MSA Safety Incorporated (MSA): history, ownership, mission, how it works & makes money

A Brief History of MSA Safety Incorporated

Overview

MSA Safety Incorporated is a global leader in the development, manufacture, and supply of safety products that protect people and facility infrastructures. The company specializes in products for the fire service, industrial safety, and gas detection. As of 2024, MSA operates across various segments, including Americas and International markets.

Financial Performance

For the nine months ended September 30, 2024, MSA reported net sales of $1.31 billion, a 1.2% increase from $1.29 billion in the same period of 2023. The breakdown of sales is as follows:

Net Income and Earnings Per Share

Net income for the nine months ended September 30, 2024, was $197.0 million, or $4.98 per diluted share, compared to a net loss of $17.8 million, or $(0.46) per diluted share, for the same period in 2023.

Operating Income

Consolidated operating income for the nine months ended September 30, 2024, was $271.5 million, which is a significant increase from $129.1 million in the prior year, driven by higher sales and improved gross profit margins.

Adjusted Operating Income

For the same period, MSA's adjusted operating income was $294.1 million, with adjusted operating margins of 30.4% for the Americas segment and 14.0% for the International segment.

Gross Profit and Margin

Gross profit for the nine months ended September 30, 2024, was $626.0 million, representing a 2.0% increase from $614.0 million the previous year. The gross profit margin improved to 47.8% compared to 47.5% in 2023.

Research and Development

MSA continued to invest in innovation, spending $59.7 million on research and development activities during the nine months ended September 30, 2024, up from $58.3 million in the same period of 2023.

Debt and Liquidity

As of September 30, 2024, MSA's total liabilities amounted to $1.15 billion, with long-term debt net of debt issuance costs at $527.8 million. The company reported compliance with all financial covenants under its credit agreements.

Market Position and Future Outlook

MSA Safety Incorporated remains a key player in the safety equipment industry, with expectations for mid-single-digit sales growth in the fourth quarter of 2024. The company's strategic focus on technology-driven safety solutions is expected to enhance its market position moving forward.

A Who Owns MSA Safety Incorporated (MSA)

Major Shareholders

As of October 18, 2024, MSA Safety Incorporated has a total of 39,309,950 shares of common stock outstanding. The breakdown of major shareholders is as follows:

Top Institutional Investors

The following table presents the largest institutional investors of MSA Safety Incorporated:

Insider Holdings

Insider ownership includes executive officers and board members. The following individuals are notable insiders:

Recent Stock Performance

MSA Safety Incorporated's stock performance is crucial for understanding ownership dynamics. As of September 30, 2024, the stock price was $145.00, reflecting a market capitalization of approximately $5.7 billion. The stock's performance over the past year is summarized below:

Dividend Information

MSA Safety Incorporated has a history of paying dividends, which is an important factor for many investors. The following dividend information is noted:

Ownership Trends

Recent trends in ownership indicate a growing interest from institutional investors, particularly in the last fiscal year:

MSA Safety Incorporated (MSA) Mission Statement

The mission statement of MSA Safety Incorporated (MSA) emphasizes its commitment to protecting lives and ensuring safety through innovative solutions and technologies. As of 2024, MSA focuses on delivering safety products that enhance the lives of those who work in hazardous environments. The company aims to be the world's most trusted partner for safety, delivering superior quality and performance in its products.

Financial Overview

As of September 30, 2024, MSA reported consolidated net sales of $1.31 billion, reflecting an increase of $16.1 million, or 1.2%, compared to $1.29 billion for the same period in 2023. The breakdown of net sales by geographic segment is as follows:

Adjusted Operating Income

MSA's adjusted operating income for the nine months ended September 30, 2024, was $294.1 million, an increase of $11.7 million, or 4.1%, compared to $282.5 million in the same period of 2023. The adjusted operating income by segment is detailed below:

Earnings Performance

For the third quarter of 2024, MSA reported net income of $66.6 million, or $1.69 per diluted share, compared to $65.3 million, or $1.65 per diluted share, for the same period in 2023. The earnings performance for the first nine months is summarized below:

Research and Development

MSA continues to invest in research and development, with expenditures reaching $49.7 million for the nine months ended September 30, 2024, an increase of $0.8 million compared to $48.9 million in the same period last year. This investment represents 3.8% of net sales for both periods.

