Howmet Aerospace Reports Fourth Quarter and Full Year 2024 Results
FY 2024: Revenue Up
FY 2024: Approx.
Q1 2025: Increased Common Stock Dividend
FY 2025: Raising Revenue Growth Guidance to ~
Fourth Quarter 2024 GAAP Financial Results
-
Revenue of
, up$1.9 billion 9% year over year, driven by Commercial Aerospace, up13% -
Net Income of
versus$314 million in the fourth quarter 2023; Earnings Per Share of$236 million versus$0.77 in the fourth quarter 2023$0.57 -
Operating Income Margin of
23.5% -
Generated
of cash from operations;$480 million of cash used for financing activities; and$284 million of cash used for investing activities$107 million
Full Year 2024 GAAP Financial Results
-
Revenue of
, up$7.4 billion 12% year over year, driven by Commercial Aerospace, up20% -
Net Income of
versus$1.2 billion in the full year 2023; Earnings per Share of$765 million versus$2.81 in the full year 2023$1.83 -
Operating Income Margin of
22.0% -
cash from operations;$1.3 billion of cash used for financing activities; and$1.0 billion of cash used for investing activities; Free Cash Flow1$316 million 85% of Net Income
Fourth Quarter 2024 Adjusted Financial Results
-
Adj. EBITDA excluding special items of
, up$507 million 27% year over year -
Adj. EBITDA Margin excluding special items of
26.8% -
Adj. Operating Income Margin excluding special items of
23.0% -
Adj. Earnings Per Share excluding special items of
, up$0.74 40% year over year -
of Free Cash Flow$378 million
Full Year 2024 Adjusted Financial Results
-
Adj. EBITDA excluding special items of
, up$1.9 billion 27% year over year -
Adj. EBITDA Margin excluding special items of
25.8% -
Adj. Operating Income Margin excluding special items of
22.0% -
Adj. Earnings Per Share excluding special items of
, up$2.69 46% year over year -
of Free Cash Flow;$977 million 88% conversion of Net Income excluding special items
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1 Free Cash Flow = Cash provided from operations less Capital expenditures |
2025 Guidance
Q1 2025 Guidance |
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FY 2025 Guidance |
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Low |
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Baseline |
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High |
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Low |
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Baseline |
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High |
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Revenue |
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Adj. EBITDA*2 |
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Adj. EBITDA Margin*2 |
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Adj. Earnings per Share*2 |
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Free Cash Flow2 |
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Key Announcements
-
In the fourth quarter 2024, the Company repurchased
of common stock at an average price of$190 million per share, retiring approximately 1.7 million shares.$109.75 -
In January 2025, the Company repurchased an additional
of common stock. As of January 31, 2025, total share repurchase authorization available was approximately$50 million .$2.15 billion -
In the fourth quarter 2024, the Company paid down
of its US dollar-denominated Term Loan, resulting in annualized interest expense savings of approximately$60 million .$3 million -
On November 25, 2024, the Company paid a quarterly dividend of
per share on its common stock.$0.08 -
The Company increased the quarterly dividend of its common stock by
25% to per share in the first quarter 2025.$0.10
Howmet Aerospace (NYSE: HWM) today reported fourth quarter and full year 2024 results. The Company reported fourth quarter 2024 revenues of
Howmet Aerospace reported Net Income of
Fourth quarter 2024 Operating Income was
Fourth quarter 2024 Adjusted EBITDA excluding special items was
________________________ |
* Excluding special items |
2 Reconciliations of the forward-looking non-GAAP measures to the most directly comparable GAAP measures, as well as the 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 – for further detail, see “2025 Guidance” below. |
Howmet Aerospace reported full year 2024 revenues of
The Company reported Net Income of
Full year 2024 Operating Income was
Full year 2024 Adjusted EBITDA excluding special items was
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, “Howmet drove a healthy set of results to close out the year, exceeding the high end of guidance. Revenue in the fourth quarter 2024 grew
Mr. Plant continued, “Robust cash generation continues to support Howmet’s strong balance sheet as well as an attractive shareholder return profile. In full year 2024, the Company generated
“The outlook for commercial aerospace remains solid with rising OEM production rates supported by strong demand as well as continued healthy growth in engine spares demand. We expect continued growth in the defense aerospace and industrial end markets, with the commercial transportation market anticipated to be soft until the second half of 2025. The mid-point of our 2025 revenue growth guidance is increased to approximately
________________________ |
* Excluding special items |
Fourth Quarter and Full Year 2024 Segment Performance
Engine Products |
Q4 2023 |
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FY 2023 |
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Q3 2024 |
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Q4 2024 |
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FY 2024 |
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(in |
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Third-party sales |
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Inter-segment sales |
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Provision for depreciation and amortization |
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Segment Adjusted EBITDA |
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Segment Adjusted EBITDA Margin |
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Restructuring and other (credits) charges |
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Capital expenditures |
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Engine Products reported fourth quarter 2024 revenue of
Engine Products reported full year 2024 revenue of
Fastening Systems |
Q4 2023 |
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FY 2023 |
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Q3 2024 |
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Q4 2024 |
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FY 2024 |
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(in |
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Third-party sales |
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Inter-segment sales |
$— |
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$— |
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$— |
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Provision for depreciation and amortization |
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Segment Adjusted EBITDA |
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Segment Adjusted EBITDA Margin |
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Restructuring and other charges |
$— |
