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Jun 30, 2024
Mistras Q2 2024 Earnings Report
Reported a revenue increase of 7.8% with significant gross profit and margin growth, alongside reduced SG&A expenses, resulting in a net income of $6.4 million and adjusted EBITDA of $22.1 million.
Key Takeaways
MISTRAS Group reported strong Q2 2024 results with a 7.8% increase in revenue, significant growth in gross profit and adjusted EBITDA, and a reduction in SG&A expenses. Net income reached $6.4 million, and the company is optimistic about achieving one of its all-time high-performance years for adjusted EBITDA in fiscal 2024.
Revenue increased by 7.8% driven by growth across all industries.
Gross profit rose by 12.9% with gross profit margin expanding by 140 basis points.
Net income was reported at $6.4 million, with earnings per diluted share of $0.20.
Adjusted EBITDA increased by 44.6% to $22.1 million.
Mistras
Mistras
Mistras Revenue by Segment
Mistras Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comInternational Revenue
CapyFin.comProducts and Systems Revenue
CapyFin.comCorporate and Eliminations Revenue
CapyFin.comRevenue by Geographic Location
Oil & Gas Revenue
CapyFin.comAerospace & Defense Revenue
CapyFin.comIndustrials Revenue
CapyFin.comPower Generation & Transmission Revenue
CapyFin.comOther Process Industries Revenue
CapyFin.comInfrastructure, Research & Engineering Revenue
CapyFin.comPetrochemical Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The Company reaffirms the 2024 full year guidance previously provided.
Positive Outlook
- Full year Revenue between $725 and $750 million
- Adjusted EBITDA between $84 and $89 million
- Free cash flow between $34 and $38 million
- The Company’s original Adjusted EBITDA outlook for 2024 anticipated an incremental year over year Gross Profit benefit of $3 million, and SG&A benefit of $12 million due to Project Phoenix initiatives.
- The company will still realize a $15 million aggregate improvement to Adjusted EBITDA in 2024 attributable to these items.
Challenges Ahead
- Based upon the Company’s implementation of Project Phoenix, it has validated this cost savings of $15 million in aggregate.
- This benefit is now revised to be $7 million of Cost of Revenue reduction and $8 million SG&A savings in fiscal 2024.
- However, this change will have no net impact on the Company’s outlook for fiscal 2024 Adjusted EBITDA.
- The Company’s gross debt was $199.7 million as of June 30, 2024, compared to $190.4 million as of December 31, 2023 and $198.4 million as of March 31, 2024.
- The increase in gross debt during the period was attributable to the cash flow impacts described above.
Revenue & Expenses
Visualization of income flow from segment revenue to net income