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Jun 30, 2022
Universal Stainless Q2 2022 Earnings Report
Improved second quarter results, driven by aerospace demand and profitability improvements.
Key Takeaways
Universal Stainless reported a 35.5% increase in net sales compared to Q2 2021 and a gross margin of 9.1%, or 12.6% excluding the impacts of the AMJP grant and the liquid metal spill. The net loss narrowed to $1.4 million, and EBITDA increased to $4.3 million, with an adjusted EBITDA of $6.4 million.
Quarter-end backlog reached a new record of $222.7 million, up 10% from Q1 2022 and up 125% from Q2 2021.
Q2 2022 sales increased by 10% sequentially to $52.2 million, with premium alloy sales accounting for 17% of total sales.
Q2 2022 gross margin rose to 9.1% of sales, or 12.6% excluding the AMJP grant benefit and charges from the liquid metal spill.
Q2 2022 net loss narrowed to $1.4 million, or $0.16 per diluted share, including $0.16 of net expense from the AMJP grant benefit and liquid metal spill.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Universal Stainless expects to continue to increase sales and profitability through the second half of the year.
Positive Outlook
- Aerospace demand continued to recover, driving sales growth.
- Profitability continued to improve.
- Gross margin returned to double digits as a percentage of sales for the first time since 2019, excluding impacts of AMJP grant and liquid metal spill.
- Melt Shop is now fully operational.
- Successfully executing plan to grow sales and improve profitability.
Challenges Ahead
- Significant challenges presented by the liquid metal spill in Q2.
- Ongoing supply chain challenges.
- Increasing inflationary pressures.
- Staffing challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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