MSA Safety Widens Margins as PPE Sales Accelerate
Second-quarter sales rose 6% to $503.3 million, supported by 3% organic growth.
MSA Safety Inc. (MSA), the safety-products maker, expanded its adjusted operating margin 270 basis points to 24.1% in the second quarter as tariff refunds helped lift profitability.
Organic sales growth held at 3% for a second consecutive quarter after a 3% decline in the fourth quarter of 2024. Reported growth slowed from 10% in the first quarter, leaving margin expansion as the sharper point of improvement.
Net sales increased to $503.3 million from a year earlier and rose 8.6% sequentially, though they remained below the fourth quarter’s $511 million. Diluted earnings increased 40% to $2.23 a share, while adjusted earnings rose 24% to $2.40 a share.
The Americas segment generated $341.5 million in sales, up 7%, while its adjusted operating margin widened 290 basis points to 32.0%. International sales rebounded sequentially to $161.9 million from $138.4 million, and the segment’s adjusted margin recovered to 15.5% from 10.5%. International adjusted income increased 24% from a year earlier after declining 22% in the first quarter.
Industrial PPE and Other led the product portfolio, with sales rising 20% on a reported basis and 16% organically. Its share of sales increased to 28% from 25%, while Detection was flat organically and Fire Service sales declined 2% organically.
International growth came from acquisitions and currency, as the segment’s reported sales rose 5% while organic sales were flat. International Detection declined 13% organically, while International Industrial PPE and Other grew 27%, concentrating the segment’s gains in one product category.
Free cash flow more than doubled to $82.7 million, and conversion improved to 96% from 60%. MSA returned $47 million to shareholders, down from $71 million in the first quarter, as repurchases declined to $26 million from $50 million. The company also raised its annual dividend for a 56th consecutive year.
MSA retains its mid-single-digit organic-sales growth outlook for 2025 and now expects low-double-digit total-revenue growth, including mid-single-digit contributions from acquisitions and a low-single-digit currency benefit. The roughly $555 million acquisition of Autronica closed in early July, adding a business with about $160 million in 2024 revenue and an adjusted EBITDA margin of approximately 20%. Including acquisition debt, pro forma net leverage rose to about 1.8 times from 0.8 times at the second-quarter close, setting a higher balance-sheet baseline for the acquisition-led growth in the outlook.