TRIMAS CORP Q1 FY2026 earnings call

• Successfully closed divestiture of TriMass Aerospace on March 16th, generating over $1.2 billion of net after-tax proceeds and strengthening balance sheet. • Repurchased nearly 1.5 million shares in first quarter, total since aerospace divestiture announcement ~4.5 million shares. • Priorities: investing in organic growth, strengthening core capabilities, pursuing targeted acquisitions in packaging and life sciences. • Intensified focus on operational improvements, including plans to consolidate Atkins, Arkansas packaging facility to generate additional savings. • Monitoring geopolitical developments and managing potential impacts on operations and supply chains.

Packaging segment: First quarter net sales increased 9.1% year over year to $139.2 million. Operating profit was $17.7 million. Specialty product segment: Net sales increased 17% to $29.1 million compared to $24.9 million a year ago. Operating profit improved from $100,000 in Q1 of 2025 to $2.9 million, with operating profit margin increasing to 9.8%.

• Reaffirm full year 2026 sales growth of 3% to 6% based on $645.7 million revenue base. • Anticipate more than 300 basis points of operating profit margin improvement. • Full year 2026 adjusted diluted earnings per share guidance in range of $1.50 to $1.70. • Outlook assumes ~$9 million of interest income per remaining quarter, interest expense $20 - $22 million, reduction in corporate cash expense ~$10 million year-over-year, effective tax rate 27 - 29%. • Expect improvement in sales, earnings, and adjusted earnings per share each quarter of 2026 compared to prior year, sequential increases in earnings in Q2 and Q3.

• Geopolitical developments, including conditions in the Middle East, and potential impacts on operations and supply chains.

Q: Can you talk about price cost expectations within packaging and remind us what the typical lag versus commodity prices is before it flows through to the P&L?

A: There's a bit of lag on resin cost pass-through. Majority of business under contract with cost recovery language. Varied term timings. Anticipate not a lot of impact overall, but possible headwind in quarter with delay moving from Q2 to Q3. From full year perspective, feel good about price over cost recovery.

Q: How should we think about the cadence of improvement within packaging segment through the year?

A: Expected Q1 to be lowest from margin perspective, expected to increase sequentially. Other actions taken sufficient to see escalation into next two quarters, Q4 naturally falls back a bit but in line with full year guidance.

Q: Give more detail on MIPS impacts from tooling revenue within life sciences and if we should see that in coming quarters?

A: Had a tooling sale for a program with low margin, not inherent in Q1 guidance, pressured margins in Q1. No significant tooling sale forecasted for remainder of year, but it's a leading indicator of future sales improvements.