Third Quarter 2025Highlights
— Achieved quarterly net sales of $468 million, an 8% GAAP increase and a 3% organic increase year-over-year
— Generated GAAP operating income of $94 million, or 20.1% of sales, and adjusted operating income of $104 million, or 22.1% of sales
— Recorded GAAP net income of $70 million, or $1.77 per diluted share, and adjusted earnings of $76 million, or $1.94 per diluted share
— Generated free cash flow of $100 million; repaid $50 million of debt, net leverage declined to 1.0x; ample liquidity of $1.1 billion
Global safety equipment and solutions providerMSA Safety Incorporated (NYSE: MSA) today reported financial results for the third quarter of 2025.
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“Our financial performance in the third quarter reflected solid results, demonstrating our continued execution of our Accelerate strategy,” said Steve Blanco, President and CEO of MSA Safety. “We continued our broad-based momentum in fixed and portable detection and delivered double-digit growth in fall protection. The success of these growth areas offset timing headwinds in the fire service due to the later-than-normal announcement of the annual Assistance to Firefighter Grants program in the U.S. Additionally, I am pleased to report that our recent acquisition of M&C TechGroup is performing well, and the integration remains on track.”
“Joining MSA Safety as Chief Financial Officer and working alongside such a passionate and dedicated team is an honor,” stated Julie Beck, MSA Safety Chief Financial Officer. “It became very clear to me early on that the commitment to the mission of safety is an intangible asset that sets MSA apart. Our balance sheet remains strong, we retain our disciplined and balanced capital allocation strategy and maintain an active M&A pipeline. Following our strong free cash flow generation year-to-date, we expect to repurchase shares in the fourth quarter. We reaffirm our low-single-digit organic sales growth outlook for 2025 while continuing to manage through the U.S. Government shutdown and near-term timing-related challenges in the fire service, as well as ongoing macro and tariff-related dynamics,” Ms. Beck added.
Financial Highlights
Three Months Ended September 30, Nine Months Ended September 30,(In millions, except per share 2025 2024 % Change (a) 2025 2024 % Change (a)data and percentages)Net Sales $ 468.4 $ 432.7 8% $ 1,363.9 $ 1,308.4 4%GAAPOperating income 94.3 91.5 3% 257.9 271.5 (5)%% of Net sales 20.1% 21.1% (100) bps 18.9% 20.8% (190) bpsNet income 69.6 66.6 4% 192.0 197.0 (3)%Diluted EPS 1.77 1.69 5% 4.87 4.98 (2)%Non-GAAPAdjusted EBITDA $ 118.9 $ 111.6 7% $ 336.9 $ 334.8 1%% of Net sales 25.4% 25.8% (40) bps 24.7% 25.6% (90) bpsAdjusted operating income 103.7 97.9 6% 292.7 294.1 -%% of Net sales 22.1% 22.6% (50) bps 21.5% 22.5% (100) bpsAdjusted earnings 76.2 72.3 5% 218.6 215.5 1%Adjusted diluted EPS 1.94 1.83 6% 5.55 5.45 2%Free cash flow 100.5 70.1 43% 189.4 148.7 27%Free cash flow conversion 144% 105% 99% 75%Americas SegmentNet sales $ 313.3 $ 299.5 5% $ 926.6 $ 909.7 2%GAAP operating income 86.7 89.4 (3)% 254.5 269.8 (6)%% of Net sales 27.7% 29.9% (220) bps 27.5% 29.7% (220) bpsAdjusted operating income 88.7 91.8 (3)% 260.7 276.5 (6)%% of Net sales 28.3% 30.7% (240) bps 28.1% 30.4% (230) bpsInternational SegmentNet sales $ 155.1 $ 133.2 16% $ 437.3 $ 398.7 10%GAAP operating income 22.7 17.4 31% 52.3 51.3 2%% of Net sales 14.7% 13.0% 170 bps 12.0% 12.9% (90) bpsAdjusted operating income 24.8 18.2 37% 63.7 55.9 14%% of Net sales 16.0% 13.6% 240 bps 14.6% 14.0% 60 bps
(a) Percentage change may not calculate exactly due to rounding.
2025 Net Sales Outlook
The company maintained its low-single-digit organic sales growth outlook for 2025 and noted the health of its overall business, while acknowledging ongoing risks related to macroeconomic factors. It also noted near-term timing challenges due to the later-than-normal Assistance to Firefighter Grant (AFG) release and the subsequent U.S. Government shutdown, which will shift a portion of fourth quarter sales to 2026, predominantly in the fire service, along with the timing of the National Fire Protection Association (NFPA) approval for their next-generation self-contained breathing apparatus (SCBA).
Conference Call
MSA Safety will host a conference call on Wednesday, October 29, 2025, at 10:00 a.m. Eastern Time to discuss its third quarter 2025 results and full-year 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.
