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Sep 29, 2023

ESAB Q3 2023 Earnings Report

ESAB achieved record sales and margin performance, driven by organic growth and effective cost management.

Key Takeaways

ESAB Corporation reported record third-quarter results, with a 10% increase in sales and a 7% core organic growth. The company's operating income was $101 million, and the core adjusted EBITDA rose by 23% to $118 million. Based on the strong year-to-date performance, ESAB has raised its full-year 2023 outlook.

Record third quarter sales and margin performance achieved.

Sales increased by 10%, with core organic growth of 7%.

Operating income reported at $101 million, and core adjusted EBITDA increased by 23% year-over-year.

Full-year 2023 outlook was raised due to strong year-to-date results and continued momentum.

Total Revenue
$681M
Previous year: $620M
+9.8%
EPS
$1.08
Previous year: $0.92
+17.4%
Total Core Sales Growth
7%
Previous year: 10%
-30.0%
Gross Profit
$250M
Previous year: $209M
+19.3%
Cash and Equivalents
$82.8M
Previous year: $60.6M
+36.6%
Free Cash Flow
$95.5M
Previous year: $71.2M
+34.1%
Total Assets
$3.76B
Previous year: $3.54B
+6.1%

ESAB

ESAB

ESAB Revenue by Geographic Location

Forward Guidance

ESAB raised its full year 2023 outlook and expects total core sales growth of 6.5% to 7.5%, core organic sales growth of 5.0% to 6.0%, core adjusted EBITDA of $465 to $475 million, and core adjusted EPS of $4.30 to $4.40.

Positive Outlook

  • Total core sales growth expected between 6.5% and 7.5%.
  • Core organic sales growth projected to be 5.0% to 6.0%.
  • Core adjusted EBITDA anticipated to be in the range of $465 to $475 million.
  • Core adjusted EPS expected to be between $4.30 and $4.40.
  • Raised from prior guidance

Revenue & Expenses

Visualization of income flow from segment revenue to net income