Howmet Aerospace shares tumble 8% after SpaceX reveals plan to cast turbine blades in-house

Howmet Aerospace fell roughly 8% on August 31 after Elon Musk confirmed that SpaceX is building its own foundry in Bastrop, Texas, to cast gas turbine blades and vanes in-house. Musk said the move could accelerate natural gas turbines coming online by up to 18 months, which he called a "profound game-changer" for meeting surging AI data-center power demand. The disclosure, first reported by The Information based on job listings referencing a "blades and vanes foundry," raised fears that SpaceX could reduce or eliminate its reliance on Howmet, a leading supplier of precision-cast turbine components for aerospace and industrial customers.

Shares of GE Vernova and Siemens also fell on the news, reflecting broader concern that SpaceX's vertical integration could disrupt the established turbine component supply chain.

Bernstein analysts moved quickly to reassure investors, arguing they see little meaningful threat to Howmet from SpaceX's plans. The firm maintained its Buy rating on HWM, suggesting the market reaction was an overreaction to what remains an early-stage initiative by SpaceX with significant execution risk. Separately, analysts at Zacks had flagged Howmet as a strong growth stock ahead of the news, citing improving earnings estimates and revenue momentum that pointed to roughly 32% earnings-per-share growth for the full year 2026.