SG&A Efficiency Analysis: Comparing Howmet Aerospace Inc. and Quanta Services, Inc.

SG&A Efficiency: A Tale of Two Giants

In the competitive landscape of aerospace and infrastructure services, Howmet Aerospace Inc. and Quanta Services, Inc. stand out with their distinct approaches to managing Selling, General, and Administrative (SG&A) expenses. Over the past decade, Quanta Services has demonstrated a remarkable 168% increase in SG&A efficiency, with expenses rising from approximately $580 million in 2014 to $1.56 billion in 2023. In contrast, Howmet Aerospace saw a 55% decrease, with expenses dropping from $770 million in 2014 to $343 million in 2023. This divergence highlights Quanta's aggressive expansion strategy, while Howmet focuses on cost optimization. As the industry evolves, these trends offer valuable insights into strategic financial management, underscoring the importance of balancing growth with operational efficiency.