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Sep 30, 2022
Howmet Aerospace Q3 2022 Earnings Report
Howmet Aerospace's third quarter earnings increased due to growth in commercial aerospace market and share repurchases
Key Takeaways
Howmet Aerospace reported Q3 2022 revenues of $1.43 billion, up 12% year over year, driven by growth in the commercial aerospace market. Net income was $80 million, or $0.19 per share, compared to $27 million, or $0.06 per share, in Q3 2021. Net income excluding special items was $152 million, or $0.36 per share, versus $120 million, or $0.27 per share, in Q3 2021.
Revenue of $1.43 billion, up 12% year over year, driven by Commercial Aerospace, up 23% YoY
Net income of $80 million, or $0.19 per share, versus $27 million, or $0.06 per share, in the third quarter 2021
Net income excluding special items of $152 million, or $0.36 per share, versus $120 million, or $0.27 per share, in the third quarter 2021
Adjusted EBITDA excluding special items of $323 million, up 11% year over year
Howmet Aerospace
Howmet Aerospace
Howmet Aerospace Revenue by Segment
Revenue by Segment
Engine Products Revenue
CapyFin.comFastening Systems Revenue
CapyFin.comEngineered Structures Revenue
CapyFin.comForged Wheels Revenue
CapyFin.com Forward Guidance
The company expects 2023 revenue growth versus 2022 to be up approximately 10%, plus or minus 2%.
Positive Outlook
- Expect commercial aerospace end market to grow at above-trend rates for the next several years.
- Defense aerospace market should return to growth starting in the middle of 2023.
- Company's balance sheet remains strong.
- Company is positioned to continue generating strong cash flows ahead.
- Company doubled the quarterly dividend on common stock to $0.04 per share for the fourth quarter 2022.
Challenges Ahead
- Cash flows were impacted as Howmet Aerospace carried higher inventory due to customer schedule rebalances.
- Customer schedule rebalances are expected to persist in the fourth quarter.
- Adjusted EBITDA margin, excluding special items, was down approximately 30 basis points year over year at 22.5% while passing through approximately $70 million of additional material costs year over year.
- Wheels segment was impacted by higher aluminum material costs and higher European energy costs.
- Wheels segment was unfavorably impacted by foreign currency movements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income