Howmet Aerospace (HWM) Soars on Strong Q3 Earnings

Howmet Aerospace (HWM) reported robust Q3 earnings, driven by strong commercial aerospace demand and operational improvements. Revenue surged 28% year-over-year (YoY), led by a 29% increase in Commercial Aerospace. Net income excluding special items jumped 23% to $160 million, or $0.38 per share, while Adjusted EBITDA excluding special items rose 14% to $336 million. The company's focus on cost-cutting and operational efficiency, coupled with the recovery in the aerospace industry, contributed to this impressive performance.



Howmet Aerospace's Q3 earnings compared favorably to its own guidance and previous quarters. Revenue of $1.5 billion was up 18% YoY, driven by a 29% increase in Commercial Aerospace. Net income was $111 million, or $0.26 per share, up from $77 million, or $0.18 per share, in Q4 2021. Adjusted EBITDA excluding special items was $336 million, up 14% YoY. These results exceeded the company's guidance for Q3 2022, with revenue at the high end of the $1.475B to $1.525B range and Adj. EBITDA at the high end of the $325M to $345M range. Compared to Q4 2021, revenue increased by $235 million, and Adj. EBITDA increased by $43 million.



The outlook for Howmet Aerospace's earnings in the coming quarters appears promising, based on Q3 results and guidance. The company guided for FY 2023 revenue growth of approximately 8%, with Q1 2023 guidance for revenue of $1.475B to $1.525B and adjusted EBITDA of $325M to $345M. Given the strong Q3 performance and positive guidance, investors can expect continued earnings growth in the coming quarters.

In conclusion, Howmet Aerospace's solid Q3 earnings performance was driven by strong commercial aerospace demand, operational improvements, and cost-cutting measures. The company's expansion into new markets and product lines also contributed to its impressive growth. With a positive outlook for the coming quarters, Howmet Aerospace is well-positioned to continue its momentum in the aerospace industry.