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.

Airbus Titanium Procurement Pull-Forward Aims to Prevent 2027 Supply Chain Shock

Airbus

Airbus titanium procurement is being pulled forward into 2026 as the aircraft manufacturer tries to avoid a sharp demand surge across the titanium supply chain in 2027. The decision reflects a more cautious approach to supplier visibility after Airbus previously reduced its 2026 titanium demand forecast to lower inventories.

The earlier correction may have gone too far. Airbus now sees a risk that lower 2026 buying could create a bullwhip effect when airframe demand rises sharply next year. By shifting some volumes into 2026, the company aims to smooth purchases and reduce pressure on melters, forgers, mills and downstream aerospace suppliers.

Airbus titanium procurement is closely linked to the A350 production ramp. The A350 is Airbus’ highest titanium-bearing platform, with titanium representing around 15% of aircraft weight. Higher build rates and a shift toward the larger A350-1000 variant will increase material requirements.

Airbus expects 2027 titanium demand to be roughly 30% higher than it expected one year ago. Pulling volumes into 2026 means 2027 demand should still rise from 2025, but remain below 2024 levels.

A350 Ramp-Up Drives Titanium Visibility Needs

The A350 production outlook is the main driver behind Airbus’ revised titanium strategy. Airbus is currently producing seven A350 aircraft a month, after ending 2025 at a rate of five to six a month.

The company plans to reach 10 A350s a month in 2027 and 12 a month in 2028. This production ramp will require more titanium across airframe structures, especially as customer demand shifts toward the larger A350-1000.

The A350-1000 carries a larger material requirement than the A350-900. A production mix weighted more heavily toward the larger variant will therefore increase titanium demand even if headline aircraft output rises gradually.

This is important for the titanium supply chain because aerospace titanium does not move like ordinary industrial metal. Qualified melt, billet, plate, bar, sheet and forged products require long lead times, strict certifications and controlled production routes.

Airbus’ forecast covers only airframe demand. It excludes titanium used in engines, landing gear and other equipment. This means the total aerospace titanium requirement could be higher once engine-makers and equipment suppliers are included.

The decision to bring demand into 2026 also gives suppliers a steadier signal. Aerospace suppliers need visibility to plan sponge, scrap, melt capacity, forging schedules, machining slots and qualification-controlled inventory.

Airbus works on a nine-month firm order placement basis. The company said the demand adjustment was already communicated to the market, although producer responses appear mixed.

One titanium producer said it had not yet seen additional demand linked to Airbus for 2026. Others expect higher titanium requirements from melters and original equipment manufacturers in the second half of the year.

That timing matters. If procurement signals reach upstream suppliers too late, the supply chain may still face bottlenecks in 2027. Titanium capacity exists, but qualified aerospace material availability can tighten quickly when aircraft production accelerates.

Titanium Supply Chain Faces Ramp-Up and Delivery Timing Risk

Airbus’ move highlights the sensitivity of aerospace supply chains after several years of disruption, inventory corrections and uneven delivery schedules. Aircraft demand remains strong, but material flows must match real production rates rather than short-term delivery numbers.

Airbus delivered nine A350s in January-March, implying a rate of three aircraft a month. However, the company said production is already running at seven a month, with deliveries affected by customer rescheduling and downstream part constraints.

This distinction matters for titanium demand. Material consumption follows production activity earlier in the manufacturing cycle, not only final customer deliveries. If industrial output is already at seven A350s a month, titanium requirements can rise before delivery data fully reflect the ramp.

Airbus is also dealing with supply difficulties in some downstream parts fitted late in the assembly sequence. These bottlenecks can delay aircraft handovers while upstream airframe production continues.

For titanium producers, this creates a planning challenge. Final delivery numbers may understate actual material pull if work-in-progress aircraft are moving through the industrial system.

The bullwhip risk comes from this mismatch. If Airbus reduces procurement too much during inventory normalisation, suppliers may cut capacity assumptions. When aircraft demand then accelerates, the supply chain can face a sudden order surge.

That surge can affect sponge buyers, scrap processors, vacuum arc remelters, alloy producers, rolling mills, forgers and machine shops. Aerospace titanium supply is especially vulnerable because customers cannot easily switch to unqualified material or non-approved sources.

