TriMas Reports First Quarter 2026 Results
Company Provides 2026 Full-Year Earnings Outlook
- First quarter sales growth increased 10.4% compared to prior year, including organic growth of 7.3%
-
First quarter operating profit totaled
$6.9 million , with adjusted operating profit of$12.7 million , up 32.2% - Repurchased nearly 1.5 million of outstanding shares during first quarter
-
Completed the divestiture of
TriMas Aerospace in March, generating$1.2 billion in net proceeds
TriMas reported first quarter 2026 net sales of
The Company reported a first quarter 2026 loss from continuing operations of
“We delivered first quarter results consistent with our expectations, while successfully completing the divestiture of
Financial Position
During the first quarter of 2026, the Company repurchased 1,487,057 shares of its outstanding common stock for
The Company reported net cash used in operating activities of continuing operations of
TriMas ended first quarter 2026 with
First Quarter Segment Results
TriMas' Specialty Products group reported first quarter net sales of
Discontinued Operations
The divestiture of
The results of operations for
Realignment and Cost-Out Initiatives
TriMas continues to advance its realignment and cost‑out initiatives, which are simplifying the organization and improving operating efficiency. As previously announced, actions taken in
2026 Outlook
The Company is reaffirming the full year 2026 sales and margin outlook previously provided on
“With the divestiture of
“We are also actively monitoring global conditions and working with our customers, suppliers and operating teams to mitigate potential impacts related to the conflict in the
The above outlook includes the impact of all announced acquisitions and divestitures as of
Conference Call Information
TriMas will host its first quarter 2026 earnings conference call today,
Notice Regarding Forward-Looking Statements
Any "forward-looking" statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, contained herein, including those relating to TriMas’ business, financial condition or future results, involve risks and uncertainties with respect to, including, but not limited to: general economic and currency conditions; competitive factors; market demand; our ability to realize our business strategies; government and regulatory actions, including, without limitation, the impact of current and future tariffs and reciprocal tariffs, quotas and surcharges, as well as climate change legislation and other environmental regulations; our ability to identify attractive acquisition candidates, successfully integrate acquired operations or realize the intended benefits of such acquisitions; our ability to recognize the benefits of and effectively deploy the net proceeds from the sale of
Non-GAAP Financial Measures
In this release, certain non-GAAP financial measures are used. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure may be found in Appendix I at the end of this release. Management believes that presenting these non-GAAP financial measures provides useful information to investors by helping them identify underlying trends in the Company’s businesses and facilitating comparisons of performance with prior and future periods and to the Company’s peers. These non-GAAP financial measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.
Reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are provided only for the expected impact of amortization of acquisition-related intangible assets for completed acquisitions, as the Company is unable to provide estimates of future Special Items(1) or amortization from future acquisitions without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and the financial impact of such items impacting comparability and the periods in which such items may be recognized. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Additional information is available at www.trimas.com under the “Investors” section.
