•
Sep 30, 2022

Barnes Group Q3 2022 Earnings Report

Barnes Group reported third quarter 2022 financial results, with robust Aerospace Aftermarket offset by continuing Industrial pressure.

Key Takeaways

Barnes Group's third quarter 2022 sales were $315 million, a 3% decrease year-over-year. Organic sales increased by 2%. GAAP EPS was $0.33, while adjusted EPS was $0.49, an 11% decrease from the prior year. The Aerospace segment continued its strong performance, driven by aftermarket growth, while the Industrial segment faced persistent economic headwinds.

Sales of $315 million, down 3% from last year; Organic Sales up 2%

Operating Margin of 9.5%; Adjusted Operating Margin of 12.4%, down 110 bps from a year ago

GAAP EPS of $0.33; Adjusted EPS of $0.49, down 11% versus the prior year period

Forecasts 2022 Organic Sales Growth of +5% to +6%

Total Revenue
$315M
Previous year: $325M
-3.2%
EPS
$0.49
Previous year: $0.55
-10.9%
Gross Profit
$106M
Previous year: $120M
-11.6%
Cash and Equivalents
$71.6M
Previous year: $93.5M
-23.4%
Free Cash Flow
$21.8M
Previous year: $32.9M
-33.7%
Total Assets
$2.31B
Previous year: $2.59B
-10.7%

Barnes Group

Barnes Group

Barnes Group Revenue by Segment

Forward Guidance

Barnes expects organic sales growth of 5% to 6% for the current year. Adjusted operating margin is now forecasted to be in the range of 11.5% to 12%. Adjusted earnings are expected to be in the range of $1.90 to $2.00 per share.

Positive Outlook

  • Expecting 2022 Adjusted EPS of $1.90 to $2.00; Down 2% to Up 3% from 2021 Adjusted EPS of $1.94
  • Organic sales growth of 5% to 6% for the current year
  • Adjusted operating margin is now forecasted to be in the range of 11.5% to 12%
  • Strong Aerospace Aftermarket

Challenges Ahead

  • Geopolitical and economic uncertainty
  • Ongoing challenges within our Industrial Segment
  • Negative foreign exchange of approximately 4%
  • Reduction of $0.05 from the high end of our previous range

Revenue & Expenses

Visualization of income flow from segment revenue to net income