Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector.Sign up today for your two-week free trial and get a new lease on oil & gas! ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: TriMas (TRS) - TriMas currently holds a Momentum Style Score of B, indicating a favorable position in momentum investing [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, TRS shares increased by 0.89%, matching the performance of the Zacks Metal Products - Procurement and Fabrication industry [5] - In a longer timeframe, TRS shares have risen by 49.08% over the past quarter and 51.59% over the last year, significantly outperforming the S&P 500, which increased by 9.68% and 16.9% respectively [6] Trading Volume - The average 20-day trading volume for TRS is 550,682 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, two earnings estimates for TRS have been revised upwards, raising the consensus estimate from $1.81 to $2.03 [9] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [9] Conclusion - Considering the positive performance metrics and earnings outlook, TRS is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Viewpoint - TriMas Corporation has shown strong financial performance in Q2 2025, with significant growth in earnings and revenues, leading to an upward revision of its guidance for the year [3][4][11]. Financial Performance - Adjusted earnings per share (EPS) for Q2 2025 were reported at 61 cents, exceeding the Zacks Consensus Estimate of 50 cents, marking a 42% increase year-over-year [3]. - Revenues increased by 14% year-over-year to $274.8 million, surpassing the Zacks Consensus Estimate of $252 million [4]. - Gross profit rose 29% year-over-year to $69.7 million, with a gross margin improvement to 25.4% from 22.5% in the prior year [5]. Segment Performance - The Packaging segment saw net sales rise 8.4% year-over-year to $143 million, with adjusted operating profit increasing 10.7% to $20.4 million [7]. - The Aerospace segment experienced a 32.5% increase in net sales to $103 million, with adjusted operating profit rising to $20.7 million from $10.5 million in the previous year [7]. - The Specialty Products segment's revenues decreased by 6.8% year-over-year to $28.7 million, but adjusted operating profit improved to $1.3 million from $0.6 million [8]. Cash Flow and Balance Sheet - TriMas generated $39.4 million in cash from operations in the first half of 2025, compared to $14.7 million in the same period of 2024 [9]. - As of June 30, 2025, the company had $30.3 million in cash, up from $23 million at the end of 2024, and a total debt of $424.5 million [10]. Guidance and Estimates - The company raised its 2025 adjusted EPS guidance to a range of $1.95-$2.10, up from the previous range of $1.70-$1.85, and expects consolidated sales growth of 8%-10% compared to the earlier estimate of 4%-6% [11]. - Following the earnings release, the consensus estimate has shifted upward by 7.05% [12]. Investment Outlook - TriMas has a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [14].

Industry Overview - The Zacks Metal Products - Procurement and Fabrication industry is experiencing strong demand across various end markets, with improvements in order levels and strategic pricing expected to help maintain margins despite tariff impacts [1][4] - The industry primarily includes metal processing and fabrication service providers that transform metal into parts and components for sectors such as construction, aerospace, automotive, and more [3] Market Trends - Recent data shows signs of recovery in the manufacturing sector, with the Institute for Supply Management's manufacturing index slightly increasing to 49% in June from 48.5% in May, and the Production Index rising to 50.3% [4] - Industrial production increased by 0.3% in June, with an annual growth rate of 1.1% for the second quarter [4] Strategic Initiatives - Companies are implementing strategic pricing adjustments and cost-reduction initiatives to tackle rising labor, freight, and fuel costs, while also diversifying supplier bases to mitigate tariff impacts [5] - A strong focus on automation and innovation is expected to drive future growth, particularly in manufacturing, aerospace, and automotive sectors [6] Performance Metrics - The Zacks Metal Products - Procurement and Fabrication industry has outperformed both its sector and the Zacks S&P 500 composite over the past year, growing by 27.2% compared to the sector's 13.5% and the S&P 500's 16.8% [10] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 17.38X, which is lower than the S&P 500's 17.93X and the Industrial Products sector's 19.57X [13] Company Highlights - Kaiser Aluminum reported better-than-expected second-quarter results, with expectations for a 10-15% year-over-year increase in adjusted EBITDA and a 5-10% rise in conversion revenues for 2025 [19][20] - ESAB Corporation is making growth investments and pursuing acquisitions to enhance its market presence, with a recent 25% increase in its quarterly dividend [24] - TriMas Corporation's packaging segment is benefiting from solid demand, with an anticipated consolidated sales growth of 8-10% for full-year 2025 [26]

Core Viewpoint - TriMas reported strong Q2 2025 results, exceeding analyst expectations due to robust growth in the Aerospace segment, efficient operations, and successful integration of recent acquisitions [1][5] Financial Performance - Adjusted earnings per share (EPS) reached $0.61, surpassing the expected $0.48, and up 41.9% from $0.43 in Q2 2024 [2] - Revenue was $274.8 million, exceeding the GAAP consensus of $250.1 million, and reflecting a 14.2% increase from $240.5 million in Q2 2024 [2] - Operating profit increased to $31.8 million, a 52.9% rise from $20.8 million in the prior year [2] - Free cash flow was reported at $16.9 million, up 48.2% from $11.4 million in Q2 2024 [2] Business Segments - The Packaging segment saw net sales increase by 8.4% to $143.0 million, driven by organic growth in beauty & personal care and industrial markets [6] - The Aerospace segment achieved a significant 32.5% increase in net sales to $103.0 million, with organic growth of 23.8% compared to Q2 2024, bolstered by the acquisition of TriMas Aerospace Germany [7] - Specialty Products recorded GAAP net sales of $28.7 million, down 6.8%, primarily due to the divestiture of Arrow Engine, but showed signs of recovery in order intake [7] Strategic Focus - Innovation and proprietary product development are central to TriMas's strategy, alongside strategic acquisitions and operational excellence [4] - The company is committed to maintaining financial flexibility, investing for long-term growth, and advancing sustainability and ESG objectives [4][8] Future Outlook - Management raised its full-year 2025 adjusted diluted EPS guidance to a range of $1.95 to $2.10, up from $1.70 to $1.85 [10] - Company-wide revenue growth is now targeted at 8% to 10% for FY2025, increased from a previous estimate of 4% to 6% [10]

[Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines the inherent uncertainties and risks associated with the company's forward-looking statements - The report contains forward-looking statements regarding financial condition, results of operations, and business, identifiable by words like "may," "could," "should," "estimate," "project," "forecast," "intend," "expect," "anticipate," "believe," "target," or "plan"[10](index=10&type=chunk) - These statements are subject to numerous assumptions, risks, and uncertainties, including general economic and currency conditions, competitive factors, market demand, government actions (tariffs, climate change), acquisition integration, supply chain pressures (inflation, raw material availability), cybersecurity risks, international operations risks (e.g., US-China tensions), tax policy changes, intellectual property, ESG goals, litigation, interest rate volatility, debt liabilities, labor disputes, catastrophic events, and future dividends/share repurchases[11](index=11&type=chunk) - Readers are cautioned not to place undue reliance on these statements, and the company does not undertake to update them, except as required by law[12](index=12&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited consolidated financial statements and management's financial performance analysis [Item 1. Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents TriMas Corporation's unaudited consolidated financial statements and notes for Q2 2025 and FY 2024 [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) This statement summarizes the company's financial position, including assets, liabilities, and equity, at period-end | Metric | June 30, 2025 (unaudited, in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :------------------------ | :------------------ | | **Assets** | | | | Cash and cash equivalents | $30,280 | $23,070 | | Total current assets | $489,130 | $426,640 | | Total assets | $1,445,400 | $1,324,180 | | **Liabilities & Shareholders' Equity** | | | | Total current liabilities | $188,760 | $159,430 | | Long-term debt, net | $424,540 | $398,120 | | Total liabilities | $730,130 | $656,880 | | Total shareholders' equity | $715,270 | $667,300 | | Total liabilities and shareholders' equity | $1,445,400 | $1,324,180 | - Total assets increased by **$121.22 million (9.15%)** from December 31, 2024, to June 30, 2025, driven by increases in current assets, property and equipment, and goodwill[17](index=17&type=chunk) - Total liabilities increased by **$73.25 million (11.15%)** over the same period, primarily due to higher long-term debt and current liabilities[17](index=17&type=chunk) - Shareholders' equity saw an increase of **$47.97 million (7.19%)**, reaching **$715.27 million** by June 30, 2025[17](index=17&type=chunk) [Consolidated Statement of Income](index=6&type=section&id=Consolidated%20Statement%20of%20Income) This statement details the company's revenues, expenses, and net income for the three and six months ended June 30 | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $274,760 | $240,500 | $516,430 | $467,600 | | Gross profit | $69,720 | $54,010 | $126,750 | $106,720 | | Operating profit | $27,130 | $17,850 | $48,910 | $30,290 | | Income before income tax expense | $22,350 | $12,670 | $39,510 | $19,860 | | Net income | $16,720 | $10,940 | $29,140 | $16,080 | | Basic earnings per share | $0.41 | $0.27 | $0.72 | $0.39 | | Diluted earnings per share | $0.41 | $0.27 | $0.71 | $0.39 | - Net sales increased by **14.2%** for the three months ended June 30, 2025, and by **10.4%** for the six months ended June 30, 2025, compared to the prior year periods[19](index=19&type=chunk) - Net income significantly increased by **52.8%** to **$16.72 million** for the three months and by **81.2%** to **$29.14 million** for the six months ended June 30, 2025, year-over-year[19](index=19&type=chunk) [Consolidated Statement of Comprehensive Income](index=7&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents net income and other comprehensive income components for the periods ended June 30 | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $16,720 | $10,940 | $29,140 | $16,080 | | Other comprehensive income (loss): | | | | | | Defined benefit plans | $10 | $30 | $20 | $50 | | Foreign currency translation | $23,080 | $(5,440) | $33,880 | $(8,950) | | Derivative instruments | $(9,610) | $520 | $(12,730) | $1,110 | | Total other comprehensive income (loss) | $13,480 | $(4,890) | $21,170 | $(7,790) | | Total comprehensive income | $30,200 | $6,050 | $50,310 | $8,290 | - Total comprehensive income for the three months ended June 30, 2025, was **$30.2 million**, a significant increase from **$6.05 million** in the prior year, primarily driven by a positive foreign currency translation impact[21](index=21&type=chunk) - For the six months ended June 30, 2025, total comprehensive income reached **$50.31 million**, up from **$8.29 million** in the prior year, largely due to substantial foreign currency translation gains and higher net income[21](index=21&type=chunk) [Consolidated Statement of Cash Flows](index=8&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This statement outlines cash flows from operating, investing, and financing activities for the periods ended June 30 | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $39,440 | $14,670 | | Net cash used for investing activities | $(45,960) | $(23,880) | | Net cash provided by financing activities | $13,730 | $9,330 | | Increase for the period | $7,210 | $120 | | Cash and cash equivalents at end of period | $30,280 | $35,010 | - Net cash provided by operating activities increased significantly to **$39.44 million** for the six months ended June 30, 2025, from **$14.67 million** in the prior year, primarily due to higher net income and favorable changes in working capital[23](index=23&type=chunk) - Investing activities resulted in a higher net cash outflow of **$45.96 million**, mainly due to the acquisition of GMT Aerospace for **$37.16 million** and increased capital expenditures, partially offset by proceeds from the sale of the Arrow Engine business[23](index=23&type=chunk) - Financing activities provided **$13.73 million** in cash, up from **$9.33 million**, driven by net proceeds from revolving credit facilities, despite payments for common stock repurchases and dividends[23](index=23&type=chunk) [Consolidated Statement of Shareholders' Equity](index=9&type=section&id=Consolidated%20Statement%20of%20Shareholders'%20Equity) This statement details changes in shareholders' equity, including net income and share transactions | Metric | December 31, 2024 (in thousands) | June 30, 2025 (in thousands) | | :-------------------------------- | :------------------ | :------------ | | Total Shareholders' Equity | $667,300 | $715,270 | | Net income (six months) | $21,670 (Retained Earnings) | $29,140 (Retained Earnings) | | Other comprehensive income (loss) | $(18,550) (AOCI) | $2,620 (AOCI) | | Purchase of common stock (six months) | N/A | $(2,260) | | Dividends declared (six months) | N/A | $(3,280) | - Total shareholders' equity increased from **$667.3 million** at December 31, 2024, to **$715.27 million** at June 30, 2025, primarily due to net income and a positive shift in accumulated other comprehensive income (loss)[25](index=25&type=chunk) - The company declared **$3.28 million** in dividends and purchased **$2.26 million** of common stock during the six months ended June 30, 2025[25](index=25&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements [1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) This note describes TriMas Corporation's business and the accounting principles used in preparing the unaudited financial statements - TriMas Corporation designs, engineers, and manufactures innovative products for consumer products, aerospace & defense, and industrial markets[27](index=27&type=chunk) - The financial statements are unaudited and include all necessary adjustments for fair presentation, with management making estimates and assumptions that may differ from actual results due to economic uncertainties like inflation and supply chain disruptions[28](index=28&type=chunk) [2. New Accounting Pronouncements](index=10&type=section&id=2.%20New%20Accounting%20Pronouncements) This note outlines recently issued accounting standards and their potential impact on the company's financial reporting - ASU 2024-03, effective for fiscal years beginning after December 15, 2026, requires disaggregation disclosures for income statement expenses; the Company is assessing its impact[30](index=30&type=chunk) - ASU 2023-09, effective for fiscal years beginning after December 15, 2024, mandates enhanced jurisdictional income tax disclosures and specific categories for effective tax rate reconciliation; the Company will implement these in its 2025 Annual Report on Form 10-K[31](index=31&type=chunk) [3. Revenue](index=11&type=section&id=3.