Howmet CEO OK with GE Aerospace deal, focused on meeting demand

Howmet Aerospace CEO John Plant has stated he is comfortable with GE Aerospace's $12 billion plan to acquire Consolidated Precision Products (CPP), a move aimed at alleviating jet-engine supply bottlenecks. Despite this, Howmet itself is facing significant challenges in meeting soaring customer demand for engine parts, a situation Plant described as "testing us."

Plant indicated that while GE Aerospace intends to invest in and grow CPP, Howmet remains confident in its own capabilities. He noted that the company's current growth trajectory and capital expansion efforts are pushing its limits.

Demand for engine components is high, driven by increased production from commercial planemakers and defense contractors. Additionally, Howmet supplies blades and vanes for gas turbines used in data centers, a sector benefiting from the expansion of AI technologies.

Plant plans to provide an update on Howmet's longer-term revenue targets in the coming earnings calls, potentially revising a previous projection of doubling revenues within three to five years from 2025.