Fourth Quarter and Full-Year 2025 Earnings Presentation February 12, 2026 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation 1 Larry De Maria Introduction Purpose-led Company Driven by Our Mission: That men and women may work in safety and that they, their families, and their communities may live in health throughout the world. MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation 3 Non-GAAP Financials To supplement our Consolidated Financial Statements presented in accordan ...

Core Insights - The performance of the company showed a significant divergence between product categories, with a 17% organic growth in detection countered by a 21% organic decline in fire service [1] - Detection growth was driven by the completion of large fixed-detection orders in the Americas and the ongoing adoption of the MSA+ connected ecosystem [1] - The contraction in fire service was linked to external timing dynamics, particularly delays in U.S. Assistance to Firefighters Grants (AFG) and a temporary U.S. government shutdown [1] Operational Highlights - The company achieved record safety performance with zero lost time incidents, emphasizing a strong internal 'culture of safety' as a key operational pillar [1] - The acquisition of M&C TechGroup contributed $15 million in quarterly revenue, successfully integrating into the fixed detection portfolio and expanding the total addressable market [1] - Gross margins remained stable year-over-year, as strategic pricing actions and a favorable product mix helped mitigate the effects of tariffs and inflationary pressures [1]

Core Insights - MSA Safety reported revenue of $510.91 million for the quarter ended December 2025, reflecting a 2.2% increase year-over-year and surpassing the Zacks Consensus Estimate by 0.3% [1] - The company's EPS for the quarter was $2.38, up from $2.25 in the same quarter last year, exceeding the consensus estimate of $2.26 by 5.4% [1] Financial Performance - MSA Safety's revenue growth of 2.2% indicates a stable performance in a competitive market [1] - The company achieved an EPS of $2.38, which is a positive indicator of profitability compared to the previous year [1] Market Comparison - Over the past month, MSA Safety's shares have returned +10.2%, contrasting with a -0.3% change in the Zacks S&P 500 composite, suggesting strong relative performance [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3] Product Category Performance - Net sales in the Fire Service category were $174.9 million, below the average estimate of $191.89 million [4] - Industrial PPE and Other category reported net sales of $118.72 million, also below the average estimate of $123.18 million [4] - Detection category net sales reached $217.3 million, exceeding the average estimate of $195.87 million [4]

分组1 - MSA Safety reported quarterly earnings of $2.38 per share, exceeding the Zacks Consensus Estimate of $2.26 per share, and showing an increase from $2.25 per share a year ago, resulting in an earnings surprise of +5.40% [1] - The company achieved revenues of $510.91 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.30% and increasing from $499.7 million year-over-year [2] - MSA Safety has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 21.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $1.90 on revenues of $461.38 million, while the estimate for the current fiscal year is $8.62 on revenues of $1.98 billion [7] - The Zacks Industry Rank places the Security and Safety Services sector in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Insights - MSA Safety reported solid financial performance for the fourth quarter and full year of 2025, despite challenges in organic sales and margins [1] - The company achieved net sales of $511 million in Q4 2025, a 2% increase year-over-year, and $1.9 billion for the full year, a 4% increase [1][2] - MSA Safety's adjusted earnings for Q4 were $93 million, or $2.38 per diluted share, and for the full year, adjusted earnings were $312 million, or $7.93 per diluted share [1][4] Financial Highlights - Q4 2025 GAAP net income was $87 million, or $2.21 per diluted share, with adjusted operating income of $122 million, representing 23.9% of net sales [1][2] - Full-year 2025 GAAP earnings were $279 million, or $7.09 per diluted share, with adjusted operating income of $415 million, or 22.1% of net sales [1][4] - Free cash flow for Q4 was $106 million, a 13% increase year-over-year, and for the full year, it was $295 million, a 22% increase [1][2] Segment Performance - The Americas segment reported Q4 net sales of $335 million, a 1% decrease year-over-year, while the International segment saw an 8% increase to $176 million [1][3] - For the full year, the Americas segment achieved $1.26 billion in net sales, a 1% increase, while the International segment reached $613 million, a 9% increase [1][3] Capital Allocation and Strategy - MSA Safety returned a total of $162 million to shareholders in 2025 through $80 million in share repurchases and $82 million in dividends [1][2] - The company acquired M&C TechGroup for $189 million and invested $68 million in capital expenditures [1][2] - MSA Safety maintains a strong balance sheet with a net debt of $416 million and a net leverage ratio of 0.9x as of December 31, 2025 [1][2] 2026 Outlook - The company anticipates mid-single digit organic sales growth for 2026, supported by strategic pricing actions and favorable demand for safety products [1][2] - Potential headwinds include the non-recurrence of large detection orders in Latin America and mixed industrial end market demand globally [1][2]