The pull-forward strategy is therefore less about buying excess metal and more about stabilising the production curve. Airbus wants suppliers to see a smoother demand profile before the A350 ramp tightens the market.

The titanium market has been uneven. Standard-quality titanium demand has been pressured by aircraft inventory drawdowns, while premium-quality material for engine and high-specification applications has remained stronger.

Airbus’ revised approach could support confidence in airframe titanium demand. It may also reduce the risk that suppliers face a sudden 2027 spike after a weak 2026 procurement period.

The effect will depend on how quickly orders move through the supply chain. If melters and forgers receive stronger demand in the second half of 2026, the market could enter 2027 with better visibility and less disruption.

For aerospace manufacturers, the message is clear. Build-rate recovery requires more than aircraft orders. It requires coordinated material planning across titanium, aluminium, nickel alloys, forgings, castings, fasteners and machined components.

For titanium suppliers, the opportunity is also clear. Companies with qualified capacity, reliable lead times and strong Airbus exposure may benefit from a more stable procurement profile as the A350 ramp progresses.

The Metalnomist Commentary

Airbus titanium procurement pull-forward shows that aerospace supply chains are still vulnerable to planning shocks. The A350 ramp will reward suppliers with qualified titanium capacity, but only if demand signals reach the market early enough to prevent another bottleneck cycle.

Rolls-Royce Engine Deliveries Fall as Aftermarket Demand Supports Revenue

Rolls-Royce Engine

Rolls-Royce engine deliveries fell in 2025 as the UK jet engine manufacturer aligned output with slower airframe production schedules at Airbus and Boeing. The company delivered 483 engines, down from 529 in 2024 and below its guidance of 540-570 deliveries.

Rolls-Royce engine deliveries were split between 259 large engines and 224 business aviation and regional engines. The decline reflects ongoing aerospace supply chain constraints, where airframe build rates remain limited by parts shortages, engine availability, and production bottlenecks across the wider aviation manufacturing base.

However, Rolls-Royce still delivered stronger civil aerospace revenue. Revenue rose by 15pc year on year to £10.38bn, supported mainly by a 21pc increase in services and 3pc growth in original equipment. This shows how aftermarket demand can offset weaker new engine deliveries when airlines keep older aircraft in service for longer.

Shop Visits Rise as Airlines Extend Existing Fleet Use

Aircraft engine aftermarket activity strengthened as airlines delayed fleet renewal because of aircraft delivery constraints. Rolls-Royce total shop visits rose by 10pc to 1,440 in 2025 from 1,313 a year earlier.

Large engine major shop visits increased to 517 from 430 in 2024. This reflects heavier maintenance needs as carriers operate existing widebody fleets for longer. For Rolls-Royce, this increases service revenue and improves cash generation even when original equipment delivery volumes fall.

The trend also highlights a deeper aerospace supply chain issue. Delays in new aircraft deliveries do not remove demand for engine capacity. They shift part of that demand into maintenance, repair, overhaul, spare parts, and life-extension work.

Large Engine Backlog Strengthens Long-Term Visibility

Rolls-Royce strengthened its large engine order book despite weaker 2025 deliveries. The company extended its large engine backlog to 2,207 units after booking 638 large engine orders during the year.

Demand remained especially strong for Airbus widebody engine platforms. Rolls-Royce booked 226 orders for the Trent XWB-97, which powers the Airbus A350-1000, and 212 orders for the Trent 7000, used on the Airbus A330neo. These orders support long-term visibility for high-value engine production and aftermarket services.

The company expects 550-600 total original equipment deliveries in 2026 and 1,480-1,550 total shop visits. Rolls-Royce also continues to improve engine durability. The second phase of high-pressure turbine blade improvements for the Trent 1000 and Trent 7000 was certified in December, while XWB-97 improvements remain on track for completion by the end of 2027.

The Metalnomist Commentary

Rolls-Royce’s results show that aerospace demand remains strong, but production capacity is still constrained by the supply chain. For metals suppliers, the key signal is continued demand for nickel superalloys, titanium components, turbine blades, forgings, and repair materials tied to both new engines and aftermarket growth.

ATI titanium sales hit by OEM destocking, with engine demand offsetting weakness

ATI Factory

OEM destocking pressures ATI titanium sales in 2Q

ATI titanium sales weakened as Boeing and Airbus continued to destock inventories. The company said ATI titanium sales fell as airframe shipments dropped 7pc to $195mn. However, engine-related revenue surged and cushioned overall results. ATI titanium sales should stabilize as widebody build rates rise into 2026.

