What changed in this filing

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Item 1. Business

2025-02-14 compared with 2024-02-16 · 47 added, 53 removed, 147 unchanged (40% of the section changed)

Overview — MSA Safety Incorporated is the global leader in advanced safety products, technology and solutions.

Overview — MSA Safety Incorporated (the "Company" or "MSA") is the global leader in advanced safety products, technology and solutions.

Driven by its singular mission of safety, the Company has been at the forefront of safety innovation since 1914, protecting workers and facility infrastructure around the world across a broad range of diverse end markets while creating sustainable value for shareholders.

The Company's comprehensive product line, which is governed by rigorous safety standards across highly regulated industries, is used to protect workers and facility infrastructures around the world in a broad range of markets, including fire service, energy, utility, construction and industrial manufacturing applications as well as heating, ventilation, air conditioning and refrigeration ("HVAC-R").

The Company's product portfolio includes firefighter safety gear where core products include self-contained breathing apparatus ("SCBA"), protective apparel and helmets;

detection where core products include fixed gas and flame detection ("FGFD") systems and portable gas detection instruments;

and industrial personal protective equipment ("PPE") where core products include industrial head protection and fall protection devices.

The Company's principal product categories are fire service, detection and industrial personal protective equipment ("PPE").

Core products for fire service include self-contained breathing apparatus ("SCBA"), protective apparel and helmets;

core products for detection include fixed gas and flame detection ("FGFD") systems and portable gas detection instruments;

and core products for industrial PPE include industrial head protection and fall protection devices.

In addition to its principal product categories, MSA continues to deploy and grow its MSA+™ solution, a business approach that combines MSA hardware, software, and services to simplify safety operations for customers and deliver recurring revenue.

Examples of MSA+ offerings include MSA Grid and MSA FireGrid – cloud-hosted software platforms that provide situational awareness to customers during hazardous industrial and fire service activities while also streamlining everyday safety compliance and equipment maintenance procedures.

The Company’s leading market positions across various products in our portfolio are supported and enabled by a strong commitment to investing in new product development that continually raises the bar for safety equipment performance, all while upholding an unwavering commitment to integrity.

We dedicate significant resources to research and development, which allows us to produce innovative safety products that are often first to market and usually protected by intellectual property.

We dedicate significant resources to research and development, which allows us to produce innovative safety products and solutions that are often first to market and usually protected by intellectual property.

Our global product development teams include cross-functional associates throughout the Company, including research and development, marketing, sales, operations and quality management.

Our engineers and technical associates work closely with the safety industry’s leading standards-setting groups and trade associations to develop industry-specific product standards and to anticipate their impact on our product line.

We leverage the MSA Business System ("MBS") to develop and introduce innovative safety solutions, secure new business opportunities, and operate with greater efficiency and purpose.

We leverage the MSA Business System ("MBS") to develop and introduce innovative safety solutions, secure new business opportunities, and operate with greater efficiency.

The MBS is our approach to working at our best - at our most efficient and most empowered.

It is a combination of behaviors, processes and tools that provide a framework to drive continuous improvement and create intentional problem-solving practices that are consistent across the organization.

It is a combination of behaviors, processes and tools that provide a framework to run the business and continuously improve.

We strive to serve our customers and help them solve their safety and compliance challenges while creating value for our shareholders.

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Our commitment to MBS has enabled us to drive customer satisfaction and profitable growth while generating significant improvements in operating results.

Segments — We tailor our product offerings and distribution strategy to satisfy distinct customer preferences that vary across geographic regions.

Segments — We tailor our product and solution offerings and distribution strategy to satisfy distinct customer preferences that vary across geographic regions.

To best serve these customer preferences, we have organized our business into four geographic operating segments that are aggregated into three reportable segments:

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dollars and much of our business is conducted outside the U.S., currency fluctuations may affect our results of operations and financial position and may affect the comparability of our results between financial periods.

Products — We design, manufacture, and sell a comprehensive line of safety products and solutions to protect workers and facility infrastructures around the world.

Our products protect people and critical infrastructure against a wide variety of hazardous or life-threatening situations.

Products and solutions — We design, manufacture, and sell a comprehensive line of safety products and solutions to protect workers and facility infrastructures around the world.

