Fourth quarter financial highlights

MSA Safety Incorporated, a leading global provider of safety equipment and solutions, has reported its financial outcomes for the fourth quarter and the full year ending December 31, 2023.

The fourth quarter saw net sales reach $495 million, marking a 12% increase from the previous year.

This growth reflects the company’s strong performance across its entire portfolio and each reportable segment.

GAAP operating income for the quarter was reported at $102 million, or 20.6% of sales, with adjusted operating income reaching $115 million, or 23.3% of sales.

Additionally, the company recorded GAAP net income of $76 million, or $1.93 per diluted share, and adjusted net income of $82 million, or $2.06 per diluted share.

The quarter also saw MSA Safety investing $12 million in capital expenditures, repaying $145 million of debt, and returning $18 million to shareholders through dividends.

Full year financial performance

For the full year 2023, MSA Safety achieved net sales of $1.8 billion, representing a 17% increase year-over-year.

The company generated GAAP operating income of $231 million, or 12.9% of sales, and an adjusted operating income of $398 million, or 22.2% of sales.

GAAP earnings stood at $59 million, or $1.48 per diluted share, with adjusted earnings of $278 million, or $7.03 per diluted share.

Over the year, MSA Safety invested $43 million in capital expenditures, repaid $289 million of debt following the divestiture of a subsidiary in January 2023, and returned $73 million to shareholders through dividends.

The company strengthened its financial position with a net leverage of 1.0x at year’s end.

MSA Executive insights on performance and outlook

Nish Vartanian, Chairman and Chief Executive Officer of MSA Safety, expressed satisfaction with the company’s performance: “Our strong performance in the fourth quarter capped an outstanding 2023 for MSA.

“Our team delivered excellent full-year results with double-digit sales growth and robust margin expansion.

“We enter 2024 with strong momentum and an ongoing focus on delivering value for all our stakeholders.”

Lee McChesney, Senior Vice President and Chief Financial Officer, highlighted the company’s operational success and future prospects: “Our team’s strong commercial and operational execution resulted in a year of accelerated sales growth, margin enhancement, and free cash flow generation.

“Despite the backdrop of macroeconomic and geopolitical uncertainty, we are focused on delivering mid-single digit sales growth in 2024.”

IFSJ Comment

The impressive financial outcomes reported by MSA Safety for the fourth quarter and full year 2023 demonstrate the company’s resilience and strategic execution in a challenging economic environment.

With significant sales growth, margin expansion, and strong cash flow generation, MSA Safety showcases its commitment to innovation, customer service, and shareholder value.

The company’s optimistic outlook for 2024, despite ongoing uncertainties, underscores its confidence in the business model and strategic initiatives.

MSA Safety’s focus on sustainable value creation and its balanced capital allocation strategy highlight its potential for continued success in the safety equipment and solutions market.