%20Revenue) This note disaggregates the company's net sales by customer market and details deferred revenue and contract assets | Customer Markets | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Consumer Products | $117,650 | $106,980 | $220,500 | $210,560 | | Aerospace & Defense | $103,010 | $77,720 | $192,220 | $145,060 | | Industrial | $54,100 | $55,800 | $103,710 | $111,980 | | Total net sales | $274,760 | $240,500 | $516,430 | $467,600 | - Aerospace & Defense market sales showed significant growth, increasing by **32.5%** for the three months and **32.5%** for the six months ended June 30, 2025, year-over-year[33](index=33&type=chunk) - The Company's deferred revenue and related contract assets totaled **$13.9 million** and **$8.8 million**, respectively, as of June 30, 2025, compared to immaterial amounts at December 31, 2024[33](index=33&type=chunk) [4. Realignment Actions](index=11&type=section&id=4.%20Realignment%20Actions) This note details costs incurred for corporate reorganization, including severance and consulting fees, and their impact on expenses - TriMas recorded **$0.7 million** and **$4.5 million** in realignment costs for the three and six months ended June 30, 2025, respectively, primarily for corporate office reorganization, including severance and consulting fees[34](index=34&type=chunk) - These costs included **$1.5 million** of non-cash compensation expense during the six months ended June 30, 2025, and were reported within selling, general and administrative expenses[34](index=34&type=chunk) [5. Acquisitions and Sale of Business](index=11&type=section&id=5.%20Acquisitions%20and%20Sale%20of%20Business) This note describes the acquisition of GMT Aerospace and the divestiture of the Arrow Engine business, including their financial impacts - On February 17, 2025, TriMas acquired GMT Gummi-Metall-Technik GmbH's aerospace business for **$37.2 million**, adding **$15.4 million** in goodwill and **$4.6 million** in intangible assets[35](index=35&type=chunk) - On January 31, 2025, the Company sold its Arrow Engine business (Specialty Products segment) for **$20.5 million** in net cash proceeds, resulting in a pre-tax gain of **$5.3 million**[36](index=36&type=chunk) [6. Goodwill and Other Intangible Assets](index=12&type=section&id=6.%20Goodwill%20and%20Other%20Intangible%20Assets) This note provides a breakdown of goodwill and other intangible assets, including changes from acquisitions and amortization expense | Segment | Balance, December 31, 2024 (in thousands) | Goodwill from acquisitions (in thousands) | Foreign currency translation and other (in thousands) | Balance, June 30, 2025 (in thousands) | | :---------------- | :------------------------- | :----------------------- | :------------------------------------- | :--------------------- | | Packaging | $280,500 | — | $14,300 | $294,800 | | Aerospace | $69,300 | $15,370 | $2,460 | $87,130 | | Specialty Products | $6,560 | — | — | $6,560 | | Total | $356,360 | $15,370 | $16,760 | $388,490 | - Total goodwill increased by **$32.13 million** to **$388.49 million** as of June 30, 2025, primarily due to **$15.37 million** from acquisitions (GMT Aerospace) and **$16.76 million** from foreign currency translation and other adjustments[38](index=38&type=chunk) | Intangible Category | June 30, 2025 Gross Carrying Amount (in thousands) | June 30, 2025 Accumulated Amortization (in thousands) | December 31, 2024 Gross Carrying Amount (in thousands) | December 31, 2024 Accumulated Amortization (in thousands) | | :-------------------------------- | :------------------------------------ | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Total customer relationships | $277,330 | $(190,960) | $268,070 | $(182,050) | | Total technology and other | $99,530 | $(85,580) | $100,090 | $(85,670) | | Trademark/Trade names (indefinite) | $62,730 | — | $60,640 | — | | Total other intangible assets | $439,590 | $(276,540) | $428,800 | $(267,720) | | Amortization Expense | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Technology and other (cost of sales) | $790 | $870 | $1,590 | $1,660 | | Customer relationships (SG&A) | $3,560 | $3,350 | $6,950 | $6,770 | | Total amortization expense | $4,350 | $4,220 | $8,540 | $8,430 | [7. Inventories](index=13&type=section&id=7.%20Inventories) This note details the composition of inventories, including finished goods, work in process, and raw materials, as of period-end | Component | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :---------------- | :------------ | :---------------- | | Finished goods | $83,420 | $86,430 | | Work in process | $65,210 | $62,380 | | Raw materials | $68,270 | $60,380 | | Total inventories | $216,900 | $209,190 | - Total inventories increased by **$7.71 million** to **$216.9 million** as of June 30, 2025, compared to December 31, 2024, driven by increases in work in process and raw materials, partially offset by a decrease in finished goods[41](index=41&type=chunk) [8. Property and Equipment, Net](index=13&type=section&id=8.%20Property%20and%20Equipment,%20Net) This note presents the company's property and equipment, net of accumulated depreciation, and related depreciation expense | Component | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------ | :------------ | :---------------- | | Land and land improvements | $30,470 | $30,810 | | Buildings | $92,530 | $93,780 | | Machinery and equipment | $559,950 | $524,390 | | Less: Accumulated depreciation | $345,690 | $330,330 | | Property and equipment, net | $337,260 | $318,650 | - Net property and equipment increased by **$18.61 million** to **$337.26 million** as of June 30, 2025, primarily due to an increase in machinery and equipment, partially offset by higher accumulated depreciation[42](index=42&type=chunk) | Depreciation Expense | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total depreciation expense | $10,010 | $10,020 | $19,650 | $20,000 | [9. Long-term Debt](index=13&type=section&id=9.%20Long-term%20Debt) This note details the company's long-term debt, including senior notes and credit facilities, and compliance with financial covenants | Debt Component | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :------------ | :---------------- | | 4.125% Senior Notes due April 2029 | $400,000 | $400,000 | | Credit Agreement | $28,590 | $1,500 | | Debt issuance costs | $(4,050) | $(3,380) | | Long-term debt, net | $424,540 | $398,120 | - Net long-term debt increased by **$26.42 million** to **$424.54 million** as of June 30, 2025, primarily due to increased borrowings under the Credit Agreement[43](index=43&type=chunk) - In March 2025, the Company amended its Credit Agreement, extending the maturity date of its **$250.0 million** senior secured revolving credit facility to **March 31, 2030**, from March 29, 2026[47](index=47&type=chunk)[48](index=48&type=chunk) - As of June 30, 2025, the Company had **$28.6 million** outstanding under its revolving credit facility and **$215.1 million** potentially available, after accounting for letters of credit[50](index=50&type=chunk) - The Company was in compliance with all financial covenants under the Credit Agreement as of June 30, 2025, with a total net leverage ratio of **2.55x** (covenant 4.00x) and an interest expense coverage ratio of **9.70x** (covenant 3.00x)[52](index=52&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk) [10. Derivative Instruments](index=15&type=section&id=10.