Third Quarter 2023 Earnings Release Supplement October 27, 2023 The data in this package should be read in conjunction with Barnes Group Inc.’s earnings release and periodic filings with the SEC. Safe Harbor Statement & Non-GAAP Measures THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS ...

Barnes Unlocking Value Through Execution Safe Harbor Statement and Non-GAAP Measures This Presentation Contains Forward-looking Statements ...

Part I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Presents unaudited condensed consolidated financial statements and accompanying notes for Q2 and H1 2023 and 2022 Condensed Consolidated Statements of Income (Loss) (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2023** | **2022** | **2023** | **2022** | | **Net sales** | $338,984 | $321,268 | $674,341 | $633,651 | | **Operating income (loss)** | $26,009 | $(28,187) | $49,293 | $2,926 | | **Net income (loss)** | $17,352 | $(39,552) | $30,511 | $(19,068) | | **Diluted EPS** | $0.34 | $(0.78) | $0.60 | $(0.37) | Condensed Consolidated Balance Sheet Highlights (in thousands) | | **June 30, 2023** | **December 31, 2022** | | :--- | :--- | :--- | | **Total current assets** | $766,917 | $732,304 | | **Total assets** | $2,440,679 | $2,413,730 | | **Total current liabilities** | $334,756 | $305,073 | | **Total liabilities** | $1,063,692 | $1,067,403 | | **Total stockholders' equity** | $1,376,987 | $1,346,327 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | | **Six Months Ended June 30, 2023** | **Six Months Ended June 30, 2022** | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $42,467 | $8,519 | | **Net cash used by investing activities** | $(22,190) | $(15,076) | | **Net cash used by financing activities** | $(24,090) | $(24,387) | [Note 3: Revenue](index=9&type=section&id=3.%20Revenue) Revenue is mainly recognized at shipment (**75%** in Q2 2023), with detailed disaggregation by segment and region Revenue by Segment (Three Months Ended June 30, in thousands) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Industrial | $216,969 | $212,115 | | Aerospace | $122,015 | $109,153 | | **Total** | **$338,984** | **$321,268** | Revenue by Geographic Region (Three Months Ended June 30, 2023, in thousands) | Region | Amount | | :--- | :--- | | Americas | $181,103 | | Europe | $101,422 | | Asia | $52,462 | | Rest of World | $3,997 | - As of June 30, 2023, the company had remaining performance obligations of **$292.5 million** for contracts longer than one year, with **approximately 75%** expected to be recognized as revenue in the next 12 months[39](index=39&type=chunk) [Note 7: Goodwill and Other Intangible Assets](index=14&type=section&id=7.%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill totaled **$842.2 million** as of June 30, 2023, with no impairment identified in the Q2 2023 annual test - Management performed its annual impairment testing of goodwill and indefinite-lived trade names in Q2 2023 and determined that there was no impairment[50](index=50&type=chunk)[52](index=52&type=chunk) Goodwill by Segment (in thousands) | Segment | Dec 31, 2022 | June 30, 2023 | | :--- | :--- | :--- | | Industrial | $804,686 | $811,366 | | Aerospace | $30,786 | $30,786 | | **Total** | **$835,472** | **$842,152** | [Note 8: Debt](index=15&type=section&id=8.%20Debt) Total debt was **$574.4 million**; credit facility amended for MB Aerospace acquisition, with covenant compliance maintained - On June 5, 2023, the company amended its credit agreements to facilitate the acquisition of MB Aerospace, which will increase the maximum leverage ratio to **5.50:1** post-closing, with subsequent step-downs[58](index=58&type=chunk) - As of June 30, 2023, the company was in compliance with all debt covenants. The most restrictive covenant, the Senior Debt Ratio, was **2.56 times**, below the **maximum of 3.25 times**[60](index=60&type=chunk) Debt Composition (June 30, 2023, in thousands) | Type | Carrying Amount | | :--- | :--- | | Effective Date Credit Agreement | $462,651 | | 3.97% Senior Notes | $100,000 | | Other Borrowings & Leases | $11,777 | | **Total** | **$574,428** | [Note 14: Information on Business Segments](index=23&type=section&id=14.%20Information%20on%20Business%20Segments) Operates in Industrial and Aerospace segments; Q2 2023 saw modest Industrial growth and significant Aerospace sales increase Segment Performance (Three Months Ended June 30, in thousands) | Segment | Net Sales 2023 | Operating Profit (Loss) 2023 | Net Sales 2022 | Operating Profit (Loss) 2022 | | :--- | :--- | :--- | :--- | :--- | | Industrial | $216,971 | $9,429 | $212,115 | $(48,743) | | Aerospace | $122,015 | $16,580 | $109,153 | $20,556 | - The Industrial segment's operating loss in 2022 included a **$68.2 million** goodwill impairment charge, which was absent in 2023, leading to a significant year-over-year improvement in reported operating profit[95](index=95&type=chunk)[96](index=96&type=chunk) [Note 15: Commitments and Contingencies](index=24&type=section&id=15.%20Commitments%20and%20Contingencies) Details commitments, primarily the pending **$740 million** cash acquisition of MB Aerospace, expected to close by year-end - On June 5, 2023, the company entered into an agreement to acquire MB Aerospace for **$740 million** in cash. The transaction is expected to close by the end of 2023[102](index=102&type=chunk) [Note 16: Business Reorganizations](index=25&type=section&id=16.