Core Viewpoint - MSA Safety Incorporated will host its second quarter 2025 earnings conference call on August 5, 2025, at 10:00 a.m. Eastern Time, with a press release detailing financial results to be issued on August 4, 2025, after market close [1][3]. Company Overview - MSA Safety Incorporated is a global leader in advanced safety products and solutions, with a mission focused on safety innovation since 1914 [4]. - The company reported revenues of $1.8 billion in 2024 and employs over 5,000 associates across more than 40 international locations [4].

MSA Safety (MSA) FY Conference Summary Company Overview - MSA Safety is a global manufacturer of safety products aimed at protecting workers and facility infrastructure [1][2] - The company reported $1.8 billion in sales over the trailing twelve months, with a 4.5% investment in R&D, resulting in a 37% product vitality ratio [5][4] Business Segments - MSA operates in two primary segments: - Americas (69% of revenue) - International (31% of revenue) [6] - Key product categories include: - Fire service (38% of revenue) - Detection (37% of revenue) - Industrial PPE (25% of revenue) [6] Market Position and Strategy - MSA aims to maintain leadership in premium safety solutions through continuous R&D and innovation [12][13] - The company has launched an "Accelerate Strategy" focusing on four pillars: 1. Leadership in premium safety solutions 2. Accelerators for growth, particularly in detection and M&A 3. Continuous improvement for margin enhancement 4. Effective capital deployment [12][14][15] Financial Outlook - MSA anticipates low single-digit revenue growth for 2025, with detection expected to grow at high single digits [28][29] - The company has faced challenges in the fire service segment due to tough comparisons and regulatory changes [29][30] Regulatory Environment - The NFPA standards are undergoing changes, which may impact purchasing decisions in the fire service market [30][35] - MSA has launched a new SCBA model, the G1 XR, to address customer needs ahead of regulatory changes [36] Customer Engagement and Product Development - MSA emphasizes customer feedback in product development, leading to innovations like the Altair XL sensor family and the MSA Plus connected solutions [19][20][50] - The company has shared success stories where their products have directly contributed to safety improvements [54] Recent Acquisition - MSA acquired M&C Tech, a German process analysis manufacturer, expanding its addressable market by $500 million and enhancing its fixed monitoring capabilities [60][62] Conclusion - MSA Safety is well-positioned in the industrial safety technology market, focusing on innovation, customer needs, and strategic growth through acquisitions and product development [27][62]

Core Insights - MSA Safety Incorporated is a global leader in advanced safety products and solutions, with a mission focused on protecting people and facility infrastructures [3] - The company reported revenues of $1.8 billion for the year 2024, indicating strong financial performance [3] Upcoming Investor Conferences - MSA Safety will participate in several investor conferences, including: - 25th Annual B. Riley Securities Investor Conference on May 22, 2025, featuring 1x1 investor meetings with Elyse Brody, Interim Chief Financial Officer [2] - 45th Annual William Blair Growth Stock Conference on June 3, 2025, with a presentation by Steve Blanco, President and CEO, at 9:00 a.m. ET [2] - Stifel 2025 Cross Sector Insight Conference on June 4, 2025, also featuring 1x1 investor meetings with Steve Blanco and Elyse Brody [2] - Baird 2025 Global Consumer, Technology & Services Conference on June 5, 2025, with Gustavo Lopez, Vice President, Product Strategy and Development participating in 1x1 meetings [2] - Audio webcasts of the sessions will be available for 90 days on the MSA Safety Investor Relations website [2]

Core Insights - Theravance Biopharma presented analyses of its Phase 3 program for ampreloxetine, targeting symptomatic neurogenic orthostatic hypotension (nOH) at the International MSA Congress in Boston [1][2] Company Overview - Theravance Biopharma focuses on developing innovative therapies, including ampreloxetine, a selective norepinephrine reuptake inhibitor for treating nOH in patients with multiple system atrophy (MSA) [6][13] - The company has received Orphan Drug Designation for ampreloxetine in the U.S. and plans to file a New Drug Application (NDA) if ongoing studies yield positive results [6] Clinical Study Findings - A subgroup analysis from the REDWOOD 0170 study indicated that MSA patients had the highest nOH symptom burden, emphasizing the need for improved therapies [2] - Results from the studies support the ongoing registrational study (CYPRESS) evaluating ampreloxetine's efficacy in MSA patients [3] - Patients with MSA showed clinically meaningful improvement in nOH symptoms after 16 weeks of treatment with ampreloxetine, with stable symptoms in the treatment group compared to worsening in the placebo group [7][10] Study Details - The CYPRESS study is a Phase 3, multi-center, randomized withdrawal trial assessing ampreloxetine's efficacy after 20 weeks of treatment, with primary endpoints focused on changes in the Orthostatic Hypotension Symptom Assessment (OHSA) composite score [9] - The REDWOOD 0170 study included a 16-week open-label period followed by a 6-week double-blind, placebo-controlled withdrawal period, with a primary endpoint of treatment failure defined by specific worsening scores [10] Patient Impact - MSA patients experience severe symptoms affecting their quality of life due to nOH, with 70-90% of MSA patients experiencing these symptoms [11] - The clinical profile of ampreloxetine demonstrated target engagement and sustained blood pressure effects, indicating its potential as a first-in-class therapy for MSA-related nOH [6][7]

