MSA Safety Inc

Previous wording

Net Sales. Net sales for the three months ended June 30, 2026, were $503.3 million, an increase of $29.2 million, or 6.2%, compared to $474.1 million in the same period of 2025. Please refer to the Net Sales table below for a reconciliation of the quarter over quarter sales change.

Current wording

Net Sales. Net sales for the three months ended September 30, 2026, were $536.4 million, an increase of $68.0 million, or 14.5%, compared to $468.4 million in the same period of 2025. Please refer to the Net Sales table below for a reconciliation of the quarter over quarter sales change.

Previous wording

Net sales for the Americas segment were $341.4 million in the second quarter of 2026, an increase of $21.3 million, or 6.7%, compared to $320.1 million in the same period of 2025. Organic sales in the Americas segment increased 4.5% during the period, driven by double-digit growth in industrial PPE and high-single digit growth in detection partially offset by a decrease in fire service due to delayed Assistance to Firefighters Grant (AFG) funding. M&C added $1.9 million of sales to the Americas segment during the period as compared to prior year.

Current wording

Net sales for the Americas segment were $338.2 million in the third quarter of 2026, an increase of $24.9 million, or 7.9%, compared to $313.3 million in the same period of 2025. Organic sales in the Americas segment increased 7.1% during the period, driven by high-single digit growth in industrial PPE and fire service as well as mid-single digit growth in detection.

Previous wording

Net sales for the International segment were $161.9 million in the second quarter of 2026, an increase of $7.9 million, or 5.1%, compared to $154.0 million in the same period of 2025. Organic sales in the International segment increased 0.3% during the period as double-digit growth in industrial PPE, primarily due to higher protective ballistic helmet sales in Europe, was mostly offset by a decline in detection largely driven by the conflict in the Middle East. Sales in fire service were consistent with prior year. M&C added $3.7 million of sales to the International segment during the period as compared to prior year.

Current wording

Net sales for the International segment were $198.2 million in the third quarter of 2026, an increase of $43.1 million, or 27.8%, compared to $155.1 million in the same period of 2025. Organic sales in the International segment increased 2.3% during the period, reflecting double-digit growth in fire service and low-single digit growth in industrial PPE partially offset by a mid-single-digit decline in detection largely driven by the conflict in the Middle East. Autronica added $39.4 million of sales to the International segment during the period as compared to prior year.

Previous wording

Gross profit. Gross profit for the second quarter of 2026 was $249.3 million, an increase of $28.6 million or 12.9%, compared to $220.7 million in the same period of 2025. The ratio of gross profit to net sales was 49.5% in the second quarter of 2026 compared to 46.6% in the same quarter last year. The increase in gross profit margin reflects the strength of our MSA business system including price realization, productivity, and value added engineering efforts as well as favorable transactional foreign currency, and tariff refunds partially offset by inflation.

Current wording

Gross profit. Gross profit for the third quarter of 2026 was $244.2 million, an increase of $26.6 million or 12.2%, compared to $217.6 million in the same period of 2025. The ratio of gross profit to net sales was 45.5% in the third quarter of 2026 compared to 46.5% in the same quarter last year. The decrease in gross profit margin reflects the impact of the Autronica acquisition, including amortization. Price realization and productivity fully offset inflation and unfavorable mix.

Previous wording

Selling, general and administrative expenses. Selling, general and administrative (“SG&A”) expenses were $114.1 million during the second quarter of 2026, an increase of $2.0 million or 1.8%, compared to $112.1 million in the same period of 2025. SG&A expenses were 22.7% of net sales during the second quarter of 2026 compared to 23.6% in the same quarter last year. SG&A for 2026 includes $2.0 million of additional expenses associated with M&C operations as compared to the prior year. SG&A also includes $1.7 million and $6.6 million of strategic transaction costs for the second quarter of 2026 and 2025, respectively. Organic SG&A increased by approximately $3.4 million or 3.2%, driven primarily by higher variable compensation and inflation, partially offset by discretionary expense management.

