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Dec 31, 2022

MSA Q4 2022 Earnings Report

MSA Safety reported record quarterly sales and strong operating performance driven by strength across product portfolio and healthy customer demand.

Key Takeaways

MSA Safety Incorporated reported record net sales of $443 million for the fourth quarter of 2022, an increase of 8% on a reported basis and 11% on a constant currency basis. GAAP operating income was $71 million, or 15.9% of sales, and adjusted operating income was $96 million, or 21.6% of sales. The company recorded GAAP earnings of $51 million or $1.31 per diluted share and adjusted earnings of $71 million or $1.80 per diluted share.

Delivered record net sales of $443 million, an increase of 8% on a reported basis and 11% on a constant currency basis.

Generated GAAP operating income of $71 million, or 15.9% of sales, and adjusted operating income of $96 million, or 21.6% of sales.

Recorded GAAP earnings of $51 million or $1.31 per diluted share and adjusted earnings of $71 million or $1.80 per diluted share.

Achieved operating cash flow of $54 million. Free cash flow was $40 million, representing 77% of net income.

Total Revenue
$443M
Previous year: $410M
+8.0%
EPS
$1.8
Previous year: $1.67
+7.8%
Operating Margin
15.9%
Adjusted Operating Margin
21.6%
Adjusted EBITDA
$108M
Gross Profit
$197M
Previous year: $182M
+8.6%
Cash and Equivalents
$163M
Previous year: $141M
+15.6%
Free Cash Flow
$40M
Previous year: $56.1M
-28.7%
Total Assets
$2.38B
Previous year: $2.4B
-0.8%

MSA

MSA

MSA Revenue by Segment

MSA Revenue by Geographic Location

Forward Guidance

The company expects to deliver full year growth in the mid-single digits, healthy incremental margins and robust cash flow conversion in 2023.

Positive Outlook

  • Strong momentum entering 2023.
  • Continued demand and growth opportunities across markets.
  • Resilient business due to strategic portfolio composition.
  • Diverse end markets and geographies.
  • Elevated backlog could help cushion an economic slowdown.

Challenges Ahead

  • Operating environment expected to remain challenging as we progress through 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income