Strong Q1 2026 lifts MSA Safety (NYSE: MSA) margins and EPS
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
MSA Safety Incorporated reported strong first quarter 2026 results with net sales of $463.6 million, up 10% year-over-year, including 3% organic growth. GAAP operating income rose to $93.0 million, or 20.1% of sales, while adjusted operating income reached $101.1 million, or 21.8% of sales.
GAAP net income increased to $71.3 million, or $1.83 per diluted share, and adjusted earnings were $77.5 million, or $1.99 per diluted share, reflecting 18% adjusted EPS growth. Adjusted EBITDA was $115.9 million, a 14% increase, with a 25.0% margin.
The company generated free cash flow of $65.1 million and returned $71 million to shareholders through $50 million of share repurchases and $21 million of dividends. A new $500 million share repurchase authorization was approved, and net debt stood at $433 million, resulting in a net debt to adjusted EBITDA ratio of 0.9x, highlighting a strong balance sheet and liquidity position.
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Insights
MSA delivers broad-based Q1 growth, higher margins and maintains a conservative balance sheet.
MSA Safety posted Q1 2026 sales of $463.6 million, up 10%, with 3% organic growth. Profitability expanded as GAAP operating income rose to $93.0 million and adjusted operating margin improved to 21.8%, supported by the MSA Business System and strong Americas execution.
Adjusted earnings climbed to $77.5 million, or $1.99 per diluted share, an 18% increase. Free cash flow of $65.1 million and ample liquidity of $1.2 billion underpinned shareholder returns of $71 million and a new $500 million repurchase authorization.
International segment margins compressed, with GAAP operating margin declining to 9.0%, reflecting regional challenges. Even so, net debt of $433 million and net leverage of 0.9x as of March 31, 2026 indicate meaningful balance sheet capacity for the stated Accelerate strategy and M&A pipeline, subject to evolving macro and geopolitical conditions.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Net Sales: $463.6 million
Q1 2026 GAAP Net Income: $71.3 million
Q1 2026 Diluted EPS: $1.83 per share
+5 more
8 metrics
Q1 2026 Net Sales
$463.6 million
Three months ended March 31, 2026; up 10% year-over-year
Q1 2026 GAAP Net Income
$71.3 million
Three months ended March 31, 2026; up 20% year-over-year
Q1 2026 Diluted EPS
$1.83 per share
GAAP diluted earnings per share for Q1 2026 vs $1.51 in 2025
Q1 2026 Adjusted Diluted EPS
$1.99 per share
Adjusted diluted earnings per share for Q1 2026, up 18%
Q1 2026 Free Cash Flow
$65.1 million
Three months ended March 31, 2026; 28% increase vs prior year
Shareholder Returns Q1 2026
$71 million
Combination of $50 million repurchases and $21 million dividends
New Repurchase Authorization
$500 million
New share repurchase program authorized in February 2026
Net Debt to Adjusted EBITDA
0.9x
Net leverage ratio as of March 31, 2026
Key Terms
organic sales change, adjusted EBITDA, free cash flow, net debt to adjusted EBITDA, +2 more
6 terms
organic sales change financial
"Management believes that organic sales change is a useful metric for investors, as foreign currency translation, acquisitions and divestitures can have a material impact"
Organic sales change measures how a company’s revenue grows or shrinks from its ongoing operations after removing effects from things like buying or selling businesses and swings in currency value. It tells investors whether the core business is gaining or losing customers and market share — like judging a garden’s growth by the plants you tended yourself, not by adding new pots or blaming the weather — which helps separate real performance from one-time or external factors.
adjusted EBITDA financial
"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"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow | | | | | | | 65.1 | | | 51.0 | | | 28 | %"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
net debt to adjusted EBITDA financial
"Net debt to adjusted EBITDA | | 0.9 |"
Net debt to adjusted EBITDA is a leverage ratio that compares a company’s net debt (total interest-bearing debt minus cash) to its recurring operating earnings after removing one-off items. Think of it like how many years of steady take-home pay the business would need to pay off its outstanding debt; investors use it to gauge debt burden, financial risk and relative creditworthiness, with lower ratios generally indicating a safer balance sheet.
