MSA - Earnings call 4 2023 | MSA Safety Incorporated

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Operator

Good day, and welcome to the MSA Safety Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Chris Hepler. Please go ahead.

Chris Hepler

Thank you. to Conference Fourth Call. welcome Year and and Earnings XXXX morning, MSA Quarter Safety Full Good This Corporate Relations. Development Chris and is Hepler, Investor Executive Director of With President and CEO; Chairman COO; Nish Lee CFO. me President and Vice Blanco, and and Senior McChesney, today are Steve Vartanian,

this meaning of begin, during of Securities Reform would Act the matters I forward-looking include we to remind Private may Before that statements XXXX. everyone like discussed call within the Litigation

levels to, statements performance. of include, anticipated but projections Forward-looking future limited all not and are

Forward-looking to publicly statements SEC forward-looking statements of our this factors number update any These risks, uncertainties call, may cause other and that by to law. in involve a from filings. today. other MSA our differ discussed and on required detailed factors actual made as those Safety uncertainties results undertakes risks, are except duty materially no

as presentation certain morning. presentation. the included The financial The non-GAAP Relations our release website at reconciliations Investor have appendix are non-GAAP this investors.msasafety.com. We of in and available are available measures our on discussion today's press of part

Moving agenda. today's on to

will provide key which we First, performance Steve your for review will outlook. up financial quarter Nish Lee will discuss year At and highlights then our fourth of and conclude, the call To and closing Nish comments. full will the XXXX. open time, questions.

With that, I'll turn to over the call Nish.

Nish Vartanian

Slide you interest the in X. do. your start and for Chris. Good morning, on thank everyone, Thanks, work we I'll

in the up results quarter excellent wrapping MSA. an and delivered team for performance, strong XXXX Our fourth with growth outstanding operational

on team I'm achievements throughout customers' momentum the in conditions, and our we're addressing that to and rising a and are for execution of toughest lingering global very dedication into outperformed challenges. our interest chains, our testament our macroeconomic rates results safety and year. Our XXXX. supply XXXX, dynamic . Despite the carrying proud mission pandemic effects passion to our

what's each critical has lives allows us bond to on MSA's over on protect partner its their to history the mission and and put sole be that solutions infrastructure they journey and environments. with on safety us we line and customers stake And X. the development and our day. in a of MSA This true XXX-year being when been recognize Moving to few at know Slide lives with alongside high-hazard our workers' purpose this in like a other products unique every them customers, provides companies. at

technologies, our responsibility around We Across million leading PPE passion we our drives XX and world. many safety, lightly. continuous more the It for innovation. firefighter this take not workers detection than industrial protect do

Now on Slide X.

we've and higher-growth, years, enhancing strategy has several With to and our driving and strategies build past with the and Over focused MSA our efficiency. been durability. greater company profitable innovation resiliency its at core, a centricity activities go-to-market increasing diligently customer-facing accelerating customer productivity working engine, our on more into

complement win To to several been diversify where across capital our and regions our deployed in underpenetrated. markets acquisitions and we've organic customers, our better end effectively expand efforts, we've serve

the over greater more deliberate Our to term. agile long in with stakeholder company an value resulted drive even actions high-performing, a ability

Slide impact X financial actions. summarizes the these of

deliver attractive an our talent earnings compounding to our rate. have We've to expansion added margin financial high-performance on well our move executed solid forward. while have this of while and We performance. points growth continuing to putting basis at incredibly MSA commitments build also XXX position I'm reinforce which a positioned on team's our accomplishments, we to as us of in culture, tremendous proud mid-single-digit

you who Steve, the will that, key I'll from quarter With to call over take the the highlights turn and year. through now

Steven Blanco

team and delivered and effective in commitments Slide execution. growth, the the excellent through The Thanks, fourth collaboration Nish, pleased and with good year. cash margin performance morning. I'm I'm our X. on quarter and on our

hold across footprint, take Business MSA and results. and Our are efforts seeing we continuous improvement our continue or global to System, initiatives MBS,

