Howmet Aerospace Inc. (HWM) Q4 2022 Earnings Call Transcript

Howmet Aerospace Inc. (NYSE:HWM) Q4 2022 Earnings Conference Call February 14, 2023 10:00 AM ET

Company Participants

Paul Luther - Vice President of Investor Relations

John Plant - Executive Chairman & Chief Executive Officer

Ken Giacobbe - Executive Vice President & Chief Financial Officer

Conference Call Participants

Robert Stallard - Vertical Research

Kristine Liwag - Morgan Stanley

Myles Walton - Wolfe Research

Seth Seifman - JPMorgan

David Strauss - Barclays

Robert Spingarn - Melius Research

Ron Epstein - Bank of America

Gautam Khanna - Cowen

Matt Akers - Wells Fargo

Operator

Good morning, and welcome to the Howmet Aerospace Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in a listen-only mode today. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded today.

I would now like to turn the conference over to Paul Luther, Vice President of Investor Relations. Please, go ahead, sir.

Paul Luther

Thank you, Joe. Good morning, and welcome to the Howmet Aerospace fourth quarter and full year 2022 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 and EPS mean adjusted EBITDA, 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, P.T., and welcome, everybody, to the Howmet Q4 earnings call. Let's start by dealing with the headline numbers on slide four. For the fourth quarter, revenue accelerated as we exited the year, and it was above the high end of the guide at $1.51 billion, up 18% year-on-year.

Commercial aerospace continues to be strong and was up 29% in the quarter. EBITDA was $336 million, at the high end of the guide. Revenue and EBITDA continued to improve sequentially for the sixth consecutive quarter. The strong operating EBITDA was mitigated by a couple of below-the-line items that Ken will cover in his commentary.