Howmet Aerospace Inc. reported a strong financial performance for the fiscal year ending December 31, 2024, with total sales reaching $7.43 billion, a 12% increase from $6.64 billion in 2023. The company's net income also rose significantly to $1.16 billion, or $2.81 per diluted share, compared to $765 million, or $1.83 per diluted share, in the previous year. This growth was primarily driven by higher volumes in the commercial aerospace and defense sectors, as well as favorable product pricing, despite a decline in the commercial transportation market.
The company experienced notable changes in its revenue composition, with the aerospace sector accounting for approximately 68% of total sales in 2024, up from 64% in 2023. The commercial aerospace market alone contributed 52% of total revenue, reflecting ongoing demand for both narrow and wide-body aircraft. However, quality control issues at Boeing and a labor union work stoppage impacted production rates, which are expected to have a material effect on Howmet's financial performance in the near term.
Strategically, Howmet has focused on enhancing its operational efficiency and capitalizing on market opportunities. The company repurchased approximately 6 million shares of its common stock for about $500 million under its share repurchase program. Additionally, Howmet made significant investments in capacity expansions and automation projects, with capital expenditures totaling $321 million in 2024. The company also completed the acquisition of Camcraft LTD in October 2024, further strengthening its Engine Products segment.
Operationally, Howmet's workforce increased to approximately 23,930 employees across 22 countries by the end of 2024, reflecting a net increase in headcount to support anticipated revenue growth. The company generated 71% of its sales from North America and 23% from Europe, with ongoing efforts to expand its geographic footprint in Asia, particularly in Japan and China. The Engine Products segment reported a 14% increase in sales, driven by growth in the commercial aerospace and industrial gas turbine markets.
Looking ahead, Howmet's management projects continued sales growth in 2025, particularly in the commercial aerospace sector, with expectations for earnings per share to increase as operational performance improves. The company remains focused on maintaining liquidity and capital efficiency while navigating potential challenges related to market conditions, inflation, and geopolitical factors.
About Howmet Aerospace Inc.
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