ESAB Corporation · Q2 2024 earnings

Briefing

ESAB's Q2 2024 performance was marked by positive core organic growth and record margin and free cash flow driven by EBX, alongside the completion of the Linde Bangladesh welding business acquisition.

ESAB Corporation reported second quarter sales of $707 million, a decrease of 2% on a reported basis but an increase of 1% on a core organic growth basis. The company reported net income of $84 million, or $1.37 diluted earnings per share, and core adjusted EBITDA of $134 million, up 6% with margins expanding 150 basis points to 20.1%.

• ESAB team continues to execute well in a challenging business environment.
• Benefiting from exposure to high-growth markets, such as India and the Middle East.
• Strategy to improve mix and focus on less cyclical end markets.
• Acquisition of the welding business of Linde Bangladesh cements position as the leading Fabtech company in the fast-growing region.

Headline financials

Revenue & EPS history

ESAB now expects total core sales growth of (2.5)% to (0.5)%, flat core organic sales growth, M&A of 1.0% and FX of ~(2.5)% from prior guidance of total core sales growth of 1.5% to 3.5%, core organic sales growth of 2.5% to 4.5%, M&A of 0.5%, and FX of ~(1.5)%. ESAB updated its estimated core adjusted EBITDA range to $495 to $515 million, from prior guidance of core adjusted EBITDA range of $500 to $520 million and core adjusted EPS of $4.75 to $4.95 remains the same.