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Date
Tuesday, July 29, 2025 at 2:00 p.m. ET
Call participants
Chief Executive Officer — Thomas Snyder
Chief Financial Officer — Teresa Finley
Vice President, Investor Relations and Communications — Sherry Lauderback
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Takeaways
Consolidated net sales—Consolidated net sales reached $275 million in the fiscal second quarter ended June 30, 2025, increasing more than 14% year-over-year, with organic growth above 13% when adjusting for currency, acquisitions, and dispositions.
Operating income—Consolidated operating income rose by over 50%, or $11 million, year-over-year in the fiscal second quarter ended June 30, 2025, compared to the same period in 2024, with operating margin expanding 300 basis points, led by improvements in all segments and especially aerospace.
Adjusted EBITDA—Adjusted EBITDA increased 31% to nearly $48 million in the fiscal second quarter ended June 30, 2025; margin rose 220 basis points to 17.4%.
Adjusted earnings per share (EPS)—Adjusted earnings per share increased 42% year-over-year to 61¢.
Net debt and leverage—Net debt declined sequentially from the fiscal first quarter of 2025, reducing net leverage to 2.4x as of June 30, 2025, from 2.6x at year-end 2024.
Packaging segment sales—Organic sales were up nearly 8% in the fiscal second quarter ended June 30, 2025, driven by strength in Beauty and Personal Care dispensers, partially offset by weaker closures and flexibles due to softness in food and beverage markets.
Packaging margins—Operating profit margin improved 30 basis points to 14.3% in the fiscal second quarter ended June 30, 2025; adjusted EBITDA margin increased 70 basis points to 20.9%.
Aerospace segment sales—Achieved a record $100 million in revenue in the fiscal second quarter ended June 30, 2025, growing over 32% year-over-year, supported by strong demand, acquisitions, and improved throughput.
Aerospace margins—Operating margin for the aerospace segment expanded by 650 basis points year-over-year in the fiscal second quarter ended June 30, 2025; LTM adjusted EBITDA margin now exceeds 21% for the twelve months ended June 30, 2025.
Specialty product sales—Segment sales declined 6.8% year-over-year in the fiscal second quarter ended June 30, 2025, due to the $45.4 million divestiture of AeroEngine in January 2025, despite 13% year-over-year sales growth at Norris Cylinder.
Specialty product margins—Segment operating profit more than doubled in the fiscal second quarter ended June 30, 2025, with operating profit margin improving by 250 basis points year-over-year, driven by higher sales, improved absorption of fixed costs, and benefits from previous cost reduction initiatives at Norris Cylinder.
2025 guidance update—Management now projects full-year sales growth of 8%-10% over 2024 and raises full-year adjusted EPS guidance to $1.95–$2.10 for fiscal 2025, corresponding to a 25% midpoint increase in full-year adjusted earnings per share guidance compared to 2024 actuals.
Tariff and cost environment—Management highlighted the global tariff landscape as the most significant external factor for packaging in 2025 and is proactively working with suppliers and customers to manage exposures.
Capital structure—No long-term debt maturities are due before 2029, supporting strategic flexibility.
Strategic priorities—CEO Thomas Snyder is prioritizing global standardization, acquisition integration, and automation investments to drive enterprise synergies and margin expansion.
Summary
Management attributed the quarter's outperformance to improved operational efficiency, margin discipline, and targeted commercial actions across all business units. Thomas Snyder outlined a strategic focus on consolidation, process standardization, and deeper integration of recent acquisitions as levers to unlock future scale and profitability. Guidance for fiscal 2025 was revised upward, reflecting sustained momentum in aerospace and packaging, as well as confidence in continued margin expansion efforts.
Snyder said, "we're in the process of figuring out how we're going to maximize, you know, the current portfolio that we have. As you know, we've engaged in that process to study that and figure out what's best long term."
Sherry Lauderback noted that the aerospace team's capacity challenge is "more on the people side" rather than equipment, with the demand outlook described as "looking good for the next couple of years."
Management addressed seasonality, indicating anticipated volume moderation in the second half (third and fourth quarters of 2025) for aerospace and packaging due to seasonal trends and prior-period unique one-time customer benefits.
Aerospace organic sales growth is now expected to exceed 20% for full year 2025, with a projected margin improvement of over 400 basis points relative to 2024, driven by backlog and operational execution.
IT investments—specifically new ERP platforms—are being deployed to facilitate business process standardization and future margin gains.