Our purpose. business team efficiency opportunities new operate and innovative solutions, with and to greater develop continues and safety secure introduce

serve everything we them front safety help innovation our do. We That in exist customers solve to and their and center challenges. and compliance puts

of work our the and customers and our we to efficiency, closely our with technologies, transparency processes, pain of cloud the impact We're have understand and deeply their outcomes. effectiveness world. differentiated and a development solutions products desired part and safety and on develop As programs latest around utilizing that program, points to AI material committed connectivity to delight deliver customers

supply development. flexibility, supply of to agile and through deliver team our io achieving has chain between able Controller nice and work chain a and constraints, being the and SENTRY the products, and commitments, and Driven product challenges new the NPD done With recent our several XX% we've to meet job demand SCBA, for on year. engagement been vitality like the product both by redesign new introducing MX existing exciting pivoting customer product

Fire, Los safety, as commercial such the City significant fire well. Pittsburgh portfolio in had wins. we the helmets growth solid firefighter On Authority. our Department, business U.S. Force side, wins, of across and we U.K. exciting healthy including and protective Midlands contract firefighter West several had Rescue We Bureau In as execution Fire and Fire Air Angeles and announced several authorities, the apparel

Bacharach's We including also detection Navy. U.S. fixed our across win new We products, the progress business landed solid business. made multiyear in with detection our

introduced with We also gas ALTAIR new our recently expanded portable X detector. io geographies into

to markets, strong continue energy LNG interest applications. hydrogen Additionally, including in our solutions we the and see in

drove team our the for growth PPE, year. double-digit industrial Within

business. the strong protection solutions, and in garner continue gain and like series, Our share, we differentiated fall head wins to interest secured attractive customer V-SHOCK our protection

by drove process rates of our of get hands to fill the support in our customers. business In we improvements product and system enhance supported growth, our

a growth to our We're recently modernized and and to productivity enhance the optimize global footprint across actions most to results support We multiyear new continued efficiency facility seeing global also Morocco opened in manufacturing business. in international our journey our our deliberate of future operations.

and execution, demonstrating portfolio solutions differentiated improvement the as healthy throughout demand robust and our finish growth, normalize. to remained ability chains combination conditions. to cash to our in had to the of and better X. highly year, firefighter supply a demand resilient We began industrial double-digit margin and to safety, execute Demand market we our year, sales PPE resulted able dynamic Moving strong were Slide serve our strong for flow. in strong detection The

continue operate in secular We and to our unique to a market on us with trends. positions growth portfolio these tailwinds, capitalize

profitable margins attractive on focus in conversion ample enhanced drive with growth. resources invest Our and opportunities provides us cash growth sustainable and to

continues values, bar bench. performance, our the core deepening while MSA execution, operational all strong Leveraging talent performance, commercial raise on to and with product our innovation the team

we already strong foundation. on and clear our and will build margin a have We trajectory future for growth enhancement,

company. thank concluding, the associates commitment our want more steadfast X,XXX to improvement our Before to drive advance than around across their our I world and mission for

call I'll now review our Lee over financial and turn to outlook. results the to

Lee McChesney

fourth will you, today. differentiated the Steve, good everyone. outlook. appreciate year review provide performance and Thank and XXXX XXXX morning, in I now the our color and joining our full We call quarter you on

XX Let's quarterly started on get highlights. the financial Slide with

are volume quarter, added an over our translation product year, up the also increase trends in XX% of of Orders had in positive regions. pricing healthy million, to X XXXX. $XXX prior currency balance fourth solid and growth. the so the similar in remained categories quarter a seeing we the We far and are Sales with and mid-single overall contributions digits, and points across

largely degree the patterns was the new to pipeline see business and our quarter, and generally levels. business healthy, Backlog very in normal is we firefighter safety Consistent and was are in normal active. our we conditions lesser reduction our our in below fourth continue closer a to Market book-to-bill business reduce Xx, with in backlog detection. to our