Current wording

Selling, general and administrative expenses. Selling, general and administrative (“SG&A”) expenses were $132.4 million during the third quarter of 2026, an increase of $29.5 million or 28.7%, compared to $102.9 million in the same period of 2025. SG&A expenses were 24.7% of net sales during the third quarter of 2026 compared to 22.0% in the same quarter last year. SG&A for 2026 includes $7.3 million of additional expenses associated with Autronica operations as compared to the prior year. SG&A also includes $15.0 million and $1.9 million of strategic transaction and digital transformation costs for the third quarter of 2026 and 2025, respectively. Organic SG&A increased by approximately $8.7 million or 8.7%, driven primarily by higher variable compensation resulting from improved results and the Autronica acquisition, commercial investments, and inflation.

Previous wording

During the second quarter of 2026 and 2025, we capitalized $3.7 million and $3.4 million of software development costs, respectively. Depreciation expense for capitalized software development costs of $3.3 million and $3.1 million for the second quarter of 2026 and 2025, respectively, was recorded in Costs of products sold on the unaudited Condensed Consolidated Statements of Income.

Current wording

During the third quarter of 2026 and 2025, we capitalized $4.0 million and $3.7 million of software development costs, respectively. Depreciation expense for capitalized software development costs of $3.4 million and $2.8 million for the third quarter of 2026 and 2025, respectively, was recorded in Costs of products sold on the unaudited Condensed Consolidated Statements of Income.

Previous wording

The Company's commitment to innovation is supported by a research and development pipeline focused on integrating advanced technology into core safety equipment. Approximately half of MSA’s R&D engineers are now focused on software development to support the expansion of its connected ecosystems and HeSaaS models. As we continue to invest a significant portion of our new product development into technology-based safety solutions, we anticipate that the historical relationship of research and development expense to net sales will continue to evolve; however, we do not anticipate reductions in the relative level of total spend on research and development activities on an annual basis. Total spend on both software development and research and development activities was $22.9 million and $20.4 million during the second quarter of June 30, 2026, and 2025, respectively.

Current wording

The Company's commitment to innovation is supported by a research and development pipeline focused on integrating advanced technology into core safety equipment. Approximately half of MSA’s R&D engineers are now focused on software development to support the expansion of its connected ecosystems and HeSaaS models. As we continue to invest a significant portion of our new product development into technology-based safety solutions, we anticipate that the historical relationship of research and development expense to net sales will continue to evolve; however, we do not anticipate reductions in the relative level of total spend on research and development activities on an annual basis. Total spend on both software development and research and development activities was $24.0 million and $20.2 million during the third quarter of September 30, 2026, and 2025, respectively.

Previous wording

Restructuring charges. Restructuring charges were $2.2 million and $0.5 million during the second quarter of 2026 and 2025, respectively. Charges in both periods were primarily related to initiatives to right-size the organization in response to macroeconomic conditions and footprint optimization.

Current wording

Restructuring charges. Restructuring charges were $1.8 million and $0.1 million during the third quarter of 2026 and 2025, respectively. Charges in both periods were primarily related to initiatives to right-size the organization in response to macroeconomic conditions and footprint optimization.

Previous wording

Currency exchange. Currency exchange losses were $1.9 million in the second quarter of 2026 compared to $5.3 million in the same period of 2025. The currency exchange activity for both periods related primarily to foreign currency exposure on unsettled inter-company balances. Refer to Note 17—Derivative Financial Instruments to the unaudited condensed consolidated financial statements in Part I Item 1 of this Form 10-Q, for information regarding our currency exchange rate risk management strategy.

Current wording

Currency exchange. Currency exchange losses were $1.9 million in the third quarter of 2026 compared to $3.9 million in the same period of 2025. The currency exchange activity for both periods related primarily to foreign currency exposure on unsettled inter-company balances. Refer to Note 17—Derivative Financial Instruments to the unaudited condensed consolidated financial statements in Part I Item 1 of this Form 10-Q, for information regarding our currency exchange rate risk management strategy.

Previous wording

GAAP operating income. Consolidated operating income for the second quarter of 2026 was $112.0 million compared to $85.9 million in same period of 2025. The increase in operating income was primarily driven by higher gross profit and lower currency exchange losses partially offset by higher SG&A and restructuring charges as discussed further above.