Industry glossary
AeroEngine: Previously part ofTriMas(TRS 0.34%)'s Specialty Products segment, divested in January 2025; its absence materially reduced segment sales figures for the quarter.
Norris Cylinder:TriMas(TRS 0.34%)'s brand for steel cylinders within the Specialty Products segment, referenced as a key contributor to recent margin and revenue improvement.
ERP (Enterprise Resource Planning): Integrated IT systems to unify business processes and data, cited as a driver of future efficiency and standardization.
Full Conference Call Transcript
Thomas Snyder, our new Chief Executive Officer, who joined TriMas just over a month ago. Tom brings with him nearly 35 years of experience in the packaging industry, including a distinguished track record of leadership at Silgan. Most recently, he served as President of Silgan Containers where he led a business generating nearly $3 billion in annual sales. Under his leadership, the company achieved significant growth in sales, earnings, and cash flow. Thrilled to welcome Tom to the TriMas team. In just a short time, he's already been actively engaging across the organization and laying the groundwork for the next chapter of growth. I'm confident you'll appreciate his insights. At this point, I'll turn the call over to Tom. Tom?
Thomas Snyder: Thank you, Sherry. Good morning, everyone, and thank you for joining us today. As I join you for my first earnings call as CEO, I want to begin by expressing how truly excited and honored I am to lead this company. TriMas has a strong foundation, a proud history, and a commitment to continuous improvement. And I'm energized by the opportunity to help shape its next chapter. Stepping into this role over a month ago, I've made it a priority to listen, learn, and engage deeply with all employees at all levels across the organization. Over the past 30 plus days, I've had the opportunity to immerse myself in the business.
I'd like to take a few moments to share some of my early impressions and the key areas I've been focused on. Let's begin on slide four. First, let me walk you through what I've been focused on since stepping into this role. I've made it a priority to get out into the field and see our operations up close. Over the past month, I visited 10 of our manufacturing sites across the United States and Europe, including several packaging and aerospace facilities here in the US, as well as packaging sites in the UK, the Netherlands, and Italy.
These plants gave me invaluable insight into our day-to-day operations, the strength of our local teams, and the pride that our employees take in delivering high-quality products. I was impressed by the flexibility and diverse capabilities of our facilities, as well as the deep technical expertise embedded in our processes and with our people. I've also spent significant time with our business leadership teams, engaging in strategic discussions around what's driving our success today and what we need to do to build upon that success to accelerate our plans to stay ahead of potential market changes.
These conversations have been candid, insightful, and energizing, and they've helped me quickly get up to speed on the unique strengths and opportunities across each of our businesses. In parallel, I reviewed our current business plans and financial outlook. Working closely with our senior leaders, we've begun the early discussions of identifying both near-term actions and longer-term initiatives that can enhance our performance, whether through operational improvements, cost efficiencies, or growth through internal or external investments. From these early engagements, a few key observations stand out. First, we have incredibly talented, dedicated, and focused teams across the organization.
Whether on the shop floor, engineering, or within our commercial and support functions, I've seen a strong sense of ownership, engagement, and pride in the work being done. Second, our products and processes are often innovative and proprietary, driven by strong engineering capabilities and a culture of continuous improvement. Third, our manufacturing facilities have tremendous flexibility and capabilities well-positioned for future growth. And finally, we benefit from long-standing strategic relationships with market-leading customers who value our ability to deliver quality and reliability. We listen to our customers and develop key account plans to drive high-performance results. Looking ahead, the focus will be on building upon these strengths while driving further alignment and execution across the enterprise.
Although early in my tenure, I do see a few opportunities for improvement. Specifically, I plan to prioritize driving greater standardization across our global footprint, and our processes, systems, and operating practices. This will allow us to scale more efficiently, reduce complexity, and ensure we're leveraging the best practices across those locations. It's about creating a more agile and integrated enterprise that can respond even faster and operate smarter. Next, I believe there's an opportunity to focus on the seamless integration of some of our recent acquisitions. These businesses bring valuable capabilities and customer relationships, and we're committed to unlocking their full potential.
By aligning them with our systems and priorities, I believe we can accelerate synergies, expand our market reach, and drive additional profitable growth. And finally, we continue to invest in automation and tools to enhance productivity, provide critical business data, and increase responsiveness. These investments will help us reduce costs, improve consistency, and free up our teams to focus on higher-value activities. In short, I see tremendous opportunity ahead for growth and margin expansion. I am committed to working with the teams to identify opportunities and implement actions to drive improved performance. We delivered solid results across the board. We also achieved notable margin improvement led by our aerospace group.
