MSA Safety Reports Modest Sales Growth but Declining Profitability in Q2 2025

MSA Safety Incorporated reported its financial results for the second quarter and first half of 2025, revealing a modest increase in net sales but a decline in profitability compared to the previous year. For the three months ended June 30, 2025, net sales reached $474.1 million, a 2.5% increase from $462.5 million in the same period of 2024. However, net income fell to $62.8 million, or $1.59 per diluted share, down from $72.2 million, or $1.83 per diluted share, in the prior year. For the six months ended June 30, 2025, net sales totaled $895.5 million, up 2.2% from $875.8 million, while net income decreased to $122.4 million from $130.4 million.

The company's gross profit for the second quarter was $220.7 million, a decrease of 1.0% from $223.0 million in the same quarter last year, resulting in a gross profit margin of 46.6%, down from 48.2%. This decline was attributed to inflationary pressures, currency exchange losses, and lower organic volumes, which were partially offset by improved productivity and price realization. Selling, general, and administrative expenses increased by 6.7% to $112.1 million, driven by costs associated with the recent acquisition of M&C TechGroup and strategic transaction costs.

In terms of operational developments, MSA Safety completed the acquisition of M&C TechGroup on May 6, 2025, for approximately $188 million, which is expected to enhance its product offerings in gas analysis systems. The acquisition contributed $10.8 million in sales during the second quarter, with $3.6 million in the Americas segment and $7.3 million in the International segment. The company reported a total employee headcount of 5,200 as of June 30, 2025, reflecting its ongoing commitment to growth and expansion.

Geographically, the Americas segment reported net sales of $320.1 million, a 1.7% increase, while the International segment saw a 4.2% increase to $154.0 million. However, organic sales in the Americas grew by only 1.6%, while the International segment experienced a decline of 4.1%. MSA Safety anticipates low single-digit organic sales growth for the full year, although macroeconomic factors such as tariff-related uncertainties may pose risks to this outlook.

Looking ahead, MSA Safety remains focused on maintaining a balanced capital allocation strategy that prioritizes growth investments, dividend payments, and debt servicing. The company had cash and cash equivalents of $147.0 million and access to a $1.3 billion revolving credit facility, with $379.6 million drawn as of June 30, 2025. MSA Safety's management expressed confidence in the company's financial position and its ability to navigate a dynamic operating environment while continuing to invest in innovation and strategic acquisitions.