | SPY +5.4%. HWM underperformed ITA over the period as the broader defense/aerospace ETF benefited from GE Aerospace’s strong Q2 print and sector re-rating, while HWM consolidated after its own sharp post-Q1 move. On a 6-month basis, HWM is +36.5% vs. ITA’s implied gain, with multiple expansion (EV/EBITDA from 30.9x to 34.3x, +11.1%) accounting for roughly 30% of the total price return.

Valuation Context: HWM trades at 34.3x NTM EV/EBITDA and 50.7x NTM P/E as of August 5, 2026. The premium reflects the market’s recognition of the structural shift toward higher-margin spares mix, the IGT secular opportunity, and sustained incremental margins above 50%. At this multiple, the stock requires continued execution — any guidance miss or margin disappointment would likely compress the multiple meaningfully.

Source: Stock Price Data (Yahoo Finance); Stock Performance Decomposition (NTM multiples as of August 5, 2026).

6. Material News & Developments

Key Takeaway: The most important post-Q1 development is the CAM acquisition close (April 6) and the Savannah divestiture (March 31), which together add ~$275M of revenue and ~$60M of EBITDA to the remainder of 2026 — the first full quarter of CAM contribution will be visible in Q2 results and is the primary source of inorganic revenue upside vs. prior-year comparisons.

• April 6, 2026 — CAM Acquisition Closed: Howmet closed the acquisition of CAM (precision fasteners, fluid fittings, couplings, heat shields) for ~$1.8B, financed with $1.65B of new debt. Q2 2026 will be the first full quarter of CAM contribution. CAM’s current EBITDA margin is ~20% (below Fastening Systems average of ~31.8%), which will dampen reported segment margins near-term before improvement over 18–24 months. Implication: Expect Fastening Systems revenue to step up materially YoY but segment EBITDA margin to compress vs. Q1 2026 due to CAM dilution.
• March 31, 2026 — Savannah Disk Forging Divestiture: Sold the Savannah, Georgia disk forging facility for $230M in cash. Proceeds partially funded the CAM acquisition. Expected to be margin accretive to the Engineered Structures segment. Implication: Structures segment revenue will be lower YoY but margins should improve; reduces reliance on third-party alloyed metal inputs.
• May 22, 2026 — JPY Term Loan Prepayment & Cross-Currency Swap (8-K, May 28): Prepaid ¥29,702M (~$187M) JPY term loan and entered a cross-currency swap converting $300M of 6.750% Notes due 2028 into a JPY liability at ~3.88%. Expected to reduce annual interest expense by ~$12M. Implication: Modest EPS tailwind (~$0.03–0.04 annualized) not yet fully reflected in consensus; positive for FY2026 and FY2027 EPS.
• May 27, 2026 — Bernstein SDC Conference: CEO John Plant provided incrementally bullish commentary: Boeing 737 MAX trending toward 47/month in summer (vs. 42/month embedded in guidance); IGT customer base expanded to include small/mid-sized turbine manufacturers (Solar/Caterpillar, Baker Hughes, Doosan) and LNG applications; global gas turbine fleet could nearly double in 5 years; HWM’s global IGT blade market share is well over 50%; GTF Advantage production increasing every quarter in 2026 with “far higher” volumes in 2027. Implication: Upside risk to both Q2 and FY2026 revenue guidance if Boeing rates and IGT demand breadth are confirmed.
• February 6, 2026 — Brunner Acquisition Closed: Acquired Brunner Manufacturing (Wisconsin-based fastener business) for ~$120M in cash. Integration on track per Q1 earnings call. Implication: Modest incremental revenue contribution to Fastening Systems in Q2; integration risk is low given small deal size.
• Q1 2026 — Rare Earth Inventory Security: Management disclosed full coverage through 2026, ~90% coverage through 2027, and some products secured through end of decade. Implication: Reduces supply chain risk from China rare earth export restrictions; no near-term P&L impact but strategically important for defense programs.
• Q1 2026 — Fitch Credit Upgrade to A-: Fitch upgraded HWM from BBB+ to A- (four notches into investment grade), reflecting improved leverage profile and strong FCF generation. Implication: Lower cost of debt over time; validates management’s capital allocation discipline despite elevated CapEx and M&A.
• July 9, 2026 — Q2 2026 Earnings Webcast Announcement: Howmet announced Q2 2026 results will be released August 6, 2026, with a webcast at 10:00 AM ET. No pre-announcement or guidance update was issued alongside this press release. Implication: Absence of a pre-announcement is consistent with results tracking in line with or above guidance.

7. Insider Transaction Activity

Key Takeaway: Only one open-market transaction was disclosed since the Q1 earnings call — a discretionary sale by the EVP & CAO. The absence of any open-market buying and the single discretionary sale are not alarming given the stock’s sharp appreciation, but there is no insider buying signal to reinforce the bull case.

