Category: Industrials

Haynes International (HAYN) – Third Quarter Negatively Impacted by Lower Production and Raw Material Headwinds

Posted on by cpereira@noblefcm.com


Friday, August 02, 2024

Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Third quarter financial results. Haynes reported third-quarter fiscal 2024 net income of $8.1 million or $0.63 per share compared to $8.8 million or $0.68 per share during the prior year period. Adjusted EBITDA was $17.1 million compared to $18.7 million during the prior year period and declined as a percentage of net revenues. Third-quarter results were negatively impacted by raw material headwinds and lower mill production volumes due to fewer orders and company initiatives to reduce inventory. Strong operating cash flow of $52.5 million supported reducing the balance of the company’s credit facility by $24.2 million during the first nine months of fiscal 2024.

Merger Update. With respect to Haynes’ proposed merger with North American Stainless, Inc., a wholly owned subsidiary of Acerinox S.A., required approvals in the United States have been obtained. Following favorable decisions by European countries reviewing the transaction from a foreign direct investment (FDI) perspective, the company expects to obtain remaining required clearances from the U.K. and Austria in time for a fourth calendar quarter 2024 transaction close.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

FreightCar America (RAIL) – Multi-Year Tank Car Conversion Contract Provides a Solid Path Toward Tank Car Production

Posted on by cpereira@noblefcm.com


Friday, August 02, 2024

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Expansion into tank car conversions. FreightCar America has entered into a multi-year contract to convert over 1,000 existing DOT-111 tank cars to DOT-117R (retrofit) tank cars over a two-year period. In addition to further diversifying its product offerings, the expansion into tank car conversions provides a solid path toward M-1002 tank car facility certification by the Association of American Railroads and the production of DOT-117 tank cars. 

Ensuring the safe transportation of flammable liquids. The completed tank cars will receive new exterior tank jackets, thermal protection, full height head shields, top fittings protection and upgraded bottom outlet valves. As part of a federally mandated program, all tank cars transporting Class 3 flammable liquids, such as refined products, crude oil and ethanol, are required to meet DOT-117 or equivalent specifications by May 1, 2029.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – Seanergy Maritime Announces the Date for the Second Quarter and Six Months Ended June 30, 2024 Financial Results, Conference Call and Webcast

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on SHIP

Earnings Release: Tuesday, August 6, 2024, Before Market Open in New York
Conference Call and Webcast: Tuesday, August 6, 2024, at 11:00 a.m. Eastern Time

GLYFADA, Greece, Aug. 01, 2024 (GLOBE NEWSWIRE) — Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) announced today that it will release its financial results for the second quarter and six months ended June 30, 2024, prior to the open of the market in New York on Tuesday, August 6, 2024.

Seanergy’s senior management will conduct a conference call and simultaneous Internet webcast to review these results on Tuesday, August 6, 2024 at 11:00 a.m. Eastern Time.

Audio Webcast and Earnings Presentation:
There will be a live, and then archived, webcast of the conference call and accompanying presentation available through the Company’s website. To access the presentation and listen to the archived audio file, visit our website, following the Webcast & Presentations section under our Investor Relations page. Participants to the live webcast should register on Seanergy’s website approximately 10 minutes prior to the start of the webcast, by following this link.

Conference Call Details:
Participants have the option to register for the call using the following link. You can use any number from the list or add your phone number and let the system call you right away.

About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is a prominent pure-play Capesize ship-owner publicly listed in the U.S. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 18 vessels (1 Newcastlemax and 17 Capesize) with an average age of approximately 13.4 years and an aggregate cargo carrying capacity of approximately 3,236,212 dwt. Upon completion of the delivery of the previously announced Capesize vessel acquisition, the Company’s operating fleet will consist of 19 vessels (1 Newcastlemax and 18 Capesize) with an aggregate cargo carrying capacity of approximately 3,417,608 dwt.

The Company is incorporated in the Republic of the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP”.

Please visit our company website at: www.seanergymaritime.com.

Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including with respect to market trends and vessels we have agreed to acquire. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, impacts of litigation, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; broader market impacts arising from war (or threatened war) or international hostilities, such as between Israel and Hamas and Russia and Ukraine; risks associated with the length and severity of pandemics (including COVID-19), including their effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:
Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr

Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
Email: seanergy@capitallink.com

Release – FreightCar America, Inc. Announces Expansion into Tank Cars Securing Multi-Year Order

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on RAIL

  • New agreement leverages FreightCar America’s capabilities by adding tank car conversions to diversified offerings
  • Optimized production capacity at state-of-the-art manufacturing campus supporting large-scale multi-year projects
  • Each tank car will be upgraded to meet the latest federally mandated advancements, ensuring optimal safety, efficiency, and performance

CHICAGO, Aug. 01, 2024 (GLOBE NEWSWIRE) — FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a pure-play manufacturer of high-quality railcars with a legacy of 120+ years, proudly announces that it has entered into a multi-year agreement to convert tank cars to upgraded specifications. The Company’s storied history includes a strong foundation including deliveries of over 15,000 conversions and rebodied railcars that have paved the way for this landmark agreement. This expansion into tank car conversions marks a key milestone in the Company’s ongoing efforts to diversify its product offerings while continuing to support its legacy and meet customer needs.

The scope of this agreement includes the upgrade of over 1,000 existing DOT 111 tank cars to DOT 117R tank cars over a two-year period. The completed tank cars will receive new exterior tank jacket, thermal protection, full height head shields, top fittings protection and upgraded bottom outlet valves. As part of a federally mandated program, all tank cars transporting certain hazardous and flammable liquids must be upgraded by 2029. This demonstrates the Company’s capability as a reliable partner in large-scale projects, while underscoring the Company’s commitment to meeting the evolving needs of the rail transportation market and solidifying its position as a key player in the industry.

“We are excited to enter the tank car space with this significant multi-year conversion order. Coupled with our prominent history in railcar modifications, our commitment to large-scale projects made us an excellent partner for the deal. Our Castaños facility has the capacity to handle these modifications efficiently, minimizing the number of cars out of service at any given time,” commented Nick Randall, CEO of FreightCar America.

“This expansion broadens our robust offerings of railcars, enhances our opportunity to expand our business, and equips us to grow our addressable market and customer base. We are committed to quality and reliability in large-scale projects as we continue to set new standards in manufacturing and commercial excellence,” Randall concluded.

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Investor Contact RAILIR@Riveron.com

DLH Holdings (DLHC) – A Look into the Third Quarter

Posted on by cpereira@noblefcm.com


Thursday, August 01, 2024

DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

3Q Results. Revenue was reported at $100.7 million, below our estimate of $103 million and down from the prior year of $102.2 million. Net income was $1.1 million, or $0.08 per diluted share, compared to $1.7 million, or $0.12 last year. EBITDA was roughly $10.0 million versus $11.4 million in the prior year, or a margin of 10.0% and 11.1%, respectfully, in range of management’s expectations.

Delays. The GRSi acquisition continues to experience anticipated runoff of DLH’s small business set-aside awards, as these contracts transitioned towards small businesses impacting overall revenue. The government evaluation process also has resulted in delays for new business revenue for the Company in fiscal 2024. However, with the budgets passed earlier in the year for various government departments, including the VA and HHS, we expect DLH to be awarded new contracts sooner rather than later.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

Release – Great Lakes Dredge and Dock Corporation Schedules Announcement of 2024 Second Quarter Results

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on GLDD

HOUSTON, July 30, 2024 (GLOBE NEWSWIRE) — Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) today announced that it will release the financial results for its three and six months ended June 30, 2024 on Tuesday, August 6, 2024 at 7:00 a.m. C.D.T. A conference call with the Company will be held the same day at 9:00 a.m. C.D.T.

Investors and analysts are encouraged to pre-register for the conference call by using the link below. Participants who pre-register will be given a unique PIN to gain immediate access to the call. Pre-registration may be completed at any time up to the call start time.

To pre-register, go to https://register.vevent.com/register/BI42711de8d7e8491e97341de99dae6b10

The live call and replay can also be heard at https://edge.media-server.com/mmc/p/ffnisqsp or on the Company’s website, www.gldd.com, under Events on the Investor Relations page. A copy of the press release will be available on the Company’s website.

The Company
Great Lakes Dredge & Dock Corporation (“Great Lakes” or the “Company”) is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 134-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.

For further information contact:
Tina Baginskis
Director, Investor Relations
630-574-3024

SKYX Platforms (SKYX) – Coming to Home Depot

Posted on by cpereira@noblefcm.com

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Collaboration with Home Depot. Yesterday, the company announced a collaboration with Home Depot, the industry leader in the home improvement market. The announcement marks the first time the company’s products will be available at a big box retailer. In addition, all of the company’s current product offerings will be available on the Home Depot website. 