restructuring charges financial
"Restructuring charges | 2,329 | | | 1,924"
Restructuring charges are costs that a company pays when it changes how it operates, like closing factories or laying off employees. These expenses are often one-time and happen to help the company become more efficient in the long run. They matter because they can affect the company's profits and how investors see its future prospects.
transaction costs financial
"Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during our evaluation of or in connection with acquisitions"
Costs incurred when buying or selling an asset, including broker fees, taxes, the gap between buy and sell prices, and any price movement caused by the trade. Like paying a dealer fee and fuel when you buy a car, these charges reduce the money an investor actually keeps and can turn a small profit into a loss. Investors watch them because higher transaction costs eat into returns and affect how often and what size trades make sense.
Earnings Snapshot
Revenue: $463.6 million · Guidance included
Q1 2026
Revenue
$463.6 million
+10% year-over-year
GAAP diluted EPS
$1.83
+21% year-over-year
Adjusted diluted EPS
$1.99
+18% year-over-year
Adjusted EBITDA
$115.9 million
+14% year-over-year
Guidance
The company is maintaining its mid-single-digit 2026 organic sales growth outlook.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 8-K
________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 4, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification Number) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: 724 -776-8600
Former name or former address, if changed since last report: N/A
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 | Results of Operations and Financial Condition | ||||
On May 4, 2026 , the Company issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 to this report.
Item 9.01 | Financial Statements and Exhibits | ||||
(d) Exhibits
99.1 MSA Safety Incorporated Press Release dated May 4, 2026 , announcing financial results for the quarter ended March 31, 2026.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MSA SAFETY INCORPORATED | |||||||||||
(Registrant) | |||||||||||
By | /s/ Julie A. Beck | ||||||||||
| Julie A. Beck | |||||||||||
| Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) | |||||||||||
EXHIBIT INDEX
Exhibit No. Description
99.1 MSA Safety Incorporated Press Release dated May 4th, 2026, announcing financial results for the quarter ended March 31, 2026.
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
FROM: MSA Safety Incorporated
Ticker: MSA (NYSE)
Media Relations Contact: Mark Deasy (412) 559-8154
Investor Relations Contact: Larry De Maria (917) 245-7463
MSA Safety Announces First Quarter 2026 Results
First Quarter 2026 Highlights
•Achieved quarterly net sales of $464 million, a 10% GAAP increase and a 3% organic increase year-over-year
•Generated GAAP operating income of $93 million, or 20.1% of sales, and adjusted operating income of $101 million, or 21.8% of sales
•Recorded GAAP net income of $71 million, or $1.83 per diluted share, and adjusted earnings of $77 million, or $1.99 per diluted share
•Returned a total of $71 million to shareholders via $50 million of share repurchases and $21 million of dividends; authorized a new $500 million share repurchase program
•Maintain a strong balance sheet and ample liquidity to support Accelerate strategy
PITTSBURGH, May 4, 2026 - Global safety equipment and solutions provider MSA Safety Incorporated (NYSE: MSA) today reported financial results for the first quarter of 2026.
"Our first quarter performance reflects the resilience of our diverse business, and a solid start to the year," said Steve Blanco, President and CEO of MSA Safety. "We continued to execute our Accelerate strategy and leverage the MSA Business System (MBS) to drive profitable growth, while navigating the current macroeconomic and geopolitical landscape. Strong operational execution in our Americas segment drove our sales and margin performance, more than offsetting short-term challenges in Europe and the Middle East, which are part of our International segment. The team remains focused on achieving our strategic commitments, serving our customers, and delivering on our mission."
