MSA Safety awarded $33 Million Breathing Apparatus Contract with U.S. Coast Guard

Rhea-AI Summary

MSA Safety has secured a 10-year, $33 million contract with the U.S. Coast Guard to provide G1 Self-Contained Breathing Apparatus (SCBA) for their operational surface fleet and support facilities. Initial orders worth $22 million were received in Q3 2024. The G1 SCBA features over 15 patents and includes advanced features like voice amplification, radio interface, ergonomic design, and an integrated telemetry solution powered by MSA's FireGrid software suite. Production is ongoing at the company's Murrysville, Pennsylvania facility.

Positive

• Secured significant $33M contract with U.S. Coast Guard
• Immediate revenue recognition with $22M in initial orders for Q3 2024
• 10-year contract duration provides long-term revenue stability
• Production already underway at Pennsylvania facility

Negative

• None.

Insights

Financial Analyst

The $33 million Coast Guard contract marks a significant win for MSA Safety, with $22 million already booked in Q3 2024. This represents approximately 1.8% of MSA's 2023 revenue of $1.8 billion, providing solid revenue visibility. The 10-year contract duration ensures steady, long-term cash flow and strengthens MSA's position in the government sector. The initial order's front-loaded nature, representing 67% of the total contract value, positively impacts near-term financial performance. The G1 SCBA's advanced features and patented technology demonstrate strong competitive advantages, potentially leading to additional military and government contracts. Manufacturing at the Murrysville facility supports domestic production requirements for government contracts, positioning MSA well for future opportunities.

Technology Analyst

The G1 SCBA platform represents significant technological advancement in firefighter safety equipment. The system's 15+ patents and modular design create high barriers to entry while enabling future upgrades without complete system replacement. Key differentiators include:

• Advanced communications integration with voice amplification and radio interface
• Cloud-enabled FireGrid software suite for real-time monitoring and data analytics
• Ergonomic design with adjustable weight distribution

The platform's ability to incorporate new technologies as they become available provides long-term value proposition and reduces obsolescence risk. The integrated telemetry and cloud software demonstrate MSA's evolution toward smart, connected safety solutions.

PITTSBURGH, Nov. 14, 2024 /PRNewswire/ -- MSA Safety, Inc. (NYSE: MSA) today announced it has been awarded a multi-year $33 million contract with the U.S. Coast Guard to provide new firefighter respiratory protective equipment. The 10-year contract covers the supply of MSA's G1 Self-Contained Breathing Apparatus (SCBA) to the operational surface fleet and surface support facilities. Initial orders under the contract, valued at approximately $22 million, were received in the third quarter of 2024.

"We are incredibly proud the U.S. Coast Guard has placed their trust and confidence in the MSA brand," said Steve Blanco, MSA Safety President and Chief Executive Officer. "The innovative design and versatility of the G1 SCBA platform helps to improve firefighter health and safety by enabling the addition of new technologies as those technologies become available. We very much look forward to this partnership and the privilege of helping to protect the members of the U.S. Coast Guard."

With more than 15 patents, the G1 SCBA includes a broad range of innovative features to enhance firefighter safety, comfort, situational awareness, and operational efficiency. These include:

• Standard voice amplification and radio interface capability that enables crisp and clear communications in the most challenging environments.
• An ergonomic cylinder carrier and harness that utilize an adjustable-swiveling waist belt to optimize SCBA weight distribution and stability, thereby providing a proper fit for a broad range of firefighters.
• An advanced electronics platform powered by a single rechargeable battery. The platform enables individual firefighters, teams, and incident commanders to stay well-informed and well-connected. It includes an integrated telemetry solution that, when used with MSA's FireGrid software suite, expands and enhances a fire department's ability to manage, monitor, and analyze fireground operations and equipment. The cloud-enabled software suite includes inventory management, incident management, and reporting capabilities to ensure that equipment is ready, firefighters are accounted for, and incident insights are readily available.

Production of the new U.S. Coast Guard breathing apparatus units is underway at the company's Murrysville, Pennsylvania, manufacturing facility.  

About MSA Safety
MSA Safety Incorporated (NYSE: MSA) is the global leader in advanced safety products, technologies 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 2023 revenues of $1.8 billion, MSA Safety is headquartered in Cranberry Township, Pennsylvania and employs a team of over 5,000 associates across its more than 40 international locations. For more information, please visit www.MSASafety.com.

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SOURCE MSA Safety

FAQ

What is the value of MSA Safety's new U.S. Coast Guard contract?

MSA Safety (NYSE: MSA) has been awarded a $33 million contract with the U.S. Coast Guard to provide G1 Self-Contained Breathing Apparatus equipment.

How much of MSA Safety's Coast Guard contract was ordered in Q3 2024?

Initial orders under the contract valued at approximately $22 million were received in the third quarter of 2024.

What is the duration of MSA Safety's Coast Guard breathing apparatus contract?

The contract with the U.S. Coast Guard is a 10-year agreement for supplying G1 SCBA equipment to their operational surface fleet and surface support facilities.

Where is MSA Safety manufacturing the Coast Guard breathing apparatus units?

The G1 SCBA units for the U.S. Coast Guard are being manufactured at MSA Safety's facility in Murrysville, Pennsylvania.