Honeywell raises 2025 forecasts on sustained demand for aerospace parts, services
(Reuters) -Honeywell raised its annual forecasts after posting a rise in second-quarter profit and revenue on Thursday, buoyed by strong demand for its aerospace parts and maintenance services despite an uncertain economic backdrop surrounding tariffs.
The company, which supplies avionics and flight control systems to Boeing and Airbus, has benefited from rising demand as planemakers ramp production after long delays due to supply chain issues.
Honeywell has also capitalized on a shortage of new jets, providing aircraft maintenance and repair services as airlines continue to fly an older, cost-intensive fleet.
The company's aerospace division, its biggest revenue generator, posted a 10.7% jump in sales to $4.31 billion in the second quarter.
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.
The company also raised its revenue outlook and now expects between $40.8 billion and $41.3 billion for the year, up from the $39.6 billion and $40.5 billion it had previously forecast.
The engines-to-switches conglomerate has been in the process of streamlining its portfolio under CEO Vimal Kapur, making acquisitions as well as shedding assets weighing on its business.
After pressure from activist investor Elliott Management, Honeywell in February announced plans to spin off its aerospace business, and retain the automation business, which would be led by Kapur.
Honeywell is reviewing alternatives for some of its businesses, including the productivity solutions and services unit and the warehouse and workflow solutions division, which have been a drag on the company's earnings in the past few quarters.
The industrial automation unit, which houses the businesses, reported a 5% fall in sales in the second quarter.
Total sales, meanwhile, rose 8.1% to $10.35 billion from $9.58 billion a year earlier.
Honeywell reported an adjusted profit of $2.75 per share, compared with $2.49 a year earlier.
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