Howmet Aerospace sees FY24 EPS $2.53- $2.57, consensus $2.39

Sees FY24 revenue $7.4B-$7.48B , consensus $7.33B … For the second consecutive quarter, Howmet achieved record quarterly results in revenue, adjusted EBITDA*, adjusted EBITDA margin* and adjusted earnings per share*. Adjusted EBITDA margin* of 25.7% was up approximately 340 basis points year over year, and adjusted earnings per share* grew 52%.” Mr. Plant continued, “The outlook for commercial aerospace continues to be robust, with strong travel demand and an aging aircraft fleet, leading to an extremely high backlog at the aircraft OEMs. The issue faced by Howmet Aerospace continues to be the aircraft manufacturers’ ability to build and deliver aircraft on a consistent basis. We continue to take these factors into account in our guidance. Despite these challenges, we are again raising full year 2024 guidance above the second quarter 2024 beat, reflecting strong continued performance at Howmet Aerospace.” “Howmet Aerospace generated very healthy free cash flow of $342M in the second quarter 2024 and $437M in the first half 2024, which enabled the Company to redeem the remaining $205Mn of our notes due in October 2024 and $23M of our notes due in May 2025, and repurchase $210 million of common stock year to date. We are pleased that the Board of Directors approved a 60% increase in the common stock dividend to $0.08 per share for the third quarter 2024. Moreover, the Board of Directors approved the establishment of a 2025 dividend policy on common stock of 15% plus or minus 5% of net income excluding special items. Finally, the Board of Directors authorized an increase in the share repurchase program by $2B to $2.487 B, reflecting the Company’s strong free cash flow outlook.”