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ESAB Corp Financials

ESAB
Source SEC Filings (10-K/10-Q) Updated Apr 3, 2026 Currency USD FYE December

This page shows ESAB Corp (ESAB) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 6 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI ESAB FY2025

FY2025 growth became more acquisition- and working-capital-driven, leaving cash conversion weaker even as revenue edged higher.

The drop in free cash flow to $213M was not mainly a capex issue, because capital spending stayed near $47M. Instead, a working-capital build and deal-heavy year absorbed cash: receivables plus inventory rose by roughly $159M and goodwill increased by $298M, so FY2025 expansion consumed cash before it showed up as durable operating profit.

Margin gains built through FY2024 proved fragile: gross margin slipped to 36.9% from 37.9% even though sales increased. Operating margin also fell to 14.5%, pointing to a less favorable cost or expense profile rather than clean fixed-cost absorption.

The balance sheet is more acquisition-shaped than capex-shaped: nearly 40.9% of FY2025 assets sit in goodwill, while annual capital spending was only $47M. That means asset growth increasingly reflects purchased businesses and intangibles, even as near-term liquidity improved over the last three fiscal years to 1.9x despite long-term debt above $1.2B.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 50 / 100
Financial Profile 50/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of ESAB Corp's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
56

ESAB Corp has an operating margin of 14.5%, meaning the company retains $14 of operating profit per $100 of revenue. This results in a moderate score of 56/100, indicating healthy but not exceptional operating efficiency. This is down from 16.3% the prior year.

Growth
35

ESAB Corp's revenue grew a modest 3.7% year-over-year to $2.8B. This slow but positive growth earns a score of 35/100.

Leverage
90

ESAB Corp carries a low D/E ratio of 0.57, meaning only $0.57 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 90/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
34

ESAB Corp's current ratio of 1.90 indicates adequate short-term liquidity, earning a score of 34/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow
48

ESAB Corp has a free cash flow margin of 7.5%, earning a moderate score of 48/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
38

ESAB Corp's ROE of 10.5% shows moderate profitability relative to equity, earning a score of 38/100. This is down from 15.0% the prior year.

Altman Z-Score Grey Zone
2.53

ESAB Corp scores 2.53, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.

Piotroski F-Score Neutral
5/9

ESAB Corp passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed
1.15x

For every $1 of reported earnings, ESAB Corp generates $1.15 in operating cash flow ($260.6M OCF vs $226.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

Revenue
$2.8B
YoY+3.7%
5Y CAGR+7.8%

ESAB Corp generated $2.8B in revenue in fiscal year 2025. This represents an increase of 3.7% from the prior year.

EBITDA
$496.3M
YoY-3.5%
5Y CAGR+12.2%

ESAB Corp's EBITDA was $496.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 3.5% from the prior year.

Net Income
$226.8M
YoY-14.4%
5Y CAGR+7.6%

ESAB Corp reported $226.8M in net income in fiscal year 2025. This represents a decrease of 14.4% from the prior year.

EPS (Diluted)
$3.67
YoY-14.8%

ESAB Corp earned $3.67 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 14.8% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$213.3M
YoY-29.8%
5Y CAGR-4.5%

ESAB Corp generated $213.3M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 29.8% from the prior year.

Cash & Debt
$185.9M
YoY-25.5%
5Y CAGR+30.4%

ESAB Corp held $185.9M in cash against $1.2B in long-term debt as of fiscal year 2025.

Dividends Per Share
$0.38
YoY+26.7%

ESAB Corp paid $0.38 per share in dividends in fiscal year 2025. This represents an increase of 26.7% from the prior year.

Shares Outstanding
61M
YoY+0.3%

ESAB Corp had 61M shares outstanding in fiscal year 2025. This represents an increase of 0.3% from the prior year.

Margins & Returns

Gross Margin
36.9%
YoY-1.0pp
5Y CAGR+1.9pp

ESAB Corp's gross margin was 36.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.0 percentage points from the prior year.

Operating Margin
14.5%
YoY-1.8pp
5Y CAGR+4.1pp

ESAB Corp's operating margin was 14.5% in fiscal year 2025, reflecting core business profitability. This is down 1.8 percentage points from the prior year.

Net Margin
8.0%
YoY-1.7pp
5Y CAGR-0.1pp

ESAB Corp's net profit margin was 8.0% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.7 percentage points from the prior year.

Return on Equity
10.5%
YoY-4.5pp
5Y CAGR+4.3pp

ESAB Corp's ROE was 10.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 4.5 percentage points from the prior year.

Capital Allocation

R&D Spending
$44.0M
YoY+12.2%
5Y CAGR+4.8%

ESAB Corp invested $44.0M in research and development in fiscal year 2025. This represents an increase of 12.2% from the prior year.

Share Buybacks
N/A
Capital Expenditures
$47.3M
YoY-8.7%
5Y CAGR+3.3%

ESAB Corp invested $47.3M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 8.7% from the prior year.

