MSA Safety Announces Fourth Quarter and Full-Year 2025 Results
Rhea-AI Summary
MSA Safety (NYSE: MSA) reported Q4 2025 net sales of $511M (+2% GAAP, (3)% organic) and GAAP operating income of $114M (22.3% of sales). Full-year 2025 net sales were $1.875B (+4% GAAP, +1% organic) with GAAP earnings of $279M ($7.09 diluted EPS) and adjusted earnings of $312M ($7.93 adjusted EPS).
MSA acquired M&C TechGroup for $189M, returned $162M to shareholders, generated $295M free cash flow, held net debt of $416M and reported net leverage of 0.9x.
Positive
- Full-year net sales $1,874.8M (+4% GAAP)
- Adjusted earnings $312M, adjusted EPS $7.93
- Free cash flow $295M (+22% YoY)
- Acquired M&C TechGroup for $189M
- Returned $162M to shareholders (repurchases+dividends)
- Net leverage ratio 0.9x with $1.2B liquidity
Negative
- Q4 organic sales decline (3)% due to fire service timing
- GAAP operating income down 4% year-over-year (full year)
- GAAP net income down 2% year-over-year (full year)
- Fire service segment showed material timing volatility
News Market Reaction – MSA
In the Feb 12 session, MSA gained 3.21%, reflecting a moderate positive market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | Earnings call schedule | Neutral | -0.6% | Announced timing and access details for Q4 and full-year 2025 earnings call. |
| Jan 29 | Product showcase | Positive | +1.4% | Highlighted new refrigerant management and monitoring systems at AHR Expo. |
| Jan 15 | Dividend declaration | Positive | +1.6% | Declared quarterly common and preferred stock dividends for March 2026 payment. |
| Nov 05 | Investor conferences | Neutral | -1.8% | Outlined participation in multiple late-2025 industrial and transportation conferences. |
| Nov 04 | Product certification | Positive | +0.9% | G1 XR 2025 Edition SCBA received NIOSH and SEI approvals to NFPA 1970 standard. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Product and dividend announcements have often seen modest positive alignment, while conference-related updates have occasionally coincided with mild share price declines.
In the last six months, MSA has focused on investor outreach, product innovation and shareholder returns. It scheduled its Q4/FY 2025 earnings call on Jan 29, 2026 and highlighted new refrigerant monitoring solutions for AHR Expo the same day, with small positive price reactions to product news. A quarterly dividend of $0.53 per share on Jan 15, 2026 and NFPA-compliant breathing apparatus certification on Nov 4, 2025 also saw modest gains. Today’s earnings release extends that pattern of steady, operationally focused updates.
Key Terms
gaap financial
adjusted operating income financial
adjusted ebitda financial
free cash flow financial
organic sales change financial
bps financial
net leverage ratio financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Fourth Quarter 2025 Highlights
- Achieved net sales of
$511 million 2% GAAP increase and (3)% organic(a) decrease year-over-year primarily due to timing delays in fire service - Generated GAAP operating income of
$114 million 22.3% of net sales, and adjusted operating income of$122 million 23.9% of net sales - Recorded GAAP net income of
$87 million $2.21 $93 million $2.38 - Returned a total of
$61 million $40 million $21 million $48 million $16 million
Full-Year 2025 Highlights
- Achieved net sales of
$1.9 billion 4% GAAP increase and1% organic increase year-over-year, including timing delays in fire service - Generated GAAP operating income of
$372 million 19.8% of net sales, and adjusted operating income of$415 million 22.1% of net sales - Recorded GAAP earnings of
$279 million $7.09 $312 million $7.93 - Acquired M&C TechGroup for
$189 million $162 million $80 million $82 million $68 million - Maintain strong balance sheet and ample liquidity to support Accelerate strategy
(a) Definition of organic revenue growth provided on the bottom of page ten. |
"We reported solid 2025 performance in a challenging operating environment," said Steve Blanco, MSA Safety President and Chief Executive Officer. "Our team delivered resilient full-year results despite headwinds to organic sales and margins, driven by strong execution and effective SG&A management. This year, our sales growth headwinds included pockets of industrial end market weakness, timing challenges in the
Financial Highlights