Capacity moves and engine programs support near-term outlook

ATI expects tightness in billets and landing-gear alloys by 4Q. Boeing lifted 787 output to seven per month, aiding demand. Meanwhile, the company broadened a titanium supply deal with Boeing. The agreement adds South Carolina sheet and more alloys.

ATI advanced new melt capacity to strengthen future flow. The Richland, Washington EB furnace targets standard-quality certification this year. Premium-quality approvals should follow in late 2025. Most ATI titanium serves structures, while PQ feeds rotating engine parts.

Engine programs drove growth across the quarter. Jet-engine product sales jumped 27pc to $448mn. Isothermal forging lead times stretch into 2027 as Pratt & Whitney ramps GTF fleet fixes. ATI balanced forgings between spares and new builds.

Financial snapshot signals resilience

ATI delivered higher profit despite airframe softness. Quarterly profit rose 23pc to $100mn on revenue up 4.1pc to $1.1bn. Nickel investments continue, with melting capacity rising 8-10pc by 2026. These steps hedge aerospace swings and support defense demand.

The Metalnomist Commentary

Destocking is a timing headwind, not a demand problem. With 787 and other widebodies improving, structural titanium should firm into 2026. Watch EB furnace qualifications and Boeing’s expanded scope, which could pull forward orders once inventory clears.

Airbus 2025 aircraft delivery target cut highlights aerospace aluminium alloys exposure

Airbus, A320

Airbus 2025 aircraft delivery target cut signals fresh risk in the global aircraft supply chain. Airbus lowered its 2025 delivery target to about 790 commercial aircraft. The company previously guided to 820 deliveries. Therefore, an A320-family fuselage panel quality issue is now shaping production planning.

Airbus 2025 aircraft delivery target cut follows a manufacturing disruption tied to fuselage panel quality. Airbus said the issue is resolved for new production. However, the new guidance suggests schedule recovery still faces constraints. As a result, delivery timing becomes the key variable for airlines and upstream suppliers.

A320 fuselage panel quality issue becomes a production bottleneck

A320 fuselage panel quality issue can slow final assembly even after a fix. Airbus delivered 585 aircraft in January to October. The company expects another 205 deliveries in November and December. Meanwhile, Airbus will disclose November deliveries on 5 December.

Airbus 2025 aircraft delivery target cut matters because narrowbody output depends on stable panel flow. Therefore, any disruption can cascade through assembly slots and acceptance flights. However, suppliers must still clear inspection backlogs and rework loops. As a result, delivery targets can soften even when the root cause is addressed.

Aerospace aluminium alloys stay central to delivery performance

Aerospace aluminium alloys remain critical across the A320 airframe. Airbus said most of the A320 airframe uses aluminium alloys. The company did not disclose which panel material the issue affected. Meanwhile, uncertainty on the exact material keeps attention on qualification and traceability controls.

Airbus 2025 aircraft delivery target cut reinforces how metals quality links to aerospace uptime. Therefore, aluminium producers and fabricators will prioritize tighter inspection regimes and process capability. However, the market will also watch whether any redesign shifts demand toward alternative alloys. As a result, aerospace aluminium alloys suppliers will compete on consistency, yield, and documentation.

The Metalnomist Commentary

Airbus 2025 aircraft delivery target cut shows how a single quality fault can reset a full-year delivery curve. Meanwhile, aluminum-intensive structures make upstream metallurgy and forming controls non-negotiable. Therefore, the next cycle will reward suppliers that prove zero-defect stability at scale.

Titanium Prices Hold as Inventory Drawdown Limits Spot Buying

Titanium

Titanium prices held steady in Europe and the US over the past month as mills, forgers and OEMs continued to rely on inventories instead of placing larger new orders. The market remained under pressure from surplus melt capacity and slower demand for standard-quality titanium used in airframe structures.

US 6Al 4V ingot prices stayed at $10-10.75/lb fob domestic producer, with some spot purchases still taking place near $10/lb. Mills kept offers broadly stable below $11/lb, although at least one producer quoted above that level for larger orders.

Titanium prices also remained flat in Europe, with 6Al 4V ingot assessed at $19.50-21.50/kg du Rotterdam. Forgers continued to work through high inventories of mill products before committing to new intermediate material purchases.

