Honeywell tops first-quarter results on aerospace strength
HON
(Reuters) -Honeywell's first-quarter revenue and profit beat Wall Street estimates on Tuesday, as a shortage of new jets fueled demand for its aerospace parts and aircraft maintenance services.
Shares of the industrial and aerospace giant rose 5.5% in premarket trading as the company also raised the lower end of its annual profit expectation.
Honeywell's forecast, which accounts for the impact of tariffs and global uncertainty on demand, indicates confidence in its ability to cushion the hit, thanks to rising sales for firms that supply parts and provide jet maintenance services.
The airline industry has had to fly older, more maintenance-intensive planes, while an attempted production rampup by planemakers has resulted in a surge of orders for parts suppliers.
Meanwhile, U.S. President Donald Trump's broad levies on metals such as aluminum and steel along with steep tariffs on countries including China has threatened to raise costs for the industry and pressure an already-strained supply chain.
Honeywell now expects adjusted profit per share of between $10.20 and $10.50 for 2025, compared to its earlier forecast of between $10.10 and $10.50.
The company, however, marginally narrowed its sales forecast for the year and now expects between $39.6 billion and $40.5 billion, compared to its prior guidance of $39.6 billion and $40.6 billion.
Sales at its aerospace division, its biggest revenue generator, rose about 14% to $4.17 billion in the first quarter.
Honeywell in February announced it would separate the automation and aerospace businesses, a split it intends to complete in the second half of 2026.
Its total quarterly sales rose about 8% to $9.82 billion, compared to expectation of $9.59 billion, according to data compiled by LSEG. Adjusted profit per share came in at $2.51, beating Street estimate of $2.21.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Arun Koyyur)
By Utkarsh Shetti