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
(In millions, except per share data and percentages) | 2025 | 2024 | % Change (a) | 2025 | 2024 | % Change (a) | ||||||
Net Sales | $ 511 | $ 500 | 2 % | $ 1,875 | $ 1,808 | 4 % | ||||||
GAAP | ||||||||||||
Operating income | 114 | 118 | (3) % | 372 | 389 | (4) % | ||||||
% of Net sales | 22.3 % | 23.5 % | (120) bps | 19.8 % | 21.5 % | (170) bps | ||||||
Net income | 87 | 88 | (1) % | 279 | 285 | (2) % | ||||||
Diluted EPS | $ 2.21 | $ 2.22 | — % | $ 7.09 | $ 7.21 | (2) % | ||||||
Non-GAAP | ||||||||||||
Adjusted EBITDA | $ 136 | $ 135 | 1 % | $ 473 | $ 469 | 1 % | ||||||
% of Net sales | 26.6 % | 26.9 % | (30) bps | 25.2 % | 26.0 % | (80) bps | ||||||
Adjusted operating income | $ 122 | $ 120 | 1 % | $ 415 | $ 414 | — % | ||||||
% of Net sales | 23.9 % | 24.0 % | (10) bps | 22.1 % | 22.9 % | (80) bps | ||||||
Adjusted earnings | 93 | 89 | 5 % | 312 | 305 | 2 % | ||||||
Adjusted diluted EPS | $ 2.38 | $ 2.25 | 6 % | $ 7.93 | $ 7.70 | 3 % | ||||||
Free cash flow | 106 | 93 | 13 % | 295 | 242 | 22 % | ||||||
Free cash flow conversion | 122 % | 106 % | 106 % | 85 % | ||||||||
Americas Segment | ||||||||||||
Net sales | $ 335 | $ 337 | (1) % | $ 1,262 | $ 1,247 | 1 % | ||||||
GAAP operating income | 101 | 101 | — % | 356 | 371 | (4) % | ||||||
% of Net sales | 30.3 % | 30.1 % | 20 bps | 28.2 % | 29.8 % | (160) bps | ||||||
Adjusted operating income | 104 | 104 | — % | 365 | 380 | (4) % | ||||||
% of Net sales | 31.0 % | 30.7 % | 30 bps | 28.9 % | 30.5 % | (160) bps | ||||||
International Segment | ||||||||||||
Net sales | $ 176 | $ 163 | 8 % | $ 613 | $ 561 | 9 % | ||||||
GAAP operating income | 27 | 28 | (3) % | 79 | 79 | — % | ||||||
% of Net sales | 15.4 % | 17.1 % | (170) bps | 12.9 % | 14.1 % | (120) bps | ||||||
Adjusted operating income | 30 | 29 | 3 % | 93 | 85 | 10 % | ||||||
% of Net sales | 16.8 % | 17.6 % | (80) bps | 15.2 % | 15.1 % | 10 bps | ||||||
(a) Percentage change may not calculate exactly due to rounding. |
Balance Sheet and Cash Flow
"While macroeconomic conditions presented challenges, MSA delivered organic sales growth within our low-single digit 2025 Outlook range, free cash flow conversion that surpassed our annual target range and higher capital returns to shareholders," commented Julie Beck, MSA Safety Senior Vice President and Chief Financial Officer. "Our strong balance sheet and ample liquidity continue to provide us the ability to deliver on our balanced capital allocation priorities of organic growth, M&A, and capital returns to shareholders, which will enable us to execute our strategy to invest and drive profitable growth," Beck added.
The company deployed capital in line with its capital allocation strategy in 2025 by acquiring M&C TechGroup for
2026 Net Sales Outlook
The company is expecting mid-single digit full-year organic sales growth in 2026, and has provided an update on the operating environment below:
Tailwinds
- Increasing global safety standards creating demand for sophisticated safety products and solutions; diverse end markets provide resiliency
- Favorable underlying demand for fixed and portable detection, including MSA+ connected ecosystem solutions
- Carry-over from fire service late AFG funding and
U.S. Government shutdown in 2025 - Industrial PPE to benefit from continued momentum in fall protection
- Positive contribution from strategic pricing actions
Headwinds
- Continued macroeconomic, tariff and geopolitical policy uncertainty
- Mixed industrial end market demand globally
- Non-recurrence of large detection orders in
Latin America
Conference Call
MSA Safety will host a conference call on Thursday, February 12, 2026 at 10:00 a.m. Eastern Time to discuss the fourth quarter and full-year 2025 results. The call and an accompanying slide presentation will be webcast at http://investors.msasafety.com/ under the "News and Events" tab, subheading "Events & Presentations." Investors and interested parties can also dial into the call at 1-844-854-4415 (toll-free) or 1-412-902-6599 (international). When prompted, please instruct the operator to be joined into the MSA Safety Incorporated conference call. A replay of the conference call will be available at http://investors.msasafety.com/ shortly after the conclusion of the presentation and will be available for the next 90 days.
