ATI Aerospace and Defense Demand Lifts 2026 Guidance

ATI

ATI aerospace and defense demand strengthened in the first quarter, prompting the specialty alloys manufacturer to raise its full-year earnings outlook. The Texas-based company lifted its 2026 adjusted profit guidance by $35mn to $1.01bn-1.06bn.

ATI aerospace and defense demand was strongest in jet engine materials, defence alloys and missile-related products. The company exceeded the high end of its first-quarter forecast by nearly $7mn, reporting adjusted profit of $232mn.

ATI aerospace and defense demand shows that high-performance metals remain central to the aircraft production ramp and defence replenishment cycle. Titanium, nickel-based alloys, isothermal forgings, zirconium and hafnium are all tied to programmes where qualification, lead times and supply reliability matter.

Quarterly profit rose by 20% on the year to nearly $120mn, while revenue increased by 6.2% to almost $1.2bn.

Jet Engine Materials Keep Specialty Alloy Lead Times Tight

Commercial jet engine sales rose by 12% on the year to $472mn, making the segment ATI’s largest product category. The company expects mid-teens growth in jet engine sales this year.

Demand is being driven by original equipment manufacturers and aftermarket service providers. Both need reliable access to specialty alloys and isothermal forgings as engine production and repair activity expand.

This is strategically important because jet engines consume some of the most demanding materials in the aerospace supply chain. Nickel-based superalloys, titanium alloys and premium-quality forgings must meet strict performance standards under heat, stress and fatigue conditions.

ATI is also working to qualify its new electron-beam furnace for premium-quality titanium at its Richland, Washington facility. This material is used in rotor-grade engine parts.

Approval of the furnace would help reduce pressure on ATI’s other premium-quality titanium melting operations. Some lead times for this material are now close to two years.

That lead-time signal matters. Aerospace buyers are not only chasing capacity. They are trying to secure qualified melt routes for materials that cannot be easily substituted.

Commercial airframe sales moved lower in the first quarter, falling by 9.3% to nearly $187mn. Airframers and OEMs continued drawing down internal stocks of raw materials and components.

However, ATI expects full-year airframe sales to grow by mid-to-upper single digits, with demand backloaded into the second half as inventories normalise. This should support stronger sales of standard-quality titanium used in structural aircraft components.

The company also expects much stronger titanium sales growth in 2027, based on long-term order patterns and customer production plans.

Defence Orders Strengthen Zirconium, Hafnium and Missile Materials

Defence sales rose by 9.3% on the year to $139mn in the first quarter. ATI expects full-year defence revenue to rise by low-to-mid teens from 2025 levels.

The company renewed a five-year, $1bn contract supporting the US Naval Nuclear Propulsion Program. This will drive continued demand for specialty alloys containing zirconium and hafnium.

Zirconium and hafnium are strategically important in nuclear and defence supply chains. Their use requires tight quality control, reliable processing and long-term customer qualification.

Missile-related demand also strengthened. ATI said first-quarter missile revenue doubled from a year earlier as contractors increased production and replenished munitions inventories.

The company supplies titanium and nickel products used in structural and propulsion applications for missile programmes, including Tomahawk, Patriot Advanced Capability-3 and Terminal High Altitude Area Defense interceptors.

Nickel-based and specialty alloys remained ATI’s largest revenue source, accounting for 49% of total sales in the quarter. Precision forgings, castings and components accounted for 20%, while titanium and titanium-based alloys represented 17%.

The mix shows ATI’s strategic position. The company is exposed to aerospace engine growth, defence replenishment, naval nuclear programmes and missile production, all of which depend on hard-to-qualify specialty metals.

ATI’s raised guidance therefore reflects more than a cyclical recovery. It points to structural demand for advanced materials across aerospace, defence and energy-security-related programmes.

The Metalnomist Commentary

ATI’s guidance increase confirms that aerospace and defence demand is pushing pressure upstream into qualified melt capacity and specialty alloys. The real bottleneck is not generic metal supply, but premium titanium, nickel alloys, zirconium, hafnium and forgings that meet mission-critical specifications.

