The following is a summary of the MSA Safety Incorporated (MSA) Q1 2024 Earnings Call Transcript:

Financial Performance:

• MSA reported Q1 sales of $413 million, a 4% increase year-on-year, driven equally by volume and price.

• Gross profit margin grew by 180 basis points, hitting 47.3%, with an adjusted operating margin of 21.3%.

• Reported GAAP net income was $58 million or $1.47 per diluted share, with adjusted earnings per share at $1.61, reflecting an 18% YoY increase.

• Free cash flow reached $40 million for the quarter, equating to a conversion rate of 62% of adjusted earnings.

Business Progress:

• Steve Blanco will succeed the current CEO from May 10th, following an orderly succession plan.

• Backlog grew in Q1 due to supply chain challenges, particularly in detection and industrial PPE segments; expecting normalization by year-end.

• Firefighter safety sales improved while detection and industrial PPE declined.

• The latest products include the Cairns 1836 Fire Helmet and the FL5000, reflecting the company's commitment to innovating and maintaining a diversified portfolio.

• MSA forecasts mid-single-digit growth for 2024, noting robust margins despite Q1's supply chain challenges.

• Successful launch of the new 1836 helmet and the FL5000 IR ultraviolet infrared flame detector, contributing to overall positive market response.

• The run-rate of the $35 million contract concluded in Q1, with the second tranche expected later in the year.

• MSA maintained its annual outlook: mid-single-digit growth, 30% to 40% incrementals, and free cash flow conversion of 90%-100%, with gross margins of 47%-48%.

More details: MSA Safety IR

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