|
(1) |
Appendix I details certain costs, expenses and other amounts or charges, collectively described as "Special Items," that are included in the determination of net income, earnings per share and/or cash flows from operating activities under GAAP, but that management believes should be separately considered when evaluating the quality of the Company’s core operating results, given they may not reflect the ongoing activities of the business. |
|
|
(2) |
The Company defines adjusted net income (and on a per diluted share basis, adjusted diluted earnings per share) as net income (per GAAP), plus or minus the after-tax impact of Special Items(1), plus the after-tax impacts of non-cash acquisition-related intangible asset amortization and non-cash compensation expense. While the acquisition-related intangible assets aid in the Company’s revenue generation, the Company adjusts for the non-cash amortization expense and non-cash compensation expense because the Company believes it (i) enhances management’s and investors’ ability to analyze underlying business performance, (ii) facilitates comparisons of financial results over multiple periods, and (iii) provides more relevant comparisons of financial results with the results of other companies as the amortization expense associated with these assets may fluctuate significantly from period to period based on the timing, size, nature, and number of acquisitions. |
|
|
(3) |
The Company defines Free Cash Flow as Net Cash Provided by/Used for Operating Activities, excluding the cash impact of Special Items, less Capital Expenditures. Please see Appendix I for additional details. |
|
|
(4) |
The Company defines Net Debt as Total Debt less Cash and Cash Equivalents. Please see Appendix I for additional details. |
About TriMas
TriMas designs, manufactures and supplies a broad range of innovative and high‑quality products for the consumer packaging, life sciences and industrial markets through its
|
Condensed Consolidated Balance Sheet (Dollars in thousands) |
||||||
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||||||
|
|
|
|
|
|
||
|
Assets |
|
(unaudited) |
|
|
||
|
Current assets: |
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
1,309,610 |
|
$ |
30,020 |
|
Receivables, net |
|
|
128,610 |
|
|
111,270 |
|
Inventories |
|
|
117,270 |
|
|
108,720 |
|
Prepaid expenses and other current assets |
|
|
34,450 |
|
|
36,380 |
|
Current assets, discontinued operations |
|
|
— |
|
|
176,280 |
|
Total current assets |
|
|
1,589,940 |
|
|
462,670 |
|
Property and equipment, net |
|
|
243,540 |
|
|
247,510 |
|
Operating lease right-of-use assets |
|
|
38,580 |
|
|
31,800 |
|
|
|
|
297,890 |
|
|
300,280 |
|
Other intangibles, net |
|
|
74,520 |
|
|
76,550 |
|
Deferred income taxes |
|
|
7,350 |
|
|
53,670 |
|
Other assets |
|
|
45,310 |
|
|
45,430 |
|
Non-current assets, discontinued operations |
|
|
— |
|
|
267,170 |
|
Total assets |
|
$ |
2,297,130 |
|
$ |
1,485,080 |
|
Liabilities and Shareholders' Equity |
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
||
|
Accounts payable |
|
$ |
267,170 |
|
$ |
72,280 |
|
Accrued liabilities |
|
|
53,160 |
|
|
59,640 |
|
Lease liabilities, current portion |
|
|
7,190 |
|
|
4,100 |
|
Current liabilities, discontinued operations |
|
|
— |
|
|
47,650 |
|
Total current liabilities |
|
|
327,520 |
|
|
183,670 |
|
Long-term debt, net |
|
|
396,620 |
|
|
469,170 |
|
Lease liabilities |
|
|
35,470 |
|
|
31,810 |
|
Deferred income taxes |
|
|
26,220 |
|
|
17,710 |
|
Other long-term liabilities |
|
|
61,490 |
|
|
65,840 |
|
Non-current liabilities, discontinued operations |
|
|
— |
|
|
11,290 |
|
Total liabilities |
|
|
847,320 |
|
|
779,490 |
|
Total shareholders' equity |
|
|
1,449,810 |
|
|
705,590 |
|
Total liabilities and shareholders' equity |
|
$ |
2,297,130 |
|
$ |
1,485,080 |
|
