May 7 (Reuters) - Howmet Aerospace ( HWM ) on Thursday
reported first-quarter profit and revenue above estimates and
lifted its annual forecast on the back of growth in its
commercial aerospace and industrial gas turbine businesses.
The aircraft parts maker's shares rose more than 12% before
the bell.
U.S. aerospace suppliers are gaining from robust demand as
Boeing ( BA ) and Airbus ramp up aircraft production.
At the same time, governments worldwide are boosting defense
spending, with conflicts in Ukraine and Iran draining missile
stockpiles.
"Commercial aerospace OEM (original equipment manufacturer)
customers continue to target production rate increases supported
by record backlogs," CEO John Plant said in a statement.
"Defense markets remain healthy, while the gas turbines
market is also very active."
The Pittsburgh-based company now expects full-year 2026
revenue to range between $9.58 billion and $9.73 billion, up
from its previous forecast range of $9 billion to $9.2 billion.
The midpoint of its new annual adjusted profit forecast lies
at $4.94 per share, compared with a midpoint of $4.45 previously
expected.
However, Plant, while noting the increasing needs for engine
spares, said "an effect could be felt from the Iranian conflict"
during the first quarter.
The aerospace industry is still dealing with supply-chain
issues that have limited output. Demand from aviation end
markets is also affected as the U.S.-Israeli war on Iran drives
up fuel costs and disrupts transport.
"We see signs of demand improvement in commercial
transportation, although we remain cautious," Plant added.
Quarterly adjusted profit rose 42% from a year ago to $1.22
per share, compared with analysts' estimates of $1.11 per share,
according to data compiled by LSEG.
Revenue for the three months ended March 31 rose 19% to
$2.31 billion, beating estimates of $2.24 billion.