MSA 세이프티(MSA) 2026년 3분기 실적 발표 콜: 매출 15% 증가, 전망치 유지

핵심 요약

• MSA 세이프티의 2026년 3분기 매출은 5억 3,600만 달러로, 전년 동기 대비 15% 증가했으며, 여기에는 6%의 자체 성장, 오트로니카의 기여분 8% 및 1%의 환율 호재가 포함되었습니다.
• 조정 희석 주당순이익(EPS)은 8% 증가한 2.09달러를 기록했습니다. 조정 영업이익률은 21.4%로 70bp 하락했으며, 이는 주로 오트로니카 인수에 따른 50bp의 희석 효과를 반영한 것입니다.
• 소방 서비스 분야의 자체 매출은 9% 증가했고, 산업용 개인보호구(PPE)는 7% 성장했습니다. 감지 부문 매출은 보고 기준 22% 증가, 자체 기준으로는 2% 증가했습니다.
• 오트로니카는 분기 매출 중 3,900만 달러를 기여했습니다. 이번 인수로 감지 사업의 비중은 MSA 전체 사업의 약 45%로 확대되었으며, 해당 분기 조정 EPS에는 중립적이었습니다.
• 자체 주문은 두 자릿수 성장률을 기록했으며, 수주대비매출비율(book-to-bill)은 1을 상회했습니다. 현재 커넥티드 제품은 휴대용 가스 감지기 매출의 15%를 차지하고 있습니다.
• 경영진은 2026년 실적 전망으로 10%대 초반의 매출 성장과 47.5%~48.5% 수준의 조정 매출총이익률을 유지했습니다.

주요 재무 데이터

올해 누적 보고 매출은 10% 증가했으며, 이 중 자체 성장률은 4%를 차지했습니다. 조정 영업이익률은 90bp 확대되었으며, 조정 한계영업이익률 32%를 기록했습니다. 조정 EPS는 올해 누적 기준 17% 증가했습니다.

가격 인상 및 생산성 향상 조치를 통해 인플레이션과 불리한 제품 조합(믹스)의 영향을 완전 상쇄하였으며, 이는 인수 관련 희석 효과 차감 전 기준 50bp의 총이익률 개선에 기여했습니다. GAAP 실적은 인수 관련 상각비 및 거래 비용의 영향을 받았습니다.

사업 및 영업 실적

감지 제품 부문

보고 기준 감지 제품 매출은 22% 증가한 반면, 자체 매출은 2% 증가했습니다. 휴대용 가스 감지 분야는 호조를 나타냈으나, 고정식 가스 및 불꽃 감지기는 중동의 지정학적 상황으로 인해 지속적인 압박을 받았습니다. 경영진은 해당 분쟁으로 인해 올해 누적 회사 성장률이 약 1.5%포인트 감소한 것으로 추정했습니다.

커넥티드 기기는 휴대용 가스 감지 부문 성장의 약 절반을 차지하며 전체 휴대용 제품 매출의 15%에 달해 전년 동기의 10%에서 상승했습니다. 또한 MSA는 미국 북동부의 주요 유틸리티 기업으로부터 커넥티드 휴대용 가스 감지기인 ALTAIR io 6에 대해 역대 최대 규모의 주문을 수주했습니다.

오트로니카(Autronica) 인수로 MSA의 전체 잠재시장(TAM)이 30억 달러 이상 확대되었습니다. 경영진은 통합 작업이 계획대로 진행 중이며, 인수 후 첫 1년 동안 조정 주당순이익(EPS)이 증가할 것으로 예상한다고 밝혔습니다.

소방 서비스 및 산업용 PPE

소방 서비스 분야의 자체 매출은 9% 증가했으며, 이는 미주 지역의 공기호흡기(SCBA) 수요와 글로브(Globe) 방화복이 견인했습니다. 해외 소방 서비스 매출은 M1 SCBA 및 주요 방화복 수주에 힘입어 두 자릿수의 자체 성장률을 기록했습니다.