Consolidated Statement of Income (Unaudited - dollars in thousands, except per share amounts) |
||||||||
|
|
||||||||
|
|
|
Three months ended
|
||||||
|
|
|
|
2026 |
|
|
|
2025 |
|
|
Net sales |
|
$ |
168,280 |
|
|
$ |
152,460 |
|
|
Cost of sales |
|
|
(131,410 |
) |
|
|
(119,630 |
) |
|
Gross profit |
|
|
36,870 |
|
|
|
32,830 |
|
|
Selling, general and administrative expenses |
|
|
(29,990 |
) |
|
|
(30,970 |
) |
|
Net gain on dispositions of assets |
|
|
10 |
|
|
|
5,290 |
|
|
Operating profit |
|
|
6,890 |
|
|
|
7,150 |
|
|
Other expense, net: |
|
|
|
|
||||
|
Interest expense |
|
|
(5,240 |
) |
|
|
(4,520 |
) |
|
Other income (expense), net |
|
|
890 |
|
|
|
(40 |
) |
|
Other expense, net |
|
|
(4,350 |
) |
|
|
(4,560 |
) |
|
Income before income tax expense |
|
|
2,540 |
|
|
|
2,590 |
|
|
Income tax expense |
|
|
(54,300 |
) |
|
|
(650 |
) |
|
Income (loss) from continuing operations |
|
|
(51,760 |
) |
|
|
1,940 |
|
|
Income from discontinued operations, net of tax |
|
|
852,590 |
|
|
|
10,480 |
|
|
Net income |
|
$ |
800,830 |
|
|
$ |
12,420 |
|
|
Basic earnings (loss) per share: |
|
|
|
|
||||
|
Continuing operations |
|
$ |
(1.38 |
) |
|
$ |
0.05 |
|
|
Discontinued operations |
|
|
22.78 |
|
|
|
0.26 |
|
|
Net income per share |
|
$ |
21.40 |
|
|
$ |
0.31 |
|
|
Weighted average common shares—basic |
|
|
37,426,123 |
|
|
|
40,605,288 |
|
|
Diluted earnings (loss) per share: |
|
|
|
|
||||
|
Continuing operations |
|
$ |
(1.38 |
) |
|
$ |
0.05 |
|
|
Discontinued operations |
|
|
22.78 |
|
|
|
0.25 |
|
|
Net income per share |
|
$ |
21.40 |
|
|
$ |
0.30 |
|
|
Weighted average common shares—diluted |
|
|
37,426,123 |
|
|
|
40,969,299 |
|
|
Consolidated Statement of Cash Flow (Unaudited - dollars in thousands) |
||||||||
|
|
||||||||
|
|
|
Three months ended
|
||||||
|
|
|
|
2026 |
|
|
|
2025 |
|
|
Cash Flows from Operating Activities: |
|
|
|
|
||||
|
Income (loss) from continuing operations |
|
$ |
(51,760 |
) |
|
$ |
1,940 |
|
|
Income from discontinued operations |
|
|
852,590 |
|
|
|
10,480 |
|
|
Net income |
|
|
800,830 |
|
|
|
12,420 |
|
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities, net of acquisition impact: |
|
|
|
|
||||
|
Net gain on dispositions of assets |
|
|
(1,040,010 |
) |
|
|
(5,290 |
) |
|
Depreciation |
|
|
10,390 |
|
|
|
9,640 |
|
|
Amortization of intangible assets |
|
|
4,130 |
|
|
|
4,190 |
|
|
Amortization of debt issue costs |
|
|
240 |
|
|
|
240 |
|
|
Deferred income taxes |
|
|
53,770 |
|
|
|
1,970 |
|
|
Non-cash compensation expense |
|
|
3,070 |
|
|
|
2,990 |
|
|
Provision for losses on accounts receivable |
|
|
(70 |
) |
|
|
(780 |
) |
|
Increase in receivables |
|
|
(23,020 |
) |
|
|
(14,670 |
) |
|
Increase in inventories |
|
|
(16,560 |
) |
|
|
(4,610 |
) |
|
Decrease in prepaid expenses and other assets |
|
|
4,590 |
|
|
|
3,890 |
|
|
Increase in accounts payable and accrued liabilities |
|
|
182,800 |
|
|
|
1,060 |
|
|
Other operating activities |
|
|
460 |
|
|
|
(1,860 |
) |
|
Net cash provided by (used for) operating activities, net of acquisition impact |
|
|
(19,380 |
) |
|
|
9,190 |
|
|
Cash Flows from Investing Activities: |
|
|
|
|
||||
|
Capital expenditures |
|
|
(5,220 |
) |
|
|
(12,940 |
) |
|
Acquisition of business, net of cash acquired |
|
|
— |
|
|
|
(37,160 |
) |
|
Net proceeds from disposition of business, property and equipment |
|
|
1,436,530 |
|
|
|
20,490 |
|
|
Net cash provided by (used for) investing activities |
|
|
1,431,310 |
|
|
|
(29,610 |
) |
|
Cash Flows from Financing Activities: |
|
|
|
|
||||
|
Proceeds from borrowings on revolving credit facilities |
|
|
233,000 |
|
|
|
98,200 |
|
|
Repayments of borrowings on revolving credit facilities |
|
|
(305,730 |
) |
|
|
(62,930 |
) |
|
Debt financing fees |
|
|
— |
|
|
|
(1,260 |
) |
|
Payments to purchase common stock |
|
|
(54,530 |
) |
|
|
(460 |
) |
|
Shares surrendered upon exercise and vesting of equity awards to cover taxes |
|
|
(3,460 |
