Howmet CEO comfortable with GE Aerospace's $12 billion CPP deal, says surging engine-parts demand is 'testing us'
Why It MattersThe deal signals consolidation in jet-engine castings supply just as commercial aviation, defense and AI-driven data-center demand push component makers toward capacity limits.
Howmet Aerospace CEO John Plant said Wednesday he is comfortable with GE Aerospace's $12 billion deal to acquire Consolidated Precision Products (CPP), a castings manufacturer, even as soaring demand for jet-engine parts strains Howmet's own operations. GE Aerospace announced the acquisition Tuesday in a move aimed at easing jet-engine supply bottlenecks, and the news sent Howmet shares down 10% on the day.
Speaking at the Jefferies Global Industrials Conference in New York, Plant said Howmet remains confident in its own capabilities despite uncertainty over how GE plans to deploy CPP, whether as a direct competitor or focused on a specific segment. "You saw the intent, you know, yesterday was to look at developing it over the years. And I think we should be fine with that," he said.
Plant said demand for engine components is intensifying across commercial aviation and defense, with Howmet's production of blades and vanes for gas turbines used in data centers, driven by artificial intelligence demand, adding further pressure. "It is testing us in many ways because, you know, we hadn't thought we were going to be there building this amount of equipment," he said, adding that "the sheer scale of the capital expansion is certainly testing us."
On longer-term revenue targets, Plant said he would update guidance within the next few earnings calls, reiterating a prior forecast that Howmet revenues would roughly double from 2025 levels within a three-to-five-year period.
