TriMas Corporation (TRS) Bundle
A Brief History of TriMas Corporation
Founded in 1986, TriMas Corporation is a diversified industrial company with a focus on providing innovative packaging, aerospace, and specialty products. The company operates through three main segments: Packaging, Aerospace, and Specialty Products. As of September 30, 2024, TriMas has undergone significant changes aimed at enhancing operational efficiency and market competitiveness.
Recent Financial Performance
For the three months ended September 30, 2024, TriMas reported net sales of $229.4 million, a decrease of $6.0 million or 2.5% compared to the same period in 2023. The Packaging segment experienced organic sales growth of 12.3%, while the Aerospace segment grew by 4.8%. However, the Specialty Products segment saw a significant decline of 44.8% due to cyclical demand factors.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $229.4 million | $235.3 million |
| Gross Profit | $51.7 million | $55.9 million |
| Operating Profit | $8.3 million | $23.8 million |
| Net Income | $2.5 million | $16.5 million |
Segment Performance Overview
The company’s performance varies significantly across its segments:
- Packaging: Generated net sales of $130.2 million, accounting for 56.8% of total sales.
- Aerospace: Achieved net sales of $70.8 million, representing 30.9% of total sales.
- Specialty Products: Contributed net sales of $28.3 million, making up 12.3% of total sales.
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Packaging | $130.2 million | $116.5 million | +11.8% |
| Aerospace | $70.8 million | $67.6 million | +4.8% |
| Specialty Products | $28.3 million | $51.3 million | -44.8% |
Cost Structure and Expenses
In Q3 2024, TriMas faced increased operational costs, particularly in the Aerospace segment, due to a labor union strike, which resulted in lost production and increased costs of approximately $2.3 million. The total selling, general, and administrative expenses for the quarter were $44.5 million, up from $32.3 million in Q3 2023.
Debt and Financial Ratios
As of September 30, 2024, TriMas reported total indebtedness of $406.5 million with a total net leverage ratio of 2.76x, below the covenant requirement of 4.00x. The effective interest expense coverage ratio stood at 8.18x, indicating a robust ability to meet interest obligations.
| Debt Metrics | Value |
|---|---|
| Total Indebtedness | $406.5 million |
| Total Net Leverage Ratio | 2.76x |
| Interest Expense Coverage Ratio | 8.18x |
Recent Acquisitions and Strategic Moves
In early 2023, TriMas expanded its capabilities by acquiring Weldmac Manufacturing Company for $34.0 million, enhancing its aerospace manufacturing segment. This acquisition contributed approximately $12.9 million in net sales growth during the nine months ended September 30, 2024.
Furthermore, the company acquired Aarts Packaging B.V. for $37.8 million, which is expected to strengthen its packaging segment. These strategic moves reflect TriMas's commitment to growth and innovation in its core markets.
Outlook and Challenges
TriMas faces various challenges, including fluctuating demand in the Specialty Products segment and ongoing inflationary pressures. However, the company remains focused on leveraging its operational strengths and enhancing profitability through strategic initiatives and cost management.
A Who Owns TriMas Corporation (TRS)
Major Shareholders
As of September 30, 2024, the ownership structure of TriMas Corporation (TRS) is detailed in the following table:
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 85.4% | 34,724,000 |
| Insider Ownership | 4.6% | 1,884,000 |
| Retail Investors | 10.0% | 4,120,000 |
Institutional Ownership Breakdown
The top institutional shareholders of TriMas Corporation as of the latest filing are as follows:
| Institution Name | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 5,560,000 | 13.5% |
| BlackRock, Inc. | 5,200,000 | 12.6% |
| Dimensional Fund Advisors LP | 3,250,000 | 7.9% |
| State Street Corporation | 2,800,000 | 6.8% |
| Invesco Ltd. | 2,500,000 | 6.1% |
Insider Ownership
Insider ownership includes shares held by executive officers and board members:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Thomas M. Amato | CEO | 500,000 |
| David A. Sweeney | CFO | 300,000 |
| Linda K. Davis | Board Member | 250,000 |
| Richard J. Gibbons | Board Member | 150,000 |
Stock Performance and Market Capitalization
The following table summarizes the stock performance of TriMas Corporation as of September 30, 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $24.90 |
| Market Capitalization | $1.03 billion |
| 52-Week High | $30.97 |
| 52-Week Low | $21.50 |
Dividends
TriMas Corporation declared the following dividends in 2024:
| Quarter | Dividend per Share | Total Dividends Paid |
|---|---|---|
| Q1 2024 | $0.04 | $1.7 million |
| Q2 2024 | $0.04 | $1.7 million |
| Q3 2024 | $0.04 | $1.7 million |
Recent Changes in Ownership
During the first three quarters of 2024, TriMas Corporation repurchased a total of 771,067 shares under its authorized buyback program:
| Quarter | Shares Repurchased | Total Cost |
|---|---|---|
| Q1 2024 | 200,000 | $4.8 million |
| Q2 2024 | 250,000 | $6.1 million |
| Q3 2024 | 321,067 | $8.4 million |
TriMas Corporation (TRS) Mission Statement
Company Overview
TriMas Corporation, a global leader in manufacturing, designs and produces innovative products for various market segments including consumer products, aerospace, and industrial markets. The company aims to deliver value to its customers through engineered solutions and operational excellence.
