Howmet lifts 2025 revenue, profit forecast on strong aircraft demand
Expects $9 billion revenues in 2026, up 10% on year
Third-quarter earnings beat estimates
Adds CEO comments from analyst call in paragraphs 5, 7-8, updates shares in paragraph 3
By Allison Lampert and Nandan Mandayam
Oct 30 (Reuters) - Airplane parts maker Howmet Aerospace HWM.N lifted its annual revenue and profit forecasts on Thursday and said it expects stronger demand underpinned by an increase in production of commercial jets in 2026.
Boeing BA.N and Airbus AIR.PA are ramping up production of their strong-selling single-aisle jets, fueled by long order books and resilient air travel demand, benefiting suppliers like Howmet. At the same time, supply chain challenges and delays on output of widebody jets have weighed on new plane production, keeping older aircraft that require spare parts flying longer.
Howmet shares rose 1.4% in midday trade after it beat analysts' expectations on quarterly revenue and profit.
The Pennsylvania-based maker of castings and fasteners said it expects its revenue to hit about $9 billion in 2026, marking 10% year-on-year growth, as it invests in parts for engines.
PASSING ON TARIFF-RELATED COSTS
Howmet CEO John Plant also told analysts that the company has mitigated the impact of a U.S.-led trade war to around $5 million by passing on higher costs tied to tariffs to customers.
Earlier this month, its biggest customer Boeing received approval to raise monthly output of its top-selling 737 MAX narrowbody jet to 42 a month from 37.
Plant said he expects production of single-aisle jets like the Boeing 737 and rival Airbus A320 to be stronger in 2026 than this year, and expects a higher build rate for widebody A350 and Boeing 787.
"I'm pretty optimistic about commercial aero," Plant said.
Howmet expects 2025 revenue of between $8.18 billion and $8.2 billion, compared to an earlier forecast of $8.08 to $8.18 billion.
It also raised its adjusted profit estimate to between $3.66 per share and $3.68 per share, versus $3.56 to $3.64 previously.
For the third quarter, the company reported an adjusted profit of 95 cents per share, topping Wall Street's expectation of 91 cents per share.
Quarterly revenue of $2.09 billion also came in higher than analysts' estimate of $2.04 billion.
(Reporting by Allison Lampert in Montreal and Nandan Mandayam in Bengaluru; Editing by Vijay Kishore, Jan Harvey and Emelia Sithole-Matarise)
((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters Messaging: allison.lampert.reuters.com@reuters.net/))