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Dec 31, 2023
Howmet Aerospace Q4 2023 Earnings Report
Howmet Aerospace reported strong Q4 2023 results, driven by commercial aerospace growth and strategic financial actions.
Key Takeaways
Howmet Aerospace reported Q4 2023 revenue of $1.7 billion, a 14% increase year-over-year, driven by a 22% increase in commercial aerospace. Net income was $236 million, or $0.57 per share, compared to $111 million, or $0.26 per share, in Q4 2022. The company generated $403 million in free cash flow and completed debt actions reducing outstanding notes.
Revenue reached $1.7 billion, up 14% year-over-year, driven by commercial aerospace growth.
Net income was $236 million, with earnings per share at $0.57.
Adjusted EPS excluding special items was $0.53, a 39% increase year-over-year.
Generated $403 million of 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 anticipates revenue growth of approximately 7% in FY 2024.
Positive Outlook
- Strong outlook for commercial aerospace, supported by record backlogs at aircraft OEMs.
- Accelerating spares demand due to increased service requirements of newer, more fuel-efficient aircraft engines.
- Expect above-trend growth to continue in full year 2024.
- Expect healthy growth in 2024 in our defense aerospace and industrial end markets.
- Balance sheet has never been stronger, with solid cash generation.
Challenges Ahead
- Cautious view until we see sustained achievement of build rate increases at aircraft OEMs.
- Softening leading indicators warrant a cautious view in commercial transportation.
- Expect a downcycle to be confined to 2024 in commercial transportation.
- There can be no assurances that additional Special items will not occur in future periods.
- Reconciliations of the forward-looking non-GAAP measures to the most directly comparable GAAP measures are not available without unreasonable efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP measures
Revenue & Expenses
Visualization of income flow from segment revenue to net income