2Q Results: The Setup Improves as PPE Demonstrates Strength; PT to $220

研报英文原文证据摘录

2Q Results: The Setup Improves as PPE Demonstrates Strength; PT to $220

7 than feared.

Adj. EPS ($)

• Raising Estimates: Execution and Order Momentum Support 2H: We are 2025A 2026E 2027E

raising our revenue and adjusted EBITDA estimates, reflecting disciplined Q1 1.68 1.99A

Q2 1.93 2.40A

execution, rising order volumes, and the potential normalization of fire service Q3 1.94 2.20

in 4Q26. We now forecast organic revenue growth of 4.9% (from 4.4%) and Q4 2.38 2.81

total revenue growth of 11.1% (from 9.7%) in FY26, underpinned by broad- FY 7.93 9.39 10.01

based order strength. Our adjusted EBITDA estimate increases to $554M Style Exposure

(from $533M), implying margin expansion of ~110bps YoY (from ~40bps).

Notably, our revisions are driven more by margin and mix confidence than by

a step-change in top-line assumptions, given continued uncertainty in pockets

of fixed detection. We are establishing a Dec-27 price target of $220 (up from

$210 for Dec-26), based on 14.0x our FY27 adjusted EBITDA.

• Helmets and Ballistics Drive Broad Strength: Industrial PPE was the

standout performance, with organic sales up ~16%, reflecting healthy demand

across core industrial markets. Americas strength was driven by the Type 2

V-Gard H2 safety helmet and fall protection, supported by broader

infrastructure investment. International growth, up ~27% organically, was

anchored by protective ballistic helmets benefiting from rising European

defense spending, with good backlog visibility into 3Q26 and 4Q26.

• Connected Momentum: MSA+ Adoption Accelerates Detection Growth:

Detection faced headwinds from the ongoing Middle East conflict, which cost

the company north of half a point of revenue in 1H26. MSA+ connected

solutions continue to gain traction as more than half of portable gas detection