(Reuters) – Aerospace supplier TransDigm Group raised its annual profit forecast on Tuesday, betting on strong demand for aftermarket parts and services from planemakers and carriers.
The company, which supplies aircraft components such as cockpit security systems and engine sensors for commercial and military jets, also beat Wall Street estimates for quarterly profit.
Demand for aircraft parts has risen as planemakers rush to fulfill expansion plans by airlines looking to cash in on the booming market for air travel.
However, delayed deliveries of new planes have pushed airlines to extend the use of older aircraft, boosting orders for profitable aftermarket parts for suppliers such as TransDigm.
The Cleveland, Ohio-based company expects its 2025 profit per share to be between $32.27 and $34.19, compared to the previous forecast of $31.47 to $33.39.
The company, which counts planemakers Boeing and Airbus among its customers, reaffirmed its annual sales forecast of $8.75 billion to $8.95 billion.
It posted an adjusted profit of $7.83 per share for the first quarter, beating analysts’ average estimate of $7.65, according to data compiled by LSEG.
The company’s net sales for the quarter through Dec. 28 rose 12% to $2 billion, compared with expectations of $2.03 billion.
(Reporting by Anandita Mehrotra in Bengaluru; Editing by Shreya Biswas)
