Barnes Group Inc. (B) is benefiting from the strong performance of the Aerospace segment. The wear and tear from the increased use of older planes in the commercial market, particularly with narrowbody engines like the CFM56 and V2500, is aiding the after-market sales. The company has stepped up the production of both narrow-body airframes and wide-body airframes, and its maintenance, repair and overhaul (MRO) activity is strong. This underlying strength, along with the MB Aerospace acquisition, fueled the ...

Barnes Group Inc. (B) recently finalized a long-term extension of a repair services contract with RTX Corporation’s (RTX) Pratt & Whitney Canada (“P&WC”). Per the agreement, both companies will collaborate on maintenance, repair and overhaul of highly engineered and complex parts utilized in aero engine cases, rotating components, seals and shrouds.The recently signed contract extension is a testimony to the longstanding partnership between Barnes and P&WC, which started in the 1970s. The agreement will boo ...

Core Viewpoint - Barnes Group Inc. is experiencing strong momentum in its Aerospace segment, driven by robust demand and strategic acquisitions, despite facing challenges in the Industrial segment and rising sales costs [1]. Growth Catalysts - **Business Strength**: The Aerospace segment is performing well, with revenues increasing by 89% year-over-year in the first quarter, supported by growth in both OEM and Aftermarket businesses [2]. - **Accretive Acquisition**: The acquisition of MB Aerospace in August 2023 has significantly enhanced Barnes' capabilities, contributing $82.2 million in revenues to the Aerospace segment in the first quarter [3]. - **Investments in Product Development**: Barnes is expanding its MRO facility and has opened a new component repair facility in Singapore, positioning itself to meet increasing demands in the aerospace industry [4]. Rewards to Shareholders - The company is committed to returning value to shareholders, with dividend payments totaling $8.1 million in the first quarter of 2024 and $32.4 million in 2023 [5]. - Year-to-date, shares of Barnes have increased by 26%, outperforming the industry growth of 8.4% [5].

Core Insights - The international operations of Barnes Group are crucial for assessing its financial resilience and growth prospects, especially in a global economic landscape where access to foreign markets is vital for stability and growth [1][2] Revenue Performance - For the quarter ended March 2024, Barnes Group reported total revenue of $430.64 million, marking a year-over-year increase of 28.4% [2] - Asia contributed $59.7 million, accounting for 13.9% of total revenue, which was a surprise decrease of 5.97% compared to analysts' expectations of $63.49 million [3] - Europe generated $121.53 million, representing 28.2% of total revenue, also falling short of the consensus estimate of $125.39 million by 3.08% [3] Future Projections - Analysts project total revenue for the current fiscal quarter to reach $395.5 million, reflecting a 16.7% increase from the same quarter last year [4] - For the entire year, total revenue is forecasted at $1.65 billion, an improvement of 13.6% from the previous year, with Asia expected to contribute 14.8% ($243.03 million) and Europe 29.2% ($481.67 million) [4] Market Dynamics - The reliance on international markets presents both opportunities and challenges for Barnes Group, necessitating close monitoring of international revenue trends to accurately project future performance [5] - The company's stock performance has shown a decline of 2.5% over the past month, aligning with the broader market trends, while experiencing a 5.6% increase over the past three months [8]

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, 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 38 cents per share for Q1 2024, exceeding the Zacks Consensus Estimate of 35 cents, but reflecting a 19% decline year over year due to rising costs of sales [1] Financial Performance - Total revenues reached $430.6 million, surpassing the Zacks Consensus Estimate of $425 million, marking a 28.4% increase year over year with organic sales growth of 4% [2] - Industrial segment revenues were $209 million, down 4% year over year, with organic sales also declining by 4% [2] - Aerospace segment sales totaled $221 million, up 89% year over year, with organic sales increasing by 19% and acquisition-boosted sales rising by 70% [2] Margin Profile - Cost of sales increased by 32.6% year over year to $300.1 million, while selling and administrative expenses rose by 5.9% to $90.9 million [3] - Adjusted operating income was $51.1 million, reflecting a 37.4% year-over-year increase, with the operating margin improving by 80 basis points to 11.9% [3] Balance Sheet & Cash Flow - At the end of Q1 2024, cash and cash equivalents were $81.6 million, down from $89.8 million at the end of 2023, while long-term debt increased to $1.29 billion [4] - The company used net cash of $2.3 million from operating activities in Q1 2024, compared to $32.2 million generated in the same period last year [4] - Capital expenditures totaled $12.8 million, up 17.4% year over year, with free cash outflow of $15.2 million compared to a free cash inflow of $21.3 million a year ago [4] 2024 Outlook - For 2024, total sales are expected to increase by 13-16% year over year, with organic sales projected to grow by 5-8% [5] - Adjusted operating margin is estimated to be between 12-14%, and adjusted EBITDA margin is projected at 20-22% [5] - GAAP earnings are forecasted to be between $1.08 and $1.28 per share, while adjusted earnings are expected to range from $1.62 to $1.82 [5]