%20Derivative%20Instruments) This note describes the company's use of derivative instruments to hedge foreign currency and interest rate risks, and their fair values - The Company uses cross-currency swap contracts to hedge its net investment in Euro-denominated assets against U.S. dollar-Euro exchange rate volatility, synthetically converting U.S. dollar debt to Euro-denominated debt[55](index=55&type=chunk) - As of June 30, 2025, the fair value of cross-currency swaps designated as net investment hedges was a liability of **$19.71 million**, compared to **$2.92 million** at December 31, 2024[60](index=60&type=chunk) - The Company also uses foreign currency exchange forward contracts with notional amounts of **$128.2 million** to economically hedge foreign currency rate changes impacting receivables, payables, and intercompany transactions, primarily between the U.S. dollar and Euro, Canadian dollar, Chinese yuan, and Mexican peso[61](index=61&type=chunk) | Derivative Type | June 30, 2025 Fair Value (in thousands) | December 31, 2024 Fair Value (in thousands) | | :---------------------- | :----------------------- | :----------------------- | | Cross-currency swaps | $(19,710) | $(2,920) | | Foreign exchange contracts | $(2,790) | $360 | [11. Leases](index=17&type=section&id=11.%20Leases) This note provides information on the company's operating and finance leases, including assets, liabilities, and associated costs | Lease Type | June 30, 2025 Assets (in thousands) | December 31, 2024 Assets (in thousands) | June 30, 2025 Liabilities (in thousands) | December 31, 2024 Liabilities (in thousands) | | :---------------- | :------------------- | :----------------------- | :------------------------ | :------------------------ | | Operating leases | $45,760 | $40,480 | $48,660 (PV) | $42,590 (Total) | | Finance leases | $2,280 | $2,110 | $1,610 (PV) | $1,620 (Total) | | Total lease assets | $48,040 | $42,590 | $50,270 (Total) | $44,720 (Total) | | Lease Cost Component | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $2,920 | $2,560 | $5,500 | $4,840 | | Finance lease depreciation | $70 | $50 | $130 | $110 | | Finance lease interest | $10 | $20 | $20 | $30 | | Short-term, variable, other lease costs | $1,050 | $1,060 | $2,140 | $2,150 | | Total lease cost | $4,050 | $3,690 | $7,790 | $7,130 | - The weighted-average remaining lease term for operating leases is **5.9 years** with a discount rate of **4.6%**, while for finance leases it is **2.1 years** with a discount rate of **2.6%** as of June 30, 2025[70](index=70&type=chunk) [12. Other Long-term liabilities](index=19&type=section&id=12.%20Other%20Long-term%20liabilities) This note details the components of other long-term liabilities, including asbestos-related obligations and other non-current liabilities | Component | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------- | :------------ | :---------------- | | Non-current asbestos-related liabilities | $26,040 | $27,200 | | Other long-term liabilities | $29,390 | $15,340 | | Total other long-term liabilities | $55,430 | $42,540 | - Total other long-term liabilities increased by **$12.89 million** to **$55.43 million** as of June 30, 2025, primarily due to a significant increase in 'Other long-term liabilities,' partially offset by a decrease in non-current asbestos-related liabilities[71](index=71&type=chunk) [13. Commitments and Contingencies](index=20&type=section&id=13.%20Commitments%20and%20Contingencies) This note outlines the company's legal proceedings, including asbestos claims and environmental remediation obligations, and related financial impacts **Asbestos Claims Activity:** | Metric | Six Months Ended June 30, 2025 | Fiscal Year Ended December 31, 2024 | | :-------------------------------- | :----------------------------- | :------------------------------------ | | Claims pending at beginning of period | 4,968 | 4,863 | | Claims filed during period | 155 | 269 | | Claims dismissed during period | 115 | 131 | | Claims settled during period | 24 | 33 | | Claims pending at end of period | 4,984 | 4,968 | | Average settlement amount per claim | $9,979 | $20,083 | | Total defense costs during period (in thousands) | $795 | $1,750 | - As of June 30, 2025, TriMas had **4,984** pending asbestos-related cases, with a total liability of **$28.5 million**, down from **$29.7 million** at December 31, 2024[74](index=74&type=chunk)[78](index=78&type=chunk) - The Company reached the threshold for excess carrier insurance coverage in Q2 2025 and is transitioning administration of defense costs and indemnity payments to insurers, though no insurance recovery asset has been recognized yet[79](index=79&type=chunk) - The total environmental remediation obligation remained at **$3.3 million** as of June 30, 2025 and December 31, 2024[82](index=82&type=chunk) [14. Segment Information](index=21&type=section&id=14.%20Segment%20Information) This note provides financial data by operating segment, including net sales and adjusted operating profit, for performance evaluation - TriMas operates in three segments: Packaging, Aerospace, and Specialty Products, with performance assessed using segment adjusted operating profit (excluding Special Items like realignment costs and purchase accounting charges)[83](index=83&type=chunk) **Net Sales by Segment (Three Months Ended June 30):** | Segment | 2025 Net Sales (in thousands) | 2024 Net Sales (in thousands) | YoY Change (%) | | :---------------- | :------------- | :------------- | :------------- | | Packaging | $143,010 | $131,930 | 8.4% | | Aerospace | $103,010 | $77,720 | 32.5% | | Specialty Products | $28,740 | $30,850 | -6.8% | | Total | $274,760 | $240,500 | 14.2% | **Segment Adjusted Operating Profit (Three Months Ended June 30):** | Segment | 2025 Adjusted Operating Profit (in thousands) | 2024 Adjusted Operating Profit (in thousands) | YoY Change (%) | | :---------------- | :----------------------------- | :----------------------------- | :------------- | | Packaging | $20,430 | $18,460 | 10.7% | | Aerospace | $20,650 | $10,460 | 97.4% | | Specialty Products | $1,260 | $580 | 117.2% | | Total | $42,340 | $29,500 | 43.5% | **Net Sales by Segment (Six Months Ended June 30):** | Segment | 2025 Net Sales (in thousands) | 2024 Net Sales (in thousands) | YoY Change (%) | | :---------------- | :------------- | :------------- | :------------- | | Packaging | $270,580 | $258,950 | 4.5% | | Aerospace | $192,220 | $145,060 | 32.5% | | Specialty Products | $53,630 | $63,590 | -15.7% | | Total | $516,430 | $467,600 | 10.4% | **Segment Adjusted Operating Profit (Six Months Ended June 30):** | Segment | 2025 Adjusted Operating Profit (in thousands) | 2024 Adjusted Operating Profit (in thousands) | YoY Change (%) | | :---------------- | :----------------------------- | :----------------------------- | :------------- | | Packaging | $38,250 | $36,480 | 4.9% | | Aerospace | $35,880 | $17,590 | 103.9% | | Specialty Products | $1,350 | $3,190 | -57.7% | | Total | $75,480 | $57,260 | 31.8% | [15. Equity Awards](index=25&type=section&id=15.%20Equity%20Awards) This note details the company's stock option and restricted stock unit awards, including grants, unrecognized compensation costs, and related expenses - The Company granted **900,000** stock option awards during the six months ended June 30, 2025, with a weighted-average option price of **$41.11**[94](index=94&type=chunk) - Unrecognized compensation cost for stock options was **$6.7 million** as of June 30, 2025, expected to be recognized over **1.6 years**[94](index=94&type=chunk) - The Company awarded **590,246** Restricted Stock Units (RSUs) during the six months ended June 30, 2025, including service-based and performance-based awards[96](index=96&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk) - Unrecognized compensation cost for unvested RSUs was **$13.1 million** as of June 30, 2025, expected to be recognized over **2.4 years**[99](index=99&type=chunk) | Stock-based Compensation Expense | Three months ended June 30, 2025 (in millions) | Three months ended June 30, 2024 (in millions) | Six months ended June 30, 2025 (in millions) | Six months ended June 30, 2024 (in millions) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock Options | $0.1 | $0 | $0.1 | $0 | | Restricted Stock Units | $1.9 | $1.9 | $4.9 | $6.4 | [16. Earnings per Share](index=26&type=section&id=16.