Howmet (HWM) closed the latest trading day at $112.53, indicating a +0.44% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.04% for the day. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.05%.Coming into today, shares of the maker of engineered products for the aerospace and other industries had lost 3.99% in the past month. In that same time, the Aerospace sector lost 2.41%, while the S&P 500 gained 1.05%.The upco ...

The most recent trading session ended with Howmet (HWM) standing at $109.35, reflecting a +1.54% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.09%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.1%.Shares of the maker of engineered products for the aerospace and other industries witnessed a loss of 8.81% over the previous month, trailing the performance of the Aerospace sector with its loss of 3.26% and the S&P 500's loss of 0.2 ...

Howmet Aerospace Inc. (HWM) has been benefiting from solid momentum in the commercial aerospace market, driven by robust build rates and wide-body aircraft recovery. The strength in air travel continues, with wide-body aircraft demand remaining high, supporting continued OEM spending. Pickup in air travel has been positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides, which drives sales. Revenues from the commercial aerospace market increased 17% y ...

Howmet Aerospace Inc. (NYSE:HWM) Baird 2024 Global Industrial Conference November 13, 2024 1:00 PM ET Company Participants John Plant - CEO Conference Call Participants Peter Arment - Baird Peter Arment Good afternoon, everyone. Thank you for joining us. My name is Peter Arment. I'm the Senior Aerospace Defense Analyst here at Baird. We're delighted to have with us Howmet Aerospace this afternoon. And with us from Howmet Aerospace, we have John Plant, who's the Executive Chairman and Chief Executive Officer ...

Financial Performance - Sales increased to $1,835 million in Q3 2024, up 11% from $1,658 million in Q3 2023, and $5,539 million for the nine months ended September 30, 2024, up 13% from $4,909 million in the same period last year[71]. - Net income for Q3 2024 was $332 million, or $0.81 per diluted share, compared to $188 million, or $0.45 per diluted share in Q3 2023, and $841 million, or $2.04 per diluted share for the nine months ended September 30, 2024, compared to $529 million, or $1.27 per diluted share in the same period last year[73]. - Total Segment Adjusted EBITDA increased to $511 in Q3 2024, up from $402 in Q3 2023, reflecting improved operating performance[82]. Cost Management - Cost of goods sold (COGS) as a percentage of sales decreased to 68.3% in Q3 2024 from 71.4% in Q3 2023, and to 69.1% from 72.2% for the nine months ended September 30, 2024, primarily due to higher volumes and favorable product pricing[71]. - SG&A expenses were $85 million in Q3 2024, a slight decrease from $87 million in Q3 2023, while increasing to $270 million for the nine months ended September 30, 2024, up from $250 million in the same period last year[71]. - Interest expense, net decreased to $44 million in Q3 2024, down 19% from $54 million in Q3 2023, due to early redemptions of certain notes[72]. Market Segments Performance - Segment Adjusted EBITDA for the Engine Products segment increased by $88 million, or 40%, in Q3 2024 compared to Q3 2023, driven by growth in commercial aerospace and defense aerospace markets[75]. - Fastening Systems segment third-party sales increased by $44, or 13%, in Q3 2024 compared to Q3 2023, primarily due to growth in the commercial aerospace market[77]. - Engineered Structures segment third-party sales increased by $156, or 25%, for the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to growth in commercial and defense aerospace markets[78]. - Forged Wheels segment third-party sales decreased by $40, or 14%, in Q3 2024 compared to Q3 2023, primarily due to lower volumes in the commercial transportation market[80]. Tax and Headcount - The estimated annual effective tax rate for Q3 2024 was 20.9%, down from 23.0% in Q3 2023, primarily due to net benefits related to U.S. federal and state R&D credits[72]. - The company absorbed approximately 235 net headcount in the Engine Products segment in Q3 2024 to support expected revenue increases[75]. Cash Flow and Financing - Cash provided from operations was $818 million for the nine months ended September 30, 2024, compared to $443 million for the same period in 2023, an increase of $375 million[84]. - Cash used for financing activities increased by $96 million, or 15%, in the nine months ended September 30, 2024, primarily due to long-term debt payments and increased common stock repurchases[85]. - Cash used for investing activities increased by $46 million, or 28%, to $209 million in the nine months ended September 30, 2024, primarily due to capital expenditures related to capacity expansion projects[88]. Strategic Initiatives - Howmet acquired Camcraft LTD for approximately $5 million in October 2024, enhancing its Engine Products segment capabilities[76]. - The company has established a commercial paper program allowing for issuance up to $1 billion for general corporate purposes[86]. - The company's effective shelf registration statement allows for opportunistic issuance of new debt securities to refinance existing indebtedness[86]. Credit Ratings and Outlook - Moody's upgraded Howmet's short-term debt rating from P-3 to P-2 and long-term debt rating from Baa3 to Baa1 on August 6, 2024, citing improved financial leverage and market demand[87]. - The three major credit rating agencies have rated Howmet's debt with investment grade ratings, reflecting stable to positive outlooks[87]. - The company anticipates continued demand in the commercial aerospace market, which supports its financial outlook[87]. Risk Management - There have been no material changes in risk factors since the last annual report, indicating stability in the company's risk environment[93]. - The company reported no changes in internal control over financial reporting during the third quarter of 2024[91].

