Feb 12 (Reuters) - Howmet Aerospace on Thursday forecast first-quarter profit above Wall Street expectations, as the maker of castings and fasteners for aircraft benefits from strong industry demand for planes and parts, sending shares up 9% in morning trade.

Strong travel demand has led airlines to expand their fleets.

But while planemakers have responded by boosting production, their efforts have yet to catch up with airlines' needs, keeping older jets flying longer. That situation has left engine makers and other suppliers juggling competing demands from new plane assembly and maintenance for existing fleets.

COMPANY ACQUIRING, INCREASING CAPACITY

Pittsburgh-based Howmet is increasing capacity by building or expanding five manufacturing plants, CEO John Plant told analysts.

The company is also acquiring two producers of fasteners, giving Howmet access to sources of fittings that connect different aircraft parts, and further consolidating an industry that lost critical supply last year due to a fire at a Pennsylvania factory.

Howmet said it acquired privately-held fastener maker Brunner Manufacturing earlier this month, even as it works to close a separate deal to acquire Consolidated Aerospace Manufacturing from Stanley Black & Decker this year.

Plant also said he sees strong demand for powering data centers, and expects the company's gas turbine business to double revenue to $2 billion over the next three to five years. Howmet is the world's largest manufacturer of gas turbine blades.

The producer of parts for Boeing and Airbus expects adjusted profit for the current quarter between $1.09 and $1.11 per share, above analysts' estimate of $1.02, according to data compiled by LSEG.

"Revenue growth accelerated in the fourth quarter 2025 to 15% year over year, reflecting healthy growth in the commercial aerospace, defense aerospace, and gas turbines markets," Plant said.

"In commercial transportation, we anticipate that the first quarter 2026 will be the quarterly low point and then we will begin to see healthy demand in the second half of 2026."

The company posted quarterly revenue of $2.17 billion, above analysts' estimates of $2.13 billion.

For the quarter ended December 31, Howmet reported an adjusted profit of $1.05 per share, compared with 74 cents a year ago. Analysts estimated 97 cents per share.

(Reporting by Allison Lampert in Montreal and Aatreyee Dasgupta in Bengaluru; Editing by Shailesh Kuber, Tomasz Janowski, Rod Nickel)

By Allison Lampert and Aatreyee Dasgupta