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Dec 31, 2020
Howmet Aerospace Q4 2020 Earnings Report
Reported fourth quarter and full year results with revenue declining due to the impact of COVID-19 and Boeing 737 MAX production declines, but managed to surpass expectations through strong cash generation and cost management.
Key Takeaways
Howmet Aerospace reported Q4 2020 revenues of $1.2 billion, a 29% year-over-year decrease, but a 9% sequential increase from Q3 2020. The company's income from continuing operations was $106 million, or $0.24 per share, compared to $118 million, or $0.27 per share, in Q4 2019. Income from continuing operations excluding special items was $92 million, or $0.21 per share, versus $164 million, or $0.37 per share, in Q4 2019. The company ended the year with a cash balance of approximately $1.6 billion.
Revenue of $1.2 billion, down 29% year over year; up $104 million sequentially
Income from continuing operations of $106 million, or $0.24 per share
Operating income of $221 million, down 22% year over year; up $148 million sequentially
Cash balance at end of quarter increased to $1.6 billion
Revenue by Segment
Forward Guidance
Howmet Aerospace issued its full year 2021 outlook, with revenue expected to be $5.05-$5.25 billion, Adjusted EBITDA between $1.07-$1.15 billion, Earnings Per Share Excluding Special Items between $0.75-$0.89, and Adjusted Free Cash Flow between $350-$450 million.
Positive Outlook
- Revenue $5.05B-$5.25B with a baseline assumption of $5.10 billion
- Adjusted EBITDA $1.07B-$1.15B with a baseline assumption of $1.10 billion
- Earnings Per Share Excluding Special Items $0.75-$0.89 with a baseline assumption of $0.80
- Adjusted Free Cash Flow $350M-$450M with a baseline assumption of $400 million
- Defense aerospace, commercial transportation, and industrial gas turbine markets continue to be healthy and growing
Challenges Ahead
- Howmet Aerospace has not provided reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures.
- The reconciliations are not available without unreasonable efforts due to the variability and complexity with respect to the charges and other components excluded from the non-GAAP measures.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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