Financial Data and Key Metrics Changes - The company reported record revenues, EBITDA, EBITDA margin, and earnings per share for Q4 2024, with EPS at $0.74, a 40% increase year-over-year, concluding the year at $2.69, a 46% increase year-over-year [6][7] - Operating margin for Q4 was 23%, and free cash flow for the year reached a record $977 million, representing an 88% conversion of net income [7][8] - The balance sheet improved with net debt to EBITDA ratio at 1.4 times, and a 25% increase in the quarterly common stock dividend was announced [9][19] Business Line Data and Key Metrics Changes - Revenue from Engine Products increased 14% year-over-year to $972 million, with EBITDA up 30% to $302 million, resulting in an EBITDA margin of 31.1% [25][26] - Fastening Systems revenue rose 11% year-over-year to $401 million, with EBITDA increasing 39% to $111 million and an EBITDA margin of 27.7% [27][28] - Engineered Structures revenue grew 13% year-over-year to $75 million, with EBITDA up 55% to $51 million and an EBITDA margin of 18.5% [29][30] - Forged Wheels revenue decreased 12% year-over-year to $1.1 billion, but maintained a healthy EBITDA margin of 27.2% [31][32] Market Data and Key Metrics Changes - Commercial aerospace revenue was up 13% in Q4 and 20% for the full year, while defense aerospace grew 22% for the year [12][12] - Commercial transportation faced challenges, with revenues down 12% in Q4 and 7% for the full year [12] - Industrial and other markets saw an 11% increase in Q4, driven by oil and gas up 22% and general industrial up 12% [13] Company Strategy and Development Direction - The company aims to continue investing for growth, with a focus on improving profitability across segments, particularly in structures [10][11] - The outlook for 2025 includes expectations of increased demand in commercial aerospace and industrial gas turbines, with a focus on spares growth [35][44] - The company plans to maintain a strong capital allocation strategy, including share buybacks and dividends, while managing debt levels [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outpacing market growth in 2025, with expectations for increased production rates from Boeing and Airbus [35][36] - The company anticipates continued strong performance in spares, with a target of 20% of total revenue in the future [39] - Management acknowledged potential headwinds from supply chain challenges and inventory levels but remains cautiously optimistic about growth [62] Other Important Information - The operational tax rate for 2024 improved to 20.5%, and the pretax return on net assets increased by 800 basis points to 41% [33][34] - The company has a strong liquidity position with a cash balance of $565 million and a $1 billion undrawn revolver [20] Q&A Session Summary Question: On fastening systems, can you talk about margin improvements? - Management noted that operational and productivity improvements have led to better margins, with expectations for continued positive mix and margin growth in the future [56][57] Question: Can you rationalize the implied guidance for margins in 2025? - Management indicated a conservative approach due to uncertainties in narrow body builds and supply chain challenges, while remaining optimistic about wide body growth [62][63] Question: What is the outlook for spares growth, particularly for CFM56? - Management believes peak demand for CFM56 has shifted to 2027, with increasing demand for MRO services and deeper overhauls expected [138]

Howmet Aerospace Inc.’s (HWM) fourth-quarter 2024 adjusted earnings of 74 cents per share beat the Zacks Consensus Estimate of 72 cents. The bottom line surged 40% year over year.Total revenues of $1.90 billion beat the consensus estimate of $1.88 billion. The top line increased 9% from the year-ago quarter. The increase was backed by strength in the company’s commercial aerospace market.In 2024, HWM reported net revenues of $7.4 billion, which increased 12% year over year. The company’s adjusted earnings w ...

February 13, 2025 John Plant: Executive Chairman and Chief Executive Officer Ken Giacobbe: EVP and Chief Financial Officer Fourth Quarter and Full Year 2024 Earnings Call Important Information Forward–Looking Statements Other Information In this presentation: where values are denoted, M=USD millions and B=USD billions; YTD=year to date; YoY=year over year; QoQ=quarter over quarter; FY=full year; Q=quarter; IGT=industrial gas turbine; bps=basis points; FCF=Free Cash Flow; Free Cash Flow Conversion=Free Cash ...

Howmet (HWM) reported $1.89 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 9.2%. EPS of $0.74 for the same period compares to $0.53 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.88 billion, representing a surprise of +0.76%. The company delivered an EPS surprise of +2.78%, with the consensus EPS estimate being $0.72.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street e ...

Howmet (HWM) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.78%. A quarter ago, it was expected that this maker of engineered products for the aerospace and other industries would post earnings of $0.65 per share when it actually produced earnings of $0.71, delivering a surprise of ...

