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Howmet Aerospace (HWM)

Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace and transportation industries. The Company's primary businesses focus on jet engine components, aerospace fastening systems, and titanium structural parts necessary for mission-critical performance and efficiency in aerospace and defense applications, as well as forged wheels for commercial transportation. With nearly 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft to operate with a lower carbon footprint. In 2019, the businesses of Howmet Aerospace reported annual revenue of over $7 billion.

Company profile

Ticker
HWM
Exchange
Website
CEO
Timothy Donald Myers
Employees
Incorporated
Location
Fiscal year end
Former names
ALCOA INC, ALCOA INC., ALUMINUM CO OF AMERICA, Arconic Inc.
SEC CIK
Subsidiaries
Howmet Domestic LLC • Howmet Securities LLC • Howmet International Inc. • Howmet Holdings Corporation • Howmet Japan LTD • Howmet Castings & Services, Inc. • Howmet Corporation • Howmet International Holding Company LLC • Howmet Holdings Limited • Howmet-Köfém Kft ...
IRS number
250317820

HWM stock data

Analyst ratings and price targets

Last 3 months

Calendar

4 Aug 22
16 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 538M 538M 538M 538M 538M 538M
Cash burn (monthly) (no burn) 14.83M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 23.31M n/a n/a n/a n/a
Cash remaining n/a 514.69M n/a n/a n/a n/a
Runway (months of cash) n/a 34.7 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
29 Jul 22 Michael Niem Chanatry Phantom Stock Units Common Stock Grant Acquire A No No 36.51 272 9.93K 41,185
15 Jul 22 Lola Felice Lin Common Stock Payment of exercise Dispose F No No 33.32 2,637 87.86K 32,620
5 Jul 22 Leduc Robert F Common Stock Grant Acquire A No No 31.1 1,085 33.74K 26,042
5 Jul 22 Joseph S Cantie Common Stock Grant Acquire A No No 31.1 964 29.98K 30,108
30 Jun 22 Michael Niem Chanatry Phantom Stock Units Common Stock Grant Acquire A No No 31.1 312 9.7K 41,056
94.1% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 503 479 +5.0%
Opened positions 80 78 +2.6%
Closed positions 56 66 -15.2%
Increased positions 169 130 +30.0%
Reduced positions 151 168 -10.1%
13F shares Current Prev Q Change
Total value 16.68B 14.85B +12.3%
Total shares 391.09M 402.95M -2.9%
Total puts 620K 449.8K +37.8%
Total calls 2.48M 3.21M -22.7%
Total put/call ratio 0.2 0.1 +78.3%
Largest owners Shares Value Change
Elliott Investment Management 41.07M $1.48B 0.0%
Vanguard 40.92M $1.47B -0.8%
BLK Blackrock 39.52M $1.42B +10.9%
Boston Partners 20.39M $732.36M -1.0%
Orbis Investment Management 18.49M $0 0.0%
Massachusetts Financial Services 18.01M $647.16M +4.8%
STT State Street 17.62M $633.12M -0.2%
Orbis Allan Gray 17.16M $616.75M -7.2%
Farallon Capital Management 13.63M $489.73M -17.6%
JHG Janus Henderson 10.66M $383.01M +4.4%
Largest transactions Shares Bought/sold Change
TROW T. Rowe Price 3.26M -7.09M -68.5%
BLK Blackrock 39.52M +3.87M +10.9%
Kensico Capital Management 7.32M -3.47M -32.2%
Farallon Capital Management 13.63M -2.91M -17.6%
Norges Bank 0 -2.45M EXIT
JPM JPMorgan Chase & Co. 3.4M +2.34M +219.4%
Adage Capital Partners GP, L.L.C. 3.97M -2.29M -36.6%
Marshall Wace 0 -1.95M EXIT
Millennium Management 1.72M +1.55M +938.9%
Capitolis Advisors 0 -1.44M EXIT

