NYSE$HWM

Howmet Aerospace Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Howmet Aerospace reported strong Q4 2023 results, driven by commercial aerospace growth and strategic financial actions.

Howmet Aerospace reported Q4 2023 revenue of $1.7 billion, a 14% increase year-over-year, driven by a 22% increase in commercial aerospace. Net income was $236 million, or $0.57 per share, compared to $111 million, or $0.26 per share, in Q4 2022. The company generated $403 million in free cash flow and completed debt actions reducing outstanding notes.

  • Revenue reached $1.7 billion, up 14% year-over-year, driven by commercial aerospace growth.
  • Net income was $236 million, with earnings per share at $0.57.
  • Adjusted EPS excluding special items was $0.53, a 39% increase year-over-year.
  • Generated $403 million of free cash flow.

Headline financials

Total Revenue

$1.73B

Previous: $1.51B+14.4%
EPS (adj)

$0.53

Previous: $0.38+39.5%
Operating Income Margin

18.8%

No prior period
Capital Expenditures

-$55M

Previous: $45M-222.2%
Net Income

$236M

Previous: $111M+112.6%
Operating Income

$326M

Previous: $220M+48.2%
Gross Profit

$501M

Previous: $403M+24.3%
R&D Expense

$9M

No prior period
Stock-Based Comp

$11M

Previous: $11M+0.0%

Revenue & EPS history

Howmet Aerospace · Revenue · Quarterly

$1.73B

Q4 2023+14.4%vs Q4 2022
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

Howmet Aerospace anticipates revenue growth of approximately 7% in FY 2024.

Tailwinds

  • Strong outlook for commercial aerospace, supported by record backlogs at aircraft OEMs.
  • Accelerating spares demand due to increased service requirements of newer, more fuel-efficient aircraft engines.
  • Expect above-trend growth to continue in full year 2024.
  • Expect healthy growth in 2024 in our defense aerospace and industrial end markets.
  • Balance sheet has never been stronger, with solid cash generation.

Headwinds

  • Cautious view until we see sustained achievement of build rate increases at aircraft OEMs.
  • Softening leading indicators warrant a cautious view in commercial transportation.
  • Expect a downcycle to be confined to 2024 in commercial transportation.
  • There can be no assurances that additional Special items will not occur in future periods.
  • Reconciliations of the forward-looking non-GAAP measures to the most 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 Q4 2023

Historical avgQ4 2023

+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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