TRIMAS CORP Q4 FY2025 earnings call

• Sharpened strategic focus, strengthened leadership team over past 8 months.
• Introduced new CFO Paul Swart with over 25 years of financial and operational leadership experience.
• Refreshed management approach, clarified roles and accountability, elevated decision-making speed and execution.
• Completed 100 customer interviews across 10 countries as part of Voice of the Customer initiative.
• Launched structured global operational excellence program rooted in Lean Six Sigma principles, initial launch in packaging business at two larger locations.
• Restructured 2026 incentive program to reinforce pay-per-performance culture.
• Continued progress toward divestiture of TriMAS Aerospace, on track to close mid to late March, expected to generate ~$1.2 billion in net after-tax proceeds.
• Repurchased over 3 million shares for ~$100 million and increased share repurchase authorization to $150 million.
• Implemented company-wide realignment in late January to streamline operations, expected to generate over $10 million of cost reductions in 2026 and more than $15 million annualized.
• Restructured commercial and operational model in packaging to break down silos, accelerate decision-making, and strengthen customer engagement.

Packaging: Fourth quarter sales up 5% year over year, organic sales up 2.4%, operating profit down ~5% with margin at 11.6%; full year organic growth 4%, operating profit $71 million with 13.3% margin; 2026 expected 3%-6% sales growth and margin improvement to 14%-15%. ### Specialty Product: Q4 Norris Cylinder sales up nearly 14% but total segment sales down due to aero engine divestiture, operating profit and margin doubled; full year Norris Cylinder sales growth 9.5%, operating profit $5.4 million with 4.9% margin; 2026 expected 3%-6% sales growth and operating profit margins 8%-10%. ### Aerospace: Now reported as discontinued operations, fourth quarter sales up 29%, operating profit up >50%; full year sales up nearly 35%, operating profit margin improved >600 basis points

• 2026 expected sales growth of 3%-6% from 2025 baseline of ~$646 million.
• Expected more than 300 basis points of adjusted operating margin improvement driven by operational execution and cost-out initiatives.
• First quarter 2026 expected to be lowest quarter for margins and earnings per share due to scale of cost-out actions and timing, but year-over-year improvements expected in each quarter as savings build.
• Full-year earnings per share guidance to be provided on Q1 2026 earnings call once Aerospace sale closes.
• 2026 Q1 expected sales to land at lower end of full-year range, adjusted operating margin to improve by just over 100 basis points vs Q1 2025 but more than 400 basis points sequentially vs Q4 2025.

• Regulatory processes related to the divestiture of TriMAS Aerospace could potentially derail the closing timeline.
• Macroeconomic challenges could impact sales and margins in various segments.
• Execution of cost-out and operational improvement initiatives may not proceed as planned, affecting margin improvement and financial results.

Q: How to think about the cadence of margin improvement beyond the first quarter?

A: There's increased ramping savings from $10 million cost savings actions and other initiatives. Q2 and Q3 are typically highest sales quarters, expect increase from Q1 to Q2 and margin improvement, Q4 likely step down in sales with margin decline vs Q3 but still higher than Q1.

Q: How to bridge margin improvement in packaging between cost-out efficiencies and mix/market demand?

A: Some improvement from consolidating organizational efforts and operational improvements. Q4 had tooling sales headwinds but laying groundwork for 2026 initiatives, balanced between cost savings and normal product sales vs tooling sales.

Q: Aggressiveness on share repurchase authorization and potential acquisitions pipeline?

A: Need to get through Aerospace divestiture, will be more specific on outlook in Q1 call. Share buyback clarity to come, looking at life science and higher value-added areas for acquisitions but no specific details yet.

Q: Anything to derail Aerospace deal closing to Q2?

A: Regulatory processes are normal, no known issues to change expected back half of March close date.

Q: Particular end markets or geographies outperforming in packaging in 2026?

A: Optimistic about life sciences, industrials (due to changing regulations), personal care (good global growth), and food and beverage (expected recovery with leading expertise in Europe around beverage technology changes).