Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Howmet (HWM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question. Howmet is one of 91 companies in the Construction group. The Construction group currently sits at #4 ...

This aerospace and defense supplier continues to exceed expectations. Howmet Aerospace (HWM -0.87%) stock is up a whopping 75% in 2024 and rose 14.7% in the last week to Friday morning trading. The latest leg up is due to its impressive second-quarter earnings release earlier this week. Howmet's end markets The company generates around 52% of its sales from commercial aerospace and 16% from defense aerospace, with commercial transportation at about 18%. The remaining 14% is under the "industrial and other" ...

Investors are optimistic that the Federal Reserve could soon start its rate-cut cycle following the release of a series of positive economic data, which showed that inflation decreased over the past two months. Also, the labor market is finally showing signs of cooling, which will give the Fed further confidence to go ahead with its rate cut plans. However, the picture remains unclear, and with higher interest rates for a longer period, markets can remain volatile for a longer period. Four such stocks are H ...

The reported revenue compares to the Zacks Consensus Estimate of $1.84 billion, representing a surprise of +2.30%. The company delivered an EPS surprise of +11.67%, with the consensus EPS estimate being $0.60. Total Sales- Engine Products End Market Revenue- Aerospace- Commercial : $265 million versus $267.08 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3.9% change. Adjusted EBITDA- Forged Wheels : $40 million versus $36.64 million estimated by th ...

FORM 10-Q Commission File Number 1-3610 201 Isabella Street, Suite 200, Pittsburgh, Pennsylvania 15212-5872 (Address of principal executive offices) (Zip code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ✓ N ...

Key Takeaways Shares of Howmet Aerospace (HWM) soared Tuesday after the manufacturer of jet engine parts and aluminum wheels for heavy trucks posted better-than-expected sales and profits for the second quarter. The Boeing (BA) supplier also lifted its full-year guidance, citing strong demand trends in commercial aerospace. "The outlook for commercial aerospace continues to be robust, with strong travel demand and an aging aircraft fleet," said Howmet Executive Chairman and CEO John Plant. According to Plan ...

Howmet Aerospace Inc.'s (HWM) second-quarter 2024 adjusted earnings of 67 cents per share beat the Zacks Consensus Estimate of 60 cents. The bottom line surged 52% year over year. The Engine Products segment's revenues totaled $933 million, representing 49.6% of net revenues. On a yearover-year basis, the segment's revenues increased 14%, driven by growth in the commercial aerospace, defense aerospace, industrial gas turbine and oil & gas markets. The Zacks Consensus Estimate for Engine Products revenues wa ...

Financial Data and Key Metrics Changes - EBITDA reached $483 million with a margin of 25.7%, while operating income was $414 million with a margin of 22%, marking a 38% year-over-year increase in operating income [4][8] - Earnings per share increased to $0.67, a 52% year-on-year rise, and free cash flow was strong at $342 million, resulting in a cash balance of $752 million at quarter-end [5][29] - The net debt to EBITDA ratio improved to a record low of 1.7x, indicating strong balance sheet health [10] Business Line Data and Key Metrics Changes - Engine Products revenue increased 14% to $933 million, with commercial aerospace up 18% and defense aerospace up 10% [32] - Fastening Systems revenue rose 20% year-over-year to $394 million, with commercial aerospace up 36% [33] - Engine Products and Fastening Systems both achieved record EBITDA margins, with Engine Products at 25.6% and Fastening Systems at 14.5% [12][34] Market Data and Key Metrics Changes - Commercial aerospace revenue grew 27% year-over-year, continuing a strong trend from previous quarters [23][27] - Defense aerospace revenue was up 11%, driven by fighter programs and engine spares demand [7] - Commercial transportation market weakened with a 4% revenue decline, although the company gained market share with its fuel-efficient aluminum wheels [7] Company Strategy and Development Direction - The company plans to increase capital expenditures by $30 million, bringing the total for 2024 to $320 million to support new capacity growth in the engines business [6][18] - Howmet is positioned as the largest supplier of turbine blades in the IGT market, with plans to add further production capacity in 2025 [17] - The company is focused on automation and technology improvements to enhance production efficiency and meet customer demands [70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in free cash flow and raised revenue guidance for the year to $7.44 billion, reflecting a $140 million increase from prior guidance [60] - The outlook for defense remains strong with double-digit growth expected, particularly in engine spares for the F-35 [57] - Management noted that while demand is robust, sales are constrained by aircraft manufacturers' ability to build and deliver consistently [56] Other Important Information - The company repurchased $60 million in common stock and increased its share buyback authorization to approximately $2.5 billion [31][39] - A dividend increase of 60% to $0.08 per share was announced, effective August [39] Q&A Session Summary Question: Issues with Airbus and LEAP-1A engine deliveries - Management indicated that they have not faced delivery issues and see potential for increased market share due to constraints faced by others [42][43] Question: Trajectory of the 787 program - Management noted that deliveries are in line with guidance, despite some European suppliers cutting back [49] Question: Incremental margins and future guidance - Management stated that they expect incremental margins to be over 40% for the remainder of the year, influenced by seasonality and market conditions [74] Question: Excess inventory and market outlook - Management reported no significant excess inventory but acknowledged some short-term adjustments due to production constraints [120][143]

16 Effective tax rate, Operational tax Operational tax Special items(1)(2) Reconciliation of Operational Tax Rate Revenue / Profit Q2 2024 ▪ Adj EBITDA1 of $483M, up 31% YoY ▪ Adj EBITDA Margin1 of 25.7%, up ~340 bps YoY Cash Generation / Deployment Q2 2024 Guidance Expectations ▪ Revenue of ~$1.88B, up 14% YoY, driven by Commercial Aerospace up 27% ▪ Record Q2 Free Cash Flow3 of $342M ▪ Repurchased $60M of Common Stock in Q2; $210M at ~$71 Avg Price per Share YTD ($ in millions) $20M $30M $33M Q2 2023 Q3 2 ...

Howmet is a relatively new public company with a long history. The company is a manufacturer of components for aircraft and jet engines as well as aluminum wheels for heavy trucks. It was forged together by Alcoa 20 years ago, only to be spun out first as part of Arconic and then as Howmet. Investors are buying in, sending shares of Howmet up 14% as of 10:15 a.m. ET. The company earned $0.67 per share on revenue of $1.88 billion in the second quarter, topping Wall Street's $0.60 per share on sales of $1.84 ...