Executive Summary
Berkshire Hathaway’s aerospace powerhouse demonstrates operational recovery despite pandemic challenges. Precision Castparts Corp (PCC), acquired for $37.2 billion in 2016, has transformed from Warren Buffett’s acknowledged mistake into a turnaround success story.
In 2024, PCC achieved revenues of $10.4 billion, marking a 12% increase from $9.3 billion in 2023. Pre-tax earnings surged 24.4% to approximately $1.9 billion. The company operates more than 120 facilities globally with 20,000 employees.
PCC’s recovery trajectory accelerated through 2025, with second-quarter results showing revenue growth of 1.6% to $2.7 billion and pre-tax earnings rocketing 37% upward.
This momentum positions the company as a critical beneficiary of commercial aerospace recovery extending through 2026 and beyond.
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Table of Contents
Introduction
Precision Castparts manufactures mission-critical components that cannot be sourced elsewhere.
When a commercial aircraft engine operates at 2,500°F or a fighter jet performs high-G maneuvers, PCC’s investment castings, forgings, and fasteners must perform flawlessly.
This technological moat, built over six decades, creates sustainable competitive advantages that extend far beyond 2026.
Company Profile
Foundational Overview
Attribute | Details |
|---|---|
Founded | 1953 (Investment casting division of Oregon Saw Chain) |
Headquarters | Lake Oswego, Oregon |
Parent Company | Berkshire Hathaway (acquired January 2016) |
Employees | Approximately 20,000 worldwide |
Global Operations | 120+ manufacturing facilities across North America, Europe, and Asia |
Primary Markets | Commercial aerospace (60%+), defense aerospace (20%+), power generation (15%+) |
Business Segment Architecture
PCC operates through four integrated segments serving aerospace, defense, and industrial markets:
Investment Cast Products
- Structural investment castings (nickel, titanium, aluminum, steel)
- Airfoil castings for turbine engines
- Complex geometries impossible to forge or machine
Forged Products
- Aerospace-grade forgings (titanium, nickel superalloys, steel)
- Seamless pipe and fittings
- Specialized products for oil & gas applications
Airframe Products
- Fastening systems and specialty fasteners
- Complex aerostructures and assemblies
- Integrated structural components
Metals Products
- Premium nickel-based alloys
- Titanium mill products
- Revert services (metal recycling and reconditioning)
PCC’s vertical integration from raw materials to finished components creates operational synergies competitors cannot replicate.
Revenue Performance and Growth Drivers
Financial Trajectory 2023-2025
PCC’s financial resurgence demonstrates the company’s operational turnaround:
Period | Revenue | Pre-Tax Earnings | YoY Revenue Growth |
|---|---|---|---|
FY 2023 | $9.3 billion | $1.5 billion | +13.2% |
FY 2024 | $10.4 billion | $1.9 billion | +12.0% |
Q2 2025 | $2.7 billion | Pre-tax +37% | +1.6% |
The company surpassed pre-pandemic revenue levels in 2024, demonstrating complete recovery from COVID-19 disruptions that devastated aerospace supply chains.
Core Revenue Drivers Through 2026
Commercial Aircraft Production Ramp-Up
Boeing and Airbus combined delivered approximately 185 aircraft in December 2025 alone. Airbus achieved 793 deliveries for full-year 2025, while Boeing focused on recovery.
Industry projections indicate 1,044 Airbus and 708 Boeing deliveries for 2026, rising to 1,188 and 870 respectively in 2027.
PCC supplies components across next-generation platforms:
Boeing 737 MAX, 777X, 787 Dreamliner
Airbus A320neo family, A350 XWB
Regional jets from Embraer and Bombardier
Engine Manufacturing Surge
New engine programs drive disproportionate PCC content:
CFM International LEAP (powering 737 MAX and A320neo families)
GE9X (Boeing 777X powerplant)
Pratt & Whitney GTF (geared turbofan engines)
Rolls-Royce Trent XWB and UltraFan programs
Each new-generation engine contains 20-30% more PCC content than legacy powerplants due to increased use of advanced materials and complex geometries.
Defense Aerospace Stability
Military programs provide countercyclical revenue streams:
F-35 Lightning II (F135 engine components)
CH-53K heavy-lift helicopter
Various fighter and transport aircraft upgrades
Hypersonic weapon systems development
Defense contracts typically span decades, providing revenue visibility unmatched in commercial aerospace.
Aftermarket and MRO Expansion
The installed base of commercial aircraft exceeds 25,000 units globally. As fleet utilization normalizes post-pandemic, spare parts demand accelerates. PCC’s aftermarket revenues carry margins 40-50% higher than original equipment production.
Key Product Lines and Programs
Investment Castings: Engineering the Impossible
PCC pioneered large structural investment castings that revolutionized jet engine design. The company manufactures components weighing from ounces to several thousand pounds.
Turbine Engine Structural Castings
PCC produces structural frames that contain the massive forces within jet engines:
Mid-turbine frames
Turbine exhaust cases
Compressor cases and vanes
Bearing housings
These components operate in extreme environments where temperatures exceed 2,000°F and stresses approach material limits.
Airfoil Technology Leadership
The company leads globally in precision airfoil castings:
High-pressure turbine blades (single-crystal superalloys)
Low-pressure turbine blades and vanes
Compressor stator vanes
Industrial gas turbine components
PCC’s directional solidification and single-crystal casting processes create grain structures that dramatically improve high-temperature creep resistance.
Forged Components: Strength Where It Matters
PCC Forged Products manufactures mission-critical forgings in nickel superalloys, titanium, and specialized steels.
Aerospace Engine Forgings
Turbine discs and spacers
Compressor discs and hubs
Shafts and rings
Fan cases
Airframe Forgings
Landing gear components
Wing and fuselage structural fittings
Hydraulic system housings
Control surface attachments
The company operates hammer forges, isothermal presses, and ring rolling equipment spanning capacities from 500 to 50,000 tons.
Fastener Systems: Holding Everything Together
PCC Fasteners produces over 500 million fasteners annually for aerospace applications. These aren’t hardware store bolts; they’re precision-engineered systems:
High-strength structural fasteners
Specialty blind fasteners
Bolts, screws, and rivets
Installation tooling and equipment
A single Boeing 787 contains approximately 2.3 million fasteners. The 2025 SPS Technologies fire in Jenkintown, Pennsylvania, destroyed significant fastener capacity, underscoring PCC’s supply chain criticality.
Titanium Products: Lightweight Strength
Through its titanium operations, PCC manufactures:
Aerospace-grade titanium forgings
Seamless titanium tubing
Titanium castings
Custom titanium alloys
The company announced a new titanium facility in Ravenswood, West Virginia, designed to use 100% renewable energy for titanium production serving aerospace, defense, and medical markets.
Specialty Alloys: Controlling the Supply Chain
PCC’s metals segment provides vertical integration advantages:
Special Metals Corporation
Nickel-based superalloys (Inconel, Waspaloy, Hastelloy)
High-temperature alloy development
Billet, bar, and wire products
Cannon-Muskegon
Vacuum induction melting
Electroslag remelting
Proprietary alloy compositions
This internal capability insulates PCC from supply disruptions affecting competitors.