NEW YORK CITY - MSA Safety, Inc. (NYSE: NYSE:MSA), a prominent developer of safety products, held an Investor Day on Wednesday, where the company's leadership, including President and CEO Steve Blanco and CFO Lee McChesney, outlined its long-term strategy and financial goals for 2028. The company, which has a 110-year history, aims to build on its foundation by focusing on innovation, operational excellence, and social impact.
MSA Safety announced its 2028 financial targets, projecting organic revenue in the range of $2.1 billion to $2.3 billion, with an adjusted operating margin between 23.5% and 25.0%, and an adjusted earnings per share (EPS) of $10.00 to $11.00. These targets are supported by a planned capital deployment of over $1.5 billion, which is expected to be enabled by a strong balance sheet and robust free cash flow generation.
The company's next phase of strategy highlights a commitment to above-market profitable growth, leveraging its market leadership and customer-centric innovation. MSA Safety plans to implement growth accelerators such as connected solutions and expansion into higher-growth end markets. Moreover, the company will continue to develop its M&A capabilities.
Investor Day also served as a platform for MSA Safety to reinforce its dedication to the MSA Business System, a framework designed to drive continuous improvement across the organization. The system focuses on pricing, operations, resource allocation, and balance sheet efficiency.
Blanco emphasized the company's unique position to drive superior performance within its sector, citing a comprehensive review of its strategy that identified strengths and opportunities for growth. McChesney expressed confidence in the company's ability to achieve consistent mid-single-digit organic growth and to maintain its status as a leader in premium safety solutions.
A replay of the Investor Day webcast and the presentation materials are available on MSA Safety's Investor Relations website. MSA Safety, with 2023 revenues of $1.8 billion and over 5,000 associates worldwide, continues to innovate in the field of safety, protecting workers and infrastructure globally.
This news article is based on a press release statement from MSA Safety.
InvestingPro Insights
As MSA Safety (NYSE: MSA) sets ambitious financial goals for the upcoming years, current metrics and analyst insights from InvestingPro provide a deeper understanding of the company's financial health and market position. With a market capitalization of $7.48 billion and a forward-looking P/E ratio of 27.03, MSA Safety is seen as a stable investment, particularly given its low price volatility and consistent dividend growth.
Indeed, the company has not only maintained dividend payments for an impressive 52 consecutive years but has also increased its dividend for the last 10 years, showcasing a commitment to returning value to shareholders.
InvestingPro data indicates that MSA Safety's revenue growth over the last twelve months as of Q1 2024 stands at 12.98%, which aligns with the company's focus on above-market profitable growth. The gross profit margin during the same period was a solid 48.05%, reflecting MSA's operational efficiency and its ability to maintain profitability amidst its expansion endeavors.
One of the InvestingPro Tips highlights that MSA Safety's net income is expected to grow this year, which may reassure investors about the company's ability to meet its 2028 financial targets. Furthermore, with a PEG ratio close to zero, the company's growth is priced attractively relative to its earnings growth potential.
For those interested in a comprehensive analysis, InvestingPro offers additional insights, with a total of 11 InvestingPro Tips available for MSA Safety at https://www.investing.com/pro/MSA. To access these valuable tips and metrics, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors tracking the company's performance will note the recent price movements, with a 1-year total return of 32.69%, underscoring the stock's positive trajectory in the market. As MSA Safety continues to innovate and expand, these InvestingPro insights can help investors make informed decisions about the company's potential for long-term growth and profitability.
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