As increase converting the the sustainably due to customer an fulfillment our while began implementation past supply backlog improve, of team, and and our recognized chains inventories. through MBS, LEAN processes improve to reducing opportunity of principles

higher rates, As including a levels seeing result, cash and inventory fill in-full are meaningful conversion. on-time we reduced improved and benefits,

quarter leverage, profit in in and was was basis the year. Now range. in was benefits, moving to up over quarter. points were basis end operating margin to productivity our the the Adjusted of price/cost prior XX%, XX.X%, operating innovation. Operating And fourth Margin incremental XXX XXX at was on due prior basis GAAP higher the margins. on points volume largely XX.X% improved margin XX.X%, increases target over quarter the a year. margin the up Gross

operating all higher the adjusted basis, per prior XX% quarter expense offset in on Our margin the of per sustainable tax share or over due was higher an totaled which results. The income diluted focus laser quarter. across $X.XX, higher profit, P&L rate to partially adjusted was by increase diluted in improvements interest elements $XX a $X.XX On continue driving net were million the and the to GAAP yield the share. earnings largely year. up

safety increased benefit the and sales portfolio, was review productivity. XX% double-digit the with year-over-year. to and translation including segment our in also like expansion largely XX.X%, basis growth in was Adjusted our I'd leverage, In price was detection. growth by X% realization performance. a segment, Americas driven firefighter up Margin margin Currency points volume XXX operating across product year-over-year quarter. Now

benefit operating solid X% basis a across in Currency Adjusted year-over-year by well management was points quarter. margin in where up We balanced and X% translation mix. XXX leverage, the driven a volume also results was and regions. had price/cost by XX.X% segment, international our favorable improved of was product growth and year-over-year, categories

up demand price drove I'll where last versus from sales across total to segments year. XX% saw growth results. product categories. Now $X.X review moving volume net double-digit year Slide in and of contributions XX, healthy billion, with on both our full Broad-based We our

adjusted to was points diluted to Overall, share Adjusted the up XX% ahead. over continue years margin For operating Incremental earnings very identify and were strong, was year, XX%. last we performance margin year. basis prior XXX the opportunities XX.X%, further up year. in drive $X.XX, MSA's the operating improvement was from per

solid of the cash growth to with quarter in flow turning Free working and prior dividends in to earnings Free Slide million, XXX reduced by was capital, cash the conversion from higher year. debt basis from rate million shareholders. was in million XXX%. $XX in invested CapEx, benefited Now points representing XX. execution million $XX and $XXX a returned We $XXX repaid which flow

adjusting was million divestiture cash For million the year. compared $XXX completed for free year, in we $XXX flow full the the in prior January, to

to liability prioritize financial intention year, the leverage. the start conjunction XX the of position exceeded principles, divestiture the months. at we in significantly communicated the our in our to At net We the XXXX. across legacy of in debt our strengthened of reduction subsequent X.X our our finishing company subsidiary, year strong teamwork commitment, and use Through and the XX MBS we with collaboration

million $XXX of the was debt net robust $XXX million was at XX.X% cash year for $XXX EBITDA cash the since or debt million. year and generation, the a strategies. of divestiture growth investment profitable the and Adjusted full repaid as was million disciplined result We of Net sales. of end $XXX

Our profitable capital overall in strength the business enables to drive us to to continue return our excess investing financial and long-term growth shareholders.

Slide like solutions our our and our differentiated I'd the on sector in XXXX products a Now nature dynamics end to diversity underpin that and move demand, essential approach of on our our XX. balanced taken markets. the the We've outlook in portfolio positive outlook to of based stability industry and and

geopolitical be However, continues backdrop, to with increasingly of and outlook, responsibly ahead this climate. With remain the see risks we us. environment an we the opportunities dynamic in our which balances and operating uncertain optimistic macroeconomic

mid-single-digit flow XX% with conversion. targets and growth margin cash incrementals long-term sales with in and We generate to cash expect our incremental XXXX, near-XXX% XX% aligned flow free of conversion to

the in visibility in year, be from greater the the first differs have to and operating meaningfully of environment we event to agile will half expectations. our expect the continue We

I purposes, modeling will earnings. For the view that drivers on below-the-line provide our impact

between on is rate expense interest our current approximately million. to be tax be rates, expect $XX expected Based XX.X% in and XXXX. We to XX.X%

levels. other Finally, nonoperating pension to XXXX be and similar income will

execution As like solid I'd my for cash performance our across achieving sales, I XXXX share gratitude now excellent congratulations team and to and in flow. and on global to forward, profitability look also warm their