G1 시티 에디션 SCBA는 지난 9월 출시되었으며, LUNAR 비콘 기술을 탑재하고 FIREGRID와 연동되어 위치, 경보 상태, 공기압 데이터를 제공합니다. 경영진은 초기 고객 반응이 긍정적이었으며, 이 제품이 향후 소방 서비스 시장 기회에서 MSA의 경쟁적 입지를 다지는 데 기여할 것으로 기대한다고 밝혔습니다.

산업용 PPE 자체 매출은 7% 증가했습니다. 미주 지역 성장은 V-Gard H2 타입 2 안전모의 도입과 북미 산업 설비 투자의 지속적인 수혜를 입었습니다. 방탄 보호 헬멧에 대한 해외 수요 역시 강세를 유지했습니다.

지역별 실적

미주 지역 매출은 보고 기준 8% 및 자체 기준 7% 증가했습니다. 조정 영업이익률은 30bp 상승한 28.6%를 기록했으며, 이는 주로 매출총이익 확대에 기인합니다.

해외 매출은 28% 증가했으며, 여기에는 2%의 자체 성장과 오트로니카 인수에 따른 26%포인트의 기여가 포함되었습니다. 조정 영업이익률은 16.1%로, 전년 동기 대비 10bp, 전분기 대비 60bp 상승했습니다.

경영진 가이던스

MSA 세이프티(MSA Safety)는 2026년 연간 10%대 초반의 매출 성장률 전망을 유지했으며, 주요 근거는 다음과 같습니다:

• 한 자릿수 중반대의 자체 성장률
• 인수에 따른 한 자릿수 중반대의 기여
• 9월 환율 기준 1~2%포인트의 우호적인 환율 영향

경영진은 소방 서비스 및 산업용 PPE가 4분기 자체 성장을 견인할 것으로 예상하고 있습니다. 감지 기기(Detection) 부문은 중동 분쟁과 전년 동기 대형 고정식 모니터링 장비 출하에 따른 역기저 효과로 압박을 받고 있습니다.

회사는 인수 관련 상각비를 제외한 연간 조정 매출총이익률 전망을 47.5%~48.5%로 유지하고 있습니다. 경영진은 또한 연간 최소 30~50bp의 영업이익률 확대 및 30%~40%의 증분 이익률 목표를 재확인했습니다..

리스크 및 주시 영역

• 중동의 지정학적 상황이 고정식 가스 및 불꽃 탐지기 매출에 지속적으로 부담을 주고 있습니다.
• 전년도에 대규모 고정식 모니터링 수주가 다수 발생함에 따라 탐지 부문은 4분기에 전년 동기 대비 어려운 실적 비교에 직면해 있습니다.
• Autronica 인수로 인해 3분기 매출총이익률과 영업이익률이 희석되었으나, 경영진은 시너지 효과가 2027년부터 기여하기 시작할 것으로 예상하고 있습니다.
• 미국 소방관 지원 보조금(AFG) 자금이 9월 말에 집행되었습니다. 경영진은 12월 중순까지 정부 지원금 집행 기간이 유지되는 동안 소방서들이 주문을 완료해야 한다고 언급했습니다.
• 이번 분기에는 마진이 높은 탐지 제품보다 소방 서비스 및 산업용 개인보호장비(PPE)의 매출 비중이 커지면서 제품 믹스가 불리하게 작용했습니다.
• 경영진은 소방 서비스 시장이 경쟁적이라고 설명했지만, 수주 성공률, 가격 책정 또는 경쟁 구도에서 중대한 변화는 관찰되지 않았다고 밝혔습니다.

애널리스트 Q&A 하이라이트

경영진은 약 300만 달러 규모의 2025년 보조금 지원 소방 서비스 잔여 주문이 이번 분기 미주 지역에서 완료되었다고 밝혔습니다. 현재 주문 속도는 정상적인 계절적 패턴에 가깝게 회복되었으며, 파이프라인과 수주 잔고는 강력한 4분기를 전망하는 경영진의 기대를 뒷받침합니다.

마진과 관련해 경영진은 전략적 가격 책정, 가치 공학, 운송비 관리 및 운영 시스템 이니셔티브를 주요 회복 동인으로 꼽았습니다. Autronica와의 시너지 효과는 향후 실적에 기여할 것으로 예상되며, 이번 인수는 첫 정식 연도부터 이익을 증대시킬 것으로 전망됩니다.

