On August 1, 2024, Haynes International Inc (NASDAQ: HAYN) released its 8-K filing reporting financial results for the third quarter ended June 30, 2024. Haynes International Inc is a producer of high-performance nickel and cobalt-based alloys, primarily serving the aerospace, industrial gas turbine, and chemical processing industries.
Performance Overview
Haynes International Inc (HAYN, Financial) reported net revenues of $153.9 million for Q3 fiscal 2024, a 7% increase from the same period last year. However, this figure fell short of the analyst estimate of $158.81 million. The company’s earnings per share (EPS) came in at $0.63, missing the analyst estimate of $0.84.
Key Financial Metrics
Despite the revenue growth, Haynes International Inc (HAYN, Financial) faced several challenges:
- Cost of Sales: Increased to $128.4 million, representing 83.4% of net revenues, up from 81.9% in the same period last year.
- Gross Profit: Decreased by $0.5 million to $25.5 million, with a gross profit margin of 16.6%, down from 18.1% last year.
- Operating Income: Declined to $11.7 million from $13.2 million in Q3 fiscal 2023.
- Net Income: Dropped to $8.1 million from $8.8 million in the same period last year.
Segment Performance
The aerospace segment was a significant contributor, with revenues hitting a quarterly record of $82.6 million, accounting for 54% of total sales. However, the chemical processing market saw a decline in average selling prices, leading to an 8.1% decrease in revenue.
| Segment | Revenue (in millions) | Change YoY |
|---|---|---|
| Aerospace | $82.6 | +6.7% |
| Chemical Processing | $16.3 | -8.1% |
| Industrial Gas Turbines | $32.0 | +14.0% |
| Other Markets | $14.9 | +11.3% |
Financial Health and Liquidity
Haynes International Inc (HAYN, Financial) reported a strong cash flow from operations of $52.5 million year-to-date, resulting in a debt reduction of over $24 million. The company had cash and cash equivalents of $11.8 million as of June 30, 2024, and a total liquidity of $121.2 million.
Challenges and Outlook
The company is experiencing reduced order entry and production volumes, primarily due to the Boeing build rate slowdown and inventory reduction initiatives. Despite these challenges, Haynes International Inc (HAYN, Financial) remains optimistic about long-term market fundamentals.
“Our third-quarter revenue grew 7% year over year, with our sales into the aerospace market hitting a quarterly Company record at $82.6 million, approaching 54% of our total sales,” said Michael L. Shor, President and Chief Executive Officer.
Dividend and Merger Update
The Board of Directors declared a regular quarterly cash dividend of $0.22 per share, payable on September 16, 2024. Additionally, the company is progressing with its proposed merger with North American Stainless, a subsidiary of Acerinox, with an expected closing in the fourth calendar quarter of 2024.
For more detailed insights and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Haynes International Inc for further details.
