TRIMAS CORP
For the period ended Jun 30, 2025. Filed Jul 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 29, 2025
TRS$38.61+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-29.
0000842633-25-000080
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0000842633-25-000116
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 134 current paragraphs.
56 unchanged; 46 reworded; 25 added; 4 removed; 1 previous and 7 current paragraphs rearranged.
Tables are not compared: 9 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
The effective income tax rate for second quarter 2025 was 25.2% as compared to 13.7% for second quarter 2024. The increase in the effective tax rate for second quarter 2025 was primarily due to the recognition of approximately $1.4 million of tax benefit related to foreign tax loss carryforwards in second quarter 2024, and by a year-over-year increase in losses incurred in certain foreign subsidiaries for which no tax benefit is recognized.
Current report
Segment Information and Supplemental Analysis
Current report
•An increase in our effective tax rate in second quarter 2025 compared with second quarter 2024.
Current report
Overall, net sales increased $34.3 million, or 14.2%, to $274.8 million for the three months ended June 30, 2025, as compared with $240.5 million in the three months ended June 30, 2024. Acquisition-related sales growth was $6.7 million from our February 2025 acquisition of GMT Aerospace. Organic sales, excludingthe impact of currency exchange, increased $32.3 million, or 13.4%, as organic sales increased 23.8% and 7.9% within our Aerospace and Packaging segments, respectively, due to improved throughput and commercial actions with Aerospace and end market demand improvements within Packaging. Sales decreased 6.8% in our Specialty Products segment as an organic sales increase of 13.1% for our steel cylinders was more than offset by the impact of the divestiture of our Arrow Engine business. In addition, net sales increased by $0.6 million due to currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of the weakening of the U.S. dollar relative to foreign currencies.
Current report
Gross profit margin (gross profit as a percentage of sales) approximated 25.4% and 22.5% for the three months ended June 30, 2025 and 2024, respectively. Gross profit margin increased primarily due to higher sales levels and related improved fixed cost absorption within our Aerospace and Packaging segments, a more favorable product sales mix, and favorable commercial actions within our Aerospace segment, as well as due to the favorable impact of prior year operational improvement actions within our Packaging segment. The increase in gross profit was partially offset by reduced sales in our Specialty Products segment as the increase in gross profit related to increased steel cylinder sales was more than offset by the loss of sales related to the divestiture of our Arrow Engine business. Additionally, gross profit decreased due to a $0.5 million purchase accounting charge related to the step-up of GMT Aerospace's inventory to fair value and increased input costs in our Packaging segment.
Current report
Operating profit margin (operating profit as a percentage of sales) approximated 9.9% and 7.4% for the three months ended June 30, 2025 and 2024, respectively. Operating profit increased $9.3 million to $27.1 million in the three months ended June 30, 2025, from $17.9 million for the three months ended June 30, 2024, primarily due to higher sales levels and related improved fixed cost absorption within our Aerospace and Packaging segments, a more favorable product sales mix, and favorable commercial actions within our Aerospace segment, as well as due to the favorable impact of prior year operational improvement actions within our Packaging segment. The increase in operating profit was partially offset by reduced sales in our Specialty Products segment as the increase in operating profit related to increased steel cylinder sales was more than offset by the loss of sales related to the divestiture of our Arrow Engine business. In addition, operating profit decreased due to a $0.5 million purchase accounting charge related to the step-up of GMT Aerospace's inventory to fair value, increased input costs in our Packaging segment, higher employee-related costs, higher consulting costs and costs associated with actions to reorganize the corporate office.
Current report
Gross profit increased $3.4 million to $35.6 million, or 24.9% of sales, in the three months ended June 30, 2025, as compared to $32.1 million, or 24.3% of sales, in the three months ended June 30, 2024, primarily due to higher sales levels and resulting improved fixed cost absorption, as well as the favorable impact of prior year operational improvement actions. These increases to gross profit were partially offset by increased input costs.
Current report
Selling, general and administrative expenses increased $1.5 million to $15.5 million, or 10.9% of sales, in the three months ended June 30, 2025, as compared to $14.0 million, or 10.6% of sales, in the three months ended June 30, 2024, primarily due to higher employee-related costs and higher information technology costs.
Current report
Operating profit increased $2.0 million to $20.0 million, or 14.0% of sales, in the three months ended June 30, 2025, as compared to $18.0 million, or 13.7% of sales, in the three months ended June 30, 2024, primarily due to higher sales volume, improved fixed cost absorption and the favorable impact of cost reduction efforts, partially offset by increased input costs and higher selling, general and administrative expenses.
Current report
Gross profit increased $12.5 million to $31.8 million, or 30.8% of sales, in the three months ended June 30, 2025, from $19.3 million, or 24.8% of sales, in the three months ended June 30, 2024. Gross profit increased primarily due to higher sales levels and resulting improved fixed cost absorption, a more favorable product sales mix and favorable commercial actions. These increases in gross profit were partially offset by a $0.5 million purchase accounting charge related to the step-up of GMT Aerospace's inventory to fair value.
Current report
Selling, general and administrative expenses increased $2.8 million to $11.6 million, or 11.3% of sales, in the three months ended June 30, 2025, as compared to $8.9 million, or 11.4% of sales, in the three months ended June 30, 2024, primarily due to higher employee-related costs and higher ongoing selling, general and administrative costs associated with our acquisition of GMT Aerospace.
Current report
Specialty Products. Net sales for the three months ended June 30, 2025 decreased $2.1 million, or 6.8% (of which 10.8% was organic and (17.6)% was due to the divestiture of Arrow Engine), to $28.7 million, as compared to $30.9 million in the three months ended June 30, 2024. Sales of steel cylinders increased $3.3 million, or 13.1%, to $28.7 million, as compared to $25.4 million, due to improved order intake. Arrow Engine contributed $5.4 million of sales in second quarter 2024. See Note 5, "Acquisitions and Sale of Business," included in Part 1, Item 1, "Notes to Unaudited Consolidated Financial Statements," within this quarterly report on Form 10-Q for more information.
Current report
Gross profit decreased $0.2 million to $2.4 million, or 8.4% of sales, in the three months ended June 30, 2025, as compared to $2.6 million, or 8.5% of sales, in the three months ended June 30, 2024, as the increase in gross profit related to increased steel cylinder sales was more than offset by the impact of the divestiture of Arrow Engine.
Current report
Selling, general and administrative expenses decreased $0.9 million to $1.1 million, or 4.0% of sales, in the three months ended June 30, 2025, as compared to $2.0 million, or 6.5% of sales, in the three months ended June 30, 2024, primarily due to reduced spending levels and the year-over-year impact from the divestiture of our Arrow Engine business.
Current report
Operating profit increased $0.7 million to $1.3 million, or 4.4% of sales, in the three months ended June 30, 2025, as compared to $0.6 million, or 1.9% of sales, in the three months ended June 30, 2024, primarily due to increased sales of steel cylinders and reduced spending levels, partially offset by the year-over-year impact from the divestiture of our Arrow Engine business.
