Howmet Aerospace (HWM) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue reached $7.43B, up 12% year-over-year, with record profit and cash generation, driven by 20% growth in commercial aerospace and a 7% decline in commercial transportation.

• Adjusted EBITDA rose 27% to $1.91B, with margin expanding by 310 bps to 25.8%.

• Adjusted EPS increased 46% to $2.69; GAAP EPS was $2.81; free cash flow reached $977M with 88% conversion.

• Net debt-to-EBITDA improved to a record low 1.4x; S&P and Moody’s upgraded credit ratings.

• $975M deployed for share repurchases, debt reduction, and dividends; quarterly dividend per share up 25% to $0.10.

Financial highlights

• Q4 2024 revenue was $1.9B, up 9% year-over-year; adjusted EBITDA $507M, up 27% with margin at 26.8%.

• Q4 adjusted EPS was $0.74, up 40% year-over-year; Q4 operating margin was 23%.

• FY 2024 operating income margin was 22.0%, up 340 bps year-over-year.

• CapEx investments reached a record $321M, up $100M YoY.

• Ending cash balance at year-end 2024 was $565M.

Outlook and guidance

• FY 2025 revenue guidance midpoint raised to $8.03B (range: $7.93B–$8.13B), ~8% year-over-year growth.

• FY 2025 adjusted EBITDA guidance $2.13B (range: $2.11B–$2.16B); adjusted EPS $3.17 (range: $3.13–$3.21).

• FY 2025 free cash flow expected at $1.75B ±$50M; conversion ~85%.

• Q1 2025 guidance: revenue $1.935B ±$10M, adjusted EPS $0.76 ±$0.01.

• Growth expected to be back-end loaded, especially in commercial aerospace and truck segments.