MSA Safety Reports Significant Financial Turnaround, Net Income of $197M for Nine Months Ended September 30, 2024

MSA Safety Incorporated reported significant financial improvements for the nine months ended September 30, 2024, compared to the same period in 2023. The company achieved a net income of $197.0 million, a substantial recovery from a net loss of $17.8 million in the prior year. This turnaround was supported by a notable increase in cash flow from operating activities, which generated $188.5 million, contrasting sharply with a cash usage of $66.1 million in the previous year.

Total net sales for the nine-month period reached $1.31 billion, reflecting a modest increase of $16.1 million, or 1.2%, from $1.29 billion in 2023. The Americas segment contributed $909.7 million, up 0.8%, while the International segment saw a 2.4% increase to $398.7 million. The gross profit for the period was $626.0 million, a rise of $12.0 million, resulting in a gross profit margin of 47.8%, slightly up from 47.5% in the previous year.

In terms of expenses, selling, general, and administrative (SG&A) expenses increased by 1.6% to $294.3 million, representing 22.5% of net sales. Research and development expenses also saw a slight increase to $49.7 million. Notably, restructuring charges decreased to $5.7 million from $8.4 million in the prior year, indicating improved operational efficiency.

The company’s balance sheet showed total assets of $2.24 billion as of September 30, 2024, up from $2.17 billion at the end of 2023. Cash and cash equivalents increased to $154.4 million, while total current liabilities decreased to $314.5 million. Long-term debt was reduced to $527.8 million, down from $575.2 million, reflecting the company’s efforts to manage its debt levels effectively.

MSA Safety also undertook strategic restructuring initiatives, incurring $1.2 million in restructuring charges for the third quarter of 2024, down from $3.3 million in the same quarter of 2023. The company continues to focus on optimizing its manufacturing footprint and enhancing operational efficiencies.

In terms of market performance, net sales for the third quarter of 2024 were $432.7 million, a decrease of 3.1% from $446.7 million in the same quarter of 2023. The Americas segment experienced a 4.7% decline, primarily due to reduced sales in the fire service sector, particularly self-contained breathing apparatus (SCBA). Conversely, the International segment saw a slight increase in sales.

Overall, MSA Safety's financial results for the nine months ended September 30, 2024, demonstrate a strong recovery in profitability and operational performance, alongside strategic initiatives aimed at enhancing efficiency and managing costs.