Aerospace Inventory Drawdown Keeps Pressure on Standard Titanium

Aerospace demand remained uneven as Boeing and Airbus continued inventory drawdowns. This primarily affected standard-quality titanium used in airframe structures, where consumption has been slower than in higher-specification applications.

Surplus melt capacity kept pressure on ingot prices. Market participants said lead times for basic Grade 5 ingot were around eight to 10 weeks, while some producers could likely deliver within six weeks if pushed.

Demand was stronger in premium-quality ingot for engine applications. Defence and medical markets also showed pockets of resilience, giving titanium producers some support outside standard aerospace structures.

Sponge and Commercially Pure Titanium Markets Stay Stable

Titanium sponge contract prices also remained stable. TG100 grade sponge long-term contract prices were assessed at $11-12/kg du Rotterdam in March, in line with standing 2026 contracts.

Saudi Arabian producer ATTM continued to operate normally, despite wider Middle East conflict risks and disruption around the Strait of Hormuz. The conflict has affected regional freight routes and disrupted some metals supply chains, but no direct titanium sponge impact was reported.

Commercially pure titanium ingot prices were also unchanged. CP Grade 1 ingot held at $12-14/kg cif main port, while CP Grade 2 ingot stayed at $11.10-12/kg cif main port.

Buyers avoided finalising new contracts as they focused on reducing stocks. However, inventory clearing remains difficult because lower-cost Chinese material continues to compete aggressively in downstream industrial markets.

The Metalnomist Commentary

Titanium prices are stable, but the market is not yet strong. The real divide is between standard aerospace titanium, where inventories still weigh on demand, and premium-quality, defence and medical applications, where strategic consumption remains firmer.

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.

Aircraft supply chain delays to last into 2030s

IATA

Aircraft supply chain delays will constrain airline growth into the 2030s, IATA warns. Aircraft supply chain delays now reflect worsening bottlenecks across engines, materials, and electronics. Therefore, airlines cannot replace older jets fast enough.

Aircraft supply chain delays may not ease before 2031–2034, according to IATA’s assessment. Delivery shortfalls total about 5,300 aircraft, while the backlog exceeds 17,000. Meanwhile, that backlog equals nearly 12 years of current production capacity.

Engine shortages and tariffs amplify production bottlenecks

Engine output now lags airframe output, creating parked “gliders” awaiting powerplants. As a result, final deliveries slip even when factories finish fuselages and wings. However, this imbalance also disrupts tier suppliers across castings, forgings, and precision machining.

Tariffs linked to United States–China trade tensions raise costs for metals and electronics used in aircraft builds. Therefore, input inflation can slow procurement and extend lead times. Meanwhile, aerospace-grade metals markets face choppier demand signals from shifting schedules.

Airlines pay the fuel and maintenance bill

Next-generation aircraft typically deliver more than 20% better fuel efficiency than older fleets. However, aircraft supply chain delays keep older aircraft flying longer. As a result, airlines burn more jet fuel than they would with faster fleet renewal.

An Oliver Wyman study with IATA estimated excess 2025 fuel costs above $4.2bn from older aircraft use. Meanwhile, average fleet age has reached about 15.1 years. Therefore, maintenance intensity rises and reliability planning becomes harder.

The same study estimated additional 2025 maintenance costs at about $3.1bn. As a result, the total cost burden from these delays reaches roughly $11bn for 2025. However, airlines still face demand growth that outpaces available capacity.

The Metalnomist Commentary

Aircraft supply chain delays now look structural, not cyclical, for this decade. Therefore, metals suppliers should plan for volatile call-offs and stricter qualification demands. Meanwhile, OEMs will likely pursue tighter vertical control and dual sourcing.

Aerospace-grade titanium ingot order strengthens India’s space titanium supply chain

PTC Industries

India’s aerospace-grade titanium ingot order signals faster domestic capability for space programs. PTC will execute this aerospace-grade titanium ingot order for ISRO’s Vikram Sarabhai Space Center. As a result, the deal accelerates India’s push for reliable 6Al-4V capacity.

From titanium sponge to 6Al-4V ingots for space hardware

The contract centers on converting 40 tonnes of Grade 1 titanium sponge into 6Al-4V ingots. PTC will use double vacuum arc remelting to hit aerospace consistency. Meanwhile, its Aerolloy unit already commissioned VAR and VIM furnaces in September.

