Strong Revenue Growth
Revenue for Q3 increased by 14%, with Commercial Aerospace up by 15% and Defense Aerospace up by 24%. EBITDA was up 26% and operating income increased by 29%.
Significant Cash Flow and Share Buybacks
Cash flow was robust at $423 million after capital expenditures. The company deployed $200 million in share buybacks in Q3, with an additional $100 million in October, totaling $600 million year-to-date.
Debt Reduction and Financial Health
The company paid off $63 million of U.S. term loan early with net leverage now at 1.1x net debt-to-EBITDA. Dividend payments increased by 20% versus the prior quarter.
Positive Market Outlook
Air travel continues to grow, with a strong backlog for commercial aircraft. Defense sales remain strong, and the demand for Industrial Gas Turbines (IGT) is robust.
S&P Rating Upgrade
S&P upgraded the company's rating from BBB to BBB+, indicating improved financial leverage and strong cash generation.