SG&A Efficiency Analysis: Comparing Howmet Aerospace Inc. and Westinghouse Air Brake Technologies Corporation

SG&A Efficiency: A Tale of Two Giants

In the competitive landscape of aerospace and transportation, Howmet Aerospace Inc. and Westinghouse Air Brake Technologies Corporation (WAB) have showcased contrasting strategies in managing their Selling, General, and Administrative (SG&A) expenses over the past decade. 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 reflects a strategic shift towards leaner operations. In contrast, WAB's SG&A expenses surged by 250%, reaching 1.139 billion in 2023. This increase suggests a robust investment in administrative capabilities, possibly to support expansion and innovation. The divergence in these financial strategies highlights the different paths these industry leaders are taking to maintain their competitive edge. As the market evolves, monitoring these trends will be crucial for stakeholders and investors alike.