ESAB Corporation Announces Fourth Quarter 2024 Results and Initiates Full Year 2025 Guidance
ESAB reported Q4 2024 sales of $671 million, showing flat core organic growth but a 3% decrease on a reported basis compared to the previous year. The company achieved net income from continuing operations of $72 million, or $1.18 diluted earnings per share, with core adjusted net income of $79 million ($1.28 per share).
Core adjusted EBITDA reached $129 million, rising 2% with margins expanding 90 basis points to 20.3%. The company completed the acquisition of SUMIG in Q4 2024 and announced an agreement to acquire Bavaria Schweisstechnik GmbH. For 2025, ESAB projects core organic growth of 0.0% to 2.0% and total core sales growth of -2.0% to 0.0%, factoring in -3.5% currency headwinds and 1.5% M&A growth. The company expects core adjusted EBITDA of $515-530 million and core adjusted EPS of $5.10-5.25 for 2025.
ESAB ha riportato vendite nel Q4 2024 di 671 milioni di dollari, mostrando una crescita organica core piatta ma una diminuzione del 3% su base riportata rispetto all'anno precedente. L'azienda ha ottenuto un reddito netto dalle operazioni continuative di 72 milioni di dollari, ovvero 1,18 dollari di utili per azione diluiti, con un reddito netto core rettificato di 79 milioni di dollari (1,28 dollari per azione).
Il EBITDA core rettificato ha raggiunto 129 milioni di dollari, aumentando del 2% con margini in espansione di 90 punti base al 20,3%. L'azienda ha completato l'acquisizione di SUMIG nel Q4 2024 e ha annunciato un accordo per acquisire Bavaria Schweisstechnik GmbH. Per il 2025, ESAB prevede una crescita organica core dallo 0,0% al 2,0% e una crescita totale delle vendite core dal -2,0% allo 0,0%, considerando un impatto negativo delle valute del -3,5% e una crescita da M&A dell'1,5%. L'azienda si aspetta un EBITDA core rettificato di 515-530 milioni di dollari e un EPS core rettificato di 5,10-5,25 dollari per il 2025.
ESAB informó ventas en el Q4 2024 de 671 millones de dólares, mostrando un crecimiento orgánico central plano pero una disminución del 3% en base reportada en comparación con el año anterior. La compañía logró un ingreso neto de operaciones continuas de 72 millones de dólares, o 1.18 dólares de ganancias por acción diluidas, con un ingreso neto central ajustado de 79 millones de dólares (1.28 dólares por acción).
El EBITDA central ajustado alcanzó 129 millones de dólares, aumentando un 2% con márgenes que se expanden 90 puntos básicos al 20.3%. La compañía completó la adquisición de SUMIG en el Q4 2024 y anunció un acuerdo para adquirir Bavaria Schweisstechnik GmbH. Para 2025, ESAB proyecta un crecimiento orgánico central del 0.0% al 2.0% y un crecimiento total de ventas centrales del -2.0% al 0.0%, teniendo en cuenta un impacto negativo de divisas del -3.5% y un crecimiento de M&A del 1.5%. La compañía espera un EBITDA central ajustado de 515-530 millones de dólares y un EPS central ajustado de 5.10-5.25 dólares para 2025.
ESAB는 2024년 4분기 매출이 6억 7천 1백만 달러에 달한다고 보고하며, 핵심 유기적 성장은 정체 상태를 보였지만 전년 대비 3% 감소한 수치라고 밝혔습니다. 이 회사는 지속적인 운영에서의 순이익이 7천 2백만 달러, 즉 희석 주당 순이익 1.18달러에 달하며, 조정된 핵심 순이익은 7천 9백만 달러(주당 1.28달러)로 나타났습니다.
조정된 핵심 EBITDA는 1억 2천 9백만 달러에 도달하여 2% 증가하였고, 마진은 20.3%로 90베이시스 포인트 확대되었습니다. 이 회사는 2024년 4분기에 SUMIG의 인수를 완료하였고, Bavaria Schweisstechnik GmbH 인수를 위한 계약을 발표했습니다. 2025년을 위해 ESAB는 0.0%에서 2.0%의 핵심 유기적 성장과 -2.0%에서 0.0%의 총 핵심 매출 성장을 예상하고 있으며, -3.5%의 환율 악재와 1.5%의 M&A 성장을 반영하고 있습니다. 이 회사는 2025년 조정된 핵심 EBITDA가 5억 1천 5백만에서 5억 3천만 달러, 조정된 핵심 EPS가 5.10에서 5.25달러에 이를 것으로 예상하고 있습니다.
ESAB a annoncé des ventes au Q4 2024 de 671 millions de dollars, montrant une croissance organique de base stable mais une diminution de 3% sur une base reportée par rapport à l'année précédente. L'entreprise a réalisé un revenu net des opérations continues de 72 millions de dollars, soit 1,18 dollar de bénéfice par action dilué, avec un revenu net ajusté de base de 79 millions de dollars (1,28 dollar par action).
