MSA Safety Announces Second Quarter 2025 Results
MSA Safety (NYSE: MSA) reported Q2 2025 financial results with net sales of $474.1 million, representing a 3% GAAP increase but flat organic growth year-over-year. The company posted GAAP operating income of $86 million (18.1% of sales) and adjusted operating income of $101 million (21.4% of sales).
Key highlights include the acquisition of M&C TechGroup for $188 million, expanding MSA's presence in gas analysis and process safety markets. The company maintained shareholder returns through $30 million in stock repurchases and a 55th consecutive annual dividend increase. Management reaffirmed its low-single-digit organic sales growth outlook for 2025 while noting risks from macroeconomic factors and NFPA approval timing.
MSA Safety (NYSE: MSA) ha comunicato i risultati finanziari del secondo trimestre 2025 con vendite nette pari a 474,1 milioni di dollari, segnando un aumento del 3% secondo i principi contabili GAAP, ma una crescita organica stabile rispetto all'anno precedente. L'azienda ha registrato un utile operativo GAAP di 86 milioni di dollari (18,1% delle vendite) e un utile operativo rettificato di 101 milioni di dollari (21,4% delle vendite).
Tra i punti salienti vi 猫 stata l'acquisizione di M&C TechGroup per 188 milioni di dollari, che ha ampliato la presenza di MSA nei mercati dell'analisi dei gas e della sicurezza di processo. L'azienda ha mantenuto i ritorni per gli azionisti attraverso 30 milioni di dollari in riacquisti di azioni e un 55掳 aumento consecutivo del dividendo annuale. La direzione ha confermato le previsioni di una crescita organica delle vendite a una cifra bassa per il 2025, evidenziando per貌 rischi derivanti da fattori macroeconomici e dai tempi di approvazione NFPA.
MSA Safety (NYSE: MSA) inform贸 sus resultados financieros del segundo trimestre de 2025 con ventas netas de
Entre los aspectos destacados se incluye la adquisici贸n de M&C TechGroup por 188 millones de d贸lares, expandiendo la presencia de MSA en los mercados de an谩lisis de gases y seguridad de procesos. La empresa mantuvo retornos para los accionistas mediante 30 millones de d贸lares en recompras de acciones y un 55潞 aumento consecutivo del dividendo anual. La direcci贸n reafirm贸 su perspectiva de un crecimiento org谩nico de ventas de un d铆gito bajo para 2025, se帽alando riesgos derivados de factores macroecon贸micos y los tiempos de aprobaci贸n de la NFPA.
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MSA Safety (NYSE : MSA) a publi茅 ses r茅sultats financiers du deuxi猫me trimestre 2025 avec un chiffre d'affaires net de 474,1 millions de dollars, soit une augmentation GAAP de 3 % mais une croissance organique stable d'une ann茅e sur l'autre. La soci茅t茅 a enregistr茅 un r茅sultat d'exploitation GAAP de 86 millions de dollars (18,1 % des ventes) et un r茅sultat d'exploitation ajust茅 de 101 millions de dollars (21,4 % des ventes).
Les faits marquants incluent l'acquisition de M&C TechGroup pour 188 millions de dollars, 茅largissant la pr茅sence de MSA sur les march茅s de l'analyse des gaz et de la s茅curit茅 des proc茅d茅s. L'entreprise a maintenu les retours aux actionnaires gr芒ce 脿 30 millions de dollars de rachats d'actions et une 55e augmentation annuelle cons茅cutive du dividende. La direction a r茅affirm茅 ses pr茅visions de croissance organique des ventes 脿 un chiffre bas pour 2025, tout en soulignant les risques li茅s aux facteurs macro茅conomiques et au calendrier d'approbation de la NFPA.
MSA Safety (NYSE: MSA) meldete die Finanzergebnisse f眉r das zweite Quartal 2025 mit Nettoums盲tzen von 474,1 Millionen US-Dollar, was einem GAAP-Anstieg von 3 % entspricht, jedoch einem organisch stabilen Wachstum im Jahresvergleich. Das Unternehmen erzielte einen GAAP-Betriebsgewinn von 86 Millionen US-Dollar (18,1 % des Umsatzes) sowie einen bereinigten Betriebsgewinn von 101 Millionen US-Dollar (21,4 % des Umsatzes).
