Howmet Aerospace boosts outlook as sales rise

Materials supplier Howmet Aerospace posted higher second-quarter revenue than forecast on rising commercial aerospace demand, prompting the company to raise its full-year guidance.

The Pittsburgh, Pennsylvania-based company increased second-quarter revenue by 14pc to $1.88bn, exceeding the $1.8bn top end of its May guidance. Howmet raised its full-year revenue guidance to $7.4bn-7.48bn, up from $7.23bn-7.38bn previously.

Gains were driven by a 27pc increase in commercial aerospace revenue, the company said. The commercial aerospace outlook is robust as a result of rising travel demand and aging aircraft, leading to a backlog of orders.

Howmet said it is concerned that Boeing has trimmed some part orders, but orders still remain above build rates for 737 and 787 aircraft.

"The issue faced by Howmet Aerospace continues to be the aircraft manufacturers' ability to build and deliver aircraft on a consistent basis," chief executive John Plant said. Howmet expects Boeing this year to build 737 MAX aircraft at a rate of 22 per month, up from its prior expectation of 20 a month.

Howmet's engine product sales in the second quarter increased by 14pc to $933mn from the same time a year prior. Fastening systems revenue increased by 20pc to $394mn, and engineered structures revenue increased by 38pc to $275mn.

Quarterly sales in Howmet's forged wheels unit, which manufactures aluminum-based truck wheels, decreased by 7pc from a year earlier to $278mn on lower volumes in the commercial transportation market and lower aluminum costs.

Total profit in the quarter increased to $266mn, up from $193mn in the prior-year period.

Howmet Aerospace Adopts Conservative Outlook Despite Boeing's 2025 Production Targets

Howmet Aerospace

Supply chain volatility drives cautious planning by leading titanium parts supplier

Howmet Aerospace, a leading titanium melter and aerospace component manufacturer, is tempering its expectations for Boeing’s 2025 aircraft build rates. While Boeing projects an aggressive ramp-up, Howmet is planning based on more conservative assumptions, citing ongoing inventory corrections and supply chain uncertainties.

Boeing has forecasted a significant increase in the production of its 737 MAX, aiming to reach 38 aircraft per month in the second half of 2025, with a further potential rise to 42 per month by year-end. Despite this, Howmet’s CEO John Plant stated the company is operating under assumptions of 25/month for the 737 MAX and 6/month for the 787 Dreamliner for the full year.

Inventory normalization and supply bottlenecks shape Howmet’s cautious approach

Howmet attributes its reserved stance to Boeing’s own inventory normalization efforts. CFO Brian West previously emphasized the need to reduce buffer stock, which could delay near-term orders. The backlog of titanium-intensive components such as heat exchangers and seating certifications for the 787 also contributes to the uncertainty.

While other aerospace suppliers have raised forecasts based on Boeing’s outlook, Howmet is hedging its bets on demand driven more by spares and aftermarket services. The company noted spares made up 17% of total revenue in 2024, a share it expects to grow further in 2025 due to extended aircraft service lives and delayed retirements.

Growth expected despite production caution

Despite its conservative planning, Howmet expects to increase annual revenue to between $7.93 billion and $8.13 billion in 2025, up from $7.4 billion last year. The company anticipates sustained demand from both Boeing and Airbus, along with increased aftermarket needs, particularly for turbine blades.

Profitability remains strong, with Howmet’s 2024 net income rising 51% year-over-year to $1.2 billion, supported by a 33% increase in fourth-quarter profit. While the company is not fully aligned with Boeing’s optimism, it remains well-positioned to capitalize on gradual industry recovery.

Howmet acquire CAM to expand aerospace fastener portfolio in $1.8bn deal

CAM

Howmet acquire CAM in a $1.8bn transaction to deepen its aerospace footprint. Howmet Aerospace will buy Consolidated Aerospace Manufacturing from Stanley Black & Decker. Howmet acquire CAM to strengthen its positioning in fasteners and fittings. Therefore, the deal targets higher-value aerospace and defense components.

CAM produces manufactured parts for aerospace and defense use. The product set includes fasteners and fittings with strict qualification requirements. Meanwhile, these components sit at the heart of airframe and engine build schedules. As a result, suppliers with scale can win longer programs and steadier demand.

Aerospace fastener portfolio becomes a strategic lever for OEM supply chains

Aerospace fastener portfolio expansion supports reliability and delivery performance. Fasteners look small, but they create major assembly bottlenecks. However, qualification cycles and approved vendor lists limit rapid supplier switching. Therefore, integrated producers can capture pricing power during tight lead-time cycles.

