Apr 29,2025

MSA Safety Announces First Quarter 2025 Results

First Quarter 2025 Highlights

  • Achieved quarterly net sales of $421 million, a 2% GAAP increase and 4% organic(a) increase year-over-year
  • Generated GAAP operating income of $78 million, or 18.5% of sales, and adjusted operating income of $88 million, or 20.8% of sales
  • Recorded GAAP net income of $60 million, or $1.51 per diluted share, and adjusted earnings of $66 million, or $1.68 per diluted share
  • Returned capital to shareholders through $20 million of dividends and $10 million of share repurchases, invested $11 million for capital expenditures, and repaid $7 million of debt; closed an extended, upsized Revolving Credit Facility in April, which provides capacity of $1.3 billion

PITTSBURGH, April 29, 2025 /PRNewswire/ -- Global safety equipment and solutions provider MSA Safety Incorporated (NYSE: MSA) today reported financial results for the first quarter of 2025.

"Our solid first quarter results demonstrate the team's continued dedication to executing our Accelerate strategy. Within our diversified portfolio, revenue growth was fueled by robust performance in detection and partnering with our customers to accelerate some shipments in consideration of tariffs," said Steve Blanco, MSA Safety President and CEO. "We saw healthy order growth across our product categories, indicating stable market conditions to start the year. While we expect the environment will become more dynamic moving forward, our team's steadfast commitment to our mission, customer-driven innovation, and the principles of the MSA Business System position us to create long-term value for our stakeholders." 

(a) Definition of organic sales change provided on the bottom of page eight.

Financial Highlights

 

Three Months Ended March 31,

(In millions, except per share data and percentages)

2025

 

2024

 

% Change (a)

Net Sales

$        421.3

 

$        413.3

 

2 %

GAAP

     

Operating income

77.8

 

80.1

 

(3) %

% of Net sales

18.5 %

 

19.4 %

 

(90) bps

Net income

59.6

 

58.1

 

3 %

Diluted EPS

1.51

 

1.47

 

3 %

Non-GAAP

     

Adjusted EBITDA

$        101.5

 

$        101.3

 

— %

% of Net sales

24.1 %

 

24.5 %

 

(40) bps

Adjusted operating income

87.5

 

88.0

 

(1) %

% of Net sales

20.8 %

 

21.3 %

 

(50) bps

Adjusted earnings

66.4

 

63.5

 

5 %

Adjusted diluted EPS

1.68

 

1.61

 

4 %

Free cash flow

51.0

 

39.7

 

29 %

Free cash flow conversion

86 %

 

68 %

  

Americas Segment

     

Net sales

$        293.2

 

$        295.5

 

(1) %

GAAP operating income

76.5

 

84.2

 

(9) %

% of Net sales

26.1 %

 

28.5 %

 

(240) bps

Adjusted operating income

78.7

 

86.2

 

(9) %

% of Net sales

26.8 %

 

29.2 %

 

(240) bps

International Segment

     

Net sales

$        128.2

 

$        117.8

 

9 %

GAAP operating income

17.3

 

11.1

 

56 %

% of Net sales

13.5 %

 

9.4 %

 

410 bps

Adjusted operating income

18.7

 

13.5

 

39 %

% of Net sales

14.6 %

 

11.5 %

 

310 bps

 

(a) Percentage change may not calculate exactly due to rounding.

"Our balance sheet remains strong, and we returned cash to shareholders as part of our balanced capital allocation strategy," commented Elyse Brody, MSA Safety Interim Chief Financial Officer. "We maintain our low-single-digit organic sales growth outlook for 2025, predicated on relative economic stability, while closely monitoring elevated macro risks including tariffs. We will stay close to our customers and remain agile as operating conditions evolve," Brody added.

2025 Net Sales Outlook

The company maintained its low-single-digit full-year organic sales growth outlook for 2025, while acknowledging increased risk due to macroeconomic factors.

Conference Call

MSA Safety will host a conference call on Wednesday, April 30, 2025, at 10:00 a.m. Eastern time to discuss its first quarter 2025 results and outlook. The call and an accompanying slide presentation will be webcast at http://investors.msasafety.com/ under the "News and Events" tab, subheading "Events & Presentations." Investors and interested parties can also dial into the call at 1-844-854-4415 (toll-free) or 1-412-902-6599 (international). When prompted, please instruct the operator to be joined into the MSA Safety Incorporated conference call. A replay of the conference call will be available at http://investors.msasafety.com/ shortly after the conclusion of the presentation and will be available for the next 90 days.