Zu den wichtigsten Highlights geh枚rt die 脺bernahme von M&C TechGroup f眉r 188 Millionen US-Dollar, wodurch MSA seine Pr盲senz in den M盲rkten f眉r Gasanalyse und Prozesssicherheit ausbaut. Das Unternehmen sicherte die Aktion盲rsrenditen durch Aktienr眉ckk盲ufe im Wert von 30 Millionen US-Dollar und eine 55. aufeinanderfolgende j盲hrliche Dividendenerh枚hung. Das Management best盲tigte seine Prognose f眉r ein organisches Umsatzwachstum im niedrigen einstelligen Bereich f眉r 2025, wies jedoch auf Risiken durch makro枚konomische Faktoren und den Zeitplan der NFPA-Zulassung hin.
- Strategic acquisition of M&C TechGroup for $188M to expand detection market presence
- Maintained 55th consecutive annual dividend increase
- Strong detection segment performance with 13% sales growth
- Free cash flow conversion improved to 60% from 54% year-over-year
- $30M in share repurchases completed during Q2
- GAAP operating income declined 14% to $85.9M year-over-year
- Operating margin decreased 350 basis points to 18.1%
- Fire Service segment sales declined 5%
- International segment operating income dropped 46%
- Currency exchange losses of $5.3M compared to $0.6M gain last year
Insights
MSA reports mixed Q2 with flat organic growth, declining margins, strategic acquisition, and maintained guidance despite headwinds.
MSA Safety's Q2 results present a mixed financial picture with topline growth masking underlying challenges. The 3% revenue increase to
Looking at segment performance reveals divergent trends. The Americas segment (
Product mix trends indicate a strategic shift - Detection segment growth of
Capital allocation remains balanced with
Second Quarter 2025 Highlights
- Achieved quarterly net sales of
$474 million 3% GAAP increase and flat organic(a) year-over-year - Generated GAAP operating income of
$86 million 18.1% of sales, and adjusted operating income of$101 million 21.4% of sales - Recorded GAAP net income of
$63 million $1.59 $76 million $1.93 - Acquired M&C TechGroup, a leading manufacturer of gas analysis and process safety technologies, in a transaction valued at
$188 million - Repurchased
$30 million $29 million $21 million
"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."
(a) Definition of organic sales change provided on the bottom of page nine. |
Financial Highlights
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(In millions, except per share data and percentages) | 2025 | 2024 | % Change (a) | 2025 | 2024 | % Change (a) | |||||
Net Sales | $听 474.1 | $听 462.5 | 3听% | $听 895.5 | $听 875.8 | 2听% | |||||
GAAP | |||||||||||
Operating income | 85.9 | 99.9 | (14)听% | 163.6 | 180.1 | (9)听% | |||||
% of Net sales | 18.1听% | 21.6听% | (350) bps | 18.3听% | 20.6听% | (230) bps | |||||
Net income | 62.8 | 72.2 | (13)听% | 122.4 | 130.4 | (6)听% | |||||
Diluted EPS | 1.59 | 1.83 | (13)听% | 3.10 | 3.30 | (6)听% | |||||
Non-GAAP | |||||||||||
Adjusted EBITDA | $听 116.5 | $听 121.9 | (4)听% | $听 218.0 | $听 223.2 | (2)听% | |||||
% of Net sales | 24.6听% | 26.4听% | (180) bps | 24.3听% | 25.5听% | (120) bps | |||||
Adjusted operating income | 101.4 | 108.2 | (6)听% | 188.9 | 196.2 | (4)听% | |||||
% of Net sales | 21.4听% | 23.4听% | (200) bps | 21.1听% | 22.4听% | (130) bps | |||||
Adjusted earnings | 75.9 | 79.7 | (5)听% | 142.4 | 143.2 | (1)听% | |||||
Adjusted diluted EPS | 1.93 | 2.01 | (4)听% | 3.61 | 3.62 | 鈥斕�% | |||||
Free cash flow | 37.9 | 39.0 | (3)听% | 88.9 | 78.6 | 13听% | |||||
Free cash flow conversion | 60听% | 54听% | 73听% | 60听% | |||||||
Americas Segment | |||||||||||
Net sales | $听 320.1 | $听 314.7 | 2听% | $听 613.3 | $听 610.2 | 鈥斕�% | |||||
GAAP operating income | 91.3 | 96.2 | (5)听% | 167.8 | 180.3 | (7)听% | |||||
% of Net sales | 28.5听% | 30.6听% | (210) bps | 27.4听% | 29.6听% | (220) bps | |||||
Adjusted operating income | 93.3 | 98.5 | (5)听% | 172.0 | 184.7 | (7)听% | |||||
% of Net sales | 29.1听% | 31.3听% | (220) bps | 28.0听% | 30.3听% | (230) bps | |||||
International Segment | |||||||||||
Net sales | $听 154.0 | $听 147.8 | 4听% | $听 282.2 | $听 265.5 | 6听% | |||||
GAAP operating income | 12.2 | 22.8 | (46)听% | 29.5 | 33.9 | (13)听% | |||||
% of Net sales | 8.0听% | 15.4听% | (740) bps | 10.5听% | 12.8听% | (230) bps | |||||
Adjusted operating income | 20.2 | 24.3 | (17)听% | 38.9 | 37.8 | 3听% | |||||
% of Net sales | 13.1听% | 16.4听% | (330) bps | 13.8听% | 14.2听% | (40) bps | |||||
(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
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 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 shortly after the conclusion of the presentation and will be available for the next 90 days.
