$HWM – Howmet Aerospace – A Gas Turbine Player

Although this is no secret company, I believe they have potential because of how well their gas turbine business is growing.

Currently, only four foundries on Earth have the capability to cast the single-crystal blades and vanes required for high-efficiency gas turbines. This market is dominated by PCC and Howmet, who control 80% of the share, followed by Doncasters and CPP.

The situation has become so critical that every heavy-frame gas turbine ordered in the last year and a half is already sold out until 2030. This shortage is impacting major tech projects, including Elon Musk’s xAI Colossus, leading Musk to suggest that SpaceX and Tesla may eventually have to cast their own components to bypass the delay.

However, the production of single-crystal turbine blades represents one of the most significant industrial barriers to entry in modern engineering, mostly because it is defined by extreme chemical precision rather than traditional metallurgy. These manufacturers have successfully driven sulfur contaminants down to parts per billion and oxygen levels down to parts per million, creating a level of material integrity that is nearly impossible to replicate without specialty for years.

In their Q1'26 earnings, management said:

"Defense markets remain healthy, while the gas turbines market is also very active."

"Revenue was driven by 20% growth in the commercial aerospace market, 10% growth in the defense aerospace market and 39% growth in the gas turbines market."

If there is a bearish side to this company, it's that their commercial transportation business has been sluggish (15% of revenue)…but that is compensated by growth in commercial aerospace and defense aerospace (69% of revenue).

Not financial advice. DYOR.