Howmet ($HWM) podcast mentions
Yeah, TJ Maxx is funny. It's like shopping at a flea market. You may find the treasure, but there's— what's the opposite of treasure anyway? How about this, Bart? I want to give you something to look at too. I'm looking at Howmet Aerospace, ticker HWM. They make the metal parts that go into jet turbines and, uh, gas turbines for data centers and all sorts of other complex machines. Shares are down more than 10% this week after one of their big customers, GE Aerospace, announced plans to buy CPP, which is one of Howmet's rivals. I get why the market's concerned here. This is vertical integration for GE, and over time it could cause GE to take some of that business they're currently doing with Howmet and bringing it in-house. But that will take a lot of time, years if not decades. And I think for every dollar in business Howmet potentially loses to GE, they have the opportunity to take new business from GE's competitors like Pratt& Whitney, who are currently giving that money to CPP and might not want to give it to what is now GE. I think this weakness is a buying opportunity in a great company, and I'm watching closely.
Lou Whiteman · Motley Fool Hidden Gems Investing · Apple Folds & Meta Muses · 2026-09-11Always sexy. But I have to say, this is how I met Howmet. This is the first time I've heard of the company, so I'm going to be looking into it.
Jason Hall · Motley Fool Hidden Gems Investing · Apple Folds & Meta Muses · 2026-09-11All right. Howmet or TJX Companies, which one's going on your watch list, Bart?
Travis Hoeyem · Motley Fool Hidden Gems Investing · Apple Folds & Meta Muses · 2026-09-11Howmet all the way.
Lou Whiteman · Motley Fool Hidden Gems Investing · Apple Folds & Meta Muses · 2026-09-11I saw where you liked Howmet on September 2nd, and with the recent sell-off on the news of companies vertically integrating turbine component casting in-house, do you see future revenue displacement that justifies the repricing of Howmet's moat? Or is the market overreacting because demand remains supply constrained?
Speaker B · Mad Money w/ Jim Cramer · Mad Money w/ Jim Cramer 9/10/26 · 2026-09-10As you say, this is basically vertical integration. CPP has been working with GE for more than 15 years now, mostly on the airfoil. That's the blades of the jet engine. They are maybe the third-largest supplier of their group of companies to GE. They are by far not the biggest, but what they do, they do well. What does this do for GE? There's some cost savings for bringing in-house, yes, but mostly, we're not talking about cost savings here. You get ahead of the line on procurement, you move quicker on ramping up, and it also should help them by bringing in this key supplier in-house as you design new engines. This is kind of a threat to CPP's competitors. I don't think that really matters for now. I saw Howmet, which is the public company you can look at as a competitor here, was down 7-8%. I think that's an overreaction. Right now, Howmet is a bigger supplier to GE. Over time, maybe they try and move some them in-house. But you're talking 5 years out or so, I think, before you see any movement there. And as you say, CPP, it's awkward on the other side too. They do work for Honeywell, they do work for Pratt Whitney. There could be new opportunities for Howmett and other rivals if CPP is brought in-house to kind of offset any lost business that they might have at GE.
Travis Hoyem · Motley Fool Hidden Gems Investing · GE Aerospace Goes Vertical (Integration) · 2026-09-08Here's my question. Mhm. Two days ago Hello, 2 days ago Elon Musk said that SpaceX intends to cast its own natural gas turbine blades and vanes. Do you think this announcement would be a fatal blow to the growth success of Howmet Aerospace?
Speaker F · Mad Money w/ Jim Cramer · Mad Money w/ Jim Cramer 9/2/26 · 2026-09-02Yeah. You think it's a little coordinated counter— counter messaging? Yeah. They were enjoying their oligopoly. Yeah, maybe. "By doing in-house casting at SpaceX, we can accelerate natural gas turbines coming online by up to 18 months, which is a profound game changer," he wrote in his post responding to a report from The Information. Interesting. In mid-August, Morgan Stanley published a report saying that SpaceX was planning such a foundry in Bastrop, Texas, based on the company's job postings. Shares of Howmet Aerospace fell more than 7% Monday before partially rebounding on Tuesday. Howmett and Berkshire Hathaway's Precision Castparts are the two biggest players in the market for these parts, which also include blades and vanes for the aerospace and defense sectors. Smaller players, DPC's shares were also hit. It is premature to scout— to count SpaceX as a threat, the Wall Street Journal says, but shares of Howmett Aerospace and DPC might have been due for a breather. They are among the priciest artificial intelligence picks and shovels plays at 42 times and 45 times forward earnings respectively. Turbine makers GE, Vernova, and Caterpillar fetch 33 times and 26 times earnings for perspective. And there's a nice chart there to show you the price to earnings, price to forward earnings ratios for some of the AI bottleneck plays. And the blade and vane manufacturers are up in the upper echelon. DPC is the most vulnerable to disruption in this space. It is small and about 40% of the revenue comes from natural gas-fired turbines. While Howmett holds about half the global market share of components used in natural gas turbines, it is diversified across aerospace and defense with only 11% coming from gas turbines. SpaceX will face barriers to entry. One reason there are so few companies in the sector is that it's technically challenging to make the blades which must withstand extreme temperatures and rapid rotations. That feels like SpaceX's bread and butter, though. The casting process makes a— involves making a new wax mold from scratch each time. Making these parts requires the blade to be grown in a vacuum furnace as a single crystal of nickel superalloy, according to Nigel Cheung, an analyst at SemiAnalysis. SemiAnalysis getting a shout out in the Wall Street Journal. Even a stray grain or hairline defect means the part has to be scrapped, he added.
