MSA Safety Announces First Quarter 2026 Results
Rhea-AI Summary
MSA Safety (NYSE: MSA) reported Q1 2026 results: net sales $463.6M (+10% GAAP, +3% organic), GAAP operating income $93.0M (20.1% of sales), and GAAP net income $71.3M ($1.83 diluted EPS). Adjusted operating income was $101.1M (21.8% of sales) and adjusted EPS was $1.99.
The company returned $71M to shareholders, authorized a new $500M repurchase program, reported free cash flow $65.1M, net debt $433M and net leverage 0.9x at March 31, 2026.
AI-generated analysis. Not financial advice.
Positive
- Net sales of $463.6M, up 10% GAAP year-over-year
- Adjusted operating income of $101.1M, 21.8% of sales
- Adjusted diluted EPS $1.99, up 18% year-over-year
- Returned $71M to shareholders and authorized $500M buyback
- Free cash flow $65.1M and net leverage 0.9x
Negative
- International operating income down 28% to $12.5M (9.0% of sales)
- Currency translation reduced consolidated sales by ~4%
- Acquisitions reduced reported organic detection growth by about 9% impact
News Market Reaction – MSA
On the day this news was published, MSA gained 2.18%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.1% during that session. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $146M to the company's valuation, bringing the market cap to $6.82B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
MSA dipped 0.36% while key peers like ADT (-2.21%), BCO (-1.94%), BRC (-1.73%), GEO (-0.48%) and CXW (-1.42%) were also lower. With no peers in the momentum scanner, the move appears more company-specific than a sector-wide rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 28 | Quarterly earnings | Positive | +4.1% | Q3 2025 earnings with higher sales, margins and liquidity. |
| Aug 04 | Quarterly earnings | Positive | +1.4% | Q2 2025 earnings, M&C acquisition and ongoing capital returns. |
| Apr 29 | Quarterly earnings | Positive | +2.0% | Q1 2025 earnings showing organic growth and stronger International. |
| Feb 12 | Annual results | Positive | +0.2% | Q4 and full-year 2024 results with profitability improvement. |
| Oct 23 | Quarterly earnings | Positive | -0.3% | Q3 2024 results with sales decline but solid margins. |
Earnings releases have generally been received positively, with four of the last five tagged earnings events seeing modest share price gains and only one small divergence into negative territory.
Recent earnings history for MSA shows consistent growth themes. Prior quarters reported net sales between $433M and $500M, with GAAP operating margins around the low-20% range and adjusted EPS in the high-$1 to mid-$7 range annually. Liquidity was strong, with net leverage near 0.7x–1.0x and substantial shareholder returns via dividends and repurchases. Today’s Q1 2026 report, with higher sales, margins and adjusted EPS, extends this pattern of steady earnings expansion while maintaining a conservative balance sheet.
Historical Comparison
Across the last 5 earnings‑tagged releases, MSA’s average next‑day move was about 1.51%, typically modestly positive. This Q1 2026 earnings report continues the trend of steady sales and margin expansion against a backdrop of disciplined capital returns.
Earnings releases since 2024 show progression from moderate growth to stronger profitability, with recurring themes of expanding margins, stable net leverage near 0.7x–1.0x, and growing shareholder returns through dividends and buybacks.
Market Pulse Summary
This announcement highlighted Q1 2026 net sales of $463.6M, double‑digit GAAP growth, expanding margins and adjusted diluted EPS of $1.99. Management emphasized strong free cash flow, a net leverage ratio of 0.9x, and ample liquidity of $1.2B, while returning $71M via dividends and buybacks. Historically, MSA’s earnings have shown steady improvement, but investors may monitor segment trends, international softness and macro/geopolitical risks in upcoming quarters.
Key Terms
free cash flow financial
organic sales change financial
adjusted EBITDA financial
adjusted operating income financial
non-GAAP financial
net leverage ratio financial
transaction costs financial
AI-generated analysis. Not financial advice.
First Quarter 2026 Highlights
- Achieved quarterly net sales of
$464 million 10% GAAP increase and a3% organic increase year-over-year - Generated GAAP operating income of
$93 million 20.1% of sales, and adjusted operating income of$101 million 21.8% of sales - Recorded GAAP net income of
$71 million $1.83 $77 million $1.99 - Returned a total of
$71 million $50 million $21 million $500 million - Maintain a strong balance sheet and ample liquidity to support Accelerate strategy
"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
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. | |||||
"The team delivered solid organic growth and profit pull-through in the first quarter, resulting in
The company returned a total of
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.
MSA Safety Incorporated | |||
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 | |
MSA Safety Incorporated | |||
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 | |
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 | |
MSA Safety Incorporated Sales by Product Group (Unaudited) (In thousands, except percentages) | ||||||||||||
Three Months Ended March 31, 2026 | Consolidated | International | ||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||
Detection(a) | $ 180,842 | 39 % | 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 % | 100 % | 100 % | ||||||||
Three Months Ended March 31, 2025 | Consolidated | International | ||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||
Detection(a) | $ 161,070 | 38 % | 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 % | 100 % | 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 | |||||
Consolidated | |||||
Three Months Ended March 31, 2026 | |||||
Detection(a) | Fire | Industrial PPE | 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 | Industrial PPE | 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 | Industrial PPE | 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 ( | |||||
(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 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. |
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 currency exchange gains / losses, restructuring charges, acquisition-related amortization, 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 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.
MSA Safety Incorporated Reconciliation of Non-GAAP Financial Measures Debt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited) (In thousands) | ||
Twelve Months Ended | ||
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.
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
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