- Howmet Aerospace Inc (NYSE:HWM) reported fourth-quarter revenue growth of 18% Y/Y to $1.51 billion, beating the consensus of $1.47 billion, primarily driven by growth in the commercial aerospace market of 29%.
- Adjusted EPS of $0.38 was in-line with the consensus.
- Adjusted EBITDA margin was down approximately 80 basis points Y/Y at 22.2% while passing through approximately $55 million of additional material costs year over year. Excluding material cost pass-through, the adjusted EBITDA margin was 23.0%.
- Howmet Aerospace Executive Chairman & CEO John Plant said, "Howmet Aerospace delivered a solid finish to 2022...against a choppy backcloth with uneven aircraft and engine build rate increases and inflationary pressures."
- Mr. Plant continued, "Turning to FY23, currently, air travel conditions are very favorable, and airlines are experiencing strong growth, demanding new, more fuel-efficient aircraft. While industry demand is expected to be robust, Howmet Aerospace relies on aircraft and engine builds by the major OEMs. The Company is taking a conservative view of 2023 until we see consistent build rate increases."
- 1Q23 Outlook: Howmet Aerospace expects revenue of $1.475-$1.525 billion (consensus $1.50 billion) and adjusted EPS of $0.35- $0.39 (consensus $0.38).
- FY23 Outlook: Howmet Aerospace expects revenue of $6.00- $6.20 billion vs. the $6.17 billion estimate.
- It forecasts adjusted EPS of $1.53-$1.67 compared to the consensus of $1.73.
- Plant added, "Underpinning the full year 2023 guidance are assumed monthly build rates of approximately 30 for the Boeing 737-MAX and 53 to 54 for the Airbus A320 family, and approximately 30 Boeing 787 builds, and 65 to 70 Airbus A350 builds for the year."
- Price Action: HWM shares are up 2.50% at $42.10 on the last check Tuesday.
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