Home | News & Opinion | EBITDA growth accelerated to 5% in the US middle market in Q1 2016

EBITDA growth accelerated to 5% in the US middle market in Q1 2016

By
Font size: Decrease font Enlarge font
EBITDA growth accelerated to 5% in the US middle market in Q1 2016

Private middle market companies increased revenues by 9.08% and earnings by 5.05% during first two months of Q1 2016, according to survey.

Middle market private companies in the Golub Capital Altman Index increased revenues by 9.08% and  EBITDA by 5.05% year-over-year during the first two months of the first quarter of 2016. This is an increase from year-over-year growth of 6.69% and 2.15% in revenues and earnings, respectively, in the fourth quarter of 2015.

"Though the economy is improving and the middle market is strengthening, we do see continued profit margin pressure."

Lawrence E. Golub, CEO of Golub Capital, commented on the findings. "In aggregate, our data shows that the middle market is growing nicely, with profits growing faster than in the previous two quarters across most sectors. Though the economy is improving and the middle market is strengthening, we do see continued profit margin pressure, based on year over year comparisons within our portfolio. The improved Q1 earnings picture from our middle-market sample suggests that, ex-energy, public company profitability and growth may well beat expectations."

Dr. Altman said, "Earnings of middle-market firms staged a meaningful increase, to 5.05% from 2.15% and 3.95% in the two previous quarters. Consumer staples and IT sectors were the bright spots, with smaller increases in the health care and industrial sectors. The consumer discretionary sector has experienced a fair amount of volatility in growth from quarter to quarter in the past six quarters after a relatively high and stable growth period in 2013/2014."

The full report can be found here.

 

Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:

Captcha