Barnes Reports Fourth Quarter and Full Year 2023 Financial Results

Core Insights - Barnes Group Inc. reported significant financial growth in Q4 and full year 2023, with a focus on business transformation and strategic acquisitions to enhance capabilities and customer relationships [1][2]. Q4 2023 Highlights - Sales reached $416 million, a 33% increase year-over-year, driven by 2% organic growth, 28% from acquisitions, and 2% favorable foreign exchange [2]. - Operating income was $29.7 million, up 23%, with an operating margin of 7.1%, down 60 basis points [2]. - Adjusted operating income increased by 36% to $47.7 million, with an adjusted operating margin of 11.5%, up 30 basis points [2]. - Interest expense rose significantly to $23.6 million from $4.4 million due to higher borrowings related to the MB Aerospace acquisition [2]. Full Year 2023 Highlights - Total sales for the year were $1,451 million, a 15% increase, supported by 5% organic growth and 9% from acquisitions [4]. - Operating income increased by 56% to $89.0 million, with an operating margin of 6.1%, up 160 basis points [4]. - Adjusted operating profit was $167.3 million, up 15%, with an adjusted operating margin of 11.5%, down 10 basis points [4]. - Interest expense for the year was $58.2 million, compared to $14.6 million in the previous year, reflecting increased borrowings [5]. Segment Performance Aerospace - Q4 sales were $213 million, a 96% increase, with organic sales up 15% and acquisition-related sales contributing 81% [8]. - Full year sales reached $608 million, a 42% increase, with organic sales up 15% [9]. - Aerospace OEM backlog at year-end was $1.23 billion, expected to convert approximately 50% to revenue in the next 12 months [9]. Industrial - Q4 sales were $203 million, down 1%, with organic sales decreasing by 4% [10]. - Full year sales were $843 million, a 1% increase, with flat organic sales [11]. Balance Sheet and Liquidity - As of December 31, 2023, the company had $90 million in cash and $357 million available under its revolving credit facility [12]. - The "Net Debt to EBITDA" ratio was approximately 3.64, down from 3.77 at the end of Q3 [12]. 2024 Full Year Outlook - The company expects organic sales growth of 4% to 8% and an adjusted operating margin of 12% to 14% [13][14]. - Adjusted earnings per share guidance is set at $1.55 to $1.80, excluding certain restructuring and acquisition-related impacts [14].