Group 1: Earnings Performance - Esab reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.18 per share, and showing an increase from $1.20 per share a year ago, representing an earnings surprise of 5.93% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Esab's revenues for the quarter ended March 2025 were $646.9 million, surpassing the Zacks Consensus Estimate by 2.59%, although this is a decrease from year-ago revenues of $689.74 million [2] Group 2: Stock Performance and Outlook - Esab shares have increased by approximately 0.2% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $654.18 million, and for the current fiscal year, it is $5.13 on revenues of $2.56 billion [7] Group 3: Industry Context - The Metal Products - Procurement and Fabrication industry, to which Esab belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Esab is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

ESAB (ESAB) Q1 2025 Earnings Call May 01, 2025 08:00 AM ET Speaker0 you. I'd now like to turn the call over to Mark Barbolado, Vice President of Investor Relations. You may begin. Speaker1 Thanks, operator. Welcome to ESOP's first quarter twenty twenty five earnings call. This morning, I'm joined by our President and CEO, Shyam Kambianda and CFO, Kevin Johnson. Please keep in mind that some of the statements we are making are forward looking and are subject to risks, including those set forth in our SEC fil ...

Financial Performance - ESAB reported first quarter sales of $678 million, a decrease of 2% year-over-year, with core organic growth flat[3]. - Net income from continuing operations attributable to ESAB was $70 million, or $1.14 diluted earnings per share, compared to $62.9 million and $1.00 in the prior year[3][22]. - Core adjusted EBITDA increased to $128 million, a 4% rise, with a margin expansion of 100 basis points to 19.8%[3]. - Core adjusted net income from continuing operations was $76.9 million, compared to $73.6 million in the prior year[24]. - Adjusted net income margin from continuing operations improved to 11.9% from 11.3% year-over-year[24]. - For the three months ended April 4, 2025, net income from continuing operations was $72.6 million, compared to $62.9 million for the same period in 2024, representing a year-over-year increase of 2.7%[27][30]. - Adjusted EBITDA for the three months ended April 4, 2025, was $133.9 million, with an adjusted EBITDA margin of 19.7%, compared to $129.1 million and 18.7% margin for the same period in 2024[27][30]. - Total sales for the three months ended April 4, 2025, were $678.1 million, a decline of 1.7% from $689.7 million in the same period in 2024[33]. - Core adjusted EBITDA for the three months ended April 4, 2025, was $127.9 million, compared to $123.2 million for the same period in 2024, reflecting a year-over-year increase of 3.8%[27][30]. - Net income for the three months ended April 4, 2025, was $69,832, an increase from $61,594 for the same period in 2024, representing a growth of approximately 3.99%[42]. Outlook and Guidance - The company raised its full year 2025 outlook for total core sales growth to a range of (1.0)% to 1.5%[5]. - The company anticipates M&A contributions to sales growth of 2.0% to 2.5% for the full year[5]. - ESAB's core adjusted EPS guidance remains at $5.10 to $5.25[5]. - The company expects 2025 core net sales growth range to be between (1.0)% and (1.5)%, with organic growth projected at 0.0%-2.0%[37]. - The company anticipates core adjusted EPS for 2025 to be in the range of $5.10 to $5.25, compared to $5.06 for 2024[37]. Acquisitions and Strategic Initiatives - ESAB completed the acquisition of Bavaria Schweisstechnik GmbH, enhancing its consumables portfolio[7]. - The company emphasized its strategy of leveraging global scale while maintaining local agility to drive growth[4]. Cash Flow and Assets - Adjusted free cash flow for the three months ended April 4, 2025, was $30.4 million, down from $40.8 million for the same period in 2024[34]. - Total assets as of April 4, 2025, were $4,217.5 million, an increase from $4,033.9 million as of December 31, 2024[39]. - The company reported a current portion of debt of $17.8 million as of April 4, 2025, compared to $15.0 million as of December 31, 2024[39]. - Goodwill increased to $1,684.8 million as of April 4, 2025, from $1,652.0 million as of December 31, 2024[39]. Dividends and Stockholder Returns - The company paid dividends totaling $4,861, compared to $3,635 in the prior year, marking an increase of approximately 33.8%[42]. Other Financial Metrics - Net cash provided by operating activities decreased to $35,410 from $44,467, a decline of about 20.4% year-over-year[42]. - Cash and cash equivalents at the end of the period increased to $291,348, up from $76,495, showing a significant rise of approximately 280.5%[42]. - Net cash used in investing activities was $2,689, a decrease from $26,614, indicating a reduction of about 89.9%[42]. - The company reported a gain on the sale of property, plant, and equipment amounting to $5,665, compared to a loss of $44 in the previous year[42]. - Total depreciation, amortization, and other impairment charges were $17,491, up from $16,387, reflecting an increase of about 6.7%[42]. - The effect of foreign exchange rates on cash and cash equivalents resulted in an increase of $22,388, contrasting with a decrease of $9,441 in the previous year[42]. - Trade receivables decreased by $32,026, compared to a decrease of $48,946 in the same period last year, indicating improved collection efficiency[42]. - The company reported stock-based compensation expense of $5,361, an increase from $4,133, representing a rise of about 29.8%[42].