Howmet expects the deal to build out its differentiated fastener portfolio. That phrasing signals a focus on certified products and engineered specifications. Meanwhile, airlines and defense buyers push for supply assurance and traceability. As a result, portfolio breadth matters as much as unit cost.

Defense fasteners and fittings benefit from backlog and program longevity

Defense fasteners and fittings tend to ride multi-year procurement cycles. Programs also demand repeatable quality and documented materials compliance. However, industrial capacity still faces labor and machining constraints. Therefore, acquisitions that add ready capacity can shorten time-to-scale.

Howmet expects the acquisition to close in the first half of 2026. The timeline suggests standard approvals and integration planning. Meanwhile, execution will determine synergy capture and customer retention. As a result, early operational stability will drive the deal’s real value.

The Metalnomist Commentary

This acquisition looks like a targeted move into high-friction, qualification-heavy components. However, fastener scale only wins if delivery stays flawless. The next advantage will come from integrated sourcing and disciplined capacity planning.

Titanium Producers ATI and Howmet Adjust Outlook Amid Boeing Strike Fallout

Howmet Aerospace

The recent strike at Boeing has caused significant disruptions in the aerospace supply chain, prompting titanium producers ATI and Howmet Aerospace to temper their growth forecasts for the next two quarters. The strike, which halted production of critical aircraft programs such as the 737 MAX, 767, and 777, has delayed shipments and forced adjustments in the titanium industry.

Supply Chain Challenges from the Strike

Boeing's machinists, numbering over 32,000, began their strike on September 13, only returning to work after approving a new contract on November 4. While all workers were scheduled to resume duties by November 12, Boeing noted that ramping up production would require time to retrain and recertify employees and stabilize disrupted supply chains.

The strike exacerbated Boeing's existing struggles with constrained production rates for the 737 MAX, which was already operating below the federally allowed cap of 38 aircraft per month. By August, output was down to 31 aircraft per month before all manufacturing came to a halt.

Impact on ATI and Howmet Aerospace

Both ATI and Howmet reported disruptions in titanium shipments during the third quarter. Some distributors and machine shops canceled orders or deferred deliveries into late 2024, particularly affecting ATI. Howmet, on the other hand, decided to scale back its shipments to Boeing, closely monitoring labor action developments.

• ATI revised its 2024 adjusted earnings guidance to $700 million-$710 million, down from its August estimate of $720 million-$750 million.
• Howmet adjusted its baseline revenue forecast for 2024 to $7.41 billion, slightly below its previous forecast of $7.44 billion in July.

Despite these setbacks, Howmet's Q3 profit surged by 77% year-on-year to $331 million, with revenues climbing 11% to $1.8 billion. ATI saw a modest 1% increase in profit to $83 million, although revenues dipped by 4% to just under $1.1 billion.

Outlook for Recovery

Both ATI and Howmet anticipate a gradual recovery as Boeing ramps up its supply chain operations and addresses workforce and production challenges. ATI estimates modest growth in the coming quarters, while Howmet is aligning its expectations with Boeing's adjusted output levels.

Howmet Hampton fire briefly pauses output at aerospace castings site

Howmet Aerospace

The Howmet Hampton fire briefly disrupted output at a key aerospace castings site. The Howmet Hampton fire started in a ventilation area on Tuesday. Howmet evacuated the facility, contained the blaze, and restarted production shortly after. No workers reported injuries.

The Hampton operation supplies parts for aircraft engines and industrial gas turbines. The plant makes investment castings and seamless rolled rings from titanium, nickel, and superalloys. Therefore, even short interruptions can ripple through tight turbine component schedules.

What the incident signals for aerospace capacity

The incident highlights how single-site events can stress aerospace delivery timelines. Many turbine programs run with little buffer, especially for castings and rings. As a result, OEMs and tier-one suppliers track recovery pace and work-in-process closely.

Fast restarts reduce risk, but they still require strict quality revalidation. Howmet must confirm thermal stability, contamination controls, and tooling integrity before full-rate output. Meanwhile, customers may rebalance orders across qualified sites if lead times widen.

Why titanium and superalloy supply chains care

The Hampton site sits inside a materials chain that already faces long qualification cycles. Titanium and nickel superalloy components demand certified melts, traceability, and repeatable processes. Therefore, buyers prioritize suppliers with robust EHS systems and redundant capacity plans.

