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MSA Safety Secures Major Contract with U.S. Coast Guard
PITTSBURGH – MSA Safety Inc. (NYSE: NYSE:), a prominent manufacturer specializing in safety equipment, has been awarded a significant $33 million contract to deliver advanced firefighter breathing apparatus to the U.S. Coast Guard over the next ten years. This contract will involve supplying the G1 Self-Contained Breathing Apparatus (SCBA) to the operational surface fleet and support facilities of the Coast Guard.
Initial purchase orders totaling approximately $22 million have already been confirmed for the third quarter of 2024. Steve Blanco, President and CEO of MSA Safety, expressed gratitude for the U.S. Coast Guard’s continued trust in their brand. He emphasized the G1 SCBA’s innovative features, which are designed to enhance firefighter safety and operational effectiveness, highlighting that the apparatus is backed by over 15 patents.
The G1 SCBA is characterized by features such as standard voice amplification, radio integration for enhanced communication, an ergonomic design that optimizes weight distribution, and a sophisticated electronics platform that operates on a single rechargeable battery. This platform is compatible with MSA’s FireGrid software suite, which aids in managing inventory, incidents, and reporting.
Production of the new breathing apparatus units for the U.S. Coast Guard is presently in progress at MSA Safety’s facility in Murrysville, Pennsylvania. Founded in 1914, MSA Safety has become a globally recognized leader in safety products, reporting $1.8 billion in revenues for 2023 and employing over 5,000 individuals in more than 40 locations around the world. This contract is poised to reinforce MSA Safety’s role as a key provider of safety solutions for military and government entities.
This information is derived from a press release issued by MSA Safety.
Recent Financial Performance
In additional updates, MSA Safety Incorporated reported mixed financial results for the third quarter, revealing a modest 3% drop in net sales to $433 million, while adjusted earnings per share rose 3% to $1.83. Despite challenges with delivery timing in the Fire Services sector and delays from some customers, the company has sustained a favorable order momentum. MSA Safety has also announced dividends for the fourth quarter, with common stockholders set to receive $0.51 per share and preferred stockholders receiving $0.5625 per share.
B.Riley Financial has provided a boost to MSA Safety by initiating coverage of the stock with a Buy rating, noting the company’s robust market presence and innovative strategies. MSA Safety is in the process of evolving toward integrated systems and solutions, which includes a cloud-based software platform expected to enhance profit margins and strengthen customer engagements.
Recognized as an outstanding corporate innovator for 2024, MSA Safety anticipates mid-single-digit revenue growth for Q4 and low single-digit growth for the entire fiscal year of 2024, signaling important developments for investors to monitor.
InvestingPro Insights
MSA Safety’s recent contract with the U.S. Coast Guard is in line with the company’s solid financial standing and positive growth outlook. As per InvestingPro data, MSA Safety enjoys a market capitalization of $6.95 billion and has realized a revenue increase of 3.93% over the past twelve months as of Q3 2024. This new contract is expected to favorably impact the company’s revenue future.
Additionally, InvestingPro notes that MSA Safety has successfully raised its dividend for 11 consecutive years and maintained dividend payments for an impressive 52 years. Such consistent growth in dividends, combined with the recent contract achievement, indicates MSA Safety’s dedication to delivering returns to shareholders while ensuring long-term financial stability.
The company’s financial health is further evidenced by a gross profit margin of 47.91% and an operating income margin of 23% for the past twelve months, highlighting its efficiency in converting revenue into profit—an essential factor in sustaining growth and fostering innovation within the safety equipment sector.
For those seeking deeper insights, InvestingPro offers additional tips regarding MSA Safety, which may be useful for investors keen on gaining a comprehensive understanding of the company’s financial condition and market performance.
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