MSASafety IncorporatedCondensed Consolidated Statements of Income (Unaudited)(In thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024Net sales $ 468,445 $ 432,679 $ 1,363,900 $ 1,308,443Cost of products sold 250,829 225,223 732,179 682,427Gross profit 217,616 207,456 631,721 626,016Selling, general and administrative 102,852 95,103 308,895 294,329Research and development 16,521 16,707 49,186 49,695Restructuring charges 58 1,184 2,470 5,744Currency exchange losses, net 3,875 2,985 13,237 4,715Operating income 94,310 91,477 257,933 271,533Interest expense 8,416 9,153 23,368 29,556Other income, net (6,562) (5,833) (18,585) (16,215)Total other expense, net 1,854 3,320 4,783 13,341Income before income taxes 92,456 88,157 253,150 258,192Provision for income taxes 22,843 21,509 61,159 61,171Net income $ 69,613 $ 66,648 $ 191,991 $ 197,021Earnings per share attributable to commonshareholders:Basic $ 1.78 $ 1.69 $ 4.89 $ 5.00Diluted $ 1.77 $ 1.69 $ 4.87 $ 4.98Basic shares outstanding 39,168 39,362 39,253 39,370Diluted shares outstanding 39,280 39,495 39,380 39,530
MSASafety IncorporatedCondensed Consolidated Balance Sheets (Unaudited)(In thousands) September 30, 2025 December 31, 2024AssetsCash and cash equivalents $ 169,998 $ 164,560Trade receivables, net 306,949 279,213Inventories 355,493 296,796Other current assets 62,328 62,461Total current assets 894,768 803,030Property, plant and equipment, net 278,481 211,865Prepaid pension cost 239,411 224,638Goodwill 732,224 620,895Intangible assets, net 304,505 246,437Other noncurrent assets 104,188 98,919Total assets $ 2,553,577 $ 2,205,784Liabilities and shareholders' equityNotes payable and current portion of long-term debt, net $ 8,209 $ 26,391Accounts payable 119,872 108,163Other current liabilities 162,190 153,539Total current liabilities 290,271 288,093Long-term debt, net 620,374 481,622Pensions and other employee benefits 151,596 134,251Deferred tax liabilities 133,200 107,691Other noncurrent liabilities 55,746 50,808Total shareholders' equity 1,302,390 1,143,319Total liabilities and shareholders' equity $ 2,553,577 $ 2,205,784
MSASafety IncorporatedCondensed Consolidated Statements of Cash Flows (Unaudited)(In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024Net income $ 69,613 $ 66,648 $ 191,991 $ 197,021Depreciation and amortization 18,585 15,959 52,935 47,563Change in working capital and other operating 24,264 1,725 (3,413) (56,064)Cash flow from operating activities 112,462 84,332 241,513 188,520Capital expenditures (11,986) (14,254) (52,104) (39,814)Acquisitions, net of cash acquired – – (187,774) -Property disposals and other investing – 16 19 90Cash flow used in investing activities (11,986) (14,238) (239,859) (39,724)Change in debt (49,892) (37,743) 115,328 (51,003)Cash dividends paid (20,757) (20,081) (61,638) (58,670)Company stock purchases under repurchase program – (10,027) (39,995) (20,027)Other financing (1,156) (603) (11,521) (6,472)Cash flow (used in) from financing activities (71,805) (68,454) 2,174 (136,172)Effect of exchange rate changes on cash, cash (5,690) 4,495 2,002 (6,062)equivalents and restricted cashIncrease in cash, cash equivalents and restricted cash $ 22,981 $ 6,135 $ 5,830 $ 6,562
MSASafety IncorporatedSales by Product Group (Unaudited)(In thousands, except percentages)Three Months Ended September 30, Consolidated Americas International2025 Dollars Percent Dollars Percent Dollars PercentDetection(a) $ 191,188 41% $ 124,111 40% $ 67,077 43%Fire Service(b) 158,654 34% 109,497 35% 49,157 32%Industrial PPE and Other(c) 118,603 25% 79,742 25% 38,861 25%Total $ 468,445 100% $ 313,350 100% $ 155,095 100%Three Months Ended September 30, 2024 Consolidated Americas International Dollars Percent Dollars Percent Dollars PercentDetection(a) $ 163,150 38% $ 110,459 37% $ 52,691 40%Fire Service(b) 160,515 37% 111,992 37% 48,523 36%Industrial PPE and Other(c) 109,014 25% 77,046 26% 31,968 24%Total $ 432,679 100% $ 299,497 100% $ 133,182 100%Nine Months Ended September 30, 2025 Consolidated Americas International Dollars Percent Dollars Percent Dollars PercentDetection(a) $ 546,094 40% $ 361,176 39% $ 184,918 42%Fire Service(b) 472,576 35% 326,220 35% 146,356 33%Industrial PPE and Other(c) 345,230 25% 239,253 26% 105,977 25%Total $ 1,363,900 100% $ 926,649 100% $ 437,251 100%Nine Months Ended September 30, 2024 Consolidated Americas International Dollars Percent Dollars Percent Dollars PercentDetection(a) 473,214 36% 318,159 35% 155,055 39%Fire Service(b) 496,478 38% 352,730 39% 143,748 36%Industrial PPE and Other(c) 338,751 26% 238,856 26% 99,895 25%Total $ 1,308,443 100% $ 909,745 100% $ 398,698 100%
(a) Detection includes Fixed Gas and Flame Detection and Portable Gas detection. Detection includes sales from M&C TechGroup Germany GmbH and its affiliated companies (“M&C”), acquired by the Company, from May 6th, 2025, onward (Americas and International).(b) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.(c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core.
