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The Zacks Metal Products - Procurement and Fabrication industry is well-positioned from strong demand across its varied end markets. Recent improvements in order levels, combined with strategic pricing and cost-control initiatives, are expected to help companies maintain margins despite the impact of tariffs.

Companies in the industry like AB SKF (SKFRY - Free Report), Ardagh Metal Packaging (AMBP - Free Report), Kaiser Aluminum (KALU - Free Report), and TriMas Corporation (TRS - Free Report) are expected to gain from improvement in end-market demand, efforts to gain market share, and investments in automation. Their continued focus on cost efficiency and operational improvements is expected to further enhance profitability.

About the Industry

The Zacks Metal Products - Procurement and Fabrication industry primarily comprises metal processing and fabrication service providers that transform metal into metal parts, machinery, or components used across various other industries. Their processes include forging, stamping, bending, forming, and machining, which are used to shape individual pieces of metal, and welding and assembling to join parts. Companies in the space either use one of these processes or a combination of such.

The most common raw materials utilized by metal fabrication companies include plate metal, formed or expanded metal, tube stock, welding wire or rod, and casting. Industry players serve an array of markets, including construction, mining, aerospace and defense, automotive, agriculture, oil and gas, electronics/electrical components, industrial equipment, and general consumer.

What's Shaping the Future of the Industry

Recent Growth in Order Levels Instills Optimism: Per the Fed’s last industrial production report, the aggregate production of fabricated metal products in the United States edged up 0.8% in March 2025, which followed a 0.2% rise in February 2025. This was an improvement from the contraction of 0.6% in January 2025.

Also, reports by the Institute for Supply Management indicate that the fabricated metal products industry has experienced steady growth in both new orders and production since the start of this year. This is in contrast to the broader downturn in overall orders and output across the sector in the past few months.

Strategic Pricing Actions to Tackle Cost Pressures & Tariffs: The industry had been experiencing higher prices for labor, freight, and fuel. Labor shortages for some positions are driving up labor costs. To counter these pressures, manufacturers are implementing strategic pricing adjustments, cost-reduction initiatives, and productivity enhancements. Additionally, companies are diversifying their supplier bases, modifying supply chains, and increasing prices to mitigate the impact of tariffs.

Automation & End-Market Growth to Act as Catalysts: A strong emphasis on delivering cost-effective technical solutions and adopting automation to reduce labor dependence and boost efficiency is positioning the industry for future growth. Continued innovation and product development are expected to support this momentum.

Expected growth in the end-use sectors, such as manufacturing, aerospace, and automotive, is anticipated to benefit the metal fabrication market over the next few years. Rapid industrialization in developing economies also presents growth opportunities, driving long-term demand.

The Zacks Industry Rank Indicates Bright Prospects

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates upbeat prospects in the near-term. The Zacks Metal Products - Procurement and Fabrication industry, which is a 12-stock group within the broader Industrial Products Sector, carries a Zacks Industry Rank #76, which places it at the top 31% of 246 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.

Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock market performance and valuation picture.

The Industry Versus the Broader Sector

The Zacks Metal Products - Procurement and Fabrication industry has outperformed its sector but lagged the Zacks S&P 500 composite over the past year. Over this period, the industry has grown 5.8% against the sector’s decline of 7.3%. Meanwhile, the Zacks S&P 500 composite has risen 8.4%.

One-Year Price Performance

Image Source: Zacks Investment Research

The Industry's Recent Valuation

On the basis of the forward 12-month EV/EBITDA ratio, which is a commonly used multiple for valuing Metal Products - Procurement and Fabrication companies, the industry has been trading at 16.32X compared with the S&P 500’s 24.81X and the Industrial Products sector’s forward 12-month EV/EBITDA of 19.30X. This is shown in the charts below.

Enterprise Value/EBITDA (EV/EBITDA) Forward 12-Month Ratio

Image Source: Zacks Investment Research

Enterprise Value/EBITDA (EV/EBITDA) Forward 12-Month Ratio

Image Source: Zacks Investment Research

Over the last five years, the industry has traded as high as 31.81X, as low as 5.14X, and with a median of 10.20X.

4 Metal Products - Procurement & Fabrication Stocks to Keep Tabs On

Provided below is a brief look at the previously-mentioned stocks to keep an eye on.

