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.