Howmet Aerospace Inc. (NYSE:HWM) Q4 2023 Earnings Conference Call February 13, 2024 10:00 AM ET

Company Participants

Paul Luther - Vice President, Investor Relations

John Plant - Chairman and Chief Executive Officer

Ken Giacobbe - Executive Vice President and Chief Financial Officer

Conference Call Participants

Douglas Harned - Bernstein

Robert Stallard - Vertical Research

Peter Arment - Baird

Myles Walton - Wolfe Research

Sheila Kahyaoglu - Jefferies

Noah Poponak - Goldman Sachs

Scott Mikus - Melius Research

Seth Seifman - JPMorgan

David Strauss - Barclays

Operator

Hello and welcome to the Howmet Aerospace Fourth Quarter 2023 and Full Year Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to hand the call over to Paul Luther, Vice President of Investor Relations. Please go ahead.

Paul Luther

Thank you MJ. Good morning and welcome to the Howmet Aerospace fourth year and full year 2023 results conference call. I'm joined by John Plant, Executive Chairman and Chief Executive Officer; and Ken Giacobbe, Executive Vice President and Chief Financial Officer. After comments by John and Ken, we will have a question-and-answer session.

I would like to remind you that today's discussion will contain forward-looking statements relating to future events and expectations. You can find factors that could cause the company's actual results to differ materially from these projections listed in today's presentation and earnings press release and in our most recent SEC filings.

In today's presentation references to EBITDA, operating income, and EPS mean adjusted EBITDA excluding special items, adjusted operating income excluding special items, and adjusted EPS excluding special items. These measures are among the non-GAAP financial measures that we've included in our discussion.

Reconciliations to the most directly comparable GAAP financial measures can be found in today's press release and in the appendix in today's presentation.

With that I'd like to turn the call over to John.

John Plant

Thanks PT and welcome everyone to the 2023 year-end results call. If you move to slide four, please. And I'll start off by saying Howmet's fourth quarter results were indeed very strong. Revenue, EBITDA, EBITDA margin, and earnings per share all met or exceeded the high end of guidance. More importantly, we continue to outgrow each of our respective markets.

Specifically, revenue was $1.73 billion, an increase of 14% year-over-year, and with commercial aerospace up 22%. EBITDA was $398 million, which was an increase of 18% year-on-year, while EBITDA margin was in line with Q3 at a solid 23%. Second half EBITDA margin was 30 basis points greater than the full year average, and Q4 earnings per share increased by a significant 39%.