Honeywell (NASDAQ:HON) reported a rise in its first-quarter adjusted profit on Tuesday, driven by robust demand for its aerospace parts and services amid an ongoing shortage of new commercial jets.
The strong performance led the industrial conglomerate to raise the lower end of its adjusted profit forecast for 2025.
The airline industry's struggle to acquire new aircraft has necessitated increased reliance on older, more maintenance-intensive planes.
This trend has significantly bolstered sales for companies like Honeywell that supply critical components and provide maintenance services.
An attempted production ramp-up by aircraft manufacturers has also resulted in a surge of orders for parts suppliers such as Honeywell.
This increased demand comes even as the industry continues to navigate persistent supply chain challenges, which could face additional pressure from factors like U.S. tariffs.
Despite potential impacts from current tariffs and global economic uncertainty, Honeywell updated its financial guidance for 2025.
The company now anticipates full-year adjusted profit per share to be between $10.20 and $10.50, compared to its previous forecast of $10.10 to $10.50, effectively raising the bottom end of the range.
The sales forecast for 2025 was marginally narrowed to between $39.6 billion and $40.5 billion, from the prior guidance of $39.6 billion and $40.6 billion.
For the first quarter, sales at Honeywell's aerospace division jumped approximately 14%, reaching $4.17 billion.
Total quarterly sales across all segments rose about 8% year-over-year to $9.82 billion.
The company also reported adjusted profit per share of $2.51 for the quarter, an increase from the $2.34 posted in the same period a year ago.