Have you looked into how Barnes Group (B) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this aerospace and industrial parts supplier, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-----------------------------------------------------------------------------|------------------------------------------------------------------------|------------------ ...

Core Viewpoint - Barnes Group Inc. reported adjusted earnings of 37 cents per share for Q2 2024, missing the Zacks Consensus Estimate of 39 cents, and reflecting a 36% year-over-year decrease [1] Financial Performance - Total sales reached $382 million, falling short of the Zacks Consensus Estimate of $399 million, but showing a 13% year-over-year increase with organic sales growth of 5% [2] - Industrial segment sales were $164 million, down 24% year over year, while organic sales increased by 3% [2] - Aerospace segment sales totaled $218 million, up 79% year over year, with organic sales increasing by 8% and acquisition-boosted sales contributing 75% [2] - Cost of sales increased by 14.9% year over year to $258.2 million, while selling and administrative expenses decreased by 6.4% to $82.7 million [3] - Adjusted operating income was $47.6 million, up 9.5% year over year, but the margin decreased by 40 basis points to 12.4% [3] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q2 were $65.9 million, down from $89.8 million at the end of 2023, while long-term debt decreased to $1.15 billion from $1.23 billion [4] - In the first half of 2024, net cash generated from operating activities was $3.1 million, a significant drop from $42.5 million in the same period last year [4] - Capital expenditures rose by 38.1% year over year to $29.9 million, resulting in a free cash outflow of $26.8 million compared to a free cash inflow of $20.9 million a year ago [4] - Shareholder dividends amounted to $16.2 million, nearly flat year over year [4] 2024 Outlook - The company expects total sales to increase by 10-12% year over year, with organic sales growth projected at 4-6% [5] - Adjusted operating margin is estimated to be between 12-14%, and adjusted EBITDA margin is projected at 20-22% [5] - Adjusted earnings are anticipated to be in the range of $1.55-$1.75 per share, with the consensus estimate at $1.72 per share [5] - Capital expenditure is projected to be between $55 million and $65 million, with adjusted free cash flow expected to be between $45 million and $55 million [5]

Monty Rakusen/DigitalVision via Getty ImagesInvestment thesis for Barnes Group Investors voted with their feet on July 26, when the Barnes Group Inc. (NYSE:B) earnings report fell short on two key measures. But there is more going on than just missing the consensus estimates. There are credible reports that the company is “exploring its options”, such as looking for a buyer. And while we await confirmation one way or the other, Barnes continues the transformation process, to make itself more growth and ...

Financial Data and Key Metrics Changes - For Q2 2024, revenue was $382 million, an increase of 13% reported and 5% organic [9][18] - Adjusted EBITDA grew 14% to $76 million, with an adjusted EBITDA margin of 20%, up 20 basis points [9][18] - Adjusted net income per share was $0.37 compared to $0.58 a year ago [18] Business Line Data and Key Metrics Changes - Aerospace segment sales were $218 million, up 79% reported and 8% organic, with OEM organic sales increasing by 1% and aftermarket organic sales increasing by 19% [19][20] - Industrial segment sales were $164 million, down 24% reported due to the divestiture of Associated Spring and Hanggi, but organic sales were up 3% [22][23] Market Data and Key Metrics Changes - Aerospace now contributes two-thirds of adjusted EBITDA, reflecting the impact of the MB Aerospace acquisition [9][12] - The company anticipates continued strong growth in the aftermarket due to high air travel demand and extended aircraft utilization [14][15] Company Strategy and Development Direction - The company is executing a three-pillar strategy focusing on core business execution, scaling aerospace, and rationalizing industrial operations [7][11] - The divestiture of Associated Spring and Hanggi is part of the strategy to unlock enterprise value [9][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in the OEM market due to supply chain bottlenecks and labor efficiency issues, leading to a more conservative outlook for 2024 [12][13][25] - Despite the challenges, the long-term demand in the aerospace sector remains strong, and the company is positioned to capture increased aftermarket activity [12][27] Other Important Information - The company is targeting annualized savings of $38 million by the end of 2024 and $42 million by the end of 2025 through cost mitigation actions [11] - The net debt-to-EBITDA ratio was 3.48 times at quarter end, with a goal to achieve a leverage ratio of 3 times or lower by the end of 2024 [24] Q&A Session Summary Question: Can you provide more detail on the Aerospace margins in Q2? - Management noted that while aftermarket sales were robust, productivity challenges on the OEM side impacted overall margins [30][31] Question: How do you view cash conversion for 2025? - Management indicated that the current cash flow issues are related to increased working capital and expect to return to normal cash conversion rates in the future [32][33] Question: What is the outlook for the Aerospace OEM side? - Management highlighted internal productivity issues and supply chain challenges as factors affecting the OEM outlook, but emphasized that they are not a rate-limiting step [35][36][46] Question: Can you elaborate on strategic options for the company? - Management confirmed they are actively evaluating strategic options and have made significant operational changes, including acquisitions and divestitures [38][39] Question: What gives confidence in maintaining the industrial guidance? - Management cited major investments in transforming the industrial portfolio and confidence in the new management teams to execute effectively [41][42]

Core Insights - Barnes Group reported revenue of $382.23 million for the quarter ended June 2024, reflecting a year-over-year increase of 12.8% [1] - The earnings per share (EPS) for the quarter was $0.37, down from $0.58 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $398.8 million, resulting in a surprise of -4.15% [1] - The EPS also missed the consensus estimate of $0.39, with a surprise of -5.13% [1] Financial Performance Metrics - Net Sales in the Industrial segment were $164.27 million, exceeding the average estimate of $158.75 million, but showing a decline of 24.3% compared to the year-ago quarter [2] - Net Sales in the Aerospace segment were $217.96 million, below the average estimate of $240.08 million, but representing a significant increase of 78.6% year-over-year [2] - Non-GAAP Operating Profit for the Industrial segment was $15.25 million, slightly above the estimated $14.89 million [2] - Non-GAAP Operating Profit for the Aerospace segment was $32.33 million, marginally below the average estimate of $32.44 million [2] Stock Performance - Over the past month, shares of Barnes Group have returned +0.8%, contrasting with a -1.2% change in the Zacks S&P 500 composite [2] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [2]

Barnes Group (B) came out with quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.13%. A quarter ago, it was expected that this aerospace and industrial parts supplier would post earnings of $0.35 per share when it actually produced earnings of $0.38, delivering a surprise of 8.57%.Over the last fo ...

Exhibit 99.1 860.583.7070 | info@onebarnes.com onebarnes.com BARNES REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS Significant Progress Made on Transforming to an Aerospace Focused Company Comparisons are year-over-year unless noted otherwise Second Quarter 2024: • Sales of $382 million, up 13%; Organic Sales up 5% • Operating Margin of -0.6%; Adjusted Operating Margin of 12.4%, down 40 bps • Adjusted EBITDA Margin of 20.0%, up 20 bps • GAAP EPS of -$0.91; Adjusted EPS of $0.37, down 36% • Records Automation ...

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Barnes Group (B) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.Barnes Group is one of 218 individual stocks in the Indu ...

Barnes Group (B) shares ended the last trading session 7.6% higher at $41.87. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.1% loss over the past four weeks.Barnes’ rally is largely driven by optimism regarding its strong momentum in the Aerospace segment, driven by strength in the OEM business. Also, the company’s investments in product development, new technologies and manufacturing processes bode well.This a ...