%20Earnings%20per%20Share) This note presents the calculation of basic and diluted earnings per share, including weighted average shares and share repurchase activity | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Weighted average common shares—basic | 40,647,361 | 40,699,287 | 40,626,325 | 40,858,668 | | Dilutive effect of restricted stock units | 282,500 | 299,751 | 313,473 | 301,858 | | Weighted average common shares—diluted | 40,929,861 | 40,999,038 | 40,939,798 | 41,160,526 | - The Company repurchased **85,729 shares** for **$1.8 million** in Q2 2025 and **106,220 shares** for **$2.3 million** in H1 2025, with **$65.4 million** remaining under the **$250 million** authorization[102](index=102&type=chunk) - Quarterly cash dividends of **$0.04 per share** were declared and paid, totaling **$1.7 million** for Q2 2025 and **$3.3 million** for H1 2025, consistent with the prior year[103](index=103&type=chunk) [17. Defined Benefit Plans](index=27&type=section&id=17.%20Defined%20Benefit%20Plans) This note outlines the net periodic benefit cost for the company's defined benefit pension plans and expected contributions | Component of Net Periodic Benefit Cost (Income) | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Service costs | $140 | $130 | $270 | $260 | | Interest costs | $320 | $330 | $640 | $660 | | Expected return on plan assets | $(260) | $(510) | $(510) | $(1,020) | | Amortization of net loss | $20 | $40 | $50 | $90 | | Net periodic benefit cost (income) | $220 | $(10) | $450 | $(10) | - Net periodic benefit cost for defined benefit pension plans was **$0.22 million** for the three months and **$0.45 million** for the six months ended June 30, 2025, compared to a nominal income in the prior year periods[105](index=105&type=chunk) - The Company contributed **$0.5 million** to its defined benefit pension plans during the six months ended June 30, 2025, and expects to contribute **$1.2 million** for the full year 2025[106](index=106&type=chunk) [18. Other Comprehensive Income (Loss)](index=27&type=section&id=18.%20Other%20Comprehensive%20Income%20(Loss)) This note details changes in accumulated other comprehensive income, including components like foreign currency translation and derivative instruments **Changes in AOCI (Six Months Ended June 30, 2025):** | Component | Balance, December 31, 2024 (in thousands) | Net unrealized gains (losses) (in thousands) | Net realized losses reclassified to net income (in thousands) | Balance, June 30, 2025 (in thousands) | | :-------------------- | :------------------------- | :---------------------------- | :--------------------------------------------- | :--------------------- | | Defined Benefit Plans | $(8,010) | — | $(20) | $(7,990) | | Derivative Instruments | $16,300 | $(12,730) | — | $3,570 | | Foreign Currency Translation | $(26,840) | $33,880 | — | $7,040 | | Total | $(18,550) | $21,150 | $(20) | $2,620 | - Accumulated Other Comprehensive Income (AOCI) shifted from a loss of **$18.55 million** at December 31, 2024, to a gain of **$2.62 million** at June 30, 2025, primarily due to significant net unrealized gains from foreign currency translation[107](index=107&type=chunk) - Net current-period other comprehensive income was **$21.17 million** for the six months ended June 30, 2025, a substantial improvement from a loss of **$7.79 million** in the prior year[107](index=107&type=chunk)[109](index=109&type=chunk) [19. Income Taxes](index=28&type=section&id=19.%20Income%20Taxes) This note provides information on the company's effective income tax rate, income tax expense, and the impact of recent tax legislation | Period | Effective Income Tax Rate | Income Tax Expense (in millions) | | :-------------------------------- | :------------------------ | :----------------- | | Three months ended June 30, 2025 | 25.2% | $5.6 | | Three months ended June 30, 2024 | 13.7% | $1.7 | | Six months ended June 30, 2025 | 26.2% | $10.4 | | Six months ended June 30, 2024 | 19.0% | $3.8 | - The effective income tax rate increased for both the three and six months ended June 30, 2025, compared to the prior year, primarily due to the recognition of a **$1.4 million** tax benefit from foreign tax loss carryforwards in Q2 2024, increased losses in certain foreign subsidiaries without tax benefit, and a **$1.4 million** tax expense from the Arrow Engine business sale in H1 2025[110](index=110&type=chunk)[111](index=111&type=chunk) - The recently signed One Big Beautiful Bill Act (OBBBA), effective Q3 2025, is not anticipated to materially impact the effective tax rate but is expected to have a favorable impact on U.S. federal cash taxes for the remainder of 2025[112](index=112&type=chunk) [20. Subsequent Events](index=28&type=section&id=20.%20Subsequent%20Events) This note discloses significant events occurring after the reporting period, such as dividend declarations - On July 22, 2025, the Board of Directors declared a cash dividend of **$0.04 per share** of common stock, payable on August 12, 2025, to shareholders of record as of August 5, 2025[113](index=113&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on TriMas Corporation's financial condition, operational results, liquidity, and outlook [Introduction](index=29&type=section&id=Introduction) This introduction outlines TriMas' business model, product offerings, and strategic focus on innovation and growth - TriMas designs, develops, and manufactures diverse products for consumer products, aerospace & defense, and industrial markets through its Packaging, Aerospace, and Specialty Products segments[116](index=116&type=chunk) - The company emphasizes innovative product technologies, customer-approved processes, established distribution, modest capital investment, strong cash flow conversion, and long-term growth opportunities[116](index=116&type=chunk) [Key Factors Affecting Our Reported Results](index=29&type=section&id=Key%20Factors%20Affecting%20Our%20Reported%20Results) This section discusses macroeconomic factors, strategic actions, and financial drivers influencing the company's reported performance - Macroeconomic factors like cost inflation (raw materials, wages, freight), material shortages, and skilled labor availability have significantly impacted operations[118](index=118&type=chunk) - Changes in U.S. international trade policy, including tariffs on China-based imports, have increased costs and created uncertainty[118](index=118&type=chunk) - Overall net sales increased by **14.2%** in Q2 2025 (YoY), driven by organic growth in Aerospace (**23.8%**) and Packaging (**7.9%**), and **8.7%** acquisition-related growth in Aerospace, partially offset by a **6.8%** decline in Specialty Products due to the Arrow Engine divestiture[119](index=119&type=chunk) - Significant drivers affecting Q2 2025 results included higher consulting costs, corporate reorganization expenses, and an increased effective tax rate[120](index=120&type=chunk) - The divestiture of Arrow Engine (Specialty Products) for **$20.5 million** generated a **$5.3 million** pre-tax gain, while the acquisition of GMT Aerospace (Aerospace) for **$37.2 million** contributed **$6.7 million** in Q2 2025 sales[121](index=121&type=chunk) - The effective income tax rate rose to **25.2%** in Q2 2025 from **13.7%** in Q2 2024, mainly due to a prior-year tax benefit from foreign loss carryforwards and increased losses in certain foreign subsidiaries[123](index=123&type=chunk) - The company continues to evaluate alternatives for cash redeployment, including share repurchases (**$65.4 million** remaining authorization as of June 30, 2025) and dividends (**$0.04 per share** declared in Q2 