Our products and solutions protect people and critical infrastructure against a wide variety of hazardous or life-threatening situations.

The following is a brief description of each of our product categories:

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Core products comprised approximately 92% and 91% of sales in 2024 and 2023, respectively.

The following is a brief description of our core product offerings within each of our Firefighter Safety, Detection and Industrial PPE portfolios:

Firefighter Safety

The following is a brief description of our core product offerings within each of our Fire Service, Detection and Industrial PPE portfolios:

Breathing apparatus products.

The Company's primary breathing apparatus product is the SCBA.

The Company's primary breathing apparatus solution is the SCBA.

SCBA are used by first responders, manufacturing and process industry plant workers and others entering an environment deemed immediately dangerous to life and health.

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The MSA M1 SCBA, which is our primary breathing apparatus product in the International segment, represents the most advanced and ergonomic SCBA we have launched in the International markets.

The “M” stands for modular, which is a critical design element that allows this platform to meet the many varied needs of customers around the world.

The “M” stands for modular, which is a critical design element that allows this platform to meet the needs of customers around the world.

We sell breathing apparatus across both the Americas and International segments.

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Our Cairns helmets are primarily used by firefighters in North America while the Gallet helmets are primarily used by firefighters across our International segment.

Globe Holding Company, LLC ("Globe") and B T Q Limited ("Bristol Uniforms"), two of our subsidiaries, are both leading innovators and providers of firefighter turnout gear and boots.

We recently introduced our Cairns® 1836 Fire Helmet, which includes embedded radio frequency identification (RFID) technology, providing the ability to quickly locate assets, through MSA’s FireGrid Inventory Management software.

Globe Holding Company, LLC ("Globe") and B T Q Limited ("Bristol Uniforms"), two of our subsidiaries, are both leading innovators and providers of firefighter protective apparel.

FGFD systems.

Our permanently installed FGFD systems are used in energy and utility applications, HVAC-R and general industrial production facilities to detect the presence or absence of various gases in the air.

Typical applications of these systems include the detection of an oxygen deficiency in confined spaces or the presence of combustible or toxic gases.

The FGFD product line generates a meaningful portion of overall revenue from recurring business including replacement components and related service.

We sell these products in both our Americas and International segments.

Key products include:

Our permanently installed FGFD solutions are used in energy and utility applications, HVAC-R, water and wastewater, food retail and general industrial production facilities to detect the presence or absence of various gases in the air.

Typical applications of these systems include the detection of an oxygen deficiency in confined spaces or the presence of combustible or toxic gases as well as detecting leaks of refrigerants.

The FGFD product and solution line generates a meaningful portion of overall revenue from recurring business including replacement components and related service.

We sell these products and solutions in both our Americas and International segments.

Key products and solutions include:

• Fixed gas detection monitoring systems.

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Our systems are used for gas detection in energy, pulp and paper, wastewater, refrigerant monitoring, pharmaceutical production and general industrial applications.

One of our flagship products is the Ultima ® X5000 and S5000 gas monitors which enhances facility and worker safety while lowering overall cost of ownership for our customers through differentiated sensor technology.

Some of our flagship products include the Ultima ® X5000 and S5000 gas monitors, which enhance facility and worker safety while lowering overall cost of ownership for our customers through differentiated sensor technology.

These systems utilize a wide array of sensor technologies including electrochemical, catalytic, infrared and ultrasonic.

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These systems use infrared optics to detect potentially hazardous conditions across long distances, making them suitable for use in applications such as processing industries, storage vessels and HVAC ducts.

In 2021 MSA acquired Bacharach, Inc.

and its affiliated companies ("Bacharach"), a leader in gas detection technologies used in the HVAC-R markets.

Bacharach’s advanced instrumentation technologies help protect lives and the environment, while also increasing operational efficiency for its diversified customer base.

Bacharach's portfolio of gas detection and analysis products are used to detect, measure and analyze leaks of various gases that are commonly found in both commercial and industrial settings.

Bacharach has strong expertise in the refrigerant leak detection market with customers in the HVAC-R, food retail, automotive, commercial and industrial refrigeration, and military markets.

• Refrigerant detection and identification .

