Second Quarter 2025 Highlights
- Achieved quarterly net sales of $474 million, a 3% GAAP increase and flat organic(a) year-over-year
- Generated GAAP operating income of $86 million, or 18.1% of sales, and adjusted operating income of $101 million, or 21.4% of sales
- Recorded GAAP net income of $63 million, or $1.59 per diluted share, and adjusted earnings of $76 million, or $1.93 per diluted share
- Acquired M&C TechGroup, a leading manufacturer of gas analysis and process safety technologies, in a transaction valued at $188 million, net of cash acquired
- Repurchased $30 million of common stock, invested $29 million for capital expenditures, including a strategic footprint investment, and paid $21 million of dividends
PITTSBURGH, Aug. 4, 2025 /PRNewswire/ — Global safety equipment and solutions provider MSA Safety Incorporated (NYSE:MSA) today reported financial results for the second quarter of 2025.
“Our second quarter financial performance demonstrates our team’s commitment to our Accelerate strategy and creating long-term value for our stakeholders,” said Steve Blanco, MSA Safety President and CEO. “Although we had a difficult comparison within our broader portfolio, leveraging the MSA Business System enabled strong backlog conversion of key customer orders, and we are energized by the momentum in our growth accelerator product categories of detection and fall protection. Lastly, we deployed capital for the acquisition of M&C TechGroup to expand our addressable market in detection, further diversify our end markets, and create a synergistic platform for growth in the gas analysis and process safety markets.”
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(a) Definition of organic sales change provided on the bottom of page nine. |
Financial Highlights
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Three Months Ended June 30, |
Six Months Ended June 30, |
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|
(In millions, except per share data and percentages) |
2025 |
2024 |
% Change (a) |
2025 |
2024 |
% Change (a) |
|||||
|
Net Sales |
$ 474.1 |
$ 462.5 |
3 % |
$ 895.5 |
$ 875.8 |
2 % |
|||||
|
GAAP |
|||||||||||
|
Operating income |
85.9 |
99.9 |
(14) % |
163.6 |
180.1 |
(9) % |
|||||
|
% of Net sales |
18.1 % |
21.6 % |
(350) bps |
18.3 % |
20.6 % |
(230) bps |
|||||
|
Net income |
62.8 |
72.2 |
(13) % |
122.4 |
130.4 |
(6) % |
|||||
|
Diluted EPS |
1.59 |
1.83 |
(13) % |
3.10 |
3.30 |
(6) % |
|||||
|
Non-GAAP |
|||||||||||
|
Adjusted EBITDA |
$ 116.5 |
$ 121.9 |
(4) % |
$ 218.0 |
$ 223.2 |
(2) % |
|||||
|
% of Net sales |
24.6 % |
26.4 % |
(180) bps |
24.3 % |
25.5 % |
(120) bps |
|||||
|
Adjusted operating income |
101.4 |
108.2 |
(6) % |
188.9 |
196.2 |
(4) % |
|||||
|
% of Net sales |
21.4 % |
23.4 % |
(200) bps |
21.1 % |
22.4 % |
(130) bps |
|||||
|
Adjusted earnings |
75.9 |
79.7 |
(5) % |
142.4 |
143.2 |
(1) % |
|||||
|
Adjusted diluted EPS |
1.93 |
2.01 |
(4) % |
3.61 |
3.62 |
— % |
|||||
|
Free cash flow |
37.9 |
39.0 |
(3) % |
88.9 |
78.6 |
13 % |
|||||
|
Free cash flow conversion |
60 % |
54 % |
73 % |
60 % |
|||||||
|
Americas Segment |
|||||||||||
|
Net sales |
$ 320.1 |
$ 314.7 |
2 % |
$ 613.3 |
$ 610.2 |
— % |
|||||
|
GAAP operating income |
91.3 |
96.2 |
(5) % |
167.8 |
180.3 |
(7) % |
|||||
|
% of Net sales |
28.5 % |
30.6 % |
(210) bps |
27.4 % |
29.6 % |
(220) bps |
|||||
|
Adjusted operating income |
93.3 |
98.5 |
(5) % |
172.0 |
184.7 |
(7) % |
|||||
|
% of Net sales |
