MSA Safety's Q4 2024: Discrepancies in Order Pace, Detection Growth, and Supply Chain Resilience
Earnings DecryptThursday, Feb 13, 2025 6:32 pm ET
4min read
These are the key contradictions discussed in MSA Safety's latest 2024Q4 earnings call, specifically including: Fire Service Order Pace and Deferred Orders, Detection segment growth drivers, Order Pace and Timing Expectations, and Supply Chain Challenges:
Sales and Revenue Trends:
- MSA Safety reported fourth quarter sales of $500 million, an increase of 1% on a reported basis and 2% organically over the prior year.
- The growth was driven by a strong order pace in the fourth quarter, which was up 14% year-over-year, despite challenges in industrial markets and lower-than-expected sales in industrial segments like fall protection.
Operating Margin Expansion and Earnings Growth:
- The company's adjusted operating margin expanded to 24.0%, up 70 basis points over the prior year, with a strong increase in adjusted earnings per share by 9%, reaching $2.25.
- This was due to effective SG&A management, lower variable compensation expenses, and the company's sustained focus on price and productivity improvements.
Investment in Innovation and Growth Accelerators:
- MSA Safety highlighted innovations like the new Cairns 1836 Fire Helmet and the next-generation G1 SCBA, as well as growth in connected solutions through the MSA+ platform, which were key drivers for future growth.
- The company emphasized the importance of customer solutions and recurring revenue, with connected portables being the fastest-growing category in 2024.
Financial Strength and Cash Flow Management:
- The company's free cash flow in the fourth quarter was $93 million, representing a conversion rate of 105%, driven by higher earnings and backlog conversion.
- Throughout 2024, MSA Safety returned $79 million in dividends and repurchased $30 million of shares, maintaining a strong financial position with net debt at $343 million, including $165 million in cash.
MSA Total Revenue YoY, P/E(TTM)...
Date | Total Revenue YoY% | P/E(TTM) | ROA% | Current Ratio | Operating Cash Flow(USD) | Quick Ratio | Price to Book Ratio | ROE(Average)% | Net Profit Margin% |
|---|---|---|---|---|---|---|---|---|---|
| 20240930 | -- | -- | -- | -- | -- | 1.56 | -- | -- | -- |
| 20241231 | 0.88 | -- | 18.83 | 2.79 | 107.91M | -- | -- | 27.01 | 15.76 |
| 20250213 | -- | 22.52 | -- | -- | -- | -- | -- | -- | -- |
Name |
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| MSA SafetyMSA |
| MSA SafetyMSA |
| MSA SafetyMSA |
Sales and Revenue Trends:
- MSA Safety reported fourth quarter sales of $500 million, an increase of 1% on a reported basis and 2% organically over the prior year.
- The growth was driven by a strong order pace in the fourth quarter, which was up 14% year-over-year, despite challenges in industrial markets and lower-than-expected sales in industrial segments like fall protection.
Operating Margin Expansion and Earnings Growth:
- The company's adjusted operating margin expanded to 24.0%, up 70 basis points over the prior year, with a strong increase in adjusted earnings per share by 9%, reaching $2.25.
- This was due to effective SG&A management, lower variable compensation expenses, and the company's sustained focus on price and productivity improvements.
Investment in Innovation and Growth Accelerators:
- MSA Safety highlighted innovations like the new Cairns 1836 Fire Helmet and the next-generation G1 SCBA, as well as growth in connected solutions through the MSA+ platform, which were key drivers for future growth.
- The company emphasized the importance of customer solutions and recurring revenue, with connected portables being the fastest-growing category in 2024.
Financial Strength and Cash Flow Management:
- The company's free cash flow in the fourth quarter was $93 million, representing a conversion rate of 105%, driven by higher earnings and backlog conversion.
- Throughout 2024, MSA Safety returned $79 million in dividends and repurchased $30 million of shares, maintaining a strong financial position with net debt at $343 million, including $165 million in cash.
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