NYSE$ESAB

ESAB Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$681M

Previous: $620M+9.8%
EPS (adj)

$1.08

Previous: $0.92+17.4%
Total Core Sales Growth

7.0%

Previous: 10.0%-30.0%
Capital Expenditures

-$28.9M

Previous: -$22M-31.2%
Free Cash Flow

$28.7M

Previous: $30.4M-5.4%
Net Income

$57.6M

Previous: $52.4M+10.0%
Operating Income

$101M

Previous: $81M+24.9%
Gross Profit

$250M

Previous: $209M+19.3%
Cash & Equivalents

$82.8M

Previous: $60.6M+36.6%
Total Assets

$3.76B

Previous: $3.54B+6.1%
R&D Expense

$9M

No prior period
Stock-Based Comp

$3.69M

Previous: $4.18M-11.7%

Revenue & EPS history

ESAB · Revenue · Quarterly

$681M

Q3 2023+9.8%vs Q3 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 6.5% 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.

Tailwinds

  • 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

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 Q3 2023

Historical avgQ3 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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