Howmet Aerospace(HWM) - 2024 Q4 - Annual Report

Financial Performance - Howmet Aerospace reported sales of $7,430 million for the year ended December 31, 2024, representing a 11.9$6,640 million in 2023[282]. - The net income for 2024 was $1,155 million, up 51.1$765 million in 2023[282]. - Operating income increased to $1,633 million in 2024, a 35.8$1,203 million in 2023[282]. - Basic earnings per share rose to $2.83 in 2024, reflecting a 53.0$1.85 in 2023[282]. - Comprehensive income for 2024 was $1,107 million, compared to$776 million in 2023, reflecting a 42.5% increase[286]. - Total sales for 2024 reached $7,448 million, an increase from$6,656 million in 2023, representing a growth of approximately 11.9%[340]. - Segment Adjusted EBITDA for 2024 was $2,009 million, up from$1,587 million in 2023, indicating a year-over-year increase of about 26.5%[343]. - The total income before income taxes for 2024 was $1.383 billion, an increase from$975 million in 2023[384]. Assets and Liabilities - Total assets rose to $10,519 million in 2024, up from$10,428 million in 2023, indicating a growth of 0.9%[288]. - Long-term debt decreased to $3,309 million in 2024 from$3,500 million in 2023, a reduction of 5.5%[288]. - The company’s total property, plant, and equipment, net, increased to $2,386 million as of December 31, 2024, from$2,328 million in 2023[423]. - Total inventories as of December 31, 2024, were $1,840 million, an increase from$1,765 million in 2023, representing a 4.25% growth[422]. Cash Flow and Expenditures - Cash provided from operations significantly increased to $1,298 million in 2024, compared to$901 million in 2023, marking a 43.9% rise[291]. - Capital expenditures for 2024 were $321 million, up from$219 million in 2023, representing a 46.5% increase[291]. - The company repurchased $504 million of common stock in 2024, compared to$251 million in 2023, indicating a significant increase in share buybacks[293]. Taxation - Howmet's provision for income taxes was $228 million in 2024, up from$210 million in 2023, reflecting higher income levels[282]. - Howmet's effective tax rate for 2024 was 16.5%, down from 21.5% in 2023[386]. - Howmet recorded a discrete tax benefit of 42 million for prior year federal R&D credits in 2024[386]. Pension and Benefits - The projected benefit obligation for pension plans is 1,496 million, down from $1,592 million in 2023, reflecting a decrease of approximately 6$886 million in 2024 from $925 million in 2023, a decline of about 4.2$79 million in 2024, up from $36 million in 2023[381]. Shareholder Information - Net income attributable to common shareholders for 2024 was$1,155 million, a 51% increase from $765 million in 2023[413]. - As of December 31, 2024, there were 405,431,361 shares of common stock outstanding, down from 409,914,461 shares in 2023[399]. - Howmet's share repurchase total for 2024 was$500 million, with 5,770,512 shares repurchased at an average price of $86.65 per share[402]. Market and Revenue Sources - The company derived approximately 52$182 million in 2024 from $218 million in 2023, indicating improved financial management[282]. - The Company completed the early redemption of approximately$577 million of 6.875% Notes due May 2025, funded by the issuance of 4.850% Notes due October 2031[430]. Internal Controls and Compliance - Howmet maintained effective internal control over financial reporting as of December 31, 2024, as confirmed by independent auditors[270]. - The company does not have any variable interest entities requiring consolidation[299].