S&P 500 · Aero-engine materials · Single-crystal turbine blades
Howmet Aerospace
Howmet makes the hottest part of a jet engine — single-crystal turbine airfoils — as one of few suppliers, sitting at a bottleneck where engine volumes can rise only as fast as its casting capacity. FY2025 revenue of $8,269M and net income of $1,508M (+31%) came from the LEAP/GTF narrow-body ramp compounding with high-margin aftermarket, with GE and RTX each ~11% of sales. The question for this node is the durability of the supercycle: upside as datacenter-driven gas-turbine demand (IGT, 11% of sales) layers onto the aero ramp, against volume swings from Boeing 737 MAX rate and engine MRO issues.
HWM Updated Jul 12, 2026 3 AI consumers
Per the valuechain.wiki graph, Howmet Aerospace is directly linked to 2 companies (0 supply, 2 revenue relationships) and reaches 7 companies within two hops; the links are backed by 4 dated sources, 1 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · ~$8.25B (FY2025)
- Customer concentration · GE and RTX each ~11% of 2025 sales; Engine Products +16% YoY.
- Segments · Engine Products ($4.32B) · Fastening Systems ($1.75B) · Engineered Structures ($1.15B) · Forged Wheels ($1.04B)
Revenue from
- GE Aerospace High confidence
The relationship that shows why Howmet is a bottleneck supplier to the jet-engine supercycle: it supplies single-crystal turbine airfoils and castings for GE Aerospace's LEAP and GEnx engines, ~11% of third-party sales (2025). As one of few holders of scarce single-crystal casting capacity, GE's narrow-body engine ramp and aftermarket spares demand feed straight into Howmet's Engine Products growth.Mentions KO Datatooza (Korea) Published Feb 17, 2026: Howmet Aerospace — ~50% share of IGT turbine-blade supply chain; record resultsConfirms EN SEC / Howmet Aerospace Published Feb 12, 2026: Howmet Aerospace FY2025 Annual Report (Form 10-K) - RTX High confidence
Supplies castings and forgings for RTX (Pratt & Whitney) GTF geared-turbofan engines — tied with GE as the largest customer (~11% of third-party sales, 2025). The GTF narrow-body ramp and maintenance cycle drive growth, but RTX-side engine recall/MRO issues also flow straight through as a volume variable — a two-edged dependence.Confirms EN SEC / Howmet Aerospace Published Feb 12, 2026: Howmet Aerospace FY2025 Annual Report (Form 10-K) - Commercial engine supercycle & aftermarket High confidence
The cycle itself that drives results: Engine Products revenue of $4,327M is half of the $8,269M total and the growth core. On top of the narrow-body (LEAP/GTF) new-engine ramp, high-margin MRO/spares (aftermarket) demand compounded to produce FY2025 operating income of $2,046M (+25%) and net income of $1,508M (+31%). Boeing 737 MAX rate approval (FAA, Oct 2025) is the upside switch for structures and fastener volume.Mentions EN Morgan Stanley / consensus Published May 8, 2026: Howmet (HWM) consensus Strong Buy, avg target ~$306 (Morgan Stanley raised to $315)Confirms EN SEC / Howmet Aerospace Published Feb 12, 2026: Howmet Aerospace FY2025 Annual Report (Form 10-K) - Industrial gas-turbine OEMs (IGT, datacenter power) Medium confidence
A second growth axis where datacenter power scarcity layers onto the aero cycle: advanced-cooling, coated large IGT turbine parts are ~11% of revenue (oil & gas / gas turbines). Howmet is one of few suppliers of blades to IGT primes such as Siemens Energy, GE Vernova and Mitsubishi Heavy, and AI-datacenter-driven gas build-outs are lifting this demand. (Per-OEM contract shares undisclosed; no cpid assigned.)Confirms KO Datatooza (Korea) Published Feb 17, 2026: Howmet Aerospace — ~50% share of IGT turbine-blade supply chain; record resultsConfirms EN SEC / Howmet Aerospace Published Feb 12, 2026: Howmet Aerospace FY2025 Annual Report (Form 10-K)