This margin expansion contributed meaningfully to our growth in operating income and earnings per share. The strong results this quarter are a direct reflection of your hard work and focus. With that, I'll turn it over to Teresa to walk through our financial and segment results for the quarter. Teresa?
Teresa Finley: With consolidated net sales of $275 million, up more than 14% year over year. Excluding the impact of currency and acquisitions and dispositions, organic growth was more than 13% for the quarter. The acquisition of GMP Aerospace, now known as TriMas Aerospace Germany, more than made up for the loss of $5.4 million in sales related to the divestiture of AeroEngine in the Specialty Products segment. Consolidated operating income increased by more than 50% compared to Q2 2024, or $11 million, reflecting the strong revenue growth and expanded operating margin of 300 basis points with improvements in all segments, led by aerospace.
This correlated to a meaningful increase in consolidated adjusted EBITDA, which was up 31% to nearly $48 million, and a margin improvement of 220 basis points to 17.4%. Our adjusted earnings per share increased to 61¢, representing 42% growth year over year. All of our businesses contributed to these results with a strong focus across the organization on operational efficiency initiatives, revenue quality, and providing innovative solutions for our customers. Turning to the balance sheet and our capital position on slide seven. We continue to manage a strong and flexible balance sheet supported by low interest rates and long-term debt with no maturities due until 2029.
Net debt declined sequentially from Q1 2025 as we continued to pay down the increase resulting from the GMT Aerospace acquisition. As a result of the higher earnings and efforts to pay down debt, our net leverage as of 06/30/2025 decreased to 2.4 times as compared to 2.6 times at the end of 2024. This improvement reflects our enhanced operating performance and disciplined working capital management, supporting both near-term operations and future strategic investments. I will now shift gears to provide additional color on our Q2 segment performance, starting with Packaging on Slide eight.
In our packaging segment, we achieved organic sales growth after adjusting for currency effects of nearly 8%, reflecting continued demand strength for dispensers for the Beauty and Personal Care market. This growth was partially offset by slower growth in our closures and flexibles product lines due to some weakness in the food and beverage markets. Second quarter operating profit margin improved 30 basis points to 14.3%, while adjusted EBITDA margin improved 70 basis points to 20.9%, driven by sales leverage, operational efficiencies, and continued cost management. Our teams also successfully navigated direct tariff impacts through proactive commercial actions, including strategic pricing adjustments and supplier negotiations. Looking ahead, we remain confident in the trajectory of our packaging business.
For the full year 2025, we continue to expect GDP plus sales growth supported by recent customer wins and steady demand across most end markets. We also anticipate modest margin expansion compared to 2024, as we continue to drive operational discipline and leverage efficiencies. During 2025, the most significant external factor we are monitoring, like many in the packaging industry, is the evolving global tariff environment. In the near term, we are actively working with both suppliers and customers to mitigate exposure and manage cost impacts through strategic sourcing and commercial actions. Overall, we are encouraged by the progress made in the packaging segment this quarter and remain optimistic about its long-term growth potential.
Turning to slide nine, I'll review our aerospace segment. During Q2, our aerospace group had a record sales quarter of about $100 million in revenue, with a growth rate of 32% plus. This was driven by continued increasing demand in the aerospace and defense market, improved throughput against a strong order book, successful contract management, and acquisition-related sales of $6.7 million related to the acquisition of TAG. Our operating profit nearly doubled year over year with margin expansion of 650 basis points, and our LTM adjusted EBITDA margin now exceeds 21%, surpassing pre-pandemic levels.
This outstanding performance was largely driven by the aerospace team's execution, including accelerated factory floor and operational excellence improvements, procurement initiatives, and our ability to capitalize on market opportunities by delivering innovative solutions to our customers. As a result of the strong first-half performance, we now expect organic sales growth of 20% plus for the full year 2025 and an improvement in margin of 400 plus basis points compared to 2024. We also remain excited about the longer-term growth outlook given our backlog and continued focus on customer solutions, which we expect will drive growth in 2026 and beyond. We continue to prioritize incremental capital investments to support this growth and to accelerate further operational improvements for TriMas Aerospace.