Acquisition expands MSA's Detection solutions and adds new capabilities in the gas analysis and process safety markets With annual revenue of approximately $55 million, M&C TechGroup is highly complementary to MSA's technology, customer base and distribution network Transaction expected to be accretive to MSA's adjusted earnings in 2025PITTSBURGH, May 7, 2025 /PRNewswire/ --Global safety equipment and solutions provider MSA Safety Incorporated (NYSE: MSA) today announced it has acquired M&C TechGroup in a ...

Financial Performance - Net sales for Q1 2025 were $421,340,000, a 1.3% increase from $413,302,000 in Q1 2024[7] - Gross profit for Q1 2025 was $193,395,000, down 0.6% from $195,531,000 in Q1 2024[7] - Operating income decreased to $77,761,000 in Q1 2025 from $80,112,000 in Q1 2024, reflecting a decline of 2.9%[7] - Net income for Q1 2025 was $59,605,000, compared to $58,139,000 in Q1 2024, representing a 2.5% increase[7] - Earnings per share attributable to common shareholders increased to $1.51 in Q1 2025 from $1.48 in Q1 2024[7] - Comprehensive income for Q1 2025 was $82,343,000, significantly higher than $47,840,000 in Q1 2024, indicating a substantial increase[11] - Adjusted operating income for Q1 2025 was $87,502 thousand, slightly down from $88,009 thousand in Q1 2024, reflecting a decrease of 0.6%[53] - Basic earnings per share for Q1 2025 were $1.51, an increase from $1.48 in Q1 2024[55] - The Fire Service product group generated $150,616 thousand in sales, accounting for 36% of total consolidated sales in Q1 2025[53] - The Americas segment generated net sales of $293.16 million, while the International segment contributed $128.18 million for Q1 2025[52] Assets and Liabilities - Total assets as of March 31, 2025, were $2,235,885,000, up from $2,205,784,000 at the end of 2024[13] - Total liabilities decreased to $1,045,740,000 as of March 31, 2025, from $1,062,465,000 at the end of 2024[13] - Total assets as of March 31, 2025, amounted to $2,235,885 thousand, compared to $2,174,330 thousand at the end of Q1 2024, indicating a growth of 2.8%[52] - The company’s total liabilities decreased to $1.05 billion as of March 31, 2025, from $1.06 billion at the end of 2024, a reduction of 1.2%[14] - As of March 31, 2025, the company's total long-term debt was $502.1 million, a decrease from $508.0 million as of December 31, 2024[66] Cash Flow and Dividends - Cash flow from operating activities for Q1 2025 was $61,833,000, compared to $50,886,000 in Q1 2024, showing a 21.5% increase[16] - The company paid dividends of $0.51 per common share in Q1 2025, up from $0.47 per share in Q1 2024[7] - Common dividends declared were $20,023,000 for the quarter ended March 31, 2025, compared to $18,480,000 for the same period in 2024, representing an increase of 8.4%[19] Inventory and Capital Expenditures - Total inventories increased to $306.675 million as of March 31, 2025, up from $296.796 million at December 31, 2024, reflecting a growth in finished products and raw materials[41] - Capital expenditures for Q1 2025 totaled $10,784 thousand, compared to $11,219 thousand in Q1 2024, representing a decrease of 3.9%[52] Restructuring and Charges - The company recorded restructuring charges of $1.9 million for the three months ended March 31, 2025, compared to $3.0 million for the same period in 2024, indicating a reduction in restructuring efforts[38][39] - The company’s total restructuring reserves decreased to $4.4 million as of March 31, 2025, from $9.8 million at December 31, 2023[40] Tax and Compliance - The effective tax rate for Q1 2025 was 23.5%, up from 23.1% in Q1 2024, primarily due to state income taxes[56] - As of March 31, 2025, the Company was in full compliance with the restrictive covenants under its various credit agreements[74] Foreign Currency and Derivatives - The notional amount of open foreign currency forward contracts was $150.7 million as of March 31, 2025, down from $184.0 million at December 31, 2024[79] - The company reported currency exchange losses of $2.6 million for the three months ended March 31, 2025, compared to gains of $1.8 million in the same period of 2024[81] Product Liability and Legal Matters - The company faces ongoing product liability claims related to PFAS substances, with 731 lawsuits involving 9,274 claims as of April 22, 2025[90] - The company established reserves for single incident product liability claims based on historical experience and expected settlement costs[85] - The company expects to continue pursuing insurance coverage and indemnification related to ongoing litigation[90]