MSA는 포트폴리오 전반에 걸쳐 인수 기회를 지속적으로 검토하고 있으며, 현재는 탐지 부문에 인수 활동이 더 집중되어 있습니다. 경영진은 일부 인수 후보 대상의 가격이 회사가 추진하려는 수준을 상회하고 있다고 밝혔습니다.

회사는 5월에 전략과 중기 재무 목표에 대한 업데이트된 비전을 포함한 투자자 브리핑을 제공할 계획입니다.

실적발표 콘퍼런스콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good day, and welcome to the MSA Safety Third Quarter 2026 Earnings Conference Call. [Operator Instructions]

Please note this event is being recorded. I'd now like to turn the conference over to Tyler Herzing. .

Tyler Herzing

Thank you. Good morning, and welcome to MSA Safety's Third Quarter 2026 Earnings Conference Call. This is Tyler Herzing, Senior Manager of Investor Relations. I'm joined by Steve Blanco, President and CEO; Julie Beck, Senior Vice President and CFO; and Stephanie Sciullo, President of our Americas segment.

During today's call, we will discuss MSA's Third quarter 2026 financial results and provide an update on our full year 2026 outlook. Before we begin, I'd like to remind everyone that the matters discussed during this call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, all projections and anticipated levels of future performance. Forward-looking statements involve a number of risks, uncertainties and other factors that may cause our actual results to differ materially from those discussed today. These risks, uncertainties and other factors are detailed in our SEC filings. MSA Safety undertakes no duty to publicly update any forward-looking statements made on this call, except as required by law. We have included certain non-GAAP financial measures as part of our discussion this morning. The non-GAAP reconciliations are available in the appendix of today's presentation.

The presentation and press release are available on our Investor Relations website at investors.msasafety.com. Moving on to today's agenda. Steve will first provide an update on the business. Julie will then review our third quarter 2026 financial performance and 2026 outlook. Steve will then provide closing remarks. We will then open the call for your questions. With that, I'll turn the call over to Steve Blanco. Steve?

Steven Blanco

Thanks, Tyler, and good morning, everyone. Again, we appreciate your continued interest in MSA Safety. Before we dive into the results for the third quarter, I'd like to share a recent customer save story that serves as a powerful reminder of why MSA's mission matters. Just last month, a firefighter responding to a residential structure fire in New Hampshire was caught in a flashover event. One of the most dangerous situations at firefighter can face. Despite being exposed to extreme heat and flames, he was able to escape the structure and make it out safely. .

Following the incident, department officials pointed to the performance of their recently issued Globe turnout gear during what they described as a significant thermal event. Stories like this bring MSA's mission of safety to life and there is no better measure of success than helping the firefighter return home safely.

Now moving to Slide 6. Our team delivered strong results, achieving 15% reported sales growth with 6% organic and adjusted earnings per share of $2.09, up 8% from last year. At the same time, we continue to execute on key strategic priorities, including the completion of the Altronic acquisition, which grows our detection sales to approximately 45% of total business as well as the introduction of the G1 City Edition SCBA, which further strengthens our leadership position in the Americas fire service market.

Now looking at sales by product category, Including sales from Altronica, reported sales growth in detection was 22%. Organic deduction sales increased 2% year-over-year with strength in portable gas detection offset by fixed gas and flame detection. Fixed detection growth was impacted by the ongoing geopolitical conditions in the Middle East. Year-to-date, the direct sales impact of the conflict represents about a 1.5 percentage point headwind to overall company growth. In fire service, organic sales increased 9% year-over-year, primarily due to the strength in Americas SCBA and Globe turnout gear. 2026 AFG funding was released in late September -- and as expected, we've seen a more normalized operating environment thus far in the fourth quarter.

In International, EMEA and APAC contributed double-digit organic growth from strong sales of the M1 SCBA and key turnout gear orders. For industrial PPE, our organic growth was 7%. In the Americas, strength was driven by demand tied to the ongoing market adoption of our type 2 safety helmet, the H2 and was supported by continued industrial capital investment across North America. In international, growth in protective ballistic helmets remained robust.

