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1 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Fourth Quarter and Full-Y ear 2025 Earnings Presentation February 12, 2026
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2 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Larry De Maria Executive Director of Investor Relations Introduction Purpose-led Company Driven by Our Mission: That men and women may work in safety and that they, their families, and their communities may live in health throughout the world.
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3 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Cautionary Statements Regarding Forward-looking Statements This presentation may contain (and verbal statements made by MSA® Safety Incorporated (“MSA Safety”) may contain) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance and involve various assumptions, known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity , performance or achievements to be materially different from any future results, levels of activity , performance or achievements expressed or implied by these forward-looking statements. These risks and other factors include, but are not limited to, statements in this presentation regarding our expectations of future results, performance or financial condition we express or imply in any forward-looking statements. In some cases, you can identify forward-looking statements by words such as “may ,” “will,” “should,” “expects,” “intends,” “plans,” “objectives,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or other comparable words. Actual results, performance or outcomes may differ materially from those expressed or implied by these forward-looking statements and may not align with historical performance and events due to a number of factors, including those discussed in the sections of our annual report on Form 10-K entitled “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors,” and those discussed in our Form 10-Q quarterly reports filed after such annual report. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity , performance or achievements, and caution should be exercised against placing undue reliance upon such statements, which are based only on information currently available to us and speak only as of the date hereof. We are under no duty to update publicly any of the forward-looking statements after the date of this presentation, whether as a result of new information, future events or otherwise, except as required by law.
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4 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Non-GAAP Financials T o supplement our Consolidated Financial Statements presented in accordance with generally accepted accounting principles (“GAAP”), we use, and this presentation includes, certain non-GAAP financial measures. These financial measures include organic sales change, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted earnings, adjusted earnings per diluted share, R&D investment, net debt, debt to adjusted EBITDA, net debt to adjusted EBITDA (net leverage), free cash flow and free cash flow conversion, and adjusted ROIC. These metrics are consistent with how management evaluates segment results and makes strategic decisions about the business. Additionally , these non- GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Management also uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use, and computational methods with respect thereto, may differ from the non- GAAP financial measures and key performance indicators, and computational methods, that our peers use to assess their performance and trends. The presentation of these non-GAAP financial measures does not comply with U.S. GAAP . These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for , or superior to, our reported results prepared in accordance with GAAP . When non-GAAP financial measures are disclosed, the Securities and Exchange Commission's Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP . For an explanation of these measures, together with a reconciliation to the most directly comparable GAAP financial measure, see the appendix of this presentation.
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5 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Steve Blanco President and Chief Executive Officer Business Update Purpose-led Company Driven by Our Mission: That men and women may work in safety and that they, their families, and their communities may live in health throughout the world.
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6 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation See appendix for definitions of non-GAAP measures and non-GAAP reconciliations. (1) Comparisons are year-over-year, percentage change may not calculate exactly due to rounding. 4Q and FY 2025 Performance Summary Solid 4Q Operating Results to Conclude a Dynamic 2025 Key Metrics(1) 4Q Full-Year Net Sales $511MM +2% $1.9B +4% Adj. Operating Income $122MM +1% $415MM +0% Adj. Operating Margin 23.9% (10 bps) 22.1% (80 bps) Adj. EPS $2.38 +6% $7.93 +3% Free Cash Flow $106MM +13% $295MM +22% Free Cash Flow Conversion 122% 106%
