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Howmet Aerospace Inc. 8-K Report, Financial Results (Feb 13, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 13, 2025
Period End
February 13, 2025
Security
HWM
In the record · 2016–202610-K1110-Q328-K223

HWM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 223 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’18Jul ’18
  2. Leadership change8-K · Dec ’20Dec ’20
  3. Leadership change8-K · Dec ’22Dec ’22
  4. Deal closed8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 8-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.

Howmet Aerospace (HWM) reported record fourth quarter and full year 2024 results on February 13, 2025, with full-year revenue of $7.4 billiona, up 12% year over year, driven by a 20% increase in Commercial Aerospace.

GAAP net income rose to $1.2 billionb ($2.81 per diluted share) from $765 million ($1.83) in 2023, and excluding special items, adjusted EPS grew 46% to $2.69. Operating margin expanded to 22.0% and adjusted EBITDA excluding special items reached $1.9 billion, up 27%, with an adjusted EBITDA margin of 25.8%. Free cash flow was $977 million, or 88% of net income excluding special items, and the company returned capital through roughly $500 million in buybacks, $365 million of gross debt reduction, and dividends.

Management guided 2025 revenue to $7.93c–$8.13 billion (baseline $8.03 billion, about 8% growth, raised from 7.5%), adjusted EBITDA to $2.105–$2.155 billion, adjusted EPS to $3.13–$3.21, and free cash flow to $1.025–$1.125 billion. The guidance assumes cautious build rates of about 25 737 MAX aircraft per month and 6 787s per month at Boeing, and mid-50s A320 production per month at Airbus. Commercial transportation is expected to remain soft until the second half of 2025.

The company also raised its quarterly dividend 25% to $0.10d per share, signaling confidence in cash generation. Investors should note that the 2025 outlook relies on OEM production ramps, continued engine spares demand, and defense and industrial growth, and that the Forged Wheels segment declined in 2024.

02—Key points

Key Highlights

  1. FY2024 revenue of $7.4B, up 12% YoY, led by Commercial Aerospace growth of 20%; Q4 revenue of $1.9B, up 9%, a record.
  2. FY2024 GAAP EPS of $2.81 vs. $1.83 in 2023; adjusted EPS excluding special items of $2.69, up 46% YoY.
  3. Adjusted EBITDA excluding special items of $1.9B (25.8% margin), up 27% YoY; Q4 adjusted EBITDA margin of 26.8%, up about 380 bps.
  4. Free cash flow of $977M in FY2024, equal to 88% conversion of net income excluding special items; 2025 FCF guided to $1.025–$1.125B.
  5. Capital returned and debt reduced: about $500M in share repurchases, $365M gross debt reduction, and dividends; about $2.15B buyback authorization remaining as of January 31, 2025.
  6. Quarterly dividend raised 25% to $0.10 per share; FY2025 revenue guidance raised to about 8% growth (midpoint $8.03B) and adjusted EPS guided to $3.13–$3.21.
  7. Engine Products segment delivered record FY2024 segment adjusted EBITDA of $1.15B (30.8% margin), while Forged Wheels revenue fell 8% on softer commercial transportation volumes.

03—Questions

Frequently Asked Questions

  1. What drove Howmet's revenue and profit growth in 2024?

    Growth was driven primarily by Commercial Aerospace, which rose 20% for the full year and 13% in Q4, supported by engine spares demand, wide-body recovery in Fastening Systems, and higher OEM volumes. Defense aerospace also contributed. Operating margin expanded to 22.0% from 18.1%, reflecting volume leverage and productivity gains.

  2. How does 2025 guidance compare to 2024 results?

    The company guides FY2025 revenue to $7.93–$8.13 billion, a midpoint of about 8% growth over 2024, and adjusted EBITDA to $2.105–$2.155 billion (about 26.5% margin). Adjusted EPS is guided to $3.13–$3.21, versus $2.69 in 2024. Guidance is based on conservative build rate assumptions for Boeing and Airbus.

  3. Is the dividend increase sustainable, and what is the capital allocation plan?

    The dividend rose to $0.10 per quarter from $0.08. Free cash flow of $977M in 2024 and a 2025 target above $1B support the payout, and 2025 FCF is expected to convert about 85% of net income. Management continues to balance buybacks, debt reduction (the USD Term Loan balance is $140M, due November 2026), and dividends.

  4. What are the main risks highlighted for investors?

    Key risks include soft commercial transportation markets until the second half of 2025, dependence on OEM production rate increases at Boeing and Airbus, supply chain constraints, workforce hiring needs (about 1,205 net headcount added in Engine Products in 2024), and the possibility that pension assets or discount rates change. The release also flags geopolitical and regulatory exposure.

04—Continue

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