Overall, the third quarter was an excellent example of our ability to deliver strong growth through a diversified product, market and geographic portfolio. Year-over-year, organic orders were up double digits with a book-to-bill above 1 in line with seasonal patterns. Order growth was broad-based across our product categories and included the largest MSAs order to date. Across our portfolio, we continue to benefit from market adoption of higher-value solutions that improve both worker safety and productivity.

Moving to Slide 7. Our third quarter performance reflects continued execution of our Accelerate strategy while strengthening our position for sustained long-term growth. The third quarter marked an important step forward in the evolution of our business with the completion of the Altronica acquisition. Again, Atronica broadens our detection platform expands our addressable market by more than $3 billion and strengthens and enhances our ability to engage customers earlier in the new project life cycle with a more comprehensive solution-led offering. The early stages of integration are progressing well, and the business contributed $39 million of sales in the quarter.

In addition to our investment in inorganic growth, our prioritized investment in voice and customer-driven research and development continues to translate into differentiated innovation. As I mentioned earlier, we recently received our largest MSAs order from a major utility customer in the Northeast United States for our Altair IO6 connected portable gas detector highlighting continued momentum in Connected Safety. Connected devices again represented about half of total portable gas detection sales growth in the quarter and now account for 15% of total portable sales.

Also in September, we launched the new G1 City Edition SCBA. Moving to Slide 8. The city addition is the latest update to our market-leading G1 platform and reflects our continued focus on meeting evolving customer needs. Developed through direct collaboration with fire departments, it translates customer insights into differentiated technology and ergonomics to help protect firefighters. Importantly, the City addition strengthens our leading position in the Americas SCBA market and positions MSA well for future opportunities across North America. At the center of the product is integration of our Lunar Beacon technology directly into the SCBA.

If a firefighter encounters an alarm condition or search and rescue situation, crews using a LUNA device receive information directly from the CBA to help them locate that firefighter more quickly, while FIREGRID provides real-time visibility into critical information such as location, alarm status and air pressure. Together, these advancements create a differentiated connected solution focused on improving situational awareness, safety and accountability.

With that, I'd now like to turn the call over to Julie to walk through the financial results for the third quarter in more detail and our '26 outlook. Julie?

Julie Beck

Thank you, Steve, and good day, everyone. We appreciate you joining the call. As we completed the Atranica acquisition, our third quarter GAAP financial performance was impacted by acquisition and transaction costs. Gross profit was negatively impacted by amortization and SG&A was negatively impacted by transaction costs. These adjustments also impacted operating income, net income and earnings per share. Please refer to the appendix of our earnings presentation for detailed reconciliations.

Starting on Slide 10 with the quarterly financial highlights. Third quarter sales were $536 million, an increase of 15% over the prior year. Sales were up 6% on an organic basis while Altronica added 8% and currency translation was a 1% tailwind. Positive price and volume contributed to organic growth. Year-to-date reported sales growth is 10%, including 4% organic. Adjusted gross margin was 47%, down 20 basis points from the prior year including 70 basis points of dilution from Altronica.

Price and productivity actions fully offset inflationary pressures and unfavorable mix and contributed 50 basis points of margin expansion from the prior year. On a year-to-date basis, adjusted gross margin has increased 140 basis points from the prior year, including Altronica. In the third quarter, we continued to invest in our innovative safety products and solutions with quarterly R&D investment of $20 million, a 20 basis point increase as a percentage of sales, including Altronica. Excluding transaction costs, SG&A increased from the prior year, driven by the inclusion of Autronica, higher variable compensation, commercial investments and inflation. Adjusted operating margin was 21.4%, down 70 basis points from last year, primarily reflecting Autronica dilution of 50 basis points.

Year-to-date, adjusted operating margin is up 90 basis points with an adjusted incremental operating margin of 32%. Adjusted diluted earnings per share were $2.09 and up 8% from last year. Increased organic sales and margin expansion were the primary drivers of earnings per share growth with an additional benefit from share repurchases. Year-to-date, adjusted earnings per share are up 17%. The acquisition was neutral to adjusted EPS in the third quarter, we expect it to be accretive to adjusted EPS in the first full year of ownership. Now I'd like to review our segment performance.