MSA Safety Incorporated Consolidated Statement of Income (Unaudited) (In thousands, except per share amounts) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net sales | $ 510,913 | $ 499,696 | $ 1,808,140 | ||||
Cost of products sold | 271,521 | 265,267 | 1,003,701 | 947,695 | |||
Gross profit | 239,392 | 234,429 | 871,113 | 860,445 | |||
Selling, general and administrative | 105,359 | 100,378 | 414,254 | 394,707 | |||
Research and development | 16,157 | 16,831 | 65,343 | 66,526 | |||
Restructuring charges | 1,427 | 653 | 3,897 | 6,397 | |||
Currency exchange losses (gains), net | 2,564 | (1,077) | 15,801 | 3,638 | |||
Operating income | 113,885 | 117,644 | 371,818 | 389,177 | |||
Interest expense | 8,431 | 7,333 | 31,799 | 36,889 | |||
Other income, net | (7,794) | (6,503) | (26,379) | (22,718) | |||
Total other expense, net | 637 | 830 | 5,420 | 14,171 | |||
Income before income taxes | 113,248 | 116,814 | 366,398 | 375,006 | |||
Provision for income taxes | 26,315 | 28,868 | 87,474 | 90,039 | |||
Net income | 86,933 | 87,946 | 278,924 | 284,967 | |||
Earnings per share attributable to common shareholders: | |||||||
Basic | $ 2.22 | $ 2.23 | $ 7.11 | $ 7.24 | |||
Diluted | $ 2.21 | $ 2.22 | $ 7.09 | $ 7.21 | |||
Basic shares outstanding | 39,107 | 39,374 | 39,216 | 39,371 | |||
Diluted shares outstanding | 39,248 | 39,548 | 39,346 | 39,535 | |||
MSA Safety Incorporated Condensed Consolidated Balance Sheet (Unaudited) (In thousands) | |||
December 31, 2025 | December 31, 2024 | ||
Assets | |||
Cash and cash equivalents | $ 165,067 | $ 164,560 | |
Trade receivables, net | 306,452 | 279,213 | |
Inventories | 343,035 | 296,796 | |
Other current assets | 54,738 | 62,461 | |
Total current assets | 869,292 | 803,030 | |
Property, plant and equipment, net | 283,063 | 211,865 | |
Prepaid pension cost | 279,450 | 224,638 | |
Goodwill | 731,592 | 620,895 | |
Intangible assets, net | 299,127 | 246,437 | |
Other noncurrent assets | 91,850 | 98,919 | |
Total assets | $ 2,554,374 | $ 2,205,784 | |
Liabilities and shareholders' equity | |||
Notes payable and current portion of long-term debt, net | $ 8,225 | $ 26,391 | |
Accounts payable | 110,775 | 108,163 | |
Other current liabilities | 170,211 | 153,539 | |
Total current liabilities | 289,211 | 288,093 | |
Long-term debt, net | 572,709 | 481,622 | |
Pensions and other employee benefits | 143,834 | 134,251 | |
Deferred tax liabilities | 127,540 | 107,691 | |
Other noncurrent liabilities | 54,068 | 50,808 | |
Total shareholders' equity | 1,367,012 | 1,143,319 | |
Total liabilities and shareholders' equity | $ 2,554,374 | $ 2,205,784 | |
MSA Safety Incorporated Condensed Consolidated Statement of Cash Flows (Unaudited) (In thousands) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net income | $ 86,933 | $ 87,946 | $ 278,924 | $ 284,967 | |||
Depreciation and amortization | 18,656 | 16,770 | 71,591 | 64,333 | |||
Change in working capital and other operating | 16,765 | 3,192 | 13,352 | (52,872) | |||
Cash flow from operating activities | 122,354 | 107,908 | 363,867 | 296,428 | |||
Capital expenditures | (16,334) | (14,409) | (68,438) | (54,223) | |||
Acquisition, net of cash acquired | (1,501) | — | (189,275) | — | |||
Property disposals and other investing | 60 | 378 | 79 | 468 | |||
Cash flow used in investing activities | (17,775) | (14,031) | (257,634) | (53,755) | |||
Change in debt | (48,014) | (43,251) | 67,314 | (94,254) | |||
Cash dividends paid | (20,706) | (20,089) | (82,344) | (78,759) | |||
Company stock purchases under repurchase program | (39,997) | (9,906) | (79,992) | (29,932) | |||
Other financing | 1,078 | 729 | (10,443) | (5,744) | |||
Cash flow used in financing activities | (107,639) | (72,517) | (105,465) | (208,689) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,875) | (11,233) | 127 | (17,295) | |||
(Decrease) increase in cash, cash equivalents and | $ (4,935) | $ 10,127 | $ 895 | $ 16,689 | |||
