Howmet shares rose 5.4% after results, with the quarter’s revenue, EBITDA margin, and EPS all above the high end of company guidance. Organic revenue growth accelerated to 25%, while strong aerospace and gas-turbine demand drove higher earnings.
- Revenue increased 29% to $2.7 billion, or 25% excluding the net impact of this year’s transactions; organic growth accelerated from 21% in Q2.
- Adjusted EBITDA rose 43% to $879 million, with a 32.5% margin, up 310 basis points year over year. EPS was $1.46, up 54%.
- Commercial aerospace revenue grew 32% (27% organically), and gas-turbine revenue grew 45%. Spares revenue increased 30% to approximately $570 million.
- Free cash flow was $562 million after $147 million of capital expenditure. Howmet repurchased $500 million of shares in the quarter and ended with net debt of 1.3 times trailing EBITDA.
- Fastening Systems’ EBITDA margin fell 140 basis points year over year and 70 basis points sequentially, reflecting the increased contribution from CAM.
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