Financial Data and Key Metrics Changes - First quarter sales were $421 million, an increase of 2% on a reported basis and 4% organically compared to the prior year [15][16] - Gross margin in the first quarter was 45.9%, down 140 basis points year over year, impacted by foreign exchange headwinds and inflation [16] - GAAP net income totaled $60 million or $1.51 per share, with adjusted diluted earnings per share at $1.68, up 4% from last year [17] Business Line Data and Key Metrics Changes - Sales in the Fire Service category were down high single digits year over year, primarily due to challenging comparisons in the Americas segment [7] - Detection sales experienced mid-teens growth, supported by expansion in fixed and portable gas detection categories [9] - Industrial PPE sales were up 3% organically, with growth in head and fall protection offset by contraction in other PPE [9][18] Market Data and Key Metrics Changes - The Americas segment saw a 1% decrease in sales year over year on a reported basis, but a 1% increase on an organic basis [18] - The International segment reported a 9% increase in sales year over year on a reported basis or 11% organically, with double-digit organic growth in Detection [18][19] - Currency translation posed a 2% headwind to overall growth, primarily affecting the Brazilian real, Mexican peso, and euro [15][16] Company Strategy and Development Direction - The company remains focused on advancing its Accelerate strategy and delivering long-term profitable growth aligned with its 2028 financial targets [10][21] - MSA Safety is committed to innovation in product categories, particularly in detection and fire service, to maintain market leadership [10][11] - The company is evaluating its supply chain and pricing strategies in response to evolving tariff situations, with about 15% of its cost of sales now subject to tariffs [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic conditions have become more uncertain, the business remains healthy with stable order trends [21][22] - The company anticipates continued FX pressure on gross margins, particularly from Latin American currencies, into the second quarter [16] - Despite challenges, management expressed confidence in achieving long-term growth targets and maintaining a strong commercial pipeline [72] Other Important Information - Free cash flow for the quarter was $51 million, representing a conversion rate of 86% [19] - The company returned value to shareholders through $20 million in dividends and $10 million in share repurchases [20] - MSA Safety amended and increased its revolving credit facility to $1.3 billion, ensuring ample liquidity for future growth initiatives [14][20] Q&A Session Summary Question: Changes in project decision-making due to tariffs - Management indicated that there was strong project work in the first quarter, particularly in energy and petrochemical sectors, with some customers accelerating shipments [28][29] Question: Local currency gross margin impact - Management confirmed that the biggest impact on gross margins was from foreign exchange, primarily from Latin American currencies, and this pressure is expected to continue [32][34] Question: Fixed versus portable growth in detection - Management reported double-digit incoming orders for both fixed and portable detection, with strong performance across the energy segments globally [41][42] Question: Impact of backlog and tariffs on second quarter - Management noted a $40 million backlog headwind in the second quarter and indicated that tariff impacts would be more pronounced in the second half of the year [45][47] Question: Long-term margin gains from cost reduction actions - Management stated that cost reduction actions are viewed as long-term strategic initiatives, and they expect to retain gains even if tariffs are resolved favorably [68][70] Question: Ability to reach 2028 targets amid current environment - Management expressed confidence in achieving 2028 targets, citing strong macro trends and a diverse portfolio, despite potential short-term challenges [72]

