Kaman Corp (KAMN) Reports Q3 2023 Earnings: Net Sales Rise to $183.0 Million
Kaman Corp (NYSE:KAMN) reports Q3 2023 net sales of $183.0 million, a rise from the previous year.
Operating income for the quarter stands at $11.9 million with net earnings of $1.5 million.
The company revises full-year outlook, expecting higher sales, operating income, and adjusted EBITDA.
Engineered Products segment shows sustained growth, leading to increased confidence in the company's 2023 expectations.
On November 1, 2023, Kaman Corp (NYSE:KAMN) released its third-quarter earnings for 2023. The company reported net sales of $183.0 million, operating income of $11.9 million, and net earnings of $1.5 million. The company's adjusted EBITDA stood at $25.2 million, with an adjusted EBITDA margin of 13.8%. The diluted earnings per share were $0.05 per share, adjusted to $0.10 per share.
Financial Performance and Highlights
The company's Engineered Products segment demonstrated strong performance with year-over-year growth in both sales and operating income. This growth led to increased confidence in the company's 2023 expectations for sales, operating income, and adjusted EBITDA. For the nine-month period, operating income was $37.1 million, net earnings were $6.0 million, and adjusted EBITDA was $81.1 million.
Revised Outlook
Given the strong performance of the Engineered Products segment, Kaman Corp (NYSE:KAMN) has revised its full-year outlook. The company now expects net sales to be between $765.0 - $775.0 million, net earnings between $6.5 - $12.2 million, and adjusted EBITDA between $102.5 - $110.0 million. The company's expectations for operating cash flow and free cash flow remain consistent with the previous outlook.
Segment Performance
The Engineered Products segment reported net sales of $123.6 million, operating income of $29.0 million, and adjusted EBITDA of $38.4 million. The Precision Products segment reported net sales of $27.1 million and an operating loss of $3.2 million. The Structures segment reported net sales of $32.3 million and an operating loss of $3.0 million.
Company's Statement
CEO Ian K. Walsh commented on the results,
Our Engineered Products segment continues to demonstrate sustained strong performance with year over year growth in both sales and operating income. This strength provides confidence to raise our sales, operating income and adjusted EBITDA expectations for 2023."
Walsh also mentioned the company's focus on paying down debt and investing in the company's highest-margin assets and opportunities. He expressed confidence in the company's transformational strategy to enhance profitability and deliver sustainable shareholder value.
Explore the complete 8-K earnings release (here) from Kaman Corp for further details.
This article first appeared on GuruFocus.
