Howmet Aerospace raises full-year outlook after second-quarter earnings beat

Howmet Aerospace raised its full-year outlook after reporting second-quarter results that beat Wall Street estimates, supported by strong demand across commercial aerospace, gas turbines and defense aerospace, along with wider margins and robust cash generation. Adjusted earnings were $1.33 a share, above the $1.25 estimate, while revenue rose 24% year over year to $2.547 billion, topping the $2.428 billion estimate. Organic growth was 21%, and GAAP EPS increased to $1.33 from $1 a year earlier. Adjusted EBITDA climbed 39% to $817 million, with margin expanding 340 basis points to 32.1%, while GAAP operating income rose 36% to $711 million and operating margin improved to 27.9%. Commercial aerospace revenue increased 28%, gas turbines rose 38% and defense aerospace grew 11%, as management pointed to record aircraft backlogs, higher engine spares demand and continued strength in defense and gas turbines, with commercial transportation beginning to recover. The company raised full-year adjusted EPS guidance to $5.23-$5.31 from $4.88-$5, lifted sales guidance to $10 billion-$10.1 billion from $9.575 billion-$9.725 billion, and projected free cash flow of $1.85 billion-$1.95 billion.