ESAB Corporation Announces Third Quarter 2025 Results

NORTH BETHESDA, Md.--( BUSINESS WIRE)--ESAB Corporation (“ESAB” or the “Company”) (NYSE: ESAB), a focused premier industrial compounder, today announced financial results for the third quarter of 2025.

ESAB reported third quarter sales of $728 million, an increase of 8% on a reported basis or an increase of 2% on a core organic growth basis before acquisitions and currency translation, as compared to the prior year. ESAB also reported third quarter net income from continuing operations attributable to ESAB of $64 million or $1.04 diluted earnings per share and core adjusted net income of $81 million or $1.32 diluted earnings per share. Core adjusted EBITDA of $133 million rose 7% and margin decreased by 20 basis points to 19.4%, both as compared to the prior year quarter.

“ESAB delivered a strong quarter on robust execution, with growth in our Equipment and Automation portfolio and from recent acquisitions. Our U.S. business returned to mid-single-digit growth as tariff uncertainties abated, and our EMEA and APAC businesses continued to see strong demand from high-growth markets,” said Shyam P. Kambeyanda, ESAB President and CEO.

Kambeyanda continued, “Our M&A compounding strategy is accelerating with the completion of the EWM acquisition, which completes our heavy equipment and automation portfolio and provides ESAB access to its leading React technology. Our integration team is advancing cross-selling initiatives and EBX-driven margin-expansion opportunities, and we continue to invest for long-term, sustainable growth. Following our third-quarter performance, we are raising full-year sales and aEBITDA guidance and launching new initiatives to accelerate growth and margins as we exit the year.”

Full Year 2025 Outlook

ESAB raises its full year 2025 outlook for total core sales growth of 4.5% to 5.5%, core organic sales growth of 1.0%, M&A of ~4.5% and FX of (1.0)% to 0.0% from its prior outlook of total core sales growth of 1.5% to 3.5%, core organic sales growth of 0.0% to 2.0%, M&A of ~2.5% and FX of ~(1.0)%. ESAB’s core adjusted EBITDA outlook increases to $535 to $540 million versus prior guidance of $525 to $535 million, and core adjusted EPS narrowed to $5.20 to $5.30 versus prior guidance of $5.15 to $5.30.

About ESAB Corporation

Founded in 1904, ESAB Corporation is a focused industrial compounder. The Company’s rich history of innovative products, workflow solutions and its business system ESAB Business Excellence (“EBX”), enables the Company’s purpose of Shaping the world we imagine TM. ESAB Corporation is based in North Bethesda, Maryland and employs approximately 10,300 associates and serves customers in approximately 150 countries. To learn more, visit www.ESABcorporation.com.

Conference Call and Webcast

The Company will hold a conference call to discuss its third quarter 2025 results beginning at 8:00 a.m. Eastern on Wednesday, October 29, 2025, which will be open to the public by calling +1-888-550-5302 (U.S. callers) and +1-646-960-0685 (International callers) and referencing the conference ID number 4669992 and through webcast via ESAB’s website www.ESABcorporation.com under the “Investors” section. Access to a supplemental slide presentation can also be found on ESAB's website under the same heading. Both the audio of this call and the slide presentation will be archived on the website later today and will be available until the next quarterly call. The Company’s quarterly report on Form 10-Q for the fiscal quarter ended October 3, 2025, filed October 29, 2025, is also available on ESAB’s website under the “Investors” section.

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 the United States (“non-GAAP”). ESAB presents some of these non-GAAP financial measures including and excluding Russia due to economic and political volatility caused by the war in Ukraine, which results in enhanced investor interest in this information. Core non-GAAP financial measures exclude Russia for the three and nine months ended October 3, 2025 and September 27, 2024. These non-GAAP financial measures may include one or more of the following: adjusted net income from continuing operations, Core adjusted net income from continuing operations, adjusted EBITDA (earnings before interest, taxes, Pension settlement loss, Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value charges on acquired inventories and depreciation and other amortization), Core adjusted EBITDA, organic sales, Core organic sales, adjusted free cash flow and ratios based on the foregoing measures. ESAB also provides adjusted EBITDA and adjusted EBITDA margin on a segment basis, as well as Core adjusted EBITDA and Core adjusted EBITDA margin on a segment basis.

Adjusted net income from continuing operations represents Net income from continuing operations attributable to ESAB Corporation, excluding Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value charges on acquired inventories 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 share - diluted 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 Russia for the three and nine months ended October 3, 2025 and September 27, 2024.