Our refrigerant leak detection monitors, such as the MSA Bacharach ® Multi-Zone Gas Monitor and the MSA Chillgard ® 5000 Refrigerant Leak Monitor, help identify and mitigate refrigerant leaks.

Users can enhance their leak detection and mitigation efforts by utilizing MSA+ solutions, like the MSA Parasense Refrigerant Tracking and Compliance software and the MSA Parasense Enterprise Leak Detection software.

These solutions provide users with real-time monitoring and alerts.

Portable gas detection instruments.

Our hand-held portable gas detection instruments are used to detect the presence or absence of various gases in the air.

Our handheld portable gas detection instruments are used to detect the presence or absence of various gases in the air.

The product line is used by energy, utility, general industrial workers as well as first responders or anyone working in a confined space environment.

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We sell portable gas detection instruments in both our Americas and International segments.

MSA also leverages proprietary Internet of Things solutions and wireless solutions to connect certain MSA hardware products directly to our cloud offering ("MSA Grid").

MSA Grid offers solutions for both fleet management and live monitoring while interfacing directly with the breadth of available MSA hardware products.

Through this cloud technology, MSA provides services that enhance worker safety and accountability through additional transparency that does not normally exist in industrial settings.

Industrial PPE

Industrial PPE and Other

Industrial head protection.

We offer a complete line of industrial head protection and accessories that includes the iconic V-Gard® helmet brand, a bellwether product in MSA's portfolio for over 50 years.

We offer customers a wide range of color choices and we are a leader in the application of customized logos.

We recently introduced the V-Gard C1™ hard hat with patent-pending ReflectIR™ thermal barrier technology which helps to reduce temperatures inside the hard hat for a cooling effect to the wearer.

We offer customers a wide range of color choices for V-Gard helmets, and we are a leader in the application of customized logos.

Our V-Gard H2™ safety helmet incorporates the latest technology to help protect against lateral impacts.

The optional Mips ® brain protection system for industrial safety helmets adds another layer of protection designed to help reduce the risk of brain trauma.

Our industrial head protection products have a wide user base, including energy, utility, non-residential construction and industrial workers.

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MSA’s V-Series ® fall protection equipment has transformed the Company’s harness and self-retracting lanyard portfolio, with over 50 fall protection products launched over the past several years.

Additionally, we recently launched a patent-pending Personal Fall Limiter with a smart hook connector that uses radio-frequency identification ("RFID") technology to alert wearers when they are not secured to an anchorage point.

Our safety solutions platform that integrates safety hardware technology, cloud software solutions and safety services was launched in 2022.

MSA+ offerings span across our portfolio to include certain products across Firefighter Safety, Detection and Industrial PPE offerings.

By integrating these products with our cloud services and coupling them with subscription pricing, MSA improves access to our solutions and facilitates the digital transformation of safety programs while further accelerating our recurring revenue business.

Additionally, our V-TEC ® io1 self-retracting lifeline has a patented smart hook connector that uses radio-frequency identification (RFID) technology to alert wearers when they are not secured to an anchorage point.

Non-core products.

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Customers — Our customers generally fall into two categories:

distributors and end-users.

distributors and end-user customers.

In our Americas segment, the majority of our sales are made through distribution.

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To better serve our customers and to ensure that our sales and marketing associates are among the most knowledgeable and professional in the industry, we place significant emphasis on training our sales associates in product application, industry standards and regulations.

We believe our sales and distribution strategy allows us to deliver a customer value proposition that differentiates our products and services from those of our competitors, resulting in increased customer loyalty and demand.

We believe our sales and distribution strategy allows us to deliver a customer value proposition that differentiates our products and solutions from those of our competitors, resulting in increased customer loyalty and demand.

In areas where we use indirect selling, we promote, distribute and service our products to general industry through authorized national, regional and local distributors.

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Because of our broad and diverse product line and our desire to reach as many markets and market segments as possible, we have over 2,100 authorized distributor locations worldwide.

Competition —The global safety products market is broad and highly fragmented with few participants offering a comprehensive line of safety products.

Competition —The global safety products and solutions market is broad and highly fragmented with few participants offering a comprehensive line of safety products and solutions.