Current report
Corporate expenses increased $3.1 million to $14.3 million for the three months ended June 30, 2025, from $11.2 million for the three months ended June 30, 2024, primarily due to higher employee-related costs, an increase of $2.2 million related to consulting costs and costs associated with actions to reorganize the corporate office, and $0.7 million of higher costs associated with the upgrade of certain key information technology applications. These increases were partially offset by $1.0 million of lower professional costs associated with business acquisition, diligence and transaction-related activity and the impact of a $0.7 million environment settlement related to a legacy TriMas operation that occurred in second quarter 2024 that did not recur.
Current report
Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024
Current report
Interest expense decreased $1.1 million, to $9.1 million, for the six months ended June 30, 2025, as compared to $10.2 million for the six months ended June 30, 2024, due to a decrease in our weighted average borrowings and a lower effective interest rate as a result of decreased borrowings from our revolving credit facility.
Current report
Other income (expense) remained flat at $0.3 million of expense, for the six months ended June 30, 2025 and 2024, as decreased losses on foreign currency transactions was offset by lower miscellaneous income.
Current report
The effective income tax rate for the six months ended June 30, 2025 and 2024 was 26.2% and 19.0%, respectively. We recorded tax expense of $10.4 million for the six months ended June 30, 2025, as compared to $3.8 million for the six months ended June 30, 2024. The effective tax rate for the six months ended June 30, 2025 was higher than in the prior year primarily due to the recognition of approximately $1.4 million of tax benefit related to foreign tax loss carryforwards in the three months ended June 30, 2024. Additionally, the sale of the Arrow Engine business resulted in a taxable capital gain and related income tax expense of approximately $1.4 million in the first half of 2025.
Current report
Gross profit increased $2.6 million to $67.0 million, or 24.8% of sales, in the six months ended June 30, 2025, as compared to $64.4 million, or 24.9% of sales, in the six months ended June 30, 2024, due to higher sales levels and resulting improved fixed cost absorption, as well as the favorable impact of prior year operational improvement actions. These increases to gross profit were partially offset by increased input costs.
Current report
Operating profit increased $2.1 million to $37.2 million, or 13.8% of sales, in the six months ended June 30, 2025, as compared to $35.1 million, or 13.6% of sales, in the six months ended June 30, 2024, primarily due to higher sales volume, improved fixed cost absorption and the favorable impact of cost reduction efforts, partially offset by increased input costs and higher selling, general and administrative expenses.
Current report
Gross profit increased $21.1 million to $56.0 million, or 29.1% of sales, in the six months ended June 30, 2025, from $34.9 million, or 24.0% of sales, in the six months ended June 30, 2024. Gross profit increased primarily due to higher sales levels and resulting improved fixed cost absorption, a more favorable product sales mix and favorable commercial actions. These increases in gross profit were partially offset by a $0.7 million purchase accounting charge related to the step-up of GMT Aerospace's inventory to fair value.
Current report
Operating profit increased $17.7 million to $35.2 million, or 18.3% of sales, in the six months ended June 30, 2025, as compared to $17.6 million, or 12.1% of sales, in the six months ended June 30, 2024, primarily due to the impact of higher sales levels, improved fixed cost absorption, a more favorable product sales mix, and commercial actions. These increases were partially offset by higher selling, general and administrative expenses and the recognition of the purchase accounting charge related to the step-up of GMT Aerospace's inventory to fair value.
Current report
On July 4, 2025, President Donald J. Trump signed into law the legislation formally titled “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14” —and commonly referred to as the One Big Beautiful Bill Act ("OBBBA"). The legislation takes effect in the third quarter of 2025. Based on an initial analysis of the OBBBA, we do not anticipate a material impact on the effective tax rate and expect a favorable impact on U.S. federal cash taxes for the remainder of 2025.
Removed paragraphs (4)
Previous report
•The impact of our debt refinancing activities.
Previous report
Gross profit decreased $0.8 million to $31.5 million, or 24.7% of sales, in the three months ended March 31, 2025, as compared to $32.3 million, or 25.4% of sales, in the three months ended March 31, 2024, primarily due to increased input costs, including freight and tariffs, partially offset by the favorable impact of prior year operational improvement actions.
Previous report
Operating profit increased $0.1 million to $17.2 million, or 13.5% of sales, in the three months ended March 31, 2025, as compared to $17.1 million, or 13.5% of sales, in the three months ended March 31, 2024, primarily due to higher sales levels and lower selling, general and administrative expenses, partially offset by increased input costs, including freight and tariffs, and the unfavorable impact of foreign currency exchange.
Previous report
Gross profit increased $8.6 million to $24.2 million, or 27.1% of sales, in the three months ended March 31, 2025, from $15.6 million, or 23.1% of sales, in the three months ended March 31, 2024. Gross profit increased primarily due to higher sales levels and resulting improved fixed cost absorption, a more favorable product sales mix, and favorable commercial actions.
Reworded paragraphs (46)
Previous wording
Ourresults of operations have been materially impacted over the past few years by macro-economic factors, most recently by cost inflation (raw materials, wage rates and freight) and a lack of material, and in certain regions, skilled labor availability. Additionally, the U.S. government recently altered its approach to international trade policy and announced baseline tariffs on products from all countries and additional individualized reciprocal tariffs on the countries with which the United States has the largest trade deficits, including China. This change in international trade policy has also created uncertainty with respect to future tariffs, including any retaliatory tariffs imposed by other countries, or other potential governmental actions. These factors have significantly affected each of our businesses and how we operate, albeit in different ways and magnitudes. The current tariffs, predominately those imposed on China-based imports, have increased the costs of certain products sourced from non-U.S. countries. Sales of certain of our products for industrial applications, for example steel cylinders for packaged gas applications, have experienced volatility in demand related to customers securing a high order rates in prior periods, only to enter a period of destocking in more recent periods. This significant level of volatility in demand levels, input and transportation costs, and material and labor availability, have pressured our ability to operate efficiently in recent periods. While some areas of demand volatility and softness remain, such as in our Specialty Products segment, and more specifically our Norris Cylinder business, we have experienced more steady and consistent demand in our Packaging and Aerospace segments.
