MSA Safety rporated(US:MSA)2025-10-29 21:02Financial Performance - Net sales for Q3 2025 reached $468,445,000, a 8.25% increase from $432,679,000 in Q3 2024[7] - Gross profit for the nine months ended September 30, 2025, was $631,721,000, slightly up from $626,016,000 in the same period of 2024[7] - Operating income for Q3 2025 was $94,310,000, compared to $91,477,000 in Q3 2024, reflecting a 3.0% increase[7] - Net income for the nine months ended September 30, 2025, was $191,991,000, down from $197,021,000 in the same period of 2024, a decrease of 2.1%[11] - Earnings per share (EPS) for Q3 2025 was $1.78, up from $1.69 in Q3 2024, representing a 5.3% increase[7] - Net income for the quarter ended September 30, 2025, was $69,613 thousand, an increase from $66,648 thousand in the previous quarter[19] - Net sales for the nine months ended September 30, 2025, reached $1,363,900, an increase from $1,308,443 in the same period of 2024, representing a growth of 4.25%[58] - Adjusted operating income for the nine months ended September 30, 2025, was $292,675, slightly down from $294,114 in 2024, indicating a decrease of 0.47%[58] - Basic earnings per share for the nine months ended September 30, 2025, were $4.95, compared to $5.14 in 2024[94] Assets and Liabilities - Total assets as of September 30, 2025, were $2,553,577,000, an increase from $2,205,784,000 at the end of 2024[13] - The company’s total liabilities increased to $1,251,187,000 as of September 30, 2025, from $1,062,465,000 at the end of 2024[13] - Total assets amounted to $2,553,577 thousand as of September 30, 2025, compared to $2,241,927 thousand at December 31, 2024, indicating a growth of 13.9%[57] - As of September 30, 2025, total long-term debt was $628.583 million, an increase of 23.7% from $508.013 million at December 31, 2024[73] Cash Flow and Dividends - Cash flow from operating activities for the nine months ended September 30, 2025, was $241,513,000, compared to $188,520,000 in 2024, an increase of 28.1%[16] - Dividends per common share increased to $0.53 in Q3 2025 from $0.51 in Q3 2024, a rise of 3.9%[7] - Common dividends declared were $0.53 per share, totaling $20,747 thousand for the quarter ended September 30, 2025[19] Restructuring and Charges - The company incurred restructuring charges of $58,000 in Q3 2025, significantly lower than $1,184,000 in Q3 2024[7] - Restructuring charges for the nine months ended September 30, 2025, totaled $2.5 million, with $1.0 million attributed to the international segment[40] - The company recorded restructuring charges of $5.7 million for the nine months ended September 30, 2024, primarily related to manufacturing footprint optimization[41] Acquisitions and Goodwill - The company acquired M&C TechGroup for approximately $189 million on May 6, 2025, financed by $137.3 million from the Revolving Credit Facility and cash on hand[82] - Goodwill increased to $732.224 million as of September 30, 2025, up from $620.895 million at the beginning of the year, reflecting an addition of $92.568 million from acquisitions[83] - Goodwill of $92.6 million was recorded related to the M&C acquisition, with $58.9 million allocated to the International segment and $33.7 million to the Americas segment[90] Inventory and Capital Expenditures - Total inventories increased to $355,493 thousand as of September 30, 2025, up from $296,796 thousand at December 31, 2024, representing a growth of 19.7%[43] - Capital expenditures for the three months ended September 30, 2025, were $11,986 thousand, down from $14,254 thousand in the same period of 2024, a decrease of 15.9%[57] - Capital expenditures for the nine months ended September 30, 2025, totaled $52,104, compared to $39,814 in 2024, representing an increase of 30.67%[58] Tax and Compliance - The effective tax rate for the nine months ended September 30, 2025, was 24.2%, up from 23.7% in 2024, primarily due to state income taxes and nondeductible executive compensation[63] - The company maintained compliance with financial covenants, including a minimum fixed charges coverage ratio of 1.50 to 1.00 and a consolidated leverage ratio not exceeding 3.50 to 1.00 as of September 30, 2025[79] Stock and Performance Units - The company has authorized a stock repurchase program of up to $200 million with no expiration date, reflecting a commitment to returning value to shareholders[48] - The company repurchased 248,768 shares during the nine months ended September 30, 2025, compared to 108,917 shares in the same period of 2024, representing a 128.3% increase in share repurchases[48] - Performance stock units granted in Q1 2025 had a fair value of $160.54 per unit, with a potential issuance range of 0% to 200% based on performance targets[72] Currency and Foreign Exchange - Currency exchange losses related to derivatives not designated as hedging instruments amounted to $(4,958) thousand for the nine months ended September 30, 2025, compared to $1,683 thousand in 2024[99] - Foreign currency translation adjustments resulted in a gain of $65,049 thousand for the year ended December 31, 2024[19] Other Comprehensive Loss - The accumulated other comprehensive loss decreased from $(147,548) thousand on June 30, 2024, to $(126,205) thousand on September 30, 2024[19] - The balance of accumulated other comprehensive loss at the end of the period was $(10,639) thousand, a slight improvement from $(11,390) thousand at the beginning of the period[45]