BRISTOL, Conn. - Barnes Aerospace, a unit of Barnes Group Inc . (NYSE: NYSE:B), has announced the extension of its repair services agreement with Pratt & Whitney Canada, a division of Raytheon (NYSE:RTN) Technologies Corp (NYSE: NYSE:RTX), marking the continuation of a partnership that began in the 1970s. The deal, revealed during the MRO Americas show in Chicago, focuses on the maintenance, repair, and overhaul (MRO) of complex parts for aero engines.
The extended agreement enables the two companies to further collaborate on developing new repair processes for both existing and future aerospace engines. Ian Reason, Senior Vice President of Barnes and President of Barnes Aerospace, highlighted the importance of the extended partnership, noting Barnes's commitment to providing quality repairs with industry-leading turnaround times for Pratt & Whitney engines.
Pratt & Whitney Canada's Vice President of Customer Service, Irene Makris, emphasized the need for a reliable network of service partners to maintain the over 68,000 engines they have in service worldwide. This agreement underlines their dedication to keeping engines operational and meeting maintenance schedules effectively.
Barnes Aerospace operates facilities globally, certified by various regulatory authorities including the U.S. Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA). The company serves major commercial airlines and aviation original equipment manufacturers (OEMs). This longstanding relationship with Pratt & Whitney Canada supports ongoing and new engine repair development.
Barnes Group Inc., established in 1857, is known for its manufacturing capabilities and engineering in various industries, including aerospace. The company's aerospace division specializes in the production and maintenance of complex parts for commercial and military turbine engines, nacelles, and airframes.
The information for this report is based on a press release statement.
In other recent news, Barnes Group Inc. reported a robust first quarter in 2024, with a 28% increase in revenue to $431 million and a 38% growth in adjusted EBITDA to $80 million. The company also announced a quarterly cash dividend of $0.16 per share, reflecting its financial health and commitment to shareholders. Despite a slight decline in sales in the Industrial segment, Barnes Group is optimistic about its future performance and strategic positioning.
The company secured long-term agreements in the Aerospace sector and aims to reach $1 billion in annual revenue by 2025. Furthermore, the Aerospace OEM backlog grew by 19%, reaching a record $1.46 billion.
These developments are part of the company's transformation strategy, which includes the recent sale of Associated Spring and Hanggi. The company is also strategically evaluating its Industrial portfolio to optimize performance. Analysts anticipate a stronger second half of the year for Barnes Group, with expected growth in both the Aerospace and Industrial segments.
InvestingPro Insights
Barnes Group Inc. (NYSE: B) continues to solidify its position in the aerospace sector with the recent extension of its repair services agreement with Pratt & Whitney Canada. As the company focuses on maintaining its role as a key player in the industry, the financial metrics and analyst insights from InvestingPro provide a deeper understanding of its performance and prospects.
InvestingPro data highlights a robust revenue growth for Barnes Group, with the last twelve months as of Q1 2024 showing an increase of 20.34%. This is further emphasized by a significant 30.95% price uptick over the previous six months, indicating a positive market response to the company's activities and potentially reflecting confidence in its strategic partnerships, such as the one with Pratt & Whitney Canada.
Despite a high P/E ratio of 410.74, the adjusted P/E ratio for the same period normalizes to 36.48, which may suggest that the initial figure is influenced by non-recurring events or one-off costs. Moreover, the company stands out for its long-standing reliability, as evidenced by its track record of maintaining dividend payments for 54 consecutive years, an InvestingPro Tip that underscores its commitment to shareholder returns.
For those interested in further insights, there are additional InvestingPro Tips available, including predictions that Barnes Group will be profitable this year and has been profitable over the last twelve months. Subscribers to InvestingPro can access a comprehensive list of metrics and insights to inform their investment decisions. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and learn more about Barnes Group's financial health and future outlook.
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