Who Optimizes SG&A Costs Better? Howmet Aerospace Inc. or Ferguson plc

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive world of aerospace and building materials, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Howmet Aerospace Inc. and Ferguson plc, two industry leaders, have shown contrasting strategies over the past decade. From 2014 to 2023, Ferguson plc's SG&A expenses surged by approximately 1,200%, peaking in 2023. This increase reflects their aggressive expansion and market penetration strategies. In contrast, Howmet Aerospace Inc. demonstrated a more conservative approach, reducing their SG&A costs by about 55% over the same period, indicating a focus on efficiency and cost control.

While Ferguson's strategy might suggest a robust growth trajectory, Howmet's cost optimization could lead to higher profit margins. The absence of 2024 data for Howmet leaves room for speculation on their future strategy. As these companies navigate their respective industries, their SG&A management will be a key indicator of their financial health and strategic direction.