John Coogan · TBPN · Another AI Safety Kerfuffle, Markiplier’s Stake in GoPro, SpaceX Getting Into Turbines | Diet TBPN · 2026-09-02A new manufacturing line could scrap over half of its production for a long period, so yield will be difficult to get up. It is also a highly secretive process. Once the parts are produced, the ceramic cores and wax used to make them are destroyed, Howmett's chief executive Jon Plant said at an investor meeting earlier this year. He says, we're not getting distilled. Don't worry about it. We're good. We destroy every evidence that would lead someone to be able to copy us. That prevents competitors from reverse engineering them. So Howmet Aerospace's annual revenue from industrial gas turbines is up and to the right with incredible forecasts. And you can see the chart taking off. They're going exponential right now. A high scrap rate might make— might matter less if SpaceX is making parts for its own use. Morgan Stanley's report noted that we would not expect SpaceX to be a material supplier of blades and vanes for supply outside of SpaceX use. So they're going to use everything internally. Speaking of industrials, we got to talk about rotor sails. So there was news in the Financial Times that Maersk is going to put a wind sail on their container ship. And there's a very interesting— it's a very interesting design because I see the image for the ship.
John Coogan · TBPN · Another AI Safety Kerfuffle, Markiplier’s Stake in GoPro, SpaceX Getting Into Turbines | Diet TBPN · 2026-09-02Yeah, maybe. By doing in-house casting at SpaceX, we can accelerate natural gas turbines coming online by up to 18 months, which is a profound game changer, he wrote in his post responding to a report from The Information. Interesting. Wasn't Sarah Guo mentioning on the Investing the Best podcast that a lot of the— or she was talking to a hyperscaler CEO or someone who was in a place to know that was saying like the bottleneck is real. It's very real. And there's nothing in the short term that's going to come online that will alleviate power generation. So that is where the real bottleneck is, at least in the short term. So in mid-August, Morgan Stanley published a report saying that SpaceX was planning such a foundry in Bastrop, Texas, based on the company's job postings. Shares of Howmet Aerospace fell more than 7% Monday before partially rebounding on Tuesday. Howmet and Berkshire Hathaway's Precision Cast Parts are the two biggest players in the market for these parts, which also include blades, which also include blades and vanes for the aerospace and defense sectors. Smaller players, DPC's shares were also hit. It is premature to scout to count SpaceX as a threat, the Wall Street Journal says. that shares of Helmet Aerospace and DPC might have been due for a breather. They are among the priciest artificial intelligence picks-and-shovels plays at 42 times and 45 times forward earnings respectively. Turbine makers GE Vernova and Caterpillar fetch 33 times and 26 times earnings for perspective. And there's a nice chart there to show you the price-to-earnings price-to-forward earnings ratios for some of the AI bottleneck plays and the blade and vane manufacturers are up in the upper echelon. DPC is the most vulnerable to disruption in this space. It is small and about 40% of the revenue comes from natural gas-fired turbines. While Howmett holds about half the global market share of components used in natural gas turbines, it is diversified across across aerospace and defense, with only 11% coming from gas turbines. SpaceX will face barriers to entry. One reason there are so few companies in the sector is that it's technically challenging to make the blades, which must withstand extreme temperatures and rapid rotations. That feels like SpaceX's bread and butter, though.
John Coogan · TBPN · Yapping in Neuralese, GoPro v2, Jimmy Iovine in the Ultradome | Nikesh Arora & Andrei Serban, Kurt Tenenbaum, Philip Johnston · 2026-09-02Uh, the casting process makes a— uh, involves making a new wax mold from scratch each time, making these parts requires the blade to be grown in a vacuum furnace as a single crystal of nickel super alloy, according to Nigel Chong, an analyst at SemiAnalysis. SemiAnalysis getting a shout out in the Wall Street Journal. Even a stray grain or hairline defect means the part has to be scrapped, he added. A new manufacturing line could scrap over half of its production for a long period, so yield will be difficult. To get up. It is also a highly secretive process. Once the parts are produced, the ceramic cores and wax used to make them are destroyed, Howmet's chief executive Jon Plant said at an investor meeting earlier this year. He says, we're not getting distilled, don't worry about it, we're good. We destroy every evidence that would lead someone to be able to copy us. That prevents competitors from reverse engineering them. So Howmet Aerospace's annual revenue from industrial gas turbines is up and to the right with incredible forecasts. And you can see the chart taking off. They're going exponential right now. A high scrap rate might make— might matter less if SpaceX is making parts for its own use. Morgan Stanley's report noted that we would not expect SpaceX to be a material supplier blades and vanes for supply outside of SpaceX use. So they're gonna use everything internally. Internally. Speaking of industrials, we got to talk about rotor sails. So there was news in the Financial Times that Maersk is going to put a wind sail on their container ship. And there's a very interesting— it's a very interesting design because I see the image for the ship.
John Coogan · TBPN · Yapping in Neuralese, GoPro v2, Jimmy Iovine in the Ultradome | Nikesh Arora & Andrei Serban, Kurt Tenenbaum, Philip Johnston · 2026-09-02