Slides
Page 1
1 MSA Safety | Third Quarter 2026 Earnings Presentation Third Quarter 2026 Earnings Presentation November 3, 2026
Page 2
2 MSA Safety | Third Quarter 2026 Earnings Presentation Tyler Herzing Senior Manager, Investor Relations Introduction Industrial Safety Technology 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.
Page 3
3 MSA Safety | Third Quarter 2026 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.
Page 4
4 MSA Safety | Third Quarter 2026 Earnings Presentation Non-GAAP Financials To 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. 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.
Page 5
5 MSA Safety | Third Quarter 2026 Earnings Presentation Steve Blanco President and Chief Executive Officer Business Update Industrial Safety Technology 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.
Page 6
6 MSA Safety | Third Quarter 2026 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. 3Q 2026 Financial Performance 15% Total Sales Growth: 6% Organic, 8% Autronica, 1% FX Key Metrics(1) 3Q 2026 Net Sales $536MM +15% Adjusted Operating Income $115MM +11% Adjusted Operating Margin 21.4% (70) bps Adjusted EPS $2.09 +8% Free Cash Flow $68MM (Conversion: 117%)
Page 7
7 MSA Safety | Third Quarter 2026 Earnings Presentation Accelerate Strategy Update 3Q 2026 Executive Summary Strategic Investments Support Higher Long-Term Growth Enhanced the portfolio through strategic acquisition: Completed acquisition of Autronica Fire and Security in Detection Disciplined, growth-oriented capital allocation strategy: Supported by strong balance sheet and free cash flow generation Delivered mid-teens total sales growth in 3Q: Well positioned to deliver on full-year low double-digit sales growth outlook Strategic Growth Investments and Strong Balance Sheet Support Long-Term Shareholder Value Creation ALTAIR io ® 6 portable gas detector momentum underscores the growing demand for advanced connected safety technology, reflecting increased customer adoption of MSA+ connected offerings Safety leadership via technology-led innovation: Began shipping G1TM City Edition SCBA, and received largest order for MSA+ connected solutions
Page 8
8 MSA Safety | Third Quarter 2026 Earnings Presentation G1 City Edition SCBA Advancing Technology Leadership with Evolution of the G1 • Strengthens MSA’s leading position in the Americas SCBA market, well positioned to capture key market share opportunities in North America • Began shipping units to customers in the third quarter • Firefighter-informed design enhancements developed through customer feedback to improve operational effectiveness: ‒ Enhanced situational awareness through integration with the LUNAR® connected device, thermal imaging, and FireGridTM connectivity • Designed to support daily use, long-term performance and ergonomics: ‒ Reduced weight with standard configuration ‒ Adjustable fit and streamlined cleaning and maintenance features New Product Spotlight Integrated LUNAR Beacon Technology enables LUNAR Connected Devices to help find firefighters wearing a G1 City Edition SCBA during search-and- rescue operations Delivering Market-Leading Firefighter Innovation via Voice-of-Customer New Product Development
Page 9
9 MSA Safety | Third Quarter 2026 Earnings Presentation Julie Beck Senior Vice President and Chief Financial Officer Financial Performance and 2026 Outlook Industrial Safety Technology 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.
