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Trimas (TRS)
NASDAQ:TRS
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Trimas
(NASDAQ:TRS)
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Rating:62Neutral
Price Target:
$40.00
▲(11.08% Upside)
Action:ReiteratedDate:02/27/26
The score is held back primarily by middling financial performance—especially weak cash conversion and pressured profitability—despite a manageable balance sheet. Technicals are supportive with price above key moving averages and positive MACD. Valuation is a drag due to a high P/E and low yield. The latest earnings call was a meaningful positive, driven by margin-improvement guidance and the transformative Aerospace divestiture that strengthens capital flexibility.
Positive Factors
Large divestiture proceeds & capital flexibility
The ~$1.2B net proceeds represent a durable shift in capital structure and optionality: ability to pay down revolver borrowings, hold significant interest-bearing cash, and pursue M&A or reinvestment. This materially reduces leverage risk and funds multi-quarter strategic initiatives.
Multi-quarter margin and sales guidance
Firm guidance for 3–6% sales growth and 300+ bps margin expansion backed by concrete $10M–$15M+ annualized cost actions implies structural operational recovery. If executed, these levers sustainably improve profitability and cash generation over several quarters rather than a one-off uptick.
Stabilized Packaging business
Packaging provides a steady, higher-margin core with mid-single-digit organic growth and mid-teens margin potential. This segment's scale and margin stability underpin recurring cash flows and reduce company-level revenue volatility, supporting durable earnings as Aerospace is exited.
Negative Factors
Weak cash conversion
Consistently sub‑par cash conversion means reported earnings have not reliably converted to free cash flow. This structural weakness constrains reinvestment, makes sustained buybacks or M&A riskier, and increases sensitivity to working-capital swings over coming quarters.
Profitability pressure and compressed margins
Material margin compression and low ROE reflect persistent mix, cost and pricing pressures. Restoring structural profitability will require consistent execution of cost, pricing, and mix improvements over multiple quarters; absent sustained progress, returns may remain muted.
Post-divestiture run-rate underperformance
After Aerospace is sold, the stand-alone company shows a lower-margin profile materially below management's targets. This structural underperformance means the business will need significant operational improvements or strategic reinvestment to sustainably reach target margins and justify capital deployment.
Trimas (TRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.48B
Dividend Yield0.45%
Average Volume (3M)357.81K
Price to Earnings (P/E)33.8
Beta (1Y)0.79
Revenue Growth11.83%
EPS Growth67.28%
CountryUS
Employees3,900
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)0.40
Shares Outstanding40,645,670
10 Day Avg. Volume402,005
30 Day Avg. Volume357,805
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00222
P/FCF Ratio0.02
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.01
Enterprise Value/Ebitda0.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.22
Revenue Forecast (FY)$712.96M
Trimas Business Overview & Revenue Model
Company DescriptionTriMas Corporation designs, develops, manufactures, and sells products for consumer products, aerospace, and industrial markets worldwide. It operates through three segments: Packaging, Aerospace, and Specialty Products. The Packaging segment offers dispensing products, such as foaming and sanitizer pumps, lotion and hand soap pumps, beverage dispensers, perfume sprayers, and nasal and trigger sprayers; polymeric and steel caps and closures comprising food lids, flip-top and beverage closures, child resistance caps, drum and pail closures, flexible spouts, and agricultural closures; polymeric jar products; integrated dispensers; bag-in-box products; aseptic closures; industrial closures and flex spouts; custom injection molded components and devices; various injection molded products; and single-bodied and assembled caps and closures under the Rieke, Taplast, Affaba & Ferrari, Stolz, Omega, and Rapak brands. The Aerospace segment provides fasteners, collars, blind bolts, rivets, ducting, and connectors for air management systems, and machined parts and components to original equipment manufacturers, supply chain distributors, MRO/aftermarket providers, and tier one suppliers; and military and defense aerospace applications and platforms under the Monogram Aerospace Fasteners, Allfast Fastening Systems, Mac Fasteners, TFI Aerospace, RSA Engineered Products, and Martinic Engineering brands. The Specialty Products segment offers steel cylinders for use in the transportation, storage, and dispensing of compressed gases under the Norris Cylinder brand; natural gas powered wellhead engines, compressors, and replacement parts for oil and natural gas production, and other industrial and commercial markets under the Arrow brand; and spare parts for various industrial engines. The company sells its products through a direct sales force, third-party agents, and distributors. TriMas Corporation was incorporated in 1986 and is headquartered in Bloomfield Hills, Michigan.
