Msa Safety Incorporated · NYSE:MSA
Msa Safety — Q1 2025 Earnings Presentation
28 slides from Msa Safety's earnings presentation, Apr 30, 2025
Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation April 30, 2025 First Quarter 2025 Earnings Presentation 1
Slide 2: Cautionary Statements Regarding Forward-looking Statements
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 relat
Slide 3: Non-GAAP Financials
Non-GAAP Financials To supplement our Consolidated Financial Statements presented in accordance with generally accepted accounting principles (“GAAP”), we use, and this presentation includes, certain non-GAAP financial measures. These financial measures include organic sales change, adjusted operati
Slide 4: First Quarter 2025 Business Update
First Quarter 2025 Business Update Delivered Solid Operating Performance to Start 2025 DRIVEN BY OUR PURPOSE FIRST QUARTER BUSINESS UPDATE OUR MISSION • Generated solid operating results against backdrop of dynamic That men and women may work in environment, enabled by MSA Business System: safety an
Slide 5: First Quarter 2025 Strategic Actions
First Quarter 2025 Strategic Actions MSA Business System Enabled Continued Focus on Strategic Execution in a Dynamic Environment CONTINUED SAFETY LEADERSHIP AND GROWTH FOCUS Delivered mission-driven innovation in fire service aligned with 2025 NFPA1 standard and excellent growth in detection • Annou
Slide 6: First Quarter 2025 Financial Summary
First Quarter 2025 Financial Summary Mid-Single Digit Organic Sales and Adjusted Earnings Growth Net Sales Adjusted Operating Adjusted EPS Income and Margin $421MM $1.68 $413MM $88MM $88MM $1.61 21.3% 20.8% 1Q 2024 1Q 2025 1Q 2024 1Q 2025 1Q 2024 1Q 2025 2% REPORTED NET SALES GROWTH 20.8% ADJUSTED O
Slide 7: First Quarter 2025 Free Cash Flow and Financial Leverage
First Quarter 2025 Free Cash Flow and Financial Leverage Strong Balance Sheet Provides Capital Deployment Optionality Free Cash Flow Net Leverage $51MM $40MM 0.7x 0.7x 1Q 2024 1Q 2025 12/31/2024 3/31/2025 CASH FLOW GENERATION AND CAPITAL ALLOCATION ROBUST BALANCE SHEET WITH 0.7X NET LEVERAGE • Free
Slide 8: 2025 Outlook
2025 Outlook Maintaining Low-Single Digit Organic Sales Growth Outlook; Increased Risk Due to Macroeconomic and Policy Uncertainty % NET SALES1 DIVERSE END MARKETS OPERATING ENVIRONMENT UPDATE POSITIVES FIRE SERVICE • Government fire service + Diverse end market demand supportive of healthy order •
Slide 9: 10-Year Operating Performance Summary
10-Year Operating Performance Summary Diversified Business Model with History of Resilient Operating Performance — MSA Annual Net Sales1 — MSA Adj. Op. Margin — MSA Adj. EPS — Industrial Production2 2014 2019 2024 22.9% $7.70 18.0% $1.81B $4.80 $1.40B 12.7% $2.55 $1.13B 103.6 103.2 Industrial Recess
Slide 10: A Leader in Industrial Safety Technology
A Leader in Industrial Safety Technology Focused on Delivering Profitable Growth and Value Creation Over the Long-Term 1 2 3 4 5 Delivered solid Mission-driven Reliable, Reinvestment in Strong balance operating culture and diversified base innovation and sheet supports performance unwavering busines
Slide 11: Q&A
Q&A First Quarter 2025 Earnings Presentation 11
Slide 12: Appendix
Appendix First Quarter 2025 Earnings Presentation 12
Slide 13: MSA Safety Snapshot
MSA Safety (NYSE: MSA) Snapshot $1.8B Net Sales 1 Net Sales by Net Sales by Segment1 Product Category1,4 4.4% R&D Investment 1,2 37% Product Vitality 3 31% 38% 37% International Fire Service Detection 47.3% Gross Profit Margin 1 22.8% Adj. Operating Margin 1 0.7x Net Leverage 1 54 Consecutive Divide
Slide 14: MSA Safety | Diverse End Markets
MSA Safety | Diverse End Markets Fire Service Energy Utilities Construction Food & Beverage 40+ Million Workers Protected(1) Industrial Government Water Transportation Mining PROTECTING WORKERS AROUND THE WORLD ACROSS WIDE VARIETY OF END MARKETS (1) As of December 31, 2023. “Workers Protected” is an