29.1 % |
31.3 % |
(220) bps |
28.0 % |
30.3 % |
(230) bps |
|||||
|
International Segment |
|||||||||||
|
Net sales |
$ 154.0 |
$ 147.8 |
4 % |
$ 282.2 |
$ 265.5 |
6 % |
|||||
|
GAAP operating income |
12.2 |
22.8 |
(46) % |
29.5 |
33.9 |
(13) % |
|||||
|
% of Net sales |
8.0 % |
15.4 % |
(740) bps |
10.5 % |
12.8 % |
(230) bps |
|||||
|
Adjusted operating income |
20.2 |
24.3 |
(17) % |
38.9 |
37.8 |
3 % |
|||||
|
% of Net sales |
13.1 % |
16.4 % |
(330) bps |
13.8 % |
14.2 % |
(40) bps |
|||||
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(a) Percentage change may not calculate exactly due to rounding. |
“Our balance sheet remains strong, enabling us to invest in growth and return cash to shareholders through our disciplined capital allocation strategy,” stated Elyse Brody, Interim CFO of MSA Safety. “Highlights this quarter include the acquisition of M&C TechGroup, our 55th consecutive annual dividend increase, share repurchases, and a strategic footprint investment in Cranberry Township, Pa., to expand manufacturing and engineering capabilities at our detection Center of Excellence. We reaffirm our low-single-digit organic sales growth outlook for 2025 while actively preparing for a wide range of macro scenarios, including tariffs, industrial demand, and the timing of the National Fire Protection Association (NFPA) approval for our next-generation self-contained breathing apparatus (SCBA),” Brody added.
2025 Net Sales Outlook
The company maintained its low-single-digit full-year organic sales growth outlook for 2025, while acknowledging ongoing risk due to macroeconomic factors and the timing of the NFPA standard approval process.
Conference Call
MSA Safety will host a conference call on Tuesday, August 5, 2025, at 10:00 a.m. Eastern time to discuss its second 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.
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MSA Safety Incorporated Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) |
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Three Months Ended |
Six Months Ended |
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|
2025 |
2024 |
2025 |
2024 |
||||
|
Net sales |
$ 474,116 |
$ 462,463 |
$ 895,456 |
$ 875,765 |
|||
|
Cost of products sold |
253,406 |
239,434 |
481,351 |
457,205 |
|||
|
Gross profit |
220,710 |
223,029 |
414,105 |
418,560 |
|||
|
Selling, general and administrative |
112,078 |
105,075 |
206,042 |
199,226 |
|||
|
Research and development |
16,996 |
17,070 |
32,665 |
32,988 |
|||
|
Restructuring charges |
488 |
1,543 |
2,412 |
4,560 |
|||
|
Currency exchange losses (gains), net |
5,286 |
(603) |
9,363 |
1,730 |
|||
|
Operating income |
85,862 |
99,944 |
163,623 |
180,056 |
|||
|
Interest expense |
8,116 |
9,664 |
14,951 |
20,403 |
|||
|
Other income, net |
(5,000) |
(4,148) |
(12,022) |
(10,382) |
|||
|
Total other expense, net |
3,116 |
5,516 |
2,929 |
10,021 |
|||
|
Income before income taxes |
82,746 |
94,428 |
160,694 |
170,035 |
|||
|
Provision for income taxes |
19,973 |
22,194 |
38,316 |
39,662 |
|||
|
Net income |
$ 62,773 |
$ 72,234 |
$ 122,378 |
$ 130,373 |
|||
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Earnings per share attributable to common shareholders: |
|||||||
|
Basic |
$ 1.60 |
$ 1.83 |
$ 3.11 |
$ 3.31 |
|||
|
Diluted |
$ 1.59 |
$ 1.83 |
$ 3.10 |
$ 3.30 |
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Basic shares outstanding |
39,258 |
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