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Dec 31, 2022

ESAB Q4 2022 Earnings Report

Achieved strong financial results with increased sales and core organic growth

Key Takeaways

ESAB Corporation reported a 6% increase in fourth-quarter sales, reaching $664 million, with an 11% core organic growth. The company's GAAP net income was $59 million, with diluted earnings per share at $0.97. Core adjusted EBITDA rose by 10% to $107 million.

Diluted EPS from continuing operations reached $0.97, and core adjusted diluted EPS was $1.05.

Sales increased by 6%, with core organic growth of 11%.

Net income from continuing operations attributable to ESAB was $59 million.

Core adjusted EBITDA increased by 10% to $107 million compared to the prior year.

Total Revenue
$664M
Previous year: $624M
+6.4%
EPS
$1.05
Previous year: $0.66
+59.1%
Total Core Sales Growth
11%
Gross Profit
$224M
Previous year: $213M
+5.4%
Cash and Equivalents
$72M
Previous year: $41.2M
+74.8%
Free Cash Flow
$73.2M
Previous year: $41.9M
+74.6%
Total Assets
$3.75B
Previous year: $3.46B
+8.5%

ESAB

ESAB

ESAB Revenue by Geographic Location

Forward Guidance

ESAB expects core organic growth of 3% to 5% and total core sales growth of 2% to 4% in 2023. Core adjusted EBITDA is projected to be between $420 to $440 million, with core adjusted EPS ranging from $3.80 to $4.00 and cash conversion greater than 90%.

Positive Outlook

  • Core organic growth of 3% to 5% expected.
  • Total core sales growth of 2% to 4% expected.
  • Approximately 2.5% growth from acquisitions.
  • Core adjusted EBITDA of $420 to $440 million expected.
  • Cash conversion of greater than 90% expected.

Challenges Ahead

  • Approximately (3.5)% from currency headwinds.
  • No other negatives were mentioned in the provided text.
  • No other negatives were mentioned in the provided text.
  • No other negatives were mentioned in the provided text.
  • No other negatives were mentioned in the provided text.

Revenue & Expenses

Visualization of income flow from segment revenue to net income