MSA Safety Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 11 February 2026: press release. The quarter’s numbers.

Key takeaways

Fourth-quarter sales fell organically: Net sales were $511 million, up 2% on a GAAP basis and down 3% organically, against $500 million a year earlier. Source
Fourth-quarter EPS and adjusted EPS: Fourth-quarter GAAP net income was $87 million, or $2.21 per diluted share, against $2.22 a year earlier; adjusted diluted EPS rose 6% to $2.38. Source
Americas sales slipped; fire service fell: Americas net sales were $335 million, down 1% GAAP and 3% organically. Detection grew 24% organically while fire service fell 23%. Full-year Americas sales were $1,262 million, up 1%. Source
Detection grew fastest, helped by M&C: Detection sales were $217 million, up 28% GAAP and 17% organically, 43% of net sales; M&C TechGroup accounted for 8 points of the GAAP growth. Full-year detection rose 19%, 12% organically. Source
Fire service fell on timing: Fire service sales were $175 million, down 19% GAAP and 21% organically, at 34% of net sales; full-year fire service fell 9% GAAP and 10% organically. Source
Free cash flow rose 22% for year: Full-year free cash flow was $295 million, up 22%, with 106% conversion; fourth-quarter free cash flow was $106 million, up 13%, with 122% conversion. Source

“We reported solid 2025 performance in a challenging operating environment”
Steve Blanco, MSA Safety President and Chief Executive Officer

What changed from last quarter

New guidance: Full-year 2026 organic sales growth is given as mid-single digit, a figure not present in the prior-quarter release. Source
New: Management updated the operating environment, listing tailwinds and headwinds for 2026. Source

Fourth-quarter and full-year results

Fourth-quarter sales fell organically: Net sales were $511 million, up 2% on a GAAP basis and down 3% organically, against $500 million a year earlier. Source
Full-year sales rose 1% organically: Full-year net sales were $1.9 billion, up 4% GAAP and 1% organically, with fire service timing included in the year. Source
Fourth-quarter EPS and adjusted EPS: Fourth-quarter GAAP net income was $87 million, or $2.21 per diluted share, against $2.22 a year earlier; adjusted diluted EPS rose 6% to $2.38. Source
Full-year EPS fell; adjusted rose: Full-year GAAP diluted EPS was $7.09, down 2%; adjusted diluted EPS was $7.93, up 3%, on adjusted earnings of $312 million. Source

Segments and regions

Americas sales slipped; fire service fell: Americas net sales were $335 million, down 1% GAAP and 3% organically. Detection grew 24% organically while fire service fell 23%. Full-year Americas sales were $1,262 million, up 1%. Source
International reported sales rose 8%: International net sales were $176 million, up 8% GAAP and down 3% organically, with fire service down 16% organically. Full-year International sales were $613 million, up 9%. Source
International full-year adjusted profit rose: International full-year adjusted operating income was $93 million, up 10%, at 15.2% of sales versus 15.1%. Fourth-quarter adjusted margin was 16.8% versus 17.6%. Source
Americas full-year margin declined: Americas full-year adjusted operating income was $365 million, down 4%, with margin at 28.9% versus 30.5%; fourth-quarter adjusted margin rose to 31.0% from 30.7%. Source

“We are entering 2026 with strong momentum, due to our Mission-driven commitment to deliver innovative products and solutions to our customers, along with a solid commercial pipeline.”
Steve Blanco, MSA Safety President and Chief Executive Officer

Products and customers

Detection grew fastest, helped by M&C: Detection sales were $217 million, up 28% GAAP and 17% organically, 43% of net sales; M&C TechGroup accounted for 8 points of the GAAP growth. Full-year detection rose 19%, 12% organically. Source
Fire service fell on timing: Fire service sales were $175 million, down 19% GAAP and 21% organically, at 34% of net sales; full-year fire service fell 9% GAAP and 10% organically. Source
Industrial PPE nearly flat: Industrial PPE and Other sales were $119 million, up 4% GAAP and 1% organically; full-year sales were $464 million, up 2%, with fall protection momentum cited for 2026. Source