Current wording

GAAP operating income. Consolidated operating income for the third quarter of 2026 was $88.2 million compared to $94.3 million in the same period of 2025. The decrease in operating income was primarily driven by higher SG&A and the impact of the Autronica acquisition, including higher transaction costs and amortization, partially offset by higher sales and lower currency exchange losses as discussed further above.

Previous wording

Adjusted operating income. Americas adjusted operating income for the second quarter of 2026 was $109.1 million, an increase of $15.8 million or 16.9% compared to $93.3 million in the same period of 2025. The increase in adjusted operating income is primarily attributable to attributable to increased sales and higher gross profit driven by price realization, productivity, favorable transactional foreign currency, and tariff refunds, partially offset by higher SG&A expenses.

Current wording

Adjusted operating income. Americas adjusted operating income for the third quarter of 2026 was $96.7 million, an increase of $8.0 million or 9.0% compared to $88.7 million in the same period of 2025. The increase in adjusted operating income is primarily attributable to increased sales and higher gross profit driven by price realization and productivity, partially offset by inflation.

Previous wording

Corporate expenses for the second quarter of 2026 was $13.0 million, an increase of $1.0 million, compared to $12.0 million in the same period of 2025, driven by higher variable compensation and professional service fees, partially offset by discretionary expense management.

Current wording

Corporate expense for the third quarter of 2026 was $13.6 million, an increase of $3.8 million, compared to $9.8 million in the same period of 2025, driven by higher variable compensation and professional service fees, partially offset by discretionary expense management.

Previous wording

Total other expense, net. Total other expense for the second quarter of 2026 was $0.6 million, compared to $3.1 million for the same period of 2025. The decrease was primarily related to increased pension income, a result of higher expected return on plan assets, and to a lesser extent slightly lower interest expense.

Current wording

Total other expense, net. Total other expense for the third quarter of 2026 was $6.3 million, compared to $1.9 million for the same period of 2025. The increase was primarily related to higher interest expense driven by increased borrowings for the Autronica acquisition and higher interest rates partially offset by increased pension income, a result of higher expected return on plan assets.

Previous wording

Income taxes. The reported effective tax rate for the second quarter of 2026 was 22.6% compared to 24.1% in the same period of 2025. The decrease from the prior year was primarily driven by benefits associated with the finalization of initial global minimum corporate tax return filings (referred to as Pillar 2).

Current wording

Income taxes. The reported effective tax rate for the third quarter of 2026 was 28.7% compared to 24.7% in the same period of 2025. The increase from the prior year was primarily driven by additional expense associated with increased profitability in high tax jurisdictions, and nondeductible transaction costs.

Previous wording

Net income. Net income was $86.2 million for the second quarter of 2026, or $2.23 per diluted share, an increase of approximately 40%, compared to $62.8 million, or $1.59 per diluted share, in the same period of 2025.

Current wording

Net income. Net income was $58.4 million for the third quarter of 2026, or $1.51 per diluted share, a decrease of approximately 16% largely driven by the higher SG&A and the impact of the Autronica acquisition including higher transaction costs, amortization and interest costs, compared to $69.6 million, or $1.77 per diluted share, in the same period of 2025.

Previous wording

Net Sales. Net sales for the six months ended June 30, 2026, were $967.0 million, an increase of $71.5 million, or 8.0%, compared to $895.5 million in the same period of 2025. Please refer to the Net Sales table for a reconciliation of the period over period sales change.

Current wording

Net Sales. Net sales for the nine months ended September 30, 2026, were $1.5 billion, an increase of $139.5 million, or 10.2%, compared to $1.4 billion in the same period of 2025. Please refer to the Net Sales table for a reconciliation of the period over period sales change.

Previous wording

Net sales for the Americas segment were $666.7 million in the six months ended June 30, 2026, an increase of $53.4 million, or 8.7%, compared to $613.3 million in the same period of 2025. Organic sales in the Americas segment increased 5.8% during the period, driven by growth in all three product groups with high single digit expansion in both detection and industrial PPE. M&C added $7.3 million of sales to the Americas segment during the period as compared to prior year.

