MSA Safety lifts sales 15% to $536.4 million in third quarter
Key Facts
MSA Safety reported results on November 2 for the quarter ended September 30, posting net sales of $536.4 million, up 15% year over year on a GAAP basis. CEO Steve Blanco said the company delivered "15% sales growth." But that growth included the impact of acquisitions, with organic sales up just 6%. The company's reconciliation showed acquisitions added 8 percentage points to reported sales change. The results highlight a divergence between reported revenue growth and organic performance, alongside declines in earnings and free cash flow.
Net income was $58.4 million, compared with $69.6 million in the year-earlier quarter. GAAP diluted earnings per share fell 15% to $1.51, from $1.77 a year earlier. The company attributed the decline in net income to costs tied to the Autronica acquisition. By contrast, adjusted operating results grew: adjusted operating income rose 11% to $114.9 million. GAAP operating income fell to $88.2 million from $94.3 million in the comparable period.
International outperformed the Americas in reported sales growth. Americas sales were $338.2 million, up 8% year over year, while international sales reached $198.2 million, up 28%. The quarter included an 8-percentage-point contribution from acquisitions to reported sales change, while organic growth was 6%. Blanco cited the completion of the Autronica Fire and Security acquisition and the launch of the G1 City Edition SCBA. The company also said it received its largest order to date for the ALTAIR io 6 product within MSA+, without specifying the order's value in the statement.
Free cash flow was $68.2 million, down 32% from $100.5 million in the third quarter of the previous year. The free cash flow conversion rate was 117% during the quarter. These figures put the decline in cash generation alongside lower GAAP net income, despite growth in adjusted operating income. The company says costs tied to the Autronica acquisition affected net income, while acquisitions contributed to reported sales growth. The statement gave no specific explanation for the decline in free cash flow.
MSA Safety said it is maintaining its full-year 2026 sales growth outlook, without reaffirming all elements of its financial guidance. The company's shares, listed on the New York Stock Exchange under the ticker MSA, closed at $38 on October 30, according to EL7 data. The company scheduled a conference call to discuss its third-quarter results for November 3, 2026, at 10:00 a.m. Eastern time. The call comes a day after the results announcement, with management's presentation providing an opportunity to discuss segment performance, acquisition costs and cash flow. The available data included no further details on the company's outlook or any share-price movement after the results announcement.