Current wording
Ourresults of operations have been materially impacted over the past few years by macro-economic factors, most recently by cost inflation (raw materials, wage rates and freight) and a lack of material, and in certain regions, skilled labor availability. Additionally, during the first six months of 2025, the U.S. government altered its approach to international trade policy and announced baseline tariffs on products from all countries and additional individualized reciprocal tariffs on the countries with which the United States has the largest trade deficits, including China. This change in international trade policy has also created uncertainty with respect to future tariffs, including any retaliatory tariffs imposed by other countries, or other potential governmental actions. These factors have affected each of our businesses and how we operate, albeit in different ways and magnitudes. The current tariffs, predominately those imposed on China-based imports, have increased the costs of certain products sourced from non-U.S. countries. Sales of certain of our products for industrial applications, for example steel cylinders for packaged gas applications, have experienced volatility in demand related to customers securing a high order rates in prior periods, only to enter a period of destocking in more recent periods. This significant level of volatility in demand levels, input and transportation costs, and material and labor availability, have pressured our ability to operate efficiently in recent periods. While some areas of demand volatility and softness remain, such as in our Specialty Products segment, and more specifically our Norris Cylinder business, we have experienced more steady and consistent demand in our Packaging and Aerospace segments.
Previous wording
Overall, ourfirst quarter 2025 net sales increased $14.6 million, or 6.4%, compared tofirst quarter 2024. We experienced organic growth of 27.8% and 3.3% within our Aerospace and Packaging segments, respectively, compared to first quarter 2024. We also experienced growth from acquisitions of 4.9% in our Aerospace segment. These increases were partially offset by lower sales of 24.0% in our Specialty Products segment as compared to the prior year quarter, as we recognized lower sales due to the divestiture of our Arrow Engine business in January 2025 and as we work through a cyclical demand trough and destocking related to our cylinder products. Our sales increases were also partially offset by$3.8 million of currency exchange, as our reported results in U.S. dollars were unfavorably impacted as a result of a strengthening U.S. dollar relative to foreign currencies.
Current wording
Overall, oursecond quarter 2025 net sales increased $34.3 million, or 14.2%, compared tosecond quarter 2024. We experienced organic growth of 23.8% and 7.9% within our Aerospace and Packaging segments, respectively, compared to second quarter 2024. We also experienced growth from acquisitions of 8.7% in our Aerospace segment. These increases were partially offset by lower sales of 6.8% in our Specialty Products segment as compared to the prior year quarter, as higher sales of steel cylinders were more than offset by the lost sales due to the divestiture of our Arrow Engine business in January 2025. Our overall sales increase included$0.6 million of currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of a weakening U.S. dollar relative to foreign currencies.
Previous wording
The most significant drivers affecting our financial results in first quarter 2025 compared with first quarter 2024, other than as directly impacted by sales changes, were the divestiture of our Arrow Engine business, the impact of our recent acquisition, realignment costs related to actions to reorganize our corporate office, and therefinancing of our existing credit agreement.
Current wording
The most significant drivers affecting our financial results in second quarter 2025 compared with second quarter 2024, other than as directly impacted by sales changes, were higher consulting costs and costs incurred related to actions to reorganize our corporate office and an increase in our effective tax rate.
Previous wording
On January 31, 2025, we completed the divestiture of our Arrow Engine business within our Specialty Products segment for net cash proceeds of $20.5 million, with the final sale price remaining subject to a working capital adjustment, if any. We recognized a pre-tax gain of $5.3 million on the sale of Arrow Engine.
Current wording
On January 31, 2025, we completed the divestiture of our Arrow Engine business within our Specialty Products segment for net cash proceeds of $20.5 million, with the final sale price remaining subject to a working capital adjustment, if any. We recognized a pre-tax gain of $5.3 million on the sale of Arrow Engine. Arrow Engine contributed $5.4 million of sales in second quarter 2024
Previous wording
In February 2025, we acquired the aerospace business of GMT Gummi-Metall-Technik GmbH (“GMT”) for a purchase price of $37.2 million. GMT’s aerospace division (“GMT Aerospace”), which is reported in our Aerospace segment, is located in Germany and contributed $3.3 million of acquisition-related sales growth during first quarter 2025.
Current wording
In February 2025, we acquired the aerospace business of GMT Gummi-Metall-Technik GmbH (“GMT”) for a purchase price of $37.2 million. GMT’s aerospace division (“GMT Aerospace”), which is reported in our Aerospace segment, is located in Germany and contributed $6.7 million of acquisition-related sales growth during second quarter 2025.
Previous wording
In first quarter 2025, we incurred pre-tax realignment costs of $3.8 million related to actions to reorganize our corporate office, primarily for severance and consulting costs, including $1.5 million of non-cash compensation expense.
Current wording
In second quarter 2025, we incurred pre-tax costs of $2.2 million related to professional consulting fees and costs related to actions to reorganize our corporate office.
Previous wording
We continue to evaluate alternatives to redeploy the cash generated by our businesses, one of which includes returning capital to our shareholders. In 2020, our Board of Directors increased the authorization of share repurchases to a cumulative amount of $250 million. During first quarter 2025, we purchased 20,491 shares of our outstanding common stock for an aggregate purchase price of $0.5 million. As of March 31, 2025, we had $67.2 million remaining under the repurchase authorization.
Current wording
We continue to evaluate alternatives to redeploy the cash generated by our businesses, one of which includes returning capital to our shareholders. In 2020, our Board of Directors increased the authorization of share repurchases to a cumulative amount of $250 million. During second quarter 2025, we purchased 85,729 shares of our outstanding common stock for an aggregate purchase price of $1.8 million. As of June 30, 2025, we had $65.4 million remaining under the repurchase authorization.
Previous wording
In addition, infirst quarter 2025, we declared dividends of $0.04 per share of common stock and paid dividends of $1.6 million. We will continue to evaluate opportunities to return capital to shareholders through the purchase of our common stock, as well as dividends, depending on market conditions and other factors.
Current wording
In addition, insecond quarter 2025, we declared dividends of $0.04 per share of common stock and paid dividends of$1.7 million. We will continue to evaluate opportunities to return capital to shareholders through the purchase of our common stock, as well as dividends, depending on market conditions and other factors.
Previous wording
•Decrease in demand for our cylinder products within our Specialty Products segment;
Current wording
•Increase in demand for our cylinder products within our Specialty Products segment;
Previous wording
•Increased costs, primarily related to severance and consulting costs, associated with actions to reorganize the corporate office; and
Current wording
•Increased costs, primarily related to consulting costs and costs associated with actions to reorganize the corporate office; and
Previous wording
Interest expense decreased $0.4 million, to $4.5 million, for the three months ended March 31, 2025, as compared to $4.9 million for the three months ended March 31, 2024, due to a lower effective interest rate in our weighted average borrowings.
Current wording
Interest expense decreased $0.7 million, to $4.6 million for the three months ended June 30, 2025, compared to $5.2 million for the three months ended June 30, 2024, due to a decrease in our weighted average borrowings and a lower effective interest rate on our revolving credit facility.
Previous wording
Other income (expense) decreased $0.2 million, to $0.1 million of expense, for the three months ended March 31, 2025, as compared to $0.3 million of expense for the three months ended March 31, 2024, primarily due to mark-to-market losses on our de-designated cross currency swap in first quarter 2024 that did not repeat in first quarter 2025.