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Financial Highlights | |||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| (In millions, except per share data and percentages) | 2026 | 2025 | % Change (a) | ||||||||||||||
| Net Sales | $ | 463.6 | $ | 421.3 | 10 | % | |||||||||||
| GAAP | |||||||||||||||||
| Operating income | 93.0 | 77.8 | 20 | % | |||||||||||||
| % of Net sales | 20.1 | % | 18.5 | % | 160 bps | ||||||||||||
| Net income | 71.3 | 59.6 | 20 | % | |||||||||||||
| Diluted EPS | 1.83 | 1.51 | 21 | % | |||||||||||||
| Non-GAAP | |||||||||||||||||
| Adjusted EBITDA | $ | 115.9 | $ | 101.5 | 14 | % | |||||||||||
| % of Net sales | 25.0 | % | 24.1 | % | 90 bps | ||||||||||||
| Adjusted operating income | 101.1 | 87.5 | 16 | % | |||||||||||||
| % of Net sales | 21.8 | % | 20.8 | % | 100 bps | ||||||||||||
| Adjusted earnings | 77.5 | 66.4 | 17 | % | |||||||||||||
| Adjusted diluted EPS | 1.99 | 1.68 | 18 | % | |||||||||||||
| Free cash flow | 65.1 | 51.0 | 28 | % | |||||||||||||
| Free cash flow conversion | 91 | % | 86 | % | |||||||||||||
| Americas Segment | |||||||||||||||||
| Net sales | $ | 325.2 | $ | 293.2 | 11 | % | |||||||||||
| GAAP operating income | 95.8 | 76.5 | 25 | % | |||||||||||||
| % of Net sales | 29.4 | % | 26.1 | % | 330 bps | ||||||||||||
| Adjusted operating income | 98.1 | 78.7 | 25 | % | |||||||||||||
| % of Net sales | 30.2 | % | 26.8 | % | 340 bps | ||||||||||||
| International Segment | |||||||||||||||||
| Net sales | $ | 138.4 | $ | 128.2 | 8 | % | |||||||||||
| GAAP operating income | 12.5 | 17.3 | (28) | % | |||||||||||||
| % of Net sales | 9.0 | % | 13.5 | % | (450) bps | ||||||||||||
| Adjusted operating income | 14.5 | 18.7 | (22) | % | |||||||||||||
| % of Net sales | 10.5 | % | 14.6 | % | (410) bps | ||||||||||||
(a) Percentage change may not calculate exactly due to rounding. | |||||||||||||||||
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"The team delivered solid organic growth and profit pull-through in the first quarter, resulting in 18% adjusted EPS growth," stated Julie Beck, MSA Safety's Chief Financial Officer. "Our gross margin expansion reflects MBS-driven execution. The balance sheet and free cash flow generation remain strong, and we returned cash to shareholders. We announced a new $500 million share repurchase authorization in February and maintain an active M&A pipeline. Given the solid start to the year and our healthy order book, we are maintaining our mid-single-digit 2026 organic sales growth outlook. We also recognize the potential challenges posed by the volatile geopolitical and macroeconomic operating environment," Ms. Beck added.
The company returned a total of $71 million to shareholders via dividends of $21 million and executing $50 million of share repurchases, while investing $11 million in capital expenditures. MSA maintains a strong liquidity position with net debt at the end of the first quarter of $433 million. The company’s net leverage ratio was 0.9x at March 31, 2026. MSA's strong financial profile, including ample liquidity of $1.2 billion, continues to provide optionality around execution of strategic growth initiatives, including acquisitions.
Conference Call
MSA Safety will host a conference call on Tuesday, May 5, 2026, at 10:00 a.m. Eastern Time to discuss its first quarter 2026 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.