If we turn to slide 10, I will now cover our specialty product segment. Norris Cylinder delivered 13% year-over-year sales growth, reflecting solid underlying demand and quarterly year-over-year sales growth for the first time since 2023. However, this was more than offset by the $45.4 million reduction in sales resulting from the January 2025 divestiture of AeroEngine. As a result, the specialty product segment experienced overall sales down 6.8% year over year. Despite the impact of the divestiture, operating profit more than doubled and improved 250 basis points year over year, driven by higher sales and absorption of fixed costs and the benefits of previous cost reduction initiatives at Norris Cylinder, offsetting the unfavorable inventory capitalization changes in the quarter.
We expect these unfavorable impacts to subside as we continue to work through absorbed manufacturing overhead from the prior year period. With that said, we expect mid-single-digit sales growth for Norris Cylinder for the full year 2025, with margins relatively flat to slightly up year over year. As a result of improving order intake, combined with prior cost restructuring actions, we expect to accelerate Norris Cylinder's recovery performance as we move through the second half of the year. I will now turn the call back to Tom to provide further details on our outlook.
Thomas Snyder: Thank you, Teresa. Let's now turn to slide 11. As highlighted in our press release this morning, we are raising our 2025 outlook. Following a strong first half of the year, we are increasing both our full-year sales and earnings per share guidance, supported by continued strength in our aerospace business and positive trends within products. We now expect full-year sales growth of 8 to 10% compared to 2024 and full-year adjusted earnings per share of $1.95 to $2.10. At the midpoint of our new guidance, we are now driving toward a 25% increase in earnings per share compared to $1.65 for the full year 2024.
While we expect much of our positive momentum to continue, the changing tariff environment continues to present uncertainty in customer order patterns and consumer demand, which we continue to monitor. With that said, we continue to take proactive steps to mitigate the impact and remain focused on driving ongoing performance improvement. Before turning to Q&A, I would like to once again state how pleased I am to be at TriMas and how excited I am about the company's future potential. While each business is at a different phase in its respective cycle, TriMas Packaging, TriMas Aerospace, and Norris Cylinder are all well-positioned to deliver a bright future.
I'm excited about what we can accomplish together, and I look forward to working with our teams, our customers, and all of our investors to deliver long-term value. Thank you. And with that, I will turn the call back to Sherry.
Sherry Lauderback: Thanks, Tom. At this point, we would like to open up the call to questions from our analysts. Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. One moment, please, while we poll for questions. Ken Newman with KeyBanc Capital Markets.
Ken Newman: Hi. Good morning, guys.
Sherry Lauderback: Hi. Good morning. Morning.
Ken Newman: Hi, Tom. Congrats on the new position.
Thomas Snyder: Thank you very much.
Ken Newman: So I pre yeah. Of course. Appreciate all the prepared comments on your key focus areas, coming into the organization.
Hamed Khorsand: I know you've only been there for a little over a month now, but, you know, I think the biggest question that I get from investors particularly recently, is what does a portfolio kinda look like over the intermediate to longer term? You know, coming in, I'm sure you saw a lot of great things out of the packaging segment, but I'm curious how you think about the portfolio as it is today. And if you have any comments or thoughts on what that portfolio could look like, you know, and maybe aerospace in particular, whether you think that is a longer-term pillar of the growth strategy in coming years?
Thomas Snyder: Well, you know, thanks for the question. I forgot to mention that I was gonna ask you guys to be easy on me. But, anyways yeah. So the portfolio today, what we're focused on is maximizing that portfolio. We're looking at three really good businesses, and we're working on operational improvements. We're working on how we can take costs out of those businesses and how we can expand our positions commercially with our customers. And so we have businesses that have not been, let's say, fully integrated or maximized. And so that's been kinda my focus as I've gone through these different plants, and I've seen a lot of them as I said over the last couple of weeks.
And so I see the potential there. You know, we're in the process of figuring out how we're going to maximize, you know, the current portfolio that we have. As you know, we've engaged in that process to study that and figure out what's best long term. And we're continuing to work on that. In the meantime, we're gonna continue to focus on doing what we do and do it the best we can.
Hamed Khorsand: Maybe just switching over to the guidance, the implied operating margins for aero may be down from the first half or from 2Q levels into the back half. One, is that kind of the right way to think about it? And if so, any help on what's kind of driving the moderation in the operating leverage there? Is that just some pullback on the volumes? Is there a mix impact there?
Sherry Lauderback: Yes. Thanks, Ken. Yes, you've got it right. There is some pullback in Q3, Q4. Most of that is due to our seasonal trends, both for aerospace and packaging. I would say that both businesses also had some unique one-time customer benefits and growth in Q4 that we don't plan on repeating. So it is a bit more moderated in the back end, but we're confident in our expectations on the range and what we've got going on in both those businesses. Yep.