ATI Aerospace Machining Expansion Targets Jet Engine Supply Bottlenecks

ATI Alloys

ATI aerospace machining expansion has moved downstream with a new 200,000ft² facility in Chihuahua, Mexico, focused on machining, inspection and qualification of critical jet engine components. The site has been operational since April and marks ATI’s first manufacturing location in Mexico.

ATI aerospace machining expansion strengthens the US specialty alloys producer’s position beyond raw material and forging supply. Nearly half of the new plant is dedicated to machining forged components used in high-pressure engine sections, where nickel-based superalloys are essential because of extreme heat and mechanical loads.

ATI aerospace machining expansion also addresses a persistent aerospace constraint: qualified downstream capacity. Strong demand for new engines and spare parts has increased pressure not only on alloy and forging supply, but also on machining, nondestructive testing and final quality verification.

The Chihuahua location gives ATI access to an established aerospace manufacturing cluster, trained workers and nearby suppliers. Customer qualification is already under way for components serving both existing and next-generation engine platforms.

Nickel Superalloy Machining Becomes a Critical Engine Bottleneck

High-pressure sections of jet engines operate under some of the most demanding conditions in industrial manufacturing. Components must withstand high temperatures, rotational stress, fatigue and repeated thermal cycling.

Nickel-based superalloys are therefore widely used in these engine sections because they retain strength and oxidation resistance at elevated temperatures. But producing the alloy is only one part of the supply chain.

Forged engine components require extensive precision machining before installation. Nickel superalloys are difficult to machine because of their high strength, work hardening and heat resistance, which increase tool wear and processing time.

That makes qualified machining capacity strategically important. Aerospace manufacturers cannot simply move parts to an unapproved supplier when capacity becomes tight because every process must meet strict customer and regulatory requirements.

ATI’s new facility therefore extends the company further into value-added processing. Instead of supplying only specialty alloy or forged material, it can provide more finished components closer to engine assembly.

The remainder of the Chihuahua plant is dedicated to inspection, including nondestructive testing and quality verification. These processes are critical because internal cracks, surface defects or dimensional deviations can make high-value engine components unusable.

Customer Qualification Could Deepen ATI’s Aerospace Integration

ATI said engine manufacturers and other customers are working aggressively to qualify the new facility. That suggests customers are actively looking for additional approved capacity to relieve bottlenecks.

The facility will process components for both legacy and next-generation engine models. This gives ATI exposure to two important demand streams: new aircraft production and the aftermarket replacement cycle.

Legacy engines generate recurring demand for spare components as fleets remain in service. At the same time, newer engine platforms require higher-performance materials and increasingly complex manufacturing routes.

This combination supports long-term demand for nickel superalloys, titanium and other specialty aerospace materials. But supply-chain performance increasingly depends on how quickly those materials can move through forging, machining, heat treatment, inspection and qualification.

ATI’s Mexico investment reflects this shift. Aerospace suppliers are moving closer to integrated component production as customers seek fewer bottlenecks between raw material and finished part.

Financial details and production capacity were not disclosed, so the immediate earnings impact remains unclear. But strategically, the site gives ATI a larger role in one of the highest-value sections of the aerospace materials chain.

The Metalnomist Commentary

ATI’s Chihuahua plant shows that aerospace shortages are moving downstream from alloy supply into machining and qualification. In jet engines, the competitive advantage increasingly belongs to suppliers that can control more of the path from superalloy to finished, approved component.

ATI's 2Q Performance Boosted by Titanium Sales Surge

Specialty alloys manufacturer ATI saw a significant boost in its second-quarter earnings, driven by strong demand for titanium, particularly in the aerospace and defense sectors. The Texas-based company reported a 28% increase in sales of structural airframe components, reaching $211 million, largely due to higher shipments of titanium plate.

Titanium and titanium-based alloys contributed to 20% of ATI's total sales in the quarter, a 6 percentage point increase from the same period in 2023. The company is continuing its melt expansions in Albany, Oregon, and Richland, Washington, and is in discussions with customers about potential funding for further capacity additions.

CEO Kimberly Fields emphasized the strategic importance of these expansions, noting that customers are investing to ensure reliable supplies and to secure priority in future demand.