MSA Safety Incorporated Sales by Product Group (Unaudited) (In thousands, except percentages)
| ||||||||||||
Three Months Ended December 31, 2025 | Consolidated | International | ||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||
Detection(a) | $ 217,299 | 43 % | $ 140,608 | 42 % | $ 76,691 | 44 % | ||||||
Fire Service(b) | 174,898 | 34 % | 120,025 | 36 % | 54,873 | 31 % | ||||||
Industrial PPE and Other(c) | 118,716 | 23 % | 74,558 | 22 % | 44,158 | 25 % | ||||||
Total | $ 510,913 | 100 % | $ 335,191 | 100 % | $ 175,722 | 100 % | ||||||
Three Months Ended December 31, 2024 | Consolidated | International | ||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||
Detection(a) | $ 169,578 | 34 % | $ 108,680 | 32 % | $ 60,898 | 37 % | ||||||
Fire Service(b) | 216,206 | 43 % | 155,008 | 46 % | 61,198 | 38 % | ||||||
Industrial PPE and Other(c) | 113,912 | 23 % | 73,207 | 22 % | 40,705 | 25 % | ||||||
Total | $ 499,696 | 100 % | $ 336,895 | 100 % | $ 162,801 | 100 % | ||||||
Twelve Months Ended December 31, 2025 | Consolidated | International | ||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||
Detection(a) | $ 763,393 | 41 % | $ 501,784 | 40 % | $ 261,609 | 43 % | ||||||
Fire Service(b) | 647,474 | 34 % | 446,245 | 35 % | 201,229 | 33 % | ||||||
Industrial PPE and Other(c) | 463,947 | 25 % | 313,812 | 25 % | 150,135 | 24 % | ||||||
Total | $ 1,874,814 | 100 % | $ 1,261,841 | 100 % | $ 612,973 | 100 % | ||||||
Twelve Months Ended December 31, 2024 | Consolidated | International | ||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||
Detection(a) | 642,792 | 36 % | 426,839 | 34 % | 215,953 | 38 % | ||||||
Fire Service(b) | 712,684 | 39 % | 507,738 | 41 % | 204,946 | 36 % | ||||||
Industrial PPE and Other(c) | 452,664 | 25 % | 312,064 | 25 % | 140,600 | 26 % | ||||||
Total | $ 1,808,140 | 100 % | $ 1,246,641 | 100 % | $ 561,499 | 100 % | ||||||
(a) Detection includes Fixed Gas and Flame Detection and Portable Gas detection. Detection includes sales from M&C TechGroup Germany GmbH and its affiliated companies ("M&C"), acquired by the Company, from May 6th, 2025, onward ( |
(b) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel. |
(c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core. |
MSA Safety Incorporated Reconciliation of GAAP to Non-GAAP Financial Measures Organic revenue change (Unaudited) | |||||
Consolidated | |||||
Three Months Ended December 31, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
GAAP reported sales change | 28 % | (19) % | 4 % | 2 % | |
Currency translation effects | (3) % | (2) % | (3) % | (2) % | |
Less: Acquisitions | (8) % | — % | — % | (3) % | |
Organic sales change | 17 % | (21) % | 1 % | (3) % | |
Twelve Months Ended December 31, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
GAAP reported sales change | 19 % | (9) % | 2 % | 4 % | |
Currency translation effects | (1) % | (1) % | — % | (1) % | |
Less: Acquisitions | (6) % | — % | — % | (2) % | |
Organic sales change | 12 % | (10) % | 2 % | 1 % | |
Americas Segment | |||||
Three Months Ended December 31, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
GAAP reported sales change | 29 % | (23) % | 2 % | (1) % | |
Currency translation effects | (2) % | — % | (3) % | (1) % | |
Less: Acquisitions | (3) % | — % | — % | (1) % | |
Organic sales change | 24 % | (23) % | (1) % | (3) % | |
Twelve Months Ended December 31, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
GAAP reported sales change | 18 % | (12) % | 1 % | 1 % | |
Currency translation effects | — % | — % | 1 % | — % | |
Less: Acquisitions | (3) % | — % | — % | (1) % | |
Organic sales change | 15 % | (12) % | 2 % | — % | |
International Segment | |||||
Three Months Ended December 31, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
GAAP reported sales change | 26 % | (10) % | 8 % | 8 % | |
Currency translation effects | (4) % | (6) % | (4) % | (5) % | |
Less: Acquisitions | (18) % | — % | — % | (6) % | |
