Dividend increase reflects continued capital return strategy
MSA Safety has approved its 55th consecutive annual dividend increase, raising its quarterly dividend from $0.51 to $0.53 per common share.
The company announced the change in a statement on 2 May 2025, attributing the decision to its ongoing capital allocation policy and strong free cash flow.
The quarterly dividend will be paid on 10 June 2025 to shareholders of record as of 15 May 2025.
MSA Safety Interim Chief Financial Officer Elyse Brody said: “As part of our balanced capital allocation strategy, we’re pleased to fund our 55th consecutive annual dividend increase.”
Brody added: “With robust free cash flow generation, we’re focused on investing in growth programs that align with our Accelerate strategy.”
Brody stated: “Our strong balance sheet positions us well to execute this growth strategy while delivering on our longstanding commitment of returning value to shareholders.”
The company also declared a dividend of $0.5625 per share on preferred stock, payable on 1 June 2025 to shareholders of record as of 15 May 2025.
Q1 2025 results show international sales growth
According to MSA Safety, consolidated net sales for the first quarter of 2025 reached $421 million, a 2 percent increase compared to the same period in 2024.
International segment sales rose 9 percent to $128 million, while GAAP operating income for this segment increased by 56 percent year-over-year.
The company reported adjusted operating income of $88 million, representing 20.8 percent of net sales, and adjusted earnings of $66 million, or $1.68 per diluted share.
GAAP net income for the quarter was $60 million, or $1.51 per diluted share.
CEO Steve Blanco said: “Our solid first quarter results demonstrate the team’s continued dedication to executing our Accelerate strategy.”
Blanco added: “Within our diversified portfolio, revenue growth was fueled by robust performance in detection and partnering with our customers to accelerate some shipments in consideration of tariffs.”
Americas segment shows mixed performance
The company reported a 1 percent decline in net sales in the Americas segment, which reached $293 million for the quarter.
GAAP operating income in this region decreased by 9 percent year-over-year, falling to $77 million.
Adjusted operating income for the Americas was $79 million, representing 26.8 percent of regional net sales.
Fire service product sales in the Americas declined by 13 percent on a GAAP basis, while detection products grew 14 percent.
The company noted that the Americas segment was affected by year-over-year changes in sales mix and shipment timing.
2025 outlook maintained amid macroeconomic risk
MSA Safety confirmed its full-year 2025 outlook, projecting low-single-digit organic sales growth, dependent on continued economic stability.
The company acknowledged ongoing macroeconomic risks, including tariffs, that could influence performance in future quarters.
Interim Chief Financial Officer Elyse Brody said: “We maintain our low-single-digit organic sales growth outlook for 2025, predicated on relative economic stability, while closely monitoring elevated macro risks including tariffs.”
Brody added: “We will stay close to our customers and remain agile as operating conditions evolve.”
MSA Safety stated it returned $20 million to shareholders through dividends, repurchased $10 million of stock, and invested $11 million in capital expenditures during the quarter.
It also completed an upsized revolving credit facility in April, providing borrowing capacity of $1.3 billion.
MSA Safety raises dividend and reports Q1 2025 financial results: Summary
MSA Safety raised its quarterly dividend to $0.53 per share on 2 May 2025.
This marks the 55th consecutive annual increase in the company’s dividend.
The dividend will be paid on 10 June 2025 to shareholders on record as of 15 May 2025.
A preferred stock dividend of $0.5625 per share will be paid on 1 June 2025.
Q1 2025 net sales totalled $421 million, with a 2 percent year-over-year increase.
International sales grew by 9 percent, while Americas sales declined by 1 percent.
GAAP net income was reported at $60 million for the quarter.
Adjusted earnings per share reached $1.68, a 4 percent increase from 2024.
Free cash flow for the quarter was $51 million, a 29 percent year-over-year increase.
The company returned $20 million in dividends and repurchased $10 million in shares.
MSA Safety maintained its full-year outlook of low-single-digit organic sales growth.
The company cited tariff risks and macroeconomic uncertainty as potential challenges.
An expanded credit facility of $1.3 billion was finalised in April 2025.