Financial Data and Key Metrics Changes - First quarter sales were $421 million, an increase of 2% on a reported basis and 4% organically compared to the prior year [16] - Gross margin in the first quarter was 45.9%, down 140 basis points year over year, impacted by transactional foreign exchange headwinds and inflation [17] - GAAP net income totaled $60 million or $1.51 per share, with adjusted diluted earnings per share at $1.68, up 4% from last year [18] Business Line Data and Key Metrics Changes - Sales in the Fire Service category were down high single digits year over year, primarily due to challenging comparisons in the Americas segment [7] - Detection sales grew mid-teens, supported by expansion in fixed and portable gas detection categories [9] - Industrial PPE sales increased by 3% organically, with growth in head and fall protection offset by contraction in other PPE [9] Market Data and Key Metrics Changes - The Americas segment saw a 1% decrease in sales year over year on a reported basis, but a 1% increase on an organic basis [19] - The International segment experienced a 9% increase in sales year over year on a reported basis or 11% organically [20] - Currency translation posed a 2% headwind in the quarter, primarily affecting the Brazilian real, Mexican peso, and euro [16] Company Strategy and Development Direction - The company remains focused on advancing its Accelerate strategy and delivering long-term profitable growth aligned with its 2028 financial targets [11] - MSA Safety is committed to innovation in product categories, particularly in detection and fire service, to maintain market leadership [12] - The company is evaluating its supply chain and pricing strategies in response to evolving tariff situations [14][58] Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic conditions have become more uncertain, demand remains resilient across product categories [6][22] - The company expects continued pressure on gross margins due to foreign exchange rates, particularly in Latin America [17] - Despite challenges, management is optimistic about achieving its 2028 targets, citing strong underlying market trends and a diverse product portfolio [68] Other Important Information - Free cash flow for the quarter was $51 million, representing a conversion rate of 86% [20] - The company returned value to shareholders through $20 million in dividends and $10 million in share repurchases [21] - MSA Safety amended and increased its revolving credit facility to $1.3 billion, ensuring ample liquidity for future growth initiatives [21] Q&A Session Summary Question: How has project decision-making changed during the quarter due to tariffs? - Management indicated that there was strong project work in the first quarter, particularly in energy and petrochemical sectors, with some customers accelerating shipments [28][29] Question: Can you provide details on local currency gross margin and the impact of transactional headwinds? - The biggest impact on gross margins was from foreign exchange, primarily on Latin American currencies, which is expected to continue into the second quarter [32][34] Question: What is the growth outlook for the detection business, particularly fixed versus portable? - Both fixed and portable detection categories saw strong incoming orders, with double-digit growth overall, and management expects continued strength in 2025 [40][43] Question: How will the pull forward of orders in Q1 impact Q2 and the rest of the year? - The pull forward in Q1 was just under $10 million, primarily in the Americas, and management anticipates challenges in Q2 due to tough comparisons [48][56] Question: What are the mitigation efforts regarding potential tariff impacts on the supply chain? - Management is focusing on pricing and cost management strategies to mitigate tariff impacts, with a targeted price increase implemented in April [58][60] Question: Will cost reduction actions lead to long-term margin gains if tariffs are resolved? - Management indicated that cost reduction initiatives are viewed as long-term strategic actions, and they expect to retain some of the gains regardless of tariff changes [64][66] Question: Does the current environment affect the ability to reach 2028 targets? - Management remains committed to the 2028 targets, citing strong macro trends and a diverse portfolio, despite potential challenges from tariffs [68][70]

Financial Performance - Net sales reached $421 million, a 2% increase compared to the previous year[8,9] - Adjusted operating income was $88 million, a 1% decrease year-over-year[8] - Adjusted operating margin was 208%, a decrease of 50 basis points[8] - Adjusted EPS increased by 4% year-over-year to $168[8,9] - Free cash flow reached $51 million, representing an 86% conversion rate[8] Sales Analysis - Organic sales growth was 4%, with a 2% headwind from currency translation[9,23] - Americas reported a 1% organic sales increase, while international saw an 11% increase[23] - Detection segment experienced mid-teens organic growth, while fire service contracted by a high-single-digit percentage[23] Strategic Actions and Outlook - The company increased its Revolving Credit Facility to $13 billion to support future growth initiatives[13,29] - The company is maintaining a low-single-digit organic sales growth outlook for 2025, but acknowledges increased risk due to macroeconomic and policy uncertainty[30] - The company anticipates a flat to 1% revenue headwind from foreign exchange[31]

Company Performance - MSA Safety reported quarterly earnings of $1.68 per share, exceeding the Zacks Consensus Estimate of $1.59 per share, and showing an increase from $1.61 per share a year ago, representing an earnings surprise of 5.66% [1] - The company achieved revenues of $421.34 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.97% and up from $413.3 million year-over-year [2] - Over the last four quarters, MSA Safety has consistently surpassed consensus EPS estimates four times and topped revenue estimates two times [2] Future Outlook - The sustainability of MSA Safety's stock price movement will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $1.97 on revenues of $454.72 million, and for the current fiscal year, it is $8.06 on revenues of $1.82 billion [7] Industry Context - The Security and Safety Services industry, to which MSA Safety belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact MSA Safety's performance [5][6]