In our Americas segment, sales increased 8% year-over-year on a reported basis, 7% organic. Currency translation added a 1% tailwind to reported growth. We delivered high single-digit organic growth in fire service and industrial PPE, along with mid-single-digit growth in detection. The adjusted operating margin was 28.6%, a 30 basis point increase compared to the previous year. The margin improvement was primarily due to gross profit expansion.

In international, sales increased 28% year-over-year. The organic increase was 2%, while Autronica add 26%. The organic increase reflects double-digit growth in fire service and low single-digit growth in industrial PPE, partially offset by a mid-single-digit organic contraction in detection associated with the ongoing Middle East conflict. Adjusted operating margin was 16.1%, 10 basis points above last year and 60 basis points higher than the second quarter. Margin expansion from a year ago was driven by Atronica. Improvements in the second quarter reflect operating expense leverage.

Now turning to Slide 11. We generated free cash flow of $68 million with strong conversion. lower year-over-year free cash flow primarily reflects costs associated with the Atronica acquisition. Year-to-date, free cash flow is up 14% over last year with conversion of 100% or Free cash flow generation, along with the strong balance sheet position us to continue advancing our Accelerate strategy. We continue to deploy capital in line with our capital allocation priorities, in addition to the Altronica acquisition, we returned $34 million to shareholders through $21 million of dividends and $13 million of share repurchases.

Liquidity was approximately $655 million, and our weighted average interest rate was 4.4% at quarter end. With the acquisition, net debt increased by $534 million sequentially, which includes $50 million of debt repayment in the third quarter post acquisition. Our net leverage at quarter end was 1.7x, below the pro forma estimate of 1.8x we provided at our second quarter earnings call. With net leverage comfortably within our target range we maintain significant balance sheet optionality, providing ample flexibility to pursue our strategic priorities that create long-term shareholder value.

In conjunction with our strong balance sheet, our disciplined capital allocation framework allows us to invest in organic growth initiatives, execute a robust M&A pipeline and consistently return capital to shareholders through share repurchases and dividends.

Let's turn to our 2026 outlook on Slide 12. We are maintaining our outlook of low double-digit revenue growth in 2026, supported by our expectations of mid-single-digit organic growth, a mid-single-digit contribution from acquisitions and 1 to 2 points of favorable translation foreign exchange based on September rates. Our outlook assumes fire service and PPE are drivers of organic growth in the fourth quarter.

In Detection, ongoing dynamics related to the Middle East conflict and an exceptionally strong prior year comparison provide a headwind. If you recall, we had shipped numerous large fixed monitoring orders in the fourth quarter a year ago. We continue to expect full year adjusted gross margin to be in the 47.5% to 48.5% range, which excludes acquisition-related amortization. Our full year below-the-line assumptions remain unchanged.

As we look at the balance of the year, we are positioned to deliver on our full year outlook and finish 2026 with strong fourth quarter performance.

With that, I'd like to pass it back to Steve for closing remarks.

Steven Blanco

Thank you, Julie. I'm on Slide 14. In conclusion, the third quarter was another strong example of our team's disciplined strategic execution. Our continued focus on the priorities that underpin Accelerate is driving growth, strengthening our market positions and positioning MSA to deliver meaningful long-term value to our stakeholders. Our results would not be possible without the dedication of the entire MSA team, and I want to personally thank them for another strong quarter and for their unwavering commitment to serving our singular mission of safety. .

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

Operator

Thank you. We will now begin the question-and-answer session. [Operator Instructions] And our first question comes from Quinn Fredrickson from Baird.

질의응답

Quinn Fredrickson

Steve, could you unpack the improvement in fire service this quarter? How much reflected conversion of last year's delayed grant funded orders versus stronger underlying department purchasing? And does book-to-bill support a typical seasonal uplift in fourth quarter?