Current wording

Net sales for the Americas segment were $1.0 billion in the nine months ended September 30, 2026, an increase of $78.3 million, or 8.5%, compared to $926.6 million in the same period of 2025. Organic sales in the Americas segment increased 6.3% during the period, driven by growth in all three product groups with high single digit expansion in both detection and industrial PPE. M&C and Autronica added $7.3 million and $0.1 million of sales, respectively, to the Americas segment during the period as compared to prior year.

Previous wording

Net sales for the International segment were $300.3 million in the six months ended June 30, 2026, an increase of $18.1 million, or 6.4%, compared to $282.2 million in the same period of 2025. Organic sales in the International segment decreased 3.0% during the period, resulting from declines in detection and fire service largely driven by order timing, economic conditions in Europe, and the conflict in the Middle East, partially offset by growth in industrial PPE, primarily due to higher protective ballistic helmet sales in Europe. M&C added $13.3 million of sales to the International segment during the period as compared to prior year.

Current wording

Net sales for the International segment were $498.5 million in the nine months ended September 30, 2026, an increase of $61.2 million, or 14.0%, compared to $437.3 million in the same period of 2025. Organic sales in the International segment decreased 1.1% during the period, resulting from declines in detection and fire service largely driven by order timing, economic conditions in Europe, and the conflict in the Middle East, partially offset by growth in industrial PPE, primarily due to higher protective ballistic helmet sales in Europe. M&C and Autronica added $13.3 million and $39.4 million of sales, respectively, to the International segment during the period as compared to prior year.

Previous wording

Gross profit. Gross profit for the six months ended June 30, 2026, was $468.9 million, an increase of $54.8 million or 13.2%, compared to $414.1 million in the same period of 2025. The ratio of gross profit to net sales was 48.5% during the six months ended June 30, 2026, compared to 46.2% in the same period of 2025. The increase in gross profit margin is primarily related to price realization, productivity, product mix, and favorable transactional foreign currency, partially offset by higher net tariffs and inflation and additional amortization related to the M&C acquisition.

Current wording

Gross profit. Gross profit for the nine months ended September 30, 2026, was $713.1 million, an increase of $81.4 million or 12.9%, compared to $631.7 million in the same period of 2025. The ratio of gross profit to net sales was 47.4% during the nine months ended September 30, 2026, compared to 46.3% in the same period of 2025. The increase in gross profit margin is primarily related to price realization, productivity, and favorable transactional foreign currency, partially offset by higher net tariffs and inflation and amortization related to the M&C and Autronica acquisitions.

Previous wording

Selling, general and administrative expenses. Selling, general and administrative (“SG&A”) expenses were $221.8 million during the six months ended June 30, 2026, an increase of $15.8 million or 7.6%, compared to $206.0 million in the same period of 2025. Overall, SG&A expenses were 22.9% of net sales during the six months ended June 30, 2026, compared to 23.0% of net sales in the same period of 2025. SG&A for 2026 includes $8.0 million of additional expenses associated with M&C operations as compared to the prior year. SG&A also includes $3.9 million and $8.1 million of strategic transaction costs in the six months ended 2026 and 2025, respectively. Organic SG&A increased $7.7 million or 3.9%, driven primarily by higher variable compensation, higher professional service costs, and inflation, partially offset by discretionary expense management.

Current wording

Selling, general and administrative expenses. Selling, general and administrative (“SG&A”) expenses were $354.1 million during the nine months ended September 30, 2026, an increase of $45.2 million or 14.6%, compared to $308.9 million in the same period of 2025. Overall, SG&A expenses were 23.6% of net sales during the nine months ended September 30, 2026, compared to 22.6% of net sales in the same period of 2025. SG&A for 2026 includes $15.3 million of additional expenses associated with M&C and Autronica operations as compared to the prior year. SG&A also includes $18.8 million and $10.0 million of strategic transaction and digital transformation costs in the nine months ended 2026 and 2025, respectively. Organic SG&A increased $15.9 million or 5.3%, driven primarily by higher variable compensation, professional service costs, sales incentives, and inflation, partially offset by discretionary expense management.

Previous wording

Research and development expense. Research and development expense was $35.5 million during the six months ended June 30, 2026, an increase of $2.8 million, compared to $32.7 million in the same period of 2025. Research and development expense was 3.7% of net sales in the six months ended June 30, 2026, and 3.6% of net sales in the same period of 2025.