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Capital expenditures |
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Fastening Systems reported fourth quarter 2024 revenue of
Fastening Systems reported full year 2024 revenue of
Engineered Structures |
Q4 2023 |
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FY 2023 |
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Q3 2024 |
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Q4 2024 |
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FY 2024 |
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(in |
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Third-party sales |
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Inter-segment sales |
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Provision for depreciation and amortization |
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Segment Adjusted EBITDA |
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Segment Adjusted EBITDA Margin |
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Restructuring and other charges (credits) |
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Capital expenditures |
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Engineered Structures reported fourth quarter 2024 revenue of
Engineered Structures reported full year 2024 revenue of
Forged Wheels |
Q4 2023 |
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FY 2023 |
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Q3 2024 |
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Q4 2024 |
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FY 2024 |
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(in |
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Third-party sales |
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Provision for depreciation and amortization |
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Segment Adjusted EBITDA |
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Segment Adjusted EBITDA Margin |
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Restructuring and other charges |
$— |
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$— |
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$— |
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Capital expenditures |
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Forged Wheels reported fourth quarter 2024 revenue of
Forged Wheels reported full year 2024 revenue of
Key Announcements
Repurchased
In the fourth quarter 2024, Howmet Aerospace repurchased
In the full year 2024, the Company repurchased
In January 2025, the Company repurchased an additional
As of January 31, 2025, total share repurchase authorization available was approximately
Paid Down
In the fourth quarter 2024, the Company paid down
In the full year 2024, the Company reduced gross debt by
Quarterly Common Stock Dividend of
On November 25, 2024, the Company paid a quarterly dividend of
On January 27, 2025, the Board of Directors declared a dividend of
2025 Guidance
Q1 2025 Guidance |
FY 2025 Guidance |
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Low |
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Baseline |
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High |
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Low |
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Baseline |
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High |
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Revenue |
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Adj. EBITDA*1 |
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Adj. EBITDA Margin*1 |
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Adj. Earnings per Share*1 |
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Free Cash Flow1 |
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* Excluding Special Items |
1 Reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as the 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, such as gains or losses on sales of assets, taxes, and any future restructuring or impairment charges. In addition, there is inherent variability already included in the GAAP measures, including, but not limited to, price/mix and volume. Howmet Aerospace believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. |
Howmet Aerospace will hold its quarterly conference call at 10:00 AM Eastern Time on Thursday, February 13, 2025. The call will be webcast via www.howmet.com. The press release and presentation materials will be available at approximately 7:00 AM ET on February 13, via the “Investors” section of the Howmet Aerospace website.
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.
Forward-Looking Statements
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "anticipates", "believes", "could", “envisions”, "estimates", "expects", "forecasts", "goal", "guidance", "intends", "may", "outlook", "plans", "projects", "seeks", "sees", "should", "targets", "will", "would", or other words of similar meaning. All statements that reflect Howmet Aerospace’s expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the condition of end markets; future financial results or operating performance; future strategic actions; Howmet Aerospace's strategies, outlook, and business and financial prospects; and any future dividends, debt issuances, debt reduction and repurchases of its common stock. These statements reflect beliefs and assumptions that are based on Howmet Aerospace’s perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: (a) deterioration in global economic and financial market conditions generally; (b) unfavorable changes in the markets served by Howmet Aerospace; (c) the impact of potential cyber attacks and information technology or data security breaches; (d) the loss of significant customers or adverse changes in customers’ business or financial conditions; (e) manufacturing difficulties or other issues that impact product performance, quality or safety; (f) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (g) failure to attract and retain a qualified workforce and key personnel, labor disputes or other employee relations issues; (h) the inability to achieve revenue growth, cash generation, restructuring plans, cost reductions, improvement in profitability, or strengthening of competitiveness and operations anticipated or targeted; (I) inability to meet increased demand, production targets or commitments; (j) competition from new product offerings, disruptive technologies or other developments; (k) geopolitical, economic, and regulatory risks relating to Howmet Aerospace’s global operations, including geopolitical and diplomatic tensions, instabilities, conflicts and wars, as well as compliance with
Non-GAAP Financial Measures
Some of the information included in this release is derived from Howmet Aerospace’s consolidated financial information but is not presented in Howmet Aerospace’s financial statements prepared in accordance with accounting principles generally accepted in
Other Information
In this press release, the acronym “FY” means “full year”; “Q” means “quarter”; “YoY” means year over year; “Adj.” means adjusted; and references to performance by Howmet Aerospace or its segments as “record” mean its best result since April 1, 2020 when Howmet Aerospace Inc. (previously named Arconic Inc.) separated from Arconic Corporation.
