Investors might want to bet on MSA Safety (MSA) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a ch ...

PITTSBURGH, April 15, 2025 /PRNewswire/ -- MSA Safety Incorporated (NYSE: MSA), a global leader in the development of advanced safety products and solutions that protect people and facility infrastructures, today announced that it will host the company's first quarter 2025 earnings conference call on Wednesday, April 30, 2025, at 10:00 a.m. Eastern Time.The call and an accompanying slide presentation will be webcast at http://investors.msasafety.com/ under the "News and Events" tab, subheading "Events & Pre ...

MSA Safety Incorporated (MSA) shares ended the last trading session 8.1% higher at $143.57. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.9% loss over the past four weeks.MSA Safety’s rally is largely driven by optimism over its Americas segment, arising from strength across detection, fire service and industrial PPE businesses. Solid product offerings, innovation capabilities and operational initiatives bode ...

Company Also Highlights Continuous Innovation with new Globe Turnout Jacket Announced at FDIC 2025 and building on 10 years of continuous innovation, the MSA® G1™ SCBA XR Edition is the latest evolution of the G1 SCBA. It features enhancements to the breathing air regulator and to various soft goods, including the straps, lumbar pad, and emergency and quick-fill pouches. Announced at FDIC 2025 and building on 10 years of continuous innovation, the MSA® G1™ SCBA XR Edition is the latest evolution of the G1 S ...

Core Viewpoint - MSA Safety Incorporated has announced the resignation of its Chief Financial Officer, Lee B. McChesney, effective March 21, 2025, as he transitions to a similar role at another public company [1]. Group 1: Leadership Changes - The company has initiated a comprehensive search for a new CFO following McChesney's resignation [2]. - Elyse L. Brody, the Executive Director of Financial Planning and Analysis and Strategy, has been appointed as the interim CFO [2]. Group 2: Contributions and Impact - Steve Blanco, President and CEO of MSA Safety, expressed gratitude for McChesney's contributions, highlighting his advocacy for the MSA Business System and efforts in continuous improvement within the Finance organization [3]. Group 3: Company Overview - MSA Safety is a global leader in advanced safety products, technologies, and solutions, with 2024 revenues reported at $1.8 billion [4]. - The company has been focused on safety innovation since 1914 and operates with over 5,000 employees across more than 40 international locations [4].

