Corrected: UPDATE 4-Howmet Aerospace boosts 2026 forecasts as rising jet production fuels demand for parts (Aug 6)
CORRECTED-UPDATE 4-Howmet Aerospace boosts 2026 forecasts as rising jet production fuels demand for parts (Aug 6) Corrects August 6 story to fix CEO's name in paragraph 5,7 and 13 to John Plant from John Flannery
By Aatreyee Dasgupta and Allison Lampert
Aug 6 (Reuters) - Howmet Aerospace HWM.N raised its 2026 profit and revenue forecasts on Thursday, as robust demand from planemakers for parts to support higher jet production is benefiting the company, sending its shares up 3% in morning trading.
The U.S. aerospace castings and fasteners supplier now expects adjusted profit per share in the range of $5.23 to $5.31, compared with its previous forecast of $4.88 to $5 per share.
It forecasts annual revenue to range between $10 billion and $10.1 billion, compared with its prior forecast of $9.58 billion to $9.73 billion.
Planemakers Boeing BA.N and Airbus AIR.PA are ordering more parts to support higher jet production, benefiting Pittsburgh-based Howmet.
CEO John Plant said in a post-earnings call that Howmet expected "large increases" in widebody aircraft build rates over the next two to three years, citing plans to raise Boeing's 787 production and growing confidence Airbus will increase A350 output.
Howmet also benefited from growing demand for gas-turbine blades used to power data centers.
Recently announced power-generation projects tied to data center demand are likely to support growth through 2030, Plant said.
Quarterly adjusted profit rose 46% from a year ago to $1.33 per share, compared with analysts' estimate of $1.25, according to data compiled by LSEG.
Revenue rose 24% from a year ago to $2.55 billion, compared with an estimate of $2.43 billion.
While analysts say aerospace supply chains have improved since the COVID-19 pandemic, with overall deliveries rising this year, concerns remain about parts like seats, engines and windows, along with rising demand outstripping capacity.
Demand, along with sweeping consolidation in the fastener business from dozens of players during the early 2000s to a handful of large companies today, is driving up parts' prices, supporting Howmet's margins.
Howmet doubled prices on some fasteners in recent months, according to two senior industry sources familiar with the matter.
Howmet's fastener business is beginning to see demand from higher anticipated Boeing 787 production rates, while synergies from fastener maker CAM's acquisition are expected to primarily materialize in 2027, Plant said.
(Reporting By Allison Lampert and Aatreyee Dasgupta; Editing by Pooja Desai)
((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters Messaging: allison.lampert.reuters.com@reuters.net/))