Aerospace and defense sales rose 13% year-over-year to $684 million, making up 62% of ATI's total revenue. Jet engine materials, which accounted for over half of these sales, saw a 4% increase to $353 million. ATI attributed this growth to strong demand for forgings, supply chain improvements, and broader customer diversification.

The company remains optimistic about aftermarket demand for spare engine parts, with a notable shift in production toward maintenance, repair, and overhaul (MRO) operations, which now account for 40-50% of ATI's forgings and discs for engine hot sections, up from the historical average of 25%.

Looking ahead, ATI is closely watching two key developments that could significantly increase demand in its core markets: the certification of Boeing's next-generation 777-9 twin-aisle aircraft and the end of the Federal Aviation Administration's cap on Boeing's 737 MAX production.

Despite these positive trends, ATI's second-quarter profits fell by 9.4% to $82 million, mainly due to a higher income tax burden, though revenues grew by 4.7% to $1.1 billion.

ATI and USW Finalize Six-Year Labor Agreement for Specialty Alloys Division

ATI

ATI has finalized a six-year labor agreement with the United Steelworkers (USW), securing workforce stability across its specialty rolled products division. The deal, covering nearly 1,000 union employees, applies to six ATI facilities in Pennsylvania and one in New York. This development strengthens labor continuity at a time of increased demand for high-performance alloys used in aerospace, defense, and energy sectors.

The new ATI labor agreement ensures uninterrupted production of stainless steel, nickel alloys, cobalt alloys, and titanium-based products. ATI produces these materials in various forms, including sheet, strip, and plate, all critical for supply chains that depend on corrosion resistance, high-temperature strength, and specialty metallurgical performance. The agreement also reflects mutual confidence between ATI and the USW after past labor disputes.

Labor Stability Strengthens ATI’s Specialty Metals Output

The ATI labor agreement stabilizes operations across key manufacturing sites that serve aerospace, medical, and energy customers. These sectors require reliable supply of specialty alloys like nickel superalloys and titanium plate, which are often constrained by both technical complexity and production scale. Labor stability allows ATI to continue executing its strategy of focusing on high-margin, differentiated materials.

ATI’s recent capacity investments in its specialty rolled products segment suggest growing customer demand for advanced materials. The secured labor contract now reduces the risk of production disruptions and supports ATI’s long-term service commitments to strategic customers.

Titanium and Nickel Alloy Markets Benefit from Secure Supply Chain

By locking in a long-term labor agreement, ATI improves predictability in the nickel alloy and titanium product markets, where delays or shortages can significantly impact OEMs. As supply chain risk remains a top concern for defense and aerospace contractors, ATI's ability to maintain a stable, union-backed workforce adds resilience to its role in the specialty metals ecosystem.

This move also enhances ATI’s positioning in government contracts and specialty component supply, where operational reliability and labor compliance are prerequisites.

The Metalnomist Commentary

The new ATI labor agreement marks a strategic win for North American specialty metals stability. At a time of geopolitical supply risk and defense material bottlenecks, labor certainty helps ATI meet growing downstream demand for high-performance alloys.

ATI Tariff Impact 2025 Expected to Be Minimal as Aerospace Demand and Supply Strategies Offset Risks

ATI

Flexible sourcing, defense exemptions, and surcharges help ATI maintain 2025 earnings guidance

Aerospace and jet engine orders drive resilience despite raw material tariffs on nickel, vanadium, and zirconium

ATI tariff impact 2025 is expected to be limited, as the specialty alloys producer forecasts only a $50 million pre-mitigation earnings hit from recent U.S. trade measures. Despite the new tariffs, the Texas-based firm has reaffirmed its 2025 earnings guidance, leveraging a combination of duty drawbacks, defense exemptions, and pass-through pricing clauses to insulate operations.

Strategic tools and flexible sourcing preserve profitability under new trade conditions

ATI noted that surcharge mechanisms on new orders, effective April 7, and selective tariff exclusions for aerospace-related inputs are already helping to preserve income and control exposure. Key exemptions were granted for materials critical to defense, although nickel scrap, hafnium, vanadium, molybdenum, and zirconium remain tariffed. While some industrial customers have slowed purchases amid uncertainty, ATI’s core aerospace and defense segments remain solid.