Steven Blanco

Yes, sure. Thanks for the question, Quinn. If you look at fire service, we kind of wrapped up the last of the '25 by and large, I would say total for Americas, roughly $3 million. So overall, just under 2 points, maybe 1.7-ish I'm thinking. And for Americas, about 3% of that growth -- if you look at the overall order pace, AFG grants were issued late again this year, late September. The difference is the government didn't shut down immediately thereafter. So we've got activity that we've already seen processing through. The pipeline remains very strong.

And actually, the order pace to your to your last piece of this question was nice was what we hope to see a more normalized with previous years other than last year. So we're going into the fourth quarter with a nice pipeline, backlog that's supporting what we expect to see, and we expect this to be a good quarter.

Quinn Fredrickson

Great. Second, just any early feedback from customers on the G1 City Edition and do you feel like these added features position you better competitively for some of these larger tenders that are upcoming? Steve, you seem to allude to that in your prepared remarks, but if you could just expand on that a little further, that would be helpful. .

Steven Blanco

Certainly. And the answer is resounding, yes, the feedback in the market has been terrific. We've gotten great -- which we expected because this is, by and large, driven by the feedback we received from firefighters. As you know, that's 1 of our key tenets of our R&D process and how we innovate is understanding challenges that the firefighters and all of our customers share -- and this, we believe, hit the mark of things that they've identified as needs they have.

So the feedback has been strong. We think it positions us nicely in a competitive market to be a leader as we expect to be, and we think we'll compete very well going forward. We're optimistic.

Operator

Our next question comes from Tom Ossano from JPMorgan.

Unknown Analyst

Maybe just on fire service. Given fire service organic growth of 9% plus in Americas, how confident are you in the government funding time line through mid-December. And the SCB replacement cycle accelerate ahead of the 2027 to 2029.

Steven Blanco

Thanks for the question, Tomo. I think if I broke this up into 2 parts and you think of AFG funding, it was late to have it released, but the government is open until mid-December. We do expect many departments, and we've seen that and are really trying to process what they have as opportunities for these grants before any risk comes into play in mid-December. That said, they have to come through and finish the order. And we certainly -- though we have a pipeline, we're cognizant of that and expect that to be 1 of the things we'll work with them on.

But typically, you'll see them try to do that. And we've seen that same kind of activity this year that we have seen in most years when the grant comes through. Again, grant late, but I think we're in a strong position to action that and feel really good about what this looks like going forward, assuming we get the orders as we planned. But fourth quarter should be good. Frankly, it's a softer comp because last year wasn't strong because of the challenges we mentioned. But we feel really good about where we're at with the quarter and how we go forward. And if you go past the quarter, the pipeline continues to fill up with more orders that we think start to represent a little bit of an increase in the market dynamic from the first customers in that period of 2014, 2015. So we'll watch that closely, but line of sight so far tells us that, that should continue to play out that way.

Tomohiko Sano

And just 1 follow-up. As you approach your medium-term financial targets in 2028, especially on the revenue side. Should investors expect an opportunity to get an updated view of the targets and the strategy behind them? And then on the margin side, given electronic integration cost and fire service demand volatility, does your target of the 30 to 50 basis points annual margin expansion still hold? Or how's the time line shifted? .

Steven Blanco

I will -- well, the answer to the second 1 is we definitely will continue to commit to at least 30 to 50 basis points. We've said Atronica will be accretive within the first full year of ownership. On the first point, yes, we absolutely plan to and thanks for that question as well. I would say penciling in May, our expectation to do another investor update -- we believe it's time, and we feel really good about some of the things we'd like to share. .

Operator

[Operator Instructions] And our next question comes from Jeff Van Sinderen from B. Riley.

Jeff Van Sinderen

And just I guess a follow-up on the last question. Can you maybe walk us through how you see the margin recovery materializing what needs to happen to get there?

Steven Blanco

I'll let Julie take the first part of this question on maybe parsing out the margin as it is today, and I'll add any commentary there after.

Julie Beck

So Jeff, I think it's important to remember that so far on a year-to-date basis, we've improved our margins by 140 basis points -- when we talked in Q2, we talked about a step down in from Q2 margin because remember, we had some tariff refund that didn't repeat in Q3. And in this quarter, we actually, from an organic basis improved our operating margins another 50 basis points. So we've been really able to manage with strategic pricing with value-added engineering efforts with chain doing a great job managing transportation costs, our MBS systems working. So we were able to improve those margins by 50 basis points in the organic tariff side.