Ventilation events also spotlight housekeeping and dust-control disciplines in high-temperature operations. Producers can cut recurrence risk with predictive maintenance, sensor upgrades, and rapid-response drills. However, insurance and downtime costs still rise as aerospace rates climb.

The Metalnomist Commentary

This fire looks contained, but it reinforces why resilience matters more than headline capacity. As engine build rates rise, small disruptions can trigger expensive rescheduling across the chain. Companies that invest in redundancy and safety will win share in the next cycle.

Howmet 2025 Guidance Adjusted Amid Tariff Uncertainty

Howmet

Aerospace and Defense Market Shows Diverging Trends

Howmet 2025 guidance has been revised as the company widened its full-year revenue outlook to $7.88bn–$8.18bn. However, the lower end was reduced by $50mn due to increasing tariff-related uncertainty. The company cited potential risks to commercial aviation and freight sectors, particularly in the U.S. market, as key factors for the adjustment.

Strong Defense Aerospace Sales Offset Commercial Concerns

Despite concerns over trade barriers, Howmet 2025 guidance remains supported by robust defense sector growth. The company’s defense aerospace revenue surged by 19% year-over-year to $333mn in Q1. CEO John Plant highlighted that defense demand remains “steady and growing,” contrasting with weakness in commercial aviation driven partly by Boeing’s tensions with Chinese carriers.

Boeing Outlook and Profit Growth Provide Stability

Howmet remains optimistic about Boeing’s short-term outlook, even though Chinese airlines are no longer accepting its aircraft. Boeing is Howmet’s largest customer, making its trajectory critical to Howmet’s performance. Net income in Q1 rose 42% year-over-year to $344mn, reinforcing the company’s stability despite trade headwinds. Howmet 2025 guidance still reflects confidence in its diversified portfolio and market positioning.

The Metalnomist Commentary

Howmet’s strategic flexibility is clear in its response to global tariff volatility. The strength in defense markets may act as a cushion against commercial softness, but ongoing U.S.–China aerospace tensions warrant close monitoring.

Boeing Alternative Fastener Supply Eases Pressure After PCC Facility Fire

Precision Castparts

Boeing has secured an alternative fastener supply after a fire at a key supplier facility raised concerns across the aerospace sector. The move ensures that the Boeing alternative fastener supply strategy will maintain production momentum, particularly for the 737 MAX program.

Fast Response Prevents Production Delays

The fire at Precision Castparts (PCC) STS-Jenkintown site in mid-February initially threatened Boeing’s aircraft build rates. However, Boeing quickly sourced alternate fasteners, allowing the company to avoid major disruption. CEO Kelly Ortberg reassured investors that no aircraft program would be held up, though inventory levels remain below optimal.

OEM partners, including RTX, echoed the sentiment. RTX, through its Collins Aerospace unit, supplies Boeing with landing gear and heat exchangers and reported optimism about minimizing production impacts from the incident.

Supply Chain Adjusts Amid Ongoing Scrutiny

The fire came during a sensitive period for Boeing, following the January 2024 mid-air panel blowout on a 737 MAX and a strike-induced production halt in Q4 2023. Titanium scrap suppliers have been closely monitoring Boeing’s production trends to assess material demand outlook.

Meanwhile, U.S. fastener supplier Howmet Aerospace has seen a surge in interest from OEMs and distributors looking to diversify risk. CEO John Plant stated that Howmet will prioritize long-term customers over short-term substitution requests, signaling a strategic shift in supply allocation.

Long-Term Implications for Aerospace Procurement

Although near-term risks have been mitigated, the fire has exposed vulnerabilities in aerospace fastener supply chains. As OEMs continue to increase build rates, the emphasis is now on securing stable, long-term partnerships with critical component suppliers.

The Metalnomist Commentary

Boeing’s swift sourcing of an alternative fastener supply underscores the importance of redundancy in aerospace value chains. While the company avoided immediate production setbacks, supplier strategies are clearly shifting toward selectivity and contract stability.

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.

US Titanium Mills Respond to Tariff Challenges with Strategic Shifts

US Titanium Mills: ATI

Focus Keyphrase: US Titanium Mills

US titanium mills are navigating a complex tariff environment following the Trump administration’s implementation of a 10% baseline import duty. Despite exemptions for some titanium forms, critical alloying elements and shop supplies remain exposed to tariff-driven cost pressures.

Major players like Howmet Aerospace and ATI have issued formal notices to customers. Howmet declared a force majeure on affected contracts, while ATI announced immediate price increases. Meanwhile, Perryman and Timet have adopted more cautious stances, opting to wait for further clarity before adjusting operations.

