MSA Safety Investor Day Recap: Company Introduces Next Phase of Long-Term Strategy for Profitable Growth and 2028 Financial Targets
Rhea-AI Summary
MSA Safety hosted its Investor Day in New York City on May 22, 2024, unveiling its long-term strategy and 2028 financial targets.
The company aims to achieve an organic revenue range of $2.1B to $2.3B, an adjusted operating margin of 23.5% to 25.0%, and an adjusted EPS of $10.00 to $11.00.
Key strategic pillars include above-market profitable growth, targeted growth accelerators, the MSA Business System, and effective capital deployment.
Leadership emphasized innovation, operational excellence, and social impact. CFO Lee McChesney expressed confidence in consistent mid-single-digit organic growth and maintaining a leading position in premium safety solutions.
Presentation materials and a webcast replay are available on MSA Safety's Investor Relations website.
Positive
- Unveiled 2028 financial targets with a projected organic revenue range of $2.1B to $2.3B.
- Adjusted operating margin target set between 23.5% and 25.0%.
- Adjusted EPS forecasted at $10.00 to $11.00.
- Emphasis on above-market profitable growth and market leadership.
- Targeted growth accelerators in high-growth end markets and safety megatrends.
- MSA Business System to drive continuous improvement and efficiency.
- Strong capital deployment strategy to enhance shareholder value.
- Executive confidence in consistent mid-single-digit organic growth.
Negative
- No specific risks or challenges discussed in the new strategic phase.
- Lack of detailed information on potential market uncertainties or competition.
- Projected figures are targets, not guaranteed outcomes.
News Market Reaction – MSA
On the day this news was published, MSA declined 0.32%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Experience the full interactive Multichannel News Release here: https://www.multivu.com/players/English/9118655-msa-safety-investor-day-recap-2024/
"We are thrilled to offer current and potential shareholders deeper insight into our long-term strategy for delivering superior returns during our 2024 investor day," said Steve Blanco, President and Chief Executive Officer. "The unveiling of our 2028 targets underscores our confidence in our team's ability to execute our singular safety mission. Their unwavering commitment to meeting the needs of our customers builds on the strong foundation we've built over our 110-year history."
Introducing 2028 Financial Targets
- Organic Revenue Range:
$2.1B $2.3B - Adjusted Operating Margin:
23.5% to25.0% - Adjusted EPS:
$10.00 $11.00 - Targets to be complemented by more than
$1.5 billion
Next Phase of Long-Term Strategy for Profitable Growth
MSA Safety utilized its investor day to introduce the next phase of its strategy to drive continued growth and outperformance. Building on the company's strong market positions and proven innovation engine that helps solve its customers' most significant safety challenges, the company's next phase of its strategy includes the following key strategic pillars:
- Above-Market Profitable Growth. Continue to be the leader in premium safety solutions, leveraging scale, market leadership and customer-centric innovation to drive above-market profitable growth.
- Growth Accelerators. Implement targeted growth accelerators, in areas such as connected solutions, higher-growth end markets and safety megatrends around connectivity and productivity, to expand its suite of solutions with recurring revenue streams and further build and exercise the company's M&A capabilities in a disciplined manner.
- MSA Business System. Apply the MSA Business System, which is a set of behaviors, processes and tools used to drive continuous improvement across the enterprise, to enable excellence in in pricing, operations, resource allocation and balance sheet efficiency.
- Capital Deployment. Allocate capital effectively to drive value for the organization and for shareholders while leveraging the company's premier financial profile to deliver sustainable, long-term growth.
"We recently completed a comprehensive review of our strategy to understand our strengths and areas of opportunity, and those results were used to determine our path forward to drive continued profitable growth," said Mr. Blanco. "We believe we're uniquely positioned to drive superior performance within our sector. So, while we continue to drive our strategy forward, all we do remains centered on advancing our mission by building a culture that emphasizes continuous innovation and improvement, talent development, and unmatched customer focus."
Lee McChesney, Senior Vice President and Chief Financial Officer, added, "When I look at the future of MSA Safety, I am confident in our ability to drive consistent mid-single-digit organic growth, leverage our market positions, and enhance our customers' journey through consistent investment in innovation. We will continue to be the leader in premium safety solutions, follow our mission, and deliver on our promise to those workers around the world who put their trust in the MSA brand every day."
Investor Day Materials and Webcast Recording
A replay of today's live webcast, along with the presentation materials, are available on MSA Safety's Investor Relations website at http://investors.msasafety.com.
About MSA Safety
MSA Safety Incorporated (NYSE: MSA) is the global leader in advanced safety products, technologies and solutions. Driven by its singular mission of safety, the Company has been at the forefront of safety innovation since 1914, protecting workers and facility infrastructure around the world across a broad range of diverse end markets while creating sustainable value for shareholders. With 2023 revenues of
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SOURCE MSA Safety
FAQ
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