Second Quarter 2026
Filed Jul 30, 2026MSA Safety Announces Second Quarter 2026 Results
Quarterly net sales increased 6%, GAAP operating income increased 30%, adjusted diluted EPS increased 24%, and free cash flow increased 118% year-over-year. The company also cited low-double-digit total revenue growth in its full-year sales outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $503.3 million | – | 6% |
| Organic sales changenon-GAAP | 3% | – | – |
| Cost of products soldGAAP | 254,036 (In thousands) | – | – |
| Gross profitGAAP | 249,291 (In thousands) | – | – |
| Selling, general and administrativeGAAP | 114,073 (In thousands) | – | – |
| Research and developmentGAAP | 19,154 (In thousands) | – | – |
| Restructuring chargesGAAP | 2,209 (In thousands) | – | – |
| Currency exchange losses, netGAAP | 1,896 (In thousands) | – | – |
| Operating incomeGAAP | $112.0 million | – | 30 % |
| Operating income as a percentage of net salesGAAP | 22.2 % | – | 410 bps |
| Adjusted EBITDAnon-GAAP | $136.4 million | – | 17 % |
| Adjusted EBITDA as a percentage of net salesnon-GAAP | 27.1 % | – | 250 bps |
| Adjusted operating incomenon-GAAP | 121.1 million | – | 19 % |
| Adjusted operating income as a percentage of net salesnon-GAAP | 24.1 % | – | 270 bps |
| Interest expenseGAAP | 7,951 (In thousands) | – | – |
| Other income, netGAAP | (7,379) (In thousands) | – | – |
| Income before income taxesGAAP | 111,387 (In thousands) | – | – |
| Provision for income taxesGAAP | 25,193 (In thousands) | – | – |
| Net incomeGAAP | 86.2 million | – | 37 % |
| Diluted EPSGAAP | $2.23 | – | 40 % |
| Basic EPSGAAP | $2.23 | – | – |
| Adjusted earningsnon-GAAP | 93.1 million | – | 23 % |
| Adjusted diluted EPSnon-GAAP | $2.40 | – | 24 % |
| Cash flow from operating activitiesGAAP | 95,376 (In thousands) | – | – |
| Capital expendituresGAAP | (12,673) (In thousands) | – | – |
| Free cash flownon-GAAP | 82.7 million | – | 118 % |
| Free cash flow conversionnon-GAAP | 96 % | – | – |
| Six-month net salesGAAP | $967.0 million | – | 8 % |
| Six-month GAAP operating incomeGAAP | 205.0 million | – | 25 % |
| Six-month net incomeGAAP | 157.5 million | – | 29 % |
| Six-month diluted EPSGAAP | 4.05 | – | 31 % |
| Six-month adjusted EBITDAnon-GAAP | $252.7 million | – | 16 % |
| Six-month adjusted operating incomenon-GAAP | 222.2 million | – | 18 % |
| Six-month adjusted earningsnon-GAAP | 170.5 million | – | 20 % |
| Six-month adjusted diluted EPSnon-GAAP | 4.39 | – | 22 % |
| Six-month free cash flownon-GAAP | 147.8 million | – | 66 % |
| Six-month free cash flow conversionnon-GAAP | 94 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Americas SegmentDetection sales were $138,628 (In thousands), Fire Service sales were $108,243 (In thousands), and Industrial PPE and Other sales were $94,580 (In thousands). Organic sales change was 5%. | $341.5 million | – | 7 % |
| International SegmentDetection sales were $62,748 (In thousands), Fire Service sales were $53,649 (In thousands), and Industrial PPE and Other sales were $45,479 (In thousands). | $161.9 million | – | 5 % |
full-year outlook
- Revenuelow-double-digit total revenue growth
- Notemid-single-digit organic growth
- Notemid-single-digit contribution from acquisitions
- Notelow-single-digit tailwind from foreign exchange
Capital returns
- Returned a total of $47 million to shareholders through $26 million of share repurchases and dividends of $21 million.
- Cash dividends paid were (20,853) (In thousands), compared with (20,848) (In thousands).
- Company stock purchases under repurchase program were (25,679) (In thousands), compared with (29,998) (In thousands).
- The company increased its annual dividend for a 56th consecutive year.
What drove it
- Quarterly net sales increased 6% on a GAAP reported basis and 3% on an organic basis.
- Industrial PPE and Other reported sales change was 20%, with organic sales change of 16%.
- Detection reported sales change was 4%; currency translation effects were (1)% and acquisitions were (3)%, resulting in organic sales change of —%.
- Fire Service reported sales change was (1)%; currency translation effects were (1)%, resulting in organic sales change of (2)%.
- GAAP operating income margin increased to 22.2 % from 18.1 %, while adjusted operating income margin increased to 24.1 % from 21.4 %.
- The CFO stated that margin expansion was primarily driven by execution of the principles of the MSA Business System and benefited from tariff refunds.
- The acquisition of Autronica Fire and Security for ~$555 million closed in early July.
Concerns
- Fire Service organic sales change was (2)% in the second quarter.
- Restructuring charges were 2,209 (In thousands), compared with 488 (In thousands).
- Pro forma net leverage including debt for the Autronica Fire and Security acquisition is ~1.8x.
- The full-year outlook includes a low-single-digit tailwind from foreign exchange, while second-quarter consolidated currency translation effects were (2)%.
