MSA Safety Announces Second Quarter 2025 Results
Achieved quarterly net sales of $474 million, a 3% GAAP increase and flat organic(a) year-over-year
Generated GAAP operating income of $86 million, or 18.1% of sales, and adjusted operating income of $101 million, or 21.4% of sales
Recorded GAAP net income of $63 million, or $1.59 per diluted share, and adjusted earnings of $76 million, or $1.93 per diluted share
Acquired M&C TechGroup, a leading manufacturer of gas analysis and process safety technologies, in a transaction valued at $188 million, net of cash acquired
Repurchased $30 million of common stock, invested $29 million for capital expenditures, including a strategic footprint investment, and paid $21 million of dividends
PITTSBURGH, Aug. 4, 2025 /PRNewswire/ -- Global safety equipment and solutions provider MSA Safety Incorporated (NYSE: MSA) today reported financial results for the second quarter of 2025.
"Our second quarter financial performance demonstrates our team's commitment to our Accelerate strategy and creating long-term value for our stakeholders," said Steve Blanco, MSA Safety President and CEO. "Although we had a difficult comparison within our broader portfolio, leveraging the MSA Business System enabled strong backlog conversion of key customer orders, and we are energized by the momentum in our growth accelerator product categories of detection and fall protection. Lastly, we deployed capital for the acquisition of M&C TechGroup to expand our addressable market in detection, further diversify our end markets, and create a synergistic platform for growth in the gas analysis and process safety markets."
(a) Definition of organic sales change provided on the bottom of page nine.
Financial HighlightsThree Months Ended June 30,Six Months Ended June 30,
(In millions, except per share data and percentages)
20252024% Change (a)20252024% Change (a)
Net Sales
$ 474.1$ 462.53 %$ 895.5$ 875.82 %
GAAPOperating income
85.999.9(14) %163.6180.1(9) %
% of Net sales
18.1 %21.6 %(350) bps18.3 %20.6 %(230) bps
Net income
62.872.2(13) %122.4130.4(6) %
Diluted EPS
1.591.83(13) %3.103.30(6) %
Non-GAAPAdjusted EBITDA
$ 116.5$ 121.9(4) %$ 218.0$ 223.2(2) %
% of Net sales
24.6 %26.4 %(180) bps24.3 %25.5 %(120) bps
Adjusted operating income
101.4108.2(6) %188.9196.2(4) %
% of Net sales
21.4 %23.4 %(200) bps21.1 %22.4 %(130) bps
Adjusted earnings
75.979.7(5) %142.4143.2(1) %
Adjusted diluted EPS
1.932.01(4) %3.613.62— %
Free cash flow
37.939.0(3) %88.978.613 %
Free cash flow conversion
60 %54 %73 %60 %
Americas SegmentNet sales
$ 320.1$ 314.72 %$ 613.3$ 610.2— %
GAAP operating income
91.396.2(5) %167.8180.3(7) %
% of Net sales
28.5 %30.6 %(210) bps27.4 %29.6 %(220) bps
Adjusted operating income
93.398.5(5) %172.0184.7(7) %
% of Net sales
29.1 %31.3 %(220) bps28.0 %30.3 %(230) bps
International SegmentNet sales
$ 154.0$ 147.84 %$ 282.2$ 265.56 %
GAAP operating income
12.222.8(46) %29.533.9(13) %
% of Net sales
8.0 %15.4 %(740) bps10.5 %12.8 %(230) bps
Adjusted operating income
20.224.3(17) %38.937.83 %
% of Net sales
13.1 %16.4 %(330) bps13.8 %14.2 %(40) bps(a) Percentage change may not calculate exactly due to rounding.
"Our balance sheet remains strong, enabling us to invest in growth and return cash to shareholders through our disciplined capital allocation strategy," stated Elyse Brody, Interim CFO of MSA Safety. "Highlights this quarter include the acquisition of M&C TechGroup, our 55th consecutive annual dividend increase, share repurchases, and a strategic footprint investment in Cranberry Township, Pa., to expand manufacturing and engineering capabilities at our detection Center of Excellence. We reaffirm our low-single-digit organic sales growth outlook for 2025 while actively preparing for a wide range of macro scenarios, including tariffs, industrial demand, and the timing of the National Fire Protection Association (NFPA) approval for our next-generation self-contained breathing apparatus (SCBA)," Brody added.
