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1. Company Snapshot

1.a. Company Description

MSA Safety Incorporated develops, manufactures, and supplies safety products that protect people and facility infrastructures in the oil, gas, petrochemical, fire service, construction, industrial manufacturing applications, utilities, military, and mining industries in North America, Latin America, and internationally.The company's core product offerings include permanently installed fixed gas and flame detection instruments, such as permanently installed gas detection monitoring systems, and flame detectors and open-path infrared gas detectors, as well as replacement components and related services to detect the presence or absence of various gases in the air.Its core product offerings also comprise breathing apparatus products, such as self-contained breathing apparatus; hand-held portable gas detection instruments; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment, including confined space equipment, harnesses, lanyards, and self-retracting lifelines, as well as engineered systems.


In addition, the company offers air-purifying respirators, eye and face protection products, ballistic helmets, and gas masks.It serves distributors and end-users through indirect and direct sales channels.The company offers its product under the V-Gard, Cairns, and Gallet brand names.


MSA Safety Incorporated was founded in 1914 and is based in Cranberry Township, Pennsylvania.

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1.b. Last Insights on MSA

MSA Safety Incorporated's recent performance was impacted by various factors. Despite achieving quarterly net sales of $468 million, an 8% GAAP increase and a 3% organic increase year-over-year, the company's growth seems to be slowing down. The company's Q3 earnings beat estimates, with quarterly earnings of $1.94 per share, but some investors might be concerned about the sustainability of this growth. Additionally, Alterity Therapeutics' positive data from its ATH434 Phase 2 trial in Multiple System Atrophy (MSA) could potentially disrupt MSA Safety's market share.

1.c. Company Highlights

2. MSA Safety's Q3 2025 Earnings: A Mixed Bag

MSA Safety reported consolidated sales growth of 8% with 3% organic growth, and adjusted earnings per share of $1.94, beating analyst estimates of $1.9. The company's GAAP gross margins declined to 46.5%, down 140 basis points from the previous year, due to inflation, tariffs, and transactional FX increases. The adjusted EPS was a positive surprise, driven by the company's focus on SG&A productivity and pricing actions. Free cash flow was $100 million or 144% of earnings, with a quarterly operating cash flow up 33% from the previous year.

Publication Date: Nov -02

📋 Highlights
  • Consolidated Sales Growth:: 8% total growth (3% organic) and adjusted EPS of $1.94 in Q3 2025.
  • Segment Performance:: Fire service -3% US organic sales decline vs. Detection +6% and industrial PPE +7% (fall protection double-digit growth).
  • Gross Margin Pressure:: GAAP gross margins fell to 46.5% (-140 bps YoY) due to inflation, tariffs, and FX headwinds.
  • Free Cash Flow:: $100M generated (144% of earnings) with $21M returned to shareholders via dividends and $12M in CapEx.
  • 2026 Outlook:: Strong demand expected, with MSA+ driving >50% portable instrument growth and NFPA standards potentially shifting sales to 2026.

Segment Performance

The fire service segment experienced a 3% year-over-year decline in organic sales in the US, due to market dynamics surrounding AFG funding and NFPA standard changes. In contrast, Detection's organic growth was 6%, driven by strength in both fixed and portable instruments, while industrial PPE saw a 7% increase, led by double-digit growth in fall protection. The Detection segment's growth was a highlight, with Julie Beck noting that the MSA+ subscription business had another strong quarter, with over half of portable instrument growth coming from MSA+.

Outlook and Challenges

The company maintains its low single-digit full-year organic growth outlook, expecting M&C to add approximately 2 points to full-year revenue growth and FX to be about 1% positive. However, the later-than-normal AFG grant awards and the ongoing US government shutdown are expected to impact a portion of fourth-quarter sales. The company expects continued momentum in fall protection and detection as key performance tailwinds, but the fourth quarter may not see the normal seasonal uplift due to the fire service dynamics.

Valuation and Growth Prospects

With a P/E Ratio of 12.52 and an EV/EBITDA of 15.75, the company's valuation appears reasonable, considering its growth prospects. Analysts estimate next year's revenue growth at 5.5%, which is slightly higher than the company's current outlook. The company's ROIC of 12.51% and ROE of 22.91% indicate a strong return on capital and equity. The dividend yield of 1.32% provides a relatively stable return for shareholders.

Management's Strategy

The company remains focused on SG&A productivity, pricing, and tariff mitigation plans to counter headwinds. The M&C integration is going well, with a focus on growth areas and cross-sell opportunities. The company remains active in M&A, with a solid pipeline, and has implemented price increases in the U.S., Asia, and broadly in October, due to tariffs and inflation.