Commentary: The single disclosed transaction is a discretionary open-market sale by the EVP & CAO on May 11, 2026 — four days after the Q1 earnings beat and stock surge. The sale of 41,932 shares (39% of his pre-transaction position) at prices in the $270–$275 range is notable in size relative to his holdings but is not unusual following a sharp post-earnings move. No 10b5-1 plan was flagged. No open-market purchases have been disclosed by any insider since the Q1 print. The CEO, CFO, and other senior executives have not transacted, which is neither a positive nor negative signal in isolation.

Source: SEC Form 4 Filing — Marchuk Neil Edward (HWM), transaction date May 11, 2026, filed May 12, 2026.

8. Peer Commentary Read-Throughs

Key Takeaway: The peer read-through for HWM Q2 2026 is uniformly bullish — GE Aerospace (HWM’s largest customer) reported LEAP deliveries up 24% and spare parts sales up 25%+ in Q2, TransDigm reported commercial aftermarket up 17–18% with no demand impact from geopolitical events, Hexcel confirmed A350 and 787 sales at their highest levels since pre-pandemic, and Carpenter Technology delivered record SAO margins of 37.8%. The only caution is that HWM’s stock has already partially re-rated on these signals.

Scope: Only commentary from Q2 2026 earnings releases/calls or forward-looking statements made after May 7, 2026 (HWM’s Q1 earnings date) through August 5, 2026 is included below. Prior-quarter results commentary (e.g., Q1 2026 results discussed on Q1 earnings calls) is excluded. Peers are ranked by read-through quality.

8.1 GE Aerospace (GE) — Read-Through Quality: 🔴 Highest

Relationship: GE Aerospace is HWM’s largest customer — HWM supplies turbine airfoils into LEAP, GEnx, GE9X, and other GE/CFM engines. GE reported Q2 2026 results on July 16, 2026.

• LEAP deliveries up 24% in Q2 2026 (full-year guidance raised to high-teens growth vs. prior 15%): directly drives HWM Engine Products volume since HWM supplies airfoils into LEAP. GE now expects commercial equipment to grow ~20% for the full year (raised from mid-to-high teens). HWM read-through: Strong positive for Engine Products revenue in Q2 and H2 2026.
• Commercial services revenue up 22% in Q2 / spare parts sales up 25%+: GE’s commercial services backlog reached ~$170B (+$30B since end of 2024); shop visits oversubscribed by 40%; 95% of Q3 spare parts already in backlog. LEAP shop visits projected to grow at 25% CAGR through 2030. HWM read-through: Validates HWM’s own spares inflection (23% of revenue in Q1 2026); GE’s spare parts delinquency up 20% sequentially means HWM is being pulled harder as a supplier.
• Wide-body deliveries up 30% in Q2 (GE9X up significantly): GE pushed back on GEnx delay concerns, stating Boeing has months of engine supply for 787 production ramp. HWM read-through: Positive for HWM’s wide-body airfoil and fastener content; GE9X ramp is a multi-year tailwind.
• LEAP-1B Durability Kit certified: Expected to deliver ~2x improvement in time on wing; full MRO and new-make cutover in early 2027; fleet retrofits extend into early 2030s. HWM read-through: HWM is in the tooling/capacity build phase for the LEAP-1B Maverick changeover — GE’s certification confirms the program is on track and HWM’s investment is well-timed.
• Defense (DPT) orders up 12% in Q2; backlog exceeded $30B (+$5B YTD): Full-year DPT growth guidance raised to low double digits. CCA programs (GEK 1500, GE40026) advanced to preliminary design review. HWM read-through: Positive for HWM’s defense airfoil business; CCA program advancement confirms HWM’s content position on all three selected base engines.
• Supply chain: “We do not have a demand problem” (CEO Larry Culp): Priority supplier material input increasing double digits sequentially and YoY; nine consecutive quarters of double-digit increases from critical suppliers. HWM read-through: Confirms HWM is operating in a sustained demand upcycle with no near-term demand risk.
• Caveat: GE’s overall CES margins declined 160 bps to 27.3% due to installed engine growth, GE9X investments, and inflation — this is OEM-specific and does not read through to HWM’s supplier margins.

8.2 TransDigm Group (TDG) — Read-Through Quality: 🔴 Highest (Business Model Analog)

Relationship: TransDigm is a highly acquisitive manufacturer of proprietary aerospace components with a strong aftermarket orientation — structurally similar to HWM’s fastening systems business model. TDG reported Q3 FY2026 results on August 4, 2026.