) |
|
|
(1,760 |
) |
|
Dividends paid |
|
|
(1,490 |
) |
|
|
(1,610 |
) |
|
Other financing activities |
|
|
(130 |
) |
|
|
(120 |
) |
|
Net cash provided by (used for) financing activities |
|
|
(132,340 |
) |
|
|
30,060 |
|
|
Cash and Cash Equivalents: |
|
|
|
|
||||
|
Increase for the period |
|
|
1,279,590 |
|
|
|
9,640 |
|
|
At beginning of period |
|
|
30,020 |
|
|
|
23,070 |
|
|
At end of period |
|
$ |
1,309,610 |
|
|
$ |
32,710 |
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
||||
|
Cash paid for interest |
|
$ |
1,500 |
|
|
$ |
760 |
|
|
Cash paid for taxes |
|
$ |
230 |
|
|
$ |
2,990 |
|
|
Non-cash property additions |
|
$ |
3,280 |
|
|
$ |
— |
|
Appendix I
|
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures Continuing Operations (Unaudited - dollars in thousands) |
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|
|
|
Three months ended
|
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|
|
|
|
2026 |
|
|
|
2025 |
|
|
Packaging |
|
|
|
|
||||
|
Net sales |
|
$ |
139,170 |
|
|
$ |
127,570 |
|
|
Operating profit |
|
$ |
14,550 |
|
|
$ |
17,240 |
|
|
Special Items to consider in evaluating operating profit: |
|
|
|
|
||||
|
Business restructuring and severance costs |
|
|
3,120 |
|
|
|
580 |
|
|
Adjusted operating profit |
|
$ |
17,670 |
|
|
$ |
17,820 |
|
|
|
|
|
|
|
||||
|
Specialty Products |
|
|
|
|
||||
|
Net sales |
|
$ |
29,110 |
|
|
$ |
24,890 |
|
|
Operating profit (loss) |
|
$ |
2,860 |
|
|
$ |
(1,150 |
) |
|
Special Items to consider in evaluating operating profit: |
|
|
|
|
||||
|
Business restructuring and severance costs |
|
|
— |
|
|
|
1,240 |
|
|
Adjusted operating profit |
|
$ |
2,860 |
|
|
$ |
90 |
|
|
|
|
|
|
|
||||
|
Corporate Expenses |
|
|
|
|
||||
|
Operating loss |
|
$ |
(10,520 |
) |
|
$ |
(8,940 |
) |
|
Special Items to consider in evaluating operating loss: |
|
|
|
|
||||
|
M&A diligence and transaction costs |
|
|
— |
|
|
|
300 |
|
|
System implementation costs |
|
|
1,220 |
|
|
|
920 |
|
|
Business restructuring and severance costs |
|
|
1,470 |
|
|
|
4,720 |
|
|
Gain on sale of |
|
|
— |
|
|
|
(5,300 |
) |
|
Adjusted operating loss |
|
$ |
(7,830 |
) |
|
$ |
(8,300 |
) |
|
|
|
|
|
|
||||
|
TriMas Continuing Operations |
|
|
|
|
||||
|
Net sales |
|
$ |
168,280 |
|
|
$ |
152,460 |
|
|
Operating profit |
|
$ |
6,890 |
|
|
$ |
7,150 |
|
|
Total Special Items to consider in evaluating operating profit |
|
|
5,810 |
|
|
|
2,460 |
|
|
Adjusted operating profit |
|
$ |
12,700 |
|
|
$ |
9,610 |
|
Appendix I
|
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures Continuing Operations (Unaudited - dollars in thousands, except per share amounts) |
||||||||
|
|
||||||||
|
|
|
Three months ended
|
||||||
|
|
|
|
2026 |
|
|
|
2025 |
|
|
Income (loss) from continuing operations, as reported |
|
$ |
(51,760 |
) |
|
$ |
1,940 |
|
|
Special Items to consider in evaluating quality of income from continuing operations: |
|
|
|
|
||||
|
Business restructuring and severance costs |
|
|
4,590 |
|
|
|
6,540 |
|
|
M&A diligence and transaction costs |
|
|
— |
|
|
|
300 |
|
|
System implementation costs |
|
|
1,220 |
|
|
|
920 |
|
|
Write-off of deferred financing fees |
|
|
— |
|
|
|
100 |
|
|
Non-cash deferred tax impact related to Aerospace divestiture |
|
|
53,900 |
|
|
|
— |
|
|
Gain on sale of |
|
|
— |
|
|
|
(5,300 |
) |
|
Amortization of acquisition-related intangible assets |
|
|
1,440 |
|
|
|
1,590 |
|
|
Non-cash compensation expense |
|
|
2,630 |
|
|
|
1,050 |
|
|
Income tax effect of net income adjustments(1) |
|
|
(3,060 |
) |
|
|
(1,200 |
) |
|
Adjusted income from continuing operations |
|
$ |
8,960 |
|
|
$ |
5,940 |
|
|
|
|
|
|
|
||||
|
|
|
Three months ended
|
||||||
|
|
|
|
2026 |
|
|
|
2025 |
|
|
Diluted earnings (loss) per share from continuing operations, as reported |
|
$ |
(1.38 |
) |
|
$ |
0.05 |
|
|
Dilutive impact (2) |
|
|
0.02 |
|
|
|
— |
|
|