XXXX well shareholders. in sustainable on are our creating are and financial We entering firmly positioned for our commitments, value focused delivering on

turn back to call closing now for I Nish remarks. the

Nish Vartanian

Slide Lee. on I'm Thanks, XX.

out XXXX. close to team year outstanding a delivered Our quarter in an strong

further our all while These January our on provided delivering deployment also optionality. our strong business capital position continued purposeful margin improved for of have We cash flow and last growth, financial investment our divestiture actions the greater and we aspects and commitments. across made

customers the advance around of high-performing the around commitment our better the world enables I'm improvement are our confident to for by determination our our help creation our mission. Their make and focus We have serve continuous safety team choice will MSA and to customers mission. world. driven MSA shareholders who drive preferred value and long-term to a continue associates for our

detailed webcast excited One I of XX. New seeing York Slide of via last in and forward up, provide in a our on Day wrap thing event, where hosting before now this we'll New May strategy about and XX, Investor be I financial many I'm on to We'll York. business an goals. look you and review

operator With that, to back I'll for turn Q&A. the the call

Operator

[Operator Elliott Stanley Instructions] today with The first Stifel. from question comes

Stanley Elliott

Congratulations on XXXX. strong the very

Nish Vartanian

Thank Stanley. you,

Stanley Elliott

structure. or maybe Could you much first Then about terms versus in business? help even any how half you're year, talked might, us think or you're as half about new the still of growth half? the cadence, could thinking it's international it, dynamic. color guess, visibility share the second kind what get I You the of we all within in segment seeing with your Americas you reporting in not I the and maybe the How in of of about second should pretty

Nish Vartanian

Stanley, joined for the of the Stephanie of section just Is Sciullo, too. Americas, us thing, call. our President one Q&A has the

-- But we're color on I I the what then little and flip the and with business why to things to make seeing more quick there's Steve want don't Lee to point pace, business. I'll a one add on business over the real and

way somewhat in One earnings which takeaways of surprising the saw And is slowdown you is the number, me, the is business products. that in we in underneath to industrial the industrial probably of core described the the saw release. that it the strength X%, things we

strong at growth when think double-digit in those areas, those we're and areas you in good there in seeing in a growth about February you hats through those those QX, areas, when was fall So QX order and categories pace X hard look protection, too. in

pleased see we're to So that.

order slow which kick industrial Actually, we business, business as the never were all thought the good off in year, down, we as us as occurred. go XXXX, we pace to for see good would which all industrial we it's more core in the about, And waiting a we talked forward. gives recession confidence products

basis. I'll flip business a to that, the Steve about things talk over broad bit a to With more little on

Steven Blanco

I diversity little talk businesses. and you our markets, So and about look a when guess of at -- think we the back I'd about bit up the

start and think of interesting. So to Nish's industrial at when it's you look you that the really space of because commentary, specifically

So but seen it strength, Nish the has as moderated, we've talked about.

In stabilized. been some is bit in mixed. good markets been actually, seeing energy off, globally. The utilities pretty China, nice of strong. construction Pacific, country. that there's year this We're But And and Asia areas feel strength has excluding the the are good end overall, in year-to-date example. the little and strength we have certain U.S., it. The It's which we a even think incoming about on has market, for some pretty the

then good. pipeline that again, And has look been at The we good you very very about well. detection. strong. feel very, Fire looks Detection service, as

municipalities, governments, that solid. comes As the is funding you from know, and pipeline

visibility. So months, strong visibility really X first for the

which kind yet, way commented the as we have. Second there of is much half, we have we've don't just why

you do any? have Lee,

Lee McChesney

of a Yes. numbers, just Stanley. Maybe add I'll couple

about in fourth up we digits the being talked orders mid-single quarter. So

the you through XX on about to put sometimes, do up digits. the we the year, -- half broader it talk of even like I If than were second over mid-single days as