Current wording
Other income (expense) decreased $0.3 million to $0.2 million of expense for the three months ended June 30, 2025, as compared to a nominal amount of income for the three months ended June 30, 2024, primarily due to mark-to-market gains on our de-designated cross currency swap in second quarter 2024 that did not repeat in second quarter 2025.
Previous wording
The effective income tax rate for the three months ended March 31, 2025 and 2024 was 27.6% and 28.5%, respectively. We recorded tax expense of $4.7 million for the three months ended March 31, 2025, as compared to $2.1 million for the three months ended March 31, 2024. The effective tax rate for the three months ended March 31, 2025 is lower than in the prior year primarily due to a year over year reduction in losses incurred in certain foreign subsidiaries for which no tax benefit is recognized. The sale of the Arrow Engine business resulted in a taxable capital gain and related income tax expense of approximately $1.4 million in the first quarter of 2025.
Current wording
The effective income tax rate for the three months ended June 30, 2025 and 2024 was 25.2% and 13.7%, respectively. We recorded income tax expense of $5.6 million and $1.7 million for the three months ended June 30, 2025 and 2024, respectively. The increase in the effective tax rate for the three months ended June 30, 2025 was primarily due to the recognition of approximately $1.4 million of tax benefit related to foreign tax loss carryforwards in the three months ended June 30, 2024, and by a year-over-year increase in losses incurred in certain foreign subsidiaries for which no tax benefit is recognized.
Previous wording
Net income increased by $7.3 million, to $12.4 million, for the three months ended March 31, 2025, compared to $5.1 million for the three months ended March 31, 2024. The increase was primarily the result of an increase in operating profit of $9.3 million, a decrease in interest expense of $0.4 million, and a decrease in other expense of $0.2 million, partially offset by a $2.7 million increase in income tax expense.
Current wording
Net income increased $5.8 million, to $16.7 million for the three months ended June 30, 2025, as compared to $10.9 million for the three months ended June 30, 2024. The increase was primarily the result of an increase in operating profit of $9.3 million and a decrease in interest expense of $0.7 million, partially offset by an increase in income tax expense of $3.9 million and an increase in other expense of $0.3 million.
Previous wording
Aerospace. Net sales for the three months ended March 31, 2025 increased $21.9 million, or 32.5% (of which 27.8% was organic, 4.9% related to acquisitions, and (0.2)% was foreign currency exchange), to $89.2 million, as compared to $67.3 million in the three months ended March 31, 2024. Acquisition-related sales growth from our February 2025 acquisition of GMT Aerospace was $3.3 million. Sales of our fasteners products increased by $12.1 million due to increases in aircraft build rates, improved production yield and commercial actions. Sales of our engineered components products increased by $6.6 million due to improved production throughput.
Current wording
Aerospace. Net sales for the three months ended June 30, 2025 increased $25.3 million, or 32.5% (of which 23.8% was organic and 8.7% related to acquisitions), to $103.0 million, as compared to $77.7 million in the three months ended June 30, 2024. Acquisition-related sales growth from our February 2025 acquisition of GMT Aerospace was $6.7 million. Sales of our fasteners products increased by $14.1 million due to increases in aircraft build rates, improved production yield and commercial actions. Sales of our engineered components products increased by $4.5 million due to improved production throughput.
Previous wording
Operating profit increased $7.9 million to $15.1 million, or 16.9% of sales, in the three months ended March 31, 2025, as compared to $7.1 million, or 10.6% of sales, in the three months ended March 31, 2024, primarily due to the impact of higher sales levels, improved fixed cost absorption, a more favorable product sales mix, and commercial actions.
Current wording
Operating profit increased $9.7 million to $20.1 million, or 19.6% of sales, in the three months ended June 30, 2025, as compared to $10.4 million, or 13.4% of sales, in the three months ended June 30, 2024, primarily due to the impact of higher sales levels, improved fixed cost absorption, a more favorable product sales mix, and commercial actions. These increases were partially offset by higher selling, general and administrative expenses and the recognition of the purchase accounting charge related to the step-up of GMT Aerospace's inventory to fair value.
Previous wording
Overall, net sales increased $14.6 million, or 6.4%, to $241.7 million for the three months ended March 31, 2025, as compared with $227.1 million in the three months ended March 31, 2024. Acquisition-related sales growth was $3.3 million from our February 2025 acquisition of GMT Aerospace. Organic sales, excluding the impact of currency exchange and acquisitions, increased $18.7 million, or 8.2%, as organic sales increases of 3.3% and 27.8% within our Packaging and Aerospace segments, respectively, driven by end market demand improvements, were partially offset by a 24.0% sales decrease in our Specialty Products segment due to lower market demand and the divestiture of our Arrow Engine business. In addition, net sales decreased by $3.8 million due to currency exchange, as our reported results in U.S. dollars were unfavorably impacted as a result of a strengthening U.S. dollar relative to foreign currencies.
Current wording
Overall, net sales increased $48.8 million, or 10.4%, to $516.4 million for the six months ended June 30, 2025, as compared with $467.6 million in the six months ended June 30, 2024. Acquisition-related sales growth was $10.0 million from our February 2025 acquisition of GMT Aerospace. Organic sales, excluding the impact of currency exchange and acquisitions, increased $51.0 million, or 10.9%, as organic sales increases of 25.7% and 5.7% within our Aerospace and Packaging segments, respectively, driven by end market demand improvements, were partially offset by a 15.7% sales decrease in our Specialty Products segment due to lower market demand and the divestiture of our Arrow Engine business. In addition, net sales decreased by $3.2 million due to currency exchange, as our reported results in U.S. dollars were unfavorably impacted as a result of a strengthening U.S. dollar relative to foreign currencies.
Previous wording
Gross profit margin (gross profit as a percentage of sales) approximated 23.6% for the three months ended March 31, 2025 and 23.2% for the three months ended March 31, 2024. Gross profit margin increased primarily due to higher sales levels and related improved fixed cost absorption, a more favorable product sales mix, and favorable commercial actions within our Aerospace segment, as well as due to the favorable impact of prior year operational improvement actions within our Packaging segment. The increase in gross profit was partially offset by reduced sales of steel cylinders and related reduction in absorption of fixed costs, and the loss of sales related to the divestiture of our Arrow Engine business within our Specialty Products segment, and increased input costs in our Packaging segment.
Current wording
Gross profit margin (gross profit as a percentage of sales) approximated 24.5% for the six months ended June 30, 2025 and 22.8% for the six months ended June 30, 2024. Gross profit margin increased primarily due to higher sales levels and related improved fixed cost absorption within our Aerospace and Packaging segments, a more favorable product sales mix, and favorable commercial actions within our Aerospace segment, as well as due to the favorable impact of prior year operational improvement actions within our Packaging segment. The increase in gross profit was partially offset by reduced sales of steel cylinders and related reduction in absorption of fixed costs, and the loss of sales related to the divestiture of our Arrow Engine business within our Specialty Products segment. Additionally, gross profit decreased due to a $0.7 million purchase accounting charge related to the step-up of GMT Aerospace's inventory to fair value and increased input costs in our Packaging segment.
