SpaceX turbine plan sends Howmet shares down 7.5%

Howmet Aerospace shares fell 7.5% after Elon Musk said SpaceX plans to bring the casting of natural-gas turbine blades and vanes in-house. Musk reportedly said the move could accelerate the deployment of new turbines by up to 18 months, according to Yahoo Finance.

The plan has raised concerns about a potential threat to Howmet’s position in the specialised turbine-component market. Howmet reportedly holds more than half of the global industrial gas-turbine blade market, while its gas-turbine revenue rose 38% in its latest reported quarter.

The company’s broader results have been strong. Howmet reported second-quarter 2026 revenue of US$2.54 billion, up 24% from a year earlier, and raised its full-year guidance. Demand for gas-turbine components has benefited from rising electricity requirements linked to artificial intelligence data centres.

Analysts cited in the report said SpaceX’s initiative may primarily reflect vertical integration to support its own power requirements. Bernstein reportedly saw limited immediate risk to Howmet, while Citi described the share-price decline as a potential buying opportunity.

It remains unclear whether SpaceX intends to supply turbine components commercially or primarily meet its own requirements. The long-term effect on Howmet’s market position has not been established. Howmet shares were still reported to be up 26% for the year, despite trading about 16% below their 6 August 52-week high.