The sophisticated safety products market in which we compete is comprised of both core and non-core offerings and is a subset of the larger safety market.

We maintain leading positions across various products in our portfolio.

Over the long-term, we believe global demand for safety products will continue to grow.

Purchases of these products are non-discretionary, protecting workers' health and critical infrastructure in hazardous and life-threatening work environments.

Over the long-term, we believe global demand for safety products and solutions will continue to grow.

Purchases of these products and solutions are non-discretionary, protecting workers' health and critical infrastructure in hazardous and life-threatening work environments.

Their use is often mandated by government and industry regulations, which are increasingly enforced on a global basis.

The safety products market is highly competitive, with participants ranging in size from small companies focusing on a single type of PPE to several large multinational corporations that manufacture and supply many types of sophisticated safety products.

The safety products and solutions market is highly competitive, with participants ranging in size from small companies focusing on a single type of PPE to several large multinational corporations that manufacture and supply many types of sophisticated safety products and solutions.

Our main competitors vary by region and product.

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Research and Development — To achieve and maintain our market leading positions, we operate several sophisticated research and development facilities.

We believe our dedication and commitment to innovation and research and development allows us to produce state-of-the-art safety products that are often first to market and exceed industry standards.

We believe our dedication and commitment to innovation and research and development allows us to produce state-of-the-art safety products and solutions that are often first to market and exceed industry standards.

Our primary engineering groups are located in the United States, Germany, France, China and South Africa.

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In addition to our patents, we have also developed or acquired a substantial body of manufacturing know-how that we believe provides a significant competitive advantage over our competitors.

Raw Materials and Suppliers — Many of the components of our products are formulated, machined, tooled or molded in-house and by select tier one supplier partners, which comprise approximately two-thirds of our cost of sales.

Raw Materials and Suppliers — Many of the components of our products are formulated, machined, tooled or molded in-house and by select tier one supplier partners.

Material costs comprise approximately two-thirds of our cost of sales.

For example, we rely on integrated manufacturing capabilities for breathing apparatus, gas masks, ballistic helmets, hard hats and circuit boards.

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We purchase these materials both domestically and internationally, and we work to ensure our supply sources are both well established and reliable.

In spite of some market-softening, especially in the consumer space, the demand for certain industrial-based electronic components continues to outpace supply.

For these key electronic components (specifically, components manufactured in larger process nodes), lead times remain extended and the overall market constrained, which is not unique to MSA.

Demand for certain industrial-based electronic components is gradually aligning with supply.

For key components, lead times are improving, and market conditions are showing signs of stabilization across the industry.

We continue to effectively navigate these supply chain issues, as we have close supplier relationship programs with our key raw material distributors and strategic supplier partners.

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This includes access to visits with mental health care providers through the program.

Diversity and Inclusion —Diversity and Inclusion is a Core Value at MSA, and the Company seeks a wide variety of people, thoughts, perspectives, and ideas.

MSA strives to provide a diverse and inclusive work environment, paired with a culture of excellence in which associates feel comfortable openly sharing thoughts and ideas.

Diversity and Inclusion —Diversity and Inclusion is a Core Value at MSA, and the Company seeks a wide variety of thoughts, perspectives, experiences and ideas.

MSA strives to provide an inclusive work environment, paired with a culture of excellence in which associates feel comfortable openly sharing thoughts and ideas.

Creating an inclusive environment helps to recruit and retain talent, promoting engagement, fostering innovation, and achieving MSA’s business objectives.

The Company maintains several Employee Resource Business Groups designed to foster a culture that is both engaged and inclusive.

These groups are voluntary, associate-driven communities that capitalize on the wide variety of people and perspectives at MSA, driving our core value of Diversity and Inclusion.

The Company also maintains an Executive Diversity Council and several regional councils focused on increasing organizational awareness, accountability and impact of Diversity and Inclusion initiatives.

MSA also partners with a number of non-profit and community-based organizations to help to build a pipeline of future talent with differing backgrounds, thoughts, experiences, and perspectives.

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This includes women who comprise approximately 40% of our U.S.

Among associates within executive pay grades, 46% self-identify as diverse.

We determine race and gender diversity based on our employees’ self-identification or other information compiled to meet the requirements of the U.S.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business