Polen Capital Management, LLC - Focus Growth Composite on Howmet Aerospace Inc.
Thesis
Howmet supplies highly engineered components for commercial aerospace engines and operates in parts of the supply chain with very few qualified scaled competitors. Polen believes its technical capabilities, scale, customer approvals, and position in mission-critical components create an advantaged competitive position. The company can benefit both from higher new-aircraft production and from airlines extending the life of existing fleets, because either path increases demand for engine components over time.
“Importantly, Howmet can potentially benefits from both new aircraft production and aftermarket demand.”
Key risks
- Dependence on commercial aerospace production and aftermarket demand
- Industry demand could weaken if aircraft utilization or production falls