NYSE$HWM

Howmet Aerospace Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported an 11% year-over-year increase in revenue, driven by growth in the commercial aerospace market, and a record third quarter free cash flow.

Howmet Aerospace reported strong Q3 2024 results with revenue up 11% year-over-year to $1.84 billion and net income of $332 million. The company saw significant growth in the commercial aerospace market, which drove adjusted EBITDA up 27% year-over-year. They also reduced debt and repurchased common stock.

  • Revenue increased by 11% year-over-year, primarily driven by growth in the commercial aerospace market.
  • Net income was reported at $332 million, or $0.81 per share, compared to $188 million, or $0.45 per share, in Q3 2023.
  • Adjusted EBITDA grew 27% year-over-year, with margins up approximately 350 basis points to 26.5%.
  • The company repurchased $100 million of common stock in Q3 2024 and an additional $90 million in October 2024.

Headline financials

Total Revenue

$1.84B

Previous: $1.66B+10.7%
EPS

$0.81

Previous: $0.46+76.1%
Adjusted EBITDA

$487M

No prior period
Adjusted EBITDA Margin

26.5%

Previous: 23.0%+15.2%
Capital Expenditures

-$219M

Previous: -$59M-271.2%
Free Cash Flow

$113M

Previous: $129M-12.4%
Net Income

$332M

Previous: $188M+76.6%
Operating Income

$421M

Previous: $307M+37.1%
Gross Profit

-$1.25B

Previous: -$1.19B-5.4%
Cash & Equivalents

$475M

Previous: $424M+12.0%
Total Assets

$10.6B

Previous: $10.2B+3.9%

Revenue & EPS history

Howmet Aerospace · Revenue · Quarterly

$1.84B

Q3 2024+10.7%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Howmet Aerospace · $1.66B total across 4 segments · Q3 2023

  • Engine Products
    $798M+16.8%
  • Fastening Systems
    $348M+19.6%
  • Forged Wheels
    $285M+7.1%
  • Engineered Structures
    $227M+17.6%

Forward guidance

The demand outlook for commercial aerospace remains robust, driven by healthy air traffic growth. The under-production of aircraft in recent years has resulted in a very large order backlog which, combined with the significant needs for additional engine spare parts, is supportive of future revenue growth. The 2025 outlook envisions total revenue growth of approximately 7.5% year over year.

Tailwinds

  • Demand outlook for commercial aerospace remains robust.
  • Healthy air traffic growth.
  • Large order backlog due to under-production of aircraft in recent years.
  • Significant needs for additional engine spare parts.
  • Expect above-trend growth in commercial aerospace to continue in 2025.

Headwinds

  • Cautious approach to the assumed pace of new aircraft builds.
  • Commercial transportation end market will remain soft until the second half 2025.
  • Weaker Europe market conditions impacting Forged Wheels.
  • Actions which restricted volumes shipped to the Boeing Company
  • Reconciliations of the forward-looking non-GAAP measures to the most directly comparable GAAP measures, as well as the directly comparable GAAP measures, are not available without unreasonable efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP measures

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 Q3 2024

Historical avgQ3 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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