Sep 30, 2024

Mistras Q3 2024 Earnings Report

Reported a revenue growth of 1.9% driven by the International segment, a net income of $6.4 million, and an adjusted EBITDA increase of 11.5%.

Key Takeaways

MISTRAS Group reported a 1.9% increase in revenue, driven by the International segment. Net income was $6.4 million, or $0.20 per diluted share, and adjusted EBITDA increased by 11.5% to $23.3 million.

Revenue increased by 1.9%, driven by growth in the International segment.

Gross profit expanded to $54.6 million, with a gross profit margin of 29.9%.

Net income was $6.4 million, with earnings per diluted share of $0.20.

Adjusted EBITDA increased by 11.5% to $23.3 million.

Total Revenue
$183M
Previous year: $179M
+1.9%
EPS
$0.2
Previous year: $0.18
+11.1%
Gross Profit
$54.6M
Previous year: $54.4M
+0.4%
Cash and Equivalents
$20.4M
Previous year: $12.8M
+59.7%
Free Cash Flow
$13.2M
Previous year: -$12.2M
-207.9%
Total Assets
$552M
Previous year: $537M
+2.8%

Mistras

Mistras

Mistras Revenue by Segment

Forward Guidance

The Company has revised its guidance ranges for the full year 2024 as follows: aFull year Revenue is expected to be between $725 and $730 million (from $725-$750 million previously) bAdjusted EBITDA is expected to be between $80 and $82 million (from $84-$89 million previously) cFree cash flow is expected to be between $18 and $22 million (from $34-$38 million previously)

Positive Outlook

  • Full year Revenue is expected to be between $725 and $730 million
  • Adjusted EBITDA is expected to be between $80 and $82 million
  • Free cash flow is expected to be between $18 and $22 million
  • Meaningful improvement in its net income
  • Low double-digit expansion in Adjusted EBITDA and a low single-digit organic revenue growth for fiscal 2025.

Challenges Ahead

  • Changes were attributable to current market conditions
  • Changes were attributable to project pushouts
  • Changes were attributable to an unanticipated buildup of accounts receivable
  • Revenue is expected to be between $725 and $730 million (from $725-$750 million previously)
  • Adjusted EBITDA is expected to be between $80 and $82 million (from $84-$89 million previously)

Revenue & Expenses

Visualization of income flow from segment revenue to net income