How the Company Makes MoneyTrimas generates revenue through multiple streams primarily by selling its manufactured products to various industries. Key revenue streams include the sale of closure systems used in packaging for food, beverages, and personal care products, as well as the supply of specialized components for the aerospace sector. The company also benefits from long-term partnerships with major clients, which provide a stable demand for its offerings. Additionally, Trimas invests in research and development to innovate and improve its product lines, thereby increasing market competitiveness and driving sales growth. The company's operational efficiency and strategic acquisitions further enhance its profitability.
Trimas Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call communicated a positive strategic inflection: strong top-line growth, margin expansion, substantial cash generation, meaningful operational improvements and a transformative pending $1.45 billion Aerospace divestiture that provides significant capital flexibility. Management outlined concrete cost-savings, commercial and operational initiatives and repurchased shares while maintaining disciplined priorities for capital deployment. Near-term headwinds include a weaker Q4 packaging mix, a modest EPS drag in Q4 from incentive timing and FX, a temporary increase in leverage to fund buybacks, and expected low margins in Q1 2026 as cost actions ramp. Overall, the company projects multi-quarter margin improvement and growth for the remaining businesses, and highlights outweigh the short-term execution and comparability challenges.Q4-2025 Updates
Positive Updates
Pending Divestiture of TriMas Aerospace and Proceeds
TriMas announced a pending sale of its Aerospace business for approximately $1.45 billion in cash, expected to generate about $1.2 billion in net after-tax proceeds upon close (mid- to late-March). Management plans to use proceeds to pay down revolver borrowings, hold ~ $1.1 billion in interest-bearing accounts short-term, and redeploy capital to buybacks, M&A and reinvestment.
Strong Full-Year Revenue Growth
Total company net sales for FY2025 were just over $1.0 billion, up 12.7% year-over-year. Fourth quarter net sales were $256 million, up 12.5% versus prior year, with organic segment increases of just over 9% in Q4.
Meaningful EPS and Profitability Improvement
Adjusted EPS for FY2025 was $2.09, up $0.44 (27%) year-over-year and toward the upper end of guidance ($2.02–$2.12). Adjusted segment operating profit for the year grew more than 30% to $149 million, a 200 basis point increase year-over-year.
Significant Cash Generation and Share Repurchases
Free cash flow was $43 million in Q4 and $87 million for FY2025—both more than double prior-year amounts. The company repurchased over 3 million shares for approximately $100 million in 2025 and increased its remaining buyback authorization back to $150 million.
Aerospace Business Delivered Exceptional Performance
Aerospace (now discontinued) grew Q4 sales 29% year-over-year and full-year sales nearly 35%, with operating profit up more than 50% in Q4 and a ~600 basis point improvement in full-year operating margin—key driver of valuation in the pending sale.
Operational Transformation Initiatives Underway
Leadership executed a management refresh, completed ~100 customer interviews across 10 countries (voice of the customer), launched a global operational excellence program (Lean Six Sigma), restructured the 2026 incentive program, and implemented a company realignment to simplify structure and improve execution.
Cost Reduction Targets and Margin Improvement Plans
Completed and planned cost actions are expected to generate over $10 million of cost reductions in 2026 and more than $15 million on an annualized basis. Company expects 3+ percentage point adjusted operating margin improvement for continuing operations in 2026.
Packaging Segment Stabilized with Positive Outlook
Packaging delivered full-year organic growth of 4% with operating profit of $71 million and a 13.3% margin. Guidance for 2026 calls for 3%–6% sales growth and margin expansion to 14%–15%.
Specialty Products (Norris Cylinder) Showing Recovery
Norris Cylinder grew Q4 sales nearly 14% YoY and FY sales 9.5%, with operating profit nearly doubling and FY margin improving to 4.9%. Outlook for 2026 is 3%–6% sales growth and margins of 8%–10%.
Improved Working Capital and Liquidity Positioning
Net debt increased modestly by $64 million to $439 million in 2025 while net leverage remained at 2.6x year-end; management plans to pay down revolver borrowings from Aerospace proceeds and expects short-term cash interest income potential (~$30 million over three quarters) on redeployed proceeds.
Negative Updates
Q4 EPS Pressure from Compensation and FX
Adjusted EPS declined by $0.03 year-over-year in Q4 despite higher operating performance, due to timing and higher levels of incentive compensation and unfavorable foreign currency exchange effects in 2025 versus 2024.