Step forward for professional sales channel. In addition to serving retail consumers, Home Depot is a leading supplier for professional contractors. As such, we believe the inclusion of SKYX products at Home Depot could accelerate the adoption of the smart ceiling receptacle and SkyPlug products by commercial contractors.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – FreightCar America, Inc. To Release Second Quarter Results On August 12, 2024

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on RAIL

CHICAGO, July 29, 2024 (GLOBE NEWSWIRE) — FreightCar America, Inc. (NASDAQ: RAIL), a diversified manufacturer of railroad freight cars, today announced that it will release its second quarter 2024 financial results on Monday, August 12, 2024 after the market close. The conference call and live webcast will be held on Tuesday, August 13 at 11:00 a.m. (Eastern Time), and will be available on the Investor Relations page of the Company’s website at www.freightcaramerica.com.

Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call which can be accessed at:

Event URL: https://viavid.webcasts.com/starthere.jsp?ei=1678919&tp_key=7f0a694b35

Please note that the webcast is listen-only and webcast participants will not be able to participate in the question and answer portion of the conference call. Interested parties may also participate in the call by dialing (877) 407-0789 or (201) 689-8562. Interested parties are asked to dial in approximately 10 to 15 minutes prior to the start time of the call.

An audio replay of the conference call will be available beginning at 3:00 p.m. (Eastern Time) on Tuesday, August 13, 2024, until 11:59 p.m. (Eastern Time) on Tuesday, August 27, 2024. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13747591. An archived version of the webcast will also be available on the FreightCar America Investor Relations website.

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Investor ContactRAILIR@Riveron.com

Source: FreightCar America, Inc.

V2X (VVX) – Some New Awards; Refined Projections

Posted on by cpereira@noblefcm.com


Monday, July 29, 2024

For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

New Awards. Returning to a continuing theme, V2X recently has been awarded some significant new and re-compete business. We believe the awards demonstrate the Company’s ability to compete, and win, in the converged environment.

GMR Award. Notably, on July 22nd V2X secured a $48.5 million ID/IQ contract with the U.S. Army for V2X’s Gateway Mission Router. This is a significant award, in our view, as it highlights V2X’s ability to deliver cutting edge solutions to its partners and expands the number of platforms on which GMR can reside. In addition, margins on the GMR product should be additive to the Company’s overall margin profile.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

EuroDry (EDRY) – Updating Estimates; Rating Remains an Outperform

Posted on by cpereira@noblefcm.com


Monday, July 29, 2024

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Eurodry operates a competitive fleet. EuroDry Ltd. owns and operates dry bulk carriers that transport major bulks, including iron ore, coal, grains, and minor bulks such as bauxite, phosphate, and fertilizer. Eurodry’s fleet is comprised of 13 dry bulk carriers, including five Panamax, five Ultramax, two Kamsarmax, and one Supramax dry bulk carriers all of which are in operation. The total cargo carrying capacity of the company’s 13 dry bulk carriers is 918,502 deadweight tonnes (dwt). The average age of the fleet is 13.5 years. The orderbook in the sector is nearing a 20-year low and demand growth for drybulk vessels appears strong through at least the remainder of 2024. Some uncertainty exists beyond 2024, particularly with respect to bulk commodity demand in China.

Updating estimates. We have lowered our 2024 EBITDA and EPS estimates to $23.8 million and $1.54, respectively, from $28.1 million and $2.05. The revisions reflect fewer available days in the second and third quarters due to drydocking, along with modestly lower time charter equivalent rates.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – NN, Inc. to Hold Second Quarter 2024 Earnings Conference Call on Thursday, August 8, 2024

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on NNBR

CHARLOTTE, N.C., July 26, 2024 (GLOBE NEWSWIRE) — NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, announced today that it will release its second quarter 2024 financial results for the period ended June 30, 2024, after the close of the market on Wednesday, August 7, 2024. The company will hold a related conference call on Thursday, August 8, 2024, at 10 a.m. E.T. Participants on the call are asked to register five to 10 minutes prior to the scheduled start time by dialing 1-877-255-4315 and from outside the U.S. at 1-412-317-6579.

The conference call will be webcast simultaneously and in its entirety through the NN, Inc. Investor Relations website. Shareholders, media representatives and others may participate in the webcast by registering through the Investor Relations section on the company’s website at https://investors.nninc.com/.