Costs, margins and pricing

Adjusted EBITDA margin eased: Fourth-quarter adjusted EBITDA was $136 million, 26.6% of net sales versus 26.9%; full-year adjusted EBITDA was $473 million, 25.2% versus 26.0%. Source
GAAP operating margin fell in quarter: Fourth-quarter GAAP operating income was $114 million, 22.3% of net sales versus 23.5%; adjusted operating income was $122 million, 23.9% versus 24.0%. Source
SG&A rose; R&D eased: Fourth-quarter SG&A rose to $105 million from $100 million and R&D eased to $16 million from $17 million; full-year SG&A was $414 million versus $395 million. Source
Currency losses rose sharply: Currency exchange losses were $2.6 million in the fourth quarter, against net gains of $1.1 million a year earlier, and $15.8 million for the full year. Source

“Our team delivered resilient full-year results despite headwinds to organic sales and margins, driven by strong execution and effective SG&A management.”
Steve Blanco, MSA Safety President and Chief Executive Officer

Demand and 2026 operating environment

Tailwinds listed for 2026: Listed 2026 tailwinds include rising global safety standards and diverse end markets, plus positive contribution from strategic pricing actions. Source
Fire service carry-over into 2026: Carry-over from late AFG funding and the 2025 U.S. Government shutdown is listed as a 2026 tailwind for fire service. Source
Detection demand described as favorable: Demand for fixed and portable detection is described as favorable, including MSA+ connected ecosystem solutions; fall protection momentum is listed for industrial PPE. Source
Latin America large-order non-recurrence: Non-recurrence of large detection orders in Latin America is listed as a 2026 headwind. Source

Capital, cash and shareholder returns

Free cash flow rose 22% for year: Full-year free cash flow was $295 million, up 22%, with 106% conversion; fourth-quarter free cash flow was $106 million, up 13%, with 122% conversion. Source
Full-year returns and acquisition: Full-year returns totaled $162 million, including $80 million of share repurchases and $82 million of dividends; the company also acquired M&C TechGroup for $189 million. Source
Fourth-quarter returns and debt repayment: Fourth-quarter returns totaled $61 million, with $40 million of share repurchases and $21 million of dividends; debt was reduced by $48 million in the quarter. Source
Year-end net debt and liquidity: Net debt was $416 million at year-end; net leverage was 0.9x and liquidity was $1.2 billion. Source

Strategy, deals and workforce

Balanced capital allocation priorities: The CFO said the balance sheet and liquidity support organic growth, M&A and capital returns as balanced priorities. Source
M&C TechGroup integration on track: The third-quarter release said M&C TechGroup was performing well and its integration remained on track; the fourth-quarter release gives no integration update.
Workforce of about 5,300: The company employs approximately 5,300 associates across more than 40 international locations, against over 5,000 in the prior release. Source

Risks management discussed

Demand: Management cited industrial end market weakness, fire service timing and difficult comparisons as sales headwinds this year. Source
External: Macroeconomic, tariff and geopolitical policy uncertainty is listed as a 2026 headwind, alongside mixed industrial demand globally. Source

Earlier plans management reported on

Met: Management said 2025 organic sales growth landed within the low-single-digit range and free cash flow conversion surpassed the annual target range. Source
Delayed: Management attributed the fourth-quarter organic decline primarily to timing delays in fire service. Source
Not stated: Management said it remains confident in executing Accelerate to deliver its 2028 financial commitments. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

FROM: MSA Safety Incorporated

Ticker: MSA (NYSE)

MSA Safety Announces Fourth Quarter and Full-Year 2025 Results

Fourth Quarter 2025 Highlights

Achieved net sales of $511 million, a 2% GAAP increase and (3)% organic decrease year-over-year primarily due to timing delays in fire service
Generated GAAP operating income of $114 million, or 22.3% of net sales, and adjusted operating income of $122 million, or 23.9% of net sales
Recorded GAAP net income of $87 million, or $2.21 per diluted share, and adjusted earnings of $93 million, or $2.38 per diluted share
Returned a total of $61 million to shareholders via $40 million of share repurchases and $21 million of dividends, repaid $48 million of debt, and invested $16 million for capital expenditures