%20Business%20Reorganizations) Significant restructuring actions in 2022 and 2023 aim to optimize infrastructure, incurring pre-tax charges with more expected - In July 2022, the company initiated restructuring actions ("2022 Actions") in the Industrial segment, incurring charges and expecting completion in 2023[103](index=103&type=chunk) - In April 2023, additional restructuring actions ("2023 Actions") were authorized for both segments, resulting in **$9.5 million** of pre-tax charges in Q2 2023, with an expected **$19 million** in additional costs through 2025[103](index=103&type=chunk)[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses Q2/H1 2023 financial results, including **5.5%** sales growth, MB Aerospace acquisition, and restructuring for **$50M** savings - Q2 2023 net sales increased **5.5%** to **$339.0 million**, with organic sales up **5.1%**. Aerospace organic sales grew **11.8%**, and Industrial organic sales grew **1.6%**[111](index=111&type=chunk) - The company is acquiring MB Aerospace for **$740 million** in cash, a strategic move to expand its aerospace business. The deal is expected to close by the end of 2023[112](index=112&type=chunk) - Ongoing restructuring initiatives announced in 2022 and 2023 are targeting over **$50 million** in annualized savings to improve profitability and reduce complexity[114](index=114&type=chunk) [Results of Operations](index=28&type=section&id=RESULTS%20OF%20OPERATIONS) Q2 2023 net sales rose **5.5%** to **$339.0 million**, with operating income turning profitable due to no goodwill impairment Operating Results Summary (Q2 2023 vs Q2 2022, in millions) | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $339.0 | $321.3 | +5.5% | | Gross Profit | $114.4 | $108.5 | +5.4% | | Operating Income (Loss) | $26.0 | $(28.2) | +$54.2M | | Operating Margin | 7.7% | (8.8)% | +16.5pp | - Q2 2023 operating income was negatively impacted by **$13.9 million** in restructuring charges and **$3.6 million** in acquisition transaction costs[111](index=111&type=chunk)[119](index=119&type=chunk) [Financial Performance by Business Segment](index=30&type=section&id=Financial%20Performance%20by%20Business%20Segment) Industrial sales grew **2.3%** with profit recovery; Aerospace sales rose **11.8%** but profit declined due to costs and mix [Industrial Segment](index=30&type=section&id=Industrial) Industrial sales increased **2.3%** to **$217.0 million**, with operating profit recovering due to the absence of prior impairment Industrial Segment Performance (Q2, in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Sales | $217.0 | $212.1 | | Operating Profit (Loss) | $9.4 | $(48.7) | | Operating Margin | 4.3% | (23.0)% | - The outlook for Industrial is impacted by economic headwinds, with varied performance across regions: Europe sales improved, North America was flat, and China declined. Order rates were flat in Europe, down in China, but improved in North America[130](index=130&type=chunk) [Aerospace Segment](index=32&type=section&id=Aerospace) Aerospace sales grew **11.8%** to **$122.0 million**, but operating profit declined due to acquisition costs and product mix Aerospace Segment Performance (Q2, in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Sales | $122.0 | $109.2 | | Operating Profit | $16.6 | $20.6 | | Operating Margin | 13.6% | 18.8% | - Aerospace backlog increased **7.3%** to **$804.8 million** at June 30, 2023, from **$750.1 million** at December 31, 2022[135](index=135&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Strong liquidity with **$74.7M** cash and **$537.3M** credit; H1 2023 operating cash flow improved to **$42.5M**, debt covenants met - Net cash from operating activities increased to **$42.5 million** in H1 2023 from **$8.5 million** in H1 2022, primarily due to better working capital management[154](index=154&type=chunk) Debt Covenant Compliance (as of June 30, 2023) | Covenant | Actual Ratio | Requirement | | :--- | :--- | :--- | | Ratio of Consolidated Senior Debt to Consolidated EBITDA | 2.56 | Max 3.25 | | Ratio of Consolidated Total Debt to Consolidated EBITDA | 2.56 | Max 3.75 | | Ratio of Consolidated EBITDA to Consolidated Cash Interest Expense | 11.46 | Min 4.25 | - At June 30, 2023, the company had **$537.3 million** unused on its credit facility, though borrowing capacity was limited to **$266.0 million** by debt covenants[149](index=149&type=chunk)[160](index=160&type=chunk) [Critical Accounting Policies](index=38&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies include annual goodwill impairment testing, with no impairment identified in Q2 2023 - The annual goodwill impairment test was conducted in Q2 2023, and no impairment was identified. This contrasts with Q2 2022, when a non-cash goodwill impairment charge was recorded for the Automation reporting unit[162](index=162&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk exposure occurred in H1 2023; refer to 2022 10-K for detailed discussion - There have been no material changes to the Company's market risk exposure during the six months ended June 30, 2023[167](index=167&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2023, with no material changes in internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[168](index=168&type=chunk) - There were no material changes to the company's internal control over financial reporting during the second quarter of 2023[169](index=169&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, not expecting a material adverse financial impact - The company expects that the outcome of pending litigation and other proceedings will not have a material adverse effect on its consolidated financial position, cash flows, or results of operations[171](index=171&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) New risks from the MB Aerospace acquisition include completion failure, business disruption, costs, and increased leverage - The pending acquisition of MB Aerospace introduces several risks, including failure to complete the transaction, disruption of business relationships, significant costs, and increased indebtedness[173](index=173&type=chunk) - The company faces challenges related to the integration of MB Aerospace, which will greatly expand the size and complexity of its aerospace business[175](index=175&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No open market share repurchases in Q2 2023; **3.4 million shares** remain authorized for repurchase - No shares were repurchased as part of the publicly announced repurchase program in Q2 2023. All equity acquisitions were for tax withholding on employee stock awards[180](index=180&type=chunk) - As of June 30, 2023, **3.4 million shares** may yet be purchased under the company's stock repurchase program[180](index=180&type=chunk)[181](index=181&type=chunk)

