NYSE$HWM
Howmet Aerospace Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Revenue declined due to disruptions in commercial aerospace and transportation markets, but cost and cash containment actions drove positive adjusted free cash flow.
Howmet Aerospace reported a revenue of $1.25 billion, a 31% decrease year-over-year, impacted by COVID-19 and 737 MAX production declines. The company reported a Loss from Continuing Operations of $84 million, or $0.19 per share. Income from Continuing Operations excluding special items was $55 million, or $0.12 per share. Despite these challenges, Howmet Aerospace generated positive cash from operations and positive adjusted free cash flow, with a cash balance of $1.28 billion at the end of the quarter.
- Revenue decreased 31% year-over-year to $1.25 billion due to COVID-19 and 737 MAX production declines.
- Loss from Continuing Operations was $84 million, or $0.19 per share.
- Income from Continuing Operations excluding special items was $55 million, or $0.12 per share.
- Adjusted Free Cash Flow excluding separation costs was $76 million.
Headline financials
Revenue & EPS history
Howmet Aerospace · Revenue · Quarterly
$1.25B
Revenue by segment
Howmet Aerospace · $1.25B total across 4 segments · Q2 2020
- Engine Products$585M-29.9%46.7%
- Fastening Systems$326M-18.3%26.0%
- Engineered Structures$229M-30.8%18.3%
- Forged Wheels$113M-56.0%9.0%
Forward guidance
Howmet Aerospace provided an outlook for the third quarter and full year of 2020, including revenue, adjusted EBITDA, adjusted EBITDA margin, and earnings per share excluding special items. The company anticipates third quarter 2020 revenue and earnings will represent the low point for the year, while fourth quarter 2020 revenue is expected to recover with margins rebounding to levels similar to the second quarter 2020.
Tailwinds
- Full Year Revenue ~$5,200M +/- $100M
- Full Year Adjusted EBITDA ~$1,030M +/- $35M
- Full Year Adjusted EBITDA Margin ~20% +/- 100 bps
- Full Year Earnings per Share Excluding Special Items $0.60 - $0.72
- 2Q - 4Q Adjusted Free Cash Flow ~$400M +/- $50M
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2020
+1.6%
Avg return
Earnings day
+3.0%
Avg return
5 days after
+5.9%
Avg return
30 days after
60%
43 / 72 earnings
Positive
+22.0%
Q3 2020
Best reaction
-21.2%
Q1 2018
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2025 | +6.3% | +4.0% | -1.7% | |
| Q1 2026 | +2.8% | +4.0% | -1.7% | |
| Q3 2025 | -0.8% | +0.8% | +0.5% | |
| Q2 2025 | -6.4% | -6.7% | -9.4% | |
| Q1 2025 | +6.8% | +12.4% | +22.6% | |
| Q4 2024 | -0.0% | +6.7% | -1.2% | |
| Q3 2024 | +8.9% | +12.3% | +15.8% | |
| Q2 2024 | +15.5% | +8.8% | +17.0% | |
| Q4 2023 | +7.7% | +6.8% | +11.3% | |
| Q3 2023 | +7.3% | +7.9% | +18.3% | |
| Q2 2023 | -6.0% | -4.1% | -3.3% | |
| Q1 2023 | +0.9% | -0.7% | -1.3% | |
| Q4 2022 | +5.7% | +4.7% | -1.5% | |
| Q3 2022 | +0.9% | -0.4% | +4.1% | |
| Q2 2022 | -0.5% | +0.6% | -5.9% | |
| Q1 2022 | +8.0% | +3.5% | +9.3% | |
| Q4 2021 | +2.8% | +3.8% | +7.1% | |
| Q3 2021 | +9.8% | +8.7% | -4.5% | |
| Q2 2021 | -4.1% | -4.4% | -4.9% | |
| Q1 2021 | +3.8% | +0.2% | +8.8% | |
| Q4 2020 | +4.7% | +6.2% | +16.3% | |
| Q3 2020 | +22.0% | +18.6% | +35.0% | |
| Q2 2020 | +5.5% | +13.7% | +10.1% | |
| Q1 2020 | -3.8% | +5.6% | +30.0% | |
| Q4 2019 | +8.1% | +2.9% | +9.4% | |
| Q3 2019 | +2.3% | +0.7% | +5.9% | |
| Q2 2019 | -3.3% | +3.5% | +6.1% | |
| Q1 2019 | +3.7% | +8.3% | +6.3% | |
| Q4 2018 | -1.1% | -7.0% | -1.7% | |
| Q3 2018 | +5.8% | +10.1% | +11.0% | |
| Q2 2018 | +2.6% | +1.8% | +5.8% | |
| Q1 2018 | -21.2% | -23.3% | -19.3% | |
| Q4 2017 | -13.2% | -15.3% | -15.4% | |
| Q3 2017 | -10.5% | -9.4% | -12.6% | |
| Q2 2017 | +2.8% | -1.0% | +1.4% | |
| Q1 2017 | +5.4% | +4.7% | +4.3% | |
| Q4 2016 | +12.4% | +15.1% | +26.8% | |
| Q3 2016 | +6.0% | +9.6% | +25.2% | |
| Q2 2016 | -2.0% | — | — | |
| Q1 2016 | -2.0% | — | — | |
| Q4 2015 | +9.7% | — | — | |
| Q3 2015 | -3.5% | — | — | |
| Q2 2015 | -2.6% | — | — | |
| Q1 2015 | +0.3% | — | — | |
| Q4 2014 | -0.4% | — | — | |
| Q3 2014 | +2.7% | — | — | |
| Q2 2014 | -2.9% | — | — | |
| Q1 2014 | +4.5% | — | — | |
| Q4 2013 | +0.9% | — | — | |
| Q3 2013 | +0.1% | — | — | |
| Q2 2013 | +0.2% | — | — | |
| Q1 2013 | -1.5% | — | — | |
| Q4 2012 | -2.5% | — | — | |
| Q4 2011 | -2.5% | — | — | |
| Q3 2012 | -0.6% | — | — | |
| Q2 2012 | +5.4% | — | — | |
| Q1 2012 | +1.5% | — | — | |
| Q3 2011 | +4.7% | — | — | |
| Q2 2011 | +2.1% | — | — | |
| Q1 2011 | -1.0% | — | — | |
| Q4 2010 | -1.8% | — | — | |
| Q4 2009 | -1.8% | — | — | |
| Q3 2010 | +0.8% | — | — | |
| Q2 2010 | -4.8% | — | — | |
| Q1 2009 | +2.9% | — | — | |
| Q1 2010 | +2.1% | — | — | |
| Q4 2007 | -0.5% | — | — | |
| Q3 2008 | -5.4% | — | — | |
| Q3 2009 | -5.4% | — | — | |
| Q2 2009 | +8.0% | — | — | |
| Q2 2008 | +8.0% | — | — | |
| Q4 2008 | +8.0% | — | — |
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