MSA Safety (MSA) investor relations material

Executive summary

• Q2 2025 net sales reached $474M, up 3% year-over-year, with flat organic growth and adjusted EPS of $1.93, down 4% year-over-year; GAAP net income was $63M or $1.59 per diluted share.

• Detection and fall protection segments led growth, while fire service and industrial PPE declined; backlog normalized but declined more than expected.

• Completed $188M acquisition of M&C Tech Group, expanding detection capabilities and contributing $10.8M–$11M in Q2 sales; expected to add $0.10 to adjusted EPS for the year.

• Returned capital to shareholders via $30M in Q2 share repurchases and increased annual dividend for the 55th consecutive year.

• Published 2024 Impact Report, reaffirming protection of 40+ million workers and progress on sustainability goals.

Financial highlights

• Gross margin was 46.6%, down from 48.2% year-over-year, mainly due to FX, inflation, and tariffs; adjusted operating margin was 21.4%, down 200 bps.

• Adjusted EBITDA margin was 24.6% for Q2; free cash flow was $38M (60% conversion rate), with operating cash flow up over 25% year-over-year.

• Net debt rose to $532M due to the M&C acquisition, with net leverage at 1.1x; cash balance at quarter-end was $147M.

• Q2 2025 net income was $62.8M; diluted EPS was $1.59.

• Six-month net sales were $895.5M (+2.2% year-over-year); six-month net income was $122.4M.

Outlook and guidance

• Maintains low single-digit full-year organic sales growth outlook, with M&C expected to add ~2 points to revenue growth and $0.10 to adjusted EPS.

• FX and tariff pressures expected to continue impacting gross margin in the second half; mitigating pricing actions underway.

• Interest expense for the year expected to be $29M–$32M; tax rate expected at 24–25%.

• Ongoing macroeconomic, tariff, and regulatory approval timing uncertainties present risks to growth.