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7 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Excellent Safety Performance in 2025 T otal Lost Time Incident Rate 0.1 00.1 0.1 0.1 0.1 0.4 0.3 0.3 2022 2023 2024 2025 MSA Safety Best-in-Class Benchmark Industry Average 2025 Safety Performance MSA Business System and Continuous Improvement Culture Drove World-Class Safety Performance Behavior-Driven Safety Journey Yielding Results 0.02 0.02 0.31 0.34 0.33 0.250.34 0.34 0.34 0.34 1.2 0.9 0.9 2022 2023 2024 2025 MSA Safety Best-in-Class Benchmark Industry Average T otal Recordable Incident Rate (1) (1) (1) Source: U.S. Bureau of Labor Statistics and corporate disclosures. (2) Source: U.S. Bureau of Labor Statistics, data reported on one -year lag. Industry classification: Navigational, Measuring, Electromedical, and Control Instruments Manufacturing. (2) (2)
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8 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation 2025 Executive Summary Laser Focused Strategic Execution in a Fluid Operating Environment Delivered above-market results in Growth Accelerator product categories of detection and fall protection Applied MSA Business System principles to effectively manage mixed industrial markets, fire service timing delays Strong balance sheet enabled growth-focused capital deployment, including M&C acquisition, and cash returns to shareholders Generated strong free cash flow conversion that exceeded annual target range Accelerated and expanded MSA+ Connected Ecosystem, continuing to see rapid new customer adoption 2025 Accelerate Strategy Execution Launched new products and solutions across our premium safety portfolio; ended 2025 with 37% product vitality(1) New Product Innovations ALTAIR ioTM 6 Portable Gas Detector G1 XR 2025 Edition SCBA V-Gard H2® Full Brim Safety Helmet T otal Capital Deployed(3) Workers Protected(2) Free Cash Flow Conversion 40MM+ Global Safety Leadership 90-100% Target Range 106%$485MM +112% YoY (1) Percent of sales from products and solutions developed and launched in past 5 years. (2) As of December 31, 2024. “Workers Protected” is an estimate based on internal data, third -party and internal market research, product expert opinions, and certain assumptions, and is subject to change. Learn more in our Impact Report. (3) Includes capital used for R&D, capital expenditures, acquisitions, dividend payments, and share repurchases.
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9 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation 2026 End Market Assumptions Protecting Workers Around the World Across Diverse and Attractive End Markets Positive Neutral 40+ Million Workers Protected(1) (1) As of December 31, 2024. “Workers Protected” is an estimate based on internal data, third -party and internal market research, product expert opinions, and certain assumptions, and is subject to change. Learn more in our Impact Report. Energy and Chemical Fire Service General Industrial Industrial Construction and Infrastructure All Other End Market Trend
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10 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Julie Beck Senior Vice President and Chief Financial Officer Financial Performance and 2026 Outlook Purpose-led Company Driven by Our Mission: That men and women may work in safety and that they, their families, and their communities may live in health throughout the world.
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11 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation 4Q 2025 Financial Summary Organic Sales Growth Impacted by Timing Delays in Fire Service See appendix for definitions of non-GAAP measures and non-GAAP reconciliations. Percentage sales change may not calculate exactly due to rounding. Net Sales Adjusted Operating Income and Margin Adjusted EPS +2% REPORTED NET SALES GROWTH 23.9% ADJUSTED OPERA TING MARGIN +6% ADJUSTED EPS GROWTH • Sales: -3% organic, +3% acquisitions, +2% FX – Americas: -1% reported (-3% organic) – International: +8% reported (-3% organic) • Positive contributions from price and M&C T echGroup acquisition, partially offset by lower volume • High-teens organic growth in detection and LSD growth in industrial PPE was offset by contraction in fire service • Adjusted operating margin: -10 bps Y oY , +180 bps sequentially – Americas: 31.0% – International: 16.8% • Adjusted EBITDA margin of 26.6%, -30 bps Y oY • Consistent adjusted operating margin reflects price mitigation of tariffs and inflation, transactional FX benefit and positive mix • Lower year-over-year adjusted effective tax rate • Detection volume increase • M&C accretive to quarterly adjusted EPS $500MM $511MM 4Q 2024 4Q 2025 $2.25 $2.38 4Q 2024 4Q 2025 $120MM $122MM 4Q 2024 4Q 2025 24.0% 23.9%
