Universal Stainless & Alloy Products, Inc. has reported record-breaking financial results for the third quarter of 2024. The company's net sales reached an all-time high of $87.3 million, marking a 5% increase from the second quarter of 2024 and a substantial 22% surge from the same period in 2023.
Premium alloy sales for the third quarter also hit a record high, amounting to $23.7 million, representing 27.1% of total sales. This figure reflects a notable 14% increase from the second quarter of 2024 and a remarkable 44% surge from the third quarter of 2023. Year-to-date premium alloy sales rose by 37% to $64.5 million, constituting 26.0% of total sales.
Aerospace sales, which represent the company's largest market for premium alloy products, also witnessed significant growth. Third quarter aerospace sales set a record at $71.4 million, making up 81.8% of total sales. This figure reflects a 4% increase from the second quarter of 2024 and an impressive 32% surge from the third quarter of 2023. Year-to-date aerospace sales rose by 30% to $200.2 million, constituting 80.8% of total sales.
The company's gross margin remained robust at 25.2% of sales, which is slightly lower than the 25.4% reported in the second quarter of 2024 but notably higher than the 15.2% reported in the third quarter of 2023.
Universal Stainless & Alloy Products, Inc.'s operating income for the third quarter of 2024 increased to $13.0 million, marking a significant improvement from the second quarter of 2024 and nearly tripling the figure reported in the third quarter of 2023.
Net income for the third quarter surged to a record $11.1 million, or $1.11 per diluted share, from $8.9 million, or $0.90 per diluted share, in the second quarter of 2024, and $1.9 million, or $0.20 per diluted share, in the third quarter of 2023. Year-to-date net income reached $24.1 million, or $2.45 per diluted share.
Adjusted EBITDA for the third quarter of 2024 increased to $19.3 million, or 22.1% of sales, from $18.5 million, or 22.3% of sales, in the second quarter of 2024, and doubled the $9.3 million, or 13.1% of sales, reported in the third quarter of 2023. Year-to-date adjusted EBITDA reached $50.4 million, or 20.4% of sales.
The company also reported that net cash generated by operating activities totaled $11.9 million in the third quarter. This cash was used to fund capital expenditures and reduce net debt, which declined by $9.0 million sequentially and by $20.3 million from the end of the third quarter of 2023.
Christopher M. Zimmer, President and CEO of Universal Stainless & Alloy Products, Inc., attributed the record performance to the strong demand in the aerospace sector, particularly in commercial aircraft engines. He highlighted that this marks the sixth consecutive quarter of profitable growth for the company.
Please note that due to a pending transaction with Aperam, Universal will not hold a third-quarter earnings conference call or webcast. The market has reacted to these announcements by moving the company's shares 0.7% to a price of $43.98. If you want to know more, read the company's complete 8-K report here.