2025 Net Sales Outlook
The company maintained its low-single-digit full-year organic sales growth outlook for 2025, while acknowledging ongoing risk due to macroeconomic factors and the timing of the NFPA standard approval process.
Conference Call
MSA Safety will host a conference call on Tuesday, August 5, 2025, at 10:00 a.m. Eastern time to discuss its second quarter 2025 results and outlook. The call and an accompanying slide presentation will be webcast at http://investors.msasafety.com/ under the "News and Events" tab, subheading "Events & Presentations." Investors and interested parties can also dial into the call at 1-844-854-4415 (toll-free) or 1-412-902-6599 (international). When prompted, please instruct the operator to be joined into the MSA Safety Incorporated conference call. A replay of the conference call will be available at http://investors.msasafety.com/ shortly after the conclusion of the presentation and will be available for the next 90 days.
MSA Safety Incorporated
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share amounts)
Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024
Net sales
$ 474,116$ 462,463$ 895,456$ 875,765
Cost of products sold
253,406239,434481,351457,205
Gross profit
220,710223,029414,105418,560
Selling, general and administrative
112,078105,075206,042199,226
Research and development
16,99617,07032,66532,988
Restructuring charges
4881,5432,4124,560
Currency exchange losses (gains), net
5,286(603)9,3631,730
Operating income
85,86299,944163,623180,056
Interest expense
8,1169,66414,95120,403
Other income, net
(5,000)(4,148)(12,022)(10,382)
Total other expense, net
3,1165,5162,92910,021
Income before income taxes
82,74694,428160,694170,035
Provision for income taxes
19,97322,19438,31639,662
Net income
$ 62,773$ 72,234$ 122,378$ 130,373
Earnings per share attributable to common shareholders:Basic
$ 1.60$ 1.83$ 3.11$ 3.31
Diluted
$ 1.59$ 1.83$ 3.10$ 3.30
Basic shares outstanding
39,25839,38939,29639,375
Diluted shares outstanding
39,35939,54139,43039,549
MSA Safety Incorporated
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
June 30, 2025December 31, 2024
AssetsCash and cash equivalents
$ 146,988$ 164,560
Trade receivables, net
333,754279,213
Inventories
343,883296,796
Other current assets
62,83662,461
Total current assets
887,461803,030
Property, plant and equipment, net
279,419211,865
Prepaid pension cost
234,355224,638
Goodwill
733,245620,895
Intangible assets, net
310,934246,437
Other noncurrent assets
104,79798,919
Total assets
$ 2,550,211$ 2,205,784
Liabilities and shareholders' equityNotes payable and current portion of long-term debt, net
$ 8,383$ 26,391
Accounts payable
126,421108,163
Other current liabilities
150,660153,539
Total current liabilities
285,464288,093
Long-term debt, net
670,965481,622
Pensions and other employee benefits
152,344134,251
Deferred tax liabilities
132,696107,691
Other noncurrent liabilities
56,10050,808
Total shareholders' equity
1,252,6421,143,319
Total liabilities and shareholders' equity
$ 2,550,211$ 2,205,784
MSA Safety Incorporated
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024
Net income
$ 62,773$ 72,234$ 122,378$ 130,373
Depreciation and amortization
18,09916,04734,35031,605
Change in working capital and other operating
(13,654)(34,979)(27,677)(57,790)
Cash flow from operating activities
67,21853,302129,051104,188
Capital expenditures
(29,334)(14,341)(40,118)(25,560)
Acquisitions, net of cash acquired
(187,774)—(187,774)—
Property disposals and other investing
1741974
Cash flow used in investing activities
(217,107)(14,267)(227,873)(25,486)
Change in debt
172,686(8,250)165,220(13,260)
Cash dividends paid
(20,848)(20,099)(40,881)(38,589)
Company stock purchases under repurchase program
(29,998)(10,000)(39,994)(10,000)
Other financing
(2,249)(284)(10,366)(5,869)
Cash flow from (used in) financing activities
119,591(38,633)73,979(67,718)