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12 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Full-Y ear 2025 Financial Summary Low-Single Digit Organic Sales Growth; 20% Adjusted ROIC Including Impact of M&C Acquisition See appendix for definitions of non-GAAP measures and non-GAAP reconciliations. Percentage sales change may not calculate exactly due to rounding. Net Sales Adjusted Operating Income and Margin Adjusted EPS +4% REPORTED NET SALES GROWTH 22.1% ADJUSTED OPERA TING MARGIN +3% ADJUSTED EPS GROWTH • Sales: +1% organic, +2% acquisitions, +1% FX – Americas: +1% reported (~flat organic) – International: +9% reported (+1% organic) • DD organic growth in detection and LSD growth in industrial PPE partially offset by contraction in fire service • Adjusted operating margin: -80 bps Y oY – Americas: 28.9% – International: 15.2% • Adjusted EBITDA margin of 25.2%, -80 bps Y oY • Adjusted operating margin reflects impacts from inflation, tariffs and transactional FX partially offset by price / mix and improved productivity • M&C $0.09 accretive to full-year adjusted EPS • Higher costs from tariffs, inflation and transactional FX, partially offset by price • Lower interest expense due to lower weighted-average interest rate, partially offset by higher debt from M&C acquisition $1,808MM $1,875MM FY 2024 FY 2025 $7.70 $7.93 FY 2024 FY 2025 $414MM $415MM FY 2024 FY 2025 22.9% 22.1%
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13 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation 4Q and Full Y ear 2025 Free Cash Flow and Financial Leverage Strong Cash Generation and Ample Liquidity Support Accelerate Strategy See appendix for definitions of non-GAAP measures and non-GAAP reconciliations. (1) Includes cash on hand and committed Revolving Credit Facility capacity. Free Cash Flow Net Leverage Fourth Quarter Full-Y ear DISCIPLINED CAPIT AL ALLOCA TION AND CASH FLOW GENERA TION ROBUST BALANCE SHEET WITH 0.9X NET LEVERAGE AND AMPLE LIQUIDITY • FCF conversion rate of 122% • Capital expenditures of $16MM • Returned $61MM to shareholders via dividends of $21MM and share repurchases of $40MM • FCF conversion rate of 106% • Capital expenditures of $68MM • M&C acquisition totaled $189MM • Returned $162MM to shareholders via dividends of $82MM and share repurchases of $80MM • Liquidity of $1.2B(1) • $416MM of net debt at year end, have paid down ~$100MM of M&C debt • Full year adjusted EBITDA totaled $473MM • Strong balance sheet and ample liquidity enable significant capital deployment optionality to support Accelerate growth strategy $93MM $106MM 4Q 2024 4Q 2025 $242MM $295MM FY 2024 FY 2025 0.7x 0.9x 12/31/2024 12/31/2025
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14 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation 2026 Outlook Mid-Single Digit Organic Sales Growth Outlook; Reflects Growth Across Diverse Portfolio (1) Percent of net sales for the year ended December 31, 2025. (2) Acquisition of M&C TechGroup in May 2025. % NET SALES(1) DIVERSE END MARKETS DETECTION • Fixed gas & flame detection • Refrigerant detection & identification • Portable gas detection • Gas analysis & process safety • Energy & chemical • Utilities • HVAC-R • Food retail • Water & wastewater • Industrial FIRE SERVICE • SCBA • Helmets • Protective apparel • Government fire service • Municipal fire service • First responder INDUSTRIAL PPE AND OTHER • Industrial head protection • Fall protection • APR & other PPE • Energy & utilities • Construction • Manufacturing • Industrial • Healthcare & pharma 41% 34% 25% OPERA TING ENVIRONMENT UPDA TE TAILWINDS + Increasing global safety standards creating demand for sophisticated safety products and solutions; diverse end markets provide resiliency + Favorable underlying demand for fixed and portable detection, including MSA+ connected ecosystem solutions + Carry-over from fire service late AFG funding and U.S. Government shutdown in 2025 + Industrial PPE to benefit from continued momentum in fall protection + Positive contribution from strategic pricing actions HEADWINDS – Continued macroeconomic, tariff and geopolitical policy uncertainty – Mixed industrial end market demand globally – Non-recurrence of large detection orders in Latin America ADDITIONAL FULL-YEAR MODELING CONSIDERA TIONS • M&A Contribution(2): +1% • Interest Expense: ~$28-$31MM / Tax Rate: 24%-25% • Pension and Other Non-Operating Income: Increase of ~$4-$5MM over 2025 levels
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15 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Steve Blanco President and Chief Executive Officer 2026 Strategic Priorities and Closing Remarks Purpose-led Company Driven by Our Mission: That men and women may work in safety and that they, their families, and their communities may live in health throughout the world.
