SpaceX Just Dealt a Big Blow to Howmet Aerospace Stock

SpaceX's announcement that it plans to manufacture natural-gas turbine blades and vanes in-house has caused a significant decline in Howmet Aerospace (HWM) stock, with shares dropping 7.5%. This move could potentially accelerate the deployment of new turbines by up to 18 months, which could put pressure on Howmet's growth story.

Howmet currently holds over 50% of the global market for industrial gas-turbine blades, with its gas-turbine revenue up 38% in the latest quarter. The company's strong position in the turbine-blade market has been benefiting from increased demand, driven by the need for electricity in AI data centers and utilities expanding power-generation capacity.

SpaceX's foundry could lead other major customers to consider vertical integration, posing a potential threat to Howmet's growth. However, Bernstein believes the risk to Howmet is minimal, and Citi sees the decline as a potential buying opportunity. Howmet Aerospace is a global provider of advanced engineered solutions serving various industries, with a market capitalization of $101.2 billion.

Its stock has gained 26% year-to-date and 48% over the past year, despite recent weakness. The company reported strong Q2 2026 results, with revenue up 24% year-over-year and operating income increasing 36% YoY.