ESAB Corporation ( (ESAB) ) has released its Q4 earnings. Here is a breakdown of the information ESAB Corporation presented to its investors.
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ESAB Corporation is a premier industrial compounder known for its innovative products and solutions in the light-industrial automation sector, headquartered in North Bethesda, Maryland, serving approximately 150 countries.
In its latest earnings report, ESAB Corporation announced robust financial results for the fourth quarter of 2024, with highlights including high-single-digit growth in welding equipment and a record margin performance driven by the company’s EBX initiatives. The company also completed the acquisition of SUMIG and signed an agreement to acquire Bavaria, further strengthening its global presence.
ESAB reported flat core organic growth for the quarter, with sales reaching $671 million, reflecting a 3% decrease on a reported basis due to acquisitions and currency fluctuations. Net income from continuing operations was $72 million, or $1.18 per diluted share, with core adjusted EBITDA rising by 2% to $129 million, expanding margins by 90 basis points to 20.3%. The acquisition of SUMIG, a South American light automation business, and the forthcoming acquisition of Bavaria Schweisstechnik GmbH, are strategic moves to expand its market reach and enhance its product offerings.
Looking ahead to 2025, ESAB expects core organic growth between 0.0% and 2.0%, with total core sales potentially declining by 2.0% due to currency headwinds. The company aims for a core adjusted EBITDA of $515 million to $530 million and core adjusted earnings per share of $5.10 to $5.25, reflecting its strategic focus on long-term shareholder value amid challenging market conditions.
In conclusion, ESAB’s management remains optimistic about achieving its 2028 goals, emphasizing a commitment to innovation and efficiency as they continue to expand their global footprint and strengthen their market position in the industrial sector.
