TriMas (TRS) - 2025 Q2 - Quarterly Results

Executive Summary & Q2 2025 Highlights The company reported strong Q2 2025 results with significant growth in sales and profit, prompting an increased full-year outlook Q2 2025 Consolidated Financial Performance TriMas reported strong Q2 2025 financial results, with significant year-over-year increases in net income, sales, and operating profit | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | YoY Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | :------------- | | Net Income | $16.7 | $10.9 | $5.8 | 53.2% | | Adjusted Net Income | $25.1 | $17.5 | $7.6 | 43.4% | | Diluted EPS | $0.41 | $0.27 | $0.14 | 51.9% | | Adjusted Diluted EPS | $0.61 | $0.43 | $0.18 | 41.9% | | Net Sales | $274.8 | $240.5 | $34.3 | 14.2% | | Operating Profit | $27.1 | $17.9 | $9.2 | 51.4% | | Adjusted Operating Profit | $31.8 | $20.8 | $11.0 | 53.2% | - Consolidated sales growth was 14.2%, with organic growth, net of currency impact, of 13.4%[4] CEO Commentary The CEO highlighted strong performance driven by Aerospace and Packaging, expressing confidence and raising the full-year 2025 outlook - The team delivered a strong quarter with solid top-line growth and improving margins in both Aerospace and Packaging segments[1] - The company is raising its full-year 2025 sales and earnings outlook due to current momentum[1] - Management remains confident in the long-term growth potential of Packaging and Aerospace, and the ongoing recovery within Specialty Products[1] Financial Position The company maintained a strong balance sheet and improved cash flow, enabling continued investment and shareholder returns Q2 2025 Financial Position Overview TriMas demonstrated improved financial health with increased cash flow, sufficient liquidity, and a manageable net leverage ratio | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | YoY Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | :------------- | | Net Cash Provided by Operating Activities | $30.3 | $18.4 | $11.9 | 64.7% | | Free Cash Flow | $16.9 | $11.4 | $5.5 | 48.2% | | Cash on Hand (as of June 30, 2025) | $30.3 | N/A | N/A | N/A | | Total Debt (as of June 30, 2025) | $424.5 | N/A | N/A | N/A | | Net Debt (as of June 30, 2025) | $394.3 | N/A | N/A | N/A | | Net Leverage Ratio (as of June 30, 2025) | 2.6x | N/A | N/A | N/A | - The company had $249.4 million of cash and available borrowing capacity under its revolving credit facility as of June 30, 2025[2] - During the first six months of 2025, TriMas repurchased 106,220 shares for $2.3 million, with $65.4 million remaining under authorization[2] - A quarterly cash dividend of $0.04 per share was paid[2] Second Quarter Segment Performance This section details the performance of the Packaging, Aerospace, and Specialty Products segments during the second quarter Packaging Group The Packaging group achieved strong organic sales growth driven by beauty, personal care, and industrial end markets | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change (%) | | :---------------- | :------------------ | :------------------ | :------------- | | Net Sales | $143.0 | $131.9 | 8.4% | | Organic Growth | N/A | N/A | 7.9% | | Operating Profit | $19.99 | $18.02 | 10.9% | | Adjusted Operating Profit | $20.43 | $18.46 | 10.7% | - Sales growth was partially offset by lower sales of products used in food & beverage applications[3] Aerospace Group The Aerospace group delivered exceptional sales and profit growth, driven by higher build rates and the TAG acquisition | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change (%) | | :-------------------------- | :------------------ | :------------------ | :------------- | | Net Sales | $103.0 | $77.7 | 32.5% | | Operating Profit | $20.14 | $10.43 | 93.1% | | Adjusted Operating Profit | $20.65 | $10.46 | 97.4% | - Operating profit margin increased by 650 basis points over the prior year period, driven by higher sales conversion, commercial actions, and operational excellence initiatives[5] - Growth was primarily due to an increase in industry build rates, new awards, commercial actions, and the acquisition of TriMas Aerospace Germany (TAG) in Q1 2025[4] Specialty Products Group The Specialty Products group saw a sales decline due to a divestiture, though underlying performance and profit improved | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change (%) | | :---------------- | :------------------ | :------------------ | :------------- | | Net Sales | $28.7 | $30.8 | (6.8)% | | Operating Profit | $1.26 | $0.58 | 117.2% | | Adjusted Operating Profit | $1.26 | $0.58 | 