L'EBITDA ajusté de base a atteint 129 millions de dollars, en hausse de 2%, avec des marges s'élargissant de 90 points de base à 20,3%. L'entreprise a finalisé l'acquisition de SUMIG au Q4 2024 et a annoncé un accord pour acquérir Bavaria Schweisstechnik GmbH. Pour 2025, ESAB projette une croissance organique de base de 0,0% à 2,0% et une croissance totale des ventes de base de -2,0% à 0,0%, tenant compte des impacts négatifs des devises de -3,5% et d'une croissance M&A de 1,5%. L'entreprise s'attend à un EBITDA ajusté de base de 515 à 530 millions de dollars et un BPA ajusté de base de 5,10 à 5,25 dollars pour 2025.
ESAB berichtete im Q4 2024 von einem Umsatz von 671 Millionen Dollar, was ein stagnierendes organisches Kernwachstum zeigt, jedoch einen Rückgang von 3% auf Berichtsbasis im Vergleich zum Vorjahr darstellt. Das Unternehmen erzielte einen Nettoertrag aus fortgeführten Betrieben von 72 Millionen Dollar, oder 1,18 Dollar verwässerte Erträge je Aktie, mit einem angepassten Kernnettoeinkommen von 79 Millionen Dollar (1,28 Dollar pro Aktie).
Das angepasste Kern-EBITDA erreichte 129 Millionen Dollar, was einem Anstieg von 2% entspricht, während die Margen um 90 Basispunkte auf 20,3% anstiegen. Das Unternehmen schloss die Übernahme von SUMIG im Q4 2024 ab und kündigte eine Vereinbarung zur Übernahme von Bavaria Schweisstechnik GmbH an. Für 2025 prognostiziert ESAB ein organisches Kernwachstum von 0,0% bis 2,0% und ein Gesamtwachstum des Kernumsatzes von -2,0% bis 0,0%, wobei -3,5% Währungsbelastungen und 1,5% M&A-Wachstum berücksichtigt werden. Das Unternehmen erwartet ein angepasstes Kern-EBITDA von 515-530 Millionen Dollar und einen angepassten Kern-EPS von 5,10-5,25 Dollar für 2025.
- Core adjusted EBITDA increased 2% to $129 million
- Margins expanded 90 basis points to 20.3%
- Strategic acquisition of SUMIG completed
- High-single-digit welding equipment growth achieved
- Sales decreased 3% on a reported basis to $671 million
- Projected currency headwinds of -3.5% for 2025
- Flat core organic growth in Q4 2024
Insights
ESAB's Q4 2024 performance reveals a compelling story of operational excellence despite top-line challenges. While reported sales declined
The strategic acquisitions of SUMIG and the planned purchase of Bavaria represent calculated moves to enhance ESAB's market position. SUMIG strengthens the company's light automation capabilities in South America, a growing market for industrial automation, while Bavaria will bolster the European consumables portfolio. These bolt-on acquisitions align with ESAB's strategy of expanding its high-margin product offerings and geographical presence.
The 2025 guidance presents a conservative outlook, with core organic growth of
- Flat core organic growth
- High-single-digit welding equipment growth
- EBX driving record margin
- Completed acquisition of SUMIG
-
Signed agreement to acquire
Bavaria
ESAB reported fourth quarter sales of
“Our teams delivered another strong quarter, closing another year of exceptional performance. ESAB continues to innovate, introducing products and solutions that fueled growth in welding equipment this quarter. Our relentless focus on efficiency is evident in our record-breaking margin performance," said Shyam P. Kambeyanda, President and CEO of ESAB. "We successfully completed a strategic bolt-on acquisition, further strengthening our ability to provide world-class light-industrial automation solutions to our global customers. As we step into 2025, we are more committed than ever to driving long-term shareholder value and are confidently on track to achieve our 2028 goals.”
ESAB Full Year 2025 Outlook
ESAB expects core organic growth of
About SUMIG
In the fourth quarter of 2024, the Company completed the acquisition of SUMIG, a South American light automation and equipment business. This acquisition aims to open market opportunities through an enhanced portfolio globally and expand the Company's presence in
About
In the first quarter of 2025, the Company entered into an agreement to acquire Bavaria Schweisstechnik GmbH, a European business, which strengthens our consumables portfolio. This acquisition is expected to close in 2025, subject to the receipt of applicable regulatory approvals and customary closing conditions.
