Howmet forecasts first-quarter profit above estimates on strong aerospace demand

Feb 12 (Reuters) - Howmet Aerospace HWM.N on Thursday forecast first-quarter profit above Wall Street expectations, as the maker of castings and fasteners for aircraft benefited from strong industry demand for planes and parts.

The company's shares rose above 10% in morning trading.

Strong demand for travel has led airlines to grow their fleets, and planemakers responded by boosting production, though it has yet to catch up with airlines' needs, keeping older jets flying longer. Engine makers and other suppliers are juggling competing demands from new plane assembly and maintenance for existing fleets.

The producer of parts for Boeing BA.N and Airbus AIR.PA expects adjusted profit for the current quarter between $1.09 and $1.11 per share, above analysts' estimate of $1.02, according to data compiled by LSEG.

"Revenue growth accelerated in the fourth quarter 2025 to 15% year over year, reflecting healthy growth in the commercial aerospace, defense aerospace, and gas turbines markets," said CEO John Plant.

"In commercial transportation, we anticipate that the first quarter 2026 will be the quarterly low point and then we will begin to see healthy demand in the second half of 2026."

Plant said that Howmet's gas turbine business stands to experience strong growth, benefitting from high demand for electricity generation, especially from natural gas for data centers.

The company posted quarterly revenue of $2.17 billion, above analysts' estimates of $2.13 billion.

Pennsylvania-based Howmet late last year agreed to buy aircraft fastener maker Consolidated Aerospace Manufacturing from Stanley Black & Decker SWK.N for an all-cash price of about $1.8 billion.

For the quarter ended December 31, Howmet reported an adjusted profit of $1.05 per share, compared with 74 cents a year ago. Analysts estimated 97 cents per share.