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16 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation 2026 Strategic Priorities Entering 2026 Steadfast in Our Commitment to Serving Our Mission, Accelerating Value Creation 2026 Accelerate Strategic Priorities CONTINUED SAFETY LEADERSHIP AND GROWTH FOCUS Leveraging technology to lead in the safety market with premium innovative solutions • Leverage best-in-class new product development process to expand our product and solution offerings across our portfolio; continue momentum in detection and fall protection • Continue growth acceleration in MSA+ Connected Ecosystem, begin shipment of AL T AIR io 6 OPERA TIONAL EXCELLENCE Enhance margins through driving scale and operating efficiency • Achieve price/cost neutrality in first half of 2026 • Further optimize operating footprint; drive higher productivity conversion CAPIT AL ALLOCA TION Leverage strong balance sheet and financial profile to effectively deploy capital in alignment with our capital allocation strategy • Prioritize R&D and technology investments to drive organic growth in high return categories • Leverage strong M&A pipeline; actively pursue bolt-on acquisition opportunities • Return cash to shareholders via dividend and share repurchases
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17 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation 1 2 3 Strategic execution in 2025 delivered solid financial results while navigating challenging macro conditions Strong financial profile provides balanced capital deployment optionality, including growth investments and returns to shareholders Executing Accelerate strategy to deliver profitable growth in 2026 and beyond; 2026 MSD organic sales growth outlook Key T akeaways Positioned to Deliver Stakeholder Value in 2026 and Beyond Thank Y ou to Our Associates!
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18 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Q&A
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19 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Appendix
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20 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation 4.3% R&D Investment(1,2) MSA Safety (NYSE: MSA) Snapshot See appendix for definitions of non-GAAP measures and non-GAAP reconciliations. (1) Key metrics for the year ended December 31, 2025. (2) Percentage of net sales; includes capitalized software development costs. (3) Percent of sales from products developed and launched in past 5 years. (4) Detection includes Fixed Gas & Flame Detection and Portable Gas Detection. Fire Service includes Self-Contained Breathing Apparatus (SCBA) and Firefighter Helmets & Protective Apparel. Industrial PPE & Other includes Industrial Head Protection, Fall Protection, and Other PPE Sales. Net Sales by Segment(1) Net Sales by Product Category(1,4) 33% International 67% Americas 25% Industrial PPE & Other 34% Fire Service 41% Detection $1.9B Net Sales(1) 37% Product Vitality(3) 22.1% Adj. Operating Margin(1) 0.9x Net Leverage(1) 55 Y ears Consecutive Dividend Increases 46.5% Gross Profit Margin(1)
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21 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation MSA Safety | Accelerate Strategy CONTINUE TO BE THE LEADER IN PREMIUM SAFETY SOLUTIONS IMPLEMENT T ARGETED GROWTH ACCELERA TORS APPL Y MSA BUSINESS SYSTEM TO ENABLE EXCELLENCE ALLOCA TE CAPIT AL EFFECTIVEL Y • Leverage scale, market leadership, and customer-centric innovation to drive above-market profitable growth • Deliver excellence in customer experience and commercial execution • Enhance diversification across end markets, geographies, and product portfolio to fortify resilient organic growth • Continue to evolve from hardware supplier to system solutions provider, improving customer safety outcomes and generating recurring revenue • Lean into high-growth end markets such as detection and fall protection with distinct safety megatrends around connectivity and productivity solutions • Enhance portfolio through strategic acquisitions • Drive excellence in pricing, operations, resource allocation, and balance sheet efficiency • Set foundation for digital automation • Empower high-performance teams and leaders • Win as a team with consistent tools, processes, and behaviors • Leverage premier financial profile to deliver sustainable long-term growth • Maintain disciplined, growth- oriented capital allocation strategy, priorities include: – Organic growth – M&A – 55 Years of increasing dividend – Share repurchases
