Who Optimizes SG&A Costs Better? Howmet Aerospace Inc. or Axon Enterprise, Inc.

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive landscape of aerospace and defense, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Howmet Aerospace Inc. and Axon Enterprise, Inc. have taken distinct paths in optimizing these costs over the past decade. From 2014 to 2023, Howmet Aerospace's SG&A expenses have shown a downward trend, decreasing by approximately 55% from their peak in 2016. This reflects a strategic focus on cost efficiency, particularly evident in the significant reduction from 2016's high of $947 million to $343 million in 2023.

Conversely, Axon Enterprise has seen a steady increase in SG&A expenses, rising by over 800% from 2014 to 2023. This growth, from $54 million to nearly $497 million, suggests a strategic investment in scaling operations and expanding market reach. The contrasting strategies highlight the diverse approaches companies can take in managing operational costs, each with its own set of challenges and opportunities.