Organic sales change | 4 % | (16) % | 4 % | (3) % | |
Twelve Months Ended December 31, 2025 | |||||
Detection(a) | Fire | Industrial PPE | Net Sales | ||
GAAP reported sales change | 21 % | (2) % | 7 % | 9 % | |
Currency translation effects | (3) % | (3) % | (3) % | (3) % | |
Less: Acquisitions | (13) % | — % | — % | (5) % | |
Organic sales change | 5 % | (5) % | 4 % | 1 % | |
(a) Detection includes Fixed Gas and Flame Detection and Portable Gas Detection. Detection includes sales from M&C, acquired by the Company, from May 6th, 2025, onward ( |
(b) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel. |
(c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core. |
Management believes that organic sales change is a useful metric for investors, as foreign currency translation, acquisitions and divestitures can have a material impact on sales change trends. Organic sales change highlights ongoing business performance excluding the impact of fluctuating foreign currencies, acquisitions and divestitures. There can be no assurances that MSA's definition of organic sales change is consistent with that of other companies. As such, management believes that it is appropriate to consider sales change determined on a GAAP basis in addition to this non-GAAP financial measure.
MSA Safety Incorporated Reconciliation of Non-GAAP Financial Measures Adjusted operating income (Unaudited) Adjusted EBITDA (Unaudited) (In thousands) | |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Adjusted EBITDA | $ 135,999 | $ 134,642 | $ 472,911 | $ 469,431 | |||
Less: | |||||||
Depreciation and amortization | 14,076 | 14,484 | 58,313 | 55,159 | |||
Adjusted operating income | 121,923 | 120,158 | 414,598 | 414,272 | |||
Less: | |||||||
Currency exchange losses (gains), net | 2,564 | (1,077) | 15,801 | 3,638 | |||
Acquisition-related amortization | 3,582 | 2,286 | 12,615 | 9,174 | |||
Restructuring charges | 1,427 | 653 | 3,897 | 6,397 | |||
Net cost for product related legal matter | — | — | — | 5,000 | |||
Transaction costs (a) | 465 | 652 | 10,467 | 886 | |||
GAAP operating income | 113,885 | 117,644 | 371,818 | 389,177 | |||
Less: | |||||||
Interest expense | 8,431 | 7,333 | 31,799 | 36,889 | |||
Other income, net | (7,794) | (6,503) | (26,379) | (22,718) | |||
Income before income taxes | 113,248 | 116,814 | 366,398 | 375,006 | |||
Provision for income taxes | 26,315 | 28,868 | 87,474 | 90,039 | |||
Net income | $ 86,933 | $ 87,946 | $ 278,924 | $ 284,967 | |||
(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during our evaluation of or in connection with acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the Consolidated Statements of Operations. |
Adjusted operating income, adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are non-GAAP financial measures and operating ratios derived from non-GAAP measures. Adjusted operating income is defined as operating income excluding restructuring charges, currency exchange gains / losses, acquisition-related amortization, net cost for product related legal matter and transaction costs. Adjusted operating margin is defined as adjusted operating income divided by net sales to external customers. Adjusted EBITDA is defined as adjusted operating income plus depreciation and amortization, and adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales to external customers. These metrics are consistent with how management evaluates segment results and makes strategic decisions about the business. Additionally, these non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are not recognized terms under GAAP, and therefore do not purport to be alternatives to operating income or operating margin as a measure of operating performance. The company's definition of adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. As such, management believes that it is appropriate to consider operating income and net income determined on a GAAP basis in addition to these non-GAAP measures.
