TriMas (NASDAQ:TRS) executives told investors the company is nearing a major portfolio shift and expects 2026 to mark an important first step in a multi-year margin improvement effort, following what management described as a “transitional year” in 2025.
On the company’s fourth-quarter and full-year 2025 earnings call, President and CEO Thomas Snyder and Chief Financial Officer Paul Swart reviewed results that management said came in line with expectations, while also outlining progress on the pending divestiture of TriMas Aerospace and a broad set of operational and organizational changes.
Strategic reset and planned Aerospace divestiture
A central theme of the call was the pending sale of TriMas Aerospace, which TriMas announced in early December. Snyder said the transaction remains on track to close in mid to late March, subject to regulatory processes. The purchase price is expected to be approximately $1.45 billion in cash, which the company expects will result in about $1.2 billion of net after-tax proceeds. With the pending sale, Aerospace is now reported as discontinued operations beginning with the quarter’s results, and TriMas said it has recast certain historical periods for comparability, with details expected in a Form 8-K filing.
Following the close, TriMas expects to operate with two reporting segments: Packaging and Specialty Products.
2025 financial performance: sales growth and margin expansion
Swart said TriMas delivered fourth-quarter total company net sales of $256 million, up 12.5% from the prior year. He attributed the increase to organic gains in each segment totaling just over 9%, plus a contribution from a 2025 Aerospace acquisition in Germany and modest favorable currency effects. Those positives were partially offset by the impact of the Arrow Engine divestiture, which was part of TriMas throughout 2024 but only one month in 2025.
Fourth-quarter segment operating profit increased more than 21% to $33 million, with margins expanding 90 basis points on higher sales and “continued operational execution.” However, Swart said adjusted earnings per share declined $0.03 year over year due to the timing and higher levels of incentive compensation as well as foreign exchange effects in 2025 versus 2024.
For the full year, TriMas reported total company net sales of just over $1 billion, up 12.7% year over year. Swart said organic increases occurred across segments, “most notably in aerospace.” He noted the February Aerospace acquisition in Germany contributed $23 million of sales, more than offsetting the $18 million impact from the Arrow Engine divestiture.
Adjusted segment operating profit grew more than 30% to $149 million, a 200 basis point improvement, driven by higher sales and operational improvements. Adjusted EPS rose $0.44, or 27%, to $2.09—toward the upper end of the company’s previously raised guidance range of $2.02 to $2.12.
Cash flow, leverage, and capital allocation priorities
Swart said TriMas generated fourth-quarter free cash flow of $43 million and full-year free cash flow of $87 million, with both figures more than double the prior-year periods. He credited stronger operating performance and disciplined working capital management.
That cash generation supported multiple uses in 2025, including the $38 million purchase price for the Aerospace acquisition in Germany and more than $100 million of share repurchases. Net debt increased by $64 million to $439 million, Swart said.
Since announcing the Aerospace divestiture, TriMas repurchased more than 3 million shares for just over $100 million, reducing year-end shares outstanding to 37.6 million. Swart said the company used “a measured amount of net leverage” ahead of the divestiture proceeds, viewing repurchases as attractive at those valuation levels.
The company also increased its remaining share repurchase authorization back to $150 million. Snyder said the board will continue to evaluate potential increases, and management expects to repurchase additional shares while planning to pay down revolver borrowings associated with prior buybacks.
At year-end, TriMas had $400 million of 4.125% bonds due 2029 and about $70 million of revolving borrowings. Net leverage was 2.6x, flat with the prior year-end but higher than 2.2x in the third quarter due to the revolver financing of repurchases.
Upon closing of the Aerospace sale, Swart said TriMas plans to pay down any revolver amounts outstanding and invest the remaining approximately $1.1 billion in “high-quality interest-bearing accounts” while awaiting redeployment. Assuming a late-March close, he estimated the cash balance could generate up to $30 million of cash interest over the final three quarters of the year, depending on timing, redeployment, and earned rates.
Segment results and 2026 expectations for the continuing business
In Packaging, Swart said fourth-quarter sales increased 5% year over year, with organic sales up 2.4% due to strength in industrial and life sciences products, partially offset by softer demand in food and beverage applications—particularly flexibles and closures. Fourth-quarter operating profit was $15 million, down about 5%, and margin was 11.6%, reflecting less favorable mix and a typical seasonal pattern.
