On November 6, 2024, Howmet Aerospace Inc (HWM, Financial) released its 8-K filing reporting robust third-quarter results for 2024. The company, a leading provider of engineered solutions for aerospace and transportation industries, reported a significant year-over-year revenue increase of 11%, reaching $1.84 billion. This growth was primarily fueled by a 17% surge in the commercial aerospace market, despite a 12% decline in the commercial transportation sector.
Financial Performance and Challenges
Howmet Aerospace Inc (HWM, Financial) reported a net income of $332 million, or $0.81 per share, for the third quarter of 2024, compared to $188 million, or $0.45 per share, in the same period last year. The company's operating income rose by 37% to $421 million, with an operating income margin of 22.9%, up by approximately 440 basis points year over year. These results underscore the company's ability to navigate challenges such as restricted shipments to Boeing and weaker market conditions in Europe affecting Forged Wheels.
Key Financial Achievements
The company's adjusted net income, excluding special items, was $290 million, or $0.71 per share, surpassing the analyst estimate of $0.60 per share. Adjusted EBITDA also saw a 27% increase year over year, reaching $487 million, with a margin improvement of 350 basis points to 26.5%. These achievements highlight Howmet Aerospace Inc (HWM, Financial)'s strong operational performance and its strategic focus on high-margin segments.
Segment Performance
| Segment | Revenue (Q3 2024) | Year-over-Year Change | Adjusted EBITDA Margin |
|---|---|---|---|
| Engine Products | $945 million | 18% increase | 32.5% |
| Fastening Systems | $392 million | 13% increase | 26.0% |
| Engineered Structures | $253 million | 11% increase | 15.0% |
| Forged Wheels | $245 million | 14% decrease | 26.1% |
Analysis and Outlook
Howmet Aerospace Inc (HWM, Financial)'s performance in the third quarter of 2024 reflects its strategic positioning in the aerospace market, with significant growth in its Engine Products and Fastening Systems segments. The company's proactive measures, such as debt reduction and stock repurchases, further strengthen its financial position. The outlook for 2025 remains positive, with anticipated revenue growth of approximately 7.5% year over year, driven by a robust demand in the commercial aerospace sector.
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant stated, “The Howmet team delivered a healthy set of results in the third quarter 2024. The results exceeded the high end of guidance for Adjusted EBITDA*, Adjusted EBITDA margin* and Adjusted earnings per share*.”
Overall, Howmet Aerospace Inc (HWM, Financial) continues to demonstrate resilience and adaptability in a challenging market environment, positioning itself for sustained growth and value creation for its shareholders.
Explore the complete 8-K earnings release (here) from Howmet Aerospace Inc for further details.