The market expects Esab (ESAB) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 1. ...

Esab (ESAB) shares soared 12.5% in the last trading session to close at $117.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.6% loss over the past four weeks.ESAB Corp. shares got a boost yesterday after U.S President Trump announced a 90-day pause on certain tariffs for most countries (except China). The majority of ESAB's sales are derived from international operations. In 2024, 78% of its sales were generated outside of ...

YEARS STRONG Fourth Quarter 2024 February 20, 2025 EARNINGS CONFERENCE CALL © 2024 Forward-Looking Statements & Non-GAAP Disclaimer Forward-Looking Statements This presentation includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning the Company's plans, goals, objectives, outlook, expectations, and intentions, including stat ...

ESAB Corporation (NYSE:ESAB) Q4 2024 Earnings Conference Call February 20, 2025 8:00 AM ET Company Participants Mark Barbalato - Vice President of Investor Relations Shyam Kambeyanda - President and Chief Executive Officer Kevin Johnson - Chief Financial Officer Conference Call Participants Bryan Blair - Oppenheimer Saree Boroditsky - Jefferies Mig Dobre - Baird Nathan Jones - Stifel David Raso - Evercore ISI Tami Zakaria - JPMorgan Chris Dankert - Loop Capital Markets Operator Thank you for standing by, an ...

Esab (ESAB) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $1.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.30%. A quarter ago, it was expected that this maker of welding and cutting equipment would post earnings of $1.12 per share when it actually produced earnings of $1.25, delivering a surprise of 11.61%.Over the last four qu ...

