Howmet Aerospace Inc. shares surged by 7.5% following the release of second-quarter financial results that exceeded analysts' expectations.

The company reported earnings of $0.67 per share on revenues of $1.88 billion, surpassing estimates of $0.60 per share and $1.84 billion in sales.

Revenue for the quarter reached $1.88 billion, marking a 14% increase compared to the same period last year and exceeding the consensus estimate of $1.83 billion.

A significant driver of this growth was the 27% increase in commercial aerospace sales year over year.

CEO John Plant emphasized the strong demand for air travel and an aging aircraft fleet as key factors contributing to the robust outlook for commercial aerospace.

The company generated $342 million in free cash flow, which allowed it to repurchase $60 million in stock and reduce net debt.

Following the share buyback, Howmet's board authorized a $2 billion increase in its buyback program and raised its dividend by 60% to $0.08 per share for the third quarter of 2024.

For the full year, Howmet projected earnings between $2.53 and $2.57 per share and sales of $7.4 billion to $7.48 billion, exceeding prior Wall Street forecasts.

Looking ahead, the company anticipates third-quarter 2024 EPS to be between $0.63 and $0.65, surpassing the consensus estimate of $0.60.

Howmet is positioned to benefit from the increasing global demand for aircraft components, especially as Boeing and Airbus face supply challenges.

John Plant attributed the company's success to strong results across all business segments and effective navigation of industry challenges.