TRIMAS CORPTRS
TRIMAS CORP Segments Disclosure
Segment Information
__________________________
__________________________
The Company defines its segments consistent with how internally reported financial information is regularly reviewed by the chief operating decision maker to analyze financial performance, make decisions, and allocate resources. TriMas reports its operations in three segments: Packaging, Aerospace and Specialty Products. Each of these segments has discrete financial information that is regularly evaluated by . The chief operating decision maker uses segment adjusted operating profit when assessing segment performance, determining resource and capital allocation and developing overall strategic direction of the Company. The chief operating decision maker analyzes segment adjusted operating profit on a monthly basis by comparing actual results to forecasted and budgeted expectations to assess performance. Segment adjusted operating profit is also used in compensation related decision-making under certain employee incentive programs. Segment adjusted operating profit is defined as operating profit excluding Special Items. Special Items include: realignment and severance costs; purchase accounting charges related to the step-up of inventory to fair value; third party costs related to the labor union strike; mergers, acquisitions, diligence and transaction costs; and impairment charges.
Within each of the Company's reportable segments, there are no individual products or product families for which reported net sales accounted for more than 10% of the Company's consolidated net sales. See below for more information regarding the types of products and services provided within each reportable segment:
Packaging – TriMas' Packaging segment consists primarily of the Rieke, Affaba & Ferrari, Taplast, Rapak, Plastic Srl, Aarts Packaging brands, which are also marketed under the TriMas Packaging brand, as well as the Intertech and Omega brands, which are also marketed under the TriMas Life Sciences brand. TriMas' Packaging business develops and manufactures a broad array of dispensing products (such as foaming pumps, lotion, hand soap and sanitizer pumps, beverage dispensers, perfume sprayers, nasal sprayers and trigger sprayers), polymeric and steel caps and closures (such as food lids, flip-top closures, child resistant caps, beverage closures, fragrance and cosmetic caps, drum and pail closures, and flexible spouts), polymeric jar products, fully integrated dispensers for fill-ready bag-in-box applications, and consumable vascular delivery and diagnostic test components, all for a variety of consumer products submarkets including, but not limited to, beauty and personal care, food and beverage, home care, and life sciences, including, but not limited to, pharmaceutical, nutraceutical, and medical, as well as industrial markets (including agricultural).
Aerospace – TriMas' Aerospace segment includes the Monogram Aerospace Fasteners, Allfast Fastening Systems, Mac Fasteners, TFI Aerospace, RSA Engineered Products, Martinic Engineering, and Weldmac Manufacturing Company brands, which are also marketed under the TriMas Aerospace brand. TriMas' Aerospace business develops, qualifies and manufactures highly-engineered, precision fasteners, tubular products and assemblies for fluid conveyance, and machined products and assemblies to serve the aerospace and defense market.
Specialty Products – TriMas' Specialty Products segment, which includes the Norris Cylinder and Arrow Engine brands, designs, manufactures and distributes highly-engineered steel cylinders for use within industrial and aerospace markets, natural gas-fired engines for remote power generation applications and compression systems for use within the North American industrial oil and gas markets.
Corporate consists of our corporate office and related corporate activities. Corporate expenses primarily include compensation, benefits, professional services, information technology and other administrative costs. Corporate assets consist primarily of cash and cash equivalents, unallocated deferred tax assets and prepaid assets. Corporate expenses and assets reconcile reportable segment information to the consolidated totals.
