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Howmet Aerospace
🇺🇸 NYSE:HWM
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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

Total Revenue
$1.24B
Previous year: $3.4B
-63.6%
EPS
$0.21
Previous year: $0.53
-60.4%
Cash and Equivalents
$1.61B
Previous year: $1.65B
-2.3%

Howmet Aerospace

Howmet Aerospace

Howmet Aerospace 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.
  • 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

Company Overview

Full financial data and analysis

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