Hamed Khorsand: That's helpful. Maybe just one last one, and I'll jump back into the queue. You talked about ramping up on the capital investment for the Airbus contract starting in '26. Is there any way to help I know you're not ready to guide to '26 yet, but is there any way to help us size, you know, for Aero in particular, just from that contract, sizing what top line could look like just from the contract as it ramps up?
Sherry Lauderback: Yeah. I think we'll defer that for 2026 guidance, but as we've previously discussed with Airbus, you know, we look at ramping up in 2026, the phase-in, phase-out program. Then we'll have a larger step increase in 2027. So it's gonna be a several-year process. We're really excited about that commercial deal. And margins will be strong. But we'll probably be able to guide you a little bit better as we get into 2026 planning.
Hamed Khorsand: Understood. Thanks.
Sherry Lauderback: Our next question comes from the line of Hamed Khorsand with BWS Financial. Please proceed with your question.
Hamed Khorsand: Hey. Good morning. I was just going to start off with the aerospace. If I could, the growth that you're seeing, how much of that was coming from the loss of capacity at your competitor? How much of that is coming from you picking up market share? And how are you adjusting the business for capacity so you can still continue to grow?
Sherry Lauderback: Thank you, Hamed, for the question. I would say the competitive issues that took place earlier in the year were really insignificant in terms of our overall growth. We are looking long-term at opportunities to position ourselves with customers for our unique product set. I would say more of this is really, you know, cross the board, market penetration, new customers that we've gained that we're really focused on, new products, and customer product innovations. Certainly have a strong market that we're playing in. And, you know, along with that is, you know, some really healthy margin expansion. But I would credit that event to be less of our growth story.
On the capacity, you know, we have plenty of machine capacity. That's really, you know, our challenge is more on the people side. Ensuring that we can bring on the right skills, resources at the right pace to drive the overall production efficiencies. You know, we could do third shifts. We're kind of some of that would be extra cost, but, frankly, we're challenged and we'll continue to be challenged to figure out how we can bring in even more because the demand is strong, and the demand is looking good for the next couple of years.
Hamed Khorsand: Great. And then on the packaging side, are you done with, you know, bottleneck issues and trying to, you know, maximize the efficiencies in this segment?
Sherry Lauderback: No. We've got I'll defer to Tom because he's spent a lot of time in packaging, but we see a lot of opportunity to continue to work on our packaging segment. We've got certainly a number of initiatives and things in place. We've got some new accounts coming on, but there's work to do to get us to that margin expansion that we were hoping for this year, and we look forward to more activities that will help us with that.
Thomas Snyder: Yeah. I would just add, you know, going around and looking at those facilities, and I mentioned it earlier in my remarks that these companies' businesses are at different phases, you know, say, in their integration and their approach to continuous improvement. Aerospace is pretty advanced on that side. And on the packaging side, you know, we have some great platforms that we can continue to build on. I see great capabilities, great machinery, great resources. But they're lagging a bit on the integration side, and they're lagging on the standardization side. And so I see that not from a disappointed perspective, but I see that as an opportunity for us to maximize these businesses.
And so I've got a lot of experience in that particular area. And so it didn't scare me at all. In fact, I was energized as I walked away from those. And said we have some great opportunities to build out for the future.
Sherry Lauderback: And, Hamed, I would just add that on the top the revenue side of that equation, there are certainly some opportunities to rationalize our products going forward. Ensure that we are positioning ourselves in the marketplace with the highest margin and best return type products. So you'll hear more about that as we move forward.
Hamed Khorsand: Okay. And then just last question. What is going to be the, you know, the new accounts receivable run rate, should we expect this to go down, or is it because sales are now gonna be at a higher rate, you know, your receivables are gonna stay at this kind of number?
Sherry Lauderback: Yeah. I think it's a little on the high side today. We should see some improvements over time. We've had a few, you know, every quarter, there seems to be a few special customer type arrangements. But underlying that, we're making good progress on those areas.
Hamed Khorsand: Okay. Thank you.
Sherry Lauderback: Our next question is a follow-up from Ken Newman with KeyBanc. Please proceed with your question.
