Msa Safety Incorporated · NYSE:MSA
Msa Safety — Q4 2024 Earnings Presentation
30 slides from Msa Safety's earnings presentation, Feb 13, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Presentation
Fourth Quarter and Full Year 2024 Earnings Presentation February 13, 2025 Fourth Quarter and Full Year 2024 Earnings Results 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: Purpose-Led Company Driven by Our Mission of Safety
Purpose-Led Company Driven by Our Mission of Safety Protecting the World’s Workers and Workplaces with Our Innovative Products and Solutions MISSION VALUES That men and women may work in safety and that they, their families, and their communities may live in health throughout the world Embracing cha
Slide 5: 4Q and Full Year 2024 Business Update
4Q and Full Year 2024 Business Update 10% Full-Year EPS Growth on 2% Organic Sales Growth Amid Dynamic Operating Environment FOURTH QUARTER FULL YEAR • Delivered resilient operating results against backdrop of dynamic • Created strong foundation for 2025 execution of Accelerate environment, enabled
Slide 6: 2024 Highlights Align with Accelerate Strategy
2024 Highlights Align with Accelerate Strategy Strategic Actions Built Strong Foundation; Remain on Path to Delivering Long-Term Targets CONTINUE TO BE IMPLEMENT APPLY MSA BUSINESS ALLOCATE THE LEADER IN PREMIUM TARGETED GROWTH SYSTEM TO ENABLE CAPITAL SAFETY SOLUTIONS ACCELERATORS EXCELLENCE EFFECT
Slide 7: 4Q 2024 Financial Summary
4Q 2024 Financial Summary Low-Single Digit Sales Growth, Margin Expansion and High-Single Digit Earnings Growth Net Sales Adjusted Operating Adjusted EPS Income and Margin $120MM $2.25 $495MM $500MM $115MM $2.06 24.0% 23.3% 4Q 2023 4Q 2024 4Q 2023 4Q 2024 4Q 2023 4Q 2024 1% NET SALES GROWTH 24.0% AD
Slide 8: Full Year 2024 Financial Summary
Full Year 2024 Financial Summary Low-Single Digit Sales Growth, Margin Expansion and Double-Digit Earnings Growth Net Sales Adjusted Operating Adjusted EPS Adjusted ROCE Income and Margin $7.70 22.9% $1,808MM $414MM $7.03 22.6% $1,788MM $398MM 22.9% 22.2% 24.0% FY 2023 FY 2024 FY 2023 FY 2024 FY 202
Slide 9: 4Q and Full Year 2024 Free Cash Flow and Financial Leverage
4Q and Full Year 2024 Free Cash Flow and Financial Leverage Financial Profile Enables Continued Optionality to Execute Strategy Free Cash Flow Net Leverage Fourth Quarter Full Year $147MM $397MM 2.2x $93MM $242MM 1.0x 0.7x Q4 2023 Q4 2024 Adj. FY 2023 (2) FY 2024 12/31/2022 Pro Forma(3) 12/31/2023 1
Slide 10: Recent Financial Performance
Recent Financial Performance Results Reflect Continued Resiliency Amid Dynamic Operating Environment Key Financial Metrics Organic Sales Incremental Adjusted Free Cash Flow Growth Operating Margin Conversion(1) 2022 +10% 39% 52% 2023 +16% 41% 143%(2) 2024 +2% 81% 80% Average Annual Financial Targets
Slide 11: 2025 Outlook
2025 Outlook Low-Single Digit Organic Growth Outlook Reflects Healthy but Dynamic Operating Environment; Includes Non-Recurrence of 2024 Large U.S. Air Force Order, Normal Seasonal Patterns % NET SALES(1) DIVERSE END MARKETS OPERATING ENVIRONMENT UPDATE POSITIVES FIRE SERVICE • Government fire servi
Slide 12: 2025 Strategic Priorities
2025 Strategic Priorities Leveraging the MSA Business System to Advance Accelerate Strategy 2025 STRATEGIC PRIORITIES CONTINUED SAFETY LEADERSHIP AND GROWTH FOCUS Continue to lead and drive scale in the safety market with premium innovative solutions • Leverage leading new product development proces
Slide 13: 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 Solid execution Mission-driven Reliable, Reinvestment in Strong balance in 2024 resulted culture and diversified base innovation and sheet supports in resilient unwavering
Slide 14: Q&A
Q&A Fourth Quarter and Full Year 2024 Earnings Results 14
Slide 15: Appendix
Appendix Fourth Quarter and Full Year 2024 Earnings Results 15
Slide 16: MSA Safety (NYSE: MSA) Snapshot
MSA Safety (NYSE: MSA) Snapshot $1.8B Net Sales (1) Net Sales by Net Sales by Segment(1) Product Category(1,4) 4.4% R&D Investment (1,2) 37% Product Vitality (3) 31% 39% 36% International Fire Service Detection 47.6% Gross Margin (1) 22.9% Adj. Operating Margin (1) 0.7x Net Leverage (1) 54 Consecuti
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Fourth Quarter and Full Year 2024 Earnings Results 22
Slide 23: Reconciliation of Non-GAAP Financial Measures: Organic Sales Change
Reconciliation of Non-GAAP Financial Measures Organic Sales Change (Unaudited) Consolidated Three Months Ended Decem ber 31, 2024 Tw elve Months Ended Decem ber 31, 2024 Industrial Industrial Fire Fire Detection (b) PPE and Net Sales Detection (b) PPE and Net Sales Service (a) Service (a) Other (c)
Slide 24: Adjusted Operating Income and Adjusted EBITDA
Reconciliation of Non-GAAP Financial Measures Adjusted Operating Income and Adjusted EBITDA (Unaudited) (a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in selling,
Slide 25: Adjusted Earnings and Adjusted Earnings per Diluted Share
Reconciliation of Non-GAAP Financial Measures Adjusted Earnings and Adjusted Earnings per Diluted Share (Unaudited) (In thousands, except per share amounts) Three Months Ended December 31, Twelve Months Ended September 31, 2024 2023 % Change 2024 2023 % Change Net income attributable to MSA Safety I
Slide 26: Free Cash Flow
Reconciliation of Non-GAAP Financial Measures Free Cash Flow (Unaudited) Three Months Ended Twelve Months Ended (In thousands, except percentage amounts) December 31, December 31, 2024 2023 2024 2023 2022 Cash flow from operating activities $ 107,909 $ 158,914 $ 296,428 $ 92,857 $ 157,455 Contributi
Slide 27: Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA
Reconciliation of Non-GAAP Financial Measures Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited) Twelve Months Ended Twelve Months Ended Twelve Months Ended (In thousands) December 31, December 31, December 31, 2024 2023 2022 Operating income $ 389,177 $ 231,320 $ 239,137 Depreciati
Slide 28: Adjusted Return on Capital Employed
Reconciliation of Non-GAAP Financial Measures Adjusted Return on Capital Employed (Unaudited) Twelve Months Ended Twelve Months Ended December 31, December 31, 2024 2023 Net income attributable to MSA Safety Incorporated $ 284,967 $ 58,583 — — Tax charges associated with reorganization — (992) Loss
Slide 29: R&D Investment
Reconciliation of Non-GAAP Financial Measures R&D Investment (Unaudited) (In thousands) Twelve Months Ended December 31, 2024 2023 Research and development expense $ 66,526 $ 67,988 Capitalized software development costs 12,993 12,060 Total R&D investment $ 79,519 $ 80,048 Net sales $ 1,808,140 $ 1,
Slide 30: Fourth Quarter and Full Year 2024 Earnings Results
Fourth Quarter and Full Year 2024 Earnings Results 30