• Commercial aftermarket up 17–18% in Q3 FY2026 (3rd consecutive quarter of beating expectations): Broad-based demand across all platforms; particular strength in engine and passenger submarkets. POS at distributors grew double digits. Full-year commercial aftermarket guidance raised to low-double-digit growth (from high-single to low-double). HWM read-through: Strong validation of HWM’s spares inflection thesis; no demand slowdown from Middle East conflict.
• Commercial OEM up 25% in Q3 FY2026: Driven by production improvements at Boeing and Airbus; book-to-bill solidly positive; full-year commercial OEM guidance raised to mid-teens growth. TDG expects Boeing and Airbus to “continue to march along the path they’ve put forth” into 2027. HWM read-through: Confirms sustained OEM production ramp; positive for HWM’s Engine Products and Fastening Systems OEM revenue.
• Defense up ~11% in Q3 FY2026; full-year guidance high-single to low-double digits: Defense bookings up YoY and sequentially, outpacing sales. New wins include fighter aircraft battery and unmanned combat aircraft actuator. HWM read-through: Positive for HWM’s defense segment; confirms healthy defense spending environment.
• Supply chain “reasonably solid”: TDG’s suppliers “performed well enough to keep us in a good position.” HWM read-through: Consistent with HWM’s own supply chain normalization narrative.
• Acquisition of Prince & Izant (aeroderivative turbine content): TDG acquired a company with content in aerospace/defense engine platforms and aeroderivative turbines. HWM read-through: Validates the strategic value of aeroderivative/IGT content; consistent with HWM’s own IGT investment thesis.
• Caveat: TDG’s EBITDA margins (52.8%) are structurally higher than HWM’s due to its unique proprietary aftermarket model; margin comparisons are not meaningful. TDG’s fiscal year ends September 30, so Q3 FY2026 = April–June 2026, directly overlapping HWM’s Q2 2026.

8.3 Hexcel Corporation (HXL) — Read-Through Quality: 🟠 High (Same Programs, Different Material)

Relationship: HXL makes carbon fiber composite materials for the same aircraft programs HWM serves (A350, A320neo, 737 MAX, 787). HXL reported Q2 2026 results on July 29, 2026.

• Commercial Aerospace sales up 18.3% in Q2 2026: Growth across all four major platforms — A350, A320neo, 787, and 737 MAX. A350 and 787 quarterly sales at their highest levels since before the pandemic. HWM read-through: Strong positive for HWM’s wide-body exposure (787, A350) — particularly notable given HWM’s conservative 787 rate assumption of 8/month by year-end vs. Boeing’s 10/month target.
• FY2026 guidance raised: Sales guidance increased to $2.025–$2.125B (from $2.0–$2.1B); adjusted EPS raised to $2.30–$2.40 (from $2.10–$2.30). HXL is adding headcount and restarting idle assets in response to “strengthening demand signals.” HWM read-through: Confirms the commercial aerospace recovery is broad-based and accelerating; supply chain capacity investments are being made across the industry.
• Meaningful operating leverage: gross margin 26.1% (vs. 22.8% in Q2 2025): Higher sales volume translating to margin expansion. HWM read-through: Positive for HWM’s incremental margin thesis; volume leverage is working across the aerospace supply chain.
• Caveat: HXL’s defense segment declined 7.2% in Q2 due to an Austrian industrial divestiture — this is company-specific and does not read through to HWM’s defense business. HXL has no IGT exposure following its industrial divestiture.

8.4 Carpenter Technology (CRS) — Read-Through Quality: 🟠 High (Upstream Materials Supplier)

Relationship: CRS produces specialty alloys (nickel, titanium, stainless) for aerospace — positioned upstream of HWM in the supply chain (HWM buys specialty alloys and converts them into finished airfoils/components). CRS reported Q4 FY2026 results (fiscal year ending June 30, 2026) on July 30, 2026 — directly overlapping HWM’s Q2 2026.

• Aerospace & Defense net sales up 17% YoY in Q4 FY2026 ($449M vs. $384M): Full fiscal year A&D sales up 15% YoY. HWM read-through: Strong demand for specialty alloys used in jet engines and airframes confirms the volume environment HWM is operating in.
• Record SAO adjusted operating margin of 37.8% in Q4 FY2026 (vs. 30.5% a year ago): Driven by “pricing realization across both long-term and transactional business” and improved product mix. FY2027 guidance of $850–$880M operating income (+21–25% YoY). HWM read-through: Pricing strength in specialty alloys is a positive for the broader aerospace supply chain pricing environment; however, rising input costs for HWM if alloy prices increase.
• Brownfield capacity expansion underway; FY2029 operating income target of $1.2–$1.3B: CRS is investing in capacity to meet sustained demand through the end of the decade. HWM read-through: Upstream capacity expansion reduces the risk of specialty alloy supply constraints for HWM’s turbine airfoil production.
• Energy segment sales declined 12% in Q4 FY2026 ($39M vs. $45M): Full-year energy sales were up 13% YoY, but the Q4 sequential decline is a mild caution. HWM read-through: Limited direct read-through to HWM’s IGT segment as CRS’s energy segment is broad and not specifically delineated to gas turbines.
• Caveat: CRS is an upstream materials supplier, not a direct product peer. Rising CRS alloy prices (driven by pricing realization) could be a headwind to HWM’s input costs, partially offsetting the positive volume signal.

