MSA Safety (MSA) 46th Annual William Blair Growth Stock Conference summary

Mission, Vision, and Company Evolution

• Focused on safety technology, evolving from equipment manufacturing to technology-driven solutions since 1914, with a mission-driven culture emphasizing safety, integrity, and stakeholder value.

• Protects over 40 million workers globally as of December 2024, emphasizing innovation and customer-driven product development.

• Invests over 4.6% of sales in R&D, with five global R&D centers, supporting higher price points and margins.

• Operates with two main segments: Americas (67% of sales) and International, with three product categories: detection (41–45%), fire service (34%), and industrial PPE (25%).

• Holds leading positions in resilient global markets, leveraging a strong distribution network and the MSA Business System for continuous improvement.

Financial Performance and Targets

• Reported $1.9 billion in revenues for 2025/TTM March 2026, with gross margins of 46.8% and adjusted operating margins of 22.3%.

• Achieved 6–6.6% CAGR in sales and 10% CAGR in adjusted operating income from 2016 to 2025, with adjusted ROIC up 725 basis points to 20.2%.

• Maintains a strong balance sheet with low leverage (net leverage at 0.9x) and $1.5 billion in liquidity.

• Reconfirmed 2028 targets: $2.1–$2.3 billion in organic sales, operating margins of 23.5–25%, and $10.00–$11.00 EPS.

• Q1 2026 net sales reached $464M (+10% YoY), adjusted operating income $101M (+16%), adjusted EPS $1.99 (+18%), and free cash flow $65M (+28% YoY).

Strategic Initiatives and Growth Strategy

• Accelerate strategy focuses on premium safety solutions, connected worker technology, and redesigned product lines.

• Capital deployment prioritizes growth, innovation, disciplined M&A, and maintaining net leverage within 1.5x–2.5x.

• MSA Business System drives continuous improvement and tracks hundreds of margin-improving projects.

• Invests 4.3–4.6% of net sales in R&D, supporting customer-centric innovation.

• Announced largest-ever $500 million share repurchase program and 56th consecutive annual dividend increase.