As I remarks, seeing noted well. type in to same 'XX my here start of as the we're

that's a So positive.

we as normal. will the backlog also noted, we've getting to normalize go think that We year. the is closer As through

through a generally, that the with how the probably how to us let's that, first an we served year. year like U.S., out. that's things and watch year plays accordingly plays just half. we'll out. an little bills as happen. in election -- And the So see last well go see it's the update that of in we'll spending just bit year, It's opportunity timing of That But

Stanley Elliott

can you progressing? been the you a Great. that And are about all Platform? all How Worker in of How that's about thinking reception What's basis? talk on kind the marketplace? Connected go-forward monetizing the

Nish Vartanian

go Yes. ahead I'm that. -- Yes, be sorry. take Yes. to able Steve Steve, will and

Steven Blanco

Sure.

which of prepared Connected about Work. around and tell is I talked io about when think would you, remarks, my I So we it, talked you think I the X, Work, in Connected

you progress platform. on that which now We our have We fire that have -- Connected of we've fire inside some categories as really with departments lot a and we service, X of And Work. at nice of utilization, that more look continue different know, seen we to firefighters increase. expect connected to

the Now that time service takes tell you really pretty revenue I maturity on there, the kick low would that in a because it -- from perspective, side. it's fire to

we where we call And On now industrial when specifically because markets nice and 'XX. predominantly in subscription really over as got really U.S. a of expand it in we've that's the as coverage, in We 'XX What's serve really we and space, sell nice of that's the service. bigger the take had the we think is you rate certainly now that, launched what to XX% available a the market enter first. it continued we've ones we MSA+.

we're that customer So response to grow really, the continue been has really to and solid. expecting

sales a be it's longer smaller, it's very piece So meaningful the base but a to business. a cycle continues little of our becoming and detection

Stanley Elliott

in And nice you're from will incremental that margins, sounds like any Is backlog. you're expand lastly, of And favorable there that think see seeing what of in about through we shouldn't book reason the XXXX? kind to I a flow outlook mix kind of margins guess business say again incremental seeing again the again? standpoint. in be what It

Nish Vartanian

don't Lee, you why take that?

Lee McChesney

Yes.

here. appreciate I good Stanley, So it question.

been it's our nice more with progress obviously margin momentum SG&A. gross recently So we with have made and certainly with continued then and some powered margin, operating certainly

this to margin now you're So XX% XX%, zone. right, from this forward XX%, moved XX% zone we've gross

last certainly this by That's about MBS. powered talked quarter. I

just with best and on form we and is that. it's of all work continued whether things this overall, or of and new products do costs, productivity, the focus driving So price like commitment our and innovation

So that's foundation. the

you 'XX I base. it's think about here, that as think really cementing about

comfortable rate the zone the year. this than to is quarter. lower Certainly, in for back XXXX. XX-ish see step There we're be go So with the exit always as I think then through differences going we it And by saw pretty the just first quarter we some up half. is you'll

in. is the So work

We on environment pretty have more see and the front It's we And I front it's the plans. moderating. not actions. really this a freight like executing still you'll down labor inflation nice even year, taken just set on and -- XX-ish now do appropriate But price margin. not And productivity then Things the sticky. innovation that think is is the think we've gross deflation. us it's because for of to percent and just cementing still MBS

Operator

question Maria William from comes next The with Larry De Blair.

Lawrence De Maria

I are win, wanted speak in if Phase Have U.K., and the mentioned there shoes might outlook some we you wins for about potential new I start wins come? fire the Can but you still seen talk happen, fire. guide? with some that's there's the these maybe in for already? to big more tenders? following and the Air maybe [ you know X, and ]? that, to what's What And can a related if to to in Force numbers the

Nish Vartanian

you that? don't take why Steve,

Steven Blanco

with is Yes, and there sure. going more at little bit new what some would we with comments see we the you I'd I maybe have with a MX. on the opportunities. There really Larry, guess And I nice the speak certainly expectations look fire, start that so when our to international pipeline, on in tenders.

to about really lot the was ability customers those the to problems bear, over talking are the There's and coming of really large next awareness. platform XX command that have I incident months their important a opportunities connected strong is in solve earlier and that and to

feel good market. we at we feel pretty we're really overall where good there, about and the So international about

got nice comparing Same here thing base scale, growth is U.S., it in we've U.S. to little the opportunities. but the a really different bit

is of we North the the I continues think a And intact, solid is So opportunity pipeline have and nice the world information really that's believe for the we telling going rest to really market in the all is a market us, of -- American us that forward. be forward. area going the

Lawrence De Maria

on the color Force? any And Air Great.