Effect of exchange rate changes on cash, cash
equivalents and restricted cash
6,949(1,881)7,692(10,557)
(Decrease)/Increase in cash, cash equivalents and restricted cash
$ (23,349)$ (1,479)$ (17,151)$ 427
MSA Safety Incorporated
Sales by Product Group (Unaudited)
(In thousands, except percentages)Three Months Ended June 30, 2025ConsolidatedAmericasInternational
DollarsPercentDollarsPercentDollarsPercent
Detection(a)$ 193,83541 %$ 127,17440 %$ 66,66143 %
Fire Service(b)163,30634 %110,81535 %52,49134 %
Industrial PPE and Other(c)116,97525 %82,15025 %34,82523 %
Total$ 474,116100 %$ 320,139100 %$ 153,977100 %Three Months Ended June 30, 2024ConsolidatedAmericasInternational
DollarsPercentDollarsPercentDollarsPercent
Detection(a)$ 170,84837 %$ 111,40535 %$ 59,44340 %
Fire Service(b)172,26937 %118,48738 %53,78237 %
Industrial PPE and Other(c)119,34626 %84,81927 %34,52723 %
Total$ 462,463100 %$ 314,711100 %$ 147,752100 %Six Months Ended June 30, 2025ConsolidatedAmericasInternational
DollarsPercentDollarsPercentDollarsPercent
Detection(a)$ 354,90640 %$ 237,06539 %$ 117,84142 %
Fire Service(b)313,92235 %216,72235 %97,20034 %
Industrial PPE and Other(c)226,62825 %159,51226 %67,11624 %
Total$ 895,456100 %$ 613,299100 %$ 282,157100 %Six Months Ended June 30, 2024ConsolidatedAmericasInternational
DollarsPercentDollarsPercentDollarsPercent
Detection(a)310,06435 %207,70034 %102,36438 %
Fire Service(b)335,96239 %240,73839 %95,22436 %
Industrial PPE and Other(c)229,73926 %161,81127 %67,92826 %
Total$ 875,765100 %$ 610,249100 %$ 265,516100 %(a) Detection includes Fixed Gas and Flame Detection and Portable Gas detection. Detection includes sales from M&C TechGroup Germany GmbH and its affiliated companies ("M&C"), acquired by the Company, from May 6th, 2025, onward (Americas and International).
(b) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.
(c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core.
MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Organic sales change (Unaudited)ConsolidatedThree Months Ended June 30, 2025Detection(a)
FireService(b)
Industrial PPEand Other(c)Net Sales
GAAP reported sales change
13 %
(5) %
(2) %3 %
Currency translation effects
— %
(1) %
1 %(1) %
Less: Acquisitions
(7) %
— %
— %(2) %
Organic sales change
6 %
(6) %
(1) %— %Six Months Ended June 30, 2025Detection(a)
FireService(b)
Industrial PPEand Other(c)Net Sales
GAAP reported sales change
14 %
(7) %
(1) %2 %
Plus: Currency translation effects
1 %
— %
2 %1 %
Less: Acquisitions
(4) %
— %
— %(1) %
Organic sales change
11 %
(7) %
1 %2 %
Americas Segment
Three Months Ended June 30, 2025Detection(a)
FireService(b)
Industrial PPEand Other(c)Net Sales
GAAP reported sales change
14 %
(6) %
(3) %2 %
Plus: Currency translation effects
1 %
— %
2 %1 %
Less: Acquisitions
(3) %
— %
— %(1) %
Organic sales change
12 %
(6) %
(1) %2 %Six Months Ended June 30, 2025Detection(a)
FireService(b)
Industrial PPEand Other(c)Net Sales
GAAP reported sales change
14 %
(10) %
(1) %1 %
Plus: Currency translation effects
1 %
— %
3 %1 %
Less: Acquisitions
(1) %
— %
— %(1) %
Organic sales change
14 %
(10) %
2 %1 %
International Segment
Three Months Ended June 30, 2025Detection(a)
FireService(b)
Industrial PPEand Other(c)Net Sales
GAAP reported sales change
12 %
(2) %
1 %4 %
Plus: Currency translation effects
(4) %
(4) %
(3) %(3) %
Less: Acquisitions
(11) %
— %
— %(5) %
Organic sales change
(3) %
(6) %
(2) %(4) %Six Months Ended June 30, 2025Detection(a)
FireService(b)
Industrial PPEand Other(c)Net Sales
GAAP reported sales change
15 %
2 %
(1) %6 %
Plus: Currency translation effects
(1) %
(1) %
(1) %(1) %
Less: Acquisitions
(7) %
— %
— %(2) %
Organic sales change
7 %
1 %
(2) %3 %(a) Detection includes Fixed Gas and Flame Detection and Portable Gas Detection. Detection includes sales from M&C, acquired by the Company, from May 6th, 2025, onward (Americas and International).
(b) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.
(c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core.
Management believes that organic sales change is a useful metric for investors, as foreign currency translation, acquisitions and divestitures can have a material impact on sales change trends. Organic sales change highlights ongoing business performance excluding the impact of fluctuating foreign currencies, acquisitions and divestitures. There can be no assurances that MSA's definition of organic sales change is consistent with that of other companies. As such, management believes that it is appropriate to consider sales change determined on a GAAP basis in addition to this non-GAAP financial measure.
MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Adjusted operating income (Unaudited)
Adjusted EBITDA (Unaudited)
(In thousands)
Three months endedJune 30,Six months endedJune 30,2025202420252024
Adjusted EBITDA
$ 116,513$ 121,931$ 217,979$ 223,185
Less: Depreciation and amortization
15,07913,74129,04326,985
Adjusted operating income
101,434108,190188,936196,200
Less: Restructuring charges
4881,5432,4124,560
Currency exchange losses (gains), net
5,286(603)9,3631,730
Acquisition-related amortization
3,1532,3065,4394,620
Net cost for product related legal matter
—5,000—5,000
Transaction costs (a)
6,645—8,099234
GAAP operating income
85,86299,944163,623180,056
Less: Interest expense
8,1169,66414,95120,403
Other income, net
(5,000)(4,148)(12,022)(10,382)
Income before income taxes
82,74694,428160,694170,035
Provision for income taxes
19,97322,19438,31639,662
Net income
$ 62,773$ 72,234$ 122,378$ 130,373(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred in connection with acquisitions and divestitures. These costs are included in selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income.
Adjusted operating income, adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are non-GAAP financial measures and operating ratios derived from non-GAAP measures. Adjusted operating income is defined as operating income excluding restructuring charges, currency exchange gains / losses, acquisition-related amortization, net cost for product related legal matter and transaction costs. Adjusted operating margin is defined as adjusted operating income divided by net sales to external customers. Adjusted EBITDA is defined as adjusted operating income plus depreciation and amortization, and adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales to external customers. These metrics are consistent with how management evaluates segment results and makes strategic decisions about the business. Additionally, these non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are not recognized terms under GAAP, and therefore do not purport to be alternatives to operating income or operating margin as a measure of operating performance. The company's definition of adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. As such, management believes that it is appropriate to consider operating income and net income determined on a GAAP basis in addition to these non-GAAP measures.
MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Adjusted earnings (Unaudited)
Adjusted diluted earnings per share (Unaudited)
(In thousands, except per share amounts and percentages)
Three Months EndedJune 30,Six Months EndedJune 30,20252024%
Change20252024%
Change
Net income
$ 62,773$ 72,234(13) %$ 122,378$ 130,373(6) %
Currency exchange losses (gains), net
5,286(603)9,3631,730
Restructuring charges
4881,5432,4124,560
Transaction costs (a)
6,645—8,099234
Acquisition-related amortization
3,1532,3065,4394,620
Asset related losses
884701892752
Pension settlement
7211,3087211,308
Net cost for product related legal matter
—5,000—5,000
Income tax expense on adjustments
(4,021)(2,827)(6,937)(5,417)
Adjusted earnings
$ 75,929$ 79,662(5) %$ 142,367$ 143,160(1) %
Adjusted diluted earnings per share
$ 1.93$ 2.01(4) %$ 3.61$ 3.620 %
Diluted shares outstanding
39,35939,54139,43039,549(a)Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred in connection with acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income.
Management believes that adjusted earnings and adjusted diluted earnings per share are useful measures for investors, as management uses these measures to internally assess the company's performance and ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that MSA's definition of adjusted earnings is consistent with that of other companies. As such, management believes that it is appropriate to consider both net income determined on a GAAP basis as well as adjusted earnings.
MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Debt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited)
(In thousands)Twelve Months EndedJune 30, 2025
Operating income$ 372,744
Depreciation and amortization 57,217
Restructuring charges4,249
Currency exchange losses, net11,271
Acquisition-related amortization9,994
Transaction costs (a)8,751
Adjusted EBITDA$ 464,226Total end-of-period debt679,348Debt to adjusted EBITDA1.5Total end-of-period debt$ 679,348
Total end-of-period cash and cash equivalents146,988
Net debt$ 532,360Net debt to adjusted EBITDA1.1(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred in connection with acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income.
Management believes that Debt to adjusted EBITDA and Net debt to adjusted EBITDA are useful measures for investors, as management uses these measures to internally assess the company's liquidity and balance sheet strength. There can be no assurances that that MSA's definition of Debt to adjusted EBITDA and Net debt to adjusted EBITDA is consistent with that of other companies.
About MSA Safety:
MSA Safety Incorporated (NYSE: MSA) is the global leader in advanced safety products, technologies 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. With 2024 revenues of $1.8 billion, MSA Safety is headquartered in Cranberry Township, Pennsylvania and employs a team of over 5,000 associates across its more than 40 international locations. For more information, please visit www.MSASafety.com.
Cautionary Statement Regarding Forward-Looking Statements:
Except for historical information, certain matters discussed in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance and involve various assumptions, known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or other comparable words. Actual results, performance or outcomes may differ materially from those expressed or implied by these forward-looking statements and may not align with historical performance and events due to a number of factors, including those discussed in the sections of our annual report on Form 10-K entitled "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors," and those discussed in our Form 10-Q quarterly reports filed after such annual report. MSA's SEC filings are readily obtainable at no charge at www.sec.gov, as well as on its own investor relations website at http://investors.MSAsafety.com. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and caution should be exercised against placing undue reliance upon such statements, which are based only on information currently available to us and speak only as of the date hereof. We are under no duty to update publicly any of the forward-looking statements after the date of this earnings press release, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures:This press release includes certain non-GAAP financial measures. These financial measures include organic sales change, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted earnings, adjusted earnings per diluted share, debt to adjusted EBITDA, and net debt to adjusted EBITDA. These non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Management also uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use, and computational methods with respect thereto, may differ from the non-GAAP financial measures and key performance indicators, and computational methods, that our peers use to assess their performance and trends.
The presentation of these non-GAAP financial measures does not comply with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. When non-GAAP financial measures are disclosed, the Securities and Exchange Commission's Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. For an explanation of these measures, with a reconciliation to the most directly comparable GAAP financial measure, see the Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures in the financial tables section above.
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Apple Inc. (NASDAQ:AAPL) is one of the . On August 7, Wells Fargo analyst Aaron Rakers reiterated an Overweight rating on the stock with a $245.00 price target. The rating affirmation follows Apple's recent announcement that it is increasing its investment in the United States by $100B to $600B over the next four years. Apple announced that it will be making major investments across its multiple top suppliers, including a $2.5B deal with Corning and a multi-year deal with Coherent. 'Apple previously announced in February that it would spend $500B over the next 4 years. The announcement reiterated the company's plan for a major AI server facility in Houston. In addition to Corning and Coherent, Apple's press release highlights partnerships with Broadcom, GlobalWafers, TSMC, Texas Instruments, Applied Materials, GlobalFoundries, and Amkor. Apple also emphasized its focus on building out its US data center footprint, building on an already $5B investment in Maiden, North Carolina; also noting expanding data center capacity in Iowa, Nevada, and Oregon'. The firm believes that the said announcement aims to strike a deal to minimize tariff impacts. 'Apple's announcement of an additional $100B investment in the US will (should) be viewed as more about posturing/a deal to minimize tariff impacts, i.e., companies committed to building in the US would be exempt from tariffs,' -Analysts led by Aaron Rakers. According to Rakers and his team, President Trump discussed plans of imposing 100% tariffs on imports of semiconductors. However, he added that 'the good news for companies like Apple is if you're building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge.' The analysts further noted that Apple's announcement has made no reference that they are bringing final iPhone assembly into the U.S. Apple is a technology company known for its consumer electronics, software, and services. While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Surprising AI chip stock is up 90% in 30 days (and still climbing)
Surprising AI chip stock is up 90% in 30 days (and still climbing) originally appeared on TheStreet. In a space typically dominated by household names, AI chip player Astera Labs has effectively broken through the noise. After another earnings stunner, Astera stock just turned heads on Wall Street again, surprising even the bulls. Moreover, with Astera riding the wave of next-gen data center buildouts, its latest quarterly showing was a clear signal of its rapidly growing influence in AI infrastructure. 💵💰💰💵 Mr. Market's reaction was instant and powerful, pushing the stock into one of the year's most explosive tech stock rallies. Given the ferociousness of the move and Astera's growing strategic importance, it seems there's plenty of runway left in this under-the-radar AI stock. AI infrastructure buildout hits overdrive The AI infrastructure space is growing at a breakneck pace as stakeholders rush to lock in the power, connectivity, and capacity needed to scale generative AI workloads. Big Tech is leading the charge. In 2025 alone, Amazon, Google, Meta, and Microsoft are shelling out a whopping $350 billion on data centers, high-speed networks, and specialized spending spree is effectively reshaping tech ecosystems and regional economies. Private capital is also chasing the same opportunity. For instance, Brookfield is zeroing in on key investments like liquid cooling, GPUs, and chip fabrication. Apollo is making an even bigger splash, scooping Stream Data Centers to position for years of AI-driven demand. However, the real choke point now is Electricity. Silver Lake committed a massive $400 million just to secure gigawatts of power before buying land, underscoring the critical importance of grid access. Additionally, governments are stepping up, too. The U.S.'s 'Stargate Project,' with roughly $500 billion in planned investment, is matched by similar efforts from the EU in creating localized infrastructure. However, this scale-up isn't without stress. Data center power needs could double global electricity demand by 2030, weighing down utilities and new facility activations. Still, the upside is massive, with the boom adding 0.7 percentage points to U.S. GDP growth. Moreover, McKinsey estimates global data center investment could reach an eye-popping $6.7 trillion by 2030, suggesting that today's frenzy may just be the warm-up. Astera Labs emerges as AI's hidden backbone Astera Labs has done a tremendous job standing out in the crowded semiconductor niche. It's efficiently carved out a critical niche in high-speed, intelligent connectivity, the invisible plumbing that keeps AI and cloud infrastructure running smoothly. Also, it boasts a powerful hardware and software stack that's built for like PCIe 6.0 smart retimers, gearboxes, and the Scorpio smart fabric switches are all designed to move vast amounts of data between CPUs, GPUs, memory, and storage with minimal latency. On the software end, its COSMOS platform aids in monitoring and optimizing complex systems at scale. As generative AI workloads explode, data centers need ultra-efficient and reliable interconnects to sidestep performance hiccups. At the same time, Astera's PCIe 6.0 and CXL solutions meet this demand head-on, showing off powerful signal integrity for unbundled, rack-scale architectures. On top of that, Astera's powerful partnerships add to its advantage. Its gear is layered into NVIDIA's Blackwell-based MGX AI platforms, while working seamlessly with AMD's tech and other memory and storage providers. Speed matters, too. With its robust Cloud-Scale Interop Lab, Astera constantly tests for cross-vendor compatibility, minimizing deployment risk and speeding up hyperscaler rollout. Hence, with its competitive advantages, Astera is rapidly becoming the connective tissue of next-gen AI systems, powering the shape-shifting AI infrastructure boom. Astera Labs smashes Q2 expectations Astera Labs once again stunned Wall Street with another smashing quarterly performance, handily beating estimates across both lines. Shares rocketed over 28.7% on Aug. 6 following the earnings release, as the market reacted sharply to the beat-and-raise quarter. Investors didn't hesitate to reward the the past month, the stock's rally has grown from strength to strength, with it now up close to 90%, and 77% in the past six months. Its Q2 2025 report included non-GAAP EPS of $0.44, comfortably ahead of the $0.32–$0.33 expected range. Similarly, revenues hit $191.9 million, topping the $172 million forecast with year-over-year growth at 150%. The upbeat trend looks set to continue. For Q3, Astera expects sales to fall between $203 million and $210 million, well above consensus estimates, underscoring management's confidence in the long-term growth runway of its AI-focused connectivity solutions. Wall Street resets Astera Labs stock price targets Evercore ISI lifted its Astera Labs stock price target from $104 to $215, on the back of the explosive demand for the Scorpio P Series fabric switches and the upcoming X Series. More News: Veteran analyst spots unexpected star in Apple's earnings report Bank of America drops shocking price target on hot weight-loss stock post-earnings JPMorgan drops 3-word verdict on Amazon stock post-earnings JPMorgan bumped its target to $180, highlighting Astera's growing product pipeline and superb position in PCIe retimers. On top of that, Jefferies' projects' earnings could exceed $3 per share by 2026, a figure that's likely to push the stock to new heights. Surprising AI chip stock is up 90% in 30 days (and still climbing) first appeared on TheStreet on Aug 9, 2025 This story was originally reported by TheStreet on Aug 9, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
