Barnes Group Inc., a global provider of advanced industrial technologies and engineered solutions, has released its financial results for the third quarter of 2024. Despite ongoing production delays from aircraft manufacturers, Barnes’ Aerospace OEM segment experienced strong order growth in anticipation of a future industry ramp-up. The Aerospace aftermarket segment also delivered robust performance, driven by significant revenue growth.
The company’s integration of MB Aerospace is progressing ahead of schedule, with synergies contributing to Barnes’ strategy of scaling the Aerospace business. Over the past 18 months, Barnes has focused on growing its Aerospace operations, simplifying its Industrial segment, investing in business improvements, and streamlining costs, positioning the company for long-term profitability.
Acquisition by Apollo Funds
On October 7, 2024, Barnes announced a definitive agreement to be acquired by affiliates of Apollo Global Management in an all-cash deal valued at $3.6 billion. Under the agreement, shareholders will receive $47.50 per share. The acquisition is subject to regulatory approval and shareholder consent and is expected to close in Q1 2025.
Q3 2024 Financial Highlights
- Sales: $388 million, up 7% year-over-year, with organic growth of 4%.
- Adjusted Operating Income: $47.9 million, a 23% increase, with an adjusted operating margin of 12.3%.
- Adjusted EBITDA: $76.9 million, up 16%, with a margin of 19.8%.
- Interest Expense: $19.6 million, down 14%, primarily due to reduced one-time financing fees.
- Net Loss: $2.1 million (-$0.04 per share), compared to a $21.7 million loss (-$0.43 per share) in Q3 2023.
- Adjusted Net Income Per Share: $0.09, down 53% from $0.19.
Segment Performance
Aerospace Segment: Sales increased by 49% to $232 million, with OEM sales up 38% and aftermarket sales up 67%. Adjusted operating profit was $36.3 million, a 55% increase.
Industrial Segment: Sales declined 24% to $156 million, primarily due to divestitures. Adjusted operating profit was $11.6 million, down 26%.
Balance Sheet and Leverage
Barnes’ net debt to EBITDA ratio was 3.35 times at the end of Q3, down from 3.48 times in Q2 2024.
Suspension of Guidance
Due to the pending acquisition by Apollo Funds, Barnes has canceled its Q3 earnings call and suspended its 2024 financial guidance.
About Barnes
Founded in 1857, Barnes Group Inc. specializes in manufacturing advanced components and technologies for industries such as aerospace, medical, and industrial automation. With headquarters in Bristol, Connecticut, the company operates globally, delivering innovative solutions and services across its Aerospace and Industrial segments