Sales by Product Group

The sales breakdown by product group for the nine months ended September 30, 2024, is as follows:

Conclusion on Market Position

As of 2024, MSA Safety Incorporated remains focused on its mission to deliver innovative safety solutions while demonstrating strong financial performance, highlighted by consistent growth in revenues and operating income across its segments.

How MSA Safety Incorporated (MSA) Works

Overview of Operations

MSA Safety Incorporated (MSA) specializes in the development, manufacture, and supply of safety products that protect workers in hazardous environments. The company operates in two primary segments: the Americas and International markets, focusing on products such as respiratory protection, gas detection, and industrial safety equipment.

Financial Performance

For the nine months ended September 30, 2024, MSA reported consolidated net sales of $1.31 billion, a 1.2% increase from $1.29 billion in the same period of 2023. The breakdown of net sales is as follows:

Adjusted Operating Income

MSA's adjusted operating income for the nine months ended September 30, 2024, was $294.1 million, compared to $282.5 million for the same period in 2023. The adjusted operating income by segment is as follows:

Profitability Metrics

The gross profit for MSA for the nine months ended September 30, 2024, was $626.0 million, yielding a gross profit margin of 47.8%, compared to $614.0 million and a margin of 47.5% in the prior year. Key profitability ratios are as follows:

Expenses

MSA's selling, general, and administrative (SG&A) expenses for the nine months ended September 30, 2024, were $294.3 million, representing a 1.6% increase from $289.6 million in the same period of 2023. The SG&A as a percentage of net sales was 22.5% in 2024 compared to 22.4% in 2023.

Research and Development

Research and development (R&D) expenditures for the nine months ended September 30, 2024, totaled $49.7 million, slightly up from $48.9 million in the previous year. R&D represented 3.8% of net sales for both periods.

Debt and Equity Structure

As of September 30, 2024, MSA's total liabilities stood at $1.15 billion, with total shareholders' equity of $1.1 billion. The company's long-term debt was reported at $554.7 million.

Market Position and Strategic Initiatives

MSA continues to enhance its market position through strategic initiatives focusing on productivity improvements, new product development, and operational efficiencies. The company is committed to leveraging its R&D capabilities to develop innovative safety solutions tailored to meet evolving market needs.

How MSA Safety Incorporated (MSA) Makes Money

Revenue Streams

MSA Safety Incorporated generates revenue through the sale of safety products and solutions across various segments, primarily categorized into Fire Service, Detection, and Industrial Personal Protective Equipment (PPE).

Financial Performance

For the nine months ended September 30, 2024, MSA reported net sales of $1.308 billion, reflecting a 1.2% increase from $1.292 billion during the same period in 2023.

Net sales by segment for the same period were:

Adjusted Operating Income

MSA's adjusted operating income for the nine months ended September 30, 2024, was $294.1 million, an increase from $282.5 million in the same period in 2023.

Operating Expenses

For the nine months ended September 30, 2024, MSA's selling, general, and administrative expenses (SG&A) amounted to $294.3 million, which is 22.5% of net sales compared to 22.4% in the same period in 2023.

Research and development expenses were $49.7 million, representing 3.8% of net sales.

Net Income and Earnings Per Share

MSA reported net income of $197.0 million for the nine months ended September 30, 2024, which translates to earnings of $5.00 per diluted share, compared to a net loss of $17.8 million or $(0.46) per diluted share for the same period in 2023.

Cash Flow and Liquidity

Operating activities provided cash of $188.5 million during the nine months ended September 30, 2024. The company had cash and cash equivalents totaling $154.4 million at the end of this period.

Article updated on 8 Nov 2024

Resources:

• MSA Safety Incorporated (MSA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MSA Safety Incorporated (MSA)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View MSA Safety Incorporated (MSA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.