Howmet Aerospace Inc. and subsidiaries |
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Statement of Consolidated Operations (unaudited) |
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(in |
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Quarter ended |
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December 31, 2024 |
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September 30, 2024 |
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December 31, 2023 |
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Sales |
$ |
1,891 |
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$ |
1,835 |
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$ |
1,731 |
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Cost of goods sold (exclusive of expenses below) |
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1,289 |
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1,253 |
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1,230 |
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Selling, general administrative, and other expenses |
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77 |
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85 |
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83 |
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Research and development expenses |
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7 |
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9 |
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9 |
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Provision for depreciation and amortization |
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73 |
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|
68 |
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68 |
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Restructuring and other (credits) charges |
|
— |
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(1 |
) |
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15 |
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Operating income |
|
445 |
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|
421 |
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326 |
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Loss on debt redemption |
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— |
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6 |
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1 |
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Interest expense, net |
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40 |
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44 |
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52 |
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Other expense, net |
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13 |
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17 |
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3 |
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Income before income taxes |
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392 |
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354 |
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270 |
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Provision for income taxes |
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78 |
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22 |
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34 |
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Net income |
$ |
314 |
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$ |
332 |
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$ |
236 |
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Amounts Attributable to Howmet Aerospace Common Shareholders: |
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Earnings per share - basic(1): |
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Net income per share |
$ |
0.77 |
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$ |
0.81 |
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$ |
0.57 |
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Average number of shares(2)(3) |
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406 |
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408 |
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411 |
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Earnings per share - diluted(1): |
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Net income per share |
$ |
0.77 |
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$ |
0.81 |
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$ |
0.57 |
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Average number of shares(2)(3) |
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408 |
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|
410 |
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414 |
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Common stock outstanding at the end of the period |
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405 |
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|
407 |
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|
410 |
(1) |
In order to calculate both basic and diluted earnings per share, preferred stock dividends declared of less than |
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(2) |
For the quarters presented, the difference between the diluted average number of shares and the basic average number of shares relates to share equivalents associated with outstanding restricted stock unit awards and employee stock options. |
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(3) |
As average shares outstanding are used in the calculation of both basic and diluted earnings per share, the full impact of share repurchases is not fully realized in earnings per share ("EPS") in the period of repurchase since share repurchases may occur at varying points during a period. |
Howmet Aerospace Inc. and subsidiaries |
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Statement of Consolidated Operations (unaudited) |
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(in |
