The Zacks Metal Products - Procurement and Fabrication industry is well-positioned due to 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 Century Aluminum (CENX Quick QuoteCENX - Free Report) , Ardagh Metal Packaging (AMBP Quick QuoteAMBP - Free Report) , TriMas Corporation (TRS Quick QuoteTRS - Free Report) and GrafTech International (EAF Quick QuoteEAF - Free Report) are expected to gain from improvement in end-market demand and efforts to gain market share. 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. The companies either use one of these processes or a combination of these. 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. The 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 Metal Products - Procurement and Fabrication Industry

Industry Shows Signs Of Recovery: The Institute for Supply Management’s manufacturing index has been in contraction since March amid tariff tensions. However, the reading of 49.1% in September marked a slight increase from the 48.7% in August. Notably, the fabricated metal products industry was one of the six industries that saw growth in September. The Production Index entered expansion territory again, registering 50.3% and 3.2 percentage points higher than the 47.8% in August. Fabricated metal products were one of the eight industries that reported growth in September. Despite the overall New Orders Index remaining in contraction, the industry stood out again, with growth in new orders, reflecting renewed demand momentum. The latest data points to an encouraging recovery trend for the industry.

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.

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 seven-stock group within the broader Industrial Products Sector, currently carries a Zacks Industry Rank #19, which places it at the top 8% of 243 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.

Industry Versus 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 15.4% compared with the sector’s rise of 20.5%. Meanwhile, the Zacks S&P 500 composite has moved up 3.5%.

One-Year Price Performance

 

Industry's Current Valuation

On the basis of the trailing 12-month EV/EBITDA ratio, which is a commonly used multiple for valuing Metal Products - Procurement and Fabrication companies, the industry is currently trading at 17.38X compared with the S&P 500’s 17.93X and the Industrial Products sector’s trailing 12-month EV/EBITDA of 19.57X. This is shown in the charts below.

Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio

Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio

Over the last five years, the industry traded as high as 35.58X and as low as 4.25X, the median being 13.76X.

4 Metal Products - Procurement & Fabrication Stocks to Buy

Century Aluminum: The company has invested $50 million to restart more than 50,000MT of idled production at its Mt. Holly, SC smelter. The plant is currently operating at 75% capacity and is expected to reach full production by the second quarter of 2026. This move will boost U.S. domestic aluminum production by almost 10%. CENX recently signed an extension of its power agreement with Santee Cooper to secure a stable power supply for the smelter through 2031. Century Aluminum is taking actions to increase its production to capitalize on the sustained strength in the global aluminum markets. The company plans to build the first U.S. primary aluminum smelter in five decades. Upon completion, the smelter would double the size of the current U.S. primary aluminum industry. The company has been benefiting from the management of controllable costs. These initiatives are expected to support its bottom line in the near future.  

The Zacks Consensus Estimate for Chicago, IL-based CENX’s current-year earnings has moved up 29% over the past 90 days. CENX currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: CENX

Ardagh Metal Packaging: The company witnessed more than 3% growth in global shipments so far in 2025, with the beverage can gaining share. Backed by this, it expects full-year shipments growth of around 3%. AMBP also continues to see improvement in adjusted EBITDA driven by lower operational and overhead costs and favorable category mix, and recently lifted its adjusted EBITDA guidance for 2025 to $720-$735 million. 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 remained unchanged over the past 90 days. Earnings estimates indicate year-over-year growth of 5.6%. The company has a trailing four-quarter average earnings surprise of 44.6% and currently carries a Zacks Rank of 2.

Price and Consensus: AMBP

TriMas: The company’s packaging segment is benefiting from solid demand across the beauty and personal care markets. The Aerospace division is gaining from rising industry build rates, recent contract wins, favorable commercial initiatives and the strategic acquisition of TriMas Aerospace Germany (“TAG”) in the first quarter of 2025. Segment margins are improving on the back of higher sales conversion, pricing actions and operational efficiency programs. Buoyed by its robust performance so far this year, TriMas now anticipates consolidated sales growth to be at the higher end of its prior stated 8- 10% range for full-year 2025. A strong pipeline of innovative products and process enhancements positions the company well for sustained long-term growth. 

The Zacks Consensus Estimate for Bloomfield Hills, MI-based TriMas’ fiscal 2025 earnings indicates year-over-year growth of 23%. The estimate has moved up 12% over the past 90 days. The company currently carries a Zacks Rank of 2.

Price and Consensus: TRS

GrafTech International: The company’s sales volume rose 9% year over year in the third quarter of 2025. Growth was particularly strong in the United States, where volume surged 53%, underscoring the success of EAF’s strategy to shift its geographic sales mix toward this key market. EAF now expects to achieve an 8-10% year-over-year increase in sales volume for 2025, driven by its efforts to gain market share. The company also achieved a 10% year-over-year reduction in cash cost of goods sold per metric ton demonstrating its ability to effectively manage production costs across varying demand levels. In the United States, the landscape for the steel industry remains favorable and steel output is expected to increase in the coming year. In Europe, the recently announced trade policy measures will aid recovery. By leveraging its vertically integrated production model and continuing to optimize its geographic sales mix, GrafTech is well-positioned to capitalize on long-term growth opportunities in the global steel sector.

The Zacks Consensus Estimate for Brooklyn Heights, OH-based GrafTech International has a trailing four-quarter earnings surprise of 0.7%, on average. EAF currently carries a Zacks Rank of 2.

Price and Consensus: EAF