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

Global safety equipment and solutions provider MSA Safety Incorporated (NYSE: MSA) today reported financial results for the first quarter of 2025.

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“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%GAAPOperating income 77.8 80.1 (3)%% of Net sales 18.5% 19.4% (90) bpsNet income 59.6 58.1 3%Diluted EPS 1.51 1.47 3%Non-GAAPAdjusted EBITDA $ 101.5 $ 101.3 -%% of Net sales 24.1% 24.5% (40) bpsAdjusted operating income 87.5 88.0 (1)%% of Net sales 20.8% 21.3% (50) bpsAdjusted 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 SegmentNet sales $ 293.2 $ 295.5 (1)%GAAP operating income 76.5 84.2 (9)%% of Net sales 26.1% 28.5% (240) bpsAdjusted operating income 78.7 86.2 (9)%% of Net sales 26.8% 29.2% (240) bpsInternational SegmentNet sales $ 128.2 $ 117.8 9%GAAP operating income 17.3 11.1 56%% of Net sales 13.5% 9.4% 410 bpsAdjusted 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 IncorporatedCondensed Consolidated Statements of Income (Unaudited)(In thousands, except per share amounts) Three Months Ended March 31, 2025 2024Net sales $ 421,340 $ 413,302Cost of products sold 227,945 217,771Gross profit 193,395 195,531Selling, general and administrative 93,965 94,150Research and development 15,669 15,919Restructuring charges 1,924 3,017Currency exchange losses, net 4,076 2,333Operating income 77,761 80,112Interest expense 6,835 10,740Other income, net (7,023) (6,235)Total other (income) expense, net (188) 4,505Income before income taxes 77,949 75,607Provision for income taxes 18,344 17,468Net income $ 59,605 $ 58,139Earnings per share attributable to common shareholders:Basic $ 1.51 $ 1.48Diluted $ 1.51 $ 1.47Basic shares outstanding 39,334 39,360Diluted shares outstanding 39,501 39,556MSA Safety IncorporatedCondensed Consolidated Balance Sheets (Unaudited)(In thousands) March 31, 2025 December 31, 2024AssetsCash and cash equivalents $ 170,617 $ 164,560Trade receivables, net 294,423 279,213Inventories 306,675 296,796Other current assets 51,447 62,461Total current assets 823,162 803,030Property, plant and equipment, net 211,714 211,865Prepaid pension cost 229,744 224,638Goodwill 627,200 620,895Intangible assets, net 243,800 246,437Other noncurrent assets 100,265 98,919Total assets $ 2,235,885 $ 2,205,784Liabilities and shareholders' equityNotes payable and current portion of long-term debt, net $ 32,886 $ 26,391Accounts payable 116,474 108,163Other current liabilities 131,080 153,539Total current liabilities 280,440 288,093Long-term debt, net 469,171 481,622Pensions and other employee benefits 136,854 134,251Deferred tax liabilities 108,106 107,691Other noncurrent liabilities 51,169 50,808Total shareholders' equity 1,190,145 1,143,319Total liabilities and shareholders' equity $ 2,235,885 $ 2,205,784MSA Safety IncorporatedCondensed Consolidated Statements of Cash Flows (Unaudited)(In thousands) Three Months Ended March 31, 2025 2024Net income $ 59,605 $ 58,139Depreciation and amortization 16,251 15,559Change in working capital and other operating (14,023) (22,812)Cash flow from operating activities 61,833 50,886Capital 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 743 (8,676)equivalents and restricted cashIncrease in cash, cash equivalents and restricted cash $ 6,198 $ 1,906MSA Safety IncorporatedSales by Product Group (Unaudited)(In thousands, except percentages)Three Months Ended March 31, 2025 Consolidated Americas International Dollars Percent Dollars Percent Dollars PercentFire 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 PercentFire 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 IncorporatedReconciliation of Non-GAAP Financial MeasuresOrganic sales change (Unaudited)Consolidated Three Months Ended March 31, 2025 Fire Detection(b) Industrial PPE Net Sales Service(a) and Other(c)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 Detection(b) Industrial PPE Net Sales Service(a) and Other(c)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 Detection(b) Industrial PPE Net Sales Service(a) and Other(c)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 IncorporatedReconciliation of Non-GAAP Financial MeasuresAdjusted operating income (Unaudited)Adjusted EBITDA (Unaudited)(In thousands) Three months ended March 31, 2025 2024Adjusted EBITDA $ 101,467 $ 101,254Less:Depreciation and amortization 13,965 13,245Adjusted operating income 87,502 88,009Less:Restructuring charges 1,924 3,017Currency exchange losses, net 4,076 2,333Amortization of acquisition-related intangible assets 2,286 2,314Transaction costs (a) 1,455 233GAAP operating income 77,761 80,112Less:Interest expense 6,835 10,740Other income, net (7,023) (6,235)Income before income taxes 77,949 75,607Provision for income taxes 18,344 17,468Net 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 IncorporatedReconciliation of Non-GAAP Financial MeasuresAdjusted earnings (Unaudited)Adjusted diluted earnings per share (Unaudited)(In thousands, except per share amounts and percentages) Three Months Ended March 31, 2025 2024 % ChangeNet income $ 59,605 $ 58,139 3%Restructuring charges 1,924 3,017Currency exchange losses, net 4,076 2,333Amortization of acquisition-related intangible assets 2,286 2,314Asset related losses 8 51Transaction costs (a) 1,455 233Income 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 IncorporatedReconciliation of Non-GAAP Financial MeasuresDebt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited)(In thousands) Twelve Months Ended March 31, 2025Operating income $ 386,826Depreciation and amortization 55,879Restructuring charges 5,304Currency exchange losses, net 5,381Amortization of acquisition-related intangible assets 9,146Net cost for product related legal matter 5,000Transaction costs (a) 2,108Adjusted EBITDA $ 469,644Total end-of-period debt 502,057Debt to adjusted EBITDA 1.1Total end-of-period debt $ 502,057Total end-of-period cash and cash equivalents 170,617Net debt $ 331,440Net 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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