Packaging Q4 Profitability Decline and Mix Headwind
Packaging Q4 operating profit was down about 5% year-over-year with margins at 11.6%, below prior-year levels and below the first 9 months of 2025, driven by less favorable mix (including higher tooling sales) and typical seasonal patterns; food & beverage (flexibles and closures) showed softer demand.
Temporary Increase in Leverage to Fund Buybacks
Net leverage rose from 2.2x in Q3 to 2.6x at year-end as management used revolver borrowings (~$70 million outstanding) to finance share repurchases, increasing short-term leverage ahead of the Aerospace sale.
Post-Divestiture Run-Rate Shows Underperformance
Continuing TriMas (post-Aerospace) reported 2025 net sales of $645 million, operating profit of $34 million, adjusted EBITDA of $79 million and EPS of $0.55. Management noted a 12% adjusted EBITDA margin that is 600–800 basis points below where the businesses can and should operate, indicating significant improvement is required to reach target margins.
Q1 2026 Expected to be Weakest Quarter for Margins
Management expects Q1 2026 to be the lowest quarter for margins and earnings per share as cost-out actions ramp; although Q1 sales are expected to still show 3%–6% growth, margin improvement in Q1 is more limited.
Divestiture Comparison Headwinds on Specialty Segment
The Arrow Engine divestiture (part of TriMas for all of 2024 but only 1 month in 2025) reduced reported Specialty Products sales and profit year-over-year, masking underlying Norris Cylinder improvements and complicating comparability.
Some End-Market Uncertainty, Particularly Food & Beverage
Management noted persistent macro headwinds, tariffs and demand uncertainty across several end markets; specifically, food & beverage demand (flexibles and closures) was softer in Q4 and recovery expectations are low-to-mid single digits.
Regulatory/Timing Risk on Closing Although No Known Delays
Deal close timing depends on regulatory processes; management expects close in mid- to late-March but acknowledged external regulatory approvals remain a factor outside company control (no current indicators of delay).
Company Guidance
Management guided that continuing TriMas (post‑Aerospace) expects 2026 sales growth of 3–6% from the ~$646M 2025 baseline, with more than 300 basis points of adjusted operating‑margin improvement and at least $10M of corporate cash‑expense savings in 2026 (>$15M annualized); Q1 is expected to show 3–6% sales growth with adjusted operating margin improving just over 100 bps year‑over‑year (and sequentially >400 bps vs. Q4 2025). Packaging is forecast to grow 3–6% with margins of 14–15% (FY25 packaging: organic +4%, operating profit $71M, margin 13.3%; Q4: sales $— $15M op profit, 11.6% margin, sales +5% YoY), and Specialty Products (Norris) is expected to grow 3–6% with 8–10% margins (FY25 Norris: sales +9.5%, op profit $5.4M, margin 4.9%; Q4 sales ~+14%, margin 6.5%). The Aerospace divestiture (purchase price ~ $1.45B; ~ $1.2B net after‑tax proceeds) is expected to close mid‑to‑late March; ~ $1.1B of proceeds would be parked in interest‑bearing accounts (potentially earning up to ~$30M over the last three quarters of the year), the company has repurchased >3M shares for ~ $100M, and the Board re‑authorized up to $150M of buybacks; management will provide full‑year EPS guidance on the Q1 call after close (FY25 adjusted EPS was $2.09; continuing‑business EPS $0.55; continuing net sales $645M; adjusted EBITDA $79M, ~12% margin).Trimas Financial Statement Overview
Summary
Mid-range fundamentals: the balance sheet appears manageable (debt-to-equity ~0.65–0.71 in 2020–2024), but profitability weakened into 2024 with notable margin compression and modest ROE (~3.6%). Cash flow quality is a key drag, with operating cash flow and free cash flow generally not matching reported earnings (OCF/NI < 1.0 in 2021–2024; weak FCF/NI in 2024). The latest-year (2025) financial statement figures are flagged as anomalous, reducing confidence in recent trend signals.Income Statement
Annual results show modest revenue growth in 2023–2024 (~1% to ~4%), but profitability has weakened versus prior years: net margin fell from ~7.5% (2022) to ~2.6% (2024) and operating margins also compressed. The 2020 loss stands out as a prior-cycle weakness. The 2025 annual figures appear highly inconsistent versus the rest of the history (orders-of-magnitude jump and an EBIT margin shown as 0%), which reduces confidence in the latest-year signal.54