Conference Call and Webcast
The Company will hold a conference call to discuss its fourth quarter 2024 results beginning at 8:00 a.m. Eastern on Thursday, February 20, 2025, which will be open to the public by calling +1-888-550-5302 (
About ESAB Corporation
Founded in 1904, ESAB Corporation (NYSE: ESAB) is a focused premier industrial compounder. The Company’s rich history of innovative products, workflow solutions and business system ESAB Business Excellence, enables its purpose of Shaping the world we imagineTM. ESAB Corporation is based in
Non-GAAP Financial Measures and Other Adjustments
ESAB has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in
Adjusted net income from continuing operations represents Net income from continuing operations attributable to ESAB Corporation, excluding Restructuring and other related charges, acquisition-amortization and other related charges and Pension settlement loss. Adjusted net income includes the tax effect of non-GAAP adjusting items at applicable tax rates and excludes the impact of discrete tax charges or gains in each period. ESAB also presents adjusted net income margin from continuing operations, which is subject to the same adjustments as adjusted net income from continuing operations. Adjusted net income per diluted share from continuing operations is a calculation of adjusted net income from continuing operations over the weighted-average diluted shares outstanding. ESAB also presents Core adjusted net income from continuing operations and Core adjusted net income per diluted share from continuing operations, which are subject to the same adjustments as Adjusted net income from continuing operations and Adjusted net income per diluted share from continuing operations, further removing the impact of
Adjusted EBITDA excludes from Net income from continuing operations the effect of Income tax expense, Interest expense and other, net, Pension settlement loss, Restructuring and other related charges, acquisition-amortization and other related charges and depreciation and other amortization. ESAB presents adjusted EBITDA margin, which is subject to the same adjustments as adjusted EBITDA. Further, ESAB presents these non-GAAP performance measures on a segment basis, which excludes the impact of Restructuring and other related charges, acquisition-amortization and other related charges and depreciation and other amortization from operating income. ESAB also presents Core adjusted EBITDA and Core adjusted EBITDA margin, which are subject to the same adjustments as Adjusted EBITDA and Adjusted EBITDA margin, respectively, further removing the impact of
ESAB presents organic sales growth (decline), which excludes the impact of acquisitions and foreign exchange rate fluctuations, and presents core organic sales growth (decline), which further excludes the impact of the
Adjusted free cash flow represents cash flows from operating activities excluding cash outflows related to the Company’s separation from Enovis Corporation (the “Separation”) and discontinued operations, less Purchases of property, plant and equipment net of proceeds from sale of certain properties.
These non-GAAP financial measures assist ESAB management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to unusual events or discrete restructuring plans and other initiatives that are fundamentally different from the ongoing productivity and core business of the Company. ESAB management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.
Forward Looking Statements
This press release includes forward-looking statements, including forward-looking statements within the meaning of the
ESAB CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Dollars in thousands, except per share data (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||
Net sales |
$ |
670,756 |
|
|
$ |
689,348 |
|
|
$ |
2,740,803 |
|
|
$ |
2,774,766 |
|
Cost of sales |
|
412,433 |
|
|
|
434,623 |
|
|
|
1,703,348 |
|
|
|
1,759,015 |
|
Gross profit |
|
258,323 |
|
|
|
254,725 |
|
|
|
1,037,455 |
|
|
|
1,015,751 |
|
Selling, general and administrative expense |
|
145,241 |
|
|
|
144,639 |
|
|
|
579,778 |
|
|
|
587,475 |