- The release did not provide gross margin, operating-expense, tax-rate, EPS, or free-cash-flow guidance.
What to watch
- Delivery of the full-year outlook for low-double-digit total revenue growth.
- The stated mid-single-digit organic growth, mid-single-digit acquisition contribution, and low-single-digit foreign-exchange tailwind in the full-year sales outlook.
- Integration of Autronica Fire and Security, which closed in early July.
- Whether Fire Service sales improve following second-quarter organic sales change of (2)%.
- Sustainability of the margin benefit from tariff refunds and continued execution of the MSA Business System.
- Pro forma net leverage of ~1.8x following the Autronica Fire and Security acquisition.
Balance sheet and cash flow
- Cash and cash equivalents were $ 200,057 (In thousands) at June 30, 2026, compared with $ 165,067 (In thousands) at December 31, 2025.
- Notes payable and current portion of long-term debt, net were $ 8,096 (In thousands) at June 30, 2026, compared with $ 8,225 (In thousands) at December 31, 2025.
- Long-term debt, net was 591,648 (In thousands) at June 30, 2026, compared with 572,709 (In thousands) at December 31, 2025.
- The company's net leverage ratio was 0.8x at quarter end.
- Including the debt for the acquisition of Autronica Fire and Security, pro forma net leverage is ~1.8x.
- Cash flow from operating activities was 95,376 (In thousands), compared with 67,218 (In thousands).
- Capital expenditures were (12,673) (In thousands), compared with (29,334) (In thousands).
- Increase (decrease) in cash, cash equivalents and restricted cash was $ 19,971 (In thousands), compared with $ (23,349) (In thousands).
Analysis
MSA reported a strong second quarter, with GAAP net sales of $503.3 million, up 6%, and organic sales growth of 3%. Growth was concentrated in Industrial PPE and Other, where reported sales change was 20% and organic sales change was 16%. Detection reported sales change was 4%, while Fire Service reported sales change was (1)% and organic sales change was (2)%.
Profitability expanded materially. GAAP operating income rose 30% to $112.0 million and the GAAP operating income margin improved to 22.2 % from 18.1 %. Adjusted operating income rose 19% to 121.1 million, with adjusted operating income margin increasing to 24.1 % from 21.4 %. Management attributed margin expansion primarily to MSA Business System execution and tariff refunds. GAAP net income increased 37% to 86.2 million, while diluted EPS increased 40% to $2.23. Adjusted diluted EPS increased 24% to $2.40.
Americas net sales rose 7% to $341.5 million, with organic sales change of 5%. International net sales increased 5% to $161.9 million. Americas GAAP operating income margin increased to 31.1 % from 28.5 %, while International GAAP operating income margin increased to 14.2 % from 8.0 %. The company reported a 620 bps increase in International GAAP operating income margin, though International adjusted operating income grew 24% and its adjusted margin increased to 15.5 % from 13.1 %.
Cash generation strengthened, with cash flow from operating activities of 95,376 (In thousands) and free cash flow of 82.7 million, up 118%. Free cash flow conversion was 96 %. MSA returned a total of $47 million to shareholders through $26 million of share repurchases and dividends of $21 million, while investing $13 million in capital expenditures. Cash and cash equivalents were $ 200,057 (In thousands), and long-term debt, net was 591,648 (In thousands), at June 30, 2026.
The company announced the acquisition of Autronica Fire and Security for ~$555 million, which closed in early July. Quarter-end net leverage was 0.8x, while pro forma net leverage including acquisition debt was ~1.8x. The full-year sales outlook calls for low-double-digit total revenue growth, supported by mid-single-digit organic growth, a mid-single-digit contribution from acquisitions, and a low-single-digit tailwind from foreign exchange. The main reported operating item requiring attention is Fire Service, where second-quarter organic sales change was (2)%.
Management, verbatim
I want to thank the MSA team for their disciplined execution across our business in the second quarter. We delivered strong operating performance through the continued advancement of our Accelerate strategy. We also announced the acquisition of Autronica Fire and Security, which closed in early July and adds a highly complementary business that builds on the strength of our existing fixed detection platform while expanding our addressable market opportunity.
Steve Blanco, President and Chief Executive Officer of MSA Safety
Our adjusted earnings per share increased by 24%, driven by 6% reported sales growth and robust margin expansion. We also generated strong free cash flow and returned capital to shareholders.
Julie Beck, MSA Safety's Chief Financial Officer
Margin expansion was primarily driven by our ongoing execution of the principles of the MSA Business System and benefited from tariff refunds. Our full-year sales outlook includes low-double-digit total revenue growth, supported by mid-single-digit organic growth, a mid-single-digit contribution from acquisitions and a low-single-digit tailwind from foreign exchange.
Julie Beck, MSA Safety's Chief Financial Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported financial metrics.
- GAAP gross margin.
- Quarterly GAAP effective tax rate.
- Full-year numerical revenue guidance.
- Full-year gross-margin guidance.
- Full-year operating-expense guidance.
- Full-year tax-rate guidance.
- Full-year EPS guidance.
- Full-year free-cash-flow guidance.
- Prior-period guidance for comparison.
- International Segment organic sales change for the second quarter in the provided filing text.
- Post-acquisition cash and debt balances following the July close of the Autronica Fire and Security acquisition.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.