Revenue and Growth - FY 2024 revenue reached $7.4 billion, up 12% year over year, driven by a 20% increase in the commercial aerospace market[13] - Q4 2024 revenue was $1.9 billion, a 9% increase year over year, primarily due to a 13% growth in the commercial aerospace sector[7] - FY 2025 revenue growth guidance has been raised to approximately 8% year over year[17] - Sales for 2024 increased to $7,430 million, up 11.9% from $6,640 million in 2023[47] - Q4 2023 sales reached $1,731 million, with a projected increase to $1,891 million in Q4 2024, representing a growth of 9.7%[69] - The company anticipates a total sales increase from $6,640 million in 2023 to $7,430 million in 2024, reflecting a growth of 11.9%[69] Net Income and Earnings - Net income for FY 2024 was $1.2 billion, or $2.81 per share, compared to $765 million, or $1.83 per share, in FY 2023[14] - Net income rose to $1,155 million in 2024, a 51.0% increase compared to $765 million in 2023[47] - Basic earnings per share (EPS) increased to $2.83 in 2024, up 53.0% from $1.85 in 2023[47] - Net income for Q4 2024 is expected to reach $314 million, with a total of $1,155 million for the year[56] - Total net income excluding special items for the year ended December 31, 2023, was $766 million, with a diluted EPS of $1.84[60] Cash Flow and Capital Management - Free cash flow for FY 2024 was $977 million, representing an 88% conversion of net income[17] - The company repurchased $190 million of common stock in Q4 2024, totaling $500 million for the full year 2024, retiring approximately 5.8 million shares[28] - The company repurchased $500 million of common stock in 2024, up from $250 million in 2023[51] - Free cash flow for Q4 2024 is projected to be $378 million, contributing to a total of $977 million for the year[56] - Free cash flow conversion as a percentage of net income for 2024 is projected at 85%[56] Segment Performance - Engine Products segment revenue for FY 2024 was $3.7 billion, up 14% year over year, with an adjusted EBITDA margin of 30.8%[20] - Fastening Systems segment revenue for FY 2024 was $1.6 billion, up 17% year over year, with an adjusted EBITDA margin of 25.8%[22] - Forged Wheels reported Q4 2024 revenue of $243 million, a 12% decrease year over year due to lower volumes in the commercial transportation market[25] - Full year 2024 revenue was $1.1 billion, down 8% year over year, attributed to lower volumes and inflationary cost pressures[27] - Total Segment Adjusted EBITDA for 2023 was $1,587 million, with a projected increase to $2,009 million in 2024[54] Expenses and Investments - Adjusted EBITDA for FY 2024 was $1.9 billion, up 27% year over year, with an adjusted EBITDA margin of 25.8%[16] - Capital expenditures for 2024 were $321 million, compared to $219 million in 2023, indicating a 46.5% increase[51] - Research and development expenses slightly decreased to $33 million in 2024 from $36 million in 2023[47] Debt and Financial Obligations - In 2024, the company reduced gross debt by $365 million, resulting in annualized interest expense savings of approximately $37 million[32] - Long-term debt decreased to $3,309 million in 2024 from $3,500 million in 2023, a reduction of 5.5%[50] Dividends and Shareholder Returns - The quarterly dividend was increased by 25% to $0.10 per share starting Q1 2025[12] - The quarterly common stock dividend was increased by 25% to $0.10 per share for Q1 2025, following a dividend of $0.08 per share in Q4 2024[33] Future Outlook and Guidance - Q1 2025 guidance for revenue ranges from $1.925 billion to $1.945 billion, with Adjusted EBITDA guidance between $515 million and $525 million[35] - The company plans to hold its quarterly conference call on February 13, 2025, to discuss financial performance and future outlook[36] - The company anticipates continued growth in sales and operating income, driven by market expansion and new product developments[68] Operational Performance - The operating income margin improved from 18.8% in Q4 2023 to 23.5% in Q4 2024[68] - Adjusted operating income margin excluding special items improved from 19.1% in Q4 2023 to 23.0% in Q4 2024[69] - The overall operating income margin is expected to improve from 18.1% in the year ended December 2023 to 22.0% in the year ended December 2024[69] Special Items and Adjustments - Pre-tax special items for YTD 2023 included restructuring charges of $23 million and costs associated with closures of $13 million[66] - The company reported a net benefit of $44 million related to additional U.S. federal and state R&D credits claimed for prior years in YTD 2024[67] - Future periods may still incur additional special items, but management believes it is appropriate to consider both GAAP and non-GAAP measures[69]

Howmet Aerospace Inc. (HWM) is scheduled to release fourth-quarter 2024 earnings on Feb. 13, before market open. The Zacks Consensus Estimate for revenues is pegged at $1.9 billion, indicating growth of 8.4% from the prior-year quarter’s figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The consensus mark for earnings is pinned at 72 cents per share, which has increased a penny in the past 30 days. The figure indicates a jump of 35.9% from the prior-year figure. HWM surpassed e ...

Wall Street analysts forecast that Howmet (HWM) will report quarterly earnings of $0.72 per share in its upcoming release, pointing to a year-over-year increase of 35.9%. It is anticipated that revenues will amount to $1.88 billion, exhibiting an increase of 8.4% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estim ...

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.I covered Howmet Aerospace Inc. PFD SER A (NYSE: HWM.PR ) in September with a buy rating. Since then, the stock price performance has not been satisfactory with the share price increasing less than 1% compared to the S&P 500 returning nearly 9%. Ev ...

Aerospace components are in high demand, setting up a positive outlook for suppliers including Howmet Aerospace (HWM -0.78%).Howmet shares climbed 15.7% in January, according to data provided by S&P Global Market Intelligence, as a number of analysts spotlighted the company among potential winners in 2025.Strong demand from multiple areasHowmet makes fasteners and other components that go into aircraft, engines, turbines, and other industrial goods, with more than half of its revenue coming from commercial ...