Howmet Aerospace Takes Conservative View On 2023 Despite Growth In Air Travel Conditions - Howmet Aerospace (NYSE:HWM)

Howmet Aerospace Inc 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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