Safety equipment manufacturer MSA Safety (NYSE: MSA) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 8.3% year on year to $468.4 million. Its non-GAAP profit of $1.94 per share was 3.9% above analysts’ consensus estimates.

Is now the time to buy MSA? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

MSA Safety’s third quarter drew a positive market response as the company exceeded Wall Street’s revenue and non-GAAP profit expectations. Management attributed the sales momentum to substantial growth in detection equipment and industrial personal protective equipment (PPE), particularly in fall protection. CEO Steve Blanco highlighted the strong performance of the company’s connected portable gas detection devices and noted that over half of portable growth came from these offerings. However, ongoing headwinds in the fire service segment, influenced by delayed U.S. government funding and changes in fire standards, partially offset gains in other categories.

Looking forward, management expects continued tailwinds from detection and industrial PPE, while cautioning that fire service revenues may remain pressured due to delays in federal grant timing and the U.S. government shutdown. CFO Julie Beck outlined that tariff-driven cost pressures and timing issues in grant funding are likely to impact the upcoming quarter, but anticipates a margin improvement as pricing actions and operational discipline take effect. Management believes demand remains strong across core segments and that order timing, especially related to government funding and fire service standards, is the primary variable impacting near-term results.

Key Insights from Management’s Remarks

Management credited the quarter’s growth to detection and PPE momentum, while acknowledging fire service and margin pressures from tariffs and funding delays.

• Detection segment outperformance: Robust demand for both fixed and portable gas detection equipment, with connected devices such as the ALTAIR io 6 contributing significantly to organic growth. More than half of portable instrument growth was linked to MSA+ connected solutions.
• Industrial PPE strength: Continued double-digit organic growth in fall protection and healthy performance across head protection and ballistic helmets, driven by investments in inventory and improved lead times.
• Fire service contraction: Organic fire service sales declined, mainly due to delayed U.S. grant awards (AFG) and ongoing uncertainty around NFPA standard changes. The U.S. government shutdown further slowed order intake, shifting revenue into 2026.
• M&C TechGroup acquisition integration: The recent acquisition delivered $15 million in sales and is progressing well, with early cross-selling opportunities identified in the U.S. and Europe.
• Tariff and inflation headwinds: Management implemented targeted price increases to offset increased costs from tariffs and general inflation, particularly in supply chain materials such as electronics and metals, and expects pricing actions to support future margin improvement.

Drivers of Future Performance

MSA Safety’s outlook is shaped by continued growth in detection and PPE, tempered by fire service order delays and macroeconomic cost pressures.

• Detection and PPE momentum: Management expects sustained demand for detection equipment and industrial PPE, underpinned by new product launches, such as the ALTAIR io 6, and accelerated MSA+ subscription growth. These categories are projected as key contributors to revenue and margin resilience.
• Fire service timing risks: Delays in federal grant funding and NFPA standard updates are anticipated to suppress fire service revenue into early next year, with management viewing these as timing issues rather than underlying demand concerns. Recovery is expected as funding and standards normalize in 2026.
• Tariff and cost management: The company continues to target price/cost neutrality by mid-2026. Tariff mitigation and further price increases are planned to offset ongoing inflation in supply chain inputs and labor, though these efforts may take time to fully flow through to margins.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace and conversion of delayed fire service orders as government grant timing and NFPA standard updates play out, (2) the degree to which tariff mitigation and new pricing strategies can support margin recovery, and (3) sustained momentum in detection and PPE product lines, especially as new launches and cross-selling from acquisitions develop. The impact of supply chain inflation and any further M&A activity will also be important factors.

MSA Safety currently trades at $170.65, up from $162.64 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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