Market Overview - ESAB Corporation's addressable market is estimated to be approximately $40 billion by the end of 2028, with 48% of 2024 revenues derived from high growth markets[18]. - The company's gas control business is well-positioned in attractive markets such as medical and specialty gas control[18]. - ESAB's international operations provide exposure to high growth economies, which are expected to offer additional growth opportunities[26]. - In the year ended December 31, 2024, 78% of the company's sales were derived from international operations, with 43% from the Americas and 57% from EMEA & APAC[54]. - The company believes its business mix is well balanced between high growth and developed markets, which helps mitigate cyclical industrial market exposures[185]. Financial Performance - Net sales for the year ended December 31, 2024, decreased to $2,740.8 million, down from $2,774.8 million in 2023, reflecting a decline of $34.0 million or 1.2%[206]. - Adjusted EBITDA for 2024 was $528.8 million, an increase from $501.1 million in 2023, resulting in an Adjusted EBITDA margin of 19.3%, up from 18.1%[212]. - Gross profit for 2024 increased to $1,037.5 million, with a gross profit margin of 37.9%, compared to $1,015.8 million and 36.6% in 2023[212]. - Core sales for 2024 were $2,591.2 million, a decrease of $29.8 million or 1.1% from $2,620.9 million in 2023[209]. - Net income from continuing operations for 2024 was $293.1 million, compared to $223.4 million in 2023, reflecting a net income margin increase to 10.7% from 8.0%[212]. Acquisitions and Growth Strategy - The company completed three acquisitions during the year ended December 31, 2024, and expects to pursue more acquisitions in the future[19]. - The company expects strategic acquisitions to contribute to growth, having recently acquired Therapy Equipment Limited in 2023 and Sager S.A., ESAB Bangladesh, and SUMIG in 2024[186]. - The company seeks acquisition opportunities to expand into new markets and enhance its position in existing markets, but faces risks related to integration and realization of anticipated benefits[67][69]. Workforce and Employment - Approximately 9,300 associates are employed by ESAB, with around 1,300 in the United States and 8,000 outside the United States[40]. - Approximately 18% of U.S. associates are covered by collective bargaining agreements, while 39% of non-U.S. associates are represented by foreign trade unions[45]. - The company is committed to a "Talent First" strategy, focusing on attracting and retaining talent while ensuring associate health and safety[41]. - Approximately 36% of the company's associates were represented by trade unions and works councils as of December 31, 2024[103]. - The company has approximately 8,000 associates in foreign locations, representing about 86% of its worldwide associate base[103]. Risks and Challenges - The company faces risks from cybersecurity incidents that could materially affect its business, financial condition, and results of operations[77]. - The company is exposed to fluctuations in currency exchange rates, with approximately 78% of sales derived from operations outside the United States[65]. - The cyclical nature of the welding and cutting industry may adversely affect the company's performance, particularly during periods of economic downturn[52]. - A significant decline in capital investment and maintenance expenditures by customers could reduce demand for the company's products and services, impacting financial performance[53]. - The occurrence of legal claims, regulatory actions, or environmental liabilities could have a material adverse effect on the company's business and financial results[126]. Debt and Capital Structure - As of December 31, 2024, the company has $1.1 billion of outstanding indebtedness and the ability to incur an additional $50 million of indebtedness through uncommitted credit lines[78]. - The company issued $700 million in aggregate principal amount of 6.25% senior notes due 2029 on April 9, 2024[81]. - The company may require additional capital to finance its growth strategy, which may not be available or may not be on acceptable terms[72]. Regulatory and Compliance - The company is subject to ongoing audits by tax authorities, which could result in unfavorable tax adjustments impacting future financial results[100]. - Changes in tax rates and regulations could adversely affect the company's financial results, particularly with the potential implementation of a global minimum corporate tax[99]. - The company is subject to various United States sanctions and export control regulations, which could result in substantial fines or other sanctions if not complied with[115][117]. - The company must comply with stringent environmental and health and safety laws, which could result in costly liabilities if not adhered to[120][121]. Dividend and Shareholder Returns - The company declared a quarterly cash dividend of $0.06 per share for Q1 2024 and $0.08 per share for Q2, Q3, and Q4 2024, but future dividends are not guaranteed[138]. - The company’s ability to pay dividends will depend on its financial condition, earnings, and capital requirements[139]. - The company authorized a stock repurchase program to buy back up to 5 million shares of common stock, with no repurchases made during the year ended December 31, 2024[178]. Operational Insights - The company operates through two reportable segments: "Americas" and "EMEA & APAC," serving a diversified global customer base[184]. - The company operates defined benefit pension plans and post-retirement medical and death benefit plans, which may be subject to funding requirements that could adversely affect its financial condition[106]. - A significant portion of the pension plans' assets are invested in publicly traded debt and equity securities, making them vulnerable to market risks[107]. - The company relies on third-party suppliers for a substantial amount of raw materials, parts, and components, which may be subject to price changes and availability issues[91].

ESAB Corporation Announces Fourth Quarter 2024 Results and Initiates Full Year 2025 Guidance North Bethesda, MD, February 20, 2025 -- ESAB Corporation ("ESAB" or the "Company") (NYSE: ESAB), a focused premier industrial compounder, today announced strong financial results for the fourth quarter of 2024. ESAB reported fourth quarter sales of $671 million, a decrease of 3% on a reported basis or a flat core organic growth before acquisitions and currency translation impacts, as compared to the prior year. ESA ...