Current wording

Research and development expense. Research and development expense was $55.5 million during the nine months ended September 30, 2026, an increase of $6.3 million, compared to $49.2 million in the same period of 2025. Research and development expense was 3.7% of net sales in the nine months ended September 30, 2026, and 3.6% of net sales in the same period of 2025.

Previous wording

During the six months ended June 30, 2026, and 2025, we capitalized $7.9 million and $6.7 million of software development costs, respectively. Amortization expense for capitalized software development costs of $6.6 million and $6.0 million during the six months ended June 30, 2026, and 2025, respectively, was recorded in costs of products sold on the unaudited Condensed Consolidated Statements of Income.

Current wording

During the nine months ended September 30, 2026, and 2025, we capitalized $11.9 million and $10.4 million of software development costs, respectively. Amortization expense for capitalized software development costs of $10.0 million and $8.8 million during the nine months ended September 30, 2026, and 2025, respectively, was recorded in costs of products sold on the unaudited Condensed Consolidated Statements of Income.

Previous wording

The Company's commitment to innovation is supported by a research and development pipeline focused on integrating advanced technology into core safety equipment. Approximately half of MSA’s R&D engineers are now focused on software development to support the expansion of its connected ecosystems and HeSaaS models. As we continue to invest a significant portion of our new product development into technology-based safety solutions, we anticipate that the historical relationship of research and development expense to net sales will continue to evolve; however, we do not anticipate reductions in the relative level of total spend on research and development activities on an annual basis. Total spend on both software development and research and development activities was $43.4 million and $39.4 million during the six months ended June 30, 2026, and 2025, respectively.

Current wording

The Company's commitment to innovation is supported by a research and development pipeline focused on integrating advanced technology into core safety equipment including the recently introduced G1 City Edition SCBA with integrated LUNAR®Beacon Technology. Approximately half of MSA’s R&D engineers are now focused on software development to support the expansion of its connected ecosystems and HeSaaS models. As we continue to invest a significant portion of our new product development into technology-based safety solutions, we anticipate that the historical relationship of research and development expense to net sales will continue to evolve; however, we do not anticipate reductions in the relative level of total spend on research and development activities on an annual basis. Total spend on both software development and research and development activities was $67.4 million and $59.6 million during the nine months ended September 30, 2026, and 2025, respectively.

Previous wording

Restructuring charges. Restructuring charges of $4.5 million during the six months ended June 30, 2026, were primarily related to management restructuring, footprint optimization, and other ongoing initiatives to right-size the organization in response to macroeconomic conditions. Restructuring charges of $2.4 million in the same period of 2025 were primarily related to initiatives to right-size the organization in response to macroeconomic conditions, optimize our manufacturing footprint, and improve productivity.

Current wording

Restructuring charges. Restructuring charges of $6.3 million during the nine months ended September 30, 2026, were primarily related to management restructuring, footprint optimization, and other ongoing initiatives to right-size the organization in response to macroeconomic conditions. Restructuring charges of $2.5 million in the same period of 2025 were primarily related to initiatives to right-size the organization in response to macroeconomic conditions, optimize our manufacturing footprint, and improve productivity.

Previous wording

Currency exchange losses, net. Currency exchange losses were $2.1 million during the six months ended June 30, 2026, compared to $9.4 million in the same period of 2025. The currency exchange activity for both periods related primarily to foreign currency exposure on unsettled inter-company balances. Refer to Note 17—Derivative Financial Instruments to the unaudited condensed consolidated financial statements in Part I Item 1 of this Form 10-Q, for information regarding our currency exchange rate risk management strategy.

Current wording

Currency exchange losses, net. Currency exchange losses were $4.0 million during the nine months ended September 30, 2026, compared to $13.2 million in the same period of 2025. The currency exchange activity for both periods related primarily to foreign currency exposure on unsettled inter-company balances. Refer to Note 17—Derivative Financial Instruments to the unaudited condensed consolidated financial statements in Part I Item 1 of this Form 10-Q, for information regarding our currency exchange rate risk management strategy.