|
Restructuring and other related charges |
|
1,655 |
|
|
|
6,368 |
|
|
|
10,227 |
|
|
|
24,110 |
|
Operating income |
|
111,427 |
|
|
|
103,718 |
|
|
|
447,450 |
|
|
|
404,166 |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
|
12,155 |
|
|
|
— |
|
Interest expense and other, net |
|
14,965 |
|
|
|
26,243 |
|
|
|
64,890 |
|
|
|
85,074 |
|
Income from continuing operations before income taxes |
|
96,462 |
|
|
|
77,475 |
|
|
|
370,405 |
|
|
|
319,092 |
|
Income tax expense |
|
22,885 |
|
|
|
17,921 |
|
|
|
77,348 |
|
|
|
95,727 |
|
Net income from continuing operations |
|
73,577 |
|
|
|
59,554 |
|
|
|
293,057 |
|
|
|
223,365 |
|
Loss income from discontinued operations, net of taxes |
|
(18,625 |
) |
|
|
(8,082 |
) |
|
|
(22,309 |
) |
|
|
(12,341 |
) |
Net income |
|
54,952 |
|
|
|
51,472 |
|
|
|
270,748 |
|
|
|
211,024 |
|
Income attributable to noncontrolling interest, net of taxes |
|
(1,208 |
) |
|
|
(1,233 |
) |
|
|
(5,906 |
) |
|
|
(5,739 |
) |
Net income attributable to ESAB Corporation |
$ |
53,744 |
|
|
$ |
50,239 |
|
|
$ |
264,842 |
|
|
$ |
205,285 |
|
Earnings (loss) per share – basic |
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
$ |
1.19 |
|
|
$ |
0.96 |
|
|
$ |
4.73 |
|
|
$ |
3.59 |
|
Loss on discontinued operations |
|
(0.31 |
) |
|
|
(0.13 |
) |
|
|
(0.37 |
) |
|
|
(0.20 |
) |
Net income per share – basic |
$ |
0.88 |
|
|
$ |
0.83 |
|
|
$ |
4.36 |
|
|
$ |
3.39 |
|
Earnings (loss) per share – diluted |
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
$ |
1.18 |
|
|
$ |
0.96 |
|
|
$ |
4.68 |
|
|
$ |
3.56 |
|
Loss on discontinued operations |
|
(0.30 |
) |
|
|
(0.13 |
) |
|
|
(0.37 |
) |
|
|
(0.20 |
) |
Net income per share – diluted |
$ |
0.88 |
|
|
$ |
0.83 |
|
|
$ |
4.31 |
|
|
$ |
3.36 |
|
ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Dollars in millions, except per share data (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||
Adjusted Net Income |
|
||||||||||||||
Net income from continuing operations (GAAP) |
$ |
73.6 |
|
|
$ |
59.6 |
|
|
$ |
293.1 |
|
|
$ |
223.4 |
|
Less: Income attributable to noncontrolling interest, net of taxes |
|
1.2 |
|
|
|
1.2 |
|
|
|
5.9 |
|
|
|
5.7 |
|
Net income from continuing operations attributable to ESAB Corporation (GAAP) |
|
72.4 |
|
|
|
58.4 |
|
|
|
287.2 |
|
|
|
217.7 |
|
Restructuring and other related charges – pretax(2) |
|
1.7 |
|
|
|
6.4 |
|
|
|
10.2 |
|
|
|
24.1 |
|
Acquisition - amortization and other related charges – pretax(3) |
|
8.9 |
|
|
|
9.0 |
|
|
|
34.5 |
|
|
|
36.9 |
|
Pension settlement loss – pretax |
|
— |
|
|
|
— |
|
|
|
12.2 |
|
|
|
— |
|
Tax effect on above items(4) |
|
(2.4 |
) |
|
|
(3.7 |
) |
|
|
(13.7 |
) |
|
|
(14.7 |
) |
Discrete tax adjustments(5) |
|
(0.4 |
) |
|
|
0.7 |
|
|
|
(6.9 |
) |
|
|
20.8 |
|
Adjusted net income from continuing operations (non-GAAP) |
|
80.1 |
|
|
|
70.8 |
|
|
|
323.5 |
|
|
|
284.8 |
|
Adjusted net income from continuing operations attributable to |
|
1.6 |
|
|
|
2.1 |
|
|
|
13.0 |
|
|
|
12.9 |
|
Core adjusted net income from continuing operations (non-GAAP) |
$ |
78.5 |
|
|
$ |
68.7 |
|
|
$ |
310.5 |
|
|
$ |
271.8 |
|
Adjusted net income margin from continuing operations |
|
11.9 |
% |
|
|
10.3 |
% |
|
|
11.8 |
% |
|
|
10.3 |
% |
|
|
|
|
|
|
|
|
||||||||
Adjusted Net Income Per Share |
|
|
|
|
|
|
|
||||||||
Net income per share – diluted from continuing operations (GAAP) |
$ |
1.18 |
|
|
$ |
0.96 |
|
|
$ |
4.68 |
|
|
$ |
3.56 |
|
Restructuring and other related charges – pretax(2) |
|
0.03 |
|
|
|
0.10 |
|
|
|
0.17 |
|
|
|
0.40 |
|
Acquisition - amortization and other related charges – pretax(3) |
|
0.15 |
|
|
|
0.15 |
|
|
|
0.56 |
|
|
|
0.61 |
|
Pension settlement loss – pretax |
|
— |
|
|
|
— |
|
|
|
0.20 |
|
|
|
— |
|
Tax effect on above items(4) |
|
(0.04 |
) |
|
|
(0.06 |
) |
|
|
(0.22 |
) |
|
|
(0.24 |
) |
Discrete tax adjustments(5) |
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.11 |
) |
|
|
0.34 |
|
Adjusted net income per share – diluted from continuing operations (non-GAAP) |
|
1.31 |
|
|
|
1.16 |
|
|
|
5.27 |
|
|
|
4.67 |
|
Adjusted net income per share – diluted from continuing operations attributable to |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.21 |