3. NewsRoom

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SmartStop Self Storage REIT, Inc. Grows Presence in Orlando MSA With Acquisition of Winter Garden Facility

Nov -26

Source: businesswire.com

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Ruane Cunniff Doubles Down on MSA Safety With $134 Million Purchase: Is the Dividend King a Buy?

Nov -19

Source: fool.com

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Ruane Cunniff's Strategic Moves: Significant Reduction in Jacobs Solutions Inc.

Nov -14

Source: gurufocus.com

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MSA Safety Incorporated (MSA) Presents at Baird 55th Annual Global Industrial Conference Transcript

Nov -12

Source: seekingalpha.com

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Mineros S.A. (MNSAF) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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MSA Safety to Participate in Upcoming Investor Conferences

Nov -05

Source: prnewswire.com

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Breathing Apparatus from MSA Safety Now Certified as Compliant to the 2025 NFPA Standard

Nov -04

Source: prnewswire.com

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Die neueste tragbare Detektionslösung von MSA Safety feiert ihr Europadebüt auf der Fachmesse & Kongress A+A

Nov -04

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.17%)

6. Segments

Firefighter Safety

Expected Growth: 4.5%

MSA Safety's Firefighter Safety segment growth is driven by increasing demand for advanced protective gear, stringent safety regulations, and rising awareness of firefighter health risks. Additionally, product innovation, strategic acquisitions, and expanding presence in emerging markets contribute to the 4.5% growth rate.

Detection

Expected Growth: 3.8%

MSA Safety Incorporated's 3.8% growth is driven by increasing demand for safety products in the oil and gas industry, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation and R&D has led to the development of new products, further boosting sales. Cost savings initiatives and operational efficiencies have also contributed to the growth.

Industrial PPE and Other

Expected Growth: 4.2%

MSA Safety's Industrial PPE and Other segment growth of 4.2% is driven by increasing demand for respiratory protection products, particularly in the oil and gas industry. Additionally, the company's expansion into emerging markets and strategic acquisitions have contributed to growth. Furthermore, the rising awareness of workplace safety and regulatory requirements have boosted sales of personal protective equipment.

7. Detailed Products

Hard Hats

Protective headgear designed to prevent head injuries from falling objects, debris, and electrical hazards.

Respiratory Protection

Masks, filters, and breathing apparatus that protect against airborne contaminants, gases, and vapors.

Fall Protection

Harnesses, lanyards, and anchors designed to prevent falls from heights and protect against falling.

Gas Detection

Portable and fixed gas detectors that identify and alert users to hazardous gas levels.

Fire Service Products

Protective gear, helmets, and accessories designed for firefighters and emergency responders.

Thermal Imaging Cameras

Handheld cameras that detect heat signatures, allowing users to visualize temperature differences.

Fixed Gas and Flame Detection

Systems that continuously monitor and alert users to hazardous gas levels and flame presence.

8. MSA Safety Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

MSA Safety Incorporated operates in a niche market with high barriers to entry, reducing the threat of substitutes.

Bargaining Power Of Customers

MSA Safety Incorporated has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

MSA Safety Incorporated has a moderate level of dependence on its suppliers, but has implemented strategies to mitigate this risk.

Threat Of New Entrants

MSA Safety Incorporated operates in a highly regulated industry with high barriers to entry, reducing the threat of new entrants.

Intensity Of Rivalry

MSA Safety Incorporated operates in a highly competitive industry with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.73%
Debt Cost 8.99%
Equity Weight 61.27%
Equity Cost 8.99%
WACC 8.99%
Leverage 63.22%

11. Quality Control: MSA Safety Incorporated passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ADT

A-Score: 6.9/10

Value: 7.4

Growth: 6.6

Quality: 6.4

Yield: 5.0

Momentum: 8.0

Volatility: 8.0

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Brady

A-Score: 5.9/10

Value: 3.8

Growth: 6.2

Quality: 7.6

Yield: 3.0

Momentum: 6.0

Volatility: 9.0

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Masco

A-Score: 5.4/10

Value: 6.5

Growth: 5.9

Quality: 6.0

Yield: 4.0

Momentum: 2.5

Volatility: 7.7

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MSA Safety

A-Score: 5.3/10

Value: 2.6

Growth: 6.7

Quality: 6.6

Yield: 2.0

Momentum: 5.0

Volatility: 9.0

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Brinks

A-Score: 5.1/10

Value: 4.4

Growth: 6.7

Quality: 4.0

Yield: 2.0

Momentum: 6.0

Volatility: 7.7

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Resideo Technologies

A-Score: 5.1/10

Value: 7.3

Growth: 5.6

Quality: 3.7

Yield: 0.0

Momentum: 9.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

162.33$

Current Price

162.33$

Potential

-0.00%

Expected Cash-Flows