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For the year ended December 31, |
2024 |
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2023 |
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Sales |
$ |
7,430 |
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$ |
6,640 |
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Cost of goods sold (exclusive of expenses below) |
|
5,119 |
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4,773 |
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Selling, general administrative, and other expenses |
|
347 |
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|
333 |
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Research and development expenses |
|
33 |
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|
36 |
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Provision for depreciation and amortization |
|
277 |
|
|
272 |
|
Restructuring and other charges |
|
21 |
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|
23 |
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Operating income |
|
1,633 |
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|
1,203 |
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Loss on debt redemption |
|
6 |
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2 |
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Interest expense, net |
|
182 |
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|
218 |
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Other expense, net |
|
62 |
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|
8 |
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Income before income taxes |
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1,383 |
|
|
975 |
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Provision for income taxes |
|
228 |
|
|
210 |
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Net income |
$ |
1,155 |
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$ |
765 |
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Amounts Attributable to Howmet Aerospace Common Shareholders: |
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Earnings per share - basic(1)(2): |
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Net income per share |
$ |
2.83 |
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$ |
1.85 |
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Average number of shares(3) |
|
408 |
|
|
412 |
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Earnings per share - diluted(1)(2): |
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Net income per share |
$ |
2.81 |
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$ |
1.83 |
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Average number of shares(3) |
|
410 |
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|
416 |
(1) |
In order to calculate both basic and diluted EPS, preferred stock dividends declared of |
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(2) |
For the years presented, the difference between the diluted average number of shares and the basic average number of shares related to share equivalents associated with outstanding awards and employee stock options. |
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(3) |
As average shares outstanding are used in the calculation of both basic and diluted earnings per share, the full impact of share repurchases is not realized in EPS in the year of repurchase for the years presented. |
Howmet Aerospace Inc. and subsidiaries |
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Consolidated Balance Sheet (unaudited) |
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(in |
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December 31, 2024 |
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December 31, 2023 |
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Assets |
|
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Current assets: |
|
|
|
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Cash and cash equivalents |
$ |
564 |
|
|
$ |
610 |
|
|
Receivables from customers, less allowances of $— in both 2024 and 2023 |
|
689 |
|
|
|
675 |
|
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Other receivables |
|
20 |
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|
|
17 |
|
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Inventories |
|
1,840 |
|
|
|
1,765 |
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Prepaid expenses and other current assets |
|
249 |
|
|
|
249 |
|
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Total current assets |
|
3,362 |
|
|
|
3,316 |
|
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Properties, plants, and equipment, net |
|
2,386 |
|
|
|
2,328 |
|
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Goodwill |
|
4,010 |
|
|
|
4,035 |
|
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Deferred income taxes |
|
35 |
|
|
|
46 |
|
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Intangibles, net |
|
475 |
|
|
|
505 |
|
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Other noncurrent assets |
|
251 |
|
|
|
198 |
|
|
Total assets |
$ |
10,519 |
|
|
$ |
10,428 |
|
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Liabilities |
|
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Current liabilities: |
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|
|
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Accounts payable, trade |
$ |
948 |
|
|
$ |
982 |
|
|
Accrued compensation and retirement costs |
|
305 |
|
|
|
263 |
|
|
Taxes, including income taxes |
|
60 |
|
|
|
68 |
|
|
Accrued interest payable |
|
59 |
|
|
|
65 |
|
|
Other current liabilities |
|
171 |
|
|
|
200 |
|
|
Short-term debt |
|
6 |
|
|
|
206 |
|
|
Total current liabilities |
|
1,549 |
|
|
|
1,784 |
|
|
Long-term debt, less amount due within one year |
|
3,309 |
|
|
|
3,500 |
|
|
Accrued pension benefits |
|
625 |
|
|
|
664 |
|
|
Accrued other postretirement benefits |
|
54 |
|
|
|
92 |
|
|
Other noncurrent liabilities and deferred credits |
|
428 |
|
|
|
351 |
|
|
Total liabilities |
|
5,965 |
|
|
|
6,391 |
|
|
|
|
|
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Equity |
|
|
|
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Howmet Aerospace shareholders’ equity: |