听
MSA Safety Incorporated Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) | |||||||
Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net sales | $听听 474,116 | $听听 462,463 | $听 895,456 | ||||
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 | $听听听听 62,773 | $听听听听 72,234 | $听 122,378 | ||||
Earnings per share attributable to common shareholders: | |||||||
Basic | $听听听听听听听听 1.60 | $听听听听听听听听 1.83 | $听听听听听听听 3.11 | $听听听听听听 3.31 | |||
Diluted | $听听听听听听听听 1.59 | $听听听听听听听听 1.83 | $听听听听听听听 3.10 | $听听听听听听 3.30 | |||
Basic shares outstanding | 39,258 | 39,389 | 39,296 | 39,375 | |||
Diluted shares outstanding | 39,359 | 39,541 | 39,430 | 39,549 | |||
听
MSA Safety Incorporated Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | |||
June 30, 2025 | December 31, 2024 | ||
Assets | |||
Cash and cash equivalents | $听听听听听听听听听听听听听听听听听听听听听 146,988 | $听听听听听听听听听听听听听听听听听听听听听听听听听 164,560 | |
Trade receivables, net | 333,754 | 279,213 | |
Inventories | 343,883 | 296,796 | |
Other current assets | 62,836 | 62,461 | |
听听听 Total current assets | 887,461 | 803,030 | |
Property, plant and equipment, net | 279,419 | 211,865 | |
Prepaid pension cost | 234,355 | 224,638 | |
Goodwill | 733,245 | 620,895 | |
Intangible assets, net | 310,934 | 246,437 | |
Other noncurrent assets | 104,797 | 98,919 | |
听听 Total assets | $听听听听听听听听听听听听听听听听听听 2,550,211 | $听听听听听听听听听听听听听听听听听听听听听听 2,205,784 | |
Liabilities and shareholders' equity | |||
Notes payable and current portion of long-term debt, net | $听听听听听听听听听听听听听听听听听听听听听听听听听 8,383 | $听听听听听听听听听听听听听听听听听听听听听听听听听听听 26,391 | |
Accounts payable | 126,421 | 108,163 | |
Other current liabilities | 150,660 | 153,539 | |
听听 Total current liabilities | 285,464 | 288,093 | |
Long-term debt, net | 670,965 | 481,622 | |
Pensions and other employee benefits | 152,344 | 134,251 | |
Deferred tax liabilities | 132,696 | 107,691 | |
Other noncurrent liabilities | 56,100 | 50,808 | |
Total shareholders' equity | 1,252,642 | 1,143,319 | |
听听 Total liabilities and shareholders' equity | $听听听听听听听听听听听听听听听听听听 2,550,211 | $听听听听听听听听听听听听听听听听听听听听听听 2,205,784 | |
听
MSA Safety Incorporated Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net income | $听听听听 62,773 | $听听听听 72,234 | $听 130,373 | ||||
Depreciation and amortization | 18,099 | 16,047 | 34,350 | 31,605 | |||
Change in working capital and other operating | (13,654) | (34,979) | (27,677) | (57,790) | |||
Cash flow from operating activities | 67,218 | 53,302 | 129,051 | 104,188 | |||
Capital expenditures | (29,334) | (14,341) | (40,118) | (25,560) | |||
Acquisitions, net of cash acquired | (187,774) | 鈥� | (187,774) | 鈥� | |||
Property disposals and other investing | 1 | 74 | 19 | 74 | |||
Cash flow used in investing activities | (217,107) | (14,267) | (227,873) | (25,486) | |||
Change in debt | 172,686 | (8,250) | 165,220 | (13,260) | |||
Cash dividends paid | (20,848) | (20,099) | (40,881) | (38,589) | |||
Company stock purchases under repurchase program | (29,998) | (10,000) | (39,994) | (10,000) | |||
Other financing | (2,249) | (284) | (10,366) | (5,869) | |||
Cash flow from (used in) financing activities | 119,591 | (38,633) | 73,979 | (67,718) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 6,949 | (1,881) | 7,692 | (10,557) | |||
(Decrease)/Increase in cash, cash equivalents and restricted cash | $听听 (23,349) | $听听听听 (1,479) | $听听听听听听听听 427 | ||||
听
MSA Safety Incorporated Sales by Product Group (Unaudited) (In thousands, except percentages) | ||||||||||||
Three Months Ended June 30, 2025 | Consolidated | International | ||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||
