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HWM Howmet Aerospace

Howmet Aerospace Inc., is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks. Howmet operates 27 facilities in the United States, Canada, Mexico, France, the UK, Hungary and Japan.

Company profile

Ticker
HWM, HWM-P
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
IRS number
250317820

HWM stock data

(
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Calendar

6 May 21
29 Jul 21
31 Dec 21
Quarter (USD)
Mar 21 Dec 20 Sep 20 Jun 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.24B 1.24B 1.24B 1.24B 1.24B 1.24B
Cash burn (monthly) 124M 117M (positive/no burn) (positive/no burn) 2M (positive/no burn)
Cash used (since last report) 491.09M 463.36M n/a n/a 7.92M n/a
Cash remaining 747.91M 775.64M n/a n/a 1.23B n/a
Runway (months of cash) 6.0 6.6 n/a n/a 615.5 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 Jul 21 Lola Felice Lin Common Stock Grant Aquire A No No 0 22,834 0 22,834
2 Jul 21 Joseph S Cantie Common Stock Grant Aquire A No No 34.44 871 30K 22,270
2 Jul 21 Leduc Robert F Common Stock Grant Aquire A No No 34.44 979 33.72K 17,745
30 Jun 21 Oal Tolga I Phantom Stock Units Common Stock Grant Aquire A No No 34.145 320 10.93K 9,837

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

94.7% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 454 451 +0.7%
Opened positions 60 103 -41.7%
Closed positions 57 46 +23.9%
Increased positions 136 119 +14.3%
Reduced positions 156 159 -1.9%
13F shares
Current Prev Q Change
Total value 17.1B 14.47B +18.2%
Total shares 411.45M 407.45M +1.0%
Total puts 417K 925.7K -55.0%
Total calls 4.06M 3.2M +26.7%
Total put/call ratio 0.1 0.3 -64.5%
Largest owners
Shares Value Change
Elliott Investment Management 41.57M $1.34B 0.0%
Vanguard 40.91M $1.31B +1.7%
BLK Blackrock 35.92M $1.15B -0.6%
Orbis Investment Management 28.21M $804.98M 0.0%
Orbis Allan Gray 25.32M $813.64M -10.2%
Boston Partners 18.97M $609.61M +1.8%
STT State Street 18.01M $578.68M -1.7%
Harris Associates L P 16.04M $515.42M -6.9%
Kensico Capital Management 9.37M $301.16M -14.6%
TROW T. Rowe Price 8.63M $277.29M +62.3%
Largest transactions
Shares Bought/sold Change
Lone Pine Capital 0 -7.53M EXIT
JHG Janus Henderson 5.74M +5.62M +4948.9%
BK Bank Of New York Mellon 7.59M +4.4M +137.9%
Egerton Capital 0 -3.97M EXIT
AMP Ameriprise Financial 7.01M +3.52M +101.0%
TROW T. Rowe Price 8.63M +3.31M +62.3%
FMR 3.7M +3.23M +674.0%
D. E. Shaw & Co. 472.83K -3.07M -86.7%
Orbis Allan Gray 25.32M -2.88M -10.2%
Massachusetts Financial Services 6.48M +2.51M +63.1%

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 materially adversely affected by the effects of the COVID-19 pandemic.
  • The markets for Howmet’s products are highly cyclical and are influenced by a number of factors, including global economic conditions.
  • Howmet could encounter manufacturing difficulties or other issues that impact product performance, quality or safety, which could adversely affect Howmet’s reputation, business and financial statements.
  • A material disruption of Howmet’s operations, particularly at one or more of its manufacturing facilities, could adversely affect Howmet’s business.
  • Information technology system failures, cyber attacks 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 that could have a material adverse effect on its financial condition and results of operations.
  • Howmet is dependent on a limited number of suppliers for a substantial portion of raw materials essential to our operations, and supply chain disruptions could have a material adverse effect on our business.
  • Howmet’s business could be adversely affected by increases in the cost or volatility in the availability of raw materials.
  • Howmet could be adversely affected by the loss of key customers or significant changes in the business or financial condition of its customers.
  • Howmet could be adversely affected by reductions in defense spending.
  • Howmet may be unable to realize future targets or goals established for its business, or complete projects, at the levels, projected costs or by the dates targeted.
  • Howmet faces significant competition, which may have an adverse effect on profitability.
  • Howmet may be unable to develop innovative new products or implement technology initiatives successfully.
  • Howmet’s business depends, in part, on its ability to meet increased program demand successfully and to mitigate the impact of program cancellations, reductions and delays.
  • 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.
  • Labor disputes and other employee relations issues could adversely affect Howmet’s business, financial condition or results of operations.
  • 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.
  • 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, regulatory, or market responses to such change.
  • A decline in Howmet’s financial performance or outlook or a deterioration in its credit profile could negatively impact the Company’s access to capital markets, its liquidity 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.
  • Howmet is exposed to fluctuations in foreign currency exchange rates and interest rates, as well as inflation, economic factors, and currency controls in the countries in which it operates.
  • 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.
  • Failure to attract and retain a highly skilled and diverse global workforce, or provide adequate succession plans for key personnel could adversely affect Howmet’s operations and competitiveness.
  • Howmet may be unable to realize the expected benefits from acquisitions, divestitures and strategic alliances.
  • 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.
  • Arconic Corporation may fail to perform under various transaction agreements that were executed as part of the Arconic Inc. Separation Transaction.
  • In connection with the Arconic Inc. Separation Transaction, Arconic Corporation agreed to indemnify us for certain liabilities and we agreed to indemnify Arconic Corporation for certain liabilities. If we are required to pay under these indemnities to Arconic Corporation, our financial results could be negatively impacted. The Arconic Corporation indemnity may not be sufficient to hold us harmless from the full amount of liabilities for which Arconic Corporation is allocated responsibility, and Arconic Corporation may not be able to satisfy its indemnification obligations in the future.
  • The Arconic Inc. Separation Transaction could result in substantial tax liability.
  • The Alcoa Inc. Separation Transaction could result in substantial tax liability.
Management Discussion
  • Sales. Sales were $1,209 in the first quarter of 2021 compared to $1,634 in the first quarter of 2020. The decrease of $425, or 26%, in the first quarter of 2021 was primarily due to lower sales volumes in the commercial aerospace market driven by the impacts of COVID-19, and Boeing 737 MAX (“737 MAX”) and Boeing 787 production declines, partially offset by growth in the commercial transportation, defense aerospace and industrial gas turbine markets as well as favorable product pricing of $17.
  • Cost of goods sold (COGS). COGS as a percentage of Sales was 72.2% in the first quarter of 2021 compared to 72.4% in the first quarter of 2020. The decrease in the first quarter of 2021 was primarily due to net costs savings and favorable product pricing. Additionally, in 2020, the Company recorded total COGS charges of $11 related to fires that occurred at a Fastening Systems’ plant in France in 2019 and at a Forged Wheels plant in Barberton, Ohio in mid-February 2020. The Company recorded total COGS charges of $9 related to the fires at France and Barberton in 2021. The Company anticipates additional charges of approximately $3 to $7 in the second quarter of 2021, with further impacts in subsequent quarters as the businesses continue to recover from the fires.
  • Selling, general administrative, and other expenses (SG&A). SG&A expenses were $65 in the first quarter of 2021 compared to $79 in the first quarter of 2020. The decrease of $14, or 18%, in the first quarter of 2021 was primarily due to overhead cost reductions as well as costs incurred in the first quarter of 2020 associated with the Arconic Inc. Separation Transaction.
Content analysis
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