|
|
|
0.21 |
|
Core adjusted net income per share – diluted from continuing operations (non-GAAP) |
$ |
1.28 |
|
|
$ |
1.13 |
|
|
$ |
5.06 |
|
|
$ |
4.46 |
|
| __________ | |
(1) |
Numbers may not sum due to rounding. |
(2) |
Includes severance and other termination benefits, including outplacement services, as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets and other costs in connection with the closure and optimization of facilities and product lines. |
(3) |
Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses. |
(4) |
This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the proceeding line items of the table. ESAB estimates the tax effect of each adjustment item by applying ESAB’s overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. |
(5) |
Discrete tax adjustments for ESAB include the impact of net discrete tax expenses related to law changes, certain dividend withholding taxes and the impact of unrecognized tax benefits due to favorable court ruling in a foreign jurisdiction. |
(6) |
Represents |
ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Dollars in millions (Unaudited) |
|||||||||||||||||||||||
|
Three Months Ended December 31, 2024 |
|
Year Ended December 31, 2024 |
||||||||||||||||||||
|
|
|
EMEA & APAC |
|
Total |
|
|
|
EMEA & APAC |
|
Total |
||||||||||||
Net income from continuing operations (GAAP) |
|
|
|
|
$ |
73.6 |
|
|
|
|
|
|
$ |
293.1 |
|
||||||||
Income tax expense |
|
|
|
|
|
22.9 |
|
|
|
|
|
|
|
77.3 |
|
||||||||
Interest expense and other, net |
|
|
|
|
|
15.0 |
|
|
|
|
|
|
|
64.9 |
|
||||||||
Pension settlement loss |
|
|
|
|
|
— |
|
|
|
|
|
|
|
12.2 |
|
||||||||
Operating income (GAAP) |
$ |
51.5 |
|
|
$ |
60.0 |
|
|
$ |
111.4 |
|
|
$ |
203.2 |
|
|
$ |
244.2 |
|
|
$ |
447.5 |
|
Adjusted to add: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring and other related charges(2) |
|
1.0 |
|
|
|
0.7 |
|
|
|
1.7 |
|
|
|
3.0 |
|
|
|
7.2 |
|
|
|
10.2 |
|
Acquisition - amortization and other related charges (3) |
|
5.0 |
|
|
|
3.9 |
|
|
|
8.9 |
|
|
|
18.6 |
|
|
|
15.9 |
|
|
|
34.5 |
|
Depreciation and other amortization |
|
3.5 |
|
|
|
5.7 |
|
|
|
9.2 |
|
|
|
14.5 |
|
|
|
22.2 |
|
|
|
36.6 |
|
Adjusted EBITDA (non-GAAP) |
|
61.0 |
|
|
|
70.2 |
|
|
|
131.2 |
|
|
|
239.2 |
|
|
|
289.6 |
|
|
|
528.8 |
|
Adjusted EBITDA attributable to |
|
— |
|
|
|
2.6 |
|
|
|
2.6 |
|
|
|
— |
|
|
|
18.1 |
|
|
|
18.1 |
|
Core adjusted EBITDA (non-GAAP) |
$ |
61.0 |
|
|
$ |
67.6 |
|
|
$ |
128.6 |
|
|
$ |
239.2 |
|
|
$ |
271.5 |
|
|
$ |
510.7 |
|
Adjusted EBITDA margin (non-GAAP) |
|
21.6 |
% |
|
|
18.1 |
% |
|
|
19.6 |
% |
|
|
20.3 |
% |
|
|
18.5 |
% |
|
|
19.3 |
% |
Core adjusted EBITDA margin (non-GAAP)(5) |
|
21.6 |
% |
|
|
19.3 |
% |
|
|
20.3 |
% |
|
|
20.3 |
% |
|
|
19.2 |
% |
|
|
19.7 |
% |
| __________ | |
(1) |
Numbers may not sum due to rounding. |
(2) |
Includes severance and other termination benefits, including outplacement services, as well as the cost of relocating associates, relocating equipment, lease termination expenses and other costs in connection with the closure and optimization of facilities and product lines. |
(3) |
Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses. |
(4) |
Numbers calculated following the same definition as Adjusted EBITDA for total Company. |
(5) |
Net sales were |
ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Dollars in millions (Unaudited) |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
Three Months Ended December 31, 2023 |
|
Year Ended December 31, 2023 |
||||||||||||||||||||
|
|
|
EMEA & APAC |
|
Total |
|
|
|
EMEA & APAC |
|
Total |
||||||||||||
Net income from continuing operations (GAAP) |
|
|
|
|
$ |
59.6 |
|
|
|
|
|
|
$ |
223.4 |
|
||||||||
Income tax expense |
|
|
|
|
|
17.9 |
|
|
|
|
|
|
|
95.7 |
|
||||||||
Interest expense and other, net |
|
|
|
|
|
26.2 |
|
|
|
|
|
|
|
85.1 |
|
||||||||
Operating income (GAAP) |
$ |
50.1 |
|
|
$ |
53.6 |
|
|
$ |
103.7 |
|
|
$ |
182.5 |
|
|
$ |
221.7 |
|
|
$ |
404.2 |
|
Adjusted to add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Restructuring and other related charges(2) |
|
1.1 |
|
|
|
5.3 |
|
|
|
6.4 |
|
|
|
6.5 |
|
|
|
