Howmet Aerospace Inc. reported significant financial performance improvements for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023. For Q3 2024, the company achieved sales of $1,835 million, an 11% increase from $1,658 million in Q3 2023. For the nine months, sales rose 13% to $5,539 million from $4,909 million. The cost of goods sold (COGS) as a percentage of sales decreased, reflecting improved operational efficiency, with Q3 2024 COGS at 68.3%, down from 71.4% in Q3 2023.

Operating income for Q3 2024 was $421 million, up from $307 million in the prior year, while net income surged to $332 million from $188 million, resulting in earnings per share (EPS) of $0.81, compared to $0.45 in Q3 2023. For the nine-month period, net income increased to $841 million from $529 million, with EPS rising to $2.04 from $1.27.

The company's performance was bolstered by strong demand in the commercial aerospace sector, which accounted for 52% of revenue, although this was a decrease from 60% in 2019. The Engine Products segment saw a notable increase in third-party sales, rising 18% in Q3 2024 to $945 million, and 14% for the nine months to $2,763 million. The Fastening Systems segment also reported a 13% increase in Q3 sales, driven by growth in commercial aerospace.

Howmet's total Segment Adjusted EBITDA for Q3 2024 was $511 million, up from $402 million in Q3 2023, with contributions from all segments. The Engine Products segment's EBITDA margin improved significantly, reflecting operational efficiencies and increased volumes.

Strategically, Howmet completed the acquisition of Camcraft LTD in October 2024 for approximately $5 million, enhancing its capabilities in the investment casting process. The company also faced challenges, including quality control issues at Boeing and a labor union work stoppage, which impacted production rates.

Cash and cash equivalents decreased to $475 million as of September 30, 2024, from $610 million at the end of 2023, while total assets increased to $10,558 million. Long-term debt was reduced to $3,393 million from $3,500 million, reflecting ongoing debt management efforts.

The company declared dividends of $0.16 per share for Q3 2024, up from $0.09 in Q3 2023, and continued its share repurchase program, with approximately $2,297 million remaining in Board authorization as of October 31, 2024.