Barnes Group Q4 2023 Earnings Report
Key Takeaways
Barnes Group Inc. reported a 33% increase in sales to $416 million for the fourth quarter of 2023, with organic sales up 2%. The company's operating income increased by 23% to $29.7 million, and adjusted EPS was $0.41. Full year sales were $1,451 million, up 15% from the previous year.
Sales of $416 million, up 33%; Organic Sales up 2%.
Operating Margin of 7.1%; Adjusted Operating Margin of 11.5%, up 30 bps.
Adjusted EBITDA Margin of 18.8%, up 50 bps.
GAAP EPS of $0.14; Adjusted EPS of $0.41, down 21% on acquisition-related interest.
Barnes Group
Barnes Group
Barnes Group Revenue by Segment
Forward Guidance
The Company is providing full year 2024 guidance as follows: Organic sales growth 4% to 8%, Adjusted operating margin 12% to 14%, Adjusted EBITDA margin 20% to 22%, Adjusted earnings per share $1.55 to $1.80, Capital expenditures $60 million to $70 million, Free cash flow $75 million to $85 million and Adjusted effective tax rate 30% to 32%.
Positive Outlook
- Organic sales growth 4% to 8%
- Adjusted operating margin 12% to 14%
- Adjusted EBITDA margin 20% to 22%
- Adjusted earnings per share $1.55 to $1.80
- Free cash flow $75 million to $85 million
Challenges Ahead
- Capital expenditures $60 million to $70 million
- Adjusted effective tax rate 30% to 32%
- The Company’s 2024 Adjusted EPS guidance excludes $0.17 related to restructuring and transformation activities.
- $0.06 of MB Aerospace short-term purchase accounting adjustments
- $0.38 of estimated divestiture impacts related to the pending sale of the Associated Spring™ and Hänggi™ businesses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income