Adjusted EBITDA excludes from Net income from continuing operations the effect of Income tax expense, Interest expense and other, net, Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value charges on acquired inventories, Pension settlement loss 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 transaction, due diligence and integration expenses, amortization of intangibles and fair value charges on acquired inventories, Pension settlement loss 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 Russia for the three and nine months ended October 3, 2025 and September 27, 2024.

ESAB presents organic sales, which excludes the impact of acquisitions and foreign exchange rate fluctuations and presents core organic sales, which further excludes the impact of the Russia business for the three and nine months ended October 3, 2025 and September 27, 2024.

Adjusted free cash flow represents cash flows from operating activities excluding cash outflows related to discontinued operations and acquisition-related payments less Purchases of property, plant and equipment.

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 U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning the Company’s plans, goals, objectives, outlook, expectations, and intentions, and other statements that are not historical or current fact. Forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including general risks and uncertainties such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health concerns, natural disasters or other disruptions of expected business conditions. Factors that could cause the Company’s results to differ materially from current expectations include, but are not limited to, risks related to the impact of the war in Ukraine and the conflict in the Middle East and the resulting escalating geopolitical tensions; impact of supply chain disruptions; the impact of creditworthiness and financial viability of customers; impact of inflationary pressures, tariffs and trade policies, foreign exchange fluctuations and commodity prices; other impacts on the Company’s business and ability to execute business continuity plans; and the other factors detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (“SEC”) on February 20, 2025, and the Form 10-Q for the quarterly period ended April 4, 2025 filed with the SEC on May 1, 2025, as well as other risks discussed in the Company’s filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. The Company disclaims any duty to update the information herein.

ESAB CORPORATION

CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS

Dollars in thousands, except per share data

(Unaudited)

Three Months Ended

Nine Months Ended

October 3, 2025

September 27, 2024

October 3, 2025

September 27, 2024

Net sales

727,845

673,250

2,121,569

2,070,047

Cost of sales

458,545

419,460

1,331,020

1,290,915

Gross profit

269,300

253,790

790,549

779,132

Selling, general and administrative expense

158,335

145,900

454,756

434,537

Restructuring and other related charges

4,347

1,875

10,236

8,572

Operating income

106,618

106,015

325,557

336,023

Pension settlement loss

—

12,155

Interest expense and other, net

23,584

16,894

61,365

49,925

Income from continuing operations before income taxes

83,034

89,121

264,192

273,943

Income tax expense

17,694

18,074

56,476

54,463

Net income from continuing operations

65,340

71,047

207,716

219,480

Loss from discontinued operations, net of taxes

(8,819

)

(1,214

)

(13,259

)

(3,684

)

Net income

56,521

69,833

194,457

215,796

Income attributable to noncontrolling interest, net of taxes

(1,674

)

(1,593

)

(5,364

)

(4,698

)

Net income attributable to ESAB Corporation

54,847

68,240

189,093

211,098

Earnings (loss) per share – basic

Income from continuing operations

1.05

1.14

3.33

3.54

Loss on discontinued operations

(0.15

)

(0.02

)

(0.22

)

(0.06

)

Net income per share – basic

0.90

1.12

3.11

3.48

Earnings (loss) per share – diluted

Income from continuing operations

1.04

1.13

3.29

3.50

Loss on discontinued operations

(0.14

)

(0.02

)

(0.22

)

(0.06

)

Net income per share – diluted

0.90

1.11

3.07

3.44

ESAB CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Dollars in millions, except per share data

(Unaudited)

Three Months Ended (1)

Nine Months Ended (1)

October 3, 2025

September 27, 2024

October 3, 2025

September 27, 2024

Adjusted Net Income

Net income from continuing operations (GAAP)

65.3

71.0

207.7

219.5

Less: Income attributable to noncontrolling interest, net of taxes

1.7

1.6

5.4

4.7

Net income from continuing operations attributable to ESAB Corporation (GAAP)

63.7

69.4

202.4

214.8

Restructuring and other related charges – pretax (2)

4.3

1.9

10.2

8.6

Acquisition-amortization and other related charges – pretax (3)

16.5

10.1

47.7

25.6

Pension settlement loss – pretax

—

12.2

Tax effect on above items (4)

(3.6

)

(2.8

)

(12.4

)

(11.3

)

Discrete tax adjustments (5)

2.3

0.1

2.3

(6.5

)

Adjusted net income from continuing operations (non-GAAP)

83.2

78.6

250.2

243.3

Adjusted net income from continuing operations attributable to Russia (non-GAAP) (6)

(2.7

)

(1.9

)

(8.7

)

(11.3

)

Core adjusted net income from continuing operations (non-GAAP)