Previous wording
Operating profit margin (operating profit as a percentage of sales) approximated 9.0% and 5.5% for the three months ended March 31, 2025 and 2024, respectively. Operating profit increased $9.3 million, to $21.8 million, for the three months ended March 31, 2025, compared to $12.4 million for the three months ended March 31, 2024, primarily due to higher sales levels and related improved fixed cost absorption, a more favorable product sales mix, and favorable commercial actions within our Aerospace segment. Additionally, operating profit increased due to a $5.3 million gain on the sale of Arrow Engine and the favorable impact of prior year operational improvement actions within our Packaging segment. The increase in operating profit was partially offset by reduced sales of steel cylinders and related reduction in absorption of fixed costs, and the loss of sales related to the divestiture of Arrow Engine within our Specialty Products segment. In addition, operating profit decreased due to increased tariff related input costs in our Packaging segment. We also recorded $3.8 million of realignment costs, primarily for severance and consulting costs, including $1.5 million of non-cash compensation expense, to reorganize our corporate office.
Current wording
Operating profit margin (operating profit as a percentage of sales) approximated 9.5% and 6.5% for the six months ended June 30, 2025 and 2024, respectively. Operating profit increased $18.6 million, to $48.9 million, for the six months ended June 30, 2025, compared to $30.3 million for the six months ended June 30, 2024, primarily due to higher sales levels and related improved fixed cost absorption within our Aerospace and Packaging segments, a more favorable product sales mix, and favorable commercial actions within our Aerospace segment. Additionally, operating profit increased due to a $5.3 million gain on the sale of Arrow Engine and the favorable impact of prior year operational improvement actions within our Packaging segment. The increase in operating profit was partially offset by reduced sales of steel cylinders and related reduction in absorption of fixed costs, and the loss of sales related to the divestiture of Arrow Engine within our Specialty Products segment. In addition, operating profit decreased due to increased tariff related input costs in our Packaging segment and by $4.8 million primarily related to consulting costs and costs associated with actions to reorganize the corporate office. We also recorded a $0.7 million purchase accounting charge related to the step-up of GMT Aerospace's inventory to fair value and recognized higher employee-related costs.
Previous wording
Packaging. Net sales increased $0.6 million, or 0.4% (of which 3.3% was organic and (2.9)% was foreign currency exchange), to $127.6 million in the three months ended March 31, 2025, as compared to $127.0 million in the three months ended March 31, 2024. Sales of dispensing products used primarily for beauty, personal care and home care applications increased by $6.8 million. Sales of products used for industrial applications increased by $1.9 million and sales of other consumer goods products increased by $2.3 million. These increases were partially offset by the decrease in sales of products used in food and beverage applications of $6.7 million, primarily due to reduced demand for certain dairy applications in North America and beverage closure applications in Europe as certain customers bring inventories into better balance. Net sales decreased by $3.7 million due to currency exchange, as our reported results in U.S. dollars were unfavorably impacted as a result of the strengthening U.S. dollar relative to foreign currencies, as compared to 2024.
Current wording
Packaging. Net sales increased $11.6 million, or 4.5% (of which 5.7% was organic and (1.2)% was foreign currency exchange), to $270.6 million in the six months ended June 30, 2025, as compared to $259.0 million in the six months ended June 30, 2024. Sales of dispensing products used primarily for beauty, personal care and home care applications increased by $20.2 million. Sales of products used for industrial applications increased by $2.1 million and sales of other consumer goods products increased by $5.5 million. These increases were partially offset by the decrease in sales of products used in food and beverage applications of $13.0 million, primarily due to reduced demand for certain dairy applications in North America and beverage closure applications in Europe. Net sales decreased by $3.1 million due to currency exchange, as our reported results in U.S. dollars were unfavorably impacted as a result of the strengthening U.S. dollar relative to foreign currencies, as compared to 2024.
Previous wording
Selling, general and administrative expenses decreased $1.0 million to $14.2 million, or 11.1% of sales, in the three months ended March 31, 2025, as compared to $15.2 million, or 12.0% of sales, in the three months ended March 31, 2024, primarily due to lower charges for the provision for losses on accounts receivable and a decrease in certain employee-related costs.
Current wording
Selling, general and administrative expenses increased $0.5 million to $29.8 million, or 11.0% of sales, in the six months ended June 30, 2025, as compared to $29.2 million, or 11.3% of sales, in the six months ended June 30, 2024, primarily due to higher employee-related costs and higher information technology costs, partially offset by lower charges for the provision for losses on accounts receivable.
Previous wording
Selling, general and administrative expenses increased $0.7 million to $9.1 million, or 10.2% of sales, in the three months ended March 31, 2025, as compared to $8.5 million, or 12.5% of sales, in the three months ended March 31, 2024, primarily due to higher employee-related costs, higher ongoing selling, general and administrative costs associated with our acquisition of GMT Aerospace, and higher information technology costs. These increases were partially offset by lower charges for the provision for losses on accounts receivable and lower professional fees.
Current wording
Selling, general and administrative expenses increased $3.4 million to $20.8 million, or 10.8% of sales, in the six months ended June 30, 2025, as compared to $17.3 million, or 11.9% of sales, in the six months ended June 30, 2024, primarily due to higher employee-related costs, higher ongoing selling, general and administrative costs associated with our acquisition of GMT Aerospace, and higher information technology costs. These increases were partially offset by lower charges for the provision for losses on accounts receivable and lower professional fees.
Previous wording
Specialty Products. Net sales for the three months ended March 31, 2025 decreased $7.9 million, or 24.0% (of which (13.1)% was organic and (10.9)% was due to the divestiture of Arrow Engine), to $24.9 million, as compared to $32.7 million in the three months ended March 31, 2024. Sales of steel cylinders decreased $4.3 million, or 15.4%, to $23.5 million, as compared to $27.8 million, due predominantly to lower demand for industrial applications as customers continue to work through high prior period inventory balances. Arrow Engine contributed $1.4 million of sales in first quarter 2025, as compared to $5.0 million in first quarter 2024. See Note 5, "Acquisitions and Sale of Business," included in Part 1, Item 1, "Notes to Unaudited Consolidated Financial Statements," within this quarterly report on Form 10-Q for more information.