Financial Performance - Consolidated net sales for the year ended December 31, 2024, were $1.81 billion, an increase of $20.4 million or 1.1% from $1.79 billion in 2023[138]. - Net sales for the Americas segment were $1.25 billion, an increase of $11.0 million or 0.9% compared to $1.24 billion in 2023, with organic sales growth of 1.6%[140]. - Net sales for the International segment were $561.5 million, an increase of $9.4 million or 1.7% compared to $552.1 million in 2023, with organic sales growth of 1.5%[141]. - The company reported a GAAP organic sales change of 1.5% for consolidated sales in 2024 compared to 2023[139]. - Gross profit for the year ended December 31, 2024, was $860.4 million, an increase of $8.3 million, or 1.0%, compared to $852.1 million for 2023, with a gross profit margin of 47.6%[144]. - Net income for the year ended December 31, 2024, was $285.0 million, or $7.21 per diluted share, compared to $58.6 million, or $1.48 per diluted share, for 2023[164]. - Total adjusted EBITDA for 2024 was $469.4 million, an increase from $449.2 million in 2023[160]. - The effective tax rate for 2024 was 24.0%, significantly lower than 71.6% for 2023, primarily due to the prior year divestiture of MSA LLC[162]. Market Position and Products - Core products accounted for approximately 92% of sales in 2024 and 91% in 2023, highlighting the company's strong market position in safety products[17]. - The MSA+™ solution, which combines hardware, software, and services, aims to simplify safety operations and generate recurring revenue[12]. - MSA's V-Series fall protection equipment has launched over 50 new products in recent years, enhancing its portfolio in fall protection[22]. - The primary breathing apparatus product, the MSA G1 SCBA, continues to evolve with new hardware and software upgrades to meet customer needs[18]. - MSA's fixed gas detection systems generate a meaningful portion of overall revenue from recurring business, including replacement components and related services[20]. - The company maintains a strong competitive position through its high-quality, innovative offerings and brand recognition in the safety products market[30]. Research and Development - The company has dedicated significant resources to research and development, enabling the introduction of innovative safety products often first to market[13]. - The company operates several research and development facilities globally, including in the United States, Germany, France, China, and South Africa[31]. - Research and development expense was $66.5 million for 2024, a decrease of $1.5 million, or 2.2%, compared to $68.0 million for 2023, accounting for 3.7% of net sales[147]. Operational Efficiency and Management - MSA's commitment to the MSA Business System (MBS) has driven customer satisfaction and profitable growth, improving operating results[14]. - The MSA Business System (MBS) is utilized to enhance operational efficiency and customer satisfaction, contributing to profitable growth[136]. - MSA is implementing a more efficient enterprise resource planning system across its International Segment to improve productivity and reduce complexity[60]. Workforce and Diversity - As of December 31, 2024, the company employed approximately 5,200 people globally, with 20% covered by collective bargaining agreements[36]. - Approximately 55% of the U.S. workforce self-identifies as diverse, including women who comprise about 40% of the U.S. workforce[40]. Environmental and Regulatory Risks - The company is subject to various environmental laws, and noncompliance could have a material adverse effect on its financial condition[55]. - The company anticipates increasing investor expectations and regulatory requirements related to environmental, social, and governance (ESG) activities[56]. - MSA's operations emit greenhouse gases, and future regulations limiting emissions could increase costs and impact product demand[62]. - The company faces risks from climate regulations that could adversely affect operations and financial results due to potential penalties for non-compliance[61]. Financial Management and Debt - The company has $206.3 million of variable rate borrowings, and a 50 basis point increase in interest rates could result in an additional $1.0 million in interest expense[96]. - The company’s debt agreements require compliance with restrictive covenants, and failure to comply could result in default and increased borrowing costs[95]. - The company expects total interest expense for 2025 to be in the range of $24 million to $27 million[179]. Challenges and Market Conditions - Economic uncertainty in regions like Asia, Latin America, and Europe may lead to declines in revenue and cash flow due to reduced orders and payment delays[64]. - The competitive landscape in the safety products market is intense, with competitors having greater resources, which could adversely affect MSA's market position[68]. - The company faces challenges due to a tight labor market, which may lead to increased costs such as overtime and wages[82]. - Volatility in the energy market could negatively impact MSA's business and consolidated results of operations[65]. - Pandemics or disease outbreaks may disrupt global supply chains and manufacturing operations, adversely affecting demand and financial performance[66]. Acquisitions and Divestitures - The company divested Mine Safety Appliances Company, LLC, which holds legacy product liability claims, to mitigate risks associated with those claims[51]. - The company divested Mine Safety Appliances Company, LLC for $341.2 million in cash, derecognizing all related product liability reserves[129]. - The company may pursue acquisitions, but failure to integrate them successfully could result in material adverse effects on financial results[70]. Currency and Foreign Operations - The company has significant exposure to currency exchange rate fluctuations, which could adversely affect its results of operations and financial condition[86]. - The company is subject to risks associated with international operations, including trade policy changes and regulatory requirements[85]. - A hypothetical 10% strengthening or weakening of the U.S. dollar would increase or decrease reported sales by approximately $71.6 million, or 4.0%, and net income by $10.6 million, or 3.7% for the year ended December 31, 2024[195]. Cybersecurity - The company has implemented a cybersecurity risk management program, including employee training and third-party assessments[99]. - The company has not experienced any known material breaches related to cyber-attacks to date, but acknowledges the potential risks[103].