80.5

76.7

241.5

232.0

Adjusted net income margin from continuing operations

11.4

11.7

11.8

Adjusted Net Income Per Share

Net income per share – diluted from continuing operations (GAAP)

1.04

1.13

3.29

3.50

Restructuring and other related charges – pretax (2)

0.07

0.03

0.17

0.14

Acquisition-amortization and other related charges – pretax (3)

0.27

0.16

0.78

0.42

Pension settlement loss – pretax

—

0.20

Tax effect on above items (4)

(0.06

)

(0.05

)

(0.20

)

(0.19

)

Discrete tax adjustments (5)

0.04

—

0.04

(0.11

)

Adjusted net income per share – diluted from continuing operations (non-GAAP)

1.36

1.28

4.08

3.96

Adjusted net income per share – diluted from continuing operations attributable to Russia (non-GAAP) (6)

(0.04

)

(0.03

)

(0.14

)

(0.19

)

Core adjusted net income per share – diluted from continuing operations (non-GAAP)

1.32

1.25

3.94

3.78

(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, diligence and integration expenses totaling $6.1 million and $20.4 million for the three and nine months ended October 3, 2025, respectively, and $2.5 million and $3.1 million for the three and nine months ended September 27, 2024, respectively. Additionally, it includes amortization of intangibles and fair value charges on acquired inventories totaling $10.3 million and $27.3 million for the three and nine months ended October 3, 2025, respectively, and $7.6 million and $22.4 million for the three and nine months ended September 27, 2024, respectively.

(4)

This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. ESAB estimates the tax effect of each adjustment 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)

For 2025, discrete adjustments relate to a tax law change in a foreign jurisdiction that occurred during the three months ended October 3, 2025. For 2024, discrete adjustments relate to a favorable final ruling in a tax case in a foreign jurisdiction.

(6)

Represents Russia contribution for the three and nine months ended October 3, 2025 and September 27, 2024.

ESAB CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Dollars in millions

(Unaudited)

Three Months Ended October 3, 2025 (1)

Nine Months Ended October 3, 2025 (1)

Americas

EMEA & APAC

Total

Americas

EMEA & APAC

Total

Net income from continuing operations (GAAP)

65.3

207.7

Income tax expense

17.7

56.5

Interest expense and other, net

23.6

61.4

Operating income (GAAP)

45.3

61.3

106.6

131.0

194.6

325.6

Adjusted to add

Restructuring and other related charges (2)

2.2

2.1

4.3

4.4

5.8

10.2

Acquisition-amortization and other related charges (3)

5.8

10.7

16.5

21.5

26.2

47.7

Depreciation and other amortization

3.9

8.1

12.0

11.7

21.8

33.4

Adjusted EBITDA (non-GAAP)

57.3

82.2

139.5

168.5

248.4

416.9

Adjusted EBITDA attributable to Russia (non-GAAP) (4)

—

6.1

—

17.1

Core adjusted EBITDA (non-GAAP)

57.3

76.1

133.4

168.5

231.2

399.8

Adjusted EBITDA margin (non-GAAP)

19.6

18.9

19.2

19.7

19.6

19.7

Core adjusted EBITDA margin (non-GAAP) (5)

19.6

19.3

19.4

19.7

20.0

19.9

__________

(1)

Numbers may not sum due to rounding.

(2)

(3)

Includes transaction, diligence and integration expenses totaling $6.1 million and $20.4 million for the three and nine months ended October 3, 2025, respectively, and amortization of intangibles and fair value charges on acquired inventories totaling $10.3 million and $27.3 million for the three and nine months ended October 3, 2025, respectively.

(4)

Numbers calculated following the same definition as Adjusted EBITDA for total Company.

(5)

Net sales were $40.4 million and $108.8 million relating to Russia for the three and nine months ended October 3, 2025, respectively.

ESAB CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Dollars in millions

(Unaudited)

Three Months Ended September 27, 2024 (1)

Nine Months Ended September 27, 2024 (1)

Americas

EMEA & APAC

Total

Americas

EMEA & APAC

Total

Net income from continuing operations (GAAP)

71.0

219.5

Income tax expense

18.1

54.5

Interest expense and other, net

16.9

49.9

Pension settlement loss

—

12.2

Operating income (GAAP)

49.9

56.1

106.0

151.8

184.3

336.0

Adjusted to add

Restructuring and other related charges (2)

0.9

1.0

1.9

2.0

6.6

8.6

Acquisition-amortization and other related charges (3)

4.8

5.2

10.1

13.5

12.1

25.6

Depreciation and other amortization

3.7

5.7

9.5

10.9

16.5

27.4

Adjusted EBITDA (non-GAAP)

59.4

68.1

127.4

178.2

219.4

397.5

Adjusted EBITDA attributable to Russia (non-GAAP) (4)

—

2.6

—

15.5

Core adjusted EBITDA (non-GAAP)

59.4

65.5

124.8

178.2

203.9

382.1

Adjusted EBITDA margin (non-GAAP)

20.6

17.7

18.9

19.9

18.7

19.2

Core adjusted EBITDA margin (non-GAAP) (5)

20.6

18.9

19.6

19.9

19.2

19.5

(1)

Numbers may not sum due to rounding.