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MSA Safety Incorporated
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share amounts)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net sales | $ | 463,632 | $ | 421,340 | |||||||
| Cost of products sold | 244,051 | 227,945 | |||||||||
| Gross profit | 219,581 | 193,395 | |||||||||
| Selling, general and administrative | 107,684 | 93,965 | |||||||||
| Research and development | 16,355 | 15,669 | |||||||||
| Restructuring charges | 2,329 | 1,924 | |||||||||
| Currency exchange losses, net | 199 | 4,076 | |||||||||
| Operating income | 93,014 | 77,761 | |||||||||
| Interest expense | 7,703 | 6,835 | |||||||||
| Other income, net | (7,681) | (7,023) | |||||||||
| Total other expense (income), net | 22 | (188) | |||||||||
| Income before income taxes | 92,992 | 77,949 | |||||||||
| Provision for income taxes | 21,723 | 18,344 | |||||||||
| Net income | $ | 71,269 | $ | 59,605 | |||||||
| Earnings per share attributable to common shareholders: | |||||||||||
| Basic | $ | 1.83 | $ | 1.51 | |||||||
| Diluted | $ | 1.83 | $ | 1.51 | |||||||
| Basic shares outstanding | 38,859 | 39,334 | |||||||||
| Diluted shares outstanding | 38,986 | 39,501 | |||||||||
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MSA Safety Incorporated
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
| March 31, 2026 | December 31, 2025 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 180,158 | $ | 165,067 | |||||||
Trade receivables, net | 325,011 | 306,452 | |||||||||
Inventories | 352,314 | 343,035 | |||||||||
Other current assets | 34,189 | 54,738 | |||||||||
Total current assets | 891,672 | 869,292 | |||||||||
| Property, plant and equipment, net | 278,056 | 283,063 | |||||||||
| Prepaid pension cost | 285,283 | 279,450 | |||||||||
| Goodwill | 727,440 | 731,592 | |||||||||
| Intangible assets, net | 291,991 | 299,127 | |||||||||
| Other noncurrent assets | 89,544 | 91,850 | |||||||||
Total assets | $ | 2,563,986 | $ | 2,554,374 | |||||||
| Liabilities and shareholders' equity | |||||||||||
Notes payable and current portion of long-term debt, net | $ | 8,074 | $ | 8,225 | |||||||
Accounts payable | 118,348 | 110,775 | |||||||||
Other current liabilities | 154,845 | 170,211 | |||||||||
Total current liabilities | 281,267 | 289,211 | |||||||||
| Long-term debt, net | 605,075 | 572,709 | |||||||||
| Pensions and other employee benefits | 141,788 | 143,834 | |||||||||
| Deferred tax liabilities | 127,000 | 127,540 | |||||||||
| Other noncurrent liabilities | 53,496 | 54,068 | |||||||||
| Total shareholders' equity | 1,355,360 | 1,367,012 | |||||||||
Total liabilities and shareholders' equity | $ | 2,563,986 | $ | 2,554,374 | |||||||
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MSA Safety Incorporated
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 71,269 | $ | 59,605 | |||||||
| Depreciation and amortization | 18,352 | 16,251 | |||||||||
| Change in working capital and other operating | (13,934) | (14,023) | |||||||||
Cash flow from operating activities | 75,687 | 61,833 | |||||||||
| Capital expenditures | (10,587) | (10,784) | |||||||||
| Property disposals and other investing | 34 | 18 | |||||||||
Cash flow used in investing activities | (10,553) | (10,766) | |||||||||
| Change in debt | 33,760 | (7,466) | |||||||||
| Cash dividends paid | (20,561) | (20,033) | |||||||||
| Company stock purchases under repurchase program | (50,447) | (9,996) | |||||||||
| Other financing | (9,975) | (8,117) | |||||||||
Cash flow used in financing activities | (47,223) | (45,612) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,568) | 743 | |||||||||
| Increase in cash, cash equivalents and restricted cash | $ | 15,343 | $ | 6,198 | |||||||
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MSA Safety Incorporated
Sales by Product Group (Unaudited)
(In thousands, except percentages)
| Three Months Ended March 31, 2026 | Consolidated | Americas | International | |||||||||||||||||||||||||||||||||||
| Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||||||||||||||||||||||||||||
Detection(a) | $ | 180,842 | 39% | $ | 123,975 | 38% | $ | 56,867 | 41% | |||||||||||||||||||||||||||||
Fire Service(b) | 159,271 | 34% | 116,092 | 36% | 43,179 | 31% | ||||||||||||||||||||||||||||||||
Industrial PPE and Other(c) | 123,519 | 27% | 85,171 | 26% | 38,348 | 28% | ||||||||||||||||||||||||||||||||
| Total | $ | 463,632 | 100% | $ | 325,238 | 100% | $ | 138,394 | 100% | |||||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | Consolidated | Americas | International | |||||||||||||||||||||||||||||||||||
| Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||||||||||||||||||||||||||||
Detection(a) | $ | 161,070 | 38% | $ | 109,891 | 37% | $ | 51,179 | 40% | |||||||||||||||||||||||||||||
Fire Service(b) | 150,616 | 36% | 105,907 | 36% | 44,709 | 35% | ||||||||||||||||||||||||||||||||
Industrial PPE and Other(c) | 109,654 | 26% | 77,362 | 27% | 32,292 | 25% | ||||||||||||||||||||||||||||||||
| Total | $ | 421,340 | 100% | $ | 293,160 | 100% | $ | 128,180 | 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 (Americas and International). (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. | ||||||||||||||||||||||||||||||||||||||
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MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Organic sales change (Unaudited)
Consolidated
| Three Months Ended March 31, 2026 | |||||||||||||||||
Detection(a) | Fire Service(b) | Industrial PPE and Other(c) | Net Sales | ||||||||||||||
| GAAP reported sales change | 12% | 6% | 13% | 10% | |||||||||||||
| Currency translation effects | (3)% | (3)% | (6)% | (4)% | |||||||||||||
| Less: Acquisitions | (9)% | —% | —% | (3)% | |||||||||||||
| Organic sales change | —% | 3% | 7% | 3% | |||||||||||||
Americas Segment
| Three Months Ended March 31, 2026 | |||||||||||||||||
Detection(a) | Fire Service(b) | Industrial PPE and Other(c) | Net Sales | ||||||||||||||
| GAAP reported sales change | 13% | 10% | 10% | 11% | |||||||||||||
| Currency translation effects | (1)% | (1)% | (4)% | (2)% | |||||||||||||
| Less: Acquisitions | (5)% | —% | —% | (2)% | |||||||||||||
| Organic sales change | 7% | 9% | 6% | 7% | |||||||||||||
International Segment
| Three Months Ended March 31, 2026 | |||||||||||||||||
Detection(a) | Fire Service(b) | Industrial PPE and Other(c) | Net Sales | ||||||||||||||
| GAAP reported sales change | 11% | (3)% | 19% | 8% | |||||||||||||
| Currency translation effects | (6)% | (8)% | (9)% | (7)% | |||||||||||||
| Less: Acquisitions | (18)% | —% | —% | (8)% | |||||||||||||
| Organic sales change | (13)% | (11)% | 10% | (7)% | |||||||||||||
(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 (Americas and International).
(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.
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MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Adjusted operating income (Unaudited)
Adjusted EBITDA (Unaudited)
(In thousands)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Adjusted EBITDA from reportable segments | $ | 127,399 | $ | 111,137 | |||||||
| Less: | |||||||||||
| Depreciation and amortization | 14,742 | 13,736 | |||||||||
| Adjusted operating income from reportable segments | 112,657 | 97,401 | |||||||||
| Less: | |||||||||||
| Corporate expenses | 11,536 | 9,899 | |||||||||
| Adjusted operating income | 101,121 | 87,502 | |||||||||
| Less: | |||||||||||
Currency exchange losses, net | 199 | 4,076 | |||||||||
Restructuring charges | 2,329 | 1,924 | |||||||||
| Acquisition-related amortization | 3,392 | 2,286 | |||||||||
Transaction costs (a) | 2,187 | 1,455 | |||||||||
| GAAP operating income | 93,014 | 77,761 | |||||||||
| Less: | |||||||||||
| Interest expense | 7,703 | 6,835 | |||||||||
| Other income, net | (7,681) | (7,023) | |||||||||
Income before income taxes | 92,992 | 77,949 | |||||||||
Provision for income taxes | 21,723 | 18,344 | |||||||||
Net income | $ | 71,269 | $ | 59,605 | |||||||
(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 unaudited Condensed Consolidated Statements of Income. | |||||||||||
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MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Adjusted earnings (Unaudited)
Adjusted diluted earnings per share (Unaudited)
(In thousands, except per share amounts and percentages)
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
Net income | $ | 71,269 | $ | 59,605 | 20% | ||||||||||||
| Currency exchange losses, net | 199 | 4,076 | |||||||||||||||
Restructuring charges | 2,329 | 1,924 | |||||||||||||||
| Acquisition-related amortization | 3,392 | 2,286 | |||||||||||||||
Transaction costs (a) | 2,187 | 1,455 | |||||||||||||||
Asset related losses | 160 | 8 | |||||||||||||||
Income tax expense on adjustments | (2,084) | (2,916) | |||||||||||||||
Adjusted earnings | $ | 77,452 | $ | 66,438 | 17% | ||||||||||||
Adjusted diluted earnings per share | $ | 1.99 | $ | 1.68 | 18% | ||||||||||||
| Diluted shares outstanding | 38,986 | 39,501 | |||||||||||||||
(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 unaudited Condensed Consolidated Statements of Income. | |||||||||||||||||
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.