MSA Safety Incorporated Reconciliation of Non-GAAP Financial Measures Adjusted earnings (Unaudited) Adjusted earnings per diluted share (Unaudited) (In thousands, except percentages and per share amounts) | |||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
2025 | 2024 | % | 2025 | 2024 | % | ||||||
Net income | $ 86,933 | $ 87,946 | (1) % | (2) % | |||||||
Currency exchange losses (gains), net | 2,564 | (1,077) | 15,801 | 3,638 | |||||||
Restructuring charges | 1,427 | 653 | 3,897 | 6,397 | |||||||
Acquisition-related amortization | 3,582 | 2,286 | 12,615 | 9,174 | |||||||
Transaction costs (a) | 465 | 652 | 10,467 | 886 | |||||||
Asset related losses (gains) | 419 | (141) | 1,408 | 819 | |||||||
Pension settlement | — | — | 721 | 1,308 | |||||||
Net cost for product related legal matter | — | — | — | 5,000 | |||||||
Income tax expense on adjustments | (2,019) | (1,277) | (11,904) | (7,689) | |||||||
Adjusted earnings | $ 93,371 | $ 89,042 | 5 % | 2 % | |||||||
Adjusted earnings per diluted share | $ 2.38 | $ 2.25 | 6 % | $ 7.93 | $ 7.70 | 3 % | |||||
(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during our evaluation of or in connection with acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the Consolidated Statements of Operations. |
Management believes that adjusted earnings and adjusted diluted earnings per share are useful measures for investors, as management uses these measures to internally assess the company's performance and ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that MSA's definition of adjusted earnings is consistent with that of other companies. As such, management believes that it is appropriate to consider both net income determined on a GAAP basis as well as adjusted earnings.
MSA Safety Incorporated Reconciliation of Non-GAAP Financial Measures Debt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited) (In thousands) | ||
Twelve Months Ended December 31, 2025 | ||
Operating income | $ 371,818 | |
Depreciation and amortization | 58,313 | |
Currency exchange losses, net | 15,801 | |
Restructuring charges | 3,897 | |
Acquisition-related amortization | 12,615 | |
Transaction costs (a) | 10,467 | |
Adjusted EBITDA | $ 472,911 | |
Total end-of-period debt | 580,934 | |
Debt to adjusted EBITDA | 1.2 | |
Total end-of-period debt | 580,934 | |
Total end-of-period cash and cash equivalents | 165,067 | |
Net debt | $ 415,867 | |
Net debt to adjusted EBITDA | 0.9 | |
(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during our evaluation of or in connection with acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the Consolidated Statements of Operations. |
Management believes that Debt to adjusted EBITDA and Net debt to adjusted EBITDA are useful measures for investors, as management uses these measures to internally assess the company's liquidity and balance sheet strength. There can be no assurances that that MSA's definition of Debt to adjusted EBITDA and Net debt to adjusted EBITDA is consistent with that of other companies.
About MSA Safety:
MSA Safety Incorporated (NYSE: MSA) is the global leader in advanced safety products, technologies and solutions. Driven by its singular mission of safety, the Company has been at the forefront of safety innovation since 1914, protecting workers and facility infrastructure around the world across a broad range of diverse end markets while creating sustainable value for shareholders. With 2025 revenues of
Cautionary Statement Regarding Forward-Looking Statements:
Except for historical information, certain matters discussed in this press release may be "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, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or other comparable words. Actual results, performance or outcomes may differ materially from those expressed or implied by these forward-looking statements and may not align with historical performance and events due to a number of factors, including those discussed in the sections of our annual report on Form 10-K entitled "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors," and those discussed in our Form 10-Q quarterly reports filed after such annual report. MSA's SEC filings are readily obtainable at no charge at www.sec.gov, as well as on its own investor relations website at http://investors.MSAsafety.com. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and caution should be exercised against placing undue reliance upon such statements, which are based only on information currently available to us and speak only as of the date hereof. We are under no duty to update publicly any of the forward-looking statements after the date of this earnings press release, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures:
This press release includes certain non-GAAP financial measures. These financial measures include organic sales change, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted earnings, adjusted earnings per diluted share, debt to adjusted EBITDA, and net debt to adjusted EBITDA. These non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Management also uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use, and computational methods with respect thereto, may differ from the non-GAAP financial measures and key performance indicators, and computational methods, that our peers use to assess their performance and trends.
The presentation of these non-GAAP financial measures does not comply with
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SOURCE MSA Safety