The following is a summary of the Universal Stainless & Alloy Products, Inc. (USAP) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Universal Stainless reported a record Q2 revenue of $82.8 million.

• They achieved a record gross margin of 25.4% due to improved product mix and better price realization.

• Net income was reported at $8.9 million, marking a record for the company, with earnings per share at $0.90.

• Adjusted EBITDA reached $18.5 million, a record 22% of sales, showing a strong profitability increase both QoQ and YoY.

Business Progress:

• The company is investing in premium alloy capacity, enhancing facilities with a second 18-ton furnace shell for VIM expected mid-2025 and a new box furnace this quarter for growth at the forge.

• They secured a new five-year collective bargaining agreement, boosting workforce stability at the North Jackson facility.

• There's continued focus on operational efficiencies from ongoing Capital Modernization Projects.

• Universal Stainless was added back to the Russell 2000 and 3000 indexes, reflecting growth and shareholder value enhancement.

Opportunities:

• Aerospace sales reached a new high at $68.6 million in Q2, with expectations of continued demand from both commercial and defense sectors.

• Expansion in the aerospace market is underpinned by strong global demand, including significant orders from Boeing and Airbus reported at the Farnborough Airshow.

Risks:

• The company expects minimal order adjustments from aerospace clients despite delays in production targets by manufacturers like Boeing.

More details: Universal Stainless & Alloy Products IR

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