MSA Safety Reports Q1 2025 Financial Results with $59.6M Net Income

MSA Safety Incorporated reported its financial results for the first quarter of 2025, revealing a net income of $59.6 million, or $1.51 per diluted share, compared to $58.1 million, or $1.47 per diluted share, in the same period of 2024. The company's total revenue for the quarter reached $421.3 million, marking a 1.9% increase from $413.3 million year-over-year. This growth was partially attributed to approximately $10 million in sales pulled forward due to tariff considerations. The Americas segment experienced a slight decline in sales, down 0.8% to $293.1 million, while the International segment saw an 8.8% increase, reaching $128.2 million.

In terms of profitability, MSA's gross profit decreased by 1.1% to $193.4 million, resulting in a gross profit margin of 45.9%, down from 47.3% in the prior year. The decline in margin was attributed to foreign currency headwinds and inflation, although it was somewhat offset by higher sales volume and a favorable product mix. Selling, general, and administrative expenses remained stable at $94 million, representing 22.3% of net sales, a slight improvement from 22.8% in the previous year. The company also recorded restructuring charges of $1.9 million, down from $3 million in the same quarter last year, reflecting ongoing efforts to optimize operations in response to macroeconomic conditions.

Operationally, MSA's cash flow from operating activities increased to $61.8 million, up from $50.9 million in the prior year, primarily due to lower cash used for variable compensation. The company maintained a strong liquidity position with cash and cash equivalents totaling $170.6 million as of March 31, 2025. MSA's employee headcount remained stable, and the company continues to focus on strategic growth initiatives, including investments in research and development, which totaled $15.7 million for the quarter.

Looking ahead, MSA Safety anticipates low single-digit organic sales growth for the full year, supported by stable order trends and a strong commercial pipeline. However, the company acknowledged potential risks from macroeconomic uncertainties, particularly related to global tariff policies. MSA remains committed to its balanced capital allocation strategy, which includes investing in growth opportunities, returning cash to shareholders through dividends and share repurchases, and maintaining a healthy balance sheet to navigate future challenges.