MSA Safety (MSA) investor relations material

Executive summary

• Q3 2025 net sales grew 8–8.3% year-over-year to $468–$468.4 million, with 3% organic growth and strong performance in detection and industrial PPE, while fire service faced headwinds from delayed AFG funding and NFPA standard changes.

• Adjusted EPS reached $1.94, up 6% year-over-year; GAAP net income was $69.6–$70 million ($1.77 per diluted share).

• M&C TechGroup acquisition contributed $15–$15.3 million in Q3 sales and supported international growth; integration is progressing well.

• Free cash flow was $100 million for the quarter (144% conversion), supporting $50 million in debt repayment and reducing net leverage to 1.0x.

• New product launches in detection and industrial PPE, including Altair IO6 and V-Gard H2, support long-term growth in connected safety solutions.

Financial highlights

• Q3 sales were $468–$468.4 million, up 8–8.3% reported and 3% organic; M&C added 4% to growth, FX was a 0–1% tailwind.

• GAAP gross margin was 46.5%, down 140 bps year-over-year due to inflation, tariffs, and M&C-related amortization.

• Adjusted operating margin was 22.1%, down 50 bps year-over-year but up 70 bps sequentially; adjusted EBITDA margin was 25.4%.

• Free cash flow was $100 million in Q3 (144% conversion); year-to-date free cash flow was $189 million (99% conversion).

• SG&A expenses rose 8.1% to $102.9 million, including $5.4 million from M&C and $1.9 million in transaction costs.

Outlook and guidance

• Maintains low single-digit full-year organic growth outlook; M&C expected to add ~2 points to revenue growth, FX to add ~1%.

• Q4 sales expected to be impacted by delayed AFG funding and the U.S. government shutdown, with some sales shifting to 2026.

• Shutdown anticipated to reduce full-year organic growth by about 1%, mainly in fire service.

• Interest expense projected at $29–$32 million; tax rate 24–25%.

• Continued momentum expected in fall protection and detection segments.