Operational Costs Compared: SG&A Analysis of Howmet Aerospace Inc. and Watsco, Inc.

A Decade of SG&A Trends: Howmet Aerospace vs. Watsco

In the ever-evolving landscape of aerospace and HVAC industries, operational efficiency is key. Over the past decade, Howmet Aerospace Inc. and Watsco, Inc. have showcased contrasting trends in their Selling, General, and Administrative (SG&A) expenses. From 2014 to 2023, Howmet Aerospace saw a significant reduction in SG&A expenses, dropping by approximately 55%, from 770 million to 343 million. This decline reflects strategic cost management, especially notable during the pandemic years of 2020 and 2021.

Conversely, Watsco, Inc. experienced a steady increase in SG&A expenses, peaking at 1.22 billion in 2022, a 87% rise from 2014. This growth aligns with Watsco's expansion and market penetration strategies. The contrasting trajectories of these two companies highlight the diverse approaches to operational costs in different sectors, offering valuable insights for investors and industry analysts.