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Sep 30, 2022
Universal Stainless Q3 2022 Earnings Report
Reported third quarter 2022 results, with sales of $46.2 million and a net loss of $1.3 million.
Key Takeaways
Universal Stainless reported a decrease in sales compared to the previous quarter, but an increase compared to the same quarter last year. The company faced operational challenges that impacted production goals, but order entry remained strong, and backlog reached a record high. The company is optimistic about continued recovery in the aerospace market.
Q3 2022 Sales were $46.2 million, down 11.4% from Q2 2022, but up 24.3% from Q3 2021.
Premium Alloys accounted for 17.3% of Q3 2022 sales.
Q3 2022 Net loss was $1.3 million, or $0.14 per diluted share, including an AMJP grant benefit and negative impacts from a liquid metal spill.
Quarter-end Backlog reached a new record of $246.3 million, up 11% from Q2 2022, and up 97% from Q3 2021.
Universal Stainless
Universal Stainless
Universal Stainless Revenue by Segment
Universal Stainless Revenue by Geographic Location
Revenue by Segment
Service centers Revenue
CapyFin.comOriginal equipment manufacturers Revenue
CapyFin.comRerollers Revenue
CapyFin.comForgers Revenue
CapyFin.comRevenue by Geographic Location
Aerospace Revenue
CapyFin.comPower generation Revenue
CapyFin.comHeavy equipment Revenue
CapyFin.com Forward Guidance
The company is focused on getting back on track with its growth plan to respond to customer needs and take advantage of market opportunities, especially in aerospace, despite economic uncertainty. Capital expenditures in Q4 2022 are expected to be $5.0 to $7.0 million, primarily for the premium product capability expansion at the North Jackson facility.
Positive Outlook
- Continued recovery in the aerospace market is driving sales and backlog growth.
- Fundamentals driving the aerospace market, such as rising air travel and increasing airplane build rates, remain strong.
- The company is focused on responding to customer needs and taking advantage of market opportunities.
- Backlog is at record high.
- Increased borrowing availability with targeted credit agreement amendment
Challenges Ahead
- Operational challenges in the third quarter prevented the company from reaching its production goals.
- Shipment volume in the third quarter was lower due to a liquid metal spill, labor and supply chain challenges, and a spike in Covid cases.
- A sharp decline in commodity prices resulted in a negative misalignment between surcharges and material costs.
- There is continuing economic uncertainty.
- The company reported a net loss for the third quarter of 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income