SG&A Cost Management: A Tale of Two Companies

In the competitive landscape of aerospace and climate control industries, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Howmet Aerospace Inc. and Lennox International Inc. have shown contrasting approaches over the past decade.

Howmet Aerospace Inc.

From 2014 to 2023, Howmet Aerospace's SG&A expenses fluctuated significantly. Notably, in 2020, expenses plummeted to approximately 37% of their 2016 peak, reflecting strategic cost-cutting measures. However, by 2023, expenses rebounded to 46% of the 2014 levels, indicating a potential shift in strategy or market conditions.

Lennox International Inc.

Conversely, Lennox International maintained a more stable SG&A trajectory. From 2014 to 2023, expenses increased by about 23%, peaking in 2024. This steady rise suggests a consistent investment in administrative capabilities, possibly to support growth.

In conclusion, while Howmet Aerospace demonstrates aggressive cost management, Lennox International's steady increase in SG&A expenses may reflect a strategic focus on long-term growth.