|
|
|
|||||
Preferred stock |
|
55 |
|
|
|
55 |
|
|
Common stock |
|
405 |
|
|
|
410 |
|
|
Additional capital |
|
3,206 |
|
|
|
3,682 |
|
|
Retained earnings |
|
2,766 |
|
|
|
1,720 |
|
|
Accumulated other comprehensive loss |
|
(1,878 |
) |
|
|
(1,830 |
) |
|
Total equity |
|
4,554 |
|
|
|
4,037 |
|
|
Total liabilities and equity |
$ |
10,519 |
|
|
$ |
10,428 |
|
Howmet Aerospace and subsidiaries |
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Statement of Consolidated Cash Flows (unaudited) |
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(in |
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Year ended December 31, |
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|
2024 |
|
2023 |
|||||
Operating activities |
|
|
|
|||||
Net income |
$ |
1,155 |
|
|
$ |
765 |
|
|
Adjustments to reconcile net income to cash provided from operations: |
|
|
|
|||||
Depreciation and amortization |
|
277 |
|
|
|
272 |
|
|
Deferred income taxes |
|
55 |
|
|
|
108 |
|
|
Restructuring and other charges |
|
21 |
|
|
|
23 |
|
|
Net realized and unrealized losses |
|
25 |
|
|
|
22 |
|
|
Net periodic pension cost |
|
40 |
|
|
|
37 |
|
|
Stock-based compensation |
|
63 |
|
|
|
50 |
|
|
Loss on debt redemption |
|
6 |
|
|
|
2 |
|
|
Other |
|
1 |
|
|
|
3 |
|
|
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: |
|
|
|
|||||
Increase in receivables |
|
(57 |
) |
|
|
(164 |
) |
|
Increase in inventories |
|
(106 |
) |
|
|
(142 |
) |
|
Increase in prepaid expenses and other current assets |
|
(14 |
) |
|
|
(24 |
) |
|
Decrease in accounts payable, trade |
|
(49 |
) |
|
|
(7 |
) |
|
Increase in accrued expenses |
|
5 |
|
|
|
37 |
|
|
Decrease in taxes, including income taxes |
|
(14 |
) |
|
|
(7 |
) |
|
Pension contributions |
|
(79 |
) |
|
|
(36 |
) |
|
Increase in noncurrent assets |
|
(3 |
) |
|
|
(4 |
) |
|
Decrease in noncurrent liabilities |
|
(28 |
) |
|
|
(34 |
) |
|
Cash provided from operations |
|
1,298 |
|
|
|
901 |
|
|
Financing Activities |
|
|
|
|||||
Additions to debt |
|
500 |
|
|
|
400 |
|
|
Repurchases and payments on debt |
|
(865 |
) |
|
|
(876 |
) |
|
Debt issuance costs |
|
(5 |
) |
|
|
(2 |
) |
|
Premiums paid on early redemption of debt |
|
(5 |
) |
|
|
(1 |
) |
|
Repurchases of common stock |
|
(500 |
) |
|
|
(250 |
) |
|
Proceeds from exercise of employee stock options |
|
8 |
|
|
|
11 |
|
|
Dividends paid to shareholders |
|
(109 |
) |
|
|
(73 |
) |
|
Taxes paid for net share settlement of equity awards |
|
(49 |
) |
|
|
(77 |
) |
|
Other |
|
(1 |
) |
|
|
— |
|
|
Cash used for financing activities |
|
(1,026 |
) |
|
|
(868 |
) |
|
Investing Activities |
|
|
|
|||||
Capital expenditures |
|
(321 |
) |
|
|
(219 |
) |
|
Acquisitions, net of cash acquired |
|
(5 |
) |
|
|
— |
|
|
Proceeds from the sale of assets and businesses |
|
9 |
|
|
|
2 |
|
|
Proceeds from the sales of securities |
|
— |
|
|
|
2 |
|
|
Other |
|
1 |
|
|
|
— |
|
|
Cash used for investing activities |
|
(316 |
) |
|
|
(215 |
) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(1 |
) |
|
|
— |
|
|
Net change in cash, cash equivalents and restricted cash |
|
(45 |
) |
|
|
(182 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
610 |
|
|
|
792 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ |
565 |
|
|
$ |
610 |
Howmet Aerospace Inc. and subsidiaries |
||||||||||||||||||||||||||||||||||||||||
Segment Information (unaudited) |
||||||||||||||||||||||||||||||||||||||||
(in |
||||||||||||||||||||||||||||||||||||||||
|
1Q23 |
|
2Q23 |
|
3Q23 |
|
4Q23 |
|
2023 |
|
1Q24 |
|
2Q24 |
|
3Q24 |
|
4Q24 |
|
2024 |
|||||||||||||||||||||
Engine Products |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Third-party sales |
$ |
795 |
|
$ |
821 |
|
$ |
798 |
|
$ |
852 |
|
$ |
3,266 |
|
$ |
885 |
|
$ |
933 |
|
$ |
945 |
|
$ |
972 |
|
$ |
3,735 |
|
||||||||||
Inter-segment sales |
$ |
2 |
|
$ |
5 |
|
$ |
5 |
|
$ |
1 |
|
$ |
13 |
|
$ |
2 |
|
$ |
1 |
|
$ |
3 |
|
$ |
1 |
|
$ |
7 |
|
||||||||||
Provision for depreciation and amortization |
$ |
32 |
|
$ |
32 |
|
$ |
33 |
|
$ |
33 |
|
$ |
130 |
|
$ |
33 |
|
$ |
33 |
|
$ |
34 |
|
$ |
39 |
|
$ |
139 |
|
||||||||||
Segment Adjusted EBITDA |
$ |
212 |
|
$ |
223 |
|
$ |
219 |
|
$ |
233 |
|
$ |
887 |
|
$ |
249 |
|
$ |
292 |
|
$ |
307 |
|
$ |
302 |
|
$ |
1,150 |
|
||||||||||
Segment Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Restructuring and other (credits) charges |
$ |
— |
|
$ |
(1 |
) |
$ |
— |
|
$ |
(1 |
) |
$ |
(2 |
) |
$ |
— |
|
$ |
(1 |
) |
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
||||||||||
Capital expenditures |
$ |
33 |
|
$ |
21 |
|
$ |
30 |
|
$ |
28 |
|
$ |
112 |
|
$ |
55 |
|
$ |
33 |
|
$ |
55 |
|
$ |
76 |
|
$ |
219 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Fastening Systems |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Third-party sales |
$ |
312 |
|
$ |
329 |
|
$ |
348 |
|
$ |
360 |
|
$ |
1,349 |
|
$ |
389 |
|
$ |
394 |
|
$ |
392 |
|
$ |
401 |
|
$ |
1,576 |
|
||||||||||
Inter-segment sales |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
1 |
|
||||||||||
Provision for depreciation and amortization |
$ |
11 |
|
$ |
12 |
|
$ |
12 |
|
$ |
11 |
|
$ |
46 |
|
$ |
11 |
|
$ |
13 |
|
$ |
12 |
|
$ |
11 |
|
$ |
47 |
|
||||||||||
Segment Adjusted EBITDA |
$ |
58 |
|
$ |
64 |
|
$ |
76 |
|
$ |
80 |
|
$ |
278 |
|
$ |
92 |
|
$ |
101 |
|
$ |
102 |
|
$ |
111 |
|
$ |
406 |
|
||||||||||
Segment Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Restructuring and other charges |
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
— |
|
$ |
1 |
|
$ |
— |
|
$ |
2 |
|
$ |
1 |
|
$ |
2 |
|
$ |
5 |
|
||||||||||
Capital expenditures |
$ |
9 |
|
$ |
5 |
|
$ |
9 |
|
$ |
8 |
|
$ |
31 |
|
$ |
7 |
|
$ |
5 |
|
$ |
5 |
|
$ |
9 |
|
$ |
26 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Engineered Structures |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Third-party sales |
$ |
207 |
|
$ |
200 |
|
$ |
227 |
|
$ |
244 |
|
$ |
878 |
|
$ |
262 |
|
$ |
275 |
|
$ |
253 |
|
$ |
275 |
|
$ |
1,065 |
|
||||||||||
Inter-segment sales |
$ |
— |
|
$ |
1 |
|
$ |
— |
|
$ |
2 |
|
$ |
3 |
|
$ |
1 |
|
$ |
3 |
|
$ |
3 |
|
$ |
3 |
|
$ |
10 |
|
||||||||||
Provision for depreciation and amortization |
$ |
12 |
|
$ |
12 |
|
$ |
12 |
|
$ |
11 |
|
$ |
47 |
|
$ |
11 |
|
$ |
11 |
