In This Article:
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Revenue: Up 9% in Q4 and 12% for the full year 2024.
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Earnings Per Share (EPS): $0.74 in Q4, a 40% increase year-over-year; $2.69 for the full year, a 46% increase year-over-year.
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Operating Margin: 23% for Q4.
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Free Cash Flow: Record $977 million for the year, representing an 88% conversion of net income.
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Share Repurchases: $500 million in 2024, with $190 million in Q4.
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Debt Reduction: $365 million in 2024.
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Dividends Paid: $109 million in 2024, with a recent 25% increase in the quarterly dividend.
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Net Debt-to-EBITDA Ratio: Improved to 1.4 times.
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Commercial Aerospace Revenue: Up 13% in Q4 and 20% for the full year.
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Defense Aerospace Revenue: Up 22% in Q4 and 15% for the full year.
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Commercial Transportation Revenue: Down 12% in Q4 and 7% for the full year.
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Industrial and Other Markets Revenue: Up 11% in Q4 and 9% for the full year.
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Spares Revenue: $1.28 billion for the full year, representing 17% of total revenue.
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EBITDA Margin: Increased 310 basis points to 25.8% for the full year.
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CapEx Investments: $321 million for the year, up approximately $100 million year-over-year.
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Cash Balance: $565 million at year-end.
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Engine Products Revenue: Up 14% in Q4 and 14% for the full year.
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Fastening Systems Revenue: Up 11% in Q4 and 17% for the full year.
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Engineered Structures Revenue: Up 13% in Q4 and 21% for the full year.
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Forged Wheels Revenue: Down 12% in Q4 and 8% for the full year.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Howmet Aerospace Inc (NYSE:HWM) reported record revenues, EBITDA, EBITDA margin, and earnings per share for the fourth quarter and full year 2024.
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The company achieved a 46% year-over-year increase in earnings per share, surpassing initial guidance by 25%.
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Free cash flow for the year was a record $977 million, with an 88% conversion of net income.
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Howmet Aerospace Inc (NYSE:HWM) repurchased $500 million of common stock and reduced debt by $365 million in 2024.
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The company announced a 25% increase in the quarterly common stock dividend, reflecting confidence in future cash flow generation.
Negative Points
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Commercial transportation revenues were down 12% in the fourth quarter and 7% for the full year, indicating challenges in this segment.
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The company anticipates a back-end loaded profit in 2025, with potential uncertainties in narrow-body aircraft builds.
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There is a cautious outlook for the commercial truck market, with muted demand expected to continue into the first half of 2025.
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Howmet Aerospace Inc (NYSE:HWM) faces potential headwinds from tariffs, although they plan to pass additional costs to customers.
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The company expects to add approximately 1,000 net new employees in 2025, which could impact operating leverage and margins.