PTC also positions the order as a stepping stone to wider aerospace qualification. Therefore, the company can translate space-grade deliveries into broader defense demand. The aerospace-grade titanium ingot order also validates its process route for premium alloys.

PAM scale-up expands scrap flexibility and alloy development

Aerolloy completed installation of a plasma arc melting furnace in Lucknow. The PAM line targets 600 tonnes per year of titanium ingots. Meanwhile, Aerolloy plans trial loads as commissioning begins.

The PAM furnace improves yield control when using turnings and smaller scrap forms. However, scrap sourcing still requires strict segregation and chemistry discipline. Therefore, PAM plus VAR can support smaller-batch “exotic” alloy programs with tighter specifications.

PTC is also building a fully integrated titanium platform across the value chain. The company aims to add upstream sponge and expand casting and machining services. Meanwhile, supply agreements with aerospace primes support longer-term demand visibility.

The Metalnomist Commentary

This order matters because it links space procurement to scalable industrial melting capacity. However, qualification depth will decide whether PTC wins recurring engine and airframe work. The winners will pair melting scale with repeatable metallurgy and inspection throughput.

Metalysis aluminium-scandium alloy powder enters commercial production in the UK

Metalysis

Metalysis aluminium-scandium alloy powder has reached commercial production in the UK. The move expands non-Chinese supply for a niche but strategic alloy. Meanwhile, Metalysis aluminium-scandium alloy powder targets faster deliveries for chip, defence, and aerospace customers.

Metalysis runs four Gen 2 units after doubling its operating base. Each unit produces up to 350kg per year of aluminium-scandium alloy powder. Therefore, the company positions itself for a meaningful share of a small market.

Gen 3 scale-up targets tonne output in a tight AlSc market

Metalysis plans tonne-scale output from Gen 3 units in the coming months. Nitesh Shah says the ramp will follow Gen 2 stabilisation and learning. As a result, aluminium-scandium alloy powder production could move from kilograms to tonnes faster.

Analysts estimate the aluminium-scandium market at only 3–4 tonnes per year. That tight ceiling makes reliability more valuable than headline capacity. However, even small expansions can reshape availability for high-purity powder buyers.

Export controls and semiconductor demand raise the value of Western supply

China’s export controls have pushed buyers to diversify the scandium supply chain. Metalysis aluminium-scandium alloy powder directly addresses that sourcing risk for midstream users. Meanwhile, customers increasingly prioritise traceable inputs for sensitive applications.

Chipmakers use aluminium-scandium sputtering targets in thin-film vapour deposition. They deposit aluminium-scandium nitride coatings for advanced semiconductor components. Therefore, stable AlSc alloy powder supply supports both yield control and procurement planning.

Defence and aerospace customers also dilute the powder with aluminium to make lightweight, high-strength alloys. That pathway links scandium availability to platform modernisation and airframe efficiency. However, the market will still demand strict quality control and consistent particle specifications.

The Metalnomist Commentary

Metalysis has entered a strategically important bottleneck, not a bulk metals market. Export controls will keep rewarding qualified non-Chinese suppliers with proven delivery. The next signal will come from Gen 3 qualification with semiconductor-grade customers.

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.

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.

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.

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.

Boeing Strike Settlement Offer keeps union on the line as talks stall

Boeing

Union machinists advanced a Boeing strike settlement offer, yet the walkout continues. Members approved a four-year proposal and sent it to Boeing for sign-off. However, Boeing questioned the move, calling it a vote on “a deal that isn’t real.” The company reiterated its 10 September offer and said it remains open to constructive talks. The Boeing strike settlement offer now sits with management while pickets hold.

Operations continue under pressure

Boeing is sustaining defense production while the Boeing strike settlement offer awaits a response. More than 3,200 workers have struck since 4 August after rejecting the last deal on 12 September. As a result, Boeing is hiring permanent replacements and deploying non-union staff from other sites. The Missouri and Illinois facilities support F-15, F/A-18, T-7A Red Hawk, and MQ-25 programs critical to US defense.