Page 10
10 MSA Safety | Third Quarter 2026 Earnings Presentation 3Q 2026 Financial Summary Mid-Teens Total Sales Growth and High-Single-Digit Adjusted Earnings Per Share Growth 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 +15% REPORTED NET SALES GROWTH 21.4% ADJUSTED OPERATING MARGIN +8% ADJUSTED EPS GROWTH • Sales: +6% organic, +8% acquisitions, +1% FX • Positive contributions from price and volume • Americas: +8% reported (+7% organic) – Broad based growth led by strength in the Fire Service, MSA+ and head protection • International: +28% reported (+2% organic) – Growth in Fire Service and Industrial PPE, Middle East conflict a headwind in Detection – Autronica sales in line with expectations • Adjusted operating margin: (70) bps YoY – Primarily reflects Autronica dilution – Americas: 28.6% – International: 16.1% • Adjusted EBITDA margin of 24.4%, (100) bps YoY • Increased organic sales and margin expansion were the primary drivers of adjusted EPS growth • Benefit from share repurchases • Autronica acquisition neutral to adjusted EPS, expected to be accretive in first full year of ownership $468MM $536MM 3Q 2025 3Q 2026 $1.94 $2.09 3Q 2025 3Q 2026 $104MM $115MM 3Q 2025 3Q 2026 22.1% 21.4%
Page 11
11 MSA Safety | Third Quarter 2026 Earnings Presentation 3Q 2026 Free Cash Flow and Financial Leverage Strong Free Cash Flow Conversion; Balance Sheet Remains Positioned to Advance Accelerate Free Cash Flow Net Leverage DISCIPLINED CAPITAL ALLOCATION AND CASH FLOW GENERATION • YoY free cash flow variance primarily reflects costs associated with the Autronica acquisition • Returned $34MM to shareholders via share repurchases of $13MM and dividends of $21MM • Year to date free cash flow conversion of 100% ACTIONING STRONG BALANCE SHEET TO CREATE SHAREHOLDER VALUE • Strong balance sheet and ample liquidity enable significant capital deployment optionality to support Accelerate growth strategy • Closed Autronica acquisition for $563MM, net of cash acquired; net leverage lower than projected, aided by $50MM of post acquisition debt repayment • Ample liquidity of ~$655MM(1) 0.8x 1.7x 6/30/2026 9/30/2026 $100MM $68MM 3Q 2025 3Q 2026 See appendix for definitions of non-GAAP measures and non-GAAP reconciliations (1) Includes cash on hand and committed Revolving Credit Facility capacity.
Page 12
12 MSA Safety | Third Quarter 2026 Earnings Presentation 2026 Outlook Maintain Low-Double-Digit Total Revenue Growth Outlook, Supported by Mid-Single-Digit Organic Growth, a Mid-Single-Digit Contribution from Acquisitions and a Low-Single-Digit Tailwind from FX (1) Percent of net sales for the twelve-months ended September 30, 2026. (2) Includes M&C TechGroup acquisition through April and Autronica Fire and Security acquisition from July 9 th through year end 2026. (3) Based on September rates. % NET SALES(1) DIVERSE END MARKETS DETECTION • Fixed gas & flame detection • Fire protection & alarm systems • 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 45% 31% 24% OPERATING ENVIRONMENT UPDATE TAILWINDS + Strong order momentum and second half demand pipeline in U.S. fire service + North American industrial momentum continues + Favorable underlying demand for fixed and portable detection, including MSA+ connected ecosystem solutions HEADWINDS – Continued macroeconomic, tariff and geopolitical policy uncertainty • Middle East conflict impacting near-term order delivery and supply chain logistics • Mixed economic growth in Europe and Latin America – Non-recurrence of large detection orders in Latin America ADDITIONAL FULL-YEAR MODELING CONSIDERATIONS • M&A Contribution:(2) +MSD / Foreign Exchange:(3) FX translation 1%-2% revenue tailwind • Interest Expense: ~$40-$43MM / Tax Rate: 24%-25% (4Q: 25%-26%) • Pension and Other Non-Operating Income: Increase of ~$4-$5MM over 2025 levels
Page 13
13 MSA Safety | Third Quarter 2026 Earnings Presentation Steve Blanco President and Chief Executive Officer Closing Remarks Industrial Safety Technology 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.
Page 14
14 MSA Safety | Third Quarter 2026 Earnings Presentation 3Q 2026 Key Takeaways Executing Accelerate Strategy to Create Stakeholder Value 1 2 3 Delivered mid-teens total sales growth, high- single digit adjusted EPS growth and strong free cash flow conversion Strong financial profile provides balanced capital deployment optionality, including growth investments and returns to shareholders Reinforced technology leadership via customer- driven new product development: G1 City Edition SCBA and ALTAIR io 6 portable gas detector 4 Closed Autronica acquisition, a strategically aligned detection business providing attractive growth; detection sales now 45% of total Thank You to Our Associates!
