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14:00
May 07 ◎

HWM FY2026 Q1 Watch

Howmet Aerospace Inc. (HWM) FY2026 Q1 Earnings Call

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John Plant

Howmet is ramping up production for the GTF Advantage engine, a key program for Pratt & Whitney, with volumes increasing significantly this year and into 2027.

"In terms of the DTF first. In the first quarter, there was a fairly small amount of DTF production."

RTX WATCH

John Plant

Howmet finalized supply and capex investment agreements with 6 out of 7 major industrial gas turbine customers, a step toward securing and locking in future capacity for the IGT build-out. — This de-risks Howmet's multi-year, multi-billion-dollar revenue growth plan in IGT, converting market enthusiasm into concrete, contracted commitments.

"In terms of the Maverick, that production is just starting for the Leap 1B."

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John Plant

Howmet is ramping up production of LEAP-1B blades for CFM International, a joint venture involving Safran, with a full changeover expected by end of 2026.

"In terms of the Maverick, that production is just starting for the Leap 1B."

SAF WATCH

John Plant

Management raised its full-year revenue and EBITDA guidance, driven by stronger commercial aerospace, defense, and gas turbine demand, and a successful capital deployment strategy.

"It's noteworthy that our four-year revenue growth guide excluding the impact of M&A, rises from 10% to 14%."

HWM WATCH

John Plant

Howmet has secured its rare earth supply through 2026, is 90% covered for 2027, and has extended some products' supply well into the end of the decade. — Proactive inventory building provides a significant competitive advantage and supply chain security versus peers, especially for defense applications during geopolitical uncertainty.

"We actually have increased the inventory of Reras such that we're fully covered through 26. And I think we're like 90% of 2027 and some products now well through the end of the decade."

MP WATCH

John Plant

Engine spares revenue surged 48% in Q1, far outpacing aircraft build rates, indicating a significant aftermarket accelerant driven by MRO backlogs and durable legacy fleet demand. — The strong aftermarket growth signals pricing power and high-margin revenue for Howmet, underpinning its margin expansion guidance.

"We have the rate for the 737 at an average of 42 per month of the year, and the 787 currently 7 per month, rising to 8 per month by the fourth quarter."

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15:00
Feb 12 ◎

HWM FY2025 Q4 Watch

Howmet Aerospace Inc. (HWM) FY2025 Q4 Earnings Call

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John Plant

Howmet supplies turbine blades to Siemens Energy; demand is driven by data center power needs.

"covering our key customers at GE Venova, Seams Power, Mitsubishi Heavy, Ansaldo, Solar and Baker Hughes"

SMNEY WATCH

John Plant

Howmet is a key supplier to Mitsubishi Heavy in gas turbines, benefiting from increased electricity generation demand.

"covering our key customers at GE Venova, Seams Power, Mitsubishi Heavy, Ansaldo, Solar and Baker Hughes"

MHVYF WATCH

John Plant

Howmet is a key supplier to Baker Hughes in gas turbines, benefiting from increased electricity generation demand.

"covering our key customers at GE Venova, Seams Power, Mitsubishi Heavy, Ansaldo, Solar and Baker Hughes"

BKR WATCH

John Plant

Management raised guidance for 2026 with strong revenue and EBITDA growth, though cautioned about dependence on aircraft build rates. The tone is optimistic across all end markets, especially gas turbines.

"We remain positive on the growth for 2026 while noting the dependency on aircraft builds."

HWM WATCH

John Plant

Howmet's gas turbine business is expected to double from ~$1B to $2B in revenue over the next 3-5 years, driven by data center power demand, and they are expending significant capex on this. — This is a major multi-year growth signal for the gas turbine supply chain, indicating robust demand for power generation equipment for data centers which likely benefits those OEMs and related infrastructure providers.

"covering our key customers at GE Venova, Seams Power, Mitsubishi Heavy, Ansaldo, Solar and Baker Hughes"

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John Plant

Engine spares demand for the F-35 has exceeded OE demand in value for 2025, indicating a large and growing installed base driving aftermarket revenue. — This signals strong utilization, and potentially durability/maintenance issues, on the F-35 fleet, which could have positive implications for the entire defense supply chain and aftermarket providers.

"for our engine product segments in 2025, The F-35's spares demand exceeded the OE demand for the aggregate value of parts provided."

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