Previous wording

GAAP operating income. Consolidated operating income for the six months ended June 30, 2026, was $205.0 million compared to $163.6 million in the same period of 2025. The increase in operating results was primarily driven by higher gross profit and lower currency exchange losses, partially offset by higher SG&A and restructuring charges as discussed further above.

Current wording

GAAP operating income. Consolidated operating income for the nine months ended September 30, 2026, was $293.2 million compared to $257.9 million in the same period of 2025. The increase in operating results was primarily driven by higher gross profit and lower currency exchange losses, partially offset by inflation and higher SG&A and restructuring charges as discussed further above.

Previous wording

Adjusted operating income. Americas adjusted operating income for the six months ended June 30, 2026, was $207.2 million, an increase of $35.2 million, or 20.5%, compared to $172.0 million in the same period of 2025. The increase in adjusted operating income is attributable to increased sales and higher gross profit driven by price realization, productivity, and favorable transactional foreign currency, partially offset by higher SG&A expenses.

Current wording

Adjusted operating income. Americas adjusted operating income for the nine months ended September 30, 2026, was $303.9 million, an increase of $43.2 million, or 16.6%, compared to $260.7 million in the same period of 2025. The increase in adjusted operating income is attributable to increased sales and higher gross profit driven by price realization, productivity, and favorable transactional foreign currency, partially offset by higher SG&A expenses and inflation.

Previous wording

International adjusted operating income was $39.6 million, an increase of $0.7 million, or 1.9%, compared to $38.9 million in the same period of 2025. The increase was driven by increased sales and the contribution from M&C.

Current wording

International adjusted operating income was $71.4 million, an increase of $7.7 million, or 12.1%, compared to $63.7 million in the same period of 2025. The increase was driven by increased sales and the contribution from Autronica and M&C partially offset by slightly higher SG&A expenses.

Previous wording

Corporate expenses for the six months ended June 30, 2026, was $24.6 million, an increase of $2.7 million compared to $21.9 million in the same period of 2025, driven by increased variable compensation, increased professional service fees and inflation, partially offset by discretionary expense management.

Current wording

Corporate expense for the nine months ended September 30, 2026, was $38.1 million, an increase of $6.4 million compared to $31.7 million in the same period of 2025, driven by increased variable compensation, increased professional service fees and inflation, partially offset by discretionary expense management.

Previous wording

Total other expense, net. Total other expense for the six months ended June 30, 2026, was $0.6 million, compared to $2.9 million in the same period of 2025. The decrease was primarily related to increased pension income, a result of higher expected return on plan assets, which was partially offset by higher interest expense.

Current wording

Total other expense, net. Total other expense for the nine months ended September 30, 2026, was $6.9 million, compared to $4.8 million in the same period of 2025. The increase was primarily related to higher interest expense driven by increased borrowings for the Autronica acquisition and higher interest rates partially offset by increased pension income, a result of higher expected return on plan assets.

Previous wording

Income taxes. The reported effective tax rate for the six months ended June 30, 2026, was 23.0% compared to 23.8% in the same period of 2025. The decrease from the prior year was primarily driven by additional benefits associated with the finalization of initial global minimum corporate tax return filings (referred to as Pillar 2).

Current wording

Income taxes. The reported effective tax rate for the nine months ended September 30, 2026, was 24.6% compared to 24.2% in the same period of 2025. The increase from the prior year was primarily driven by additional expense associated with increased profitability in high tax jurisdictions and nondeductible transaction costs, partially offset by benefits related to export sales.

Previous wording

Net income. Net income was $157.5 million for the six months ended June 30, 2026, or $4.05 per diluted share, an increase of approximately 30%, compared to net income of $122.4 million, or $3.10 per diluted share, in the same period of 2025.

Current wording

Net income. Net income was $215.9 million for the nine months ended September 30, 2026, or $5.57 per diluted share, an increase of approximately 12%, compared to net income of $192.0 million, or $4.87 per diluted share, in the same period of 2025.