Kaiser Aluminum

This company posted solid first-quarter 2025 results, with adjusted EBITDA and earnings per share increasing 35% and 41% year-over-year, respectively, driven by higher pricing and its ongoing cost optimization efforts. It is nearing the completion of significant growth capital projects such as the Warrick rolling mill and the Phase VII expansion at the Trentwood rolling mill. It will provide additional capacity to support the anticipated recovery in the commercial aerospace and general engineering end markets.

Meanwhile, demand remains steady in the defense, space, and business jet sectors. In packaging applications, shipments and conversion revenues are expected to gain on rising demand for beverage and food products. Backed by multi-year contracts and a diverse end-market presence, the company is well-positioned for growth.

Efforts to lower costs, streamline operations, and enhance manufacturing efficiencies should support margin expansion. Investments in strategic growth initiatives in its aerospace/high-strength and packaging applications will also aid growth.

The Zacks Consensus Estimate for Franklin, TN-based Kaiser Aluminium’s current-year earnings has moved up 35% over the past 60 days. Earnings estimates indicate year-over-year growth of 66%. The company has a trailing four-quarter average earnings surprise of 22.2%. It currently sports a Zacks Rank #1 (Strong Buy) rating.

Price and Consensus: Kaiser Aluminum

Image Source: Zacks Investment Research

Ardagh Metal Packaging

This next company witnessed 6% growth in global shipments on strong volume growth in all markets. Backed by this, it has raised the full-year shipments forecast to 3%-4%. Adjusted EBITDA has gained 16% due to favorable volume/mix effects and lower operational and overhead costs. The company anticipates minimal impacts from tariffs on its business due to the regional nature of its supply chain.

Ardagh Metal Packaging is expected to benefit from growing demand for metal packaging. The company has enhanced its product mix over the years by replacing lower margin business with higher margin business and by pursuing growth opportunities in new and emerging end-use categories of the beverage market. Its efforts to improve operating efficiency and control costs will boost margins. 

The Zacks Consensus Estimate for Luxembourg-based Ardagh Metal Packaging’s current-year earnings has moved up 11% over the past 30 days. Earnings estimates indicate year-over-year growth of 11.11%. The company has a trailing four-quarter average earnings surprise of 37.5%, and the stock carries a Zacks Rank #2 (Buy) rating.

Price and Consensus: Ardagh Metal Packaging

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AB SKF

This company effectively countered cost inflation by adjusting pricing and improving manufacturing efficiency. It is progressing well in its strategy to simplify its portfolio. AB SKF continues to invest in technology and innovation. It has promising projects in the pipeline in several high-growth segments, such as Railway, Agriculture, and Machine Tools.

With magnetic bearings playing a central role in green industries, AB SKF is now focused on growing this business. The company had earlier concluded the strategic review of the Aerospace business and announced plans to exit areas that are non-strategic. It recently completed the divestment of its ring and seal operation, and the company is exploring options to exit the precision elastomeric device aerospace operation in Illinois.

To leverage its full potential within Aerospace, AB SKF is intensifying its focus on core segments — Aeroengine bearings and Aerostructures — through accelerated investments, including digitalization, automation, and modernization.

The Zacks Consensus Estimate for 2025 earnings for the Gothenburg, Sweden-based company has moved up 2.6% over the past 30 days. The company has a trailing four-quarter earnings surprise of 15.61%, on average. AB SKF has a long-term estimated earnings growth rate of 7.15% and a Zacks Rank #4 (Sell) rating at present.

Price and Consensus: AB SKF

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TriMas

This company’s packaging segment is benefiting from the gradual recovery in the consumer goods and industrial markets, as well as improving order intake. The Aerospace segment is poised for growth on solid backlog, order intake, and operational excellence initiatives.

The company recently closed the acquisition of Germany-based GMT Aerospace, a manufacturer of tie rods used in a range of structural aerospace applications. This move will add the first manufacturing location in Europe for the Aerospace segment. This is in sync with TriMas’ strategy to accelerate growth through acquisitions, particularly in its Packaging and Aerospace platforms. The company has a strong pipeline of products and process innovation, which will sustain long-term growth.

The Zacks Consensus Estimate for Bloomfield Hills, MI-based TriMas’ fiscal 2025 earnings indicates year-over-year growth of 10.3%. The estimate has moved up 1% over the past 30 days. The company currently carries a Zacks Rank of #2 (Buy).

Price and Consensus: TriMas

Image Source: Zacks Investment Research

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