Notably, aerospace and defense represent 66% of ATI’s total business. The company is the exclusive source for five of seven nickel-based alloys used in jet engine hot sections and is a top forger of rotating components. As a result, full-year jet engine sales are projected to grow 15–20%, with Q1 sales up 35% to $421 million.

Titanium contracts and capacity expansion support long-term aerospace growth

Though titanium-heavy airframe sales rose modestly by 8.2% due to OEM inventory drawdowns, ATI secured a new five-year, $1 billion supply deal with Airbus for flat-rolled titanium products. The company is also qualifying premium-grade titanium from its new electron beam (EB) furnace in Richland, Washington, targeting critical aerospace applications.

For Q1, ATI reported a 47% profit increase, reaching $97 million, with revenue climbing nearly 10% to over $1.1 billion. These results affirm ATI’s ability to navigate short-term tariff turbulence while capitalizing on long-term demand trends.

The Metalnomist Commentary

The ATI tariff impact 2025 story underscores the value of vertical integration, contract structure, and defense-linked exemptions in managing geopolitical trade risks. ATI’s proactive pricing and sourcing strategy may set a precedent for specialty metals producers facing future tariff regimes.

Airframe Inventory Normalization Could Lift ATI Sales in the Second Half of 2026

ATI

Airframe inventory normalization is becoming central to ATI’s 2026 aerospace outlook. ATI expects commercial airframe inventories to move back into balance with supply chains during the year. The company sees modest growth in the first half and faster activity in the second half. As a result, airframe inventory normalization could support stronger orders and shipments later in 2026.

ATI’s guidance still reflects some caution. The company now expects airframe sales to rise by mid-to-high single digits from 2025 levels. That is slightly more conservative than its earlier forecast. Therefore, ATI airframe sales outlook now assumes a measured Boeing ramp rather than immediate full-rate execution.

This matters because airframe demand has stayed softer than engine demand in recent years. Excess downstream inventory has weighed on suppliers across the aerospace chain. That overhang has been especially painful for companies tied to raw materials and structural components. Consequently, airframe inventory normalization may become one of the most important aerospace themes in 2026.

Boeing Production Ramp Could Rebalance the Airframe Supply Chain

The Boeing production ramp is a major reason ATI expects better conditions later this year. Boeing plans to increase output of both the 737 MAX and the 787 Dreamliner. The company also expects to normalize 737 MAX inventory as production rises further. As a result, airframe inventory normalization is becoming more believable for suppliers.

ATI is watching actual orders more closely than production targets alone. Management said it wants to see build rates translate into firm orders and shipments. That explains the more cautious tone in its latest outlook. However, the company still sees enough evidence to expect stronger second-half demand.

Supplier behavior is already changing. ATI said spot orders and long-term contract gains in the first quarter have been unusually strong. The company linked that trend to suppliers preparing for Boeing’s coming rate increases. Therefore, ATI airframe sales outlook is being supported by real commercial signals, not only optimism.

Aerospace Titanium Demand Could Recover as Inventories Clear

Aerospace titanium demand has been one of the clearest casualties of excess airframe inventory. Boeing and Airbus slowed some raw material and component ordering as supply chains clogged. That pressure pushed titanium prices(Super Metal Price) to multiyear lows in 2025. Consequently, airframe inventory normalization could matter directly to titanium markets.

The broader ATI portfolio already shows stronger momentum outside airframes. Jet engine sales rose 21pc in 2025, while defense sales increased 14pc. ATI expects both segments to grow by double digits in 2026. Therefore, the company is entering the year with stronger support from engines and defense than from airframes.

That mix matters for investors and suppliers alike. Airframes remain the slower recovery story, but they are no longer the only driver of aerospace growth. If inventories normalize in the second half, ATI could gain from both structural materials recovery and ongoing engine strength. As a result, 2026 may look more balanced across its aerospace segments.

The Metalnomist Commentary

ATI’s message is clear: the airframe market is improving, but timing still matters more than headlines. Engine and defense demand remain strong, while airframes wait for inventory cleanup to finish. If Boeing’s ramp converts into real orders, titanium and structural materials could finally see a stronger rebound.

