July 31 (Reuters) - Howmet Aerospace ( HWM ) raised
full-year forecasts and topped second-quarter estimates on
Thursday, buoyed by strong demand for its fasteners and engine
components as plane makers ramp up jet production.
Growing demand for air travel has led airlines to order more
new jets, prompting plane makers to accelerate production,
benefiting aerospace suppliers such as Howmet, which counts
Airbus and Boeing ( BA ) as its customers.
"We acknowledge positive signs for narrow-body build rate
increases, particularly on the Boeing 737 MAX," Howmet CEO John
Plant said in a statement.
Boeing ( BA ) delivered 206 737 MAX jets through the first half of
the year, compared with 135 a year earlier.
Some prior delays as a result of supply-chain bottlenecks
has also forced airlines to extend the lifespan of older
aircraft, resulting in a surge in orders for aftermarket parts.
However, U.S. President Donald Trump's broad tariffs on
aluminum and steel, alongside levies on trading partners, have
stressed the fragile aerospace supply chain and pushed up costs.
Pennsylvania-based Howmet has said it intends to pass on
inflated costs to customers through price hikes in an attempt to
cushion the hit from tariffs.
It expects 2025 revenue to be between $8.08 billion and
$8.18 billion, compared with its earlier forecast of $7.88
billion and $8.18 billion.
Howmet also raised 2025 adjusted profit forecast to between
$3.56 and $3.64 per share, from $3.36 to $3.44 per share it
projected earlier.
Second-quarter revenue rose 9.2% to $2.05 billion, driven by
an 8% increase in commercial aerospace sales. Analysts on
average estimated $2.01 billion, according to data compiled by
LSEG.
On an adjusted basis, the company earned 91 cents per share,
also above expectations of 87 cents per share.