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Howmet Aerospace (NYSE: HWM) has announced its financial results for the first quarter of 2024, reporting record revenue and significant growth driven primarily by the commercial aerospace market. The company achieved a record first-quarter revenue of $1.82 billion, marking a 14% increase year-over-year, with a notable 23% growth in the commercial aerospace sector.
Financial Highlights
Howmet Aerospace reported a net income of $243 million, or $0.59 per share, for the first quarter of 2024. This represents a substantial improvement from the $148 million, or $0.35 per share, reported in the first quarter of 2023. The net income figure for Q1 2024 includes approximately $5 million in net benefits from special items.
Operating income for the first quarter stood at $369 million, reflecting a 29% year-over-year increase. The operating income margin improved by approximately 240 basis points, reaching 20.2%.
Adjusted Results
Excluding special items, Howmet Aerospace's adjusted net income for the first quarter of 2024 was $238 million, or $0.57 per share, compared to $175 million, or $0.42 per share, in the same period last year. Adjusted EBITDA, also excluding special items, rose by 21% year-over-year to $437 million, driven by robust volume growth in the commercial aerospace market. The adjusted EBITDA margin increased by approximately 150 basis points to 24.0%.
Adjusted operating income, excluding special items, was $370 million, up 27% year-over-year, with an adjusted operating income margin of 20.3%, an improvement of approximately 210 basis points.
Share Repurchase and Dividend
In the first quarter of 2024, Howmet Aerospace repurchased $150 million worth of common stock at an average price of $66.87 per share, retiring approximately 2.2 million shares. As of May 1, 2024, the company had $547 million remaining in its share repurchase authorization.
Additionally, on February 26, 2024, the company paid a quarterly dividend of $0.05 per share on its common stock. Howmet Aerospace plans to increase the quarterly common stock dividend to $0.07 per share starting in the third quarter of 2024, pending the discretion and approval of the Board of Directors.