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22 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation MSA Safety | Business System (MBS) FOUNDATION TO ACHIEVE SUPERIOR AND SUSTAINABLE RESULTS (1) Sales, Inventory, and Operations Planning. BEHAVIORS The way we act and react to changes and challenges • Relentless focus on improving our performance on new product development, SG&A, project management, and global business service PROCESSES How we work with others and apply tools • Working Capital: SIOP(1) to forecast supply and demand and apply global best practices in transaction processing TOOLS Ways to identify and eliminate waste, standardize work, and problem solve • Manufacturing Execution System (MES): gaining greater visibility and real-time data from our manufacturing plants through technology
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23 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Resilient Organic Revenue Growth $2.1B – $2.3B • 3 – 5% organic revenue growth • Market growth, customer-centric innovation, and commercial excellence • Macro secular safety trends Operating Margin(1) Expansion 23.5% – 25.0% • T arget 30 – 50 bps annually • MSA Business System evolution across global business • Continued focus on operating efficiency Continued EPS(1) Compounding $10.00 – $11.00 • Strategy evolution delivers new base of expansion • 30 – 40% incremental operating margins Capital Deployment Optionality $1.5B+(2) • Consistent organic growth investment • Sustained dividend + share repurchases • Accretive acquisitions from free cash flow generation and available debt capacity • Continue performance of 20%+ Adjusted ROIC MSA Safety | 2028 Financial T argets OUR STRATEGY FUELS PROVEN SHAREHOLDER VALUE CREATION (1) Targets refer to adjusted metric, see appendix for definitions of non -GAAP measures. (2) Reflects expected cumulative free cash flow after dividends and share repurchase and available debt capacity. MISSION-DRIVEN REINVESTMENT + + + +
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24 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Reconciliation of Non-GAAP Financial Measures
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25 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Reconciliation of Non-GAAP Financial Measures Organic Sales Change (Unaudited) (a) Detection includes Fixed Gas and Flame Detection and Portable Gas Detection. (b) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel. (c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core. Management believes that organic sales change is a useful metric for investors, as foreign currency translation, acquisitions and divestitures can have a material impact on sales change trends. Organic sales change highlights ongoing business performance excluding the impact of fluctuating foreign currencies, acquisitions and divestitures. There can be no assurances that MSA's definition of organic sales change is consistent with that of other companies. As such, management believes that it is appropriate to consider sales change determined on a GAAP basis in addition to this non-GAAP financial measure.
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26 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Reconciliation of Non-GAAP Financial Measures Adjusted Operating Income and Adjusted EBITDA (Unaudited) (a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during our evaluation of or in connection with acquisitions and divestitures. These costs are included in selling, general and administrative expense in the Consolidated Statements of Operations. Adjusted operating income and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are the measures used by management to evaluate segment performance and allocate resources. As such, management believes these measures are useful metrics for investors. Adjusted operating income is defined as operating income excluding restructuring charges, currency exchange gains / losses, amortization of acquisition-related intangible assets, and transaction costs and Adjusted EBITDA is defined as adjusted operating income plus depreciation and amortization. Adjusted operating income and adjusted EBITDA are not recognized terms under GAAP and therefore do not purport to be alternatives to operating income or operating margin as a measure of operating performance. The company's definition of adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. As such, management believes that it is appropriate to consider operating income and net income determined on a GAAP basis in addition to these non-GAAP measures. 