Financial Data and Key Metrics Changes - For Q1 2024, revenue was $431 million, an increase of 28% reported and 4% organic [7][17] - Adjusted EBITDA grew 38% to $80 million, with an adjusted EBITDA margin up 130 basis points [7][17] - Adjusted operating income was $51 million, up 37%, with an adjusted operating margin of 11.9%, an increase of 80 basis points [17] - Interest expense rose to $25 million from $5 million a year ago, primarily due to higher borrowings and interest rates [17] - Adjusted net income per share was $0.38, down from $0.47 a year ago [17] Business Line Data and Key Metrics Changes Aerospace - Aerospace sales were $221 million, up 89% reported and 19% organic [18] - Adjusted operating profit for Aerospace was $35 million, up 69% [18] - Aerospace adjusted EBITDA was $53 million, up 75%, with an adjusted EBITDA margin of 24.2% [19] Industrial - Industrial sales were $209 million, down 4% reported and organic [20] - Adjusted operating profit for Industrial was $16 million, down 1% [21] - Adjusted EBITDA for Industrial was $27 million, down 6%, with an adjusted EBITDA margin of 13% [21] Market Data and Key Metrics Changes - Aerospace OEM backlog increased 19% sequentially to $1.46 billion [19] - MRO sales in Aerospace were up 136% reported and 19% organic [11] - Industrial orders improved 7% sequentially, with contributions from Molding Solutions, Automation, and Motion Control [22] Company Strategy and Development Direction - The company is focused on three strategic pillars: core business execution, scaling aerospace, and integrating, consolidating, and rationalizing industrial operations [6][15] - The divestiture of Associated Spring and Hanggi reduces exposure to automotive components, aligning with the strategy to optimize the industrial portfolio [12][15] - The company aims to achieve $1 billion in annual aerospace revenue by 2025, emphasizing a shift towards higher growth and profitability in aerospace [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the aerospace market's robust growth and the company's positioning to capitalize on it [6][11] - The company anticipates a stronger second half of 2024 for the industrial segment, supported by improved operational performance and execution [31][60] - Management highlighted ongoing efforts to address productivity issues in aerospace facilities and expects improvements throughout 2024 [44] Other Important Information - The company expects total sales growth for 2024 to be between 13% and 16%, with aerospace sales growth projected at approximately 60% [25][26] - The divestiture of Associated Spring and Hanggi is expected to reduce year-over-year EPS by $0.28, while the MB Aerospace acquisition will be approximately $0.20 dilutive in the year but neutral to accretive exiting 2024 [27] Q&A Session Summary Question: What underpins the second half better outlook for Industrial? - Management indicated a stronger foundation due to the implementation of transformation strategies and improved operational performance [30][31] Question: How much of the $38 million run rate savings will be realized in 2024? - Management expects about $16 million of in-year savings, with $6 million to $7 million realized in Q1 [32][35] Question: Can you provide details on lower productivity in Aerospace facilities? - Management noted supply chain challenges and labor productivity issues but expects improvements in the second half of the year [44] Question: What is the sales trajectory for MB Aerospace moving forward? - Management anticipates a robust environment for MB Aerospace, particularly in the aftermarket, despite some supply chain constraints [47] Question: Can you discuss the moving pieces of the latest 2024 sales outlook for OE, aftermarket, and RSP? - Management expects stronger aftermarket growth, with a balanced approach across OEM and aftermarket segments [51][62]

For the quarter ended March 2024, Barnes Group (B) reported revenue of $430.64 million, up 28.4% over the same period last year. EPS came in at $0.38, compared to $0.47 in the year-ago quarter.The reported revenue represents a surprise of +1.25% over the Zacks Consensus Estimate of $425.32 million. With the consensus EPS estimate being $0.35, the EPS surprise was +8.57%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

Barnes Group (B) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.57%. 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 $0.41, delivering a surprise of 17.14%.Over the last fo ...

Exhibit 99.1 860.583.7070 | info@onebarnes.com onebarnes.com BARNES REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS Long-term Profitable Growth Strategy Driving a More Aerospace Oriented Business Comparisons are year-over-year unless noted otherwise First Quarter 2024: • Sales of $431 million, up 28%; Organic Sales up 4% • Operating Margin of 9.2%; Adjusted Operating Margin of 11.9%, up 80 bps • Adjusted EBITDA Margin of 18.7%, up 130 bps • GAAP EPS of $0.04; Adjusted EPS of $0.38, down 19% 2024 Outlook: • Sal ...