Financial Data and Key Metrics Changes - Fourth quarter sales were $500 million, an increase of 1% on a reported basis and 2% organic over the prior year [24] - GAAP net income in the quarter totaled $88 million, or $2.22 per diluted share, with adjusted diluted earnings per share at $2.25, up 9% over the prior year [28] - Full-year net sales growth finished at $1.8 billion, up 1% reported and 2% organic compared to last year [32] - Adjusted diluted earnings per share for the full year were $7.70, up 10% over the prior year [35] Business Line Data and Key Metrics Changes - Sales in fire service were up high single digits year over year, primarily due to double-digit growth in SCBA [14] - Detection sales were down low single digits year over year, with a contraction in Fixed Gas and Flame Detection [14] - Industrial PPE sales were down mid-single digits for the year, with low single-digit growth in industrial head protection [15] Market Data and Key Metrics Changes - Order pace remained solid in the fourth quarter, up 14% year over year, with second-half orders up 10% versus the same prior year period [25] - Currency translation was a 1% headwind to overall growth in the fourth quarter [24] - The Americas segment saw sales increase 1% year over year, while the international segment's growth was flat year over year [30] Company Strategy and Development Direction - The company introduced its strategy called "Accelerate" to deliver long-term profitable growth and 2028 financial targets [16] - Focus on innovation and new product development, including the launch of the Cairns 1836 fire helmet and the next generation G1 SCBA [17] - Continued emphasis on customer solutions and recurring revenue through the MSA Plus Connected Worker platform [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, expecting low single-digit organic sales growth [41] - The operating environment is expected to remain dynamic with uncertain macroeconomic and geopolitical conditions [40] - Management noted that while there may be deferred orders due to the upcoming NFPA standard change, the fire service business remains resilient [60] Other Important Information - Free cash flow in the fourth quarter was $93 million, representing a conversion rate of 105% [33] - The company ended the year with net debt of $343 million and significant liquidity [36] - The company remains disciplined in its approach to M&A and continues to evaluate inorganic growth opportunities [22] Q&A Session Summary Question: Can you help us size the cadence as we move through the quarter and into January? - Management noted that the order pace has been solid, especially in the detection business, despite a slower December [56] Question: Do you sense any deferred ordering anticipation of the new product launches due to the NFPA standard change? - Management acknowledged that while the fire service business is resilient, there may be customers who choose to wait for the new standard [60] Question: How does the Americas margin set you up for 2025? - Management targets 30 to 50 basis points of margin improvement each year, but noted that 2025 may be more challenging due to FX pressures [70] Question: Can you discuss product innovation initiatives for 2025 and beyond? - Management emphasized the importance of innovation and customer feedback in developing new products, with plans for enhancements in both fire service and detection segments [86]