MSASafety IncorporatedReconciliation of Non-GAAP Financial MeasuresOrganic sales change (Unaudited)Consolidated Three months ended September 30, 2025 Detection(a) Fire Industrial PPE Net Sales Service(b) and Other(c)GAAP reported sales change 17% (1)% 9% 8%Currency translation effects (1)% (2)% (2)% (1)%Less: Acquisitions (10)% -% -% (4)%Organic sales change 6% (3)% 7% 3% Nine months ended September 30, 2025 Detection(a) Fire Industrial PPE Net Sales Service(b) and Other(c)GAAP reported sales change 15% (5)% 2% 4%Currency translation effects -% -% 1% -%Less: Acquisitions (5)% -% -% (2)%Organic sales change 10% (5)% 3% 2%Americas Segment Three months ended September 30, 2025 Detection(a) Fire Industrial PPE Net Sales Service(b) and Other(c)GAAP reported sales change 12% (2)% 3% 5%Currency translation effects -% -% -% -%Less: Acquisitions (5)% -% -% (2)%Organic sales change 7% (2)% 3% 3% Nine months ended September 30, 2025 Detection(a) Fire Industrial PPE Net Sales Service(b) and Other(c)GAAP reported sales change 14% (8)% -% 2%Currency translation effects 1% 1% 2% 1%Less: Acquisitions (4)% -% -% (1)%Organic sales change 11% (7)% 2% 2%International Segment Three months ended September 30, 2025 Detection(a) Fire Industrial PPE Net Sales Service(b) and Other(c)GAAP reported sales change 27% 1% 22% 16%Currency translation effects (4)% (4)% (5)% (4)%Less: Acquisitions (18)% -% -% (7)%Organic sales change 5% (3)% 17% 5% Nine months ended September 30, 2025 Detection(a) Fire Service(b) Industrial PPE Net Sales and Other(c)GAAP reported sales change 19% 2% 6% 10%Currency translation effects (2)% (2)% (2)% (2)%Less: Acquisitions (11)% -% -% (5)%Organic sales change 6% -% 4% 3%
(a) Detection includes Fixed Gas and Flame Detection and Portable Gas Detection. Detection includes sales from M&C, acquired by the Company, from May 6th, 2025, onward (Americas and International).(b) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.(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 Nine months ended September 30, September 30, 2025 2024 2025 2024Adjusted EBITDA $ 118,934 $ 111,605 $ 336,912 $ 334,789Less:Depreciation and amortization 15,193 13,690 44,237 40,675Adjusted operating income 103,741 97,915 292,675 294,114Less:Currency exchange losses, net 3,875 2,985 13,237 4,715Restructuring charges 58 1,184 2,470 5,744Acquisition-related amortization 3,595 2,269 9,033 6,888Net cost for product related legal matter – – – 5,000Transaction costs (a) 1,903 – 10,002 234GAAP operating income 94,310 91,477 257,933 271,533Less:Interest expense 8,416 9,153 23,368 29,556Other income, net (6,562) (5,833) (18,585) (16,215)Income before income taxes 92,456 88,157 253,150 258,192Provision for income taxes 22,843 21,509 61,159 61,171Net income $ 69,613 $ 66,648 $ 191,991 $ 197,021
(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, acquisition-related amortization, net cost for product related legal matter 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 Nine Months Ended September 30, September 30, 2025 2024 % 2025 2024 % Change ChangeNet income $ 69,613 $ 66,648 4% $ 191,991 $ 197,021 (3)%Currency exchange losses, net 3,875 2,985 13,237 4,715Restructuring charges 58 1,184 2,470 5,744Acquisition-related amortization 3,595 2,269 9,033 6,888Transaction costs (a) 1,903 – 10,002 234Asset related losses 97 207 989 959Pension settlement – – 721 1,308Net cost for product related legal matter – – – 5,000Income tax expense on adjustments (2,949) (995) (9,885) (6,412)Adjusted earnings $ 76,192 $ 72,298 5% $ 218,558 $ 215,457 1%Adjusted diluted earnings per share $ 1.94 $ 1.83 6% $ 5.55 $ 5.45 2%Diluted shares outstanding 39,280 39,495 39,380 39,530
(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 September 30, 2025Operating income $ 375,577Depreciation and amortization 58,721Currency exchange losses, net 12,160Restructuring charges 3,123Acquisition-related amortization 11,319Transaction costs (a) 10,654Adjusted EBITDA $ 471,554Total end-of-period debt 628,583Debt to adjusted EBITDA 1.3Total end-of-period debt $ 628,583Total end-of-period cash and cash equivalents 169,998Net debt $ 458,585Net debt to adjusted EBITDA 1.0
(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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