By Utkarsh Shetti (Reuters) -Honeywell raised its annual forecasts after beating Wall Street expectations for second-quarter results on Thursday, buoyed by strong demand for its aerospace parts and maintenance services. A shortage of new jets has benefited the company that provides aircraft maintenance and repair services to airlines, which have been stuck with an older, […]
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Honeywell raises 2025 forecasts on sustained demand for aerospace parts, services
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By Utkarsh Shetti
(Reuters) -Honeywell raised its annual forecasts after beating Wall Street expectations for second-quarter results on Thursday, buoyed by strong demand for its aerospace parts and maintenance services.
A shortage of new jets has benefited the company that provides aircraft maintenance and repair services to airlines, which have been stuck with an older, cost-intensive fleet.
But planemakers such as Boeing and Airbus are now trying to ramp production as supply chain issues ease, boosting demand for Honeywell’s avionics and flight control systems, among other products.
The company’s aerospace division, its biggest revenue generator, posted a 10.7% jump in sales to $4.31 billion in the second quarter, but margins fell 1.7%.
Higher costs have dented some of its margins as U.S. President Donald Trump’s broad-ranging tariffs on metals and trading partners threaten to disrupt a recovering supply chain and push up inflation.
Honeywell’s shares were down 4.7% in morning trade.
The company said on Thursday its latest revenue and profit forecasts account for all global tariffs enacted with current rates.
It had previously flagged a $500 million exposure from the levies.
Honeywell now sees 2025 adjusted profit per share between $10.45 and $10.65, up from its previous forecast of $10.20 to $10.50.
It also raised its full-year revenue to between $40.8 billion and $41.3 billion from $39.6 billion to $40.5 billion earlier.
“Honeywell is doing its best to show sequential strength into its breakup, with underlying improvement starting to show in its numbers,” RBC Capital Markets analyst Deane Dray said in a note.
The company’s total sales rose 8.1% to $10.35 billion, exceeding analysts’ average estimate of $10.07 billion, per data compiled by LSEG.
Honeywell reported an adjusted profit of $2.75 per share, also beating analysts’ expectations of $2.66.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Shinjini Ganguli)