HWM Earnings Prediction
The chart below shows how HWM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HWM sees a -6.99% change in stock price 10 days leading up to the earnings, and a +3.80% change 10 days following the report. On the earnings day itself, the stock moves by +4.92%. This data can give you a slight idea of what to expect for the next quarter's release.
HWM Key Earning Data
HWM Earnings Analysis
Positive
Earnings Beat Expectations: Howmet Aerospace Inc. beats earnings expectations with reported EPS of $0.86, exceeding expectations of $0.776.
Record Q1 Revenue Growth: Q1 revenue was a record, increasing by 6% year-over-year, with EBITDA margin at 28.8% and operating margin at 25.3%, up 500 basis points year-over-year.
Positive Free Cash Flow: Free cash flow was a positive $134 million, with all segments showing revenue and EBITDA growth compared to Q4 of 2024.
Aerospace Revenue Growth: Commercial Aerospace revenue grew by 9% year-over-year, driven by demand for engine spares and a record backlog for new, fuel-efficient aircraft.
Defense Aerospace Revenue Surge: Defense Aerospace revenue increased by 19% year-over-year, supported by demand for engine spares and new builds, particularly for the F-35 program.
Record EBITDA and Earnings Growth: EBITDA, EBITDA margin, and earnings per share all reached record levels, with EBITDA up 28% and earnings per share up 51% year-over-year.
Balance Sheet Strengthening: The balance sheet strengthened with a quarter-end cash balance of $537 million and a record low net debt to trailing EBITDA of 1.4x.
Credit Rating Upgrade: Fitch upgraded Howmet's credit rating from BBB to BBB+, reflecting improved financial leverage and strong cash generation.
Stock Repurchase Trend: The company repurchased $125 million of common stock in Q1 and an additional $100 million in April, continuing a trend of stock repurchases for 16 consecutive quarters.
Greenhouse Gas Emission Reduction: Howmet achieved a 21.7% reduction in greenhouse gas emissions compared to its 2019 baseline, meeting its three-year target ahead of schedule.
Negative
Commercial Transportation Decline: Commercial Transportation revenue down 14% year-over-year, indicating challenges in that segment.
Commercial Transportation Challenges: Despite overall revenue growth, the Commercial Transportation segment's performance was a significant drag on overall results.
Forged Wheels Revenue Decline: Forged Wheels revenue decreased 13% year-over-year, highlighting struggles in that product line.
Commercial Truck Outlook Uncertainty: The uncertainty in North American economic conditions and tariffs has created a less favorable outlook for Commercial Truck builds in the second half of the year.
Wide-Body Aircraft Recovery Delays: The wide-body aircraft recovery is still delayed, impacting expectations for certain segments.
Market Uncertainty Impact: While spares demand is strong, the overall market conditions remain uncertain, particularly in North America, which could affect future performance.
HWM FAQs
How does HWM typically perform around its earnings report dates?
HWM's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -6.99% change leading up to the report and a +3.80% change in the 10 days following the release.
Is Howmet Aerospace Inc (HWM) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
HWM Earning Call Sentiment
Howmet Aerospace Inc. (NYSE:HWM) Q1 2025 Earnings Call Transcript
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