Steven Blanco

the A Force. bit Yes. Air little on

the Lee remainder, know, that X/X half. QX. -- to we I the of have left think we come invoice -- to to that's So for talk had don't I and the we first numbers. about in in that's did maybe can going Most the specific of But

you the Lee, give kind can specific? of

Lee McChesney

had So which in win, of we the a you your Larry, point, first of XQ 'XX. saw benefit and to XQ

in see -- portion You'll XQ see remaining that the of through come that primarily.

X. part out. just those still certainly the then of opportunity an it's and is that's our of back there, have things success timing expecting for we Phase a there certainly, are outlook And TBD. is of that we'll But for half. But one The the in well. to being you bit see kind if a that the not certainly timing reasons little see because does of of works how insignificant as back That's an us the hesitant half amount come one it of why it's on

Lawrence De Maria

Okay. of drive was I'm to you Have Morocco serves what what and That's just then Morocco kind talk not? you and in So need from through delineation that little or flesh if that does margin still kind Morocco? more Or a and ramp of volume it existing and we bit. talked of just it out we've And seen to little footprint curious -- impact gross that means? of just we a kind bit. the can perfect. the And there? seen sort adding now of international can efficiency whether about

Nish Vartanian

don't you So take Lee, that? why

Lee McChesney

sure. Yes,

question margin, I earlier, the Number the bigger because, with ops. productivity you're part we story based of just on said see So appreciate Larry. going go to being number one, as as forward it a I gross mentioned I even here, one, the

enable We're what level final ops, we're still are across productivity from at where from and to. workplace, things I'll coming site. doing transition it's of to But So higher a opened success. what in, is did we we the of pursuing say, more even part commercial

business. particular is nice in for our a think So fall Morocco protection I really about example

consistently across wanted and we the there, better on love to want the serve growth costs. double-digit the we to globe. we're the So we work growth customers But seeing

one that's kickoff. so running, off And just outlook and was nice on ready many for energized 'XX. team got But 'XX. a It in for there that to of we We take example a have our very sure.

Lawrence De Maria

We'll talk visit inorganic then And pipeline just could Okay. Can the you options That's out that of this to I one. about year, hear. there? have it. actionable are competition, good cetera? sneak one just in to multiples, and in if Things real et last

Nish Vartanian

Lee, Sure. go ahead.

Lee McChesney

I this way. you know can in answer certain only it love I a Sure. question because

So off start I'll this way.

We have shown again is really good. which in 'XX our it inherent ability us of to puts options, lot generate cash with and a

So organic on obviously, place first Larry, we is focus, the side.

it's whether accelerating that's it innovation, investing where in activation goes the our market, So first. analytics, the in abilities, MBS,

a track a we Certainly, have dividends, on trajectory there. great record wonderful

probably would we last the typically at action did we which some buyback do, share because of see point some on do divestiture. You'll like year

I'll then is that. in And up this in do deals back always here, odds. But record. the X from M&A. the all X I with shows optionality in, our us leads what and that We've years. in to And stepped never certainly track beat The say market. done we entire it team engaged We've

not certainly there We've to it take done see we It's we'll go it participate going that, fit. how again, to hit in on. very If the strategic we'll are in the process thresholds. overpay. It's a and financial got to better be because than most we're does got to we're willing companies out. do But works what disciplined

couple great, life. will we're the it happens doesn't And do to years, certainly but think come happen be over if next something I us successful of to have this this for to So year, year. engaged. it

