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Sep 30, 2024
Howmet Aerospace Q3 2024 Earnings Report
Reported an 11% year-over-year increase in revenue, driven by growth in the commercial aerospace market, and a record third quarter free cash flow.
Key Takeaways
Howmet Aerospace reported strong Q3 2024 results with revenue up 11% year-over-year to $1.84 billion and net income of $332 million. The company saw significant growth in the commercial aerospace market, which drove adjusted EBITDA up 27% year-over-year. They also reduced debt and repurchased common stock.
Revenue increased by 11% year-over-year, primarily driven by growth in the commercial aerospace market.
Net income was reported at $332 million, or $0.81 per share, compared to $188 million, or $0.45 per share, in Q3 2023.
Adjusted EBITDA grew 27% year-over-year, with margins up approximately 350 basis points to 26.5%.
The company repurchased $100 million of common stock in Q3 2024 and an additional $90 million in October 2024.
Revenue by Segment
Forward Guidance
The demand outlook for commercial aerospace remains robust, driven by healthy air traffic growth. The under-production of aircraft in recent years has resulted in a very large order backlog which, combined with the significant needs for additional engine spare parts, is supportive of future revenue growth. The 2025 outlook envisions total revenue growth of approximately 7.5% year over year.
Positive Outlook
- Demand outlook for commercial aerospace remains robust.
- Healthy air traffic growth.
- Large order backlog due to under-production of aircraft in recent years.
- Significant needs for additional engine spare parts.
- Expect above-trend growth in commercial aerospace to continue in 2025.
Challenges Ahead
- Cautious approach to the assumed pace of new aircraft builds.
- Commercial transportation end market will remain soft until the second half 2025.
- Weaker Europe market conditions impacting Forged Wheels.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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