|
$ |
10 |
|
$ |
10 |
|
$ |
42 |
|
||||||||||
Segment Adjusted EBITDA |
$ |
30 |
|
$ |
20 |
|
$ |
30 |
|
$ |
33 |
|
$ |
113 |
|
$ |
37 |
|
$ |
40 |
|
$ |
38 |
|
$ |
51 |
|
$ |
166 |
|
||||||||||
Segment Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Restructuring and other charges (credits) |
$ |
1 |
|
$ |
5 |
|
$ |
1 |
|
$ |
14 |
|
$ |
21 |
|
$ |
— |
|
$ |
14 |
|
$ |
1 |
|
$ |
(3 |
) |
$ |
12 |
|
||||||||||
Capital expenditures |
$ |
10 |
|
$ |
5 |
|
$ |
6 |
|
$ |
5 |
|
$ |
26 |
|
$ |
6 |
|
$ |
5 |
|
$ |
5 |
|
$ |
4 |
|
$ |
20 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Forged Wheels |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Third-party sales |
$ |
289 |
|
$ |
298 |
|
$ |
285 |
|
$ |
275 |
|
$ |
1,147 |
|
$ |
288 |
|
$ |
278 |
|
$ |
245 |
|
$ |
243 |
|
$ |
1,054 |
|
||||||||||
Provision for depreciation and amortization |
$ |
9 |
|
$ |
10 |
|
$ |
10 |
|
$ |
10 |
|
$ |
39 |
|
$ |
10 |
|
$ |
10 |
|
$ |
10 |
|
$ |
12 |
|
$ |
42 |
|
||||||||||
Segment Adjusted EBITDA |
$ |
79 |
|
$ |
81 |
|
$ |
77 |
|
$ |
72 |
|
$ |
309 |
|
$ |
82 |
|
$ |
75 |
|
$ |
64 |
|
$ |
66 |
|
$ |
287 |
|
||||||||||
Segment Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Restructuring and other charges |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
— |
|
$ |
1 |
|
||||||||||
Capital expenditures |
$ |
9 |
|
$ |
7 |
|
$ |
9 |
|
$ |
11 |
|
$ |
36 |
|
$ |
12 |
|
$ |
9 |
|
$ |
14 |
|
$ |
10 |
|
$ |
45 |
|
||||||||||
Differences between the total segment and consolidated totals are in Corporate. |
Howmet Aerospace Inc. and subsidiaries |
||||||||||||||||||||||||||||||||
Calculation of Financial Measures (unaudited) |
||||||||||||||||||||||||||||||||
(in |
||||||||||||||||||||||||||||||||
Reconciliation of Total Segment Adjusted EBITDA to Consolidated Income Before Income Taxes |
||||||||||||||||||||||||||||||||
|
1Q23 |
|
2Q23 |
|
3Q23 |
|
4Q23 |
|
2023 |
|
1Q24 |
|
2Q24 |
|
3Q24 |
|
4Q24 |
|
2024 |
|||||||||||||
Income before income taxes |
$ |
220 |
$ |
243 |
|
$ |
242 |
$ |
270 |
$ |
975 |
$ |
303 |
$ |
334 |
$ |
354 |
|
$ |
392 |
$ |
1,383 |
||||||||||
Loss on debt redemption |
|
1 |
|
— |
|
|
— |
|
1 |
|
2 |
|
— |
|
— |
|
6 |
|
|
— |
|
6 |
||||||||||
Interest expense, net |
|
57 |
|
55 |
|
|
54 |
|
52 |
|
218 |
|
49 |
|
49 |
|
44 |
|
|
40 |
|
182 |
||||||||||
Other expense (income), net |
|
7 |
|
(13 |
) |
|
11 |
|
3 |
|
8 |
|
17 |
|
15 |
|
17 |
|
|
13 |
|
62 |
||||||||||
Operating income |
$ |
285 |
$ |
285 |
|
$ |
307 |
$ |
326 |
$ |
1,203 |
$ |
369 |
$ |
398 |
$ |
421 |
|
$ |
445 |
$ |
1,633 |
||||||||||
Segment provision for depreciation and amortization |
|
64 |
|
66 |
|
|
67 |
|
65 |
|
262 |
|
65 |
|
67 |
|
66 |
|
|
72 |
|
270 |
||||||||||
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Restructuring and other charges (credits) |
|
1 |
|
3 |
|
|
4 |
|
15 |
|
23 |
|
— |
|
22 |
|
(1 |
) |
|
— |
|
21 |
||||||||||
Corporate expense(1) |
|
29 |
|
34 |
|
|
24 |
|
12 |
|
99 |
|
26 |
|
21 |
|
25 |
|
|
13 |
|
85 |
||||||||||
Total Segment Adjusted EBITDA |
$ |
379 |
$ |
388 |
|
$ |
402 |
$ |
418 |
$ |
1,587 |
$ |
460 |
$ |
508 |
$ |
511 |
|
$ |
530 |
$ |
2,009 |
Total Segment Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Total Segment Adjusted EBITDA provides additional information with respect to the Company's operating performance and the Company’s ability to meet its financial obligations. The Total Segment Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. Howmet’s definition of Total Segment Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation and amortization. Special items, including Restructuring and other charges (credits), are excluded from net margin and Segment Adjusted EBITDA. Differences between the total segment and consolidated totals are in Corporate.
(1) Pre-tax special items included in Corporate expense |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
1Q23 |
|
2Q23 |
|
3Q23 |
|
4Q23 |
|
2023 |
|
1Q24 |
|
2Q24 |
|
3Q24 |
|
4Q24 |
|
2024 |
||||||||||||||||||
Plant fire costs (reimbursements), net |
$ |
4 |
$ |
(4 |
) |
$ |
1 |
$ |
(13 |
) |
$ |
(12 |
) |
$ |
— |
$ |
(6 |
) |
$ |
— |
|
$ |
(12 |
) |
$ |
(18 |
) |
||||||||||
Collective bargaining agreement negotiation |
|
— |
|
7 |
|
|
1 |
|
— |
|
|
8 |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||
Costs (benefits) associated with closures, supply chain disruptions, and other items |
|
1 |
|
9 |
|
|
1 |
|
2 |
|
|
13 |
|
|
1 |
|
— |
|
|
(1 |
) |
|
1 |
|
|
1 |
|
||||||||||
Total Pre-tax special items included in Corporate expense |
$ |
5 |
$ |
12 |
|
$ |
3 |
$ |
(11 |
) |
$ |
9 |
|
$ |
1 |
$ |
(6 |
) |
$ |
(1 |
) |
$ |
(11 |
) |
$ |
(17 |
) |
Howmet Aerospace Inc. and subsidiaries |
||||||||||||||||||||
Calculation of Financial Measures (unaudited), continued |
||||||||||||||||||||
(in |
||||||||||||||||||||
Reconciliation of Free cash flow |
Quarter ended |
|
Year ended |
|||||||||||||||||
1Q24 |
|
2Q24 |
|
3Q24 |
|
4Q24 |
|
4Q24 |
||||||||||||
Cash provided from operations |
$ |
177 |
|
|
$ |
397 |
|
|
$ |
244 |
|
|
$ |
480 |
|
|
$ |
1,298 |
|
|
Capital expenditures |
|
(82 |
) |
|
|
(55 |
) |
|
|
(82 |
) |
|
|
(102 |
) |
|
|
(321 |
) |
|
Free cash flow (a) |
$ |
95 |
|
|
$ |
342 |
|
|
$ |
162 |
|
|
$ |
378 |
|
|
$ |
977 |
|
|
Net income (b) |
$ |
243 |
|
|
$ |
266 |
|
|
$ |
332 |
|
|
$ |
314 |
|
|
$ |
1,155 |
|
|
Free cash flow conversion as a percentage of Net income(1) (a)/(b) |
|
|
|
|
|
|
|
|
|
85 |
% |
|||||||||
Net income excluding Special items(2) (c) |
$ |
238 |
|
|
$ |
276 |
|
|
$ |
290 |
|
|
$ |
303 |
|
|
$ |
1,107 |
|
|
Free cash flow conversion as a percentage of Net income excluding Special items(1) (a)/(c) |
|
|
|
|
|
|
|
|
|
88 |
% |
The Accounts Receivable Securitization program remains unchanged at
Free cash flow and Free cash flow conversion as a percentage of Net income excluding Special items are non-GAAP financial measures. Management believes that these measures are meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures (due to the fact that these expenditures are considered necessary to maintain and expand the Company's asset base and are expected to generate future cash flows from operations). It is important to note that Free cash flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.