Detection(a) | 41听% | 40听% | $听听 66,661 | 43听% | ||||||||
Fire Service(b) | 163,306 | 34听% | 110,815 | 35听% | 52,491 | 34听% | ||||||
Industrial PPE and Other(c) | 116,975 | 25听% | 82,150 | 25听% | 34,825 | 23听% | ||||||
Total | 100听% | 100听% | 100听% | |||||||||
Three Months Ended June 30, 2024 | Consolidated | International | ||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||
Detection(a) | 37听% | 35听% | $听听 59,443 | 40听% | ||||||||
Fire Service(b) | 172,269 | 37听% | 118,487 | 38听% | 53,782 | 37听% | ||||||
Industrial PPE and Other(c) | 119,346 | 26听% | 84,819 | 27听% | 34,527 | 23听% | ||||||
Total | 100听% | 100听% | 100听% | |||||||||
Six Months Ended June 30, 2025 | Consolidated | International | ||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||
Detection(a) | 40听% | 39听% | 42听% | |||||||||
Fire Service(b) | 313,922 | 35听% | 216,722 | 35听% | 97,200 | 34听% | ||||||
Industrial PPE and Other(c) | 226,628 | 25听% | 159,512 | 26听% | 67,116 | 24听% | ||||||
Total | 100听% | 100听% | 100听% | |||||||||
Six Months Ended June 30, 2024 | Consolidated | International | ||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||
Detection(a) | 310,064 | 35听% | 207,700 | 34听% | 102,364 | 38听% | ||||||
Fire Service(b) | 335,962 | 39听% | 240,738 | 39听% | 95,224 | 36听% | ||||||
Industrial PPE and Other(c) | 229,739 | 26听% | 161,811 | 27听% | 67,928 | 26听% | ||||||
Total | 100听% | 100听% | 100听% | |||||||||
(a) Detection includes Fixed Gas and Flame Detection and Portable Gas detection.听 Detection includes sales from M&C TechGroup Germany GmbH and its affiliated companies ("M&C"), acquired by the Company, from May 6th, 2025, onward ( (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. |
听
MSA Safety Incorporated Reconciliation of Non-GAAP Financial Measures Organic sales change (Unaudited) | |||||
Consolidated | |||||
Three Months Ended June 30, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
听 听 听 听GAAP reported sales change | 13听% | (5)听% | (2)听% | 3听% | |
听 听 听 听Currency translation effects | 鈥斕�% | (1)听% | 1听% | (1)听% | |
听 听 听 听Less: Acquisitions | (7)听% | 鈥斕�% | 鈥斕�% | (2)听% | |
听 听 听 听Organic sales change | 6听% | (6)听% | (1)听% | 鈥斕�% | |
Six Months Ended June 30, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
听 听 听 听GAAP reported sales change | 14听% | (7)听% | (1)听% | 2听% | |
听 听 听 听Plus: Currency translation effects | 1听% | 鈥斕�% | 2听% | 1听% | |
听 听 听 听Less: Acquisitions | (4)听% | 鈥斕�% | 鈥斕�% | (1)听% | |
听 听 听 听Organic sales change | 11听% | (7)听% | 1听% | 2听% | |
Americas Segment | |||||
Three Months Ended June 30, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
听 听 听 听GAAP reported sales change | 14听% | (6)听% | (3)听% | 2听% | |
听 听 听 听Plus: Currency translation effects | 1听% | 鈥斕�% | 2听% | 1听% | |
听 听 听 听Less: Acquisitions | (3)听% | 鈥斕�% | 鈥斕�% | (1)听% | |
听 听 听 听Organic sales change | 12听% | (6)听% | (1)听% | 2听% | |
Six Months Ended June 30, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
听 听 听 听GAAP reported sales change | 14听% | (10)听% | (1)听% | 1听% | |
听 听 听 听Plus: Currency translation effects | 1听% | 鈥斕�% | 3听% | 1听% | |
听 听 听 听Less: Acquisitions | (1)听% | 鈥斕�% | 鈥斕�% | (1)听% | |
听 听 听 听Organic sales change | 14听% | (10)听% | 2听% | 1听% | |
International Segment | |||||
Three Months Ended June 30, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
听 听 听 听GAAP reported sales change | 12听% | (2)听% | 1听% | 4听% | |
听 听 听 听Plus: Currency translation effects | (4)听% | (4)听% | (3)听% | (3)听% | |
听 听 听 听Less: Acquisitions | (11)听% | 鈥斕�% | 鈥斕�% | (5)听% | |
听 听 听 听Organic sales change | (3)听% | (6)听% | (2)听% | (4)听% | |
Six Months Ended June 30, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
