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Howmet Aerospace forecasts upbeat first-quarter on strong parts demand
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Howmet Aerospace forecasts upbeat first-quarter on strong parts demand
Feb 13, 2025 5:41 AM

Feb 13 (Reuters) - Howmet Aerospace ( HWM ) on Thursday

forecast first-quarter revenue and profit above Wall Street

estimates while posting higher-than-expected quarterly results,

driven by strong demand for its parts and aftermarket services

from planemakers and carriers.

The growing demand for air travel has led airlines to expand

their fleet, prompting aircraft manufacturers to accelerate

production.

However, delays in the delivery of new planes have forced

airlines to extend the lifespan of older aircraft, resulting in

a surge in orders for lucrative aftermarket parts from suppliers

such as Howmet.

Pennsylvania-based Howmet expects first-quarter revenue

between $1.925 billion and $1.945 billion, the midpoint of which

is above analysts' estimates of $1.918 billion, according to

data compiled by LSEG.

It expects first-quarter adjusted earnings between 75 cents

and 77 cents per share, ahead of estimates of 72 cents.

"The outlook for commercial aerospace remains solid with

rising OEM production rates supported by strong demand as well

as continued healthy growth in engine spares demand," CEO John

Plant said in a statement.

Howmet, which supplies to both Airbus and

Boeing ( BA ), however, expects 2025 revenue slightly below

estimates, setting a cautious tone for the year.

It sees 2025 revenue between $7.93 billion and $8.13

billion, the midpoint of which is marginally shy of

expectations.

"We continue to employ a cautious view on underlying build

rates in our guidance," Plant said.

Howmet expects adjusted profit per share for the year

between $3.13 and $3.21. Analysts had expected $3.21.

For the fourth quarter ended December 31, the company's

overall sales rose 9% to $1.89 billion, above estimates of $1.88

billion.

Adjusted profit per share in the reported quarter was 74

cents, above expectations of 72 cents.

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