NYSE$ESAB

ESAB Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

ESAB achieved record sales and margin performance, driven by strategic vision and operational efficiency.

ESAB Corporation reported record financial results for the second quarter of 2023, with sales up 9% and core organic growth of 6%. Net income from continuing operations attributable to ESAB was $67 million, and core adjusted EBITDA rose 20% to $127 million. The company raised its full-year 2023 outlook due to strong first-half performance and confidence in its long-term strategy.

  • Sales increased by 9% with a core organic growth of 6%.
  • Net income from continuing operations attributable to ESAB was $67 million.
  • Core adjusted EBITDA increased by 20% to $127 million.
  • Full-year 2023 outlook was raised.

Headline financials

Total Revenue

$720M

Previous: $661M+9.0%
EPS (adj)

$1.28

Previous: $1.14+12.3%
Total Core Sales Growth

7.7%

Previous: 9.0%-14.4%
Capital Expenditures

-$17M

Previous: -$13.7M-24.2%
Free Cash Flow

$48.6M

Previous: $41.6M+16.9%
Net Income

$65.6M

Previous: $55.2M+18.7%
Operating Income

$109M

Previous: $85.9M+26.5%
Gross Profit

$264M

Previous: $227M+16.0%
Cash & Equivalents

$74.4M

Previous: $53.5M+39.2%
Total Assets

$3.86B

Previous: $3.67B+5.1%
Stock-Based Comp

$4.47M

Previous: $3.63M+23.2%

Revenue & EPS history

ESAB · Revenue · Quarterly

$720M

Q2 2023+9%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

ESAB raised its full year 2023 outlook and expects total core sales growth of 6.0% to 7.5%, core organic sales growth of 4.0% to 5.5%, core adjusted EBITDA of $450 to $465 million, and core adjusted EPS of $4.10 to $4.30.

Tailwinds

  • Total core sales growth is expected to be 6.0% to 7.5%.
  • Core organic sales growth is projected to be 4.0% to 5.5%.
  • Core adjusted EBITDA is anticipated to be between $450 to $465 million.
  • Core adjusted EPS is forecasted to be $4.10 to $4.30.
  • The raised outlook reflects confidence in the company's long-term strategy.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.6%

Avg return

Earnings day

+4.0%

Avg return

5 days after

+3.6%

Avg return

30 days after

52%

11 / 21 earnings

Positive

+14.2%

Q3 2023

Best reaction

-5.7%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-7.3%-13.4%
Q4 2025-1.5%-4.5%-27.9%
Q3 2025-5.7%-5.0%-7.3%
Q1 2025-1.6%+1.8%+2.4%
Q4 2024-4.0%-1.3%-4.9%
Q3 2024+12.6%+10.8%+15.1%
Q2 2024-5.5%-5.3%+6.9%
Q1 2024-2.2%+1.6%-2.9%
Q4 2023+2.0%+2.0%+13.9%
Q3 2023+14.2%+18.5%+24.9%
Q2 2023+4.4%+3.6%+5.1%
Q1 2023+3.3%+4.5%+4.5%
Q4 2022+3.1%+0.4%-6.4%
Q3 2022+9.1%+11.9%+31.8%
Q3 2021+9.1%+11.9%+31.8%
Q2 2022+0.2%+2.5%-9.0%
Q2 2021+0.2%+2.5%-9.0%
Q1 2022-1.5%+8.9%+5.0%
Q4 2021-1.5%+8.9%+5.0%
Q4 2020-1.5%+8.9%+5.0%
Q1 2021-1.5%+8.9%+5.0%

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