For the full year, Packaging delivered 4% organic growth and held margins nearly flat, with operating profit of $71 million and a 13.3% margin. Swart said management viewed that as a solid result given macro headwinds, tariffs, and demand uncertainty across end markets.
Looking ahead, the company expects Packaging in 2026 to deliver:
- Sales growth: 3% to 6%
- Operating margin: 14% to 15%
Swart said the expected improvement reflects ramping cost-out actions and continued execution, while first-quarter results are expected to be at the lower end of the full-year ranges.
In Specialty Products, TriMas said Norris Cylinder is the remaining business following the Arrow Engine divestiture, and that its performance is “less visible” in segment comparisons. In the fourth quarter, Norris posted nearly 14% sales growth, though total segment sales declined 1.4% due to the divestiture. Segment profitability improved meaningfully, with operating profit and margin doubling year over year to a 6.5% margin, driven by Norris’s prior cost restructuring actions.
For the full year, Norris delivered 9.5% sales growth and nearly doubled operating profit, resulting in Specialty Products operating profit of $5.4 million and a 4.9% margin. For 2026, TriMas expects Specialty Products to deliver 3% to 6% sales growth and operating margins of 8% to 10%, supported by stronger intake, “Made in the USA” positioning, and leverage from prior restructuring actions.
Management also provided a view of the continuing business after Aerospace. Swart said “remaining TriMas” in 2025 generated $645 million of net sales, $34 million of operating profit, adjusted EBITDA of $79 million, and EPS of $0.55. He said TriMas operated at a 12% adjusted EBITDA margin and believes the current set of businesses can improve by 600 to 800 basis points over the long term, even before any reinvestment of Aerospace proceeds.
Cost reduction program and margin cadence
Snyder highlighted several operational initiatives, including approximately 100 customer interviews across 10 countries as part of a Voice of the Customer program and the launch of a global operational excellence program rooted in Lean Six Sigma principles. The operational excellence program began within the Packaging business at two larger locations and is expected to roll out to more sites in 2026.
The company also implemented a company-wide realignment at the end of January to streamline operations and integrate certain corporate and business functions. Snyder said savings from initiatives completed are expected to ramp through 2026, generating more than $10 million of cost reductions in 2026 and more than $15 million on an annualized basis. He also said TriMas restructured its 2026 incentive program to reinforce a “pay-for-performance” culture.
On the question-and-answer portion of the call, Swart described the expected cadence of margin improvement in 2026. He said cost savings will ramp through the year and noted that the second and third quarters tend to be the company’s highest sales quarters, with a typical step-down in sales in the fourth quarter. He said TriMas would expect margin improvement from Q1 to Q2 and from Q2 to Q3, followed by a likely decline in Q4 versus Q3 that would still leave Q4 margins “significantly higher than Q1.”
Snyder also addressed Packaging margins, noting that fourth-quarter results faced headwinds from mix, including higher tooling sales that carry lower conversion than product sales. He said the tooling activity supports initiatives expected to come to market in 2026 and suggested the expected margin improvement is “pretty balanced” between cost savings actions and a return toward a more typical product-versus-tooling mix.
For 2026, Snyder said TriMas expects 3% to 6% sales growth off a 2025 baseline of approximately $646 million for continuing operations, and more than 300 basis points of adjusted operating margin improvement. He said the first quarter is expected to be the lowest quarter for margins and EPS due to the timing of cost actions reaching full run rates. He added that the company’s expectations do not include any redeployment of Aerospace proceeds and that TriMas plans to provide full-year EPS guidance on its first-quarter 2026 call in April, after the Aerospace sale closes.
About TriMas (NASDAQ:TRS)
TriMas Corporation is a diversified industrial company headquartered in Bloomfield Hills, Michigan. Established in 1980, TriMas has built a global reputation for designing and manufacturing specialized products that serve a wide array of end markets. The company operates through multiple segments, each focused on high-demand niches where engineered solutions and rigorous quality standards are essential.
The Packaging segment supplies closures, dispensing systems and related components for the personal care, household chemicals, food and beverage, and pharmaceutical markets.