ATI Sells Precision Rolled Strip Operations to Ulbrich to Refocus on Core Markets

ATI

ATI, a leading specialty alloys producer, has divested its precision rolled strip operations to Ulbrich Stainless Steels and Special Metals, a specialty metals manufacturer. This strategic move aligns with ATI's focus on its core markets in aerospace and defense, enabling the company to prioritize titanium, nickel, and alloyed products in its Specialty Rolled Products segment.

Details of the Divestment

ATI announced the sale of its facilities in New Bedford, Massachusetts, and Remscheid, Germany, to Connecticut-based Ulbrich. The New Bedford facility specializes in producing titanium strip, precision rolled strip, and cold-rolled stainless steel. Meanwhile, the Remscheid service center stocks high-temperature metals, including stainless steels, nickel-based alloys, and titanium.

While the financial terms of the deal remain undisclosed, the transaction is a pivotal part of ATI's streamlining efforts to cater to high-value industries such as aerospace and defense.

Strategic Shift Toward High-Performance Metals

This divestment underscores ATI's commitment to strengthening its portfolio in aerospace and defense by concentrating on advanced materials. By offloading precision rolled strip operations, ATI aims to enhance efficiency and focus on producing high-performance metals tailored to demanding applications.

Ulbrich, known for its expertise in precision metals, is expected to leverage the acquired facilities to expand its market reach and capabilities, particularly in stainless steel and high-temperature alloys.

This strategic realignment by ATI highlights an industry trend where companies streamline operations to bolster their standing in high-growth markets.

ATI’s Forgings Backlog Soars Amid Increased MRO Demand

ATI

Specialty alloy producer ATI has seen its forgings backlog reach a historic high, fueled by heightened demand for Maintenance, Repair, and Overhaul (MRO) services. The demand for components used in the "hot section" of aircraft engines is driving this growth, particularly for isothermal forgings. The company’s forged products business has experienced significant lead-time extensions, with some parts now taking over a year to be delivered.

Strong Demand in Jet Engine Market Supports Sales Growth

MRO demand has had a substantial impact on ATI’s sales, particularly in the jet engine market. The company reported a 9% increase in sales for its jet engine end market in 2024, reaching $1.5 billion. This growth is largely attributed to the demand for isothermal forgings, a key component in the production of jet engines. The delay in new aircraft deliveries has forced airlines to extend the operational life of their fleets, creating a growing need for aftermarket services, including spares and upgrade kits.

To meet these demands, ATI increased its isothermal forgings output by 32% in 2024, following significant technology upgrades at its Cudahy, Wisconsin facility. The company also expanded its downstream capabilities, adding a heat treatment facility along with machining and testing capacities to improve throughput rates.

Looking Ahead: Titanium Products and Engine Revenue Growth

ATI anticipates continued growth in its jet engine business, projecting a similar 9% revenue increase for 2025. The company’s work with Pratt & Whitney, particularly the accelerated inspections of its PW1100G-JM (GTF) engine fleet used in Airbus’s A320neo program, is expected to further fuel this growth.

In addition, ATI has made significant investments in its titanium production capabilities. The company recently commissioned its electron beam (EB) furnace at its Richland, Washington facility, which will help boost titanium ingot production. With Boeing and Airbus planning to ramp up production of their titanium-bearing widebody models, ATI anticipates an acceleration in orders for titanium products in the second half of 2025.

ATI Expands Portfolio with Titanium Sheet Production in South Carolina

ATI Titanium Sheet

ATI Launches Titanium Sheet Facility for Aerospace Applications

Specialty alloys producer ATI has begun producing titanium sheet at its new Pageland, South Carolina plant, marking a significant expansion of its aerospace-focused product suite. The facility, covering 125,000ft², enables ATI to manufacture 6Al-4V (6-4) and 6Al-2Sn-4Zr-2Mo (6-2-4-2) alloys in sheet form at production scale for the first time.