Financial Performance - Achieved net sales of $511 million in Q4 2025, a 2% GAAP increase but a 3% organic decrease year-over-year due to timing delays in fire service [4] - Full-year 2025 net sales reached $1.9 billion, a 4% GAAP increase and a 1% organic increase year-over-year [4] - Generated GAAP operating income of $372 million for the full year, representing 19.8% of net sales, and adjusted operating income of $415 million, or 22.1% of net sales [4] - Recorded GAAP net income of $279 million for the full year, or $7.09 per diluted share, and adjusted earnings of $312 million, or $7.93 per diluted share [4] - Net income for the three months ended December 31, 2025, was $86,933 thousand, a decrease of 1.2% compared to $87,946 thousand for the same period in 2024 [15] - Total sales for the three months ended December 31, 2025, reached $510,913 thousand, up 2.4% from $499,696 thousand in the same period of 2024 [16] - For the three months ended December 31, 2025, adjusted earnings increased by 5% to $93,371,000 compared to $89,042,000 in 2024 [20] - Adjusted earnings per diluted share for 2025 was $2.38, reflecting a 6% increase from $2.25 in 2024 [20] - Total revenues for 2025 were reported at $1.9 billion, maintaining MSA Safety's position as a leader in advanced safety products [23] Cash Flow and Liquidity - Free cash flow for the full year was $295 million, a 22% increase compared to the previous year [6] - MSA maintains a strong liquidity position with $1.2 billion in available liquidity and a net leverage ratio of 0.9x as of December 31, 2025 [8] - Cash flow from operating activities increased to $122,354 thousand for the three months ended December 31, 2025, compared to $107,908 thousand in the prior year, representing a growth of 13.5% [15] - The company reported a cash dividend payment of $20,706 thousand for the three months ended December 31, 2025, compared to $20,089 thousand in the same period of 2024 [15] Segment Performance - The Americas segment reported net sales of $1.262 billion, a 1% increase year-over-year, while the International segment saw a 9% increase to $613 million [6] - The Americas segment reported a GAAP sales change of 29% for Detection products in the three months ended December 31, 2025 [17] - Detection product sales increased by 28% year-over-year for the three months ended December 31, 2025, while Fire Service sales decreased by 19% [17] - Organic sales change for Detection products was 17% for the three months ended December 31, 2025, while Fire Service experienced a decline of 21% [17] Strategic Initiatives - Acquired M&C TechGroup for $189 million and returned a total of $162 million to shareholders through dividends and share repurchases [4] - The company plans to continue investing in organic growth, M&A, and capital returns to shareholders as part of its balanced capital allocation strategy [7] - The company completed an acquisition with a net cash outflow of $1,501 thousand during the three months ended December 31, 2025 [15] Operational Metrics - Adjusted EBITDA for the three months ended December 31, 2025, was $135,999 thousand, slightly up from $134,642 thousand in the same period of 2024 [19] - Capital expenditures for the three months ended December 31, 2025, totaled $16,334 thousand, compared to $14,409 thousand in the prior year, indicating an increase of 13.4% [15] - The company's adjusted EBITDA for the twelve months ended December 31, 2025, was $472,911,000, with a debt to adjusted EBITDA ratio of 1.2 [22] Debt and Financial Adjustments - Net debt as of December 31, 2025, was $415,867,000, resulting in a net debt to adjusted EBITDA ratio of 0.9 [22] - Currency exchange losses for the twelve months ended December 31, 2025, amounted to $15,801,000, impacting overall financial performance [22] - Restructuring charges for the twelve months ended December 31, 2025, totaled $3,897,000, indicating ongoing operational adjustments [22] - Acquisition-related amortization for the twelve months ended December 31, 2025, was $12,615,000, reflecting the company's strategic growth initiatives [22] Company Overview - MSA Safety has been at the forefront of safety innovation since 1914, emphasizing its commitment to protecting workers globally [23] - The company cautions that forward-looking statements regarding future performance may differ materially from actual results due to various risks and uncertainties [24]