Page 15
15 MSA Safety | Third Quarter 2026 Earnings Presentation Q&A
Page 16
16 MSA Safety | Third Quarter 2026 Earnings Presentation Appendix
Page 17
17 MSA Safety | Third Quarter 2026 Earnings Presentation 4.4% R&D Investment(1,2) MSA Safety (NYSE: MSA) | Trailing Twelve-Month Snapshot See appendix for definitions of non-GAAP measures and non-GAAP reconciliations. (1) Key metrics for the twelve-months ended September 30, 2026. (2) Percentage of net sales; includes capitalized software development costs. (3) 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(1,3) 37% International 63% Americas 24% Industrial PPE & Other 31% Fire Service 45% Detection $2.1B Net Sales(1) 22.8% Adj. Operating Margin(1) 1.7x Net Leverage(1) 56 Years Consecutive Dividend Increases 48.2% Adj. Gross Profit Margin(1)
Page 18
18 MSA Safety | Third Quarter 2026 Earnings Presentation MSA Safety | Accelerate Strategy CONTINUE TO BE THE LEADER IN PREMIUM SAFETY SOLUTIONS IMPLEMENT TARGETED GROWTH ACCELERATORS APPLY MSA BUSINESS SYSTEM TO ENABLE EXCELLENCE ALLOCATE CAPITAL EFFECTIVELY • 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 – 56 Years of increasing dividend – Share repurchases
Page 19
19 MSA Safety | Third Quarter 2026 Earnings Presentation MSA Safety | Business System (MBS) (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 Foundation to Achieve Superior and Sustainable Results
Page 20
20 MSA Safety | Third Quarter 2026 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% • Target 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 Targets (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 + + + + Our Strategy Fuels Proven Shareholder Value Creation
Page 21
21 MSA Safety | Third Quarter 2026 Earnings Presentation End Markets Geography Autronica: A Leader in Fire & Gas Detection & Alarm Systems Highly Complementary Portfolio Fit, Strategically Aligned with MSA’s Mission, Vision and Values 2025 Sales Breakdown(1)Key Products • Established fire and gas safety solutions provider founded in 1957, headquartered in Trondheim, Norway, with ~500 employees globally • Designs, manufactures, and supplies fire detection, gas detection, and alarm systems for safety-critical environments • Long operating history with a large, mission-critical installed base supported by ongoing service and aftermarket relationships • Serves commercial and industrial critical infrastructure, energy, and maritime end markets High reliability, low false-alarm rates and strong performance in high-risk environments, aligned with zero-loss-of-life mission Life Safety Advanced capabilities include multi-criteria, algorithmic sensing, integrated control architecture, software-enabled visualization platforms Technology Leadership Strong reputation for high technical reliability, broad certifications and mission-critical applications Premium Safety Segment 5% 20% 35% 40% 10% 15% 35% 40% Critical Infrastructure Oil, Gas, Petrochemical Marine Clean Energy Norway EMEA APAC AmericasAutroGuard • Multi-certified fire detector for global customers and markets AutroFlame • Flame detector with best-in-class performance / cost ratio AutroSafe • Global multi-certified control panel for critical infrastructure, energy & power, marine and clean energy AutroPrime • Global certified fire protection system for critical infrastructure and marine Business Overview (1) Represents approximate end market and geographic sales exposure. EMEA represents sales in the Middle East, Africa, and Eu rope (excluding Norway).