The launch follows ATI’s previously announced five-year, $1bn supply deal with Airbus, which now includes sheet products for airframe structures. According to ATI, the Pageland facility began operations in the first quarter and incorporates electric furnaces for heat treatment and a pickle line for surface finishing. Sheets can be produced as thin as 0.02in and as long as 25ft, serving demanding aerospace requirements.

Titanium Alloys Drive Aerospace Manufacturing Growth

Both 6-4 and 6-2-4-2 titanium alloys are widely used in aerospace due to their unique material properties. The 6-4 alloy is prized for its strength-to-weight ratio, making it vital for structural components, while 6-2-4-2 alloy offers exceptional heat resistance, crucial for high-temperature aerospace applications.

ATI stated that approximately two-thirds of the Pageland plant’s output is already secured under long-term offtake agreements (LTAs) with Airbus and other major customers. The remaining output will target additional LTAs, transactional orders, and emergent business opportunities, allowing ATI to expand its aerospace footprint and diversify its customer base.

The Metalnomist Commentary

ATI’s entry into titanium sheet production strengthens its role as a critical supplier in the aerospace supply chain. With Airbus already secured under long-term contracts, ATI positions itself to capture growth in titanium demand driven by new-generation aircraft. The Pageland facility also demonstrates the company’s commitment to vertical integration and material innovation in high-performance alloys.

ATI Nickel Superalloy Capacity Expansion Targets Jet Engine Growth

VIM(Vacuum Induction Furnace)

ATI nickel superalloy capacity expansion is moving into a new phase with another melting investment in North Carolina. ATI plans to add a new VIM furnace at its Bakers South facility in Monroe. The company expects the unit to start in the second half of 2027. As a result, ATI nickel superalloy capacity expansion is becoming more directly tied to engine OEM growth plans.

The new furnace will be the fifth VIM asset in ATI’s nickel portfolio. The company said customer qualification should follow within six to nine months after start-up. ATI also indicated the furnace could lift capacity by roughly 8-10pc, or about 9,000 tonnes per year. Therefore, ATI nickel superalloy capacity expansion could add meaningful new supply to a tight aerospace materials chain.

This investment matters because nickel-based superalloys remain critical to modern jet engines. These materials are used in compressor discs and turbine blades in the hot section. They are valued for maintaining strength and corrosion resistance under extreme temperatures. Consequently, a new VIM furnace for nickel superalloys is more than a plant upgrade. It is a strategic aerospace capacity addition.

VIM Furnace for Nickel Superalloys Supports OEM and Aftermarket Demand

The VIM furnace for nickel superalloys is designed to support rising demand from both original equipment and the aftermarket. Major engine makers have already signaled higher delivery plans for 2026. At the same time, spare parts and overhaul demand remain strong across global fleets. Therefore, ATI is expanding into a market where both new-build and service demand are pulling at the same time.

ATI’s product mix strengthens the value of this capacity. The company produces six of the seven nickel-based superalloys used in latest- and next-generation jet engines. That includes proprietary grades such as 718+ and 720. As a result, the new furnace will support materials that sit deep inside high-value aerospace programs.

The contract structure also reduces some commercial risk. ATI said 80pc of the added capacity has already been secured under long-term agreements. Part of the expansion will also be funded by customers. Meanwhile, customer funding should help accelerate qualification and approval timelines. That means the project is entering service with stronger commercial visibility than a typical speculative capacity build.

Aerospace Materials Supply Chain Still Needs More Melt Capacity

Aerospace materials supply chain pressure helps explain why ATI is investing now. Aircraft production rates are rising at Boeing and Airbus across both narrowbody and widebody programs. Engine suppliers such as GE Aerospace and Pratt & Whitney must support those ramp-ups with more parts and more materials. Therefore, melt capacity for superalloys is becoming a real bottleneck layer in the broader aerospace chain.

ATI also noted that exact run rates remain difficult to define. Melt speeds and lead times vary depending on the superalloy grade being produced. That makes generalized capacity estimates less precise than in commodity metals. However, the broader direction is clear. ATI nickel superalloy capacity expansion is aimed at supporting a market where availability matters as much as metallurgy.

This is also part of a wider Monroe campus buildout. ATI previously announced additional remelting equipment at the same site. The new VIM furnace adds another layer of upstream capability to that strategy. As a result, the company is building a more complete production base rather than adding one isolated unit.