Current wording
Specialty Products. Net sales for the six months ended June 30, 2025 decreased $10.0 million, or 15.7% (of which (1.5)% was organic and (14.2)% was due to the divestiture of Arrow Engine), to $53.6 million, as compared to $63.6 million in the six months ended June 30, 2024. Sales of steel cylinders decreased $1.0 million, or 1.8%, to $52.2 million, as compared to $53.2 million, due predominantly to lower demand for industrial applications as customers continued to work through high prior period inventory balances. Arrow Engine contributed $1.4 million of sales in first half 2025, as compared to $10.4 million in first half 2024. See Note 5, "Acquisitions and Sale of Business," included in Part 1, Item 1, "Notes to Unaudited Consolidated Financial Statements," within this quarterly report on Form 10-Q for more information.
Previous wording
Gross profit decreased $3.5 million to $1.4 million, or 5.5% of sales, in the three months ended March 31, 2025, as compared to $4.9 million, or 14.9% of sales, in the three months ended March 31, 2024, primarily due to reduced sales of our steel cylinders and resulting less favorable absorption of fixed costs, as well as the loss of sales related to the divestiture of our Arrow Engine business.
Current wording
Gross profit decreased $3.7 million to $3.8 million, or 7.0% of sales, in the six months ended June 30, 2025, as compared to $7.5 million, or 11.8% of sales, in the six months ended June 30, 2024, primarily due to the year-over-year impact from the divestiture of our Arrow Engine business as well as reduced sales of our steel cylinders and resulting less favorable absorption of fixed costs.
Previous wording
Selling, general and administrative expenses increased $0.3 million to $2.5 million, or 10.1% of sales, in the three months ended March 31, 2025, as compared to $2.3 million, or 6.9% of sales, in the three months ended March 31, 2024, as $0.9 million of transaction-related costs associated with the divestiture of our Arrow Engine business more than offset the year-over-year impact from the divestiture of our Arrow Engine business.
Current wording
Selling, general and administrative expenses decreased $0.6 million to $3.7 million, or 6.8% of sales, in the six months ended June 30, 2025, as compared to $4.3 million, or 6.7% of sales, in the six months ended June 30, 2024, due to reduced spending levels and the year-over-year impact from the divestiture of our Arrow Engine business, partially offset by $0.9 million of transaction-related costs associated with the divestiture of our Arrow Engine business.
Previous wording
Operating profit (loss) decreased $3.8 million to an operating loss of $1.2 million, or 4.6% of sales, in the three months ended March 31, 2025, as compared to operating profit of $2.6 million, or 8.0% of sales, in the three months ended March 31, 2024, primarily due to lower sales levels, which resulted in less favorable absorption of fixed costs, the impact of our divestiture of our Arrow Engine business, and higher selling, general and administrative expenses.
Current wording
Operating profit decreased $3.1 million to $0.1 million, or 0.2% of sales, in the six months ended June 30, 2025, as compared to $3.2 million, or 5.0% of sales, in the six months ended June 30, 2024, primarily due to the year-over-year impact from the divestiture of our Arrow Engine business as well as lower steel cylinder sales levels, which resulted in less favorable absorption of fixed costs.
Previous wording
Corporate expenses decreased $5.0 million to $9.4 million for the three months ended March 31, 2025, from $14.4 million for the three months ended March 31, 2024, primarily due to a $5.3 million pre-tax gain on the sale of the Arrow Engine business and a $1.6 million decrease in non-cash stock compensation due to timing and estimated attainment of existing awards. Additionally, expenses decreased $0.9 million due to lower professional costs associated with business acquisition, diligence and transaction-related activity. These decreases were partially offset by increased costs, primarily related to severance and consulting costs, of $2.3 million associated with actions to reorganize the corporate office.
Current wording
Corporate expenses decreased $2.0 million to $23.6 million for the six months ended June 30, 2025, from $25.6 million for the six months ended June 30, 2024, primarily due to a $5.3 million pre-tax gain on the sale of the Arrow Engine business, $1.9 million of lower professional costs associated with business acquisition, diligence and transaction-related activity, a $1.4 million decrease in non-cash stock compensation due to timing and estimated attainment of existing awards, and the impact of a $0.7 million environment settlement related to a legacy TriMas operation that occurred in second quarter 2024 that did not recur. These decreases were partially offset by an increase of $4.8 million, primarily related to consulting costs and costs associated with actions to reorganize the corporate office, and higher employee-related costs.
Previous wording
Cash flows provided by operating activities were $9.2 million for the three months ended March 31, 2025, as compared to cash used of $3.7 million for the three months ended March 31, 2024. Significant changes in cash flows provided by operating activities and the reasons for such changes were as follows:
Current wording
Cash flows provided by operating activities were $39.4 million for the six months ended June 30, 2025, as compared to $14.7 million for the six months ended June 30, 2024. Significant changes in cash flows provided by operating activities and the reasons for such changes were as follows:
Previous wording
•For the three months ended March 31, 2025, we generated $23.5 million in cash flows, based on net income of $12.4 million and after considering the effects of non-cash items related to depreciation, amortization, and gain on dispositions of assets, amortization of debt issuance costs, changes in deferred income taxes, stock-based compensation, provision for losses on accounts receivable, and other operating activities. For the three months ended March 31, 2024, we generated $29.9 million in cash flows based on net income of $5.1 million and after considering the effects of similar non-cash items.
Current wording
•For the six months ended June 30, 2025, we generated $54.8 million in cash flows, based on net income of $29.1 million and after considering the effects of non-cash items related to depreciation, amortization, and gain on dispositions of assets, amortization of debt issuance costs, changes in deferred income taxes, stock-based compensation, provision for losses on accounts receivable, and other operating activities. For the six months ended June 30, 2024, we generated $59.2 million in cash flows based on net income of $16.1 million and after considering the effects of similar non-cash items.
Previous wording
•Increases in accounts receivable resulted in a use of cash of $14.7 million and $16.2 million for the three months ended March 31, 2025 and 2024, respectively. The decreased use of cash for each of the three month periods is due primarilyto the timing of sales and collection of cash related thereto within the periods. Days sales outstanding of receivables increased three days through thethree months ended March 31, 2025, and remained consistent through thethree months ended March 31, 2024.
Current wording
•Increases in accounts receivable resulted in a use of cash of $29.7 million and $24.7 million for the six months ended June 30, 2025 and 2024, respectively. The increased use of cash for each of the six month periods is due primarily to the timing of sales and collection of cash related thereto within the periods. Days sales outstanding of receivables increased one day through the six months ended June 30, 2025, and decreased one day through the six months ended June 30, 2024.
Previous wording
•We increased our investment in inventory by $4.6 million for the three months ended March 31, 2025 and by $14.3 million for the three months ended March 31, 2024. Our days sales in inventory increased by five days through the three months ended March 31, 2025, as we continued to manage inventory levels, considering our supply needs, and balanced with sales growth within our Packaging and Aerospace segments. Our days sales in inventory increased by one day through the three months ended March 31, 2024, primarily as a result of moderating inventory levels with sales level.