2025)[132](index=132&type=chunk)[133](index=133&type=chunk) [Additional Key Risks that May Affect Our Reported Results](index=30&type=section&id=Additional%20Key%20Risks%20that%20May%20Affect%20Our%20Reported%20Results) This section highlights ongoing macroeconomic risks, trade policy uncertainties, and critical success factors for the company's performance - Ongoing macroeconomic inflation, trade policy uncertainties, and potential impacts on overall performance may lead to further realignment actions or asset impairment charges (goodwill, intangibles, fixed assets, inventory, receivables)[124](index=124&type=chunk) - Critical success factors include generating organic growth through product development and cross-selling, acquiring and integrating complementary businesses, managing cost structure efficiently (supply chain, working capital), and recovering inflationary cost increases[126](index=126&type=chunk) - The business experiences minimal seasonal fluctuation, except for Q4, which typically has the lowest net sales due to holiday shutdowns and deferred capital spending[127](index=127&type=chunk) - The company is sensitive to raw material price movements (polypropylene, polyethylene, steel, aluminum, superalloys) and supply availability, with efforts to mitigate increases through pricing adjustments, extra inventories, and alternative sourcing[128](index=128&type=chunk) [Segment Information and Supplemental Analysis](index=32&type=section&id=Segment%20Information%20and%20Supplemental%20Analysis) This section provides a detailed breakdown of net sales growth by segment, including organic, acquisition, and divestiture impacts **Net Sales Growth (Q2 2025 vs. Q2 2024):** | Segment | Organic | Acquisitions | Divestitures | Foreign Exchange | Total | | :---------------- | :------ | :----------- | :----------- | :--------------- | :---- | | Consolidated | 13.4% | 2.8% | (2.2)% | 0.2% | 14.2% | | Packaging | 7.9% | —% | —% | 0.5% | 8.4% | | Aerospace | 23.8% | 8.7% | —% | —% | 32.5% | | Specialty Products | 10.8% | —% | (17.6)% | —% | (6.8)% | **Net Sales Growth (YTD Q2 2025 vs. YTD Q2 2024):** | Segment | Organic | Acquisitions | Divestitures | Foreign Exchange | Total | | :---------------- | :------ | :----------- | :----------- | :--------------- | :---- | | Consolidated | 10.9% | 2.1% | (1.9)% | (0.7)% | 10.4% | | Packaging | 5.7% | —% | —% | (1.2)% | 4.5% | | Aerospace | 25.7% | 6.9% | —% | (0.1)% | 32.5% | | Specialty Products | (1.5)% | —% | (14.2)% | —% | (15.7)% | [Results of Operations (Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024)](index=34&type=section&id=Results%20of%20Operations%20(Three%20Months%20Ended%20June%2030,%202025%20Compared%20with%20Three%20Months%20Ended%20June%2030,%202024)) This section analyzes the company's financial performance for the three months ended June 30, 2025, highlighting key revenue, profit, and segment-specific changes - Net sales increased by **$34.3 million (14.2%)** to **$274.8 million**, driven by organic growth in Aerospace (**23.8%**) and Packaging (**7.9%**), and **$6.7 million** from the GMT Aerospace acquisition, partially offset by a **6.8%** decline in Specialty Products due to the Arrow Engine divestiture[137](index=137&type=chunk) - Gross profit margin improved to **25.4%** from **22.5%**, primarily due to higher sales, improved fixed cost absorption, a favorable product mix, and operational improvements in Aerospace and Packaging, despite increased input costs and a **$0.5 million** purchase accounting charge[138](index=138&type=chunk) - Operating profit increased by **$9.3 million** to **$27.1 million**, with operating profit margin rising to **9.9%** from **7.4%**, driven by sales growth and operational efficiencies, but partially offset by higher employee-related costs, consulting fees, and corporate reorganization expenses[139](index=139&type=chunk) - Interest expense decreased by **$0.7 million** to **$4.6 million** due to lower weighted average borrowings and a reduced effective interest rate[140](index=140&type=chunk) - Net income increased by **$5.8 million** to **$16.7 million**, reflecting higher operating profit and lower interest expense, partially offset by a **$3.9 million** increase in income tax expense[144](index=144&type=chunk) - Packaging segment sales increased **8.4%** to **$143.0 million**, driven by dispensing products, partially offset by reduced demand in food and beverage[145](index=145&type=chunk) Operating profit rose **11.1%** to **$20.0 million**[148](index=148&type=chunk) - Aerospace segment sales surged **32.5%** to **$103.0 million**, with organic growth from fasteners and engineered components, plus **$6.7 million** from GMT Aerospace acquisition[149](index=149&type=chunk) Operating profit more than doubled to **$20.1 million**[152](index=152&type=chunk) - Specialty Products sales decreased **6.8%** to **$28.7 million**, as a **13.1%** increase in steel cylinder sales was offset by the **$5.4 million** impact of the Arrow Engine divestiture[153](index=153&type=chunk) Operating profit increased to **$1.3 million** from **$0.6 million**[156](index=156&type=chunk) - Corporate expenses increased by **$3.1 million** to **$14.3 million**, mainly due to higher employee-related costs, **$2.2 million** in consulting and reorganization costs, and **$0.7 million** for IT upgrades, partially offset by lower professional fees and a non-recurring environmental settlement[156](index=156&type=chunk) [Results of Operations (Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024)](index=36&type=section&id=Results%20of%20Operations%20(Six%20Months%20Ended%20June%2030,%202025%20Compared%20with%20Six%20Months%20Ended%20June%2030,%202024)) This section analyzes the company's financial performance for the six months ended June 30, 2025, detailing revenue, profit, and segment-specific changes - Net sales increased by **$48.8 million (10.4%)** to **$516.4 million**, driven by organic growth in Aerospace (**25.7%**) and Packaging (**5.7%**), and **$10.0 million** from the GMT Aerospace acquisition, partially offset by a **15.7%** decline in Specialty Products due to lower demand and the Arrow Engine divestiture[157](index=157&type=chunk) - Gross profit margin improved to **24.5%** from **22.8%**, primarily due to higher sales, improved fixed cost absorption, a favorable product mix, and operational improvements in Aerospace and Packaging, despite increased input costs and a **$0.7 million** purchase accounting charge[158](index=158&type=chunk) - Operating profit increased by **$18.6 million** to **$48.9 million**, with operating profit margin rising to **9.5%** from **6.5%**, benefiting from sales growth, operational efficiencies, and a **$5.3 million** gain on the Arrow Engine sale, but partially offset by increased consulting costs, corporate reorganization expenses, and higher employee-related costs[159](index=159&type=chunk) - Interest expense decreased by **$1.1 million** to **$9.1 million** due to lower weighted average borrowings and a reduced effective interest rate[160](index=160&type=chunk) - Net income increased by **$13.1 million** to **$29.1 million**, reflecting higher operating profit and lower interest expense, partially offset by a **$6.6 million** increase in income tax expense[163](index=163&type=chunk) - Packaging segment sales increased **4.5%** to **$270.6 million**, driven by dispensing products, partially offset by reduced demand in food and beverage[164](index=164&type=chunk) Operating profit rose **6.0%** to **$37.2 million**[167](index=167&type=chunk) - Aerospace segment sales surged **32.5%** to **$192.2 million**, with organic growth from fasteners and engineered components, plus **$10.0 million** from GMT Aerospace acquisition[168](index=168&type=chunk) Operating profit more than doubled to **$35.2 million**[171](index=171&type=chunk) - Specialty Products sales decreased **15.7%** to **$53.6 million**, primarily due to lower steel cylinder demand and the **$10.4 million** impact of the Arrow Engine divestiture[172](index=172&type=chunk) Operating profit declined to **$0.1 million** from **$3.2 million**[175](index=175&type=chunk) - Corporate expenses decreased by **$2.0 million** to **$23.6 million**, primarily due to a **$5.3 million** pre-tax gain on the Arrow Engine sale, lower professional costs, and reduced non-cash stock compensation, partially offset by increased consulting and reorganization costs[176](index=176&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash flow generation from operating, investing, and financing activities, and its overall liquidity position - Cash flows from operating activities increased significantly to **$39.4 million** for the six months ended June 30, 2025, from **$14.7 million** in the prior year, driven by higher net income and favorable working capital changes[177](index=177&type=chunk)[179](index=179&type=chunk) - Net cash used for investing activities increased to **$46.0 million**, primarily due to the **$37.2 million** acquisition of GMT Aerospace and **$30.0 million** in capital expenditures, partially offset by **$21.2 million** from the Arrow Engine sale[177](index=177&type=chunk) - Net cash provided by financing activities was **$13.7 million**, up from **$9.3 million**, mainly from net borrowings on revolving credit facilities, despite share repurchases and dividend payments[178](index=178&type=chunk) [Our Debt and Other Commitments](index=41&type=section&id=Our%20Debt%20and%20Other%20Commitments) This section details the company's long-term debt, credit facilities, financial covenant compliance, and available liquidity - The Company's long-term debt includes **$400.0 million** in **4.125% Senior Notes** due April 2029 and borrowings under a Credit Agreement, which was amended in March 2025 to extend its maturity to **March 31, 2030**[180](index=180&type=chunk)[183](index=183&type=chunk) - As of June 30, 2025, the Company had **$28.6 million** outstanding on its revolving credit facility and **$215.1 million** available liquidity, after accounting for **$6.3 million** in letters of credit[188](index=188&type=chunk) - The Company was in compliance with its financial covenants, with a total net leverage ratio of **2.55x** (covenant 4.00x) and an interest expense coverage ratio of **9.70x** (covenant 3.00x) as of June 30, 2025[185](index=185&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk) - The weighted average borrowings for the first six months of 2025 were approximately **$436.3 million**, down from **$452.9 million** in the prior year[190](index=190&type=chunk) - A **1%** increase in the variable interest rate would increase annual interest expense by **$0.3 million** based on borrowings at June 30, 2025[193](index=193&type=chunk) [Market Risk](index=44&type=section&id=Market%20Risk) This section describes the company's exposure to foreign currency exchange rate and interest rate risks, and its hedging strategies - TriMas is exposed to market risk from foreign currency exchange rate fluctuations, managing it through derivative financial instruments like foreign exchange forward and swap contracts (**$128.2 million** notional amount as of June 30, 2025) and cross-currency swap agreements[197](index=197&type=chunk)[198](index=198&type=chunk) - The Company is also subject to interest rate risk on its long-term debt and has historically used interest rate swap agreements to manage this risk[199](index=199&type=chunk) [Outlook](index=44&type=section&id=Outlook) This section provides management's forward-looking perspective on business performance, growth drivers, and strategies to mitigate market uncertainties - The Company delivered strong financial results in H1 2025, driven by increased demand and growth initiatives in Aerospace and Packaging, along with manufacturing enhancements and commercial actions[201](index=201&type=chunk) - Management is optimistic about long-term growth in Packaging and Aerospace, and expects an accelerated recovery in the Specialty Products segment's cylinder business[201](index=201&type=chunk) - Despite global market uncertainties (inflation, supply chain, labor, tariffs), TriMas remains committed to mitigating impacts through commercial, procurement, production, and streamlining actions to maintain a strong balance sheet and generate cash[202](index=202&type=chunk) - The capital structure is strong, with sufficient liquidity to meet obligations, fund dividends, share repurchases, and bolt-on acquisitions[203](index=203&type=chunk) - The One Big Beautiful Bill Act (OBBBA), effective Q3 2025, is expected to have a favorable impact on U.S. federal cash taxes for the remainder of 2025, with no material impact on the effective tax rate[205](index=205&type=chunk) [Impact of New Accounting Standards](index=45&type=section&id=Impact%20of%20New%20Accounting%20Standards) This section refers to detailed disclosures on recently issued accounting standards and their potential financial reporting impact - Refer to Note 2, 'New Accounting Pronouncements,' for details on recently issued accounting standards and their potential impact[206](index=206&type=chunk) [Critical Accounting Policies](index=45&type=section&id=Critical%20Accounting%20Policies) This section confirms no material changes to the company's critical accounting policies during the current reporting period - No material changes occurred to the Company's critical accounting policies during the quarter ended June 30, 2025, as previously disclosed in the 2024 Annual Report on Form 10-K[208](index=208&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section reiterates the company's exposure to market risks and refers to detailed management strategies in other financial sections - The Company is exposed to market risk from fluctuations in foreign currency exchange rates and interest rates on its long-term debt[209](index=209&type=chunk) - Further details on primary market risks, objectives, and management strategies are provided in Item 2, 'Management's Discussion and Analysis of Financial Condition and Results of Operations,' and Notes 9 and 10 to the Consolidated Financial Statements[209](index=209&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes to internal controls - As of June 30, 2025, management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures are effective in providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[211](index=211&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the quarter ended June 30, 2025[212](index=212&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part provides additional information beyond the financial statements, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to detailed information on the company's legal proceedings, including asbestos claims, in the financial statement notes - Information regarding legal proceedings is detailed in Note 13, 'Commitments and Contingencies,' within Part I, Item 1, 'Notes to Unaudited Consolidated Financial Statements'[214](index=214&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to the risk factors previously disclosed in the company's annual and quarterly reports - There are no material changes to the risk factors as disclosed in the 2024 Annual Report on Form 10-K and the Quarterly Report on Form 10-Q for the period ended March 31, 2025[215](index=215&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases under its publicly announced share repurchase program during the quarter | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions) | | :-------------------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------------- | :------------------------------------------------------------------------------------------ | | April 1, 2025 to April 30, 2025 | 85,729 | $20.94 | 85,729 | $65.4 | | May 1, 2025 to May 31, 2025 | — | — | — | $65.4 | | June 1, 2025 to June 30, 2025 | — | — | — | $65.4 | | Total | 85,729 | $20.94 | 85,729 | $65.4 | - During the three months ended June 30, 2025, the Company repurchased **85,729 shares** of its common stock for **$1.8 million** under its **$250 million** authorization, with **$65.4 million** remaining[219](index=219&type=chunk) [Item 3. Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is marked as not applicable, indicating no defaults on senior securities during the reporting period - This item is not applicable[216](index=216&type=chunk) [Item 4. Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is marked as not applicable, indicating no mine safety disclosures are required for the company - This item is not applicable[217](index=217&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) This section discloses a modification to a Rule 10b5-1 trading plan by a former executive, allowing for common stock sales - On May 21, 2025, Thomas A. Amato, former President and CEO, modified his Rule 10b5-1 trading plan to allow the sale of up to **222,891 shares** of common stock, with first trades not occurring before August 19, 2025, and the plan terminating by December 31, 2025[218](index=218&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, equity agreements, and certifications - The exhibits include corporate governance documents (Certificate of Incorporation, By-laws), various equity award agreements (Restricted Stock Units, Non-Qualified Stock Option), offer and severance agreements for executives, indemnification agreements, Sarbanes-Oxley Act certifications (Sections 302 and 906), and Inline XBRL financial data[220](index=220&type=chunk) [Signatures](index=49&type=section&id=Signatures) This section contains the required signatures, certifying the filing of the report on behalf of TriMas Corporation - The report is duly signed on behalf of TriMas Corporation by Teresa M. Finley, Chief Financial Officer, on July 29, 2025[223](index=223&type=chunk)

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2025 reached $275 million, up more than 14% year over year, with organic growth exceeding 13% [14][15] - Consolidated operating profit increased by over 50% compared to Q2 2024, reflecting strong revenue growth and a 300 basis point expansion in operating margin [15] - Adjusted EBITDA rose 31% to nearly $48 million, with a margin improvement of 220 basis points to 17.4% [15] - Adjusted earnings per share increased to $0.61, representing a 42% growth year over year [15] Business Line Data and Key Metrics Changes Packaging Segment - Achieved organic sales growth of nearly 8%, driven by strong demand for dispensers in the Beauty and Personal Care market [18] - Operating profit margin improved by 30 basis points to 14.3%, with adjusted EBITDA margin up 70 basis points to 20.9% [18] Aerospace Segment - Recorded sales of approximately $100 million, with a growth rate of over 32% [20] - Operating profit nearly doubled year over year, with margin expansion of 650 basis points [21] Specialty Products Segment - North Cylinder experienced 13% year-over-year sales growth, but overall sales in the segment were down 6.8% due to the divestiture of AeroEngine [22] - Operating profit more than doubled, with a margin improvement of 250 basis points year over year [22] Market Data and Key Metrics Changes - The Aerospace group benefited from increased demand in the aerospace and defense market, leading to a strong order book and improved throughput [20][21] - The Packaging segment is monitoring the evolving global tariff environment, which poses challenges but is being managed through strategic sourcing and pricing adjustments [19] Company Strategy and Development Direction - The new CEO emphasized the importance of operational improvements, cost efficiencies, and growth through internal and external investments [11][12] - Focus on greater standardization across global operations to enhance efficiency and reduce complexity [11] - Commitment to integrating recent acquisitions to unlock their full potential and drive profitable growth [12] Management's Comments on Operating Environment and Future Outlook - Management raised the 2025 sales growth outlook to 8-10% and adjusted earnings per share guidance to $1.95 to $2.10, reflecting strong performance in Aerospace and positive trends in Specialty Products [25] - The company remains cautious about the changing tariff environment, which could impact customer order patterns and consumer demand [25] Other Important Information - The company reported a decline in net debt and improved free cash flow, indicating a strong capital position [17] - The CEO's early observations highlighted the talent and dedication of the workforce, as well as the innovative capabilities of the products and processes [10] Q&A Session Summary Question: What does the portfolio look like over the intermediate to longer term? - The CEO indicated a focus on maximizing the current portfolio and operational improvements, with an emphasis on integrating and optimizing existing businesses [36][38] Question: Is there a moderation in operating leverage for aerospace in the back half of the year? - Management confirmed that seasonal trends and unique customer benefits in Q4 would lead to a moderation in operating margins [39][40] Question: How much of the aerospace growth is due to competitor capacity loss versus market share gains? - Management stated that competitive issues had a minimal impact on growth, attributing success to market penetration and new customer acquisitions [46] Question: Are bottleneck issues in packaging resolved? - Management acknowledged ongoing opportunities for improvement in the packaging segment, with initiatives in place to enhance efficiencies [49] Question: What is the expected new accounts receivable run rate? - Management indicated that accounts receivable are currently on the high side but improvements are expected over time [53]

Company Performance - TriMas reported quarterly earnings of $0.61 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and up from $0.43 per share a year ago, indicating a positive earnings surprise of +22.00% [1][2] - The company achieved revenues of $274.76 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.93%, compared to $240.5 million in the same quarter last year [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $257.51 million, and for the current fiscal year, it is $1.81 on revenues of $980.07 million [8] - The estimate revisions trend for TriMas was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - TriMas operates within the Zacks Metal Products - Procurement and Fabrication industry, which is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting potential challenges ahead [9] - The performance of TriMas may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]

Financial Performance - Net sales increased by 14.2% from $240.5 million in Q2 2024 to $274.8 million in Q2 2025[16] - Adjusted EBITDA increased by 31.0% from $36.6 million in Q2 2024 to $47.9 million in Q2 2025[16] - Adjusted earnings per share increased by 41.9% from $0.43 in Q2 2024 to $0.61 in Q2 2025[16] - Aerospace segment sales grew by 32.5% year-over-year[13, 28] - Packaging segment sales grew by 8.4% year-over-year[13, 23] Segment Results - Packaging segment net sales increased to $143.0 million, up 8.4% from $131.9 million in Q2 2024[23] - Aerospace segment net sales increased to $103.0 million, up 32.5% from $77.7 million in Q2 2024[28] - Specialty Products segment net sales decreased to $28.7 million, down 6.8% from $30.9 million in Q2 2024, primarily due to the Arrow Engine divestiture[32, 35] Outlook - The company is raising its full-year 2025 sales growth outlook from 4%-6% to 8%-10%[37] - The company is raising its full-year 2025 adjusted EPS outlook from $1.70-$1.85 to $1.95-$2.10[37]