MSA Safety Incorporated

Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except per share amounts)

 

 

Three Months Ended March 31,

 

2025

 

2024

    

Net sales

$                        421,340

 

$                        413,302

Cost of products sold

227,945

 

217,771

Gross profit

193,395

 

195,531

    

Selling, general and administrative

93,965

 

94,150

Research and development

15,669

 

15,919

Restructuring charges

1,924

 

3,017

Currency exchange losses, net

4,076

 

2,333

Operating income

77,761

 

80,112

    

Interest expense

6,835

 

10,740

Other income, net

(7,023)

 

(6,235)

Total other (income) expense, net

(188)

 

4,505

    

Income before income taxes

77,949

 

75,607

Provision for income taxes

18,344

 

17,468

Net income

$                          59,605

 

$                          58,139

    

Earnings per share attributable to common shareholders:

   

Basic

$                              1.51

 

$                              1.48

Diluted

$                              1.51

 

$                              1.47

    

Basic shares outstanding

39,334

 

39,360

Diluted shares outstanding

39,501

 

39,556

 

MSA Safety Incorporated

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

 

 

March 31, 2025

 

December 31, 2024

    

Assets

   

Cash and cash equivalents

$                      170,617

 

$                          164,560

Trade receivables, net

294,423

 

279,213

Inventories

306,675

 

296,796

Other current assets

51,447

 

62,461

    Total current assets

823,162

 

803,030

    

Property, plant and equipment, net

211,714

 

211,865

Prepaid pension cost

229,744

 

224,638

Goodwill

627,200

 

620,895

Intangible assets, net

243,800

 

246,437

Other noncurrent assets

100,265

 

98,919

   Total assets

$                   2,235,885

 

$                       2,205,784

    

Liabilities and shareholders' equity

   

Notes payable and current portion of long-term debt, net

$                        32,886

 

$                            26,391

Accounts payable

116,474

 

108,163

Other current liabilities

131,080

 

153,539

   Total current liabilities

280,440

 

288,093

    

Long-term debt, net

469,171

 

481,622

Pensions and other employee benefits

136,854

 

134,251

Deferred tax liabilities

108,106

 

107,691

Other noncurrent liabilities

51,169

 

50,808

Total shareholders' equity

1,190,145

 

1,143,319

   Total liabilities and shareholders' equity

$                   2,235,885

 

$                       2,205,784

 

MSA Safety Incorporated

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

 

Three Months Ended March 31,

 

2025

 

2024

    

Net income

$                          59,605

 

$                          58,139

Depreciation and amortization

16,251

 

15,559

Change in working capital and other operating

(14,023)

 

(22,812)

Cash flow from operating activities

61,833

 

50,886

    

Capital expenditures

(10,784)

 

(11,219)

Property disposals and other investing

18

 

—

Cash flow used in investing activities

(10,766)

 

(11,219)

    

Change in debt

(7,466)

 

(5,010)

Cash dividends paid

(20,033)

 

(18,490)

Company stock purchases under repurchase program

(9,996)

 

—

Other financing

(8,117)

 

(5,585)

Cash flow used in financing activities

(45,612)

 

(29,085)

    

Effect of exchange rate changes on cash, cash

equivalents and restricted cash

743

 

(8,676)

    

Increase in cash, cash equivalents and restricted cash

$                            6,198

 

$                            1,906

 

MSA Safety Incorporated

Sales by Product Group (Unaudited)

(In thousands, except percentages)

 

Three Months Ended March 31, 2025

 

Consolidated

 

Americas

 

International

  

Dollars

 

Percent

 

Dollars

 

Percent

 

Dollars

 

Percent

Fire Service(a)

 

$  150,616

 

36 %

 

$  105,907

 

36 %

 

$    44,709

 

35 %

Detection(b)

 

161,070

 

38 %

 

109,891

 

37 %

 

51,179

 

40 %

Industrial PPE and Other(c)

 

109,654

 

26 %

 

77,362

 

27 %

 

32,292

 

25 %

Total

 

$  421,340

 

100 %

 

$  293,160

 

100 %

 

$  128,180

 

100 %

             

Three Months Ended March 31, 2024

 

Consolidated

 

Americas

 

International

  

Dollars

 

Percent

 

Dollars

 

Percent

 

Dollars

 

Percent

Fire Service(a)

 

$  163,694

 

40 %

 

$  122,252

 

41 %

 

$    41,442

 

35 %

Detection(b)

 

139,216

 

34 %

 

96,295

 

33 %

 

42,921

 

36 %

Industrial PPE and Other(c)

 

110,392

 

26 %

 

76,992

 

26 %

 

33,400

 

29 %

Total

 

$  413,302

 

100 %

 

$  295,539

 

100 %

 

$  117,763

 

100 %

 

(a) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.

