Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
the tariffs need to be renegotiated. They need to be included in the pricing and our Chinese customers are going back to the government entities and getting higher prices to pay for our products, and that's causing a delay.
We expect revenue to be $2.9 billion, plus/minus $100 million. At midpoint, this reflects a growth of approximately 20% year-over-year.
The tariff changes continue to produce uncertainty for Howmet. However, the net tariff drag continues to be small at around $5 million plus or minus.
We attribute that to some effects from the late March auto tariff announcements.
We would think that those would typically grow in line with just typical inflationary trends.
Other than China, we have not experienced any meaningful challenges from tariffs or other barriers in our traditional trade lanes.
Adjusted gross margin in the quarter was down about 60 basis points driven by tariff-related costs partially offset by pricing actions and supply chain countermeasures.
Tariff-related uncertainty and other macro factors in North American economy have ripple effects through some of our customers over the past 2 quarters.
Currently, we do not expect a material change to our result of operations as a consequence of the latest U.S. tariff actions.
While our P&W export program is impacted by the tariffs on soybeans, our grain team is working with our customers across Canada, the U.S. and Mexico to identify alternative markets and incremental opportunities to backfill a portion of this market shortfall.