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Dec 31, 2022
Howmet Aerospace Q4 2022 Earnings Report
Howmet Aerospace reported strong Q4 2022 results with revenue growth driven by commercial aerospace and increased profitability.
Key Takeaways
Howmet Aerospace reported Q4 2022 revenues of $1.5 billion, up 18% year-over-year, driven by growth in the commercial aerospace market. Net income was $111 million, or $0.26 per share, compared to $77 million, or $0.18 per share, in Q4 2021. Net income excluding special items was $160 million, or $0.38 per share, versus $130 million, or $0.30 per share, in Q4 2021.
Revenue increased by 18% year over year to $1.5 billion, driven by Commercial Aerospace growth of 29%.
Net income reached $111 million, or $0.26 per share, compared to $77 million, or $0.18 per share in Q4 2021.
Adjusted EBITDA excluding special items rose by 14% year over year to $336 million.
The company generated $410 million in free cash flow.
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 provided guidance for Q1 2023 and Full Year 2023. The company expects higher Adjusted EBITDA excluding special items to drive growth in Adjusted Earnings per Share excluding special items in full year 2023.
Positive Outlook
- Revenue $1.475B - $1.525B (Q1 2023) and $6.000B - $6.200B (FY 2023)
- Adj. EBITDA $325M - $345M (Q1 2023) and $1.335B - $1.415B (FY 2023)
- Adj. EBITDA Margin 22.0% - 22.6% (Q1 2023) and 22.3% - 22.8% (FY 2023)
- Adj. Earnings per Share $0.35 - $0.39 (Q1 2023) and $1.53 - $1.67 (FY 2023)
- Free Cash Flow $580M - $650M (FY 2023)
Challenges Ahead
- Reconciliations of the forward-looking non-GAAP measures to the most directly comparable GAAP measures are not available without unreasonable efforts.
- Reconciliations are not available due to the variability and complexity of the charges and other components excluded from the non-GAAP measures.
- There is inherent variability already included in the GAAP measures, including, but not limited to, price/mix and volume.
- Full Year 2023 Guidance assumes the following aircraft build rates: Boeing 737-MAX: approximately 30 builds per month on average
- Full Year 2023 Guidance assumes the following aircraft build rates: Airbus A320 family: approximately 53-54 builds per month on average
Revenue & Expenses
Visualization of income flow from segment revenue to net income