8.5 Albany International — Engineered Composites (AIN) — Read-Through Quality: 🟠 High (Same Engine Programs)

Relationship: AIN’s Engineered Composites segment makes 3D-woven composite fan blades and cases for LEAP engines via a Safran joint venture — the same LEAP program that is HWM’s largest single engine program. AIN reported Q2 2026 results on August 4, 2026.

• LEAP ramp-up “significant”; moving to 7-day/24-hour operations across 3 sites this summer: AIN expects the LEAP program to “continue to ramp and settle sometime late in 2027,” with Airbus potentially reaching 75 aircraft/month by 2028. HWM read-through: Directly validates HWM’s LEAP-1A and LEAP-1B airfoil volume ramp; the 7-day/24-hour operations signal is a strong positive for Q2 and H2 2026 Engine Products revenue.
• New Pratt & Whitney Geared Turbofan contract won: Resin transfer molded parts for GTF engine inlets; production starting early 2027 in Mexico. HWM read-through: Confirms GTF program health and continued investment by the supply chain; positive for HWM’s GTF Advantage airfoil ramp.
• Missile demand “remains elevated”; JASSM and LRASM ramping: Department of War visited AIN’s Salt Lake City facility to assess capacity for Lockheed Martin programs. HWM read-through: Consistent with HWM’s commentary on PAC-3, Patriot, THAAD, and Golden Dome demand; defense aftermarket is a multi-year tailwind.
• EC Adjusted EBITDA margin improved to 13.3% (vs. 8.5% a year ago): Driven by higher production rates across LEAP, Boeing programs, CH-53K, and missiles. HWM read-through: Volume leverage is working across the aerospace supply chain; positive for HWM’s incremental margin thesis.
• Caveat: A strategic next-generation defense contract experienced tooling delays that shifted Q2 revenue to H2 — a timing issue specific to AIN, not a demand signal. AIN’s EC margins (13.3%) are structurally lower than HWM’s Engine Products margins (36.6%), reflecting AIN’s earlier-stage position.

8.6 GE Aerospace — Pre-Q2 Conference Commentary (June 7, 2026)

At a Bloomberg interview on June 7, 2026, GE Aerospace CEO Larry Culp reported “robust growth in spare parts orders and engine deliveries” and noted the aviation sector’s “unexpected resilience.” He highlighted ongoing supply chain improvement efforts and investment in next-generation engine technology. HWM read-through: Pre-Q2 confirmation that demand trends were tracking well heading into the quarter; no demand deterioration from geopolitical events.

8.7 Peer Read-Through Summary Matrix

Excluded Peer Commentary (and Rationale)

• Heidelberg Materials (HEI GR) Q2 2026 Earnings Call (Aug 4, 2026): Building materials company (cement, aggregates, concrete) — no meaningful read-through to HWM’s aerospace or IGT businesses. Excluded.
• GE Aerospace Q1 2026 commentary (pre-May 7, 2026): Excluded as it predates HWM’s Q1 earnings call and reflects prior-quarter results, not current-quarter signals.
• ATI Inc. Q1 2026 commentary: ATI’s Q1 2026 results were reported before May 7, 2026 and reflect prior-quarter dynamics. ATI has not yet reported Q2 2026 results as of August 5, 2026. Excluded from current-quarter read-through.

Three Most Critical Read-Through Themes for HWM Q2 2026

1. Engine production rate trajectory (narrow-body + wide-body): GE’s LEAP deliveries up 24% in Q2 2026, AIN’s 7-day/24-hour LEAP operations, and TDG’s commercial OEM up 25% are the strongest confirmations that HWM’s Engine Products segment is operating in a sustained upcycle. HXL’s A350 and 787 sales at pre-pandemic highs validate HWM’s wide-body exposure.
2. Aftermarket/spares inflection: GE’s spare parts sales up 25%+ and TDG’s commercial aftermarket up 17–18% both validate HWM’s own spares inflection (23% of revenue in Q1 2026). GE’s spare parts delinquency (demand exceeding supply) is a bullish signal — HWM is being pulled harder as a supplier.
3. Pricing and margin environment: CRS’s record SAO margins (37.8%), HXL’s gross margin expansion (+330 bps), and TDG’s sequential EBITDA margin improvement all confirm that volume leverage is translating to margin expansion across the aerospace supply chain — consistent with HWM’s 51% incremental margin guidance for Q2.