What were the primary drivers for the sales decrease in 2021?

Sales decreased by 5% to $4.97 billion in 2021 primarily due to lower sales volumes in the commercial aerospace market, impacted by COVID-19 and production declines for aircraft like the Boeing 787. Lower sales volumes in the defense aerospace market also contributed to the decrease.

How did the company manage its debt and liquidity in 2021?

Howmet Aerospace focused on strengthening its balance sheet by reducing total debt by $843 million, ending the year with $4.23 billion in total debt. Cash provided from operations was $449 million, and the company maintained a strong liquidity position with $722 million in cash and equivalents.

What is the company's outlook for 2022?

Howmet Aerospace projects sales to increase in 2022, expecting robust growth in most of its key markets, supported by its strong market positions. Higher metal costs are also expected to contribute to increased sales. Management anticipates earnings per share to grow through continued focus on operational performance and capital efficiency.

How significant is the aerospace market to Howmet's revenue?

The aerospace market is Howmet's largest market, representing approximately 60% of the company's revenue in 2021. This includes both commercial and defense aerospace applications.

HWM 10-K FY2021 Annual Report — Revenue, Net Income, EPS

Summary

Howmet Aerospace Inc. (HWM) reported its 2021 full-year results, indicating a 5% decrease in sales to $4.97 billion compared to 2020. This decline was primarily driven by lower sales volumes in the commercial aerospace sector, attributed to the ongoing impact of COVID-19 and production adjustments by major customers like Boeing. Despite the sales dip, segment operating profit saw a 6% increase to $939 million, benefiting from growth in commercial transportation and industrial gas turbine markets, alongside favorable product pricing that outpaced material and inflationary costs. Financially, the company demonstrated a strong focus on liquidity and balance sheet improvement. Cash provided from operations was $449 million, and total debt was reduced by $843 million to $4.23 billion. Howmet also continued its share repurchase program, buying back approximately 13 million shares for $430 million. The company ended the year with a solid financial position and projects sales growth in 2022, anticipating robust demand across its key markets. Management remains focused on operational performance, cost reductions, and capital efficiency to drive future earnings growth.

Financial Highlights

52 data points

Beta

Revenue

$4.97B

Net Income

$258.00M

0.1% Net Margin

EPS (Diluted)

$0.59

Total Assets

$10.22B

Cash & Equivalents

$720.00M

Free Cash Flow

$250.00M

Financial Statements

Beta

Revenue	$4.97B
R&D Expenses	$17.00M
SG&A Expenses	$251.00M
Operating Income	$748.00M
Interest Expense	$259.00M
Net Income	$258.00M
EPS (Basic)	$0.60
EPS (Diluted)	$0.59
Shares Outstanding (Basic)	430.00M
Shares Outstanding (Diluted)	435.00M

Key Highlights

1Sales declined by 5% year-over-year to $4.97 billion in 2021, primarily due to weakness in the commercial aerospace market.
2Segment operating profit increased by 6% to $939 million, driven by commercial transportation, industrial gas turbines, and favorable pricing.
3The company repurchased approximately 13 million shares of common stock for $430 million.
4Total debt was reduced by $843 million to $4.23 billion.
5Cash provided from operations was $449 million, demonstrating operational cash generation.
6Howmet Aerospace expects sales to increase in 2022, projecting growth across most key markets.
7The company has a significant presence in the aerospace market (60% of revenue) and commercial transportation (23% of revenue).

Howmet Aerospace Inc. Annual Report, Year Ended Dec 31, 2021

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions