Stock Plans

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

The 2023 Management Equity Incentive Plan and its predecessor, the 2016 Management Equity Incentive Plan, provide for various forms of stock-based compensation for eligible employees through, in the case of the 2023 Management Equity Incentive Plan, May 2033, including stock options, restricted stock awards, restricted stock units and performance stock units. The 2024 Non-Employee Directors’ Equity Incentive Plan and its predecessor, the 2017 Non-Employee Directors’ Equity Incentive Plan, provide for grants of stock options and restricted stock to non-employee directors through, in the case of the 2024 Non-Employee Directors’ Equity Incentive Plan, May 2034. The 2014 MSA Employee Stock Purchase Plan (“ESPP”) permits eligible employees to purchase the Company's shares of common stock at a 15% discount from the fair market value, semi-annually, from the stock market. The ESPP is considered a compensatory plan. The discount is recorded as a component of selling, general and administrative expense in the Company's unaudited Condensed Consolidated Statements of Income.

Stock compensation expense, included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income, is as follows:


	Three Months Ended March 31,
(In thousands)		2026		2025
Stock compensation expense		$	3,812	$	2,629
Income tax benefit		911		649
Stock compensation expense, net of tax		$	2,901	$	1,980

We have not capitalized any stock-based compensation expense.

A summary of stock option activity for the three months ended March 31, 2026, is as follows:


	Shares	Weighted Average Exercise Price
Outstanding at January 1, 2026	2,217	$	48.30

Exercised	(500)	44.50


Outstanding and exercisable at March 31, 2026	1,717	$	49.41

Restricted stock awards and restricted stock units are valued at the market value of the stock on the grant date. A summary of restricted stock activity for the three months ended March 31, 2026, is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested at January 1, 2026	168,387	$	159.38
Granted	51,321	193.05
Vested	(39,371)	134.35
Forfeited	(6,812)	178.61
Unvested at March 31, 2026	173,525	$	174.27

The final number of shares to be issued for performance stock units granted in the first quarter of 2026 may range from 0% to 200% of the target award based on achieving the specified performance targets over the performance period, including a relative TSR metric. Performance stock units that include a market condition are valued at an estimated fair value using a Monte Carlo model. The following weighted average assumptions were used in estimating the fair value of the performance stock units granted in the first quarter of 2026:


Fair value per unit			$223.21
Risk-free interest rate			3.52%
Expected dividend yield			1.27%
Expected volatility			23.2%
MSA stock beta			0.725

The risk-free interest rate is based on the U.S. Treasury Constant Maturity rates as of the grant date converted into an implied spot rate yield curve. Expected dividend yield is based on the most recent annualized dividend divided by the one-year average closing share price. Expected volatility is based on the three-year historical volatility preceding the grant date using daily stock prices. Expected life is based on historical stock option exercise data.

A summary of performance stock unit activity for the three months ended March 31, 2026, is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested at January 1, 2026	151,552	$	153.00
Granted	51,565	222.96
Performance adjustments(a)	49,804	131.46
Vested	(111,975)	131.46
Forfeited	(7,332)	185.19
Unvested at March 31, 2026	133,614	$	188.25
(a)Performance adjustments relate primarily to the final number of shares issued for the 2023 performance unit awards which vested in the first quarter of 2026 at 180% of the target award based on both cumulative performance against EBITDA margin and revenue growth targets and MSA's total shareholder return during the three-year performance period.