Berkshire's Precision Castparts, Buffett's $37B Mistake, Now an AI Power Play

IndustryM&A · Partnership
โดย TheStreet·US·Read original
Summary · why it matters

Precision Castparts, the aerospace parts maker Berkshire Hathaway bought in 2016 for roughly $37.2 billion and later wrote down by about $11 billion, has quietly become a supplier to the AI power build-out, according to an analysis published by TheStreet. The business generated $2.4 billion of net cash from operating activities in 2025, against $1.7 billion in 2015, the last full year before Berkshire owned it, per Berkshire's annual report. Precision Castparts makes airfoil castings for both jet engines and industrial gas turbines, and castings remain one of the most stubborn chokepoints in engine production. Gas turbine backlog and slot reservations grew from 100 to 116 gigawatts in a single quarter, with at least 125 gigawatts expected under contract by year-end, according to GE Vernova, and data center customers account for about 20% of that contracted volume, according to POWER magazine. GE Aerospace just paid $11.75 billion for Consolidated Precision Products, a smaller castings maker, and using that multiple Precision Castparts could be worth around $100 billion, or nearly three times what Berkshire paid, according to Barron's.

Impact on stocks 4

Energy Transition & Power Demand▲ · 2 stocks
Berkshire Hathaway Inc
BRK-B
▲ PositiveCapitalrelevance

Precision Castparts, owned by Berkshire, has become an AI power build-out supplier generating $2.4B net cash in 2025 and could be worth ~$100B, nearly 3x what Berkshire paid.

GE Vernova LLC
GEV
▲ PositiveDemandrelevance

GE Vernova's gas turbine backlog and slot reservations grew from 100 to 116 GW in a quarter, with 125 GW expected under contract by year-end and data centers ~20% of volume.

Aerospace & Aviation▲ · 1 stocks
GE Aerospace
GE
▲ PositiveCapitalrelevance

GE Aerospace paid $11.75B for Consolidated Precision Products, a castings maker, validating the value of its castings supply chain.

Artificial Intelligence▲ · 1 stocks

Theme Impact 5

Off-coverage companies 2

Precision Castparts CorporationPrivate▲ Positive
Demandrelevance

Precision Castparts supplies airfoil castings for jet engines and industrial gas turbines, a chokepoint in engine production, benefiting from AI power build-out demand.

Consolidated Precision ProductsPrivate▲ Positive
Capitalrelevance

Consolidated Precision Products was acquired by GE Aerospace for $11.75B, a castings maker whose multiple implies Precision Castparts could be worth ~$100B.

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