Operator

next comes The Mason question Baird. from with Rob

Robert Mason

you wanted If your circle commentary full just back level half the the And mid-single-digit half think cadence planning just mean year. at for the first growth fair would I now, we be level, that? assume -- year that. this the the that if above through to have right confidence some would the second below point, to around I think to where

Nish Vartanian

don't that? why Lee, take you

Lee McChesney

Yes.

going half that's to a like 'XX year. I of 'XX. that. bit I So a approach the we're into think did little better the no, have Yes, We appreciate first certainly we view --

on the of So we for first your half. higher that Rob, math right, the mid-single-digit would end is growth be the

we We pricing to certainly will the mentioned environment earlier, think normalize. normalize, continues backlog

we all more in There's even we just but these some And larger it's confident of it's like half, things some back executing a of the opportunities. then is the cautious timing things I'm them. of out. there We're how about year, in what them, so the know earlier, bit play an just win election timing not out little market. mentioned we'll So see certainly just the of could more in of

baseline. our that's But

also talked the sales pretty If be enable we'd to with we us a incremental. not, in on side. to lower the be As that's the range. on lower about, we're XX% side, a supported by good higher view wise, margins it incremental be that XX% the If we're will of on side

in certainly environment just is now But -- macro and end incrementals. going a little growth, the higher that saw played us approach in that's Just we're in like fourth you right of the out We bit us the ended the what quarter. because -- take challenging. to higher see

year agile. it's be be to smart to and each way proven a just navigate So

Robert Mason

hydrogen, that Yes, makes a activity positioned But you of little how commented you there. I say through sense. CapEx if business bit of the I detection. some I around driving let's like an is newer. that markets, versus in expansionary of you a these mode. color in pipeline But But more could business, the be detection further. drill want LNG, pipeline know just into may more about that various portions even kind thinking looks to of what's little walk Steve, guess, more newer -- versus the good portion put a replacement could

Steven Blanco

Work market I to bit I'd to mean, the what and we think we're think about those really our I to a we to you we Yes, business. goes talked referenced markets energy see there. PPE, to portable space, but appreciation for opportunities solid, Connected to, That going the talked made they're portable about and similar Platforms be continue earlier. industrial well we plays continue that I very comments the Rob. glad see how little the And strong are, and with

forward, to you're off decarbonization. go clean of -- pivot -- opportunities, that's you If we real tailed I certainly, see it going good. has the there's -- detection what our that space, solutions, business mean, wouldn't some is have fixed base hydrogen, a going right. we've a around some some bit I fixed to necessarily. work the those been LNG We've seen monitoring it The has strong. on project seen and business little very of not energy

that So utilization a lot a there traction We're internationally. which and gaining but seeing interest and it's storage, the now. of activity CCUS, been around carbon capture, while, it's

So that opportunity be to as a we nice really expect well.

to strong forward point as portables area we the look Lee's So think behind is think is right of detection, and the is that monitoring think and we an there, growth really fixed a it. we we pipeline earlier, platform,

Robert Mason

still early those a was replacement to that lot of Are starting when to product that Very year, yet? good. runway. last I'm And initial start curious, international we're is the a the to Very certainly up good. of I question. it it's back market. the Steve, around on you of sense into the But first launched And you fire follow-up -- too -- replacement circle your guess for Or for happen? with GX, seeded market. side years if that maybe see -- just on in coming safety up just makes the commentary to XX the opportunities units given that units come

Steven Blanco

cycle -- a it's The Yes. good life question. really

on And closely. life very that typically watch is the XX-ish around average. we cycle So years

averages our likely. than that out past couple go customers But XX-ish XX. our out quite more at years, that, coming and a certainly we team around see that, longer little initial typically, yet. lot wouldn't have don't you see sooner pipeline up Some leak so play those than a that for some may a you bit them And back years, shows in

Operator

like any Chris question-and-answer for conference to This closing I remarks. concludes turn our the back session. Hepler over to would

Chris Hepler

the this continued joining Thanks, Betsy. morning We appreciate for in your you Safety. interest call MSA and

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Operator

The presentation. conference today's for concluded. Thank has attending now you

You may now disconnect.

MSA Safety (MSA) 15 Feb 242023 Q4 Earnings call transcript