117.2% | - Norris Cylinder sales increased by 13.0% year-over-year, but this was more than offset by the loss of sales from the Arrow Engine divestiture in January 2025[6] 2025 Full-Year Outlook The company raised its full-year 2025 guidance for sales growth and adjusted earnings per share based on strong first-half performance Revised 2025 Guidance TriMas raised its full-year 2025 outlook for adjusted diluted EPS and sales growth, citing sustained business momentum | Metric | New 2025 Outlook | Previous 2025 Outlook | Change | | :-------------------------- | :-------------------- | :-------------------- | :----- | | Adjusted Diluted EPS | $1.95 to $2.10 | $1.70 to $1.85 | Increased | | Consolidated Sales Growth (YoY) | 8% to 10% | 4% to 6% | Increased | - The increased guidance is supported by sustained momentum in the Aerospace business and positive trends within Specialty Products[7] - The Packaging group remains on track, delivering continued growth and margin expansion[7] Corporate Information & Disclosures This section provides key corporate details, including conference call information, forward-looking statements, and non-GAAP measure definitions Conference Call Details TriMas hosted its second quarter 2025 earnings conference call on July 29, 2025, providing details for participation and replay - Conference call held on Tuesday, July 29, 2025, at 10 a.m. ET[8] - Available via phone (877) 407-0890 (U.S./Canada) or +1 (201) 389-0918 (international) and webcast on www.trimas.com under 'Investors' section[8] - Replay available from July 29 to August 12, 2025[8] Notice Regarding Forward-Looking Statements The report includes forward-looking statements subject to various risks and uncertainties, and the company assumes no obligation to update them - Forward-looking statements involve risks including general economic conditions, competitive factors, market demand, and the ability to realize business strategies[9] - Risks also include government actions, supply chain pressures, and international operations risks[9] - The company's outlook includes the impact of all announced acquisitions and assumes no detrimental impact from global conflicts or geopolitical actions[9] Non-GAAP Financial Measures TriMas utilizes non-GAAP measures to provide additional insight into underlying business trends, with reconciliations provided in Appendix I - Non-GAAP measures are used to help investors identify underlying trends and facilitate performance comparisons with peers[11] - Reconciliations of forward-looking non-GAAP measures are provided only for the expected impact of amortization for completed acquisitions[12] - Definitions for 'Special Items', 'Adjusted Net Income', and 'Free Cash Flow' are provided, detailing adjustments for non-recurring items[14] About TriMas TriMas is a global manufacturer of diverse products for consumer, aerospace, and industrial markets with approximately 3,900 employees - TriMas manufactures products for consumer products, aerospace, and industrial markets[13] - Operates through TriMas Packaging, TriMas Aerospace, and Specialty Products groups[13] - Approximately 3,900 employees in 13 countries[13] Contact Information Contact details for investor relations, communications, and sustainability are provided for inquiries - Contact: Sherry Lauderback, VP, Investor Relations, Communications & Sustainability[14] - Phone: (248) 631-5506[15] - Email: sherry.lauderback@trimas.com[15] Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated balance sheet, statement of income, and statement of cash flow Condensed Consolidated Balance Sheet The balance sheet shows TriMas's financial position as of June 30, 2025, compared to December 31, 2024, indicating asset growth | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Total Assets | $1,445,400 | $1,324,180 | | Total Liabilities | $730,130 | $656,880 | | Total Shareholders' Equity | $715,270 | $667,300 | | Cash and cash equivalents | $30,280 | $23,070 | | Receivables, net | $203,770 | $164,820 | | Inventories | $216,900 | $209,190 | | Long-term debt, net | $424,540 | $398,120 | Consolidated Statement of Income The income statement reflects significant year-over-year improvements in net sales, gross profit, and net income, indicating strong performance | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | 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 | | Net income | $16,720 | $10,940 | $29,140 | $16,080 | | Diluted earnings per share | $0.41 | $0.27 | $0.71 | $0.39 | Consolidated Statement of Cash Flow The cash flow statement shows a substantial increase in net cash from