17.6 |
|
|
|
24.1 |
|
Acquisition-amortization and other related charges(3) |
|
5.0 |
|
|
|
4.0 |
|
|
|
9.0 |
|
|
|
20.9 |
|
|
|
15.9 |
|
|
|
36.9 |
|
Depreciation and other amortization |
|
3.7 |
|
|
|
5.7 |
|
|
|
9.4 |
|
|
|
14.8 |
|
|
|
21.2 |
|
|
|
36.0 |
|
Adjusted EBITDA (non-GAAP) |
|
59.8 |
|
|
|
68.6 |
|
|
|
128.5 |
|
|
|
224.7 |
|
|
|
276.4 |
|
|
|
501.1 |
|
Adjusted EBITDA attributable to |
|
— |
|
|
|
2.7 |
|
|
|
2.7 |
|
|
|
— |
|
|
|
18.4 |
|
|
|
18.4 |
|
Core adjusted EBITDA (non-GAAP) |
$ |
59.8 |
|
|
$ |
65.9 |
|
|
$ |
125.8 |
|
|
$ |
224.7 |
|
|
$ |
258.0 |
|
|
$ |
482.7 |
|
Adjusted EBITDA margin (non-GAAP) |
|
19.5 |
% |
|
|
18.0 |
% |
|
|
18.6 |
% |
|
|
18.5 |
% |
|
|
17.7 |
% |
|
|
18.1 |
% |
Core adjusted EBITDA margin (non-GAAP)(5) |
|
19.5 |
% |
|
|
19.3 |
% |
|
|
19.4 |
% |
|
|
18.5 |
% |
|
|
18.4 |
% |
|
|
18.4 |
% |
| __________ | |
(1) |
Numbers may not sum due to rounding. |
(2) |
Includes severance and other termination benefits, including outplacement services, as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets and other costs in connection with the closure and optimization of facilities and product lines. |
(3) |
Includes transaction expenses, amortization of intangibles, fair value changes on acquired inventories and integration expenses. |
(4) |
Numbers calculated following the same definition as Adjusted EBITDA for total Company. |
(5) |
Net sales were |
ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Change in Sales Dollars in millions (Unaudited) |
||||||||||||||||||||
|
Sales (Decline) Growth(1) |
|||||||||||||||||||
|
|
|
EMEA & APAC |
|
Total ESAB |
|||||||||||||||
|
$ |
|
Change % |
|
$ |
|
Change % |
|
$ |
|
Change % |
|||||||||
For the three months ended December 31, 2023 |
$ |
307.3 |
|
|
|
|
$ |
382.0 |
|
|
|
|
$ |
689.4 |
|
|
|
|||
Components of Change: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Existing businesses (organic sales growth)(2) |
|
(4.6 |
) |
|
(1.5 |
)% |
|
|
5.3 |
|
|
1.4 |
% |
|
|
0.7 |
|
|
0.1 |
% |
Acquisitions(3) |
|
7.9 |
|
|
2.6 |
% |
|
|
5.3 |
|
|
1.4 |
% |
|
|
13.2 |
|
|
1.9 |
% |
Foreign Currency translation(4) |
|
(28.5 |
) |
|
(9.3 |
)% |
|
|
(4.0 |
) |
|
(1.0 |
)% |
|
|
(32.4 |
) |
|
(4.7 |
)% |
Total sales (decline) growth |
|
(25.2 |
) |
|
(8.2 |
)% |
|
|
6.6 |
|
|
1.7 |
% |
|
|
(18.6 |
) |
|
(2.7 |
)% |
For the three months ended December 31, 2024 |
$ |
282.1 |
|
|
|
|
$ |
388.6 |
|
|
|
|
$ |
670.8 |
|
|
|
|||
| __________ | |
(1) |
Numbers may not sum due to rounding. |
(2) |
Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume. |
(3) |
Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business. |
(4) |
Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates. |
|
Core Sales (Decline) Growth(1)(2) |
|||||||||||||||||||
|
|
|
EMEA & APAC |
|
ESAB |
|||||||||||||||
|
$ |
|
Change % |
|
$ |
|
Change % |
|
$ |
|
Change % |
|||||||||
For the three months ended December 31, 2023 |
$ |
307.3 |
|
|
|
|
$ |
342.6 |
|
|
|
|
$ |
649.9 |
|
|
|
|||
Components of Change: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Existing businesses (core organic sales growth)(3) |
|
(4.6 |
) |
|
(1.5 |
)% |
|
|
4.3 |
|
|
1.3 |
% |
|
|
(0.3 |
) |
|
(0.1 |
)% |
Acquisitions(4) |
|
7.9 |
|
|
2.6 |
% |
|
|
5.3 |
|
|
1.5 |
% |
|
|
13.2 |
|
|
2.0 |
% |
Foreign Currency translation(5) |
|
(28.5 |
) |
|
(9.3 |
)% |
|
|
(1.1 |
) |
|
(0.3 |
)% |
|
|
(29.6 |
) |
|
(4.6 |
)% |
Total core sales (decline) growth |
|
(25.2 |
) |
|
(8.2 |
)% |
|
|
8.5 |
|
|
2.5 |
% |
|
|
(16.8 |
) |
|
(2.6 |
)% |
For the three months ended December 31, 2024 |
$ |
282.1 |
|
|
|
|
$ |
351.0 |
|
|
|
|
$ |
633.2 |
|
|
|
|||
| __________ | |
(1) |
Numbers may not sum due to rounding. |
(2) |
Excludes |
(3) |
Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume. |
(4) |
Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business. |
(5) |
Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates. |
ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Change in Sales Dollars in millions (Unaudited) |
||||||||||||||||||||
|
Sales (Decline) Growth(1) |
|||||||||||||||||||
|
|
|
EMEA & APAC |
|
Total ESAB(1) |
|||||||||||||||
|
$ |
|
Change % |
|
$ |
|