The Metalnomist Commentary

This project matters because aerospace growth now depends on specialty melt capacity, not just final assembly rates. ATI is expanding where the bottleneck is hardest to replace quickly. If engine demand stays strong, this furnace could become one of the more important quiet additions in the nickel superalloy market.

New Engine Builds and Legacy Parts Fuel Robust Titanium Demand in Aerospace and Defense Markets

Demand for titanium is on an upward trajectory, driven primarily by the aerospace sector’s ongoing need for current-generation engines and a growing demand for spare parts in legacy aircraft programs, delegates at the International Titanium Association (ITA) conference learned Monday. The aerospace sector’s consumption of titanium is set to expand at a compounded annual growth rate (CAGR) of 10.5 percent over the next five years, according to Marty Pike, president of ATI’s specialty materials unit. This growth reflects a convergence of factors, including new engine builds, heightened maintenance needs, and strategic defense applications.

Driving Forces Behind Aerospace Demand

Increasing build rates among airframe manufacturers and a rise in maintenance, repair, and overhaul (MRO) services are key forces behind titanium’s expected growth, particularly as Airbus and Boeing face backlogs totaling over 14,000 aircraft through 2034. CFM International's LEAP engines and Pratt & Whitney’s geared turbofan engines remain the primary drivers for current-gen engine demand, with production of these platforms expected to increase by 53 percent over the next two years.

"This creates significant opportunity for not only standard-quality titanium but also premium-quality titanium," Pike noted. Titanium is essential in engine applications, including compressor discs, turbine blades, and fasteners, and plays a crucial role in optimizing aircraft performance.

Another notable shift is the doubling effect seen in the demand for spares and new builds, as airlines keep older fleets in operation longer and maintenance cycles accelerate. Historically, spares represented 25 percent of material demand, but this figure could increase to 30-50 percent, driven by intensified MRO cycles.

Titanium's Strategic Role in Defense Markets

Titanium's utility extends into the defense sector, where geopolitical factors continue to fuel demand. As defense budgets surge—reaching a record $2.44 trillion globally in 2023, according to the Stockholm International Peace Research Institute—the metal is increasingly utilized in fighter jets, drones, and other high-performance military equipment. Sam Stiller, Howmet Aerospace's vice president of engineered structures, emphasized that titanium's lightweight and high-temperature resilience make it ideal for stealth applications and advanced drone programs. The F-35 fighter jet, a prime example, comprises 20 percent titanium by weight.

Challenges and Prospects Amid Global Supply Constraints

While titanium demand in aerospace and defense remains robust, panelists cautioned that constrained production rates and supply chain bottlenecks present challenges for manufacturers. Nonetheless, the defense industry’s demand, along with increased aerospace production rates, continues to underscore titanium’s long-term growth prospects in critical sectors.

Titanium Scrap Demand and Prices Expected to Rise in 2025, Driven by Boeing Recovery and Melter Expansions

Titanium Scrap

The outlook for titanium scrap is becoming increasingly positive as demand is expected to surge in the second half of 2025. This rise is driven by a recovery in aerospace manufacturing, particularly from Boeing, and planned expansions in titanium melting capacity. These factors are expected to have a significant impact on the titanium scrap market, which has faced challenges throughout 2024.

Boeing and Aerospace Recovery

After a year marked by disruptions in production schedules and supply chain bottlenecks, aerospace manufacturers are expecting a rebound. In 2024, the anticipated increase in titanium scrap demand did not materialize as expected, largely due to production missteps at Boeing and delays in Airbus’s ramp targets. However, a recovery in Boeing's production, particularly of the 737 MAX and the 787 Dreamliner, is poised to fuel higher scrap consumption.

Boeing’s 737 MAX production, which was temporarily halted due to a seven-week strike, is set to resume, providing a strong signal for the titanium scrap market. The 787 Dreamliner, which contains about 15% titanium compared to 6% for the 737 MAX, will also contribute to increased demand. Despite facing parts shortages earlier in 2024, Boeing has indicated that it will resolve these issues by the end of the year, paving the way for normalized production rates in 2025.