Exemptions and Exposure: What’s Included and What’s Not

The tariff exemptions cover some titanium feedstocks and semi-finished products.

However, vanadium pentoxide and other alloying materials used in aerospace titanium production were not exempted.

As a result, producers are adjusting to avoid significant cost overruns. ATI emphasized that tariffs “will significantly raise the costs to produce material,” and pricing must adapt. Howmet has opened the door to cost-sharing arrangements with customers, but its notice signals potential supply disruptions.

Industry Impact and Ongoing Uncertainty

The broader aerospace supply chain is at risk of increased pricing volatility. Both ATI and Howmet are evaluating sourcing alternatives to cushion downstream effects. Perryman’s reserved approach reflects industry-wide uncertainty as global suppliers weigh reciprocal measures.

It remains unclear how much of the tariff burden can be passed along. Producers and buyers alike now face an evolving cost landscape shaped by trade policy, production inputs, and customer flexibility.

The Metalnomist Commentary

The reaction from US titanium producers signals a critical tension point between trade protectionism and material supply chain security. As cost pressures rise, manufacturers may need to reassess sourcing and pass-through strategies in an increasingly volatile market.

Safran’s Second Quarter LEAP Engine Deliveries Decline Due to HPT Yield Issues

French aerospace manufacturer Safran reported a significant drop in LEAP engine deliveries in the second quarter and first half of 2024, attributing the decrease to issues with high-pressure turbine (HPT) blade yields from its suppliers. This shortfall has impacted commitments to major airframe customers, Boeing and Airbus.

CFM International, a joint venture between GE Aerospace and Safran Aircraft Engines, delivered 664 LEAP engines in the first half of 2024, a decline from 785 units in the same period last year. The second quarter saw a particularly steep drop, with deliveries falling by 29.1% to 297 units. Safran's CEO, Olivier Andries, noted that the lower yield of HPT blades supplied to GE in April and May was a primary factor in this reduction. Although yields have slightly recovered, they have not yet returned to normal levels.

Howmet Aerospace, the primary supplier of HPT blades, has ramped up production by 40% in recent months and claims to be operating at or above capacity with current yields. Despite this, Safran has revised its full-year LEAP delivery guidance to flat to 5% growth over 2023, down from an earlier forecast of 10-15% in April and 20-25% at the start of the year. This revision is largely due to reduced deliveries of LEAP-1B engines to Boeing, stemming from decreased 737 MAX production, and ongoing HPT yield issues affecting Airbus more severely.

Despite these challenges, Safran expects to increase LEAP engine deliveries in the second half of the year, with improved HPT yields and a focus on supporting Airbus. Safran is carefully managing the situation to serve both airframers and airliners effectively.

In the first half of 2024, Safran's revenue from its propulsion segment rose by 13.8% year-on-year to $6.46 billion, driven by a 29.9% increase in civil aftermarket revenues. This growth was primarily due to strong demand for CFM56 spare parts and LEAP service contracts. Additionally, deliveries of CFM56 engines increased by four units to 28, high thrust engines rose by eight units to 91, while M88 military engine deliveries fell to 14 units from 31 in the same period last year.

Safran's equipment and defense revenues also increased by 26% to $5.17 billion, driven by higher original equipment sales, including nacelles and landing gear sets for the A320, A330, and 787 programs. The strong civil aftermarket demand has prompted Safran to raise its revenue guidance for that segment to "upper mid-20s" growth, from around 20% previously.

Boeing Restarts Third 737 Line at Renton Plant Amid Engine Delivery Challenges

Boeing has restarted the third production line for its 737 aircraft at its Renton plant, a move aimed at boosting output amidst ongoing supply chain disruptions. The decision comes as French aerospace manufacturer Safran reported a decrease in LEAP engine deliveries, which has impacted both Boeing and Airbus. Safran, which produces the LEAP engines through a joint venture with GE Aerospace called CFM International, has faced issues with the high-pressure turbine (HPT) blade supplier yield, affecting their commitments to airframer customers.

In the first half of 2024, CFM International delivered 664 LEAP engines, which is 121 less than the 785 engines delivered in the same period the previous year. The shortfall was particularly severe in the second quarter, with deliveries down by 29.1% to 297 units. Safran's CEO, Olivier Andries, attributed this decline to lower yields of HPT blades supplied to GE during April and May. Although the yield levels have slightly improved, they have not yet returned to normal.