Segment activity is as follows (dollars in thousands):
| Packaging | Aerospace | Specialty Products | Total | |||||||||||||||||||||||
| As of December 31, 2024 | ||||||||||||||||||||||||||
| Net sales | $ | 512,320 | $ | 294,210 | $ | 118,480 | $ | 925,010 | ||||||||||||||||||
Adjusted cost of sales (a) | (388,010) | (222,680) | (104,240) | |||||||||||||||||||||||
Adjusted selling, general and administrative expenses (b) | (54,200) | (34,310) | (7,790) | |||||||||||||||||||||||
Other segment items (c) | 1,100 | (20) | (90) | |||||||||||||||||||||||
| Segment adjusted operating profit | $ | 71,210 | $ | 37,200 | $ | 6,360 | $ | 114,770 | ||||||||||||||||||
Corporate (d) | (52,680) | |||||||||||||||||||||||||
| Third-party and other costs incurred related to strike | (3,390) | |||||||||||||||||||||||||
| Realignment and severance costs | (2,990) | |||||||||||||||||||||||||
| Accelerated depreciation | (8,230) | |||||||||||||||||||||||||
| Impairment of indefinite-lived intangible assets | (230) | |||||||||||||||||||||||||
| Mergers, acquisitions, diligence and transaction costs | (60) | |||||||||||||||||||||||||
| Interest expense | (19,560) | |||||||||||||||||||||||||
| Other income (expense), net | 2,410 | |||||||||||||||||||||||||
| Income before income tax expense | $ | 30,040 | ||||||||||||||||||||||||
| As of December 31, 2023 | ||||||||||||||||||||||||||
| Net sales | $ | 463,600 | $ | 241,400 | $ | 188,550 | $ | 893,550 | ||||||||||||||||||
Adjusted cost of sales (a) | (343,340) | (190,890) | (144,100) | |||||||||||||||||||||||
Adjusted selling, general and administrative expenses (b) | (47,450) | (30,970) | (7,830) | |||||||||||||||||||||||
Other segment items (c) | 40 | (10) | (30) | |||||||||||||||||||||||
| Segment adjusted operating profit | $ | 72,850 | $ | 19,530 | $ | 36,590 | $ | 128,970 | ||||||||||||||||||
Corporate (e) | (46,620) | |||||||||||||||||||||||||
| Realignment and severance costs | (12,600) | |||||||||||||||||||||||||
| Purchase accounting costs | (3,190) | |||||||||||||||||||||||||
| Impairment of indefinite-lived intangible assets | (1,120) | |||||||||||||||||||||||||
| Interest expense | (15,920) | |||||||||||||||||||||||||
| Other income (expense), net | 1,070 | |||||||||||||||||||||||||
| Income before income tax expense | $ | 50,590 | ||||||||||||||||||||||||
| Packaging | Aerospace | Specialty Products | Total | |||||||||||||||||||||||
| As of December 31, 2022 | ||||||||||||||||||||||||||
| Net sales | $ | 522,180 | $ | 188,090 | $ | 173,560 | $ | 883,830 | ||||||||||||||||||
Adjusted cost of sales (a) | (382,350) | (152,140) | (134,530) | |||||||||||||||||||||||
Adjusted selling, general and administrative expenses (b) | (53,620) | (28,880) | (8,680) | |||||||||||||||||||||||
Other segment items (f) | (10) | 4,810 | (100) | |||||||||||||||||||||||
| Segment adjusted operating profit | $ | 86,200 | $ | 11,880 | $ | 30,250 | $ | 128,330 | ||||||||||||||||||
Corporate (g) | (20,250) | |||||||||||||||||||||||||
| Realignment and severance costs | (7,860) | |||||||||||||||||||||||||
| Purchase accounting costs | (1,160) | |||||||||||||||||||||||||
| Interest expense | (14,110) | |||||||||||||||||||||||||
| Other income (expense), net | 2,720 | |||||||||||||||||||||||||
| Income before income tax expense | $ | 87,670 | ||||||||||||||||||||||||
(a) Adjusted cost of sales is defined as cost of sales excluding Special Items.
(b) Adjusted selling, general and administrative expenses is defined as selling, general and administrative expenses excluding Special Items.
(c) Other segment items for each reportable segment includes net gain (loss) on dispositions of assets excluding Special Items.
(d) Includes $5.5 million of asbestos-related costs, $4.7 million of system implementation costs, $3.6 million of environmental remediation charges, $3.5 million of mergers, acquisition, diligence and transaction costs, and $3.5 million of realignment, severance and consulting costs.
(e) Includes $4.2 million of realignment, severance and consulting costs, $2.2 million of mergers, acquisition, diligence and transaction costs, and $0.7 million of system implementation costs.
