Howmet Aerospace(HWM) - 2024 Q2 - Quarterly Results

Revenue and Income - Revenue of $1.88 billion, up 14% year over year, primarily driven by a 27% increase in commercial aerospace[10] - Net income of $266 million, or $0.65 per share, compared to $193 million, or $0.46 per share in Q2 2023[6] - Total sales for the quarter ended June 30, 2024, reached $1,880 million, an increase of 14.1% from $1,648 million in the same quarter of 2023[58] - Net income for Q2 2024 was $266 million, compared to $193 million in Q2 2023, reflecting a 37.9% year-over-year growth[79] - Diluted earnings per share (EPS) for Q2 2024 increased to $0.65, up from $0.46 in Q2 2023, marking a 41.3% rise[79] Adjusted EBITDA and Margins - Adjusted EBITDA excluding special items of $483 million, up 31% year over year, with an adjusted EBITDA margin of 25.7%[7] - Adjusted EBITDA for Q2 2024 was $489 million, compared to $355 million in Q2 2023, indicating a 37.6% increase[79] - Adjusted EBITDA margin excluding special items was 25.7% for the quarter ended June 30, 2024, compared to 22.3% for the same quarter in 2023[54] - Operating income margin of 21.2%, up approximately 390 basis points year over year[6] - Operating income margin improved to 21.2% in Q2 2024, up from 17.3% in Q2 2023[79] Cash Flow and Capital Expenditures - Free cash flow generated was $342 million in Q2 2024[7] - Free cash flow for the six months ended June 30, 2024, was $437 million, compared to $574 million for the same period in 2023, reflecting a decrease[48] - Cash provided from operations for the six months ended June 30, 2024, was $574 million, significantly higher than $252 million for the same period in 2023[62] - Capital expenditures for the six months ended June 30, 2024, totaled $137 million, compared to $105 million for the same period in 2023[62] Shareholder Returns - Share repurchase program increased by $2 billion to a total of $2.487 billion[5] - The company repurchased approximately $60 million of common stock in Q2 2024, retiring about 0.73 million shares[26] - A quarterly dividend of $0.08 per share was declared, marking a 60% increase from the previous dividend of $0.05 per share[28] - Quarterly dividend increased by 60% to $0.08 per share for Q3 2024[5] Segment Performance - Engine Products revenue of $933 million, up 14% year over year, with a record adjusted EBITDA of $292 million[23] - Fastening Systems revenue of $394 million, an increase of 20% year over year[14] - Engineered Structures revenue of $275 million, an increase of 38% year over year[15] - Fastening Systems third-party sales increased from $329 million in Q2 2023 to $394 million in Q2 2024, reflecting a growth of 19.8%[24] - Engineered Structures third-party sales rose from $200 million in Q2 2023 to $275 million in Q2 2024, representing a 37.5% increase[24] - Forged Wheels third-party sales decreased from $298 million in Q2 2023 to $278 million in Q2 2024, a decline of 6.7%[24] Financial Position - Total assets increased from $10,428 million as of December 31, 2023, to $10,679 million as of June 30, 2024[40] - Total liabilities rose slightly from $6,391 million at the end of 2023 to $6,402 million by mid-2024[40] Future Projections - The company expects revenue for 2024 to range from $7.400 billion to $7.480 billion, with Adjusted EBITDA projected between $1.855 billion and $1.875 billion[30] - The company anticipates revenue for Q3 2024 to be between $1.845 billion and $1.865 billion[89] - Adjusted earnings per share for Q3 2024 are projected to be between $0.63 and $0.65[89]