For those who are unavailable to listen to the live call, a replay will be available shortly after the call on NN’s website through August 8, 2025.

About NN, Inc.

NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Europe, South America, and Asia. For more information about the company and its products, please visit www.nninc.com.

Investor & Media Contacts:
Joe Caminiti or Stephen Poe, Investors
Tim Peters or Emma Brandeis, Media
NNBR@alpha-ir.com 312-445-2870

Source: NN, Inc.

Release – ACCO Brands Corporation Declares Quarterly Dividend

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on ACCO

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that its board of directors has declared a quarterly cash dividend of $0.075 per share. The dividend will be paid on September 4, 2024, to stockholders of record as of the close of business on August 16, 2024.

“This is the Company’s 27th quarterly cash dividend since it began paying dividends in 2018. The Company’s dividend has become an important part of our capital allocation strategy, and we remain committed to supporting our quarterly dividend with our robust free cash flow. At the current stock price, on an annualized basis, our shareholders are receiving an approximate 6% yield on their investment,” said Tom Tedford, President, and Chief Executive Officer of ACCO Brands.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn and play. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Chris McGinnis
Investor Relations
(847) 796-4320

Kori Reed
Media Relations
(224) 501-0406Source: ACCO Brands Corporation

Lineage’s $4.4 Billion IPO: A Cold Storage Giant’s Sizzling Market Debut

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Lineage, the world’s largest temperature-controlled warehouse REIT, goes public with a $4.4 billion IPO
– Shares rise up to 5% on first day of trading under ticker “LINE”
– Largest IPO since Arm’s $4.8 billion listing in September 2023
– Company’s success driven by aggressive acquisition strategy, with 116 acquisitions to date

In a landmark event for the 2024 stock market, Lineage, the global leader in temperature-controlled warehousing, made its public debut on the Nasdaq Stock Market. The company’s initial public offering (IPO) raised an impressive $4.4 billion, marking it as the largest public offering since chip designer Arm’s $4.8 billion listing in September 2023.

Lineage’s shares, trading under the ticker symbol “LINE,” saw an encouraging start, rising by as much as 5% during their first day of trading. The company priced 57 million shares at $78 each, near the top of its initial $70 to $82 target range. This pricing implies a valuation of over $18 billion for the cold storage giant.

The successful IPO is a testament to Lineage’s remarkable growth strategy and its critical role in the global food supply chain. Starting from a single warehouse, Lineage has expanded its operations through an aggressive acquisition approach, completing 116 acquisitions to date. This strategy has transformed Lineage into a global powerhouse with over 480 facilities across North America, Europe, and the Asia-Pacific region, boasting a total capacity of approximately 2.9 billion cubic feet.

Adam Forste, co-founder and co-executive chairman of Lineage, highlighted the company’s unique growth trajectory on CNBC’s “Squawk Box” just before trading began. “We started with one warehouse and we’ve done 116 acquisitions to turn Lineage into what it is today,” Forste explained. He also noted that many families who sold their companies to Lineage rolled their equity into the larger entity, creating a network of stakeholders celebrating the IPO together.

Lineage’s business model addresses a critical global issue: food waste in the supply chain. With an estimated $600 billion worth of food going to waste during or just after harvest, Lineage’s temperature-controlled storage facilities play a crucial role in reducing this waste and its associated environmental impact. Food waste currently accounts for about 11% of the world’s emissions, making it a significant contributor to climate change.

The company’s successful market debut comes at a time when IPOs have been relatively scarce, making Lineage’s offering particularly noteworthy. It’s more than twice the size of cruise operator Viking Holdings’ IPO in May, further emphasizing the scale of this public offering.

Lineage’s strong market reception also reflects investor confidence in the cold storage sector, which has seen increased demand due to changing consumer habits and the growth of online grocery shopping. The company’s global network of cold-storage facilities positions it well to capitalize on these trends and continue its expansion.

The IPO was underwritten by a group of major financial institutions, including Morgan Stanley, Goldman Sachs, Bank of America, J.P. Morgan, and Wells Fargo, further underscoring the significance of this offering.

As Lineage begins its journey as a public company, investors and industry observers will be watching closely to see how this cold storage giant navigates the challenges and opportunities of the public market. With its strong market position, proven growth strategy, and critical role in the global food supply chain, Lineage’s future looks promising as it embarks on this new chapter in its corporate history.