But we did get impacted by 70 basis points of negative margin impact from Altronica. And Altronica will be accretive as we implement those synergies. So no synergies will come into play, particularly going forward into 2027. And so we also had some unfavorable mix in the third quarter as we had higher fire protection and higher industrial PPE and a little bit lower of our high-technology detection margins. And so some favorable mix and continued efforts and value-added engineering and managing our costs and strategic pricing. We definitely, as Steve said, are confident in our 30 to 50 basis point margin -- operating margin increases as well as our 30% to 40% incremental margin targets.

Steven Blanco

Yes. I think we're in a good place relative to expected continued contribution going forward on the margins. Obviously, we knew Atronica would be when we bought it, we knew it would be a challenge initially, but we've got a really good plan in place. I was just over there in September with some of the other leaders, by the way. And that team is outstanding and are well aligned on what needs to happen going forward and on expectations. So I think we're in a good place. we're right on time relative to that acquisition integration.

Operator

Our next question comes from Brian Brophy from Stifel. .

Unknown Analyst

This is Quinton on for Brian. Just a quick question on the M&A pipeline. Can you kind of give an update there and what priorities you have within that? Any color there would be appreciated.

Steven Blanco

So we continue to have a nice pipeline of activity. I would say that there's a few we've looked at and we'll continue to look at. They're probably priced a little higher than we're interested in today. I think we'll see how that changes over time. As Julie said in her prepared remarks, we've got ample liquidity to continue to take actions. -- and we are looking at things across the portfolio. I would say there's more in the portfolio as we've referenced before in detection. But again, we're looking across the portfolio to make sure it adds value for the long term of the business. and can be accretive to our growth profile. So I think we're in a good place there. We're still active.

Unknown Analyst

Perfect. And 1 more, if I can add 1 more. What are kind of your latest thoughts on just the lineup of connected products and kind of what you're expecting there? That would be very helpful.

Steven Blanco

I think our IO 6 has really hit the mark. We're very pleased with the customer acceptance and energy around that. We referenced and we had a nice release related to our largest order ever that we've had on MSAs. And I would expect that's going to continue. What we've seen is this IO6 coupled with the IO4 has really energized that piece of the market. We're up to about 15% of total portable sales. So it's growing. I think it was 10% a year ago and 14% sequentially. So we expect that momentum to continue, and the pipeline continues to be really, really robust there.

So the prospects inside portables are very strong and inside of that connected work to your reference.

Operator

The next question comes from Steve Volkmann from Devis.

Unknown Analyst

I'm sorry, I joined a little bit late, so if this has been covered -- Is this being covered, just let me know. But I'm curious on the fire service side, have you seen any shifts in sort of win rates or pricing or anything with the Scott Safety spinout or the Drager. I think they have some new distribution agreements. Just anything good or bad happening there that we should know about?

Steven Blanco

It's a competitive market, Steve. We expect it to remain competitive. We haven't seen anything that lessens that competitive environment to date. But 1 of the things that we had planned for, and obviously, we just announced with the City Edition. And that timing was obviously very strategic on our part as we get rolling into here, and we think that you're going to start seeing the uptick in the fire service market. But I think the environment is pretty consistent.

I wouldn't say anything's changed dynamically or significantly that worries us or, frankly, concerns where we're at in this market. And with now, I think, the optionality that we've afforded the market with the addition of the City Dish, and I think we're in a really good place to compete.

Unknown Analyst

Okay. Good. Good to hear. And then just on the Atronica dilution, -- sorry if I missed this, but is there a time frame sort of when you think you recapture that?

Steven Blanco

First full year. You'll start seeing that will be accretive.

Operator

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

Tyler Herzing

Thank you. Good morning -- we appreciate you joining the call this morning and for your continued interest in MSA Safety. If you missed the portion of today's call, an audio replay will be made available later today on our Investor Relations website and will be available for the next 90 days. We look forward to updating you on our continued progress again next quarter.

Operator

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.