MSA Safety Incorporated Q1 FY2026 earnings call

• Steve mentioned focus on health and safety of associates in Middle East conflict. - Team achieved solid start to year executing Accelerate strategy. Consolidated reported sales growth 10%, adjusted earnings per share $1.99 up 18%. - Organic sales performance driven by Americas with international decline. - Product category sales: Detection organic sales consistent, fire service up 3% driven by Americas, industrial PPE up 7%. - Launched new products like Altair IO6 Portable Gas Detector and Baccarat X30 and X50 refrigerant monitoring solutions. - Announced $500 million share repurchase authorization. - Signed definitive agreement to acquire Etronica Fire and Security valued at $555 million, expected to close in third quarter, complementary to existing fixed detection portfolio.

Americas segment: Reported sales increased 11% year-over-year. 7% was organic. Adjusted operating margin was 30.2%, a 340 basis point increase compared to the previous year. International segment: Reported sales increased 8% year-over-year. Organic sales declined 7% due to double-digit contraction in detection and fire service, partially offset by double-digit growth in industrial PPE. Adjusted operating margin was 10.5% 410 basis points below last year.

• Reaffirm mid-single-digit organic sales growth outlook for 2026. - Assumes continued strength in Americas segment and improvement in international results from first quarter. - Supported by mid-single-digit year-over-year order increase and double-digit backlog increase sequentially in international segment.

• Middle East conflict affecting customer order and delivery patterns in regions. - Volatile tariff, geopolitical, and macroeconomic landscape posing challenges. - Supply chain disruptions and related costs to watch.

Q: Talk about guidance regarding single-dated organic rails and recovery in Americas and international.

A: Expect broad-based growth across business with incoming supports, international markets to recover while Americas perform well.

Q: Assess cultural fit and integration measures for acquisition of Etronica.

A: Culture is important, team is stoked about leadership, engagement, focus on safety, synergies expected with revenue growth and cost synergies realized in second half of first year of ownership and fully over next three years.

Q: Quantify recapture of deferred fire service sales and near-term outlook.

A: Realized roughly a third of AFG-related delayed orders, two-thirds left expected to play out in second and third quarters.

Q: Touch on acquisition revenue synergy mechanism and cost synergy timing.

A: Revenue synergy from ability to participate earlier in designs, expand addressable market. Cost synergies start in second half of first year of ownership, fully realized in about three years.

Q: Middle East equipment damage and impact on business.

A: Day-to-day business and replacement component business in Middle East slowed in first quarter, potential tailwinds in second half.

Q: Gross margin improvement details and outlook.

A: Gross margin expansion mostly from price-cost, also productivity, FX a smaller portion, on track for 30% incrementals and 47-48% range gross margins.

Q: Autronica acquisition impact on EBITDA margins.

A: Slightly dilutive initially as their margins are approximately 20% EBITDA margins, will improve over time.

Q: Supply chain challenges.

A: Watching supply chain disruptions, including logistics and resins, but no material impact on business so far.