Workflow
ESAB (ESAB) - 2025 Q1 - Quarterly Results
ESABESAB (ESAB)2025-05-01 10:32
Transcript

Financial Performance - ESAB reported first quarter sales of 678million,adecreaseof2678 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 1.14dilutedearningspershare,comparedto1.14 diluted earnings per share, compared to 62.9 million and 1.00intheprioryear[3][22].−CoreadjustedEBITDAincreasedto1.00 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 76.9million,comparedto76.9 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 72.6million,comparedto72.6 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 133.9million,withanadjustedEBITDAmarginof19.7133.9 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 678.1million,adeclineof1.7678.1 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 127.9million,comparedto127.9 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,anincreasefrom69,832, 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 5.10to5.10 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 5.10to5.10 to 5.25, compared to 5.06for2024[37].AcquisitionsandStrategicInitiatives−ESABcompletedtheacquisitionofBavariaSchweisstechnikGmbH,enhancingitsconsumablesportfolio[7].−Thecompanyemphasizeditsstrategyofleveragingglobalscalewhilemaintaininglocalagilitytodrivegrowth[4].CashFlowandAssets−AdjustedfreecashflowforthethreemonthsendedApril4,2025,was5.06 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 40.8millionforthesameperiodin2024[34].−TotalassetsasofApril4,2025,were40.8 million for the same period in 2024[34]. - Total assets as of April 4, 2025, were 4,217.5 million, an increase from 4,033.9millionasofDecember31,2024[39].−Thecompanyreportedacurrentportionofdebtof4,033.9 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 15.0millionasofDecember31,2024[39].−Goodwillincreasedto15.0 million as of December 31, 2024[39]. - Goodwill increased to 1,684.8 million as of April 4, 2025, from 1,652.0millionasofDecember31,2024[39].DividendsandStockholderReturns−Thecompanypaiddividendstotaling1,652.0 million as of December 31, 2024[39]. Dividends and Stockholder Returns - The company paid dividends totaling 4,861, compared to 3,635intheprioryear,markinganincreaseofapproximately33.83,635 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,adeclineofabout20.444,467, 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,showingasignificantriseofapproximately280.576,495, showing a significant rise of approximately 280.5%[42]. - Net cash used in investing activities was 2,689, a decrease from 26,614,indicatingareductionofabout89.926,614, 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 44inthepreviousyear[42].−Totaldepreciation,amortization,andotherimpairmentchargeswere44 in the previous year[42]. - Total depreciation, amortization, and other impairment charges were 17,491, up from 16,387,reflectinganincreaseofabout6.716,387, 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 9,441inthepreviousyear[42].−Tradereceivablesdecreasedby9,441 in the previous year[42]. - Trade receivables decreased by 32,026, compared to a decrease of 48,946inthesameperiodlastyear,indicatingimprovedcollectionefficiency[42].−Thecompanyreportedstock−basedcompensationexpenseof48,946 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].