(1) |
We compute free cash flow conversion on an annual basis only due to the cycle of our business. |
|
(2) |
Please refer to the Reconciliation of Net income excluding Special items for the reconciliation from Net income to Net income excluding Special items. |
Howmet Aerospace Inc. and subsidiaries |
||||||||||||||||||||
Calculation of Financial Measures (unaudited), continued |
||||||||||||||||||||
(in |
||||||||||||||||||||
Reconciliation of Net income excluding Special items |
Quarter ended |
|
Year ended |
|||||||||||||||||
4Q23 |
|
3Q24 |
|
4Q24 |
|
December 31,
|
|
December 31,
|
||||||||||||
Net income |
$ |
236 |
|
|
$ |
332 |
|
|
$ |
314 |
|
|
$ |
765 |
|
|
$ |
1,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted earnings per share ("EPS") |
$ |
0.57 |
|
|
$ |
0.81 |
|
|
$ |
0.77 |
|
|
$ |
1.83 |
|
|
$ |
2.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Special items: |
|
|
|
|
|
|
|
|
|
|||||||||||
Restructuring and other charges (credits) |
|
15 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
23 |
|
|
|
21 |
|
|
Loss on debt redemption and related costs |
|
1 |
|
|
|
6 |
|
|
|
— |
|
|
|
2 |
|
|
|
6 |
|
|
Plant fire reimbursements, net |
|
(13 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
(12 |
) |
|
|
(18 |
) |
|
Collective bargaining agreement negotiations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
Settlement from legal proceeding(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(24 |
) |
|
|
— |
|
|
Costs (benefits) associated with closures, supply chain disruptions, and other items |
|
2 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
13 |
|
|
|
1 |
|
|
Subtotal: Pre-tax special items(2) |
|
5 |
|
|
|
4 |
|
|
|
(11 |
) |
|
|
10 |
|
|
|
10 |
|
|
Tax impact of Pre-tax special items(3) |
|
— |
|
|
|
(1 |
) |
|
|
2 |
|
|
|
— |
|
|
|
1 |
|
|
Subtotal |
|
5 |
|
|
|
3 |
|
|
|
(9 |
) |
|
|
10 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Discrete and other tax special items(4) |
|
(23 |
) |
|
|
(45 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(59 |
) |
|
Total: After-tax special items |
|
(18 |
) |
|
|
(42 |
) |
|
|
(11 |
) |
|
|
1 |
|
|
|
(48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income excluding Special items |
$ |
218 |
|
|
$ |
290 |
|
|
$ |
303 |
|
|
$ |
766 |
|
|
$ |
1,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted EPS excluding Special items |
$ |
0.53 |
|
|
$ |
0.71 |
|
|
$ |
0.74 |
|
|
$ |
1.84 |
|
|
$ |
2.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Average number of shares - diluted EPS excluding Special items |
|
414 |
|
|
|
410 |
|
|
|
408 |
|
|
|
416 |
|
|
|
410 |
|
Net income excluding Special items and Diluted EPS excluding Special items are non-GAAP financial measures. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Restructuring and other charges (credits), Discrete tax items, and Other special items (collectively, “Special items”). There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Net income and Diluted EPS determined under GAAP as well as Net income excluding Special items and Diluted EPS excluding Special items.
(1) |
Year ended December 31, 2023 related to the reversal in the second quarter of 2023 of |
|
(2) |
The Tax impact of Pre-tax special items is based on the applicable statutory rates whereby the difference between such rates and the Company’s consolidated estimated annual effective tax rate is itself a Special item. |
|
(3) |
Year ended December 31, 2023 included costs for site closures and inventory disposal, an impact from supply disruptions, and remediation and separation expenses. |
|
(4) |
Discrete tax items for the quarter ended December 31, 2024, year ended December 31, 2023, and year ended December 31, 2024 are discussed further in the Reconciliation of the Operational Tax Rate. Discrete tax items for the remaining periods included the following: |
|
|
Howmet Aerospace Inc. and subsidiaries |
||||||||||||||||||||||||||||||||||
Calculation of Financial Measures (unaudited), continued |
||||||||||||||||||||||||||||||||||
(in |
||||||||||||||||||||||||||||||||||
Reconciliation of Operational tax rate |
4Q24 |
|
YTD 2023 |
|
YTD 2024 |
|||||||||||||||||||||||||||||
Effective
|
|
Special
|
|
Operational
|
|
Effective
|
|
Special
|
|
Operational
|
|
Effective
|
|
Special
|
|
Operational
|
||||||||||||||||||
Income before income taxes |
$ |
392 |
|
|
$ |
(11 |
) |
|
$ |
381 |
|
|
$ |
975 |
|
|
$ |
10 |
|
$ |
985 |
|
|
$ |
1,383 |
|
|
$ |
10 |
|
$ |
1,393 |
|
|
Provision for income taxes |
$ |
78 |
|
|
$ |
— |
|
|
$ |
78 |
|
|
$ |
210 |
|
|
$ |
9 |
|
$ |
219 |
|
|
$ |
228 |
|
|
$ |
58 |
|
$ |
286 |
|
|
Tax rate |
|
19.9 |
% |
|
|
|
|
20.5 |
% |
|
|
21.5 |
% |
|
|
|
|
22.2 |
% |
|
|
16.5 |
% |
|
|
|
|
20.5 |
% |
Operational tax rate is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both the Effective tax rate determined under GAAP as well as the Operational tax rate.
