Howmet raises 2025 forecast on robust aerospace demand

Howmet Aerospace

31/07/2025 13:04

July 31 (Reuters) - Howmet Aerospace HWM.N raised full-year forecast for profit and revenue on Thursday, betting on strong demand for its fasteners and engine components as plane makers ramp up jet production.

Shares of the aerospace supplier, which counts Airbus AIR.PA and Boeing BA.N as its customers, jumped 3.5% in premarket trading.

Growing demand for air travel has led airlines to order more new jets, prompting plane makers to accelerate production, benefiting suppliers such as Howmet.

"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 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 its 2025 adjusted profit forecast to between $3.56 and $3.64 per share, compared with its previous range of $3.36 to $3.44 per share.

Second-quarter revenue rose 9.2% to $2.05 billion, driven by an 8% increase in commercial aerospace sales.

On an adjusted basis, the company earned 91 cents per share, up from 67 cents per share a year ago.

 (Reporting by Utkarsh Shetti in Bengaluru; Editing by Shilpi Majumdar)

 ((utkarshumesh.shetti@thomsonreuters.com))