MSA Safety delivered first quarter results that surpassed Wall Street’s expectations, with management attributing outperformance to robust growth in Detection products and a modest pull-forward of shipments in response to new tariffs. CEO Steve Blanco highlighted “strong demand across Detection and partnering with our customers to accelerate certain shipments in consideration of tariffs.” Gross margin faced pressure from foreign currency headwinds, but was partly offset by price adjustments and favorable product mix. Management also noted continued resilience in order trends and a healthy backlog, despite macroeconomic and tariff-related uncertainty.
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MSA Safety (MSA) Q1 CY2025 Highlights:
- Revenue: $421.3 million vs analyst estimates of $401.3 million (1.9% year-on-year growth, 5% beat)
- Adjusted EPS: $1.68 vs analyst estimates of $1.58 (6.3% beat)
- Adjusted EBITDA: $101.5 million vs analyst estimates of $96.52 million (24.1% margin, 5.1% beat)
- Operating Margin: 21.5%, in line with the same quarter last year
- Market Capitalization: $6.63 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions MSA Safety’s Q1 Earnings Call
- Rob Mason (Baird) asked how project decision-making and customer behavior changed in response to tariffs; CEO Steve Blanco explained that some customers, especially in Canada, accelerated shipments, and Detection led ongoing demand.
- Rob Mason (Baird) followed up on which products saw the pull-forward; Blanco noted a mix similar to the company’s overall product range, with a slightly greater share in Fire Service.
- Rob Mason (Baird) inquired about the magnitude of gross margin headwinds from foreign exchange; Interim CFO Elyse Brody cited Latin American currencies as the primary factor and expects continued FX pressure in the second quarter.
- Ross Sparenblek (William Blair) asked about fixed versus portable Detection growth; Blanco highlighted strong growth in both, with the connected MSA+ offering performing well, and expects high single-digit Detection growth for the year.
- Mike Shlisky (D.A. Davidson) questioned whether cost-saving actions would be permanent if tariffs are resolved; Blanco replied that operational cost savings are expected to persist, but pricing adjustments may be revisited if tariff rates change.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace at which price increases and cost mitigation efforts offset tariff and FX headwinds, (2) continued momentum in Detection and connected device adoption, and (3) resilience in order trends for Fire Service and Industrial PPE. Progress on MSA’s ACCELERATE strategy and any further M&A activity will also be key signposts for the company’s trajectory.
MSA Safety currently trades at $168.66, up from $153.83 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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