Financial Data and Key Metrics Changes - Year-over-year revenue growth was 11%, building on the 14% growth in the first half [8][14] - EBITDA reached a record $487 million with a margin of 26.5%, while operating income was $419 million with a margin of 22.8%, up 33% year-over-year [9][11] - Earnings per share increased by 54% year-over-year to $0.71, and free cash flow was strong at $162 million, improving year-to-date free cash flow to approximately $600 million [10][11] Business Line Data and Key Metrics Changes - Commercial aerospace revenue grew by 17%, continuing a strong trend, while defense aerospace was up 15% [15] - Engine Products revenue increased by 18% year-over-year to $945 million, with EBITDA up 40% to a record $307 million [28][29] - Fastening Systems revenue increased by 13% year-over-year to $392 million, with EBITDA up 34% [30][31] - Engineered Structures revenue increased by 11% year-over-year to $253 million, with EBITDA up 27% [32] - Forged Wheels revenue decreased by 14% year-over-year due to a slowdown in the commercial transportation market [33] Market Data and Key Metrics Changes - Commercial transportation market revenue was down 12%, led by a slowdown in Europe [16] - Industrial and other markets were up 17%, driven by oil and gas, which was up 26% [16] - North America revenues for wheels were down by 10% [13] Company Strategy and Development Direction - The company expects commercial aerospace growth to be about 12% in 2025, with total revenue growth of about 7.5% [39][48] - The strategic positioning of the company is improving, with aftermarket exposure rising from 11% in 2019 to 17% in 2024, expected to exceed 20% in the coming years [58][60] - The company is considering potential acquisitions while maintaining a disciplined approach to capital deployment [106][109] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for air travel and aircraft production, despite some uncertainties regarding Boeing's production rates [36][39] - The company anticipates continued strong performance in commercial aerospace and defense aerospace, with expectations for increased spares demand [66][88] - Management highlighted the importance of addressing supply chain constraints and the potential for improved performance in the wider supply chain [84] Other Important Information - The company completed a study resulting in a favorable R&D tax credit of approximately $44 million, reflecting continued investment in innovation [34] - The balance sheet remains strong, with a cash balance of $475 million and a record low net debt to EBITDA of 1.6 times [19][20] Q&A Session Summary Question: Thoughts on commercial build rates for 2025 - Management indicated uncertainty regarding specific build rates for Boeing and Airbus, suggesting a cautious approach to projections [51][52] Question: Aerospace aftermarket revenues and risk of destocking - Management expects spares revenue to reach about $1.25 billion, with aftermarket exposure increasing significantly [57][59] Question: Production capacity planning for new blades - Management confirmed ongoing investments in engine production capacity to meet increasing demand for both OE production and spares [70][74] Question: Incremental margins in Q4 - Management refrained from providing specific margin guidance for next year, citing uncertainty and the need for increased labor training [78][80] Question: Expectations for aero revenue growth in 2026 - Management expressed optimism for further improvements in aircraft production and spares demand, anticipating a positive trajectory for 2026 [88][89] Question: Capital deployment focus and M&A opportunities - Management is open to considering acquisitions but emphasizes a disciplined approach to capital deployment, including stock buybacks [106][109]

Core Insights - Howmet (HWM) reported revenue of $1.84 billion for Q3 2024, a year-over-year increase of 10.7% [1] - The EPS for the quarter was $0.71, up from $0.46 a year ago, exceeding the consensus estimate of $0.65 by 9.23% [1] - Revenue fell slightly short of the Zacks Consensus Estimate of $1.85 billion, resulting in a surprise of -1.03% [1] Financial Performance Metrics - Adjusted EBITDA for Engine Products was $307 million, surpassing the average estimate of $291.12 million [3] - Adjusted EBITDA for Forged Wheels was $64 million, slightly below the average estimate of $66.07 million [3] - Adjusted EBITDA for Engineered Structures was $38 million, compared to the average estimate of $39 million [3] - Adjusted EBITDA for Fastening Systems was $102 million, exceeding the average estimate of $98.18 million [3] Stock Performance - Howmet's shares have returned -0.8% over the past month, while the Zacks S&P 500 composite increased by 0.7% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [4]

Third Quarter 2024 Earnings Call John Plant: Executive Chairman and Chief Executive Officer Ken Giacobbe: EVP and Chief Financial Officer November 6, 2024 Important Information Forward–Looking Statements This presentation contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "anticipates," "believes," "coul ...

Howmet (HWM) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.65 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.23%. A quarter ago, it was expected that this maker of engineered products for the aerospace and other industries would post earnings of $0.60 per share when it actually produced earnings of $0.67, delivering a surprise of ...

Core Viewpoint - Howmet Aerospace Inc. is expected to report strong third-quarter 2024 earnings, with a consensus estimate indicating significant revenue and earnings growth compared to the previous year [1][7]. Revenue Performance - The Engine products segment is projected to generate revenues of $945 million, reflecting a 17.9% increase from the third quarter of 2023, driven by strong demand in commercial aerospace and defense markets [3]. - The Fastening Systems segment is estimated to achieve revenues of $386 million, marking a 10.9% rise year-over-year, supported by growth in the commercial aerospace market [4]. - The Engineered Structures segment is expected to report revenues of $270 million, indicating an 18.9% increase from the previous year, bolstered by recovery in the commercial and defense aerospace markets [5]. - Conversely, the Forged Wheels segment is anticipated to see revenues of $258 million, representing a decline of 9.5% year-over-year, attributed to softness in the commercial transportation market [6]. Overall Financial Outlook - The overall revenue estimate for Howmet Aerospace is pegged at $1.85 billion, which indicates an 11.8% increase from the same quarter last year [7]. - The consensus estimate for adjusted earnings is set at 65 cents per share, reflecting a growth of 41.3% compared to the previous year [7]. Earnings Prediction - The company has a positive Earnings ESP of +1.86%, with the Most Accurate Estimate at $1.24 per share, higher than the Zacks Consensus Estimate of $1.22, suggesting a strong likelihood of an earnings beat [9].