(2)

(3)

Includes transaction, diligence and integration expenses totaling $2.5 million and $3.1 million for the three and nine months ended September 27, 2024, respectively, and amortization of intangibles and fair value charges on acquired inventories totaling $7.6 million and $22.4 million for the three and nine months ended September 27, 2024, respectively.

(4)

Numbers calculated following the same definition as Adjusted EBITDA for total Company.

(5)

Net sales were $37.7 million and $112.0 million relating to Russia for the three and nine months ended September 27, 2024, respectively.

ESAB CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Change in Sales

Dollars in millions

(Unaudited)

Sales (1)

Americas

EMEA & APAC

Total ESAB

Change %

For the three months ended September 27, 2024

288.8

384.4

673.3

Components of Change:

Existing businesses (organic sales) (2)

0.4

0.1

10.6

2.8

11.0

1.6

Acquisitions (3)

7.4

2.6

26.4

6.9

33.8

5.0

Foreign Currency translation (4)

(3.9

)

(1.4

13.7

3.6

9.8

1.5

Total sales growth

3.9

1.4

50.7

13.2

54.6

8.1

For the three months ended October 3, 2025

292.7

435.1

727.8

(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 (1)(5)

Americas

EMEA & APAC

ESAB

Change %

For the three months ended September 27, 2024

288.8

346.8

635.6

Components of Change:

Existing businesses (core organic sales) (2)

0.4

0.1

11.8

3.4

12.1

1.9

Acquisitions (3)

7.4

2.6

26.4

7.6

33.8

5.3

Foreign Currency translation (4)

(3.9

)

(1.4

9.7

2.8

5.9

0.9

Total core sales growth

3.9

1.4

47.9

13.8

51.8

8.1

For the three months ended October 3, 2025

292.7

394.7

687.4

(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.

(5)

Represents sales excluding Russia for the three months ended October 3, 2025 and September 27, 2024.

ESAB CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Change in Sales

Dollars in millions

(Unaudited)

Sales Growth (1)

Americas

EMEA & APAC

Total ESAB

Change %

For the nine months ended September 27, 2024

894.6

1,175.4

2,070.0

Components of Change:

Existing businesses (organic sales) (2)

(29.1

)

(3.2

23.3

2.0

(5.8

)

(0.3

Acquisitions (3)

25.2

2.8

44.3

3.8

69.5

3.4

Foreign Currency translation (4)

(34.6

)

(3.9

22.4

1.9

(12.3

)

(0.6

Total sales (decline) growth

(38.5

)

(4.3

90.0

7.7

51.5

2.5

For the nine months ended October 3, 2025

856.1

1,265.4

2,121.6

(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 Growth (4)

Americas

EMEA & APAC

ESAB

Change %

For the nine months ended September 27, 2024

894.6

1,063.4

1,958.0

Components of Change:

Existing businesses (core organic sales) (1)

(29.1

)

(3.2

35.7

3.4

6.6

0.3

Acquisitions (2)

25.2

2.8

44.3

4.2

69.5

3.6

Foreign Currency translation (3)

(34.6

)

(3.9

13.2

1.2

(21.4

)

(1.1

Total core sales (decline) growth

(38.5

)

(4.3

93.2

8.8

54.7

2.8

For the nine months ended October 3, 2025

856.1

1,156.6

2,012.7

(1)

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.

(2)

Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.

(3)

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.

(4)

Represents sales excluding Russia for the nine months ended October 3, 2025 and September 27, 2024.

ESAB CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Adjusted Free Cash Flow

Dollars in millions

(Unaudited)

Three Months Ended

Nine Months Ended

October 3,

2025

September 27,

2024

October 3,

2025

September 27,

2024

Net cash provided by operating activities (GAAP)

81.5

101.0

163.5

228.5

Purchases of property, plant and equipment (GAAP)

(11.3

)

(10.7

)

(27.7

)

(27.1

)

Proceeds from the sale of certain properties (1)

—

1.9

—

1.9

Payments related to discontinued operations

3.6

10.8

12.1

Acquisition-related payments (2)

12.6

—

16.6

—

Adjusted free cash flow (non-GAAP)

86.4

95.8

163.2

215.4

(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)

Represents payments related to due diligence, transaction and other related costs.