operating activities for the first six months of 2025 | Metric (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | | 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 | | Capital expenditures | $(29,980) | $(24,110) | | Acquisition of business, net of cash acquired | $(37,160) | — | | Net proceeds from disposition of business, property and equipment | $21,180 | $230 | | Cash and cash equivalents at end of period | $30,280 | $35,010 | Appendix I: Non-GAAP Reconciliations & Supplemental Data The appendix provides detailed reconciliations for non-GAAP financial measures to their nearest GAAP equivalents Segment Operating Profit Reconciliation This section reconciles GAAP operating profit to adjusted operating profit for each segment, detailing the impact of 'Special Items' | Segment (in thousands) | Q2 2025 Operating Profit | Q2 2025 Adjusted Operating Profit | Q2 2024 Operating Profit | Q2 2024 Adjusted Operating Profit | | :----------------------- | :------------------------ | :-------------------------- | :------------------------ | :-------------------------- | | Packaging | $19,990 | $20,430 | $18,020 | $18,460 | | Aerospace | $20,140 | $20,650 | $10,430 | $10,460 | | Specialty Products | $1,260 | $1,260 | $580 | $580 | | Corporate Expenses | $(14,260) | $(10,560) | $(11,180) | $(8,750) | | Total Company | $27,130 | $31,780 | $17,850 | $20,750 | - Special Items for Q2 2025 totaled $4.65 million, including business restructuring, purchase accounting, M&A diligence, and system implementation costs[23] Net Income and Diluted EPS Reconciliation This section reconciles GAAP net income and diluted EPS to their adjusted non-GAAP counterparts, detailing various adjustments | Metric | Q2 2025 (as reported) | Q2 2025 (adjusted) | Q2 2024 (as reported) | Q2 2024 (adjusted) | | :-------------------------------- | :-------------------- | :------------------ | :-------------------- | :------------------ | | Net income (in thousands) | $16,720 | $25,070 | $10,940 | $17,450 | | Diluted EPS | $0.41 | $0.61 | $0.27 | $0.43 | | Total Special Items (Q2 2025) | N/A | $2,670 (restructuring) + $510 (purchase acct) + $30 (M&A) + $1,440 (system impl) = $4,650 | N/A | N/A | | Amortization of acquisition-related intangible assets (Q2 2025) | N/A | $4,350 | N/A | N/A | | Non-cash compensation expense (Q2 2025) | N/A | $2,010 | N/A | N/A | Free Cash Flow and Net Debt Reconciliation This reconciliation shows the calculation of Free Cash Flow from operating cash flow and Net Debt from total long-term debt | Metric (in thousands) | Q2 2025 (as reported) | Q2 2025 (adjusted) | Q2 2024 (as reported) | Q2 2024 (adjusted) | | :-------------------------------- | :-------------------- | :------------------ | :-------------------- | :------------------ | | Net cash provided by operating activities | $30,250 | $33,900 | $18,360 | $22,220 | | Capital expenditures | $(17,040) | $(17,040) | $(10,860) | $(10,860) | | Free Cash Flow | $13,210 | $16,860 | $7,500 | $11,360 | | Net Debt (June 30, 2025) | N/A | $394,260 | N/A | N/A | | Net Debt (December 31, 2024) | N/A | $375,050 | N/A | N/A | Sales Growth Analysis by Component This section breaks down consolidated and segment-level sales growth into organic, acquisitions, divestitures, and foreign exchange components | Segment | Organic | Acquisitions | Divestitures | Foreign Exchange | Total | | :-------------------------- | :------ | :----------- | :----------- | :--------------- | :---- | | Q2 2025 vs. Q2 2024 | | | | | | | Consolidated TriMas Corporation | 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)% | | YTD Q2 2025 vs YTD Q2 2024 | | | | | | | Consolidated TriMas Corporation | 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)% | Forecasted Diluted Earnings Per Share Guidance Reconciliation This reconciliation provides the breakdown from GAAP diluted EPS to adjusted diluted EPS for the full year 2025 outlook | Metric (dollars per share) | Low (2025) | High (2025) | | :-------------------------------- | :--------- | :---------- | | Diluted earnings per share (GAAP) | $1.31 | $1.46 | | Pre-tax amortization of acquisition-related intangible assets | $0.42 | $0.42 | | Income tax benefit on amortization | $(0.11) | $(0.11) | | Pre-tax non-cash compensation expense | $0.25 | $0.25 | | Income tax benefit on non-cash compensation expense | $(0.06) | $(0.06) | | Impact of Special Items | $0.14 | $0.14 | | Adjusted diluted earnings per share | $1.95 | $2.10 | - The company is unable to provide forward-looking estimates of future Special Items or amortization from future acquisitions due to inherent uncertainty[29]