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Mar 31, 2023

ESAB Q1 2023 Earnings Report

ESAB Corporation's Q1 2023 financial performance was marked by sales growth and increased profitability.

Key Takeaways

ESAB Corporation reported a 6% increase in sales, driven by a 7% core organic growth in Q1 2023. The company's net income was $33 million, with core adjusted EBITDA rising by 12% to $113 million. ESAB raised its full-year 2023 outlook, expecting continued growth and profitability.

Sales increased by 6% with a core organic growth of 7%.

Net income from continuing operations attributable to ESAB was $33 million.

Core adjusted EBITDA increased by 12% to $113 million, with margins expanding by 80 basis points to 17.4%.

Full year 2023 outlook was raised due to strong Q1 performance and resilient end markets.

Total Revenue
$684M
Previous year: $648M
+5.6%
EPS
$1.1
Previous year: $1.17
-6.0%
Total Core Sales Growth
7.2%
Previous year: 18%
-60.0%
Gross Profit
$247M
Previous year: $224M
+10.3%
Cash and Equivalents
$82.1M
Previous year: $56.6M
+44.9%
Free Cash Flow
$30.4M
Previous year: $10.2M
+198.0%
Total Assets
$3.85B
Previous year: $3.78B
+1.8%

ESAB

ESAB

ESAB Revenue by Geographic Location

Forward Guidance

ESAB raised its full year 2023 outlook and expects core organic sales growth of 3.5% to 5.5%, total core sales growth of 4.0% to 6.0%, core adjusted EBITDA of $430 to $450 million, and core adjusted EPS of $3.85 to $4.05.

Positive Outlook

  • Core organic sales growth expected between 3.5% and 5.5%.
  • Total core sales growth projected to be between 4.0% and 6.0%.
  • Core adjusted EBITDA anticipated in the range of $430 to $450 million.
  • Core adjusted EPS expected to be between $3.85 and $4.05.
  • Previous guidance was raised.

Challenges Ahead

  • Macroeconomic conditions
  • Supply chain disruptions
  • War in Ukraine
  • Geopolitical tensions
  • Fluctuations in foreign exchange rates

Revenue & Expenses

Visualization of income flow from segment revenue to net income