PITTSBURGH - MSA Safety Inc. (NYSE: NYSE:MSA), a manufacturer of safety equipment, has secured a $33 million contract to supply the U.S. Coast Guard with advanced firefighter breathing apparatus over the next decade. The contract entails the provision of the company's G1 Self-Contained Breathing Apparatus (SCBA) to the Coast Guard's operational surface fleet and support facilities.
Initial orders, valued at around $22 million, have already been placed in the third quarter of 2024. MSA Safety's President and CEO, Steve Blanco, expressed pride in the U.S. Coast Guard's trust in the MSA brand. He highlighted the G1 SCBA's innovative design and versatility, which includes over 15 patents and features aimed at improving firefighter safety and operational efficiency.
The G1 SCBA is distinguished by its standard voice amplification, radio interface capabilities for clear communication, an ergonomic design for weight distribution and stability, and an advanced electronics platform powered by a single rechargeable battery. This platform supports connectivity and information management through MSA's FireGrid software suite, which offers inventory, incident management, and reporting capabilities.
Production of the new breathing apparatus units for the U.S. Coast Guard is already underway at MSA Safety's Murrysville, Pennsylvania facility. MSA Safety, with a history dating back to 1914, has established itself as a global leader in the safety product industry, generating $1.8 billion in revenues in 2023. The company employs over 5,000 associates across more than 40 international locations. This contract is expected to further solidify MSA Safety's position in providing safety solutions to government and military organizations.
This report is based on a press release statement from MSA Safety.
In other recent news, MSA Safety Incorporated reported mixed Q3 results, with a slight 3% decrease in net sales to $433 million, countered by a 3% increase in adjusted earnings per share to $1.83. Despite experiencing delivery timing issues in the Fire Services segment and certain customer delays, the company has maintained a positive order momentum. In addition, MSA Safety has announced Q4 dividends for both common and preferred stock, with shareholders set to receive $0.51 per share on common stock and $0.5625 per share on preferred stock.
The company has gained support from B.Riley Financial, which initiated coverage of MSA Safety stock and assigned a Buy rating. B.Riley highlighted MSA Safety's strong market presence, innovative approach, and customer-centric solutions. The company is transitioning towards offering integrated systems and solutions, including a cloud-based software platform, which is expected to increase profit margins and foster enduring customer relationships.
MSA Safety, recognized as a 2024 outstanding corporate innovator, projects mid-single-digit revenue growth in Q4 and low single-digit growth for the full year 2024. These are the recent developments that investors should be aware of.
InvestingPro Insights
MSA Safety's recent $33 million contract with the U.S. Coast Guard aligns well with the company's strong financial position and growth prospects. According to InvestingPro data, MSA Safety boasts a market capitalization of $6.95 billion and has demonstrated solid revenue growth of 3.93% over the last twelve months as of Q3 2024. This new contract is likely to contribute positively to the company's future revenue streams.
InvestingPro Tips highlight that MSA Safety has raised its dividend for 11 consecutive years and has maintained dividend payments for an impressive 52 consecutive years. This consistent dividend growth, coupled with the company's recent contract win, suggests a strong commitment to shareholder returns and long-term financial stability.
The company's profitability is also noteworthy, with a gross profit margin of 47.91% and an operating income margin of 23% for the last twelve months. These robust margins indicate MSA Safety's ability to efficiently convert revenue into profit, which is crucial for sustaining growth and funding innovation in safety equipment.
InvestingPro offers additional insights, with 10 more tips available for MSA Safety. These tips could provide valuable information for investors looking to understand the company's financial health and market position more comprehensively.
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