- Howmet Aerospace Inc HWM reported second-quarter revenue growth of 17% year-over-year to $1.39 billion, beating the consensus of $1.37 billion.
- Adjusted EPS improved to $0.35 compared to $0.22 in 2Q21, above the consensus of $0.33.
- The operating income increased 16.4% Y/Y to $241 million, and the margin was flat at 17.3%.
- Howmet Aerospace generated cash from operating activities year-to-date of $213 million, compared to $79 million a year ago. Free cash flow was $107 million.
- Adjusted EBITDA excluding special items was $317 million (+17% Y/Y), and the margin was 22.8%, flat compared to last year.
- The company repurchased ~1.8 million shares for $60 million during the quarter.
- At the end of the quarter, the company's cash balance was $538 million.
- Howmet expects to increase the quarterly dividend from $0.02 to $0.04 per share beginning in 4Q22.
- Executive Chairman and CEO John Plant commented, "Looking ahead, commercial aerospace narrow body production rates continue to improve and are the primary growth driver through 2022, while we expect wide body volumes to improve as we move into 2023."
- 3Q22 Outlook: Howmet Aerospace expects revenue of $1.425 billion - $1.455 billion (consensus $1.44 billion) and adjusted EPS of $0.35- $0.37 (consensus $0.37).
- It expects adjusted EBITDA of $320 million - $331 million and an Adjusted EBITDA margin of 22.5%- 22.7%.
- FY22 Outlook: Howmet Aerospace expects revenue of ~$5.645 billion - $5.715 billion (prior view $5.56 billion - $5.72 billion), versus the consensus of $5.63 billion.
- Adjusted EPS of $1.38 - $1.42 (prior view $1.33 - $1.45), versus the consensus of $1.41.
- The company currently expects adjusted EBITDA of $1.276 billion - $1.299 billion, an Adjusted EBITDA margin of 22.6% - 22.7%, and Free Cash Flow of $625 million - $675 million.
- Price Action: HWM shares traded higher by 0.09% at $37.24 on the last check Thursday.
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