Howmet Aerospace Inc. reported third quarter 2024 revenue of $1.84 billion, an 11% increase year-over-year, primarily driven by 17% growth in the commercial aerospace market. Adjusted EBITDA, excluding special items, grew 27% year-over-year to $487 million, resulting in an adjusted EBITDA margin of 26.5%, up approximately 350 basis points.
The company achieved adjusted diluted earnings per share of $0.71, a 54% increase from the prior year period, and generated a third-quarter record of $162 million in free cash flow. Segment performance was strong, with Engine Products revenue up 18% to $945 million and Segment Adjusted EBITDA up 40% to a record $307 million, achieving a 32.5% margin.
Howmet Aerospace raised its full-year 2024 guidance, projecting revenue between $7.39 billion and $7.43 billion, adjusted EBITDA between $1.885 billion and $1.905 billion, and adjusted earnings per share between $2.65 and $2.67. The company also provided preliminary 2025 revenue guidance, anticipating approximately 7.5% year-over-year growth.
The company continued its capital allocation strategy, repurchasing $100 million of common stock in the third quarter and an additional $90 million in October 2024, bringing year-to-date repurchases to $400 million. Debt reduction efforts year-to-date through the third quarter are expected to reduce annualized interest expense by approximately $33 million.
Management expressed confidence in the robust demand outlook for commercial aerospace in 2025, driven by healthy air traffic growth and a large aircraft order backlog. The company also expects to increase its common stock dividend by 25% to $0.10 per share in the first quarter of 2025, subject to Board approval.
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