Howmet Aerospace (HWM) CEO signals higher capex in 2027 as order books fill up

As seen on the 24/7 Wall St. homepage on August 6, 2026.

Earnings · 2026 Q2 John Plant CEO
Our capital expenditure requirements continue to increase, and we already see the need to increase this further in 2027 to support future organic growth expectations in both the aerospace and gas turbines markets. We closed the CAM acquisition in April, and the integration is on track. Continued healthy cash generation will allow us to achieve pre-CAM leverage levels in short order, with the Company well positioned to consider all paths of capital deployment optionality going forward.

A $109 billion supplier telegraphing another spending step-up for 2027 is confirming that jet engine and gas turbine order books are booked out well past next year. The April CAM deal added leverage, but management expects to be back at pre-deal levels quickly, which puts buybacks and further M&A back on the table.

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CEO John Plant said in Howmet's second-quarter 2026 earnings that capital expenditure requirements are already set to rise further in 2027, driven by demand in both aerospace and gas turbines. The comment confirms that the company's order books in jet engine and gas turbine components are filled well beyond 2026, giving management enough visibility to commit to another round of investment before the current spending cycle has finished.

The April CAM acquisition added leverage to the balance sheet, but Plant expressed confidence that healthy cash generation will return the company to pre-deal leverage levels quickly. Once there, Howmet — valued at roughly $109 billion — would be positioned to consider buybacks or additional acquisitions, with management describing the options as 'all paths of capital deployment optionality.'

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The integration of CAM is described as on track, which removes one near-term uncertainty for investors watching whether the deal disrupts the company's financial rhythm. The combination of a tightening aerospace supply chain, rising gas turbine demand, and a management team openly discussing further M&A keeps the strategic picture active heading into the back half of 2026.

Sources

Mentioned: HWM

Related Market Updates

HWM Howmet Aerospace Inc.
Q2 2026
EPS
$1.33
est $1.25 +6.7%
Revenue
$2.55B
est $2.43B +4.8%

Howmet raised full-year revenue guidance to $10.0 billion to $10.1 billion on gas turbine demand management calls extraordinary. Engine Products margins, the dividend increase and buybacks all moved higher with it.

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Earnings · 2026 Q2 John Plant CEO
Looking ahead, Howmet is well positioned, with all our major markets in growth mode. More robust build rates for commercial aircraft are supported by record backlogs, while engine spares needs continue to increase. Defense markets remain healthy, and the focus for missiles, drones and collaborative combat aircraft continues with growth expected over the medium term. Demand in the gas turbines market is extraordinary with customers already revisiting and adding to their demand outlooks. The…

Power-demand buyers are already coming back to raise their orders, and Howmet's chief says every end market it serves is growing at once: aero, defense, gas turbines and now commercial trucks. For a $109 billion supplier, that is the rare setup where no segment is dragging.

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