2025 2024 2025 2024 (In thousands) Adjusted EBITDA $ 135,999 $ 134,642 $ 472,911 $ 469,431 Less: Depreciation and amortization 14,076 14,484 58,313 55,159 Adjusted operating income 121,923 120,158 414,598 414,272 Less: Currency exchange losses (gains), net 2,564 (1,077) 15,801 3,638 Acquisition-related amortization 3,582 2,286 12,615 9,174 Restructuring charges 1,427 653 3,897 6,397 Transaction costs (a) 465 652 10,467 886 Net cost for product-related legal matter - - - 5,000 GAAP operating income $ 113,885 $ 117,644 $ 371,818 $ 389,177 Less: Interest expense 8,431 7,333 31,799 36,889 Other income, net (7,794) (6,503) (26,379) (22,718) Income before income taxes 113,248 116,814 366,398 375,006 Provision for income taxes 26,315 28,868 87,474 90,039 Net income $ 86,933 $ 87,946 $ 278,924 $ 284,967 Net Sales $ 510,913 $ 499,696 $ 1,874,814 $ 1,808,140 Adjusted EBITDA 135,999 134,642 472,911 469,431 Adjusted EBITDA% 26.6% 26.9% 25.2% 26.0% Adjusted Operating Income 121,923 120,158 414,598 414,272 Adjusted Operating Margin % 23.9% 24.0% 22.1% 22.9% 12 Months Ended December 31, Three Months Ended December 31,
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27 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Reconciliation of Non-GAAP Financial Measures Adjusted Earnings and Adjusted Earnings per Diluted Share (Unaudited) (a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during our evaluation of or in connection with acquisitions and divestitures. These costs are included in selling, general and administrative expense in the Consolidated Statements of Operations. Management believes that adjusted earnings and adjusted earnings per diluted share are useful measures for investors, as management uses these measures to internally assess the company’s performance and ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that MSA's definition of adjusted earnings is consistent with that of other companies. As such, management believes that it is appropriate to consider both net income determined on a GAAP basis as well as adjusted earnings. (In thousands, except per share amounts) 2025 2024 % Change 2025 2024 % Change Net income $ 86,933 $ 87,946 (1%) $ 278,924 $ 284,967 (2%) Currency exchange losses (gains), net 2,564 (1,077) 15,801 3,638 Restructuring charges 1,427 653 3,897 6,397 Acquisition-related amortization 3,582 2,286 12,615 9,174 Transaction costs (a) 465 652 10,467 886 Asset related losses 419 (141) 1,408 819 Pension settlement - - 721 1,308 Net cost for product related legal matter - - - 5,000 Income tax expense on adjustments (2,019) (1,277) (11,904) (7,689) Adjusted earnings $ 93,371 $ 89,042 5% $ 311,929 $ 304,500 2% Adjusted earnings per diluted share $ 2.38 $ 2.25 6% $ 7.93 $ 7.70 3% Twelve Months Ended December 31,Three Months Ended December 31,
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28 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Reconciliation of Non-GAAP Financial Measures Return on Invested Capital, ROIC (Unaudited) Management believes that ROIC is a useful measure for investors as it assists in showing how effectively the Company utilizes capital invested in our operations. ROIC is calculated by dividing adjusted ROIC earnings (defined as adjusted earnings plus after-tax interest expense) by the average debt (sum of short and long-term) plus stockholders’ equity less cash and cash equivalents “Average Invested Capital” for the previous five quarters. Twelve Months Ended December 31, (In thousands, except percentage amounts) 2025 Adjusted earnings 311,929$ Adjusted ROIC earnings Pre-Tax interest expense 31,799 Adjusted effective tax rate 24.1% Adjusted after-tax interest expense 24,135 Adjusted ROIC earnings $ 336,064 Average invested capital (previous 5 quarters) Debt 579,787$ Shareholder's equity 1,251,101 Cash and cash equivalents 163,446 Average Invested Capital $ 1,667,442 Adjusted return on invested capital (ROIC) 20.2% Adjusted Effective Tax Rate Effective tax rate 23.9% Share based payments 0.2% Adjusted effective tax rate 24.1%
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29 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Reconciliation of Non-GAAP Financial Measures Return on Invested Capital, ROIC Continued (Unaudited) Management believes that ROIC is a useful measure for investors as it assists in showing how effectively the Company utilizes capital invested in our operations. ROIC is calculated by dividing adjusted ROIC earnings (defined as adjusted earnings plus after-tax interest expense) by the average debt (sum of short and long-term) plus stockholders’ equity less cash and cash equivalents “Average Invested Capital” for the previous five quarters. Dec '25 Sep '25 Jun '25 Mar '25 Dec '24 Average Debt 580,934$ 628,583$ 679,348$ 502,057$ 508,013$ 579,787$ Shareholder's equity 1,367,012 1,302,390 1,252,642.0 1,190,145.0 1,143,318.0 1,251,101 Cash and cash equivalents 165,067 169,998 146,988 170,617 164,560 163,446 Total Invested Capital 1,782,879$ 1,760,975$ 1,785,002$ 1,521,585$ 1,486,771$ 1,667,442$ For the Twelve Months Ended December 31, 2025