Core Insights - Sequoia Strategy achieved a return of 9% in Q4 2025, outperforming the S&P 500 Index which returned 2.7% during the same period [1] - For the full year 2025, Sequoia Strategy delivered a return of 21.9%, compared to 17.9% for the S&P 500 Index [1] - The Strategy focuses on investing in high-quality, fundamentally and financially strong businesses at reasonable prices, covering a wide range of sectors, business styles, and regions [1] Company Highlights - MSA Safety Incorporated (NYSE:MSA) was added to Sequoia Strategy's portfolio in Q4 2025 [2][3] - As of February 6, 2026, MSA Safety's stock closed at $193.07 per share, with a one-month return of 11.17% and a twelve-month increase of 17.03% [2] - MSA Safety has a market capitalization of $7.617 billion [2]

Company Overview - MSA Safety is a provider of advanced safety solutions, focusing on protecting workers and critical infrastructure in high-risk industries, leveraging a century-long legacy and established brands to maintain a strong market position in industrial safety and protection services [4] - The company reported a total revenue of $1.86 billion and a net income of $279.92 million for the trailing twelve months (TTM) [3] Recent Investment Activity - Madison Asset Management disclosed a new position in MSA Safety, acquiring 568,244 shares valued at approximately $91 million, which accounted for 1% of Madison's $8.7 billion assets under management (AUM) [5][6] - This acquisition occurred during the fourth quarter, with Madison previously holding no shares in MSA Safety [5] Stock Performance - MSA Safety's stock has underperformed compared to the S&P 500 index, returning 14.8% over the past year, while the index returned 16.9% [6][8] - The company's third-quarter adjusted sales grew by a modest 3% year over year, and management anticipates a low-single-digit percentage increase in revenue for the year [8] Product and Market Focus - MSA Safety offers a range of safety products, including gas detection systems, breathing apparatus, portable gas detectors, and protective apparel, serving various industries such as oil and gas, fire service, construction, and military [7] - The company generates revenue through the design, manufacturing, and sale of safety equipment and related services, utilizing both direct and indirect sales channels globally [7]

Core Viewpoint - Mineros S.A. is evaluating a potential corporate re-domiciliation or reorganization to better align with its evolving asset base, shareholder profile, and long-term strategic objectives [3][5]. Strategic Review and Structural Considerations - The company is assessing the legal, fiscal, regulatory, and operational implications of a potential reorganization, which may include a statutory merger with a newly incorporated successor entity [2]. - The objective is to support disciplined capital allocation and sustainable shareholder value creation [3]. Special Meeting of Shareholders - A special meeting of shareholders has been convened for April 30, 2026, to consider a proposed merger agreement related to the potential re-domiciliation or reorganization [6]. - The record date for shareholders to participate in the meeting is March 11, 2026 [6]. - The meeting is precautionary and does not indicate a final decision by the Board regarding re-domiciliation or reorganization [5]. Additional Details - If the Board decides to proceed with the re-domiciliation or reorganization, full details will be provided in a management information circular delivered to shareholders prior to the meeting [7]. - Mineros S.A. is a leading gold mining company in Latin America, with operations in Colombia and Nicaragua, and a focus on safety, sustainability, and disciplined capital allocation [8][9].

Core Viewpoint - MSA Safety Incorporated will host its fourth quarter and full-year 2025 earnings conference call on February 12, 2026, at 10:00 a.m. Eastern Time, with a press release detailing financial results to be issued on February 11, 2026, after market close [1][3]. Group 1: Earnings Call Details - The earnings conference call will be accessible via webcast on the company's investor relations website under the "News and Events" section [2]. - A replay of the conference call will be available shortly after the presentation and will remain accessible for 90 days [2]. - Interested parties can join the call by dialing 1-844-854-4415 (toll-free) or 1-412-902-6599 (international) [3]. Group 2: Company Overview - MSA Safety Incorporated is a global leader in advanced safety products and solutions, with a mission focused on safety innovation since 1914 [4]. - The company reported revenues of $1.8 billion in 2024 and employs over 5,000 associates across more than 40 international locations [4].