Full-Year 2025 Highlights

Achieved net sales of $1.9 billion, a 4% GAAP increase and 1% organic increase year-over-year, including timing delays in fire service
Generated GAAP operating income of $372 million, or 19.8% of net sales, and adjusted operating income of $415 million, or 22.1% of net sales
Recorded GAAP earnings of $279 million, or $7.09 per diluted share, and adjusted earnings of $312 million, or $7.93 per diluted share
Acquired M&C TechGroup for $189 million, returned a total of $162 million to shareholders via $80 million of share repurchases and $82 million of dividends, and invested $68 million for capital expenditures
Maintain strong balance sheet and ample liquidity to support Accelerate strategy

PITTSBURGH, February 11, 2026 - Global safety equipment and solutions provider MSA Safety Incorporated (NYSE: MSA) today reported financial results for the fourth quarter and year ended December 31, 2025.

Definition of organic revenue growth provided on the bottom of page ten.

“We reported solid 2025 performance in a challenging operating environment,” said Steve Blanco, MSA Safety President and Chief Executive Officer. “Our team delivered resilient full-year results despite headwinds to organic sales and margins, driven by strong execution and effective SG&A management. This year, our sales growth headwinds included pockets of industrial end market weakness, timing challenges in the U.S. fire service, and difficult comparisons. We are entering 2026 with strong momentum, due to our Mission-driven commitment to deliver innovative products and solutions to our customers, along with a solid commercial pipeline. The team remains confident in our ability to execute our Accelerate strategy to deliver on our 2028 financial commitments."

Financial Highlights

	Three Months Ended December 31,						Twelve Months Ended December 31,
(In millions, except per share data and percentages)		2025		2024	% Change			2025		2024	% Change
Net Sales	$511		$500		2%		$1,875		$1,808		4%
GAAP
Operating income	114		118		(3)%		372		389		(4)%
% of Net sales	22.3%		23.5%			(120) bps	19.8%		21.5%			(170) bps
Net income	87		88		(1)%		279		285		(2)%
Diluted EPS	$2.21		$2.22		- %		$7.09		$7.21		(2)%
Non-GAAP
Adjusted EBITDA	$136		$135		1%		$473		$469		1%
% of Net sales	26.6%		26.9%			(30) bps	25.2%		26.0%			(80) bps
Adjusted operating income	$122		$120		1%		$415		$414		- %
% of Net sales	23.9%		24.0%			(10) bps	22.1%		22.9%			(80) bps
Adjusted earnings	93		89		5%		312		305		2%
Adjusted diluted EPS	$2.38		$2.25		6%		$7.93		$7.70		3%
Free cash flow	106		93		13%		295		242		22%
Free cash flow conversion	122%		106%				106%		85%
Americas Segment
Net sales	$335		$337		(1)%		$1,262		$1,247		1%
GAAP operating income	101		101		- %		356		371		(4)%
% of Net sales	30.3%		30.1%			20 bps	28.2%		29.8%			(160) bps
Adjusted operating income	104		104		- %		365		380		(4)%
% of Net sales	31.0%		30.7%			30 bps	28.9%		30.5%			(160) bps
International Segment
Net sales	$176		$163		8%		$613		$561		9%
GAAP operating income	27		28		(3)%		79		79		- %
% of Net sales	15.4%		17.1%			(170) bps	12.9%		14.1%			(120) bps
Adjusted operating income	30		29		3%		93		85		10%
% of Net sales	16.8%		17.6%			(80) bps	15.2%		15.1%			10 bps

Percentage change may not calculate exactly due to rounding.

Balance Sheet and Cash Flow

“While macroeconomic conditions presented challenges, MSA delivered organic sales growth within our low-single digit 2025 Outlook range, free cash flow conversion that surpassed our annual target range and higher capital returns to shareholders,” commented Julie Beck, MSA Safety Senior Vice President and Chief Financial Officer. "Our strong balance sheet and ample liquidity continue to provide us the ability to deliver on our balanced capital allocation priorities of organic growth, M&A, and capital returns to shareholders, which will enable us to execute our strategy to invest and drive profitable growth," Beck added.

