Second Quarter 2025 Earnings Presentation August 5, 2025 Second Quarter 2025 Earnings Presentation 1 Cautionary Statements Regarding Forward-looking Statements This presentation may contain (and verbal statements made by MSA® Safety Incorporated ("MSA Safety") may contain) "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance and involve various assumptions, known and unknown risks ...

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]