Supply chain and cost risks rise

The prolonged strike raises execution risk across the aerospace supply chain. Delays can ripple to Tier-1 and Tier-2 partners supplying alloys, castings, and avionics. Meanwhile, schedule slippage may defer consumption of titanium and nickel components tied to engine and airframe systems. Therefore, sustained disruption could lift rework costs and dent on-time delivery metrics, even if near-term production continues.

The union insists Boeing “has a responsibility” to accept the union-backed framework. Boeing argues only its prior offer is actionable at this stage. Both sides signal openness to talks, yet material differences remain over terms and timing. Ultimately, program milestones will hinge on a negotiated pathway that restores stable staffing across the affected lines.

The Metalnomist Commentary

Defense programs dislike uncertainty more than slowdown. Each week of disruption compounds integration risk, inventory mismatches, and supplier cash strain. Watch for interim MOUs that stage wage, benefit, and staffing provisions to restart momentum before a full contract is finalized.

Carpenter Technology aerospace growth set to accelerate through FY2026

Carpenter Technology

Aerospace-led mix lifts earnings and margins

Carpenter Technology aerospace growth will drive a stronger FY2026. The company guides earnings to $660mn–$700mn, up 26–33pc. Management cites robust demand from aerospace and defense, medical, and power generation. However, it notes softer trends in industrial and consumer markets. Carpenter Technology aerospace growth already reshaped revenue mix toward higher-value alloys.

Order trends and product mix underpin outlook

Carpenter Technology aerospace growth reflects a 20pc rise in FY2025 A&D sales to $1.4bn. Quarterly A&D sales also rose 2pc to $383.8mn. The A&D market now contributes over 60pc of company revenue. Meanwhile, pounds sold in SAO declined 11pc to 186.3mn lbs. Lower volumes still supported higher margins through favorable mix and pricing discipline.

Cash generation strengthens despite volume headwinds

Profitability improved sharply on premium content. Full-year profit reached a record $376mn, nearly double last year. Energy sector sales also increased year over year. However, SAO quarterly pounds dropped 18pc to 46.9mn lbs. The company offsets volume pressure with price, mix, and operational efficiency. Therefore, management remains confident in FY2026 guidance.

The Metalnomist Commentary

Carpenter’s pivot toward high-spec aerospace and defense alloys continues to pay off. Mix, not tons, drives this cycle as airframe and engine content rises. Watch lead times, melt capacity, and forging bottlenecks, which could further support pricing into FY2026.

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.

Machina Labs Aerospace Factory Signals a New Push in AI-Driven Metal Forming

Machina Labs

The Machina Labs aerospace factory marks a major step for AI-driven metal forming in the United States. The company raised $124mn to support its first large-scale production site. This new facility will produce complex structural assemblies from aluminum and titanium alloys. As a result, the Machina Labs aerospace factory could reshape part of the aerospace manufacturing workflow.

This matters because aerospace and defense manufacturers still face long lead times and rigid tooling requirements. Machina says its RoboCraftsman cells can form, trim, drill, and finish components without traditional dies or presses. That approach could make production more flexible and faster. Therefore, the Machina Labs aerospace factory is targeting a real industrial bottleneck.

The project also arrives with strong strategic backing. Toyota and Lockheed Martin joined the funding round through their venture capital arms. That support gives the startup more credibility in advanced manufacturing circles. Consequently, the Machina Labs aerospace factory now looks more like an industrial scale-up than a simple technology demonstration.

AI-Driven Metal Forming Could Change Aerospace Production Economics

AI-driven metal forming is attractive because it reduces the need for dedicated tooling. Traditional forming often depends on dies, molds, and press infrastructure built for specific parts. Machina’s model aims to avoid that limitation through reconfigurable robotic cells. As a result, manufacturers may gain faster response times and lower setup barriers.

That flexibility matters most in aerospace and defense. These sectors often require lower-volume, higher-complexity parts than mass automotive production. A manufacturing system that can switch part types without retooling offers a strong advantage. Therefore, AI-driven metal forming may fit aerospace better than many older production methods.

The Intelligent Factory reflects that logic at scale. Machina plans a 200,000-square-foot site with up to 50 RoboCraftsman cells. The company says the plant will produce thousands of complex structural assemblies each year. Meanwhile, the focus remains on sheet-metal structures rather than simple components.

