(Reuters) – U.S. aerospace and defense company RTX raised its full-year earnings forecast and beat expectations for second-quarter profit on Thursday, aided by a rebound in the broader commercial aviation sector, sending its shares up 3% before the bell.
Airlines are flying older aircraft to meet the surge in air travel demand amid a shortage of new jets, leading to a bustling aftermarket business and benefiting companies such as RTX.
“The strength in our end-markets and first-half performance gives us the confidence to increase our outlook for adjusted sales and adjusted EPS for the full year,” said CEO Chris Calio.
A strong demand for original equipment and aftermarket services also led to a more than twofold jump in quarterly profit at Pratt and Whitney, a subsidiary of RTX, to $542 million.
Pratt and Whitney — the maker of the popular Geared Turbofan (GTF) engines, which powers Airbus’ A320neo jets — is facing an ongoing inspection drive to check for potentially flawed components in the GTF jet engines.
RTX posted adjusted per-share net income of $1.41 in the quarter, beating analysts’ average estimate of $1.30, according to LSEG data.
It expects full-year adjusted profit per share to be between $5.35 and $5.45, compared with its prior forecast range of $5.25 to $5.40.
GE Aerospace, which makes the competing LEAP engines, also raised its full-year profit forecast earlier this week, but flagged persistent supply constraints hurting new engine output.