MSA Safety (MSA) investor relations material

Executive summary

• Q3 net sales were $536.4M, up 15% reported and 6% organically; adjusted diluted EPS rose 8% to $2.09.

• Double-digit organic order growth and book-to-bill above one reflected broad demand; Autronica contributed 8% to sales growth and expands Detection to 45% of TTM sales.

• Completed the $563.1M net-of-cash Autronica acquisition; launched G1 City Edition SCBA and booked the largest MSA+ order to date for ALTAIR io 6.

Financial highlights

• Adjusted operating income rose 11% to $114.9M; adjusted operating margin was 21.4%, down 70 bps, primarily reflecting Autronica dilution.

• Adjusted gross margin was 46.5%, down from 47.2%; price and productivity added 50 bps, offsetting inflation and unfavorable mix.

• GAAP operating income fell 6% to $88.2M and GAAP net income fell 16% to $58.4M; adjusted earnings increased 6% to $80.6M.

• Q3 R&D investment was $20M, up 20 bps as a share of sales; adjusted SG&A increased with Autronica, variable compensation, commercial investment and inflation.

Outlook and guidance

• FY2026 low-double-digit reported revenue growth outlook maintained, comprising mid-single-digit organic growth, mid-single-digit acquisition contribution and 1%–2% favorable FX translation.

• Adjusted gross margin guidance remains 47.5%–48.5%, excluding acquisition-related amortization; below-the-line assumptions are unchanged.

• Q4 growth expected to be led by Fire Service and PPE; Detection faces Middle East conflict effects and a strong prior-year comparison.

• Long-term targets include 30–50 bps annual adjusted operating margin expansion, 30%–40% incremental margins and adjusted ROIC above 20%; Autronica is expected to be EPS-accretive in its first full year.

• 2028 targets: $2.1B–$2.3B revenue, 3%–5% organic growth, 23.5%–25.0% adjusted operating margin, $10–$11 adjusted EPS and $1.5B+ capital deployment optionality.