Howmet Aerospace Inc.


SKU: HWM-1 Category:


Howmet Aerospace Inc. managed to exceed analyst expectations in terms of revenue as well as earnings, showcasing a 16% year-over-year revenue increase and a 1% sequential growth across all markets. Commercial aerospace, marking its tenth consecutive quarter of growth, led the surge with a 23% year-over-year increase, constituting 49% of total revenue. This growth stems from elevated demand for fuel-efficient aircraft and increased spares requirements. Defense aerospace also contributed, growing by 13% year-over-year, driven by programs like the F-35. The commercial transportation sector, affecting Forged Wheels and the Fastening Systems segment, displayed a 7% year-over-year increase due to higher volumes, demonstrating resilience amid seasonal variations. Industrial and other markets experienced a 10% year-over-year growth, fueled by a 29% rise in oil and gas, 8% in general industrial, and 4% in IGT. In terms of capital allocation, Howmet maintained a balanced approach, reducing debt by $200 million in the quarter and repurchasing $25 million of common stock. Besides, Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels reported significant year-over-year revenue growth, with EBITDA margins showing improvement. The balance sheet’s continual strengthening and the focus on operational tax rate improvements further underscore Howmet’s commitment to sustained financial health.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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