Change % |
|
$ |
|
Change % |
|||||||||
For the year ended December 31, 2023 |
$ |
1,215.0 |
|
|
|
|
$ |
1,559.8 |
|
|
|
|
$ |
2,774.8 |
|
|
|
|||
Components of Change: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Existing businesses (organic sales growth)(2) |
|
23.0 |
|
|
1.9 |
% |
|
|
9.3 |
|
|
0.6 |
% |
|
|
32.3 |
|
|
1.2 |
% |
Acquisitions(3) |
|
14.3 |
|
|
1.2 |
% |
|
|
9.2 |
|
|
0.6 |
% |
|
|
23.5 |
|
|
0.8 |
% |
Foreign Currency translation(4) |
|
(75.5 |
) |
|
(6.2 |
)% |
|
|
(14.2 |
) |
|
(0.9 |
)% |
|
|
(89.7 |
) |
|
(3.2 |
)% |
Total sales (decline) growth |
|
(38.3 |
) |
|
(3.1 |
)% |
|
|
4.3 |
|
|
0.3 |
% |
|
|
(34.0 |
) |
|
(1.2 |
)% |
For the year ended December 31, 2024 |
$ |
1,176.7 |
|
|
|
|
$ |
1,564.1 |
|
|
|
|
$ |
2,740.8 |
|
|
|
|||
| __________ | |
(1) |
Numbers may not sum due to rounding. |
(2) |
Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume. |
(3) |
Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business. |
(4) |
Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates. |
|
Core Sales (Decline) Growth(1)(2) |
|||||||||||||||||||
|
|
|
EMEA & APAC |
|
ESAB |
|||||||||||||||
|
$ |
|
Change % |
|
$ |
|
Change % |
|
$ |
|
Change % |
|||||||||
For the year ended December 31, 2023 |
$ |
1,215.0 |
|
|
|
|
$ |
1,405.9 |
|
|
|
|
$ |
2,620.9 |
|
|
|
|||
Components of Change: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Existing businesses (core organic sales growth)(3) |
|
23.0 |
|
|
1.9 |
% |
|
|
1.6 |
|
|
0.1 |
% |
|
|
24.6 |
|
|
0.9 |
% |
Acquisitions(4) |
|
14.3 |
|
|
1.2 |
% |
|
|
9.2 |
|
|
0.7 |
% |
|
|
23.5 |
|
|
0.9 |
% |
Foreign Currency translation(5) |
|
(75.5 |
) |
|
(6.2 |
)% |
|
|
(2.4 |
) |
|
(0.2 |
)% |
|
|
(77.9 |
) |
|
(3.0 |
)% |
Total core sales (decline) growth |
|
(38.3 |
) |
|
(3.1 |
)% |
|
|
8.5 |
|
|
0.6 |
% |
|
|
(29.8 |
) |
|
(1.1 |
)% |
For the year ended December 31, 2024 |
$ |
1,176.7 |
|
|
|
|
$ |
1,414.4 |
|
|
|
|
$ |
2,591.2 |
|
|
|
|||
| __________ | |
(1) |
Numbers may not sum due to rounding. |
(2) |
Excludes |
(3) |
Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume. |
(4) |
Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business. |
(5) |
Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates. |
ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Adjusted Free Cash Flow Dollars in millions (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||
Net cash provided by operating activities (GAAP) |
$ |
126.9 |
|
|
$ |
122.4 |
|
|
$ |
355.4 |
|
|
$ |
330.5 |
|
Purchases of property, plant and equipment (GAAP) |
|
(24.7 |
) |
|
|
(19.3 |
) |
|
|
(51.8 |
) |
|
|
(48.2 |
) |
Proceeds from the sale of certain properties(1) |
|
— |
|
|
|
— |
|
|
|
1.9 |
|
|
|
2.8 |
|
Payments related to the Separation(2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4.4 |
|
Payments related to discontinued operations |
|
2.9 |
|
|
|
2.8 |
|
|
|
15.0 |
|
|
|
15.0 |
|
Adjusted free cash flow (non-GAAP) |
$ |
105.1 |
|
|
$ |
105.9 |
|
|
$ |
320.5 |
|
|
$ |
304.5 |
|
| __________ | |
(1) |
Includes proceeds from the sale of certain properties related to restructuring efforts for which previous cash outlays were included in Net cash provided by operating activities. |
(2) |
Payments relate to one-time non-recurring professional fees and employee costs incurred in the planning and execution of the Separation. |
ESAB CORPORATION 2025 Outlook Dollars in millions, except per share amounts (Unaudited) |
|||
|
|||
ESAB 2025 Outlook |
|||
2024 Core net sales |
|
$ |
2,591.2 |
Organic growth |
|
|
|
Acquisitions |
|
~ |
|
Currency |
|
~(3.5)% |
|
2025 Core net sales growth range |
|
(2.0)%- |
|
|
|
|
|
2024 Core adjusted EBITDA |
|
$ |
510.7 |
2025 Core adjusted EBITDA range |
|
|
|
|
|
|
|
2024 Core adjusted EPS |
|
$ |
5.06 |
2025 Core adjusted EPS range |
|
|
|
ESAB CORPORATION CONSOLIDATED BALANCE SHEETS Dollars in thousands, except per share amounts (Unaudited) |
|||||||
|
December 31, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
CURRENT ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
249,358 |
|
|
$ |
102,003 |
|
Trade receivables, less allowance for credit losses of |
|
370,321 |
|
|
|
385,198 |
|
Inventories, net |