Previous wording

Adjusted operating income, adjusted operating margin %, adjusted EBITDA, and adjusted EBITDA margin % are non-GAAP financial measures and operating ratios derived from non-GAAP measures. Total reportable segment adjusted operating income is reconciled above to the nearest GAAP financial measure, operating income, and excludes restructuring, currency exchange, transaction costs, and acquisition-related amortization. Total reportable segment adjusted EBITDA is reconciled above to the nearest GAAP financial measure, net income, and, in addition to the items summarized above that are excluded from adjusted operating income (loss), excludes depreciation and amortization expense; interest expense; other income, net; and provision for income taxes. Adjusted operating margin % is defined as adjusted operating income (loss) divided by net sales to external customers and adjusted EBITDA margin % is defined as adjusted EBITDA divided by net sales to external customers. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities as well as to make strategic decisions about the business and allocate resources. Additionally, these non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers.

Current wording

Adjusted operating income, adjusted operating margin %, adjusted EBITDA, and adjusted EBITDA margin % are non-GAAP financial measures and operating ratios derived from non-GAAP measures. Total reportable segment adjusted operating income is reconciled above to the nearest GAAP financial measure, operating income, and excludes restructuring charges, currency exchange, transaction and digital transformation costs, and acquisition-related amortization. Total reportable segment adjusted EBITDA is reconciled above to the nearest GAAP financial measure, net income, and, in addition to the items summarized above that are excluded from adjusted operating income (loss), excludes depreciation and amortization expense; interest expense; other income, net; and provision for income taxes. Adjusted operating margin % is defined as adjusted operating income (loss) divided by net sales to external customers and adjusted EBITDA margin % is defined as adjusted EBITDA divided by net sales to external customers. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities as well as to make strategic decisions about the business and allocate resources. Additionally, these non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers.

Previous wording

Our main source of liquidity is operating cash flows, supplemented by borrowings. Our principal liquidity requirements are for working capital, capital expenditures, principal and interest payments on debt, dividend payments and share repurchases. At June 30, 2026, approximately 48% of our long-term debt is at fixed interest rates with repayment schedules through 2036. The remainder of our long-term debt is at variable rates on an unsecured revolving credit facility due in 2030. At June 30, 2026, approximately 83% of our borrowings are denominated in U.S. dollars, which limits our exposure to currency exchange rate fluctuations.

Current wording

Our main source of liquidity is operating cash flows, supplemented by borrowings. Our principal liquidity requirements are for working capital, capital expenditures, principal and interest payments on debt, dividend payments and share repurchases. At September 30, 2026, approximately 26% of our long-term debt is at fixed interest rates with repayment schedules through 2036. The remainder of our long-term debt is at variable rates on an unsecured revolving credit facility due in 2030. At September 30, 2026, approximately 91% of our borrowings are denominated in U.S. dollars, which limits our exposure to currency exchange rate fluctuations.

Previous wording

At June 30, 2026, the Company had cash and cash equivalents totaling $200.1 million. Cash and cash equivalents increased $35.0 million during the six months ended June 30, 2026, compared to decreasing $17.6 million during the same period in 2025. At June 30, 2026, $986.0 million of the existing $1.3 billion revolving credit facility was unused, including letters of credit issued under the facility. The facility also provides an accordion feature that allows the Company to access an additional $500.0 million of capacity pending approval by MSA’s board of directors and from the bank group. The Company also has access under the Prudential Note Agreement and NYL Note Facility, subject to the issuers' acceptance, to $195.0 million and $50.0 million aggregate principal amount, respectively, of senior unsecured notes.

Current wording

At September 30, 2026, the Company had cash and cash equivalents totaling $187.2 million. Cash and cash equivalents increased $22.2 million during the nine months ended September 30, 2026, compared to increasing $5.4 million during the same period in 2025. At September 30, 2026, $465.0 million of the existing $1.3 billion revolving credit facility was unused, including letters of credit issued under the facility. The facility also provides an accordion feature that allows the Company to access an additional $500.0 million of capacity pending approval by MSA’s board of directors and from the bank group. The Company also has access under the Prudential Note Agreement and NYL Note Facility, subject to the issuers' acceptance, to $195.0 million and $50.0 million aggregate principal amount, respectively, of senior unsecured notes.

Previous wording

Operating activities. Operating activities provided cash of $171.1 million during the six months ended June 30, 2026, compared to $129.1 million during the same period in 2025. The increased cash flow from operating activities was primarily related to higher operating results and lower cash used for variable compensation and other accruals as compared to the prior year.