(f) Other segment items for each reportable segment includes net gain (loss) on dispositions of assets. In 2022, the Company completed the sale of vacant land adjacent to the Company's Tolleson, Arizona, manufacturing facility for net proceeds of $5.0 million, and recognized a $4.8 million gain on the sale, which is included within the Aerospace segment.
(g) In 2022, the Company sold a non-core facility in City of Industry, California, for net proceeds of $23.3 million, and recognized a $17.6 million gain on the sale, which is included in Corporate operating loss for 2022 and included within net gain (loss) on disposition of assets in the accompanying consolidated statement of income. In addition, includes $5.6 million of asbestos-related costs, $1.8 million of mergers, acquisition, diligence and transaction costs, and $0.8 million of realignment, severance and consulting costs.
| Packaging | Aerospace | Specialty Products | Corporate | Total | ||||||||||||||||||||||||||||
| As of December 31, 2024 | ||||||||||||||||||||||||||||||||
| Capital expenditures | $ | 30,860 | $ | 9,960 | $ | 7,100 | $ | 3,040 | $ | 50,960 | ||||||||||||||||||||||
Depreciation and amortization (a) | 34,250 | 18,180 | 12,270 | 220 | 64,920 | |||||||||||||||||||||||||||
| Total assets | 811,190 | 390,980 | 89,210 | 32,800 | 1,324,180 | |||||||||||||||||||||||||||
| As of December 31, 2023 | ||||||||||||||||||||||||||||||||
| Capital expenditures | 29,060 | 14,620 | 10,410 | 100 | 54,190 | |||||||||||||||||||||||||||
| Depreciation and amortization | 34,170 | 19,160 | 4,130 | 130 | 57,590 | |||||||||||||||||||||||||||
| Total assets | 830,620 | 390,910 | 92,770 | 27,360 | 1,341,660 | |||||||||||||||||||||||||||
| As of December 31, 2022 | ||||||||||||||||||||||||||||||||
| Capital expenditures | 33,170 | 6,900 | 5,860 | 30 | 45,960 | |||||||||||||||||||||||||||
| Depreciation and amortization | 29,340 | 19,620 | 4,130 | 130 | 53,220 | |||||||||||||||||||||||||||
| Total assets | 776,550 | 347,720 | 86,290 | 94,440 | 1,305,000 | |||||||||||||||||||||||||||
(a) Depreciation and amortization for the Specialty Products segment in 2024 includes $8.2 million of accelerated depreciation. See Note 9, "Property and Equipment, Net," for further details.
The following table presents the Company's net sales for each of the years ended December 31 and long-lived assets at each year ended December 31, by geographical area (dollars in thousands).
| As of December 31, | ||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
| Net Sales | Long-lived Assets | Net Sales | Long-lived Assets | Net Sales | Long-lived Assets | |||||||||||||||||||||||||||||||||
| Non-U.S. | ||||||||||||||||||||||||||||||||||||||
| Europe | $ | 159,000 | $ | 217,110 | $ | 153,120 | $ | 238,640 | $ | 139,780 | $ | 192,600 | ||||||||||||||||||||||||||
| Asia Pacific | 33,770 | 29,540 | 34,240 | 27,000 | 35,260 | 29,720 | ||||||||||||||||||||||||||||||||
| Other Americas | 39,790 | 39,640 | 24,950 | 45,120 | 18,040 | 41,840 | ||||||||||||||||||||||||||||||||
| Total non-U.S. | 232,560 | 286,290 | 212,310 | 310,760 | 193,080 | 264,160 | ||||||||||||||||||||||||||||||||
| Total U.S. | 692,450 | 549,800 | 681,240 | 564,020 | 690,750 | 541,510 | ||||||||||||||||||||||||||||||||
| Total | $ | 925,010 | $ | 836,090 | $ | 893,550 | $ | 874,780 | $ | 883,830 | $ | 805,670 | ||||||||||||||||||||||||||
The Company's export sales from the U.S. approximated $82.7 million, $72.2 million and $74.5 million in 2024, 2023 and 2022, respectively.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.