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.
Shares of the company rose 1.5% in premarket trading.
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 separate its businesses. The company will spin off its aerospace business and retain the automation segment, which will be led by Kapur.
Honeywell is reviewing alternatives for its 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, 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)