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30 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Reconciliation of Non-GAAP Financial Measures Free Cash Flow (Unaudited) Management believes that free cash flow is a meaningful measure for investors. Management reviews cash from operations after deducting capital expenditures because these expenditures are necessary to promote growth of MSA’s business and are likely to produce cash from operations in future periods. It is important to note that free cash flow does not reflect the residual cash balance of the company for discretionary spending since other items, including debt and dividend payments, are deducted from free cash flow before arriving at the company’s ending cash balance. Management defines free cash flow conversion as free cash flow divided by net income. There can be no assurances that MSA's definition of free cash flow is consistent with that of other companies. As such, management believes that it is appropriate to consider cash from operating activities determined on a GAAP basis as well as free cash flow. (In thousands, except percentage amounts) 2025 2024 2025 2024 Cash flow from operating activities $ 122,354 $ 107,908 $ 363,867 $ 296,428 Capital expenditures (16,334) (14,409) (68,438) (54,223) Free cash flow $ 106,020 $ 93,499 $ 295,429 $ 242,205 Net Income 86,933 87,946 278,924 284,967 Free cash flow conversion 122% 106% 106% 85% Three Months Ended December 31, December 31, Twelve Months Ended
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31 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Reconciliation of Non-GAAP Financial Measures Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited) (a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during our evaluation of or in connection with acquisitions and divestitures. These costs are included in selling, general and administrative expense in the Consolidated Statements of Operations. Management believes that Debt to adjusted EBITDA and Net debt to adjusted EBITDA are useful measures for investors, as management uses these measures to internally assess the company’s liquidity and balance sheet strength. There can be no assurances that that MSA's definition of Debt to adjusted EBITDA and Net debt to adjusted EBITDA is consisten t with that of other companies. (In thousands) Twelve Months Ended December 31, Twelve Months Ended December 31, 2025 2024 Operating income $ 371,818 $ 389,177 Depreciation and amortization 58,313 55,159 Currency exchange losses, net 15,801 3,638 Restructuring charges 3,897 6,397 Acquisition-related amortization 12,615 9,174 Net cost for product related legal matter - 5,000 Transaction costs (a) 10,467 886 Adjusted EBITDA $ 472,911 $ 469,431 Total end-of-period debt 580,934 508,013 Debt to adjusted EBITDA 1.2 1.1 Total end-of-period debt $ 580,934 $ 508,013 Total end-of-period cash and cash equivalents 165,067 164,560 Net debt $ 415,867 $ 343,453 Net debt to adjusted EBITDA 0.9 0.7
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32 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation Reconciliation of Non-GAAP Financial Measures R&D Investment (Unaudited) Management believes that total R&D investment is a meaningful measure for investors. Management includes capitalized software development costs when evaluating total research and development expenditures as it believes it better represents its overall spend. Management defines R&D investment as research and development expense plus capitalized software development cost. As such, management believes that it is appropriate to consider research and development expense determined on a GAAP basis as well as total R&D investment. (In thousands, except percentage amounts) 2025 2024 Research and development expense $ 65,343 $ 66,526 Capitalized software development costs 14,914 12,993 Total R&D investment $ 80,257 $ 79,519 Net sales $ 1,874,814 $ 1,808,140 R&D investment (% net sales) 4.3% 4.4% Twelve Months Ended December 31,
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33 MSA Safety | Fourth Quarter and Full-Year 2025 Earnings Presentation