听 听 听 听GAAP reported sales change | 15听% | 2听% | (1)听% | 6听% | |
听 听 听 听Plus: Currency translation effects | (1)听% | (1)听% | (1)听% | (1)听% | |
听 听 听 听Less: Acquisitions | (7)听% | 鈥斕�% | 鈥斕�% | (2)听% | |
听 听 听 听Organic sales change | 7听% | 1听% | (2)听% | 3听% | |
(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 ( |
听(b)听Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel. |
听(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 | Six months ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Adjusted EBITDA | $听 116,513 | $听 121,931 | $听 217,979 | $听 223,185 | |||
Less: | |||||||
听听听听 Depreciation and amortization | 15,079 | 13,741 | 29,043 | 26,985 | |||
Adjusted operating income | 101,434 | 108,190 | 188,936 | 196,200 | |||
Less: | |||||||
听听听听 Restructuring charges | 488 | 1,543 | 2,412 | 4,560 | |||
听听听听 Currency exchange losses (gains), net | 5,286 | (603) | 9,363 | 1,730 | |||
听听听听 Acquisition-related amortization | 3,153 | 2,306 | 5,439 | 4,620 | |||
听听听听 Net cost for product related legal matter | 鈥� | 5,000 | 鈥� | 5,000 | |||
听听听听 Transaction costs (a) | 6,645 | 鈥� | 8,099 | 234 | |||
GAAP operating income | 85,862 | 99,944 | 163,623 | 180,056 | |||
Less: | |||||||
听听听听 Interest expense | 8,116 | 9,664 | 14,951 | 20,403 | |||
听听听听 Other income, net | (5,000) | (4,148) | (12,022) | (10,382) | |||
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 | $听听听 62,773 | $听听听 72,234 | $听 122,378 | $听 130,373 | |||
(a) 听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听 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 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 | Six Months Ended | ||||||||||
2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||
Net income | $听听听听 62,773 | $听听听听 72,234 | (13)听% | $听 122,378 | $听 130,373 | (6)听% | |||||
Currency exchange losses (gains), net | 5,286 | (603) | 9,363 | 1,730 | |||||||
Restructuring charges | 488 | 1,543 | 2,412 | 4,560 | |||||||
Transaction costs (a) | 6,645 | 鈥� | 8,099 | 234 | |||||||
Acquisition-related amortization | 3,153 | 2,306 | 5,439 | 4,620 | |||||||
Asset related losses | 884 | 701 | 892 | 752 | |||||||
Pension settlement | 721 | 1,308 | 721 | 1,308 | |||||||
Net cost for product related legal matter | 鈥� | 5,000 | 鈥� | 5,000 | |||||||
Income tax expense on adjustments | (4,021) | (2,827) | (6,937) | (5,417) | |||||||
Adjusted earnings | $听听听听 75,929 | $听听听听 79,662 | (5)听% | $听 142,367 | $听 143,160 | (1)听% | |||||
Adjusted diluted earnings per share | $听听听听听听听听 1.93 | $听听听听听听听听 2.01 | (4)听% | $听听听听 3.61 | $听听听听听 3.62 | 0听% | |||||
Diluted shares outstanding | 39,359 | 39,541 | 39,430 | 39,549 | |||||||
(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 | ||
Operating income | $听听听听听听听听听听听听听听听听听听听听听听听听 372,744 | |
Depreciation and amortization | 57,217 | |
Restructuring charges | 4,249 | |
Currency exchange losses, net | 11,271 | |
Acquisition-related amortization | 9,994 | |
Transaction costs (a) | 8,751 | |
Adjusted EBITDA | $听听听听听听听听听听听听听听听听听听听听听听听听 464,226 | |
Total end-of-period debt | 679,348 | |
Debt to adjusted EBITDA | 1.5 | |
Total end-of-period debt | $听听听听听听听听听听听听听听听听听听听听听听听听 679,348 | |
Total end-of-period cash and cash equivalents | 146,988 | |
Net debt | $听听听听听听听听听听听听听听听听听听听听听听听听 532,360 | |
Net debt to adjusted EBITDA | 1.1 | |
(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:听听
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听
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 , as well as on its own investor relations website at . 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
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