Slide 15: MSA Safety | Product Categories and Markets
MSA Safety | Product Categories and Markets DETECTION FIRE SERVICE INDUSTRIAL PPE AND OTHER Fixed Gas & Portable Gas SCBA & Connected Protective Apparel Industrial Fall Flame Detection Detection Firefighter & Helmets Head Protection Protection PRODUCT CATEGORY GLOBAL TAM(1) ~$4.0B ~$2.5B ~$3.5B4 MAR
Slide 16: MSA Safety | Our Accelerate Strategy
MSA Safety | Our Accelerate Strategy CONTINUE TO BE THE IMPLEMENT APPLY MSA BUSINESS ALLOCATE LEADER IN PREMIUM TARGETED GROWTH SYSTEM TO ENABLE CAPITAL SAFETY SOLUTIONS ACCELERATORS EXCELLENCE EFFECTIVELY • Leverage scale, market • Continue to evolve from • Drive excellence in pricing, • Leverage p
Slide 17: MSA Safety | Our Business System (MBS)
MSA Safety | Our Business System (MBS) BEHAVIORS The way we act and react to changes and challenges • Relentless focus on improving our performance on new product development, SG&A, project management, and global business service PROCESSES How we work with others and apply tools • Working Capital: S
Slide 18: MSA Safety | 2028 Financial Targets
MSA Safety | 2028 Financial Targets MISSION-DRIVEN REINVESTMENT • 3 – 5% organic revenue growth Resilient Organic • Market growth, customer-centric innovation, and commercial + Revenue Growth $2.1B – $2.3B excellence • Macro secular safety trends • Target 30 – 50 bps annually Operating Margin(1) + E
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures First Quarter 2025 Earnings Presentation 19
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Organic Sales Change (Unaudited) Consolidated Three Months Ended March 31, 2025 Industrial Fire Detection (b) PPE and Net Sales Service (a) Other (c) GAAP reported sales change (8%) 16% (1%) 2% Currency translation effects 1% 1% 4% 2% Organic sales chang
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Operating Income and Adjusted EBITDA (Unaudited) Three Months Ended Trailing Twelve Months Twelve Months Ended March 31, Ended March 31, December 31, 2025 2024 2025 2024 (In thousands) Adjusted EBITDA $ 101,467 $ 101,254 $ 469,644 $ 469,431 Less
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Earnings and Adjusted Earnings per Diluted Share (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2025 2024 % Change Net income attributable to MSA Safety Incorporated $ 59,605 $ 58,139 3% Restructuring charges 1
Slide 23: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Free Cash Flow (Unaudited) Three Months Ended (In thousands, except percentage amounts) March 31, 2025 2024 Cash flow from operating activities $ 61,833 $ 50,886 Capital expenditures (10,784) (11,219) Free cash flow $ 51,049 $ 39,667 Net Income 59,605 58
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Historic Adjusted Earnings and Adjusted Earnings per Diluted Share (Unaudited) (In thousands, except per share amounts) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (a) Net income attributable to MSA Safety Incorporated $ 87,310 $ 69,069 $ 91,4
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Historic Adjusted Operating Income and Adjusted Operating Margin (Unaudited) (In thousands, except percentage amounts) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net sales $ 1,133,885 $ 1,130,783 $ 1,149,530 $ 1,196,809 $ 1,358,104 $ 1,401,98
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited) Twelve Months Ended (In thousands) March 31, 2025 Operating income $ 386,826 Depreciation and amortization 55,879 Restructuring charges 5,304 Currency exchange losses, net 5,381 Amortiza
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures R&D Investment (Unaudited) (In thousands) Trailing Twelve Months Twelve Months Three Months Ended March 31 Ended March 31 Ended December 31, 2025 2024 2025 2024 Research and development expense $ 15,669 $ 15,919 $ 66,276 $ 66,526 Capitalized software dev
Slide 28: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation 28