Titanium Melters’ Expansions and Ingot Production

Another key factor influencing the titanium scrap market is the expansion of titanium melters’ capacity. With new ingot production facilities scheduled to come online in 2025, there is a clear indication that titanium melters will be looking to source more aerospace-grade scrap to feed their new furnaces. Companies such as ATI, Titanium Metals (TIMET), and Perryman are investing heavily in capacity expansions to meet growing demand for titanium products.

ATI’s expansion at its Richland, Washington, operations will increase melting capacity by 35% over 2022 levels, while TIMET’s new plant in Ravenswood, West Virginia, is expected to produce 33 million lbs of ingot annually once fully operational. Perryman, meanwhile, is ramping up its facility in Coal Center, Pennsylvania, increasing its melting capacity by 16 million lbs to 42 million lbs annually. These expansions are expected to create more competition for available titanium scrap, potentially driving up prices.

Impact of Tariffs and Political Uncertainty

However, the market remains uncertain due to potential changes in U.S. trade policies under President-elect Donald Trump. Trump’s proposed tariffs, which could impose duties of up to 60% on imports from China, 25% on imports from Mexico and Canada, and a 20% duty on all other imports, have raised concerns among market participants. Such tariffs would increase the cost of titanium scrap imports, particularly from regions like Europe and Japan, which could be devastating for the industry if they are implemented.

Titanium scrap imports to the U.S. have already increased significantly in 2024, reaching 23,578 metric tonnes through October, surpassing the previous year’s total. While the threat of tariffs remains uncertain, it could create additional market disruptions that would further complicate the scrap supply chain.

Conclusion

While 2024 proved to be a challenging year for the titanium scrap market, 2025 is shaping up to bring a significant rebound. The resumption of Boeing's production and continued expansions in titanium melting capacity should drive stronger demand for aerospace-grade scrap. However, political uncertainty surrounding tariff policies remains a major wildcard that could affect the broader market dynamics. As the industry braces for these changes, stakeholders are carefully watching for signs of recovery and growth.

Titanium Imports from Russia Persist as Airbus Diversifies to US Supply

Titanium

China Surge and EU Dependence

Titanium imports from Russia continue in 2025 despite geopolitical pressure. China’s intake from Russia hit unprecedented levels. Imports reached 4,627t in January–June, more than triple 2024’s first half. Bars, rods, and shapes led the flow, followed by plate and sheet. However, less than a third stayed in China, according to estimates. Therefore, re-exports or indirect flows likely expanded. Europe’s OEMs still buy from VSMPO-Avisma while building alternatives. Meanwhile, the EU has not sanctioned VSMPO directly, preserving legal pathways.

Titanium imports from Russia also serve China’s aerospace and maritime supply chains. China still needs select external components for the C919 program. Medical implants and maritime uses also draw on Russian feedstock. Therefore, China’s vast domestic capability still has gaps. End-destinations remain hard to track through customs data. Tirus subsidiaries add complexity across the UK, Germany, the US, and China. As a result, compliance checks burden banks and Western buyers.

Airbus Diversifies and Closes the Loop

Titanium imports from Russia continue in Europe, but Airbus is hedging. France’s intake from Russia hit a record in 2024. First-half 2025 volumes rose 37% year on year. However, Airbus signed a five-year, $1bn ATI deal in May. The pact more than doubles ATI’s supply of plate, sheet, and billet. French imports from the US also reached a first-half record. Two-thirds were flat-rolled products, signaling procurement rebalancing.

Scrap loop initiatives strengthen strategic titanium independence. Airbus collected 460t of scrap in France by January 2025. EcoTitanium melts ingots with up to 75% scrap content. Ingots then feed Aubert & Duval for forged parts. Therefore, Airbus programs gain secure, lower-risk supply. Meanwhile, Premium AEROTEC scrap will enter a closed loop in Germany. This effort reduces prime sponge exposure and transport risks.

The Metalnomist Commentary

Airbus’s pivot to US flat-rolled supply marks a structural shift. Yet Europe still lacks large forgings and rolling capacity. Expect long lead times, higher capex, and tighter scrap control to shape titanium pricing.