Current wording

Operating activities. Operating activities provided cash of $253.4 million during the nine months ended September 30, 2026, compared to $241.5 million during the same period in 2025. The increased cash flow from operating activities was primarily related to higher operating results. Increased cash from working capital was offset by higher cash used for income taxes and other liabilities as compared to the prior year.

Previous wording

Investing activities. Investing activities used cash of $23.2 million during the six months ended June 30, 2026, compared to using $227.9 million during the same period in 2025. Capital expenditures drove cash outflows from investing activities during the six months ended June 30, 2026. The acquisition of M&C for $187.7 million and capital expenditures, including a $19.6 million strategic footprint investment, drove the cash used in investing activities for the six months ended June 30, 2025. We remain committed to evaluating acquisition opportunities which would enable us to continue to grow in key end markets and geographies, and have a robust pipeline.

Current wording

Investing activities. Investing activities used cash of $600.4 million during the nine months ended September 30, 2026, compared to using $239.9 million during the same period in 2025. The acquisition of Autronica for $563.1 million and capital expenditures drove cash outflows from investing activities during the nine months ended September 30, 2026. The acquisition of M&C for $187.8 million and capital expenditures, including a $19.6 million strategic footprint investment, drove the cash used in investing activities for the nine months ended September 30, 2025. We remain committed to evaluating acquisition opportunities which would enable us to continue to grow in key end markets and geographies, and have a robust pipeline.

Previous wording

Financing activities. Financing activities used cash of $105.9 million during the six months ended June 30, 2026, compared to providing cash of $74.0 million during the same period in 2025. During the six months ended June 30, 2026, we had net proceeds on long-term debt of $20.8 million as compared to net proceeds of $165.2 million during the same period in 2025, used primarily to fund the M&C acquisition. We paid cash dividends of $41.4 million during the six months ended June 30, 2026, compared to $40.9 million in the same period in 2025. We used cash of $86.4 million during the six months ended June 30, 2026, to repurchase shares, including $76.1 million related to our share repurchase program, compared to $48.9 million in the same period in 2025, including $40.0 million related to our share repurchase program. The remainder in both periods related to our employee stock compensation programs.

Current wording

Financing activities. Financing activities provided cash of $382.0 million during the nine months ended September 30, 2026, compared to $2.2 million during the same period in 2025. During the nine months ended September 30, 2026, we had net proceeds on long-term debt of $542.5 million used primarily to fund the Autronica acquisition as compared to net proceeds of $115.3 million during the same period in 2025, used primarily to fund the M&C acquisition. We paid cash dividends of $62.2 million during the nine months ended September 30, 2026, compared to $61.6 million in the same period in 2025. We used cash of $99.3 million during the nine months ended September 30, 2026, to repurchase shares, including $88.8 million related to our share repurchase program, compared to $50.0 million in the same period in 2025, including $40.0 million related to our share repurchase program. The remainder in both periods related to our employee stock compensation programs.

Previous wording

The position of the U.S. dollar relative to international currencies, primarily the euro, at June 30, 2026, resulted in a translation loss of $8.3 million being recorded to the cumulative translation adjustments shareholders' equity account during the six months ended June 30, 2026, compared to a $66.7 million translation gain being recorded to the cumulative translation adjustments shareholders' equity account during the same period in 2025.

Current wording

The position of the U.S. dollar relative to international currencies, primarily the euro, at September 30, 2026, resulted in a translation loss of $8.6 million being recorded to the cumulative translation adjustments shareholders' equity account during the nine months ended September 30, 2026, compared to a $65.0 million translation gain being recorded to the cumulative translation adjustments shareholders' equity account during the same period in 2025.

Previous wording

We made contributions of $4.5 million to our pension plans during the six months ended June 30, 2026. We expect to make net contributions between $8.0 million and $10.0 million to our pension plans in 2026, which are primarily associated with statutorily required plans in the International reporting segment.

Current wording

We made contributions of $6.7 million to our pension plans during the nine months ended September 30, 2026. We expect to make net contributions between $8.0 million and $10.0 million to our pension plans in 2026, which are primarily associated with statutorily required plans in the International reporting segment.