“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.

“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.