Financial report summary

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Competition
Kaiser AluminumAlerisConstellium SE
Risks
  • Our business, results of operations, financial condition and/or cash flows have been and could continue to be adversely impacted materially by the continued effects of the COVID-19 pandemic.
  • The markets for Howmet’s products are cyclical and are influenced by a number of factors, including global economic conditions.
  • A material disruption of, or manufacturing difficulties at, Howmet’s manufacturing operations could adversely affect Howmet’s business.
  • Howmet is dependent on a limited number of suppliers for materials and services essential to our operations, including raw materials, and supply chain disruptions could have a material adverse effect on our business.
  • Howmet’s business could be adversely affected by increases in raw material, manufacturing and operating costs due to inflation and other market forces or governmental constraints.
  • Howmet’s business depends, in part, on its ability to successfully meet increased program demand, production targets and commitments.
  • Failure to attract and retain a skilled global workforce or to provide adequate succession planning for key personnel could adversely affect Howmet’s operations and competitiveness.
  • Howmet could be adversely affected by the loss of key customers or significant changes in the business or financial condition of its customers.
  • Information technology system failures, cyberattacks and security breaches may threaten the integrity of Howmet’s intellectual property and other sensitive information, disrupt its business operations, and result in reputational harm and other negative consequences having a material adverse effect on its financial condition and results of operations.
  • Howmet faces significant competition, which may have an adverse effect on profitability.
  • A decline in Howmet’s financial performance or outlook could negatively impact its credit profile, its access to capital markets and its borrowing costs.
  • Howmet’s business and growth prospects may be negatively impacted by limits in its capital expenditures.
  • An adverse decline in the liability discount rate, lower-than-expected investment return on pension assets and other factors could adversely affect Howmet’s results of operations or amount of pension funding contributions in future periods.
  • Dividends and share repurchases fall within the discretion of our Board of Directors, depend on a number of factors, and are subject to limits under the Company’s Credit Agreement.
  • Product liability, product safety, personal injury, property damage, and recall claims and investigations may materially affect Howmet’s financial condition and damage its reputation.
  • Our business may be adversely affected if we fail to comply with government contracting regulations.
  • Howmet’s global operations expose Howmet to risks that could adversely affect its business, financial condition, results of operations, cash flows or the market price of its securities.
  • Howmet may face challenges to its intellectual property rights which could adversely affect the Company’s reputation, business and competitive position.
  • Howmet may be exposed to significant legal proceedings, investigations or changes in U.S. federal, state or foreign law, regulation or policy.
  • Unanticipated changes in Howmet’s tax provisions or exposure to additional tax liabilities could affect Howmet’s future profitability.
  • Howmet is subject to privacy and data security/protection laws in the jurisdictions in which it operates and may be exposed to substantial costs and liabilities associated with such laws and regulations.
  • Labor disputes and other employee relations issues could adversely affect Howmet’s business, financial condition or results of operations.
  • Failure to comply with domestic or international employment and related laws could result in penalties or costs that could have a material adverse effect on Howmet’s business results.
  • Howmet is exposed to environmental, health and safety risks and is subject to a broad range of health, safety and environmental laws and regulations which may result in substantial costs and liabilities.
  • Howmet may be affected by global climate change or by legal and regulatory responses to such change.
  • The Arconic Inc. Separation Transaction could result in substantial tax liability.
  • Anti-takeover provisions could prevent or delay a change in control of Howmet, including a takeover attempt by a third party and limit the power of Howmet’s shareholders.
Management Discussion
  • Sales. Sales were $1,393 in the second quarter of 2022 compared to $1,195 in the second quarter of 2021 and $2,717 in the six months ended June 30, 2022 compared to $2,404 in the six months ended June 30, 2021. The increase of $198, or 17%, in the second quarter of 2022 was primarily due to higher sales of 34% from the commercial aerospace market, an increase in material cost pass through of approximately $60, and favorable product pricing of $19. The increase of $313, or 13%, in the six months ended June 30, 2022 was primarily due to higher sales of 31% from the commercial aerospace market, an increase in material cost pass through of approximately $100, and favorable product pricing of $33, partially offset by lower sales in the defense aerospace market.

Content analysis

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Positive
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H.S. freshman Avg
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Removed: adjustment, building, gain, historically, iv, maximum, preserve, reducing, weighted