Howmet Aerospace, the primary supplier of HPT blades, asserted that it has ramped up production by 40% in recent months and does not expect to limit LEAP-1A build rates. Despite this, Safran has revised its full-year LEAP delivery guidance downwards, now anticipating flat to 5% growth over 2023, a significant reduction from earlier forecasts of 10-15% in April and 20-25% at the start of the year. The downward revision is due to reduced deliveries of LEAP-1B engines to Boeing because of decreased 737 MAX output and the HPT situation. While the HPT issue mainly affects Airbus, Boeing has mitigated some impact through inventoried LEAP-1B engines.

Nevertheless, Safran expects to deliver more LEAP engines in the latter half of the year, with improved HPT yields and a focus on supporting Airbus. However, Safran continues to manage the situation carefully to serve both airframers and airliners.

Strong 1H aftermarket revenue

In the first half of 2024, Safran's revenue from its propulsion segment rose by 13.8% year-on-year to $6.46 billion, driven by a 29.9% increase in civil aftermarket revenues. This growth was mainly due to the demand for CFM56 spare parts and LEAP service contracts. CFM56 deliveries increased by four units to 28 in the first half, high thrust engine deliveries rose by eight units to 91, while M88 military engine deliveries more than halved to 14 units from 31 in the same period last year.

Equipment and defense revenues increased by 26% to $5.17 billion, primarily driven by higher original equipment sales. Deliveries of nacelles and landing gear sets increased across the A320 and A330 programs, as well as 787 landing gear sets. The strong demand in the civil aftermarket prompted Safran to raise its revenue guidance for that segment to "upper mid-20s" growth, up from the previous estimate of around 20%.

Toho Titanium Weighs Options for New Titanium Sponge Plant

Toho Titanium Factory

Japan's Toho Titanium is contemplating the establishment of a new titanium sponge production facility, potentially in the US, Saudi Arabia, or Japan, as the company revealed to Metalnomist. This move is driven by the expected surge in demand from the aerospace sector, with original equipment manufacturers (OEMs) accelerating aircraft production.

Toho Titanium aims to finalize its decision on the project within this year, although specific locations and production capacities are still under review. While the company has not disclosed the capital expenditure (capex) or a construction timeline, market observers estimate that the investment required would be at least $300 million, with any new site likely taking around four years to become operational.

As a point of reference, Toho Titanium’s joint venture with Saudi firm AMIC, which resulted in a 15,600 t/yr sponge plant in Saudi Arabia, was announced in 2014, commenced construction in 2015, and began commercial production in 2019. The project involved an investment of $420 million.

Among the potential locations, Saudi Arabia is favored for its lower electricity costs. Toho is also considering the US, which would offer proximity to major titanium sponge consumers like Titanium Metals (Timet), ATI, Howmet, and Perryman. Alternatively, the company may expand its existing operations in Japan.

The acceptance of a Japanese sponge plant in the US is uncertain, especially after the opposition to Nippon Steel’s proposed acquisition of US Steel. Furthermore, in March, several US senators introduced a bill to suspend duties on titanium sponge imports, facilitating imports from Japan. This bill, supported by all four major US melters, suggests no immediate plans from Timet or ATI to restart idled domestic capacity at Henderson or Rowley.

Last month, Japanese titanium producer Osaka Titanium announced a ¥30 billion ($191 million) investment to build a new plant in Amagasaki, which will increase its titanium sponge capacity from 40,000 t/yr to 50,000 t/yr.

Investments from Toho and Osaka, along with continued procurement from Russia’s VSMPO-Avisma, could delay the anticipated deficit in the aerospace sponge market. The acceptance of Chinese sponge remains a contentious issue, with concerns about consistent production quality, especially given the industry's emphasis on quality and safety compliance.

Near-Term Challenges vs. Longer-Term Growth

The recovery in demand for widebody aircraft for international travel is set to be the primary driver of titanium consumption in the coming years. European firm Airbus aims to produce 12 aircraft per month by 2028 for its A350 program, while US firm Boeing targets 10 per month by 2026 for its 787 model.

In the short term, supply chains are struggling to match the recovering demand. Airbus CEO Guillaume Faury noted in the company’s April earnings call that although the issues are manageable on a case-by-case basis, the overall environment remains challenging.

Despite downstream production setbacks and persistent supply chain limitations, the demand for titanium sponge upstream remains strong. Melters, forgers, and parts manufacturers are increasing their inventories of titanium products in anticipation of higher demand in the latter half of the year.