Howmet faces risks from Boeing's quality control issues and labor stoppages, impacting aircraft production and potentially affecting Howmet's future results. Global economic and financial market conditions, changes in end markets, cyberattacks, customer financial issues, manufacturing problems, supplier issues, workforce challenges, and legal proceedings (environmental, product liability, safety, tax, and antitrust) pose significant risks. Uncertainties exist regarding the recoverability of goodwill, intangible assets, and deferred tax assets.
Financial Upside
Howmet's sales increased 11% in Q3 2024 and 13% in the first nine months of 2024, driven by higher volumes in commercial aerospace, defense, and industrial markets. Favorable product pricing and lower COGS percentages are also positive factors. Improved financial leverage and market demand are cited as reasons for recent credit rating upgrades. The company has a share repurchase program with remaining authorization.
