Asia FX moves little with focus on US-China trade, dollar steadies ahead of CPI
Investing.com - Stifel has raised its price target on MSA Safety (NYSE:MSA) to $187.00 from $182.00 while maintaining a Hold rating on the stock following the company’s second-quarter 2025 results. According to InvestingPro data, MSA currently trades at a P/E ratio of 24.9x and maintains a "GOOD" financial health score, with notably low price volatility.
The safety equipment manufacturer reported better-than-expected second-quarter performance, driven by healthy backlog conversion and an $11 million revenue contribution from M&C that was not fully reflected in consensus estimates. The Detection segment grew 6% organically, partly due to strong MSA+ trends.
MSA Safety experienced a 200 basis point year-over-year decline in adjusted operating margins, attributed to transactional foreign exchange impacts, inflation, volume challenges, and tariff headwinds, though these were partially offset by pricing and productivity improvements. The company plans additional pricing actions in the second half of 2025 and expects to achieve balanced price/cost by early 2026. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 3.11x and operates with moderate debt levels.
The company maintained its gross margin guidance of 47-48% for 2025, noting tariff and transaction foreign exchange headwinds in the second half of the year. Its book-to-bill ratio was slightly below 1.0, with strength in detection and fall protection offsetting softer trends in fire service and head protection segments.
MSA Safety reiterated its outlook for low-single-digit organic revenue growth for 2025, with M&C contributing an additional 200 basis points and foreign exchange potentially providing a 0-100 basis point tailwind.
In other recent news, MSA Safety reported impressive second-quarter results for 2025, surpassing market expectations. The company achieved an earnings per share of $1.93, which was higher than the forecasted $1.78, resulting in an 8.43% earnings surprise. Additionally, revenue reached $474 million, exceeding the anticipated $446.46 million and marking a 6.17% revenue surprise. These positive financial results have bolstered investor confidence in MSA Safety’s performance. Furthermore, DA Davidson raised its price target for MSA Safety from $203 to $208, while maintaining a Buy rating. The firm noted that MSA Safety expects low-single-digit organic growth for the year as fire brigades await new NFPA-compliant products. Purchases are reportedly delayed rather than canceled, according to DA Davidson. These developments highlight the company’s strong position and potential for growth in the coming months.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.