MSA Safety — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported quarterly net sales of $536.4 million, a 15% GAAP increase and 6% organic increase year-over-year.
• GAAP operating income was $88.2 million (16.4% of sales), down 6% from $94.3 million in the prior year period.
• Adjusted operating income was $114.9 million (21.4% of sales), an 11% increase year-over-year.
• GAAP net income was $58.4 million ($1.51 diluted EPS), a 16% decrease from $69.6 million ($1.77 diluted EPS) in the prior year, primarily due to Autronica acquisition costs.
• Adjusted earnings were $80.6 million ($2.09 diluted EPS), an 8% increase year-over-year.
• Free cash flow for the quarter was $68.2 million, a 32% decrease from $100.5 million in the prior year; free cash flow conversion was 117%.
• For the nine months ended September 30, 2026, net sales were $1,503.4 million (10% increase), GAAP operating income was $293.2 million (14% increase), and GAAP net income was $215.9 million (12% increase).
• Adjusted earnings for the nine-month period were $251.2 million ($6.48 diluted EPS), a 15% increase year-over-year.
• Free cash flow for the nine-month period was $216.0 million, a 14% increase year-over-year.
• Debt to adjusted EBITDA was 2.1x; net debt to adjusted EBITDA was 1.7x as of September 30, 2026.
• Total end-of-period debt was $1,121.2 million; cash and cash equivalents were $187.2 million.

Guidance and Future Outlook:

• Management is maintaining its full-year sales outlook of low-double-digit reported growth.
• Net leverage remains within the company's target range, positioning the company to pursue strategic growth opportunities.

Business Segments and Product Lines:

• Americas Segment: Net sales of $338.2 million (8% increase); adjusted operating income of $96.7 million (9% increase).
• International Segment: Net sales of $198.2 million (28% increase); adjusted operating income of $31.8 million (28% increase).
• Product Groups (Quarterly):
  • Detection sales were $233.9 million (44% of total), up 22% GAAP.
  • Fire Service sales were $173.2 million (32% of total), up 9% GAAP.
  • Industrial PPE and Other sales were $129.3 million (24% of total), up 9% GAAP.
• Strategic Initiatives:
  • Completed the acquisition of Autronica Fire and Security for $563 million, net of cash acquired.
  • Launched the G1 City Edition SCBA.
  • Secured an ALTAIR io 6 order, noted as the largest MSA+ connected safety order to date.
• Organic Sales Growth (Quarterly):
  • Americas: 7% organic growth.
  • International: 2% organic growth.
  • Detection: 2% organic growth; Fire Service: 9% organic growth; Industrial PPE and Other: 7% organic growth.

Market and Competitive Landscape:

• The company continues to advance its "Accelerate" strategy to strengthen its safety technology portfolio and reinforce market leadership.
• MSA+ connected safety solutions are showing momentum with significant order activity.

Risks and Challenges:

• GAAP net income decreased due to one-time Autronica acquisition costs.
• Transaction and digital transformation costs were $14.97 million for the quarter and $18.83 million for the nine-month period.
• Restructuring charges were $1.78 million for the quarter and $6.32 million for the nine-month period.
• Currency exchange losses were $1.88 million for the quarter and $3.97 million for the nine-month period.
• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations.

Management Commentary and Tone:

• Steve Blanco, President and CEO, stated the team advanced the "Accelerate" strategy, delivering 15% sales growth and executing strategic objectives including the Autronica acquisition and product launches.
• Julie Beck, CFO, noted that adjusted earnings per share increased by 8% and highlighted strong free cash flow conversion.
• Management emphasized a disciplined capital allocation framework that enabled the Autronica acquisition and meaningful shareholder returns via dividends and share repurchases.

Other Key Points:

• Acquisition: Closed the acquisition of Autronica Fire and Security for $563 million (net of cash acquired).
• Shareholder Returns: Executed share repurchases of $12.7 million in the quarter and $88.8 million for the nine-month period; paid cash dividends of $20.8 million in the quarter and $62.2 million for the nine-month period.
• Conference Call: Scheduled for November 3, 2026, at 10:00 a.m. Eastern Time.
• Balance Sheet: Total assets increased to $3,278.3 million from $2,554.4 million at December 31, 2025, driven largely by goodwill ($1,044.1 million) and intangible assets ($558.6 million) resulting from the Autronica acquisition.
• Long-Term EBITDA: Pro forma Adjusted EBITDA includes an estimated $24 million contribution from Autronica for the nine months preceding ownership.