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Mar 31, 2023

MSA Q1 2023 Earnings Report

MSA Safety experienced double-digit sales growth due to continued strong demand.

Key Takeaways

MSA Safety reported a strong first quarter with double-digit revenue growth driven by robust customer demand across product categories and key regions. The company delivered solid incremental margins and remains focused on sustainable value creation for shareholders.

Net sales reached $398 million, a 20% increase (22% on a constant currency basis).

GAAP operating loss was $(60) million, or (15.1)% of sales, while adjusted operating income was $77 million, or 19.4% of sales. The GAAP operating loss includes a pre-tax charge of $129 million related to the legacy liability divestiture.

GAAP net loss was $(150) million, or $(3.83) per diluted share, and adjusted earnings were $54 million, or $1.36 per diluted share. The GAAP net loss includes a one-time, after-tax loss of $200 million related to the legacy liability divestiture.

The company completed the divestiture of a subsidiary holding legacy product liability claims.

Total Revenue
$398M
Previous year: $331M
+20.4%
EPS
$1.36
Previous year: $1.1
+23.6%
Adjusted Operating Margin
19.4%
Previous year: 16.3%
+19.0%
Adjusted EBITDA
$89.6M
Previous year: $65.7M
+36.5%
Gross Profit
$181M
Previous year: $143M
+27.0%
Cash and Equivalents
$139M
Previous year: $147M
-5.7%
Free Cash Flow
-$286M
Previous year: $16.5M
-1827.9%
Total Assets
$2.18B
Previous year: $2.42B
-9.8%

MSA

MSA

MSA Revenue by Segment

MSA Revenue by Geographic Location

Forward Guidance

MSA Safety is increasing its sales growth outlook to high single to low double digits for the full year and remains focused on delivering healthy margins and robust cash flow conversion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income