Howmet Aerospace(US:HWM)2025-02-13 22:35Financial Performance - Howmet Aerospace reported sales of $7,430 million for the year ended December 31, 2024, representing a 11.9% increase from $6,640 million in 2023[282]. - The net income for 2024 was $1,155 million, up 51.1% from $765 million in 2023[282]. - Operating income increased to $1,633 million in 2024, a 35.8% rise compared to $1,203 million in 2023[282]. - Basic earnings per share rose to $2.83 in 2024, reflecting a 53.0% increase from $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%[365]. - The fair value of plan assets for U.S. pension plans decreased to $886 million in 2024 from $925 million in 2023, a decline of about 4.2%[363]. - Cash contributions to Howmet's pension plans were $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% of its revenue from the commercial aerospace market in 2024, up from 49% in 2023[297]. - Aerospace markets (commercial and defense) contributed 68% of total revenue in 2024, up from 64% in 2023[346]. Debt Management - Interest expense decreased to $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].