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MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Debt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited)
(In thousands)
| Twelve Months Ended March 31, | ||||||||
| 2026 | ||||||||
| Operating income | $ | 387,071 | ||||||
| Depreciation and amortization | 59,319 | |||||||
| Currency exchange losses, net | 11,924 | |||||||
| Restructuring charges | 4,302 | |||||||
| Acquisition-related amortization | 13,721 | |||||||
Transaction costs (a) | 11,199 | |||||||
| Adjusted EBITDA | $ | 487,536 | ||||||
| Total end-of-period debt | 613,149 | |||||||
| Debt to adjusted EBITDA | 1.3 | |||||||
| Total end-of-period debt | $ | 613,149 | ||||||
| Total end-of-period cash and cash equivalents | 180,158 | |||||||
| Net debt | $ | 432,991 | ||||||
| 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 unaudited Condensed Consolidated Statements of Income. | ||||||||
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.
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About MSA Safety:
MSA Safety Incorporated (NYSE: MSA) is the global leader in advanced industrial safety technology products 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 $1.9 billion, MSA Safety is headquartered in Cranberry Township, Pennsylvania and employs a team of approximately 5,300 associates across its more than 40 international locations. For more information, please visit www.MSASafety.com.
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.
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The presentation of these non-GAAP financial measures does not comply with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. When non-GAAP financial measures are disclosed, the Securities and Exchange Commission's Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. For an explanation of these measures, with a reconciliation to the most directly comparable GAAP financial measure, see the Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures in the financial tables section above.
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FAQ
How did MSA Safety (MSA) perform financially in Q1 2026?
MSA Safety delivered strong Q1 2026 results, with net sales of $463.6 million, up 10% year-over-year. GAAP net income reached $71.3 million, and diluted EPS was $1.83. Adjusted diluted EPS increased 18% to $1.99, indicating improved profitability.
What were MSA Safety’s key profitability metrics for Q1 2026?
In Q1 2026, MSA Safety reported $93.0 million in GAAP operating income, a 20% increase. Operating margin was 20.1% of sales. Adjusted operating income reached $101.1 million, with an adjusted operating margin of 21.8% and adjusted EBITDA of $115.9 million, or 25.0% of sales.
What is MSA Safety’s leverage and liquidity position after Q1 2026?
As of March 31, 2026, MSA Safety reported net debt of $433.0 million and a net debt to adjusted EBITDA ratio of 0.9x. The company highlighted total liquidity of $1.2 billion, supporting its strategic initiatives, including acquisitions and continued shareholder returns.
How did MSA Safety’s Americas and International segments perform in Q1 2026?
In Q1 2026, the Americas segment achieved net sales of $325.2 million, up 11%, with GAAP operating margin improving to 29.4%. The International segment generated net sales of $138.4 million, up 8%, but its GAAP operating margin declined to 9.0%, reflecting regional challenges.
What organic growth did MSA Safety report by product group in Q1 2026?
For Q1 2026, MSA Safety reported consolidated organic sales growth of 3%. Fire Service products grew organically by 3%, Industrial PPE and Other by 7%, while Detection was flat. Organic growth excludes impacts from currency and acquisitions, illustrating underlying demand trends.