Pays to
- Nickel superalloys, titanium & aluminum (raw materials) Medium confidence
The root of product cost: turbine airfoils, seamless rings, fasteners and forged wheels are made from nickel superalloys, titanium, aluminum and cobalt. Much is passed through, but the price and availability of nickel, cobalt and titanium are real throughput and margin variables during the ramp.Confirms EN SEC / Howmet Aerospace Published Feb 12, 2026: Howmet Aerospace FY2025 Annual Report (Form 10-K) - Energy & skilled labor (precision casting process) Medium confidence
Single-crystal precision casting is energy- and skill-intensive, so melting/casting power and skilled labor are the ramp's bottleneck. The 10-K notes higher Engine Products headcount — capacity grows through yield and skill, not just equipment, which is why Howmet's moat is hard-to-replicate process know-how.Confirms EN SEC / Howmet Aerospace Published Feb 12, 2026: Howmet Aerospace FY2025 Annual Report (Form 10-K)
Investments
- CAM acquisition & capital return (M&A, buybacks) High confidence
Where the supercycle cash goes: in December 2025 Howmet agreed to buy aerospace-fastener maker CAM (Consolidated Aerospace Manufacturing) from Stanley Black & Decker for $1.8B (closing 2026, into Fastening Systems), deepening its fastener/aftermarket position, while lifting buybacks to $700M in 2025 (from $500M). The thesis is cash generation strong enough to fund both M&A and returns.Confirms EN SEC / Howmet Aerospace Published Feb 12, 2026: Howmet Aerospace FY2025 Annual Report (Form 10-K)Confirms EN The Globe and Mail Published Dec 22, 2025: Howmet Aerospace to acquire CAM (Consolidated Aerospace Manufacturing) for $1.8B
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Textron | lead2 | +59.9 | -8.2 | +13.7 | -4.8 | +14.1 | +4.3 |
| Airbus | lead2 | +34.8 | +3.9 | +30.5 | +15 | +18.3 | +3.9 |
| Boeing | lead2 | -6 | -5.4 | +36.8 | -32.1 | +22.7 | +2.4 |
| Leonardo S.p.A. | lead2 | +11.3 | +50.3 | +73.6 | +89.1 | +88.1 | -6.8 |
| Korea Aerospace Industries | lead2 | +15.4 | +34.6 | +7 | +5.5 | +217.9 | -14 |
| GE Aerospace | lead1 | +9.7 | -10.9 | +95.7 | +64.8 | +85.7 | +17 |
| RTX | lead1 | +23.3 | +20 | -14.4 | +40.8 | +61.4 | +7.6 |
| Howmet Aerospace | node | +11.7 | +24.2 | +37.8 | +102.7 | +88 | +32.2 |
YTD as of 2026-07-10 · source: Yahoo Finance
Howmet's thesis: two demand cycles overlap on top of a hard-to-replicate process moat. Single-crystal turbine casting scales only through yield and skill, so new entry is hard and the engine ramps of GE and RTX (each 11%) bottleneck on Howmet's capacity — making it a price-setting, few-of-a-kind supplier to the jet-engine supercycle. On top, the AI-datacenter gas-power boom adds IGT-parts demand (11% of sales) as a second growth axis. FY2025's +31% net income and 24.7% operating margin are the result, and the company deploys cash to both growth (the $1.8B CAM deal) and returns ($700M buybacks). Risks are Boeing 737 MAX rate, engine MRO issues (e.g., RTX GTF recalls) and nickel/titanium cost. Graph propagation: two-way mirrors with GE and RTX tie it directly to engine-OEM results, and via IGT it links indirectly to the power cycles of Siemens Energy, GE Vernova and Mitsubishi Heavy.
Analysis generated from returns as of 2026-02-12