Current wording
•We decreased our investment in inventory by $1.3 million for the six months ended June 30, 2025, while we increased our investment by $18.3 million for the six months ended June 30, 2024. Our days sales in inventory decreased by seven days through the six months ended June 30, 2025, and decreased by five days through the six months ended June 30, 2024, as we continued to manage inventory levels, considering our supply needs, and balanced with sales growth within our Packaging and Aerospace segments in both periods.
Previous wording
•Decreases in prepaid expenses and other assets resulted in a source of cash of $3.9 million and $0.5 million for the three months ended March 31, 2025, and 2024, respectively. These changes were primarily a result of the timing of payments made for income taxes and certain operating expenses.
Current wording
•Increases in prepaid expenses and other assets resulted in a use of cash of $1.4 million and $0.4 million for the six months ended June 30, 2025, and 2024, respectively. These changes were primarily a result of the timing of payments made for income taxes and certain operating expenses.
Previous wording
•Increase in accounts payable and accrued liabilities resulted in a source of cash of $1.1 million for the three months ended March 31, 2025, while decrease in accounts payable and accrued liabilities resulted in a use of cash of $3.7 million for the three months ended March 31, 2024. Days accounts payable on hand decreased by two days through the three months ended March 31, 2025, and decreased by eight days for the three months ended March 31, 2024. Our days accounts payable on hand fluctuate primarily as a result of the timing of payments made to suppliers and the mix of vendors and related terms.
Current wording
•Increases in accounts payable and accrued liabilities resulted in a source of cash of $14.5 million for the six months ended June 30, 2025, while decreases in accounts payable and accrued liabilities resulted in a use of cash of $1.2 million for the six months ended June 30, 2024. Days accounts payable on hand increased by one day through the six months ended June 30, 2025, and decreased by seven days for the six months ended June 30, 2024. Our days accounts payable on hand fluctuate primarily as a result of the timing of payments made to suppliers and the mix of vendors and related terms.
Previous wording
Net cash used for investing activities for the three months ended March 31, 2025 and 2024 was $29.6 million and $13.1 million, respectively. During the first three months of 2025, we invested $12.9 million in capital expenditures, as we continued our investment in growth, capacity and productivity-related capital projects. We paid $37.2 million, net of cash acquired, to acquire GMT Aerospace. We also received net proceeds of $20.5 million from the sale of our Arrow Engine business and disposition of property and equipment. During the first three months of 2024, we invested $13.3 million in capital expenditures and received net proceeds of $0.1 million from disposition of property and equipment.
Current wording
Net cash used for investing activities for the six months ended June 30, 2025 and 2024 was $46.0 million and $23.9 million, respectively. During the first six months of 2025, we invested $30.0 million in capital expenditures, as we continued our investment in growth, capacity and productivity-related capital projects. We paid $37.2 million, net of cash acquired, to acquire GMT Aerospace. We also received net proceeds of $21.2 million from the sale of our Arrow Engine business and disposition of property and equipment. During the first six months of 2024, we invested $24.1 million in capital expenditures and received net proceeds of $0.2 million from disposition of property and equipment.
Previous wording
Net cash provided by financing activities was $30.1 million and $12.4 million for the three months ended March 31, 2025 and 2024, respectively. During the three months ended March 31, 2025, we received net proceeds of $35.3 million from borrowings on our revolving credit facilities, paid $1.3 million for debt financing fees, purchased $0.5 million of our outstanding common stock, used a net cash amount of $1.8 million related to our stock compensation arrangements, paid dividends of $1.6 million, and paid $0.1 million related to other financing activities. Our reported net proceeds from borrowings on our revolving credit facilities considers the impact of foreign currency translation. During the three months ended March 31, 2024, we received net proceeds of $29.1 million from borrowings on our revolving credit facilities, purchased $13.3 million of outstanding common stock, used a net cash amount of $1.6 million related to our stock compensation arrangements, paid dividends of $1.7 million, and paid $0.1 million related to other financing liabilities.
Current wording
Net cash provided by financing activities was $13.7 million and $9.3 million for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025, we received net proceeds of $22.2 million from borrowings on our revolving credit facilities, paid $1.3 million for debt financing fees, purchased $2.3 million of our outstanding common stock, used a net cash amount of $1.8 million related to our stock compensation arrangements, paid dividends of $3.3 million, and received $0.2 million related to other financing activities. Our reported net proceeds from borrowings on our revolving credit facilities considers the impact of foreign currency translation. During the six months ended June 30, 2024, we received net proceeds of $31.3 million from borrowings on our revolving credit facilities, purchased $16.9 million of outstanding common stock, used a net cash amount of $1.6 million related to our stock compensation arrangements, paid dividends of $3.3 million, and paid $0.2 million related to other financing liabilities.
Previous wording
For the three months ended March 31, 2025, our consolidated subsidiaries that do not guarantee the Senior Notes represented 31% of the total of guarantor and non-guarantor net sales, treating each as a consolidated group and excluding intercompany transactions between guarantor and non-guarantor subsidiaries. In addition, our non-guarantor subsidiaries represented 38% and 19% of the total guarantor and non-guarantor assets and liabilities, respectively, as of March 31, 2025, treating the guarantor and non-guarantor subsidiaries each as a consolidated group.
Current wording
For the six months ended June 30, 2025, our consolidated subsidiaries that do not guarantee the Senior Notes represented 31% of the total of guarantor and non-guarantor net sales, treating each as a consolidated group and excluding intercompany transactions between guarantor and non-guarantor subsidiaries. In addition, our non-guarantor subsidiaries represented 39% and 18% of the total guarantor and non-guarantor assets and liabilities, respectively, as of June 30, 2025, treating the guarantor and non-guarantor subsidiaries each as a consolidated group.
Previous wording
Amounts drawn under our revolving credit facility fluctuate daily based upon our working capital and other ordinary course needs. Availability under our revolving credit facility depends upon, among other things, compliance with our Credit Agreement's financial covenants. Our Credit Agreement contains various negative and affirmative covenants and other requirements affecting us and our subsidiaries, including the ability to, subject to certain exceptions and limitations, incur debt, liens, mergers, investments, loans, advances, guarantee obligations, acquisitions, asset dispositions, sale-leaseback transactions, hedging agreements, dividends and other restricted payments, transactions with affiliates, restrictive agreements and amendments to charters, bylaws, and other material documents. The terms of our Credit Agreement require us and our subsidiaries to meet certain restrictive financial covenants and ratios computed quarterly, including a maximum total net leverage ratio (total consolidated indebtedness plus outstanding amounts under the accounts receivable securitization facility, less the aggregate amount of certain unrestricted cash and unrestricted permitted investments, as defined, over consolidated EBITDA, as defined) and a minimum interest expense coverage ratio (consolidated EBITDA, as defined, over the sum of consolidated cash interest expense, as defined, and preferred dividends, as defined). Our permitted total net leverage ratio under the Credit Agreement is 4.00 to 1.00 as of March 31, 2025. If we were to complete an acquisition which qualifies for a Covenant Holiday Period, as defined in our Credit Agreement, then our permitted total net leverage ratio cannot exceed 4.50 to 1.00 during that period. Our actual total net leverage ratio was 2.67 to 1.00 at March 31, 2025. Our permitted interest expense coverage ratio under the Credit Agreement is 3.00 to 1.00 as of March 31, 2025. Our actual interest expense coverage ratio was 8.72 to 1.00 at March 31, 2025. At March 31, 2025, we were in compliance with our financial covenants.
