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Howmet Aerospace's Margins Continue to Expand: Can the Momentum Sustain?
ZACKS· 2025-07-01 12:56
Core Insights - Howmet Aerospace Inc. (HWM) has shown a consistent increase in its adjusted EBITDA margin, reaching 28.8% in Q1 2025, up 480 basis points from Q4 2024, driven by pricing strength and productivity gains [1][7]. Group 1: Financial Performance - The adjusted EBITDA margin for HWM rose from 25.7% in Q2 2024 to 26.5% in Q3 2024, and further to 26.8% in Q4 2024, indicating strong operational execution [1]. - In Q1 2025, HWM's cost of goods sold remained flat year-over-year, while SG&A expenses decreased slightly, contributing to improved profit margins [2]. - HWM's shares have surged 138.4% over the past year, significantly outperforming the industry growth of 18.6% [6]. Group 2: Market Dynamics - Strong demand in the commercial and defense aerospace markets, particularly for F-35 engine spares and aerospace components, supports HWM's performance [2][7]. - Despite challenges in the commercial transportation market, HWM's operational efficiency and supply-chain management position it well for sustained growth [3]. Group 3: Peer Comparison - RTX Corporation's total costs increased by 2.6% year-over-year, with an adjusted operating margin of 13.1%, up 120 basis points due to cost-reduction initiatives [4]. - GE Aerospace's cost of sales grew by 4.3% year-over-year, but its adjusted operating profit increased by 38.4%, leading to a margin increase of 460 basis points to 23.8% [5]. Group 4: Valuation and Estimates - HWM is currently trading at a forward price-to-earnings ratio of 49.13X, which is above the industry average of 26.77X, indicating a higher valuation relative to peers [9]. - The Zacks Consensus Estimate for HWM's earnings has been rising over the past 60 days, reflecting positive market sentiment [10].
TriMas (TRS) Tops Q1 Earnings and Revenue Estimates
ZACKS· 2025-04-29 14:15
Company Performance - TriMas reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and up from $0.37 per share a year ago [1] - The quarterly earnings surprise was 6.98%, while the previous quarter saw a negative surprise of -10.42% [2] - Revenues for the quarter reached $241.67 million, surpassing the Zacks Consensus Estimate by 3.53%, compared to $227.1 million in the same quarter last year [3] Market Outlook - TriMas shares have declined approximately 14.6% year-to-date, contrasting with the S&P 500's decline of -6% [4] - The current consensus EPS estimate for the upcoming quarter is $0.49, with expected revenues of $247.52 million, and for the current fiscal year, the EPS estimate is $1.80 on revenues of $975.36 million [8] Industry Context - The Metal Products - Procurement and Fabrication industry, to which TriMas belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [9]