ESAB CORPORATION

2025 Outlook

Dollars in millions, except per share amounts

(Unaudited)

ESAB 2025 Outlook

Previous Guidance

New Guidance

2024 Core net sales

2,591.2

Organic growth

0.0%-2.0%

~1.0%

Acquisitions

~2.5%

~4.5%

Currency

~(1.0)%

(1.0)%-0.0%

2025 Core net sales growth range

1.5%-3.5%

4.5%-5.5%

2024 Core adjusted EBITDA

510.7

2025 Core adjusted EBITDA range

$525 - $535

$535 - $540

2024 Core adjusted EPS

5.06

2025 Core adjusted EPS range

$5.15 - $5.30

$5.20 - $5.30

ESAB CORPORATION

CONSOLIDATED AND CONDENSED BALANCE SHEETS

Dollars in thousands, except share and per share amounts

(Unaudited)

October 3, 2025

December 31, 2024

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

218,219

249,358

Trade receivables, less allowance for credit losses of $23,557 and $23,850

460,469

370,321

Inventories, net

503,722

403,711

Prepaid expenses

64,291

55,665

Other current assets

87,020

69,327

Total current assets

1,333,721

1,148,382

Property, plant and equipment, net

357,927

298,347

Goodwill

1,962,752

1,651,993

Intangible assets, net

684,439

487,993

Lease assets - right of use

133,751

89,859

Other assets

396,813

357,401

Total assets

4,869,403

4,033,975

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Current portion of debt

2,175

15,000

Accounts payable

342,214

318,493

Accrued liabilities

324,685

298,558

Total current liabilities

669,074

632,051

Long-term debt

1,334,123

1,060,739

Other liabilities

704,179

532,936

Total liabilities

2,707,376

2,225,726

Equity:

Common stock - $0.001 par value - 600,000,000 shares authorized, 60,709,740 and 60,517,574 shares outstanding as of October 3, 2025 and December 31, 2024, respectively

Additional paid-in capital

1,900,871

1,901,337

Retained earnings

769,226

597,180

Accumulated other comprehensive loss

(554,210

)

(729,574

)

Total ESAB Corporation equity

2,115,948

1,769,004

Noncontrolling interest

46,079

39,245

Total equity

2,162,027

1,808,249

Total liabilities and equity

4,869,403

4,033,975

ESAB CORPORATION

CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS

Dollars in thousands

(Unaudited)

Nine Months Ended

October 3, 2025

September 27, 2024

Cash flows from operating activities:

Net income

194,457

215,796

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and other impairment charges

58,731

50,028

Net gain on sale of property, plant and equipment

(5,697

)

(1,060

)

Stock-based compensation expense

12,542

14,473

Deferred income tax (benefit) expense

(7,707

)

2,394

Non-cash interest expense

1,882

2,259

Pension settlement loss

—

12,155

Changes in operating assets and liabilities:

Trade receivables, net

(50,381

)

(39,075

)

Inventories, net

(28,924

)

(31,651

)

Accounts payable

(9,893

)

16,895

Other operating assets and liabilities

(1,496

)

(13,691

)

Net cash provided by operating activities

163,514

228,523

Cash flows from investing activities:

Purchases of property, plant and equipment

(27,654

)

(27,071

)

Proceeds from sale of property, plant and equipment

4,731

3,452

Acquisitions, net of cash received

(439,669

)

(86,537

)

Other investing

539

(4,058

)

Net cash used in investing activities

(462,053

)

(114,214

)

Cash flows from financing activities:

Proceeds from borrowings on Senior Notes

—

700,000

Proceeds from borrowings on revolving credit facilities and other

359,591

205,000

Repayments of borrowings on Term Loans

(10,000

)

(597,500

)

Repayments of borrowings on revolving credit facilities and other

(90,442

)

(236,623

)

Payment of debt issuance costs

—

(10,423

)

Payment of dividends

(15,821

)

(12,135

)

Distributions to noncontrolling interest holders

(3,057

)

(2,644

)

Other financing

(13,008

)

(5,099

)

Net cash provided by financing activities

227,263

40,576

Effect of foreign exchange rates on Cash and cash equivalents

40,137

(3,218

)

(Decrease) increase in Cash and cash equivalents

(31,139

)

151,667

Cash and cash equivalents, beginning of period

249,358

102,003

Cash and cash equivalents, end of period

218,219

253,670