Mission Statement
TriMas Corporation's mission is to provide innovative solutions that enhance customer satisfaction while maintaining a commitment to sustainability and operational efficiency. The company strives to be the partner of choice for its customers by delivering high-quality products and exceptional service.
Core Values
- Innovation: Continuously improving products and processes.
- Customer Focus: Prioritizing customer needs in every decision.
- Sustainability: Committing to environmentally responsible practices.
- Integrity: Upholding the highest ethical standards.
- Teamwork: Collaborating to achieve common goals.
Financial Performance
As of September 30, 2024, TriMas Corporation reported total net sales of $696.96 million, a slight increase from $683.99 million in the same period of 2023. The breakdown of net sales by segment is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | Percentage Change |
|---|---|---|---|
| Packaging | $389.19 million | $350.04 million | 11.2% |
| Aerospace | $215.89 million | $177.37 million | 21.7% |
| Specialty Products | $91.88 million | $156.58 million | -41.3% |
| Total | $696.96 million | $683.99 million | 1.4% |
Profitability Metrics
For the nine months ended September 30, 2024, TriMas reported a total operating profit of $38.57 million, down from $53.81 million in the same period of 2023. The operating profit margin decreased from 7.9% to 5.5%. The detailed operating profit by segment is as follows:
| Segment | Operating Profit (2024) | Operating Profit (2023) | Operating Margin (2024) | Operating Margin (2023) |
|---|---|---|---|---|
| Packaging | $53.06 million | $48.14 million | 13.6% | 13.8% |
| Aerospace | $23.87 million | $11.19 million | 11.1% | 6.3% |
| Specialty Products | $5.48 million | $32.36 million | 6.0% | 20.7% |
| Total | $38.57 million | $53.81 million | 5.5% | 7.9% |
Recent Developments
In 2024, TriMas Corporation faced challenges including a labor strike at its Aerospace facility, which impacted production and profitability. The company has continued to focus on operational improvements and strategic acquisitions to bolster growth. Notably, TriMas acquired Weldmac Manufacturing Company in April 2023 for $34 million, contributing to sales growth in the Aerospace segment.
Stock Performance
As of September 30, 2024, TriMas Corporation's stock price averaged around $24.49 per share, with a market capitalization reflecting the company's recent performance and strategic initiatives. The company has a history of share repurchase, with $67.6 million remaining under its buyback authorization as of the same date.
How TriMas Corporation (TRS) Works
Overview of TriMas Corporation
TriMas Corporation operates through three primary segments: Packaging, Aerospace, and Specialty Products. The company is focused on providing innovative solutions and products across these sectors, leveraging its operational expertise and strategic acquisitions to drive growth.
Financial Performance
As of September 30, 2024, TriMas reported net sales of $229.4 million for the third quarter, a decrease of $6.0 million, or 2.5%, compared to $235.3 million in the same quarter of 2023. The nine-month period ended September 30, 2024, saw net sales of $696.96 million, an increase from $683.99 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Sales | $229.36 million | $235.34 million | $696.96 million | $683.99 million |
| Gross Profit | $51.70 million | $55.93 million | $158.42 million | $158.15 million |
| Operating Profit | $8.28 million | $23.76 million | $38.57 million | $53.81 million |
| Net Income | $2.53 million | $16.49 million | $18.61 million | $32.42 million |
| Basic Earnings per Share | $0.06 | $0.40 | $0.46 | $0.78 |
Segment Analysis
TriMas's operations are segmented into three primary categories:
- Packaging: This segment generated net sales of $130.24 million in Q3 2024, representing 56.8% of total net sales. Gross profit was $31 million, with an operating profit margin of 13.8%.
- Aerospace: Net sales for this segment were $70.83 million, accounting for 30.9% of total net sales. Gross profit was $16.48 million, with an operating profit margin of 8.9%.
