TriMas Earnings Miss Estimates in Q4, Revenues Increase 9% Y/Y

Core Insights - TriMas Corporation (TRS) reported fourth-quarter 2024 adjusted earnings per share (EPS) of 43 cents, missing the Zacks Consensus Estimate of 48 cents, but showing a 13.2% increase from the prior-year quarter [1][8] - The company's revenues increased 8.8% year over year to $228 million, driven by growth in the Packaging and Aerospace segments, although it missed the Zacks Consensus Estimate of $229 million [2][8] Financial Performance - The cost of sales rose 12.4% year over year to $187 million, leading to a gross profit decline of 4.9% to $41 million, resulting in a gross margin of 18% compared to 20.6% in the prior-year quarter [3] - Selling, general and administrative expenses increased by 6.6% year over year to $32 million, while adjusted operating profit rose 23.5% to $23 million, with an adjusted operating margin of 10.2% [3] Segment Performance - Packaging Segment: Net sales were $123 million, up from $114 million year over year, but adjusted operating profit decreased 2.5% to $15.7 million, missing estimates [4] - Aerospace Segment: Net sales increased 22.3% year over year to $78 million, exceeding estimates, with adjusted operating profit rising to $10.9 million from $6 million [5] - Specialty Products Segment: Revenues fell 16.8% year over year to $27 million, with adjusted operating profit dropping to $0.76 million from $4 million, missing estimates [6] Cash Flow and Balance Sheet - In 2024, the company repurchased approximately 771,067 shares for $19.3 million, ending the year with $23.1 million in cash and $239.8 million in available borrowing capacity [7] - TriMas generated $64 million in cash flow from operations in 2024, down from $88 million in the prior year [7] Annual Results and Guidance - For 2024, TriMas reported an adjusted EPS of $1.65, missing the Zacks Consensus Estimate of $1.69, with sales rising 3.5% year over year to $925 million, also missing estimates [8] - The company expects year-over-year sales growth of 4-6% for 2025, with adjusted EPS projected to be between $1.70 and $1.85 [9] Stock Performance - TriMas shares have declined by 12.3% over the past year, contrasting with the industry's growth of 30.8% [10] Peer Comparisons - Kaiser Aluminum reported a fourth-quarter adjusted EPS of 33 cents, missing estimates, while Northwest Pipe Co. and ESAB Corporation both exceeded their EPS estimates for the quarter [12][13][14]