US engine components manufacturer Howmet Aerospace further raised its full-year earnings guidance on strong original equipment and spares demand from commercial aerospace and industrial gas turbine (IGT) manufacturers.
Howmet raised its full-year revenue guidance to $10.29bn-10.31bn, a second quarterly increase from guidance of $10bn-10.1bn set in August, and a forecast of $9.575bn-9.725bn in May. Howmet also forecast 2027 revenue at approximately $11.5bn, representing a 12pc increase over the revised 2026 figure.
Howmet's engine product sales increased to $1.45bn in the third quarter, up by a third from a year earlier, while sales in the fastening systems division were $630mn, up by 41pc year on year, both driven by commercial aerospace and defence markets.
Third-quarter engineered structures sales were $295mn, a 4pc decrease on the year due to the divestiture of its Savannah disk forging facility. Excluding the divestiture, revenues grew by 8pc.
Forged wheels revenue was $327mn in the third quarter, up by 32pc on the year because of higher volumes in the commercial transportation market and higher aluminium cost pass-throughs.
Overall revenue hit $2.7bn, notably underpinned by a 45pc increase in sales to the IGT market.
Spares demand from commercial aerospace remains strong due to durability issues on narrowbody engines and shop-visit requirements, while the record backlog of aircraft orders will sustain original equipment demand.
Howmet is poised to further increase capacity for GE Aerospace, which will take two years to install with a "multi-year runway after that", Howmet chief executive John Plant said.
Artificial intelligence and data centre power requirements are driving IGT demand, as turbine manufacturers' order books are now stretching out to 2031-32, Plant said.
