Howmet Aerospace (HWM) Jefferies Global Industrials Conference 2026 summary

Market trends and demand evolution

• Data center demand is shifting from standard to advanced, custom silicon, driving variable power needs and influencing turbine technology choices.

• Turbine manufacturers face increased demand for robust, technologically advanced blades, with contracts extending through the decade and some exclusive arrangements.

• Capacity expansion is a priority, with decisions on new facilities expected in the next two to three years.

• Demand for both aerospace and industrial gas turbines is rising, with spares and aftermarket services expected to grow significantly into the 2030s.

• Defense portfolio growth is anchored by major programs like the F-35, with increasing demand for missiles, drones, and collaborative combat aircraft.

Technology and product innovation

• Technological evolution in turbine blades includes a shift from equiaxed to directionally solidified and single crystal designs, with increasing sophistication in both mid-size and large turbines.

• New product introductions are at record levels, with significant advancements in both commercial and defense aerospace markets.

• Investment in the world's largest casting furnaces supports the production of larger, more advanced blades.

• Yield improvements and transition to serial production are driving a 30%+ increase in output this year.

Competitive positioning and IP protection

• Market share in turbine and blade manufacturing is significant and growing, supported by long-term contracts with major OEMs.

• Intellectual property is protected through cybersecurity, physical process partitioning, and limited patenting to keep innovations confidential.

• Entry barriers remain high due to technological complexity and capital requirements, making new competition unlikely.