Page 22
22 MSA Safety | Third Quarter 2026 Earnings Presentation Reconciliation of Non-GAAP Financial Measures
Page 23
23 MSA Safety | Third Quarter 2026 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. Consolidated Three Months Ended September 30, 2026 Nine Months Ended September 30, 2026 Detection(a) Fire Service(b) Industrial PPE and Other(c) Net Sales Detection(a) Fire Service(b) Industrial PPE and Other(c) Net Sales GAAP reported sales change 22% 9% 9% 15% 13% 5% 14% 10% Currency translation effects —% —% (2)% (1)% (1)% (2)% (4)% (2)% Less: Acquisitions (20)% —% —% (8)% (11)% —% —% (4)% Organic sales change 2% 9% 7% 6% 1% 3% 10% 4% Americas Three Months Ended September 30, 2026 Nine Months Ended September 30, 2026 Detection(a) Fire Service(b) Industrial PPE and Other(c) Net Sales Detection(a) Fire Service(b) Industrial PPE and Other(c) Net Sales GAAP reported sales change 5% 9% 12% 8% 9% 5% 12% 8% Currency translation effects —% —% (3)% (1)% (1)% —% (3)% (1)% Less: Acquisitions (1)% —% —% —% (2)% —% —% (1)% Organic sales change 4% 9% 9% 7% 6% 5% 9% 6% International Three Months Ended September 30, 2026 Nine Months Ended September 30, 2026 Detection(a) Fire Service(b) Industrial PPE and Other(c) Net Sales Detection(a) Fire Service(b) Industrial PPE and Other(c) Net Sales GAAP reported sales change 55% 10% 4% 28% 21% 3% 17% 14% Currency translation effects —% —% (1)% —% (2)% (4)% (4)% (3)% Less: Acquisitions (59)% —% —% (26)% (29)% —% —% (12)% Organic sales change (4)% 10% 3% 2% (10)% (1)% 13% (1)%
Page 24
24 MSA Safety | Third Quarter 2026 Earnings Presentation Reconciliation of Non-GAAP Financial Measures Adjusted Gross Profit and Margin (Unaudited) Management believes that adjusted gross profit and adjusted gross profit margin 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 gross profit is consistent with that of other companies. As such, management believes that it is appropriate to consider both gross profit determined on a GAAP basis as well as adjusted gross profit. Three Months Ended September 30, Nine Months Ended September 30, Trailing Twelve Months Ended September 30, Twelve Months Ended December 31, 2026 2025 2026 2025 2026 2025 Gross profit $ 244,231 $ 217,616 $ 713,102 $ 631,721 $ 952,494 $ 871,113 Acquisition related amortization 8,072 3,595 14,841 9,033 18,423 12,615 Adjusted gross profit $ 252,303 $ 221,211 $ 727,943 $ 640,754 $ 970,917 $ 883,728 Net sales $ 536,430 $ 468,445 $ 1,503,389 $ 1,363,900 $ 2,014,303 $ 1,874,814 Gross profit margin 45.5 % 46.5 % 47.4 % 46.3 % 47.3 % 46.5 % Adjusted gross profit margin 47.0 % 47.2 % 48.4 % 47.0 % 48.2 % 47.1 %
Page 25
25 MSA Safety | Third Quarter 2026 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 Condensed 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. (In Thousands) Three Months Ended September 30, Nine Months Ended September 30, Trailing Twelve Months Ended September 30 Twelve Months Ended December 31, 2026 2025 2026 2025 2026 2025 Adjusted EBITDA from reportable segments $ 144,278 $ 128,487 $ 421,559 $ 367,651 $ 570,231 $ 516,323 Less: Depreciation and amortization 15,784 14,973 46,252 43,258 61,307 58,313 Adjusted operating income from reportable segments 128,494 113,514 375,307 324,393 508,924 458,010 Less: Corporate Expenses 13,564 9,773 38,138 31,718 49,832 43,412 Adjusted operating income 114,930 103,741 337,169 292,675 459,092 414,598 Less: Currency exchange losses, net 1,876 3,875 3,971 13,237 6,535 15,801 Restructuring and Other charges 1,780 58 6,318 2,470 7,745 3,897 Acquisition-related amortization 8,072 3,595 14,841 9,033 18,423 12,615 Transaction and digital transformation costs (a) 14,967 1,903 18,831 10,002 19,296 10,467 GAAP operating income 88,235 94,310 293,208 257,933 407,093 371,818 Less: Interest expense 13,759 8,416 29,413 23,368 37,844 31,799 Other income, net (7,478) (6,562) (22,538) (18,585) (30,332) (26,379) Income before income taxes 81,954 92,456 286,333 253,150 399,581 366,398 Provision for income taxes 23,558 22,843 70,474 61,159 96,789 87,474 Net income $ 58,396 $ 69,613 $ 215,859 $ 191,991 $ 302,792 $ 278,924 Net Sales 536,430 468,445 2,014,303 Adjusted Operating Income 114,930 103,741 459,092 Adjusted Operating Margin % 21.4 % 22.1 % 22.8 %