Aluminum and Titanium Structural Assemblies Expand Beyond Traditional Tooling

Aluminum and titanium structural assemblies are central to Machina’s current strategy. The company has focused on airframe skins and structures for both commercial and military aircraft. It is also working on thin-walled parts for leading edges, skins, and control surfaces used in hypersonics and missiles. Consequently, the Machina Labs aerospace factory is targeting demanding applications rather than commodity parts.

The material roadmap adds further importance. Machina is working to qualify new materials and improve handling of high-temperature alloys, heat-treated grades, and specialty metals. That suggests the company wants to expand beyond current aluminum and titanium work. Therefore, the factory could become more important over time if material qualification progresses.

The business model also reaches beyond aerospace. Machina has applied its technology to custom automotive body panels as well. However, aerospace and defense remain the clearest commercial driver for now. As a result, the factory’s success will likely depend on whether it can meet strict quality and qualification demands in those sectors.

The Metalnomist Commentary

This funding round matters because it supports a factory, not just a concept. Machina is trying to industrialize flexible metal forming where titanium, aluminum, and lead time all matter. If the model works at scale, it could become a meaningful new layer in aerospace manufacturing automation.

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.

RTX Engine Deliveries Rise as Airbus Ramp-Up Drives New-Build Focus

RTX

RTX engine deliveries are set to rise in 2026 as the company shifts more output toward new aircraft builds. RTX expects large commercial engine shipments to increase by a mid-to-high single-digit rate from 2025 levels. That follows deliveries of 1,055 large commercial engines last year. As a result, RTX engine deliveries are becoming a more direct measure of Airbus ramp-up progress.

This shift matters because Pratt & Whitney supports key Airbus programs. Its engines mainly serve the A320neo and A220 families. RTX said the split between new-build installs and aftermarket shipments will favor new aircraft in 2026. Therefore, RTX engine deliveries will increasingly track airframe production rather than spare engine demand.

The company is making this move while aftermarket demand remains strong. Airlines still fly older fleets longer because new aircraft deliveries remain delayed. However, RTX now wants more of its engine output directed toward Airbus assembly lines. Consequently, the market will watch whether RTX engine deliveries can support higher narrowbody build rates without weakening service support.

Pratt & Whitney Supply Chain Expansion Is Becoming the Key Enabler

Pratt & Whitney supply chain capacity is now central to this delivery plan. RTX said it is expanding forgings and castings capacity to ease production bottlenecks. Those investments are designed to support Airbus as it pushes toward much higher monthly output targets. As a result, internal supply chain execution is becoming as important as final engine assembly.

The company has already committed major capital to this effort. RTX announced a $206mn expansion in Columbus, Georgia, covering engine MRO, nickel and titanium forgings, and compressor blade production. It also announced a $285mn investment in Asheville, North Carolina, to expand turbine blade castings. Therefore, RTX is reinforcing the upstream parts base that supports future engine growth.

These additions will not deliver full benefits immediately. RTX said the Asheville casting project remains in the build-up phase. Management also highlighted work on yields to ensure efficient production when output rises further. Meanwhile, a new powder metal tower and forging press are expected within the next 24 months. That means the supply chain still has execution risk even as capacity grows.

Airbus Ramp-Up Will Test Engine Flow and Material Discipline

Airbus ramp-up will put real pressure on engine delivery discipline. The aircraft maker wants to raise A320neo production to 75 aircraft per month by 2027. It also wants to lift A220 production to 12 aircraft per month this year. Therefore, RTX engine deliveries must improve not only in volume, but also in timing and consistency.

That challenge is already visible in recent numbers. Fourth-quarter large commercial engine shipments rose 12pc year on year to 312 units. RTX benefited from Airbus’ year-end push to meet its revised outlook. However, the market still sees engine shortages as one of the main constraints on narrowbody production. Consequently, 2026 will be a test of whether RTX can move from recovery to reliable support.

RTX’s broader results show it has momentum. Defense engine deliveries rose strongly in 2025, while Pratt & Whitney Canada also posted modest growth. Profit and revenue both increased over the year. Even so, the most strategic question remains clear. Can RTX engine deliveries rise fast enough to support Airbus without creating new strain elsewhere in the system?

The Metalnomist Commentary

RTX is no longer just solving a delivery backlog. It is rebuilding the industrial base behind future engine flow. If forgings, castings, and yield improvements hold, RTX could become one of the key enablers of the next aerospace production upcycle.