The company deployed capital in line with its capital allocation strategy in 2025 by acquiring M&C TechGroup for $189 million, returning a total of $162 million to shareholders via dividends of $82 million and executing $80 million of share repurchases, while investing $68 million in capital expenditures. MSA maintains a strong liquidity position with net debt at the end of the fourth quarter of $416 million. The company’s net leverage ratio was 0.9x at December 31, 2025. MSA's strong financial profile, including ample liquidity of $1.2 billion, continues to provide optionality around execution of strategic growth initiatives, including acquisitions.

2026 Net Sales Outlook

The company is expecting mid-single digit full-year organic sales growth in 2026, and has provided an update on the operating environment below:

Tailwinds

Increasing global safety standards creating demand for sophisticated safety products and solutions; diverse end markets provide resiliency
Favorable underlying demand for fixed and portable detection, including MSA+ connected ecosystem solutions
Carry-over from fire service late AFG funding and U.S. Government shutdown in 2025
Industrial PPE to benefit from continued momentum in fall protection
Positive contribution from strategic pricing actions

Headwinds

Continued macroeconomic, tariff and geopolitical policy uncertainty
Mixed industrial end market demand globally
Non-recurrence of large detection orders in Latin America

Conference Call

MSA Safety will host a conference call on Thursday, February 12, 2026 at 10:00 a.m. Eastern Time to discuss the fourth quarter and full-year 2025 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.

Consolidated Statement of Income (Unaudited)

(In thousands, except per share amounts)

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2025	2024	2025	2024
Net sales	$510,913	$499,696	$1,874,814	$1,808,140
Cost of products sold	271,521	265,267	1,003,701	947,695
Gross profit	239,392	234,429	871,113	860,445
Selling, general and administrative	105,359	100,378	414,254	394,707
Research and development	16,157	16,831	65,343	66,526
Restructuring charges	1,427	653	3,897	6,397
Currency exchange losses (gains), net	2,564	(1,077)	15,801	3,638
Operating income	113,885	117,644	371,818	389,177
Interest expense	8,431	7,333	31,799	36,889
Other income, net	(7,794)	(6,503)	(26,379)	(22,718)
Total other expense, net	637	830	5,420	14,171
Income before income taxes	113,248	116,814	366,398	375,006
Provision for income taxes	26,315	28,868	87,474	90,039
Net income	86,933	87,946	278,924	284,967
Earnings per share attributable to common shareholders:
Basic	$2.22	$2.23	$7.11	$7.24
Diluted	$2.21	$2.22	$7.09	$7.21
Basic shares outstanding	39,107	39,374	39,216	39,371
Diluted shares outstanding	39,248	39,548	39,346	39,535

Condensed Consolidated Balance Sheet (Unaudited)

	December 31, 2025	December 31, 2024
Assets
Cash and cash equivalents	$165,067	$164,560
Trade receivables, net	306,452	279,213
Inventories	343,035	296,796
Other current assets	54,738	62,461
Total current assets	869,292	803,030
Property, plant and equipment, net	283,063	211,865
Prepaid pension cost	279,450	224,638
Goodwill	731,592	620,895
Intangible assets, net	299,127	246,437
Other noncurrent assets	91,850	98,919
Total assets	$2,554,374	$2,205,784
Liabilities and shareholders' equity
Notes payable and current portion of long-term debt, net	$8,225	$26,391
Accounts payable	110,775	108,163
Other current liabilities	170,211	153,539
Total current liabilities	289,211	288,093
Long-term debt, net	572,709	481,622
Pensions and other employee benefits	143,834	134,251
Deferred tax liabilities	127,540	107,691
Other noncurrent liabilities	54,068	50,808
Total shareholders' equity	1,367,012	1,143,319
Total liabilities and shareholders' equity	$2,554,374	$2,205,784

Condensed Consolidated Statement of Cash Flows (Unaudited)