Special Items to consider in evaluating quality of EPS from continuing operations: |
|
|
|
|
||||
|
Business restructuring and severance costs |
|
|
0.12 |
|
|
|
0.16 |
|
|
M&A diligence and transaction costs |
|
|
— |
|
|
|
0.01 |
|
|
System implementation costs |
|
|
0.03 |
|
|
|
0.02 |
|
|
Non-cash deferred tax impact related to Aerospace divestiture |
|
|
1.42 |
|
|
|
— |
|
|
Gain on sale of |
|
|
— |
|
|
|
(0.13 |
) |
|
Amortization of acquisition-related intangible assets |
|
|
0.04 |
|
|
|
0.04 |
|
|
Non-cash compensation expense |
|
|
0.07 |
|
|
|
0.03 |
|
|
Income tax effect of net income adjustments(1) |
|
|
(0.08 |
) |
|
|
(0.03 |
) |
|
Adjusted diluted EPS from continuing operations |
|
$ |
0.24 |
|
|
$ |
0.15 |
|
|
Weighted-average shares outstanding |
|
|
37,939,783 |
|
|
|
40,969,299 |
|
|
(1) |
Income tax effect of net income adjustments is calculated on an item-by-item basis, utilizing the statutory income tax rate in the jurisdiction where the adjustments occurred. For the three month periods ended |
|
|
(2) |
513,660 shares would have been dilutive to the computation of earnings per share in an income position for the three months ended |
Appendix I
|
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures Continuing Operations (Unaudited - dollars in thousands) |
||||||||||||||||||||||
|
|
||||||||||||||||||||||
|
|
|
Three months ended |
||||||||||||||||||||
|
|
|
2026 |
|
|
2025 |
|
||||||||||||||||
|
|
|
As reported |
|
Special Items |
|
As adjusted |
|
As reported |
|
Special Items |
|
As adjusted |
||||||||||
|
Net cash provided by (used for) operating activities |
|
$ |
(19,050 |
) |
|
$ |
5,340 |
|
$ |
(13,710 |
) |
|
$ |
6,990 |
|
|
$ |
4,390 |
|
$ |
11,380 |
|
|
Less: Capital expenditures |
|
|
(2,400 |
) |
|
|
— |
|
|
(2,400 |
) |
|
|
(10,450 |
) |
|
|
— |
|
|
(10,450 |
) |
|
Free Cash Flow |
|
$ |
(21,450 |
) |
|
$ |
5,340 |
|
$ |
(16,110 |
) |
|
$ |
(3,460 |
) |
|
$ |
4,390 |
|
$ |
930 |
|
|
|
|
|
|
|
|
|
||||
|
Long-term debt, net |
|
$ |
396,620 |
|
|
$ |
469,170 |
|
$ |
434,190 |
|
Less: Cash and cash equivalents |
|
|
1,309,610 |
|
|
|
30,020 |
|
|
32,710 |
|
Net Debt |
|
$ |
(912,990 |
) |
|
$ |
439,150 |
|
$ |
401,480 |
|
|
|
YOY Sales Growth % |
|||||||||||||
|
|
|
Organic |
|
Acquisitions |
|
Divestitures |
|
Foreign Exchange |
|
Total |
|||||
|
Q1 2026 vs. Q1 2025 |
|
|
|
|
|
|
|
|
|
|
|||||
|
Consolidated |
|
7.3 |
% |
|
— |
% |
|
(0.9 |
)% |
|
4.0 |
% |
|
10.4 |
% |
|
Packaging |
|
4.4 |
% |
|
— |
% |
|
— |
% |
|
4.7 |
% |
|
9.1 |
% |
|
Specialty Products |
|
22.6 |
% |
|
— |
% |
|
(5.6 |
)% |
|
— |
% |
|
17.0 |
% |
Appendix I
|
Reconciliation of GAAP to Non-GAAP Financial Measures Forecasted Diluted Earnings Per Share Guidance Continuing Operations (Unaudited - dollars per share) |
||||||||
|
|
||||||||
|
|
|
Twelve months ended |
||||||
|
|
|
|
||||||
|
|
|
Low |
|
High |
||||
|
Diluted earnings (loss) per share (GAAP) |
|
$ |
(0.34 |
) |
|
$ |
(0.14 |
) |
|
Pre-tax amortization of acquisition-related intangible assets(1) |
|
|
0.15 |
|
|
|
0.15 |
|
|
Income tax benefit on amortization of acquisition-related intangible assets |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
Pre-tax non-cash compensation expense |
|
|
0.27 |
|
|
|
0.27 |
|
|
Income tax benefit on non-cash compensation expense |
|
|
(0.07 |
) |
|
|
(0.07 |
) |
|
Impact of Special Items(2) |
|
|
1.53 |
|
|
|
1.53 |
|
|
Adjusted diluted earnings per share |
|
$ |
1.50 |
|
|
$ |
1.70 |
|
|
(1) |
These amounts relate to acquisitions completed as of |
|
|
(2) |
The Company is unable to provide forward-looking estimates of Special Items without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and the financial impact of such items and the periods in which such items may be recognized. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260430383075/en/
VP, Investor Relations, Communications & Sustainability
(248) 631-5506
sherry.lauderback@trimas.com
Source: TriMas
