MSA Safety (MSA) Jefferies Global Industrials Conference 2026 summary

Strategic Overview and Vision

• Focused on protecting over 40 million workers globally, with a mission-driven approach and commitment to innovation, integrity, and customer service.

• Business system emphasizes agility, empowerment, collaboration, and continuous improvement.

• Aims to be the leading provider of safety solutions, leveraging a diverse and resilient market presence.

Financial Performance and Outlook

• Achieved $2.1 billion in pro forma/net sales and a $7.2 billion market cap as of September 2026, with 47.6% gross margin and 23.0% adjusted operating margin.

• 2Q 2026 net sales reached $503 million (+6% YoY), adjusted operating income $121 million (+19%), and free cash flow $83 million (+118%).

• 113% free cash flow conversion and 1.8x net leverage, pro forma for recent acquisition.

• Margin improvement expected for the full year, with gross margins projected around 48% despite temporary Q3–Q4 input cost pressures.

• Capital deployment optionality projected at $1.5 billion+ through 2028, supporting acquisitions, share buybacks, and dividends.

Growth Strategy and Targets

• Accelerate strategy targets premium safety solutions, operational excellence, and effective capital deployment.

• 2028 targets include $2.1–$2.3 billion organic revenue, 23.5%–25.0% operating margin, and $10.00–$11.00 EPS.

• Growth strategy aims for low double-digit overall growth, with mid-single-digit organic and acquisition contributions, and positive FX tailwinds.

• New growth targets expected to be announced mid-next year, reflecting ongoing momentum and market opportunities.