Core Insights - MSA Safety reported quarterly earnings of $2.25 per share, exceeding the Zacks Consensus Estimate of $2.22 per share, and showing an increase from $2.06 per share a year ago, resulting in an earnings surprise of 1.35% [1] - The company posted revenues of $499.7 million for the quarter ended December 2024, which was 3.52% below the Zacks Consensus Estimate, but an increase from $495.36 million year-over-year [2] - MSA Safety has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] Earnings Outlook - The future performance of MSA Safety's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.71 on revenues of $421.6 million, and for the current fiscal year, it is $7.99 on revenues of $1.86 billion [7] Industry Context - The Security and Safety Services industry, to which MSA Safety belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - Achieved net sales of $500 million in Q4 2024, a 1% GAAP increase and 2% organic increase year-over-year[5] - Generated GAAP operating income of $118 million in Q4 2024, representing 23.5% of sales, and adjusted operating income of $120 million, or 24.0% of sales[5] - Recorded GAAP net income of $88 million in Q4 2024, or $2.22 per diluted share, and adjusted earnings of $89 million, or $2.25 per diluted share[5] - Full year 2024 net sales reached $1.8 billion, a 1% GAAP increase and 2% organic increase year-over-year[5] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $469,431 thousand, compared to $449,243 thousand in 2023, reflecting a growth of 4.5%[29] - Adjusted earnings per diluted share for the three months ended December 31, 2024, was $2.25, a 9% increase from $2.06 in the same period of 2023[32] Shareholder Returns - MSA Safety returned $79 million to shareholders through dividends and executed $30 million in share repurchases in 2024[11] - Cash dividends paid for the twelve months ended December 31, 2024, were $78,759 thousand, compared to $73,488 thousand in 2023[21] Liquidity and Debt - The company maintained a strong liquidity position with net debt of $343 million and a net leverage ratio of 0.7x at the end of Q4 2024[11] - The company’s net debt stood at $343.453 million, resulting in a net debt to adjusted EBITDA ratio of 0.7[35] - Total end-of-period debt was reported at $508.013 million, with cash and cash equivalents amounting to $164.560 million[35] Cash Flow and Capital Expenditures - Free cash flow for the full year 2024 was $242 million, a decrease of 39% compared to the previous year[7] - Cash flow from operating activities for the twelve months ended December 31, 2024, was $296,428 thousand, significantly higher than $92,857 thousand in 2023[21] - Capital expenditures for the twelve months ended December 31, 2024, totaled $54,223 thousand, up from $42,764 thousand in 2023[21] Segment Performance - The Americas segment achieved net sales of $337 million in Q4 2024, a 1% increase year-over-year[7] - The International segment recorded net sales of $163 million in Q4 2024, remaining flat compared to the previous year[7] - The Americas segment reported a GAAP sales change of 1% for the twelve months ended December 31, 2024, with an organic sales change of 2%[25] Restructuring and Costs - MSA Safety incurred restructuring charges of $6.397 million and transaction costs of $0.886 million related to acquisitions and divestitures[35] Company Overview and Future Outlook - MSA Safety reported 2024 revenues of $1.8 billion, maintaining its position as a global leader in advanced safety products and technologies[37] - MSA Safety emphasizes the importance of non-GAAP financial measures for assessing liquidity and balance sheet strength[35] - The company has been at the forefront of safety innovation since 1914, focusing on protecting workers and facility infrastructure[37] - MSA Safety employs over 5,000 associates across more than 40 international locations[37] - Forward-looking statements indicate potential future performance but are subject to various risks and uncertainties[38]

Core Insights - MSA Safety Incorporated reported solid financial performance for 2024, achieving double-digit EPS growth and operating margin expansion despite lower-than-expected sales growth [3][5][7] - The company faced challenges including industrial end market weakness, softer U.S. fire service demand, and foreign exchange impacts [3][5][11] - MSA Safety is committed to its 2028 targets through the execution of its Accelerate corporate strategy [3] Financial Highlights - For Q4 2024, net sales reached $500 million, a 1% increase year-over-year, with GAAP operating income of $118 million, representing 23.5% of sales [4][5] - Full-year 2024 net sales totaled $1.8 billion, also a 1% increase year-over-year, with GAAP operating income of $389 million, or 21.5% of sales [4][5] - The company recorded a net income of $88 million for Q4 2024, translating to $2.22 per diluted share, and a net income of $285 million for the full year, or $7.21 per diluted share [4][5] Capital Allocation and Financial Position - MSA Safety invested $14 million in capital expenditures in Q4 2024 and repaid $43 million of debt, returning $20 million to shareholders through dividends and repurchasing $10 million of common stock [5][8] - For the full year, the company invested $54 million in capital expenditures, repaid $94 million of debt, and returned $79 million to shareholders [5][8] - The company maintains a strong liquidity position with a net leverage ratio of 0.7x and net debt of $343 million at the end of Q4 2024 [8][26] Market Outlook - MSA Safety anticipates low-single digit organic sales growth for 2025, supported by diverse end market demand and stable funding for fire services [9][11] - The company is prepared to navigate macroeconomic and geopolitical uncertainties while leveraging its operational strengths [7][11]