Neutral
Balance Sheet
Leverage looks manageable in the core historical period, with debt-to-equity mostly in the ~0.65–0.71 range (2020–2024), suggesting a balanced capital structure for the industry. Returns on equity improved from negative in 2020 to positive thereafter, but remain relatively modest in 2024 (~3.6%), reflecting the earnings pressure. The 2025 annual balance sheet values are also unusually large versus prior years, so the trend signal is best read from 2020–2024.63
Positive
Cash Flow
Cash generation has been volatile. Operating cash flow coverage (operating cash flow relative to net income) is consistently below 1.0 across 2021–2024 (~0.40–0.87), and free cash flow relative to net income is also generally low (notably ~0.20 in 2024), indicating profits are not translating cleanly into cash. Free cash flow declined sharply in 2024 (negative growth), following a stronger 2021 and a rebound in 2023.48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 645.72B | 925.01M | 893.55M | 883.83M | 857.11M |
| Gross Profit | 138.16B | 185.35M | 194.86M | 194.31M | 202.43M |
| EBITDA | 41.30B | 114.52M | 124.10M | 155.00M | 137.07M |
| Net Income | 120.14B | 24.25M | 40.36M | 66.17M | 57.31M |
Balance Sheet | |||||
| Total Assets | 1.49T | 1.32B | 1.34B | 1.30B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 30.02B | 23.07M | 34.89M | 112.09M | 140.74M |
| Total Debt | 35.91B | 442.84M | 443.25M | 444.02M | 445.72M |
| Total Liabilities | 779.49B | 656.88M | 658.71M | 653.17M | 672.79M |
| Stockholders Equity | 705.59B | 667.30M | 682.95M | 651.83M | 630.85M |
Cash Flow | |||||
| Free Cash Flow | 69.10B | 12.82M | 33.97M | 26.61M | 89.16M |
| Operating Cash Flow | 117.45B | 63.78M | 88.16M | 72.57M | 134.22M |
| Investing Cash Flow | -64.05B | -46.96M | -134.42M | -55.04M | -79.18M |
| Financing Cash Flow | -46.45B | -28.64M | -30.94M | -46.18M | 11.75M |
Trimas Technical Analysis
Positive
36.01
Price Trends
35.35
Positive
35.07
Positive
33.68
Positive
Market Momentum
0.54
Negative
58.69
Neutral
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRS, the sentiment is Positive. The current price of 36.01 is above the 20-day moving average (MA) of 35.90, above the 50-day MA of 35.35, and above the 200-day MA of 33.68, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRS.
Trimas Risk Analysis
Trimas disclosed 26 risk factors in its most recent earnings report. Trimas reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trimas Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $6.18B | 15.59 | 40.42% | 1.94% | -1.22% | -0.76% | |
71 Outperform | $5.63B | 14.34 | 20.01% | 4.33% | 8.31% | -99.39% | |
69 Neutral | $848.04M | 30.45 | 9.92% | 2.80% | 0.26% | 78.05% | |
62 Neutral | $1.48B | 33.84 | 6.26% | 0.45% | 11.83% | 67.28% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $2.81B | ― | ― | 9.90% | 10.34% | 87.86% | |
49 Neutral | $2.26B | -15.23 | -10.87% | ― | -2.82% | 65.31% |
* Consumer Cyclical Sector Average
TRS
Trimas
38.00
17.59
86.20%
MYE
Myers Industries
22.65
12.08
114.20%
OI
O-I Glass
13.12
1.65
14.39%
SEE
Sealed Air
41.91
8.53
25.55%
SON
Sonoco Products
55.88
10.21
22.34%
AMBP
Ardagh Metal Packaging
4.61
2.06
81.00%
Trimas Corporate Events
Business Operations and StrategyExecutive/Board Changes
TriMas Appoints Paul Swart as New CFO
Positive
Dec 4, 2025
On December 4, 2025, TriMas Corporation announced the appointment of Paul Swart as Chief Financial Officer, effective December 15, 2025. Swart, who has over 25 years of experience in strategic leadership and financial oversight, will succeed Teresa M. Finley, who served as Interim CFO since March 2025. His extensive background includes roles at RealTruck and a previous 20-year tenure at TriMas, where he held various financial and accounting positions. This appointment is expected to bolster TriMas’s operational execution and strategic growth, leveraging Swart’s expertise in finance, operations, and strategy.
The most recent analyst rating on (TRS) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on Trimas stock, see the TRS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.