|
403,711 |
|
|
|
392,858 |
|
Prepaid expenses |
|
55,665 |
|
|
|
61,771 |
|
Other current assets |
|
69,327 |
|
|
|
55,890 |
|
Total current assets |
|
1,148,382 |
|
|
|
997,720 |
|
Property, plant and equipment, net |
|
298,347 |
|
|
|
294,305 |
|
Goodwill |
|
1,651,993 |
|
|
|
1,588,331 |
|
Intangible assets, net |
|
487,993 |
|
|
|
499,535 |
|
Lease assets - right of use |
|
89,859 |
|
|
|
95,607 |
|
Other assets |
|
357,401 |
|
|
|
353,131 |
|
Total assets |
$ |
4,033,975 |
|
|
$ |
3,828,629 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
CURRENT LIABILITIES |
|
|
|
||||
Current portion of long-term debt |
$ |
15,000 |
|
|
$ |
— |
|
Accounts payable |
|
318,493 |
|
|
|
306,593 |
|
Accrued liabilities |
|
298,558 |
|
|
|
313,489 |
|
Total current liabilities |
|
632,051 |
|
|
|
620,082 |
|
Long-term debt |
|
1,060,739 |
|
|
|
1,018,057 |
|
Other liabilities |
|
532,936 |
|
|
|
542,833 |
|
Total liabilities |
|
2,225,726 |
|
|
|
2,180,972 |
|
Equity |
|
|
|
||||
Common stock - |
|
61 |
|
|
|
60 |
|
Additional paid-in capital |
|
1,901,337 |
|
|
|
1,881,054 |
|
Retained earnings |
|
597,180 |
|
|
|
350,557 |
|
Accumulated other comprehensive loss |
|
(729,574 |
) |
|
|
(624,272 |
) |
Total ESAB Corporation equity |
|
1,769,004 |
|
|
|
1,607,399 |
|
Noncontrolling interest |
|
39,245 |
|
|
|
40,258 |
|
Total equity |
|
1,808,249 |
|
|
|
1,647,657 |
|
Total liabilities and equity |
$ |
4,033,975 |
|
|
$ |
3,828,629 |
|
ESAB CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Dollars in thousands (Unaudited) |
|||||||
|
Year Ended |
||||||
|
December 31, 2024 |
|
December 31, 2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
270,748 |
|
|
$ |
211,024 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation, amortization and other impairment charges |
|
66,790 |
|
|
|
75,034 |
|
Stock-based compensation expense |
|
19,780 |
|
|
|
16,122 |
|
Deferred income tax |
|
(2,601 |
) |
|
|
(25,408 |
) |
Non-cash interest expense |
|
2,886 |
|
|
|
1,195 |
|
Pension settlement loss |
|
12,155 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Trade receivables, net |
|
(4,848 |
) |
|
|
(6,006 |
) |
Inventories, net |
|
(22,495 |
) |
|
|
17,958 |
|
Accounts payable |
|
31,861 |
|
|
|
(19,819 |
) |
Other operating assets and liabilities |
|
(18,877 |
) |
|
|
60,394 |
|
Net cash provided by operating activities |
|
355,399 |
|
|
|
330,494 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property, plant and equipment |
|
(51,779 |
) |
|
|
(48,178 |
) |
Proceeds from sale of property, plant and equipment |
|
3,805 |
|
|
|
4,600 |
|
Acquisitions, net of cash received |
|
(153,664 |
) |
|
|
(18,665 |
) |
Other investing |
|
(4,058 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(205,696 |
) |
|
|
(62,243 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from borrowings on Senior Notes |
|
700,000 |
|
|
|
— |
|
Proceeds from borrowings on revolving credit facility and other |
|
205,000 |
|
|
|
574,150 |
|
Repayments of borrowings on Term Loans |
|
(602,500 |
) |
|
|
(12,500 |
) |
Repayments of borrowings on revolving credit facility and other |
|
(237,005 |
) |
|
|
(763,173 |
) |
Payment of debt issuance costs and other |
|
(13,156 |
) |
|
|
(972 |
) |
Payment of dividends |
|
(16,992 |
) |
|
|
(13,342 |
) |
Distributions to noncontrolling interest holders |
|
(3,678 |
) |
|
|
(3,880 |
) |
Net cash provided by (used in) financing activities |
|
31,669 |
|
|
|
(219,717 |
) |
Effect of foreign exchange rates on Cash and cash equivalents |
|
(34,017 |
) |
|
|
(18,555 |
) |
Increase in Cash and cash equivalents |
|
147,355 |
|
|
|
29,979 |
|
Cash and cash equivalents, beginning of period |
|
102,003 |
|
|
|
72,024 |
|
Cash and cash equivalents, end of period |
$ |
249,358 |
|
|
$ |
102,003 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250220883772/en/
Investor Relations Contact:
Mark Barbalato
Vice President, Investor Relations
E-mail: investorrelations@esab.com
Phone: 1-301-323-9098
Media Contact:
Tilea Coleman
Vice President, Corporate Communications
E-mail: mediarelations@esab.com
Phone: 1-301-323-9092
Source: ESAB Corporation
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