Barnes Group Inc. (NYSE:B) Q2 2023 Earnings Conference Call July 28, 2023 8:30 AM ET Company Participants Bill Pitts - VP, IR Thomas Hook - President & CEO Julie Streich - SVP, Finance & CFO Conference Call Participants Matt Summerville - D. A. Davidson Christopher Glynn - Oppenheimer Myles Walton - Wolfe Research Michael Ciarmoli - Truist Securities Operator Ladies and gentlemen, good morning, my name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to t ...

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 March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-----------------------------------------------------------------------------|---------------------------------------------------|-------------------------------------- ...

Financial Data and Key Metrics Changes - First quarter sales were $335 million, up 7% from the prior year period with organic sales increasing 9% [17] - Adjusted operating income was $37.2 million, up 17% from an adjusted $31.8 million last year, with an adjusted operating margin of 11.1%, up 90 basis points [17] - Net income was $13.2 million or $0.26 per diluted share compared to $20.5 million or $0.40 per diluted share a year ago [17] - Adjusted net income per share of $0.47 was up 15% from $0.41 last year [17] - Interest expense was $5.3 million, an increase of $1.7 million due to higher average interest rates [18] - First quarter cash provided by operating activities was $32 million versus a use of $9 million in the prior year period [23] Business Line Data and Key Metrics Changes Industrial Segment - Sales were $218 million, up 3% from the prior year period, with organic sales increasing 6% [19] - Adjusted operating profit was $16.6 million, up 11%, with an adjusted operating margin of 7.6%, up 50 basis points [19] - Molding Solutions organic orders increased 6%, while organic sales increased 4% [20] - Motion Control Solutions saw organic orders up 12% and organic sales grew by 7% [20] - Automation organic orders were up 7%, while organic sales increased 8% [20] Aerospace Segment - Sales were $117 million, up 16% from a year ago, with OEM sales strong, up 11% [21] - Aftermarket sales grew 27%, with MRO up 19% and spare parts up 41% [21] - Adjusted operating profit was $20.5 million, up 23% from last year, with an adjusted operating margin of 17.5%, up 90 basis points [21] Market Data and Key Metrics Changes - The aerospace industry is experiencing a broad-based recovery, with global domestic travel up more than 25% compared to a year ago [12] - International traffic was up nearly 90% for February versus a year ago, reaching approximately 78% of 2019 levels [13] - The Asia-Pacific region has seen a strong rebound following China's reopening [13] Company Strategy and Development Direction - The company is focused on driving core business execution and advancing its transformation journey [6] - A restructuring program is underway, with anticipated annual savings of approximately $26 million and total restructuring costs of $29 million for the first two phases [7] - Phase 3 of the restructuring will impact the Industrial and Aerospace segments, with a total investment forecast of $58 million [9] - The company is evaluating targeted M&A opportunities within Aerospace, focusing on assets with strong strategic fit [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, noting solid organic orders and sales momentum [25] - The company anticipates organic sales growth of 6% to 8% for the year, with adjusted operating margins between 12.5% and 13.5% [24] - Management highlighted the importance of effective communication and leadership in navigating the transformation process [43] Other Important Information - The effective tax rate in Q1 2023 was 20.9%, in line with the comparable period last year [18] - The debt-to-EBITDA ratio was 2.39x at quarter end, with a net debt-to-EBITDA ratio of approximately 2.1x [23] Q&A Session Summary Question: Can you quantify the magnitude of unabsorbed inflation that you encountered in Q1? - Management indicated that they have largely offset inflation effects in Q1, with expectations of being ahead of inflation as the year progresses [28][29] Question: Can you provide more color on the benefit from the stocking order? - Management noted that while the stocking order had a positive effect, it was not significant enough to break out separately [34] Question: What are the cash spend expectations relative to the restructuring phases? - The net cash impact for the year is expected to be about $34 million, with the majority hitting the first half of the year [41] Question: What challenges are anticipated during the restructuring process? - Management emphasized the importance of communication and clarity to ensure cultural alignment during the transformation [43][46] Question: What is the confidence level in the second half Industrial margin expansion? - Management expressed high confidence in achieving margin expansion, citing strong workload and effective consolidation strategies [48][50]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-4801 BARNES GROUP INC. (Exact name of registrant as specified in its charter) Delaware 06-0247840 (State of incorporation) (I.R.S. Employer Identific ...