Current wording
Amounts drawn under our revolving credit facility fluctuate daily based upon our working capital and other ordinary course needs. Availability under our revolving credit facility depends upon, among other things, compliance with our Credit Agreement's financial covenants. Our Credit Agreement contains various negative and affirmative covenants and other requirements affecting us and our subsidiaries, including the ability to, subject to certain exceptions and limitations, incur debt, liens, mergers, investments, loans, advances, guarantee obligations, acquisitions, asset dispositions, sale-leaseback transactions, hedging agreements, dividends and other restricted payments, transactions with affiliates, restrictive agreements and amendments to charters, bylaws, and other material documents. The terms of our Credit Agreement require us and our subsidiaries to meet certain restrictive financial covenants and ratios computed quarterly, including a maximum total net leverage ratio (total consolidated indebtedness plus outstanding amounts under the accounts receivable securitization facility, less the aggregate amount of certain unrestricted cash and unrestricted permitted investments, as defined, over consolidated EBITDA, as defined) and a minimum interest expense coverage ratio (consolidated EBITDA, as defined, over the sum of consolidated cash interest expense, as defined, and preferred dividends, as defined). Our permitted total net leverage ratio under the Credit Agreement is 4.00 to 1.00 as of June 30, 2025. If we were to complete an acquisition which qualifies for a Covenant Holiday Period, as defined in our Credit Agreement, then our permitted total net leverage ratio cannot exceed 4.50 to 1.00 during that period. Our actual total net leverage ratio was 2.55 to 1.00 at June 30, 2025. Our permitted interest expense coverage ratio under the Credit Agreement is 3.00 to 1.00 as of June 30, 2025. Our actual interest expense coverage ratio was 9.70 to 1.00 at June 30, 2025. At June 30, 2025, we were in compliance with our financial covenants.
Previous wording
(2) Non-recurring costs and expenses relating to diligence and transaction costs, strike related costs, severance, relocation, realignment and curtailment expenses.
Current wording
(2) Non-recurring costs and expenses relating to diligence and transaction costs, strike related costs, severance, relocation, and realignment expenses.
Previous wording
(3) Includes $0.9 million of derivative liabilities, and $1.6 million of finance leases as of March 31, 2025.
Current wording
(3) Includes $17.1 million of derivative liabilities, and $1.6 million of finance leases as of June 30, 2025.
Previous wording
At March 31, 2025, we had $38.5 million outstanding under our revolving credit facility and had $205.2 million potentially available after giving effect to $6.3 million of letters of credit issued and outstanding. At December 31, 2024, we had $1.5 million outstanding under our revolving credit facility and had $292.2 million potentially available after giving effect to $6.3 million of letters of credit issued and outstanding. Our letters of credit are used for a variety of purposes, including support of certain operating lease agreements, vendor payment terms and other subsidiary operating activities, and to meet various states' requirements to self-insure workers' compensation claims, including incurred but not reported claims. After consideration of leverage restrictions contained in the Credit Agreement, as of March 31, 2025 and December 31, 2024, we had $207.4 million and $216.7 million, respectively, of borrowing capacity available for general corporate purposes.
Current wording
At June 30, 2025, we had $28.6 million outstanding under our revolving credit facility and had $215.1 million potentially available after giving effect to $6.3 million of letters of credit issued and outstanding. At December 31, 2024, we had $1.5 million outstanding under our revolving credit facility and had $292.2 million potentially available after giving effect to $6.3 million of letters of credit issued and outstanding. Our letters of credit are used for a variety of purposes, including support of certain operating lease agreements, vendor payment terms and other subsidiary operating activities, and to meet various states' requirements to self-insure workers' compensation claims, including incurred but not reported claims. Our borrowing capacity was not reduced by leverage restrictions contained in the Credit Agreement as of June 30, 2025. After consideration of leverage restrictions contained in the Credit Agreement, as of December 31, 2024, we had $216.7 million of borrowing capacity available for general corporate purposes.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
The following table summarizes financial information for our reportable segments for the six months ended June 30, 2025 and 2024 (dollars in thousands):
Current report — wording carried from elsewhere
The following table summarizes detail on the year-over-year sales growth percentages for our reportable segments for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024:
Current report — wording carried from elsewhere
Packaging. Net sales increased $11.1 million, or 8.4% (of which 7.9% was organic and 0.5% was foreign currency exchange), to $143.0 million in the three months ended June 30, 2025, as compared to $131.9 million in the three months ended June 30, 2024. Sales of dispensing products used primarily for beauty, personal care and home care applications increased by $13.4 million. Sales of products used for industrial applications increased by $0.2 million and sales of other consumer goods products increased by $3.2 million. These increases were partially offset by the decrease in sales of products used in food and beverage applications of $6.3 million, primarily due to reduced demand for certain dairy applications in North America and beverage closure applications in Europe. Net sales increased by $0.6 million due to currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of the weakening of the U.S. dollar relative to foreign currencies, as compared to second quarter 2024.
Current report — wording carried from elsewhere
Corporate. Corporate expenses consist of the following (dollars in millions):
Current report — wording carried from elsewhere
Net income increased by $13.1 million, to $29.1 million, for the six months ended June 30, 2025, compared to $16.1 million for the six months ended June 30, 2024. The increase was primarily the result of an increase in operating profit of $18.6 million and a decrease in interest expense of $1.1 million, partially offset by a $6.6 million increase in income tax expense.
Current report — wording carried from elsewhere
See below for a discussion of operating results by segment.
Current report — wording carried from elsewhere
Aerospace. Net sales for the six months ended June 30, 2025 increased $47.2 million, or 32.5% (of which 25.7% was organic, 6.9% related to acquisitions, and (0.1)% was foreign currency exchange), to $192.2 million, as compared to $145.1 million in the six months ended June 30, 2024. Acquisition-related sales growth from our February 2025 acquisition of GMT Aerospace was $10.0 million. Sales of our fasteners products increased by $26.1 million due to increases in aircraft build rates, improved production yield and commercial actions. Sales of our engineered components products increased by $11.1 million due to improved production throughput.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In March 2025, we amended our existing credit agreement ("Credit Agreement") to extend the maturity date through March 31, 2030. We incurred fees and expenses of $1.3 million related to the amendment, all of which was capitalized as debt issuance costs. We also recorded $0.1 million of non-cash expense related to the write-off of previously capitalized deferred financing fees.