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2025	2024	2025	2024
Net income	$86,933	$87,946	$278,924	$284,967
Depreciation and amortization	18,656	16,770	71,591	64,333
Change in working capital and other operating	16,765	3,192	13,352	(52,872)
Cash flow from operating activities	122,354	107,908	363,867	296,428
Capital expenditures	(16,334)	(14,409)	(68,438)	(54,223)
Acquisition, net of cash acquired	(1,501)	-	(189,275)	-
Property disposals and other investing	60	378	79	468
Cash flow used in investing activities	(17,775)	(14,031)	(257,634)	(53,755)
Change in debt	(48,014)	(43,251)	67,314	(94,254)
Cash dividends paid	(20,706)	(20,089)	(82,344)	(78,759)
Company stock purchases under repurchase program	(39,997)	(9,906)	(79,992)	(29,932)
Other financing	1,078	729	(10,443)	(5,744)
Cash flow used in financing activities	(107,639)	(72,517)	(105,465)	(208,689)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,875)	(11,233)	127	(17,295)
(Decrease) increase in cash, cash equivalents and restricted cash	$(4,935)	$10,127	$895	$16,689

Sales by Product Group (Unaudited)

(In thousands, except percentages)

	Dollars	Percent	Dollars	Percent	Dollars	Percent
Three Months Ended December 31, 2025	Consolidated		Americas		International
Detection	$217,299	43%	$140,608	42%	$76,691	44%
Fire Service	174,898	34%	120,025	36%	54,873	31%
Industrial PPE and Other	118,716	23%	74,558	22%	44,158	25%
Total	$510,913	100%	$335,191	100%	$175,722	100%
Three Months Ended December 31, 2024	Consolidated		Americas		International
	Dollars	Percent	Dollars	Percent	Dollars	Percent
Detection	$169,578	34%	$108,680	32%	$60,898	37%
Fire Service	216,206	43%	155,008	46%	61,198	38%
Industrial PPE and Other	113,912	23%	73,207	22%	40,705	25%
Total	$499,696	100%	$336,895	100%	$162,801	100%

	Dollars	Percent	Dollars	Percent	Dollars	Percent
Twelve Months Ended December 31, 2025	Consolidated		Americas		International
Detection	$763,393	41%	$501,784	40%	$261,609	43%
Fire Service	647,474	34%	446,245	35%	201,229	33%
Industrial PPE and Other	463,947	25%	313,812	25%	150,135	24%
Total	$1,874,814	100%	$1,261,841	100%	$612,973	100%
Twelve Months Ended December 31, 2024	Consolidated		Americas		International
	Dollars	Percent	Dollars	Percent	Dollars	Percent
Detection	642,792	36%	426,839	34%	215,953	38%
Fire Service	712,684	39%	507,738	41%	204,946	36%
Industrial PPE and Other	452,664	25%	312,064	25%	140,600	26%
Total	$1,808,140	100%	$1,246,641	100%	$561,499	100%
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 (Americas and International). Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core.

Reconciliation of GAAP to Non-GAAP Financial Measures

Organic revenue change (Unaudited)

Consolidated

	Three Months Ended December 31, 2025
	Detection	Fire Service	Industrial PPE and Other	Net Sales
GAAP reported sales change	28%	(19)%	4%	2%
Currency translation effects	(3)%	(2)%	(3)%	(2)%
Less: Acquisitions	(8)%	- %	- %	(3)%
Organic sales change	17%	(21)%	1%	(3)%
	Twelve Months Ended December 31, 2025
	Detection	Fire Service	Industrial PPE and Other	Net Sales
GAAP reported sales change	19%	(9)%	2%	4%
Currency translation effects	(1)%	(1)%	- %	(1)%
Less: Acquisitions	(6)%	- %	- %	(2)%
Organic sales change	12%	(10)%	2%	1%

Americas Segment

	Three Months Ended December 31, 2025
	Detection	Fire Service	Industrial PPE and Other	Net Sales
GAAP reported sales change	29%	(23)%	2%	(1)%
Currency translation effects	(2)%	- %	(3)%	(1)%
Less: Acquisitions	(3)%	- %	- %	(1)%
Organic sales change	24%	(23)%	(1)%	(3)%

	Twelve Months Ended December 31, 2025
	Detection	Fire Service	Industrial PPE and Other	Net Sales
GAAP reported sales change	18%	(12)%	1%	1%
Currency translation effects	- %	- %	1%	- %
Less: Acquisitions	(3)%	- %	- %	(1)%
Organic sales change	15%	(12)%	2%	- %

