Barnes Group Inc. Reports Third Quarter 2024 Financial Results
Barnes Group Inc. (NYSE:B), a global leader in high-tech industrial products and services, has released its financial performance for the third quarter of 2024.
Key Financial Metrics
| Metric | Q3 2024 | Year-over-Year | Consensus Estimates |
|---|---|---|---|
| Total Revenue | $388 million | +7% | $380.31 million |
| GAAP Earnings Per Share (EPS) | -$0.04 | - | - |
| Adjusted EPS | $0.09 | -52% | $0.39 |
| Operating Margin | 10.8% | - | - |
| Adjusted Operating Margin | 12.3% | +150 bps | - |
| Adjusted EBITDA Margin | 19.8% | +140 bps | - |
In summary, Barnes Group Inc. exceeded consensus revenue estimates, reporting $388 million, a 7% increase year-over-year. However, the adjusted earnings per share fell short of expectations, decreasing 52% year-over-year to $0.09, compared to the consensus estimate of $0.39. Operating metrics showed improvement, with a rise in adjusted operating and EBITDA margins.
Segment Revenue Performance
| Segment | Revenue | Year-over-Year | Organic Growth |
|---|---|---|---|
| Aerospace | $232 million | +49% | +9% |
| Industrial | $156 million | -24% | +1% |
In aerospace, revenue continued to climb sharply, driven by a significant increase in both OEM and aftermarket sales, with organic growth contributing 9%. The industrial segment faced challenges mainly due to divestitures but achieved a marginal 1% organic growth.
Key Developments and Operational Highlights
- Barnes has entered a definitive agreement to be acquired by Apollo Funds for approximately $3.6 billion.
- Aerospace OEM backlog increased 19% sequentially, emphasizing a solid future pipeline.
- Integration of MB Aerospace progressing ahead of schedule.
Executive Commentary
Thomas J. Hook, CEO of Barnes, pointed out the robust performance in the aerospace aftermarket and noted the strategic efforts in integrating MB Aerospace to capitalize on future industry growth. He also highlighted the company's planned acquisition by Apollo Funds as a milestone that is aligned with Barnes' strategy for long-term growth.
Forward Guidance
Due to the pending acquisition by Apollo Funds, Barnes has suspended its financial guidance for the remainder of the fiscal year and canceled its third quarter earnings call.
Stock Price Movement
Following the earnings release, the stock price remained unchanged (0.0% change).
These developments underscore Barnes' strategic focus on scaling its aerospace segment and navigating its impending acquisition. Despite some financial performance challenges, particularly in earnings, the company appears well-positioned for a transformative period under new ownership.
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