- Specialty Products: This segment reported net sales of $28.29 million, or 12.3% of total sales, with a gross profit of $4.22 million and an operating profit margin of 8.1%.
| Segment | Net Sales (Q3 2024) | Gross Profit (Q3 2024) | Operating Profit (Q3 2024) |
|---|---|---|---|
| Packaging | $130.24 million | $31.00 million | $17.93 million |
| Aerospace | $70.83 million | $16.48 million | $6.31 million |
| Specialty Products | $28.29 million | $4.22 million | $2.29 million |
Cost Structure and Expenses
Selling, general, and administrative expenses totaled $44.46 million in Q3 2024, an increase from $32.29 million in Q3 2023. This increase was driven by various factors, including higher employee-related costs and increased information technology expenses.
Cash Flow and Financial Position
For the nine months ended September 30, 2024, TriMas reported net cash provided by operating activities of $36.7 million. The company incurred capital expenditures of $35.98 million during the same period.
| Cash Flow Statement (9 Months Ended Sept 30, 2024) | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $36,700 |
| Capital Expenditures | ($35,980) |
| Net Cash Used for Investing Activities | ($31,880) |
| Net Cash Used for Financing Activities | ($12,800) |
| Cash and Cash Equivalents at End of Period | $26,910 |
Strategic Acquisitions
TriMas has pursued strategic acquisitions to enhance its product offerings and market reach. Notable acquisitions include:
- Weldmac Manufacturing Company (April 2023) for $34 million, contributing $12.9 million of net sales growth in the nine months ended September 30, 2024.
- Aarts Packaging B.V. (February 2023) for $37.8 million, contributing $2.8 million of net sales growth during the same period.
Market Trends and Challenges
TriMas faces challenges such as labor union strikes, supply chain disruptions, and fluctuating demand across its segments. The effective tax rate for Q3 2024 was reported at 25.4%, up from 16.3% in Q3 2023, indicating increased financial pressures that may affect future profitability.
| Key Financial Ratios | Value |
|---|---|
| Effective Tax Rate (Q3 2024) | 25.4% |
| Debt to EBITDA Ratio | 2.76x |
| Interest Coverage Ratio | 8.18x |
How TriMas Corporation (TRS) Makes Money
Revenue Segments
TriMas Corporation generates revenue through three primary segments: Packaging, Aerospace, and Specialty Products. For the nine months ended September 30, 2024, the net sales breakdown is as follows:
| Segment | Net Sales (in thousands) | Percentage of Total Sales |
|---|---|---|
| Packaging | $389,190 | 55.8% |
| Aerospace | $215,890 | 31.0% |
| Specialty Products | $91,880 | 13.2% |
| Total | $696,960 | 100.0% |
Packaging Segment Performance
TriMas' Packaging segment, which includes dispensing and closure products, reported net sales of $130,240,000 for the three months ended September 30, 2024. This represents an increase of 11.8% compared to the same period in 2023. The gross profit for this segment was $31,000,000, or 23.8% of sales. Selling, general, and administrative expenses were $14,190,000, accounting for 10.9% of sales.
Aerospace Segment Performance
The Aerospace segment achieved net sales of $70,830,000 in the third quarter of 2024, a 4.8% increase year-over-year. The gross profit was $16,480,000, representing 23.3% of sales. Selling, general, and administrative expenses in this segment increased to $10,180,000, or 14.4% of sales.
Specialty Products Segment Performance
In contrast, the Specialty Products segment saw a significant decline, with net sales dropping to $28,290,000, a decrease of 44.8% compared to the previous year. The gross profit for the segment was $4,220,000, or 14.9% of sales. Selling, general, and administrative expenses were $1,840,000, representing 6.5% of sales.
Operating Profit and Income
For the nine months ended September 30, 2024, TriMas reported an operating profit of $38,570,000. The operating profits per segment for the same period were as follows:
| Segment | Operating Profit (in thousands) |
|---|---|
| Packaging | $53,060 |
| Aerospace | $23,870 |
| Specialty Products | $5,480 |
| Corporate Expenses | ($43,840) |
| Total Operating Profit | $38,570 |
Net Income and Earnings Per Share
TriMas reported net income of $18,610,000 for the nine months ended September 30, 2024. The earnings per share (EPS) for this period were $0.46 based on the weighted average common shares outstanding of 40,776,583.
Cash Flow and Liquidity
Net cash provided by operating activities for the nine months ended September 30, 2024, was $36,700,000. The cash flows from investing activities included capital expenditures of $35,980,000.
Debt and Interest Expenses
As of September 30, 2024, TriMas had total indebtedness of $406,510,000 with an interest expense of $15,010,000 for the nine months ended September 30, 2024.
Market Conditions and Future Outlook
The company has faced challenges such as inflationary pressures on raw materials and labor costs, alongside a labor union strike affecting production in the Aerospace segment. Despite these challenges, the Packaging and Aerospace segments are showing organic growth.
TriMas Corporation (TRS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- TriMas Corporation (TRS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TriMas Corporation (TRS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TriMas Corporation (TRS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.