Barnes Group Inc. (NYSE:B) Q4 2022 Earnings Conference Call February 17, 2023 8:30 AM ET Company Participants Bill Pitts - Vice President, Investor Relations Thomas Hook - President and Chief Executive Officer Julie Streich - Senior Vice President, Finance and Chief Financial Officer Conference Call Participants Pete Osterland - Truist Securities Matt Summerville - D. A. Davidson & Co. Christopher Glynn - Oppenheimer Myles Walton - Wolfe Research Operator Good morning. My name is Devin and I will be your co ...

Barnes Unlocking Value Through Execution February 2023 Safe Harbor Statement and Non-GAAP Measures This Presentation Contains Forward-looking Statements Forward-looking statements are made based upon management's good faith expectations and beliefs concerning future developments and their potential effect upon the Company. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements, includin ...

Financial Data and Key Metrics Changes - Third quarter sales were $315 million, down 3% year-over-year, with organic sales increasing by 2% [15] - Operating profit was $30 million, down 31% from $43.7 million last year, with adjusted operating income at $39 million, down 11% [15][16] - Net income for the quarter was $17 million or $0.33 per share, compared to $27.9 million or $0.55 per share a year ago [16] - Adjusted operating margin was 12.4%, down 110 basis points from 13.5% a year ago [15] Segment Performance Changes - **Industrial Segment**: Sales were $204 million, down 12% year-over-year, with organic sales decreasing by 4% [18] - **Aerospace Segment**: Sales were $111 million, up 18% from a year ago, primarily driven by a 55% increase in aftermarket sales [22] - **Molding Solutions**: Organic orders increased by 15% year-over-year, while organic sales decreased by 9% [20] - **Automation**: Organic orders were up 22%, while organic sales declined by 6% [21] Market Data and Key Metrics Changes - Foreign exchange negatively impacted sales by 6% [15] - Book-to-bill ratio for the Industrial segment was 1.03x for the third quarter [19] - Aerospace OEM backlog remained solid at $729 million, with expectations to convert approximately 45% to revenue over the next 12 months [23] Company Strategy and Industry Competition - The company is focusing on driving revenue, improving profitability, and securing backlog for future growth [8] - A restructuring plan is in place to achieve approximately $26 million in annual savings with a total restructuring cost of $29 million [11] - The company is pausing M&A activity in the Industrial segment to focus on integration and rationalization [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Aerospace segment's recovery and potential for growth in military and MRO markets [42] - The company anticipates continued inflationary pressures in 2023 and is focused on mitigating these through pricing strategies [56] - Management emphasized the need for improved commercial leadership and operational efficiency in the Industrial segment [49] Other Important Information - Patrick Dempsey, Executive Vice Chairman, retired for personal reasons [13] - Year-to-date cash provided by operating activities was $43 million, down from $128 million in the prior year [24] - The company expects adjusted EPS to be in the range of $1.90 to $2 per share for 2022 [26] Q&A Session Summary Question: Comments on Aerospace margins and productivity - Management indicated that supply chain challenges and mix issues contributed to margin performance [30] Question: Thoughts on backlog and orders - Management clarified that the slowdown in orders is a timing issue and not a cause for concern [31] Question: Revenue impact from facility closures - Management is evaluating product lines and considering rationalization to improve efficiency [38] Question: Supply chain dynamics and inventory management - Management is focused on mitigating inflationary effects through pricing and value engineering [56] Question: Exposure to energy-related disruptions in Europe - Management is particularly sensitive to operations in Germany and Italy but does not foresee significant issues currently [59]