(1) |
Pre-tax special items for 4Q24 included Plant fire reimbursements, net ( |
|
(2) |
Pre-tax special items for YTD 2023 included Restructuring and other charges |
|
(3) |
Tax Special items includes discrete tax items, the tax impact on Special items based on the applicable statutory rates, the difference between such rates and the Company’s consolidated estimated annual effective tax rate and other tax related items. Discrete tax items for each period included the following: |
|
|
Howmet Aerospace Inc. and subsidiaries |
||||||||||||||||||||
Calculation of Financial Measures (unaudited), continued |
||||||||||||||||||||
(in |
||||||||||||||||||||
Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin excluding Special items |
Quarter ended |
|
Year ended |
|||||||||||||||||
4Q23 |
|
3Q24 |
|
4Q24 |
|
4Q23 |
|
4Q24 |
||||||||||||
Sales |
$ |
1,731 |
|
|
$ |
1,835 |
|
|
$ |
1,891 |
|
|
$ |
6,640 |
|
|
$ |
7,430 |
|
|
Operating income |
$ |
326 |
|
|
$ |
421 |
|
|
$ |
445 |
|
|
$ |
1,203 |
|
|
$ |
1,633 |
|
|
Operating income margin |
|
18.8 |
% |
|
|
22.9 |
% |
|
|
23.5 |
% |
|
|
18.1 |
% |
|
|
22.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
$ |
236 |
|
|
$ |
332 |
|
|
$ |
314 |
|
|
$ |
765 |
|
|
$ |
1,155 |
|
|
Add: |
|
|
|
|
|
|
|
|
|
|||||||||||
Provision for income taxes |
$ |
34 |
|
|
$ |
22 |
|
|
$ |
78 |
|
|
$ |
210 |
|
|
$ |
228 |
|
|
Other expense, net |
|
3 |
|
|
|
17 |
|
|
|
13 |
|
|
|
8 |
|
|
|
62 |
|
|
Loss on debt redemption |
|
1 |
|
|
|
6 |
|
|
|
— |
|
|
|
2 |
|
|
|
6 |
|
|
Interest expense, net |
|
52 |
|
|
|
44 |
|
|
|
40 |
|
|
|
218 |
|
|
|
182 |
|
|
Restructuring and other charges (credits) |
|
15 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
23 |
|
|
|
21 |
|
|
Provision for depreciation and amortization |
|
68 |
|
|
|
68 |
|
|
|
73 |
|
|
|
272 |
|
|
|
277 |
|
|
Adjusted EBITDA |
$ |
409 |
|
|
$ |
488 |
|
|
$ |
518 |
|
|
$ |
1,498 |
|
|
$ |
1,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Add: |
|
|
|
|
|
|
|
|
|
|||||||||||
Plant fire reimbursements, net |
$ |
(13 |
) |
|
$ |
— |
|
|
$ |
(12 |
) |
|
$ |
(12 |
) |
|
$ |
(18 |
) |
|
Collective bargaining agreement negotiations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
Costs (benefits) associated with closures, supply chain disruptions, and other items |
|
2 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
14 |
|
|
|
1 |
|
|
Adjusted EBITDA excluding Special items |
$ |
398 |
|
|
$ |
487 |
|
|
$ |
507 |
|
|
$ |
1,508 |
|
|
$ |
1,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA margin excluding Special items |
|
23.0 |
% |
|
|
26.5 |
% |
|
|
26.8 |
% |
|
|
22.7 |
% |
|
|
25.8 |
% |
Incremental margin |
Quarter ended |
|
|
|
Year Ended |
|
|
|||||
December 31,
|
|
December 31,
|
|
Q4 2024 YoY |
|
December 31,
|
|
December 31,
|
|
FY 2024 YoY |
||
Third-party sales (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA excluding Special items (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incremental operating income margin (b)/(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incremental margin (c)/(a) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, Adjusted EBITDA excluding Special items, Adjusted EBITDA margin excluding Special items, Third-party sales, and Incremental margin are non-GAAP financial measures. Management believes that these measures are meaningful to investors because they provide additional information with respect to the Company's operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. The Company's definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold, Selling, general administrative, and other expenses, Research and development expenses, and Provision for depreciation and amortization. Special items, including Restructuring and other charges (credits), are excluded from Adjusted EBITDA.
Howmet Aerospace Inc. and subsidiaries |
||||||||||||||||||||
Calculation of Financial Measures (unaudited), continued |
||||||||||||||||||||
(in |
||||||||||||||||||||
Reconciliation of Adjusted Operating Income Excluding Special Items and Adjusted Operating Income Margin Excluding Special Items |
Quarter ended |
|
Year ended |
|||||||||||||||||
4Q23 |
|
3Q24 |
|
4Q24 |
|
December
|
|
December
|
||||||||||||
Sales |
$ |
1,731 |
|
|
$ |
1,835 |
|
|
$ |
1,891 |
|
|
$ |
6,640 |
|
|
$ |
7,430 |
|
|
Operating income |
$ |
326 |
|
|
$ |
421 |
|
|
$ |
445 |
|
|
$ |
1,203 |
|
|
$ |
1,633 |
|
|
Operating income margin |
|
18.8 |
% |
|
|
22.9 |
% |
|
|
23.5 |
% |
|
|
18.1 |
% |
|
|
22.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Add: |
|
|
|
|
|
|
|
|
|
|||||||||||
Restructuring and other charges (credits) |
$ |
15 |
|
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
23 |
|
|
$ |
21 |
|
|
Plant fire reimbursements, net |
|
(13 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
(12 |
) |
|
|
(18 |
) |
|
Collective bargaining agreement negotiations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
Costs (benefits) associated with closures, supply chain disruptions, and other items |
|
2 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
14 |
|
|
|
1 |
|
|
Adjusted operating income excluding Special items |
$ |
330 |
|
|
$ |
419 |
|
|
$ |
434 |
|
|
$ |
1,236 |
|
|
$ |
1,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted operating income margin excluding Special items |
|
19.1 |
% |
|
|
22.8 |
% |
|
|
23.0 |
% |
|
|
18.6 |
% |
|
|
22.0 |
% |
Adjusted operating income excluding Special items and Adjusted operating income margin excluding Special items are non-GAAP financial measures. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Operating income determined under GAAP as well as Operating income excluding Special items.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250213125921/en/
Investor Contact
Paul T. Luther
(412) 553-1950
Paul.Luther@howmet.com
Media Contact
Rob Morrison
(412) 553-2666
Rob.Morrison@howmet.com
Source: Howmet Aerospace Inc.