Ken Newman: Hi. Thanks for the follow-up. Theresa or Tom, maybe give you the opportunity to see if you wanna quantify at all what the opportunity is from self-help initiatives in packaging today and just also help us frame up the magnitude of those expected benefits as is this something where you think EBIT margins in packaging could get back to that call it, low 20% range? You know, in '26, or is that too much of a hurdle?
Sherry Lauderback: Yeah. I'll answer first and let Tom jump in on what he's seeing. Know, we've got room to improve overall margins in the packaging business. I think some of that's going to tie into what our product set is going forward and the customer segments that we're going after. We're making, you know, some shifts in our approach to customers today. So I do think that there's some upside. I'm not ready to comment on, you know, what that range will be. I think it gives us a little more time. Could you give Tom a little more time to do some magic and work with the teams?
I think we will be able to guide more specifically, I think, in 2026, at least on the range for that year.
Thomas Snyder: Yeah. I mean, I would just say I don't know what the potential is yet. You know? Our business is different. Let's say the mix of it is different than it was historically. But we do think that, you know, our EBITDA rate against our peer group is strong, and so we're not ashamed of anything on that front. But there's always opportunity for improvement. And we'll work on rightsizing, you know, our cost structure, our SG&A, our capacity, footprint utilization, etcetera. And we'll improve it. I just don't know what that upper limit is. So sorry to be so vague.
Ken Newman: Yeah. No. It makes sense. Tom, I do wanna go back to the standardization comments you made before, though. Yeah. Typically, when I think about TriMas as Ricky's business in particular, you know, I think about their ability to do a lot of highly customized designs and that kind of being a primary pillar of the outsized margin performance versus the peers. Can you just talk a little bit about where the opportunities are to standardize processes there and, you know, how that doesn't necessarily impact the competitive nature of that business?
Thomas Snyder: Well, first, I wanna say that, you know, the historical Ricky business does a great job. They got the, you know, some more of a mature business. We understand that. But we have, and what we need to do is we need to look at best practice all of those operating platforms, and we need to figure out, you know, how we adopt and standardize across that. They do a great job collectively, you know, with respect to the importance of meeting customer expectations and quality and service. But we all have our own way of doing things. And that I've seen. And that's less efficient than it could otherwise be.
And so, you know, my experience in the past, you look at best practices, you figure out you don't have any pride when you acquire businesses and you look at the one you're acquiring, you look at the one you have, you say, okay. What's best? And then you standardize on that one. And so I just that process hasn't happened yet. That I can see. Maybe to some extent, but there's still room a lot of room to go there. And so that's good, though. That's, you know, we can look at those best practices, and we can figure out how to standardize it.
And then you gotta be standardized really before you can start building really good improvements on top of that. So that's in a nutshell, that's where we're at.
Sherry Lauderback: Hey, Ken. I would just also add that, you know, we have made a number of IT investments, especially this year. ERP platforms that will enable us from an IT systems perspective to certainly, to standardize and to gain some of the synergies out of those businesses. We look forward to as we deploy these systems, we look forward to capitalizing on those as we move forward.
Thomas Snyder: That is a big piece of it, and really looking forward to getting that under our belt.
Ken Newman: Yep. That makes sense. Maybe last one from me. And, Tracy, you mentioned, you know, the expectation for margins to continue to improve even into '26 especially with the volume outlook here in the near term? Is there a way to think about what you think is a normalized incremental margin through an up cycle for aerospace today?
Sherry Lauderback: You know, we like where we are. These margins, certainly that we've achieved now, certainly, there's likely a little bit more upside, but frankly, our focus is really to drive revenue through this model now. You know, focus on growth over maximizing margin. You know, I think that will give us the better returns over time. So we like where we're at. Is there some upside? We'll probably guide a little bit more of a range based on what we see in 2026.
Ken Newman: So just to clarify, the mid when you say, like, where we're at, is that kinda more in line with what you've seen in the first half on the incremental margin through an up cycle? Again, this is more of, like, an up cycle average than, you know, looking for a specific quarter or anything like that.
Sherry Lauderback: Yeah. I think that's fair, Ken. I mean, there could be a little bit upside on the incremental compared to the first half because we've been obviously performing month after month has gotten better. But I think that's a fair assumption.
Ken Newman: Got it. Thanks, guys.
Sherry Lauderback: We have no further questions at this time. I'd like to turn the floor back over to management for closing comments. Once again, thank you for joining us today and for your continued interest in TriMas. We appreciate your time and engagement, and we look forward to sharing our progress and updates with you on the next earnings call. Thank you.