TRIMAS CORP Q1 FY2025 earnings call

• Aerospace: Had a record sales quarter, EBITDA LTM at 20%, and successfully acquired GMT Aerospace (renamed TAG), which contributed about $3 million in sales in the first month and a half of ownership. • Packaging: Organic growth of 3.3% after currency adjustment, dispensing products had solid growth, life sciences up, quilter down due to inventory, and took proactive step of securing materials ahead of tariff rates with incremental costs. • Specialty Products: North Cylinder starting to see positive change in order intake, cost restructured, and expects operating profit to normalize in the second half.

The two largest segments, Packaging and Aerospace, together account for nearly 90% of TriMas' revenues. Packaging had organic growth of 3.3% after adjusting for currency, with sales in dispensing products showing solid growth, life sciences up, but quilter down due to inventory. Aerospace achieved organic growth of 27.8%, had a record sales quarter, and LTM EBITDA is at 20%. Specialty Products segment had sales lower by $7.9 million, with North Cylinder starting to see an increase in order intake and cost restructuring done to improve performance.

• Reaffirmed 2025 outlook but noted the trade strategy from the US government is fluid with no full annual impact prediction yet. • Will monitor the second quarter and adjust segment forecasting if comfortable.

• Uncertainty related to trade tariffs, which could have an impact on manufacturing and costs. • Geopolitical actions affecting end markets and potential prolonged impact on production relocation decisions.

Q: Is there any change to the segment guidance provided last quarter?

A: At this point, no change as there is a lot of uncertainty and they want to wait and see through the second quarter.

Q: How are you thinking about other investments or potential headwinds relative to packaging or other segments?

A: Near term, mitigating exposure on procurement front; longer term, relocating production if needed, which could take 1 - 2 years.

Q: Talk about the aerospace organic growth cadence and operating leverage.

A: Coming off a high base, expect modest operating leverage, but being conservative due to current uncertainty.

Q: Reconciling the conservative commentary with the aerospace dynamics?

A: They want to get through the second quarter and then look at segment forecasting; they are off to a great start otherwise.

Q: On the packaging side, are you done with CapEx investment?

A: Not done with CapEx as they continue to invest in capacity, but capex rate will be more moderate than prior years.

Q: What drove the gains in beauty and personal care?

A: A bit of share capture in Latin America and strong demand for a 4cc lotion pump product line.

Q: Thoughts on inventories at customers' distributor channels?

A: Little abnormal, some pockets with buying opportunities but not widespread; some product lines were down due to overstock at the start of the year.

Q: How are you thinking about organic pricing relative to volumes within the four to six percent range?

A: Will know more at the end of Q2; tariffs holding longer may impact the year-end guide