(Reuters) -Honeywell posted a rise in first-quarter adjusted profit on Tuesday and raised the lower end of its 2025 forecast, as a shortage of new jets fueled demand for its aerospace parts and aircraft maintenance services.
The airline industry – faced with a shortage of new jets – has had to fly older, more maintenance-intensive planes, buoying sales for players that supply parts and provide jet maintenance services.
An attempted production rampup by planemakers has resulted in a surge of orders for parts suppliers such as Honeywell, even as the industry grapples with persistent supply-chain issues that could potentially worsen amid U.S. tariffs.
Its updated forecast comes even as the industry braces for a tariff impact that include levies on metals and China, which has threatened to pressure an already-strained supply chain.
Honeywell, however, marginally narrowed its sales forecast for 2025 and now expects between $39.6 billion and $40.5 billion, compared to its prior guidance of $39.6 billion and $40.6 billion.
It expects adjusted profit per share to come in between $10.20 and $10.50 for the year, compared to its earlier forecast of between $10.10 and $10.50.
Honeywell said its guidance includes an expected impact from the current tariffs and global uncertainty in demand.
Sales at its aerospace division 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.
Adjusted profit per share came in at $2.51, compared to the $2.34 it posted a year ago.
(Reporting by Utkarsh Shetti in Bengaluru)
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