ESAB Income Statement

Metric Q2'26 Q4'25 Q3'25 Q2'25 Q4'24 Q3'24 Q2'24 Q1'24
Revenue $745.6M+2.4% $727.8M+1.7% $715.6M+5.5% $678.1M+1.1% $670.8M-0.4% $673.3M-4.8% $707.1M+2.5% $689.7M
Cost of Revenue $470.5M+2.6% $458.5M+2.0% $449.5M+6.3% $422.9M+2.5% $412.4M-1.7% $419.5M-4.0% $436.7M+0.5% $434.7M
Gross Profit $275.1M+2.2% $269.3M+1.2% $266.0M+4.2% $255.2M-1.2% $258.3M+1.8% $253.8M-6.1% $270.3M+6.0% $255.0M
R&D Expenses $12.5M+19.0% $10.5M0.0% $10.5M+4.0% $10.1M-1.0% $10.2M+10.9% $9.2M-5.2% $9.7M-4.0% $10.1M
SG&A Expenses $174.5M+10.2% $158.3M+1.8% $155.6M+10.4% $140.9M-3.0% $145.2M-0.5% $145.9M-0.2% $146.2M+2.6% $142.4M
Operating Income $90.5M-15.1% $106.6M-2.3% $109.1M-0.7% $109.8M-1.4% $111.4M+5.1% $106.0M-11.2% $119.4M+7.9% $110.7M
Interest Expense N/A N/A N/A N/A N/A N/A N/A N/A
Income Tax $13.1M-25.9% $17.7M-3.2% $18.3M-10.8% $20.5M-10.4% $22.9M+26.6% $18.1M+1.1% $17.9M-3.3% $18.5M
Net Income $47.6M-13.1% $54.8M-18.0% $66.9M-0.7% $67.4M+25.3% $53.7M-21.2% $68.2M-17.7% $82.9M+38.3% $60.0M
EPS (Diluted) $0.78-13.3% $0.90-17.4% $1.09-0.9% $1.10 N/A $1.11-17.8% $1.35+37.8% $0.98

ESAB Balance Sheet

Metric Q2'26 Q4'25 Q3'25 Q2'25 Q4'24 Q3'24 Q2'24 Q1'24
Total Assets $5.6B+15.5% $4.9B+9.9% $4.4B+5.1% $4.2B+4.6% $4.0B-1.2% $4.1B+3.0% $4.0B+3.6% $3.8B
Current Assets $2.2B+62.7% $1.3B-0.2% $1.3B+3.9% $1.3B+12.0% $1.1B-6.0% $1.2B+0.7% $1.2B+16.3% $1.0B
Cash & Equivalents $1.0B+360.5% $218.2M-15.5% $258.2M-11.4% $291.3M+16.8% $249.4M-1.7% $253.7M+11.0% $228.5M+198.7% $76.5M
Inventory $520.6M+3.4% $503.7M+6.2% $474.1M+5.2% $450.7M+11.6% $403.7M-4.5% $422.7M-0.9% $426.5M+5.2% $405.6M
Accounts Receivable $488.5M+6.1% $460.5M+1.0% $456.1M+10.0% $414.8M+12.0% $370.3M-12.0% $420.9M-2.4% $431.2M+0.2% $430.1M
Goodwill $1.9B-1.6% $2.0B+9.6% $1.8B+6.2% $1.7B+2.0% $1.7B-1.0% $1.7B+5.3% $1.6B-0.2% $1.6B
Total Liabilities $3.4B+25.2% $2.7B+16.7% $2.3B+2.4% $2.3B+1.9% $2.2B+0.9% $2.2B-0.5% $2.2B+3.4% $2.1B
Current Liabilities $730.0M+9.1% $669.1M-2.5% $686.5M+2.2% $672.0M+6.3% $632.1M-0.8% $637.1M-2.2% $651.1M+3.1% $631.3M
Long-Term Debt $2.0B+52.3% $1.3B+26.0% $1.1B+0.2% $1.1B-0.4% $1.1B-1.8% $1.1B+0.1% $1.1B+8.7% $992.8M
Total Equity $2.2B+3.5% $2.1B+2.2% $2.1B+8.4% $1.9B+8.0% $1.8B-3.7% $1.8B+7.6% $1.7B+4.1% $1.6B
Retained Earnings $842.3M+9.5% $769.2M+6.8% $720.5M+9.2% $659.7M+10.5% $597.2M+8.9% $548.3M+13.1% $484.9M+19.2% $406.9M

