Daily Brief Industrials: Kbr Inc, Pacific Basin Shipping, Taylor Devices and more

• KBR, Inc. achieved solid results in the Q4 and FY 2023, meeting or exceeding expectations on all key metrics.
• Revenue grew by 11%, and adjusted EBITDA by 12% year-on-year, with margins increasing to 10.7%.
• Cash management was a highlight, with the company settling both the convert and warrants in cash, reducing share count while avoiding dilution, and management described it as ‘delivering on its commitment to maximise shareholder return.’ The company ended the year with a good order backlog, providing visibility of future earnings potential.

• Pacific Basin Shipping (2343 HK) just announced a US$40m buyback which equals 2.5% of market capitalisation, showcasing management’s confidence in the outlook.
• At end-1Q24, it covered 68% of FY24 Handysize days at US$10,960/day and 78% of Supermax days at US$13,370/day, leaving significant room to capture the upside in 2H24.
• Market consensus looks overly conservative with FY24 earnings of US$154m, given BDI of 1,808 YTD. The average half-year BDI and net profit since 1H20 is 1,822 and US$189m.  

• Taylor Devices, Inc. designs and manufactures shock absorption devices for the construction and aerospace & defense industries.
• Aerospace & defense orders have surged and now make up over 80% of the company’s backlog.
• The company had its best financial performance in FY 2023 and continues to see significant increases in gross profit and operating income in FY 2024 under new management.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.