(b) Detection includes Fixed Gas and Flame Detection and Portable Gas detection.

(c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core.

 

MSA Safety Incorporated

Reconciliation of Non-GAAP Financial Measures

Organic sales change (Unaudited)

 

Consolidated

 

Three Months Ended March 31, 2025

 

Fire 
Service(a)

Detection(b)

Industrial PPE 
and Other(c)

 

Net Sales

GAAP reported sales change

(8) %

16 %

(1) %

 

2 %

Plus: Currency translation effects

1 %

1 %

4 %

 

2 %

Organic sales change

(7) %

17 %

3 %

 

4 %

 

Americas Segment

 

 

Three Months Ended March 31, 2025

 

Fire 
Service(a)

Detection(b)

Industrial PPE
and Other(c)

 

Net Sales

GAAP reported sales change

(13) %

14 %

— %

 

(1) %

Plus: Currency translation effects

— %

2 %

5 %

 

2 %

Organic sales change

(13) %

16 %

5 %

 

1 %

 

International Segment

 

Three Months Ended March 31, 2025

 

Fire 
Service(a)

Detection(b)

Industrial PPE 
and Other(c)

 

Net Sales

GAAP reported sales change

8 %

19 %

(3) %

 

9 %

Plus: Currency translation effects

2 %

2 %

2 %

 

2 %

Organic sales change

10 %

21 %

(1) %

 

11 %

 

 (a) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.

 (b) Detection includes Fixed Gas and Flame Detection and Portable Gas Detection.

 (c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core.

Management believes that organic sales change is a useful metric for investors, as foreign currency translation, acquisitions and divestitures can have a material impact on sales change trends. Organic sales change highlights ongoing business performance excluding the impact of fluctuating foreign currencies, acquisitions and divestitures. There can be no assurances that MSA's definition of organic sales change is consistent with that of other companies. As such, management believes that it is appropriate to consider sales change determined on a GAAP basis in addition to this non-GAAP financial measure.

MSA Safety Incorporated

Reconciliation of Non-GAAP Financial Measures

Adjusted operating income (Unaudited)

Adjusted EBITDA (Unaudited)

(In thousands)

 

 

Three months ended March 31,

 

2025

 

2024

    

Adjusted EBITDA

$                        101,467

 

$                        101,254

Less:

   

     Depreciation and amortization

13,965

 

13,245

Adjusted operating income

87,502

 

88,009

Less:

   

     Restructuring charges

1,924

 

3,017

     Currency exchange losses, net

4,076

 

2,333

     Amortization of acquisition-related intangible assets

2,286

 

2,314

     Transaction costs (a)

1,455

 

233

GAAP operating income

77,761

 

80,112

Less:

   

     Interest expense

6,835

 

10,740

     Other income, net

(7,023)

 

(6,235)

Income before income taxes

77,949

 

75,607

Provision for income taxes

18,344

 

17,468

Net income

$                          59,605

 

$                          58,139

 

(a)  Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred in connection with acquisitions and divestitures. These costs are included in selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income.

Adjusted operating income, adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are non-GAAP financial measures and operating ratios derived from non-GAAP measures. Adjusted operating income is defined as operating income excluding restructuring charges, currency exchange gains / losses, amortization of acquisition-related intangible assets, and transaction costs. Adjusted operating margin is defined as adjusted operating income divided by net sales to external customers. Adjusted EBITDA is defined as adjusted operating income plus depreciation and amortization, and adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales to external customers. These metrics are consistent with how management evaluates segment results and makes strategic decisions about the business. Additionally, these non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are not recognized terms under GAAP, and therefore do not purport to be alternatives to operating income or operating margin as a measure of operating performance. The company's definition of adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. As such, management believes that it is appropriate to consider operating income and net income determined on a GAAP basis in addition to these non-GAAP measures.