ESAB Cash Flow Statement

Metric Q2'26 Q4'25 Q3'25 Q2'25 Q4'24 Q3'24 Q2'24 Q1'24
Operating Cash Flow $46.9M-42.4% $81.5M+74.7% $46.6M+31.7% $35.4M-72.1% $126.9M+25.6% $101.0M+21.7% $83.0M+86.7% $44.5M
Capital Expenditures $13.7M+22.6% $11.2M+21.8% $9.2M+25.9% $7.3M-70.5% $24.7M+132.3% $10.6M+17.9% $9.0M+21.7% $7.4M
Free Cash Flow $33.2M-52.8% $70.3M+87.7% $37.4M+33.2% $28.1M-72.5% $102.2M+13.0% $90.4M+22.2% $74.0M+99.7% $37.1M
Investing Cash Flow -$13.4M+96.3% -$363.6M-279.5% -$95.8M-3462.8% -$2.7M+97.1% -$91.5M-18.4% -$77.3M-648.5% -$10.3M+61.2% -$26.6M
Financing Cash Flow $786.2M+218.4% $246.9M+3882.3% -$6.5M+50.2% -$13.1M-47.3% -$8.9M-56.1% -$5.7M-107.1% $80.2M+336.4% -$33.9M
Dividends Paid $6.1M0.0% $6.1M+25.1% $4.9M+0.1% $4.9M+0.1% $4.9M0.0% $4.9M+33.3% $3.6M+0.2% $3.6M
Share Buybacks N/A N/A N/A N/A N/A N/A N/A N/A

ESAB Financial Ratios

Metric Q2'26 Q4'25 Q3'25 Q2'25 Q4'24 Q3'24 Q2'24 Q1'24
Gross Margin 36.9%-0.1pp 37.0%-0.2pp 37.2%-0.5pp 37.6%-0.9pp 38.5%+0.8pp 37.7%-0.5pp 38.2%+1.3pp 37.0%
Operating Margin 12.1%-2.5pp 14.6%-0.6pp 15.3%-1.0pp 16.2%-0.4pp 16.6%+0.9pp 15.8%-1.1pp 16.9%+0.8pp 16.0%
Net Margin 6.4%-1.1pp 7.5%-1.8pp 9.3%-0.6pp 9.9%+1.9pp 8.0%-2.1pp 10.1%-1.6pp 11.7%+3.0pp 8.7%
Return on Equity 2.2%-0.4pp 2.6%-0.6pp 3.2%-0.3pp 3.5%+0.5pp 3.0%-0.7pp 3.7%-1.1pp 4.9%+1.2pp 3.6%
Return on Assets 0.9%-0.3pp 1.1%-0.4pp 1.5%-0.1pp 1.6%+0.3pp 1.3%-0.3pp 1.7%-0.4pp 2.1%+0.5pp 1.6%
Current Ratio 2.97+1.0 1.99+0.0 1.95+0.0 1.91+0.1 1.82-0.1 1.92+0.1 1.86+0.2 1.65
Debt-to-Equity 0.93+0.3 0.63+0.1 0.51-0.0 0.55-0.0 0.60+0.0 0.59-0.0 0.63+0.0 0.61
FCF Margin 4.5%-5.2pp 9.7%+4.4pp 5.2%+1.1pp 4.2%-11.1pp 15.2%+1.8pp 13.4%+3.0pp 10.5%+5.1pp 5.4%

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Frequently Asked Questions

ESAB Corp (ESAB) reported $2.8B in total revenue for fiscal year 2025. This represents a 3.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

ESAB Corp (ESAB) revenue grew by 3.7% year-over-year, from $2.7B to $2.8B in fiscal year 2025.

Yes, ESAB Corp (ESAB) reported a net income of $226.8M in fiscal year 2025, with a net profit margin of 8.0%.

ESAB Corp (ESAB) reported diluted earnings per share of $3.67 for fiscal year 2025. This represents a -14.8% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

ESAB Corp (ESAB) had EBITDA of $496.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, ESAB Corp (ESAB) had $185.9M in cash and equivalents against $1.2B in long-term debt.

ESAB Corp (ESAB) had a gross margin of 36.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

ESAB Corp (ESAB) had an operating margin of 14.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

ESAB Corp (ESAB) had a net profit margin of 8.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Yes, ESAB Corp (ESAB) paid $0.38 per share in dividends during fiscal year 2025.

ESAB Corp (ESAB) has a return on equity of 10.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

ESAB Corp (ESAB) generated $213.3M in free cash flow during fiscal year 2025. This represents a -29.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

ESAB Corp (ESAB) generated $260.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

ESAB Corp (ESAB) had $4.8B in total assets as of fiscal year 2025, including both current and long-term assets.

ESAB Corp (ESAB) invested $47.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

ESAB Corp (ESAB) invested $44.0M in research and development during fiscal year 2025.

ESAB Corp (ESAB) had 61M shares outstanding as of fiscal year 2025.

ESAB Corp (ESAB) had a current ratio of 1.90 as of fiscal year 2025, which is generally considered healthy.

ESAB Corp (ESAB) had a debt-to-equity ratio of 0.57 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

ESAB Corp (ESAB) had a return on assets of 4.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

ESAB Corp (ESAB) has an Altman Z-Score of 2.53, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

ESAB Corp (ESAB) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

ESAB Corp (ESAB) has an earnings quality ratio of 1.15x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

ESAB Corp (ESAB) scores 50 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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