Q2 2024 Howmet Aerospace Inc Earnings Call Transcript
Key Points
- Year-over-year revenue growth of 14%, with commercial aerospace growth at an outstanding 27%.
- EBITDA was $483 million with a margin rate of 25.7%, and operating income was $414 million with a margin of 22%.
- Earnings per share increased by 52% year over year to $0.67.
- Free cash flow was strong at $342 million, resulting in a quarter-end cash balance of $752 million.
- Net debt to EBITDA improved to a record low of 1.7 times, with all long-term debt being unsecured and at fixed rates.
- Commercial transportation revenue was down 4%, reflecting market weakness.
- Forged wheels revenue decreased by 7% year over year due to challenging market conditions.
- The company faces constraints in sales due to the ability of aircraft manufacturers to build and deliver aircraft consistently.
- There are concerns about Boeing's build rates and inventory positions, which could impact Howmet's future performance.
- Increased capital expenditures of $30 million for 2024, raising the total to $320 million, which could impact free cash flow.
Good day and welcome to the Howmet Aerospace second quarter of 2024 earnings call. Please note that today's event is being recorded. (Operator Instructions) Also, please be aware that today's call is being recorded.
I would like to now turn the call over to Paul Luther, Vice President of Investor Relations. Please go ahead.
Thank you, Joe. Good morning and welcome to the Howmet Aerospace second quarter 2024 results conference call. I'm joined by John Plant, Executive Chairman and Chief Executive Officer; and Ken Giacobbe, Executive Vice President and Chief Financial Officer.
After comments by John and Ken, we will have a question and answer session. I would like to remind you that today's discussion will contain forward-looking statements relating to future events and expectations. You can find factors that could cause the Company's actual results to differ materially from these projections listed in today's presentation and earnings press release and in our most recent
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