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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
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
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.
- Commercial aerospace has less visibility
- The outlook is subject to the impact of the COVID-19 pandemic on Howmet Aerospace’s business, results of operations, and financial condition
- The outlook is subject to unfavorable changes in the markets served by Howmet Aerospace