MSA Safety Incorporated

Reconciliation of Non-GAAP Financial Measures

Adjusted earnings (Unaudited)

Adjusted diluted earnings per share (Unaudited)

(In thousands, except per share amounts and percentages)

 

 

Three Months Ended 
March 31,

  
 

2025

 

2024

 

%

Change

      

Net income

$     59,605

 

$     58,139

 

3 %

      

Restructuring charges

1,924

 

3,017

  

Currency exchange losses, net

4,076

 

2,333

  

Amortization of acquisition-related intangible assets

2,286

 

2,314

  

Asset related losses

8

 

51

  

Transaction costs (a)

1,455

 

233

  

Income tax expense on adjustments

(2,916)

 

(2,590)

  

Adjusted earnings

$     66,438

 

$     63,497

 

5 %

      

Adjusted diluted earnings per share

$         1.68

 

$         1.61

 

4 %

      
 

(a)Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred in connection with acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income.

Management believes that adjusted earnings and adjusted diluted earnings per share are useful measures for investors, as management uses these measures to internally assess the company's performance and ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that MSA's definition of adjusted earnings is consistent with that of other companies. As such, management believes that it is appropriate to consider both net income determined on a GAAP basis as well as adjusted earnings.

MSA Safety Incorporated

Reconciliation of Non-GAAP Financial Measures

Debt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited)

(In thousands)

 

  

Twelve Months Ended 
March 31, 2025

Operating income

 

$                         386,826

Depreciation and amortization

 

55,879

Restructuring charges

 

5,304

Currency exchange losses, net

 

5,381

Amortization of acquisition-related intangible assets

 

9,146

Net cost for product related legal matter

 

5,000

Transaction costs (a)

 

2,108

Adjusted EBITDA

 

$                         469,644

   

Total end-of-period debt

 

502,057

   

Debt to adjusted EBITDA

 

1.1

   

Total end-of-period debt

 

$                         502,057

Total end-of-period cash and cash equivalents

 

170,617

Net debt

 

$                         331,440

   

Net debt to adjusted EBITDA

 

0.7

 

(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred in connection with acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income.

Management believes that Debt to adjusted EBITDA and Net debt to adjusted EBITDA are useful measures for investors, as management uses these measures to internally assess the company's liquidity and balance sheet strength. There can be no assurances that that MSA's definition of Debt to adjusted EBITDA and Net debt to adjusted EBITDA is consistent with that of other companies.

About MSA Safety:  

MSA Safety Incorporated (NYSE: MSA) is the global leader in advanced safety products, technologies and solutions. Driven by its singular mission of safety, the Company has been at the forefront of safety innovation since 1914, protecting workers and facility infrastructure around the world across a broad range of diverse end markets while creating sustainable value for shareholders. With 2024 revenues of  $1.8 billion, MSA Safety is headquartered in Cranberry Township, Pennsylvania and employs a team of over 5,000 associates across its more than 40 international locations. For more information, please visit www.MSASafety.com.

Cautionary Statement Regarding Forward-Looking Statements:

Except for historical information, certain matters discussed in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance and involve various assumptions, known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or other comparable words. Actual results, performance or outcomes may differ materially from those expressed or implied by these forward-looking statements and may not align with historical performance and events due to a number of factors, including those discussed in the sections of our annual report on Form 10-K entitled "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors," and those discussed in our Form 10-Q quarterly reports filed after such annual report. MSA's SEC filings are readily obtainable at no charge at www.sec.gov, as well as on its own investor relations website at http://investors.MSAsafety.com. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and caution should be exercised against placing undue reliance upon such statements, which are based only on information currently available to us and speak only as of the date hereof. We are under no duty to update publicly any of the forward-looking statements after the date of this earnings press release, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures:
This press release includes certain non-GAAP financial measures. These financial measures include organic sales change, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted earnings, adjusted earnings per diluted share, debt to adjusted EBITDA, and net debt to adjusted EBITDA. These non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Management also uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use, and computational methods with respect thereto, may differ from the non-GAAP financial measures and key performance indicators, and computational methods, that our peers use to assess their performance and trends.

The presentation of these non-GAAP financial measures does not comply with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. When non-GAAP financial measures are disclosed, the Securities and Exchange Commission's Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. For an explanation of these measures, with a reconciliation to the most directly comparable GAAP financial measure, see the Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures in the financial tables section above.

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SOURCE MSA Safety

Media Relations Contact: Mark Deasy (412) 559-8154; Investor Relations Contact: Larry De Maria (917) 449-2237