Page 26
26 MSA Safety | Third Quarter 2026 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. Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Cash flow from operating activities $ 82,312 $ 112,462 $ 253,375 $ 241,513 Capital expenditures (14,128) (11,986) (37,388) (52,104) Free cash flow $ 68,184 $ 100,476 $ 215,987 $ 189,409 Net Income $ 58,396 $ 69,613 $ 215,859 $ 191,991 Free cash flow conversion 117 % 144 % 100 % 99 %
Page 27
27 MSA Safety | Third Quarter 2026 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 Condensed 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. Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 % Change 2026 2025 % Change Net income $ 58,396 $ 69,613 (16)% $ 215,859 $ 191,991 12% Currency exchange losses, net 1,876 3,875 3,971 13,237 Restructuring charges 1,780 58 6,318 2,470 Acquisition-related amortization 8,072 3,595 14,841 9,033 Transaction and digital transformation costs (a) 14,967 1,903 18,831 10,002 Asset related losses 249 97 637 989 Pension settlement — — 721 Income tax expense on adjustments (4,693) (2,949) (9,301) (9,885) Adjusted earnings $ 80,647 $ 76,192 6% $ 251,156 $ 218,558 15% Adjusted diluted earnings per share $ 2.09 $ 1.94 8% $ 6.48 $ 5.55 17% Diluted shares outstanding 38,647 39,280 38,776 39,380
Page 28
28 MSA Safety | Third Quarter 2026 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 in connection with acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income. (b) Adjusted EBITDA includes Autronica estimates for nine months preceding MSA's ownership. The estimate was developed using information disclosed in MSA's Form 8-K filed on May 5, 2026. Pro forma Adjusted EBITDA is derived from Autronica's estimated 2025 revenue of approximately $160 million and estimated Adjusted EBITDA margin of approximately 20%. These amounts are unaudited and based on preliminary estimates. 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. Twelve Months Ended September 30, 2026 Operating income $ 407,093 Depreciation and amortization 60,328 Currency exchange losses, net 6,535 Restructuring charges 7,745 Acquisition-related amortization 18,423 Transaction and digital transformation costs (a) 19,296 Autronica estimated adjusted EBITDA contribution (b) 24,000 Adjusted EBITDA $ 543,420 Total end-of-period debt 1,121,206 Debt to adjusted EBITDA 2.1 Total end-of-period debt $ 1,121,206 Total end-of-period cash and cash equivalents 187,248 Net debt $ 933,958 Net debt to adjusted EBITDA 1.7
Page 29
29 MSA Safety | Third Quarter 2026 Earnings Presentation Reconciliation of Non-GAAP Financial Measures R&D Investment (Unaudited) Nine Months Ended September 30, Trailing Twelve Months Ended September 30, Twelve Months Ended December 31, 2026 2025 2026 2025 Research and development expense $ 55,472 $ 49,186 $ 71,629 $ 65,343 Capitalized software development costs 11,900 10,400 16,414 14,914 Total R&D investment $ 67,372 $ 59,586 $ 88,043 $ 80,257 Net sales $1,503,389 $1,363,900 $ 2,014,303 $ 1,874,814 R&D investment (% net sales) 4.5 % 4.4 % 4.4 % 4.3 % 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.
Page 30
30 MSA Safety | Third Quarter 2026 Earnings Presentation