International Segment

	Three Months Ended December 31, 2025
	Detection	Fire Service	Industrial PPE and Other	Net Sales
GAAP reported sales change	26%	(10)%	8%	8%
Currency translation effects	(4)%	(6)%	(4)%	(5)%
Less: Acquisitions	(18)%	- %	- %	(6)%
Organic sales change	4%	(16)%	4%	(3)%

	Twelve Months Ended December 31, 2025
	Detection	Fire Service	Industrial PPE and Other	Net Sales
GAAP reported sales change	21%	(2)%	7%	9%
Currency translation effects	(3)%	(3)%	(3)%	(3)%
Less: Acquisitions	(13)%	- %	- %	(5)%
Organic sales change	5%	(5)%	4%	1%

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 (Americas and International).

Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.

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.

Adjusted operating income (Unaudited)

Adjusted EBITDA (Unaudited)

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2025	2024	2025	2024
Adjusted EBITDA	$135,999	$134,642	$472,911	$469,431
Less:
Depreciation and amortization	14,076	14,484	58,313	55,159
Adjusted operating income	121,923	120,158	414,598	414,272
Less:
Currency exchange losses (gains), net	2,564	(1,077)	15,801	3,638
Acquisition-related amortization	3,582	2,286	12,615	9,174
Restructuring charges	1,427	653	3,897	6,397
Net cost for product related legal matter	-	-	-	5,000
Transaction costs	465	652	10,467	886
GAAP operating income	113,885	117,644	371,818	389,177
Less:
Interest expense	8,431	7,333	31,799	36,889
Other income, net	(7,794)	(6,503)	(26,379)	(22,718)
Income before income taxes	113,248	116,814	366,398	375,006
Provision for income taxes	26,315	28,868	87,474	90,039
Net income	$86,933	$87,946	$278,924	$284,967
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 Consolidated Statements of Operations.

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 restructuring charges, currency exchange gains / losses, acquisition-related amortization, net cost for product related legal matter 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.

Adjusted earnings (Unaudited)

Adjusted earnings per diluted share (Unaudited)

(In thousands, except percentages and per share amounts)

	Three Months Ended December 31,			Twelve Months Ended December 31,
	2025	2024	% Change	2025	2024	% Change
Net income	$86,933	$87,946	(1)%	$278,924	$284,967	(2)%
Currency exchange losses (gains), net	2,564	(1,077)		15,801	3,638
Restructuring charges	1,427	653		3,897	6,397
Acquisition-related amortization	3,582	2,286		12,615	9,174
Transaction costs	465	652		10,467	886
Asset related losses (gains)	419	(141)		1,408	819
Pension settlement	-	-		721	1,308
Net cost for product related legal matter	-	-		-	5,000
Income tax expense on adjustments	(2,019)	(1,277)		(11,904)	(7,689)
Adjusted earnings	$93,371	$89,042	5%	$311,929	$304,500	2%
Adjusted earnings per diluted share	$2.38	$2.25	6%	$7.93	$7.70	3%
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 Consolidated Statements of Operations.

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.

Debt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited)

	Twelve Months Ended December 31, 2025
Operating income	$371,818
Depreciation and amortization	58,313
Currency exchange losses, net	15,801
Restructuring charges	3,897
Acquisition-related amortization	12,615
Transaction costs	10,467
Adjusted EBITDA	$472,911
Total end-of-period debt	580,934
Debt to adjusted EBITDA	1.2
Total end-of-period debt	580,934
Total end-of-period cash and cash equivalents	165,067
Net debt	$415,867
Net debt to adjusted EBITDA	0.9
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 Consolidated Statements of Operations.

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 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 2025 revenues of $1.9 billion, MSA Safety is headquartered in Cranberry Township, Pennsylvania and employs a team of approximately 5,300 associates across its more than 40 international locations. For more information, please visit www.MSASafety.com.

Cautionary Statement Regarding Forward-Looking Statements:

Forward-looking statements notice

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 U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. When non-GAAP financial measures are disclosed, the Securities and Exchange Commission's Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. For an explanation of these measures, with a reconciliation to the most directly comparable GAAP financial measure, see the Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures in the financial tables section above.

Contacts
Media Relations Contact: Mark Deasy (412) 559-8154
Investor Relations Contact: Larry De Maria (917) 245-7463