Updated Version 3 - Driven by Strong Demand for Aircraft Parts, Howmet Raises Its Annual Performance Forecast

Updated share price performance in the 2nd paragraph

Reuters, October 29 - Howmet Aerospace (HWM.N) raised its profit and revenue forecasts for 2026 on Thursday, after the company reported third-quarter results that topped Wall Street expectations, driven by strong demand for aircraft engine parts and industrial gas turbine components.

The U.S. aerospace castings and fasteners supplier’s share price rose 1.5% in early trading.

Howmet is benefitting from robust demand for engine parts as commercial aircraft manufacturers and defense contractors ramp up production; at the same time, the boom in artificial intelligence at data centers is fueling demand for gas turbine blades and vanes.

“The commercial aerospace market continues to perform strongly, thanks to a large backlog of aircraft orders which will underpin projected production growth into 2027 and beyond,” CEO John Plant said.

Plant noted that, given the sizable backlog for engine overhaul and maintenance, Howmet expects the conflict in the Middle East will not have a material impact on engine spare parts demand.

He also emphasized that, boosted by higher output and increased market share, gas turbine revenue grew by 45%, with customer demand having exceeded previous expectations.

The Pittsburgh, Pennsylvania-based company now expects adjusted earnings per share to be between $5.49 and $5.51, up from the previous range of $5.23 to $5.31.

The company expects full-year revenue to be between $10.29 billion and $10.31 billion, compared with the previous outlook range of $10 billion to $10.1 billion.

According to data compiled by London Stock Exchange Group (LSEG), adjusted earnings per share for the third quarter rose 54% year-over-year to $1.46, surpassing analysts’ forecast of $1.37.

Revenue grew 29% to $2.7 billion, while the market had expected $2.59 billion.

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