NYSE$ESAB

ESAB Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

ESAB achieved record sales and margin performance, with sales and core organic growth up 4%, and operating income and core adjusted EBITDA significantly increased.

ESAB Corporation reported record fourth quarter sales of $689 million, a 4% increase year-over-year. Net income from continuing operations was $58 million, or $0.96 diluted earnings per share, while core adjusted EBITDA rose 18% to $126 million with margins expanding to 19.4%.

  • Record fourth quarter sales and margin performance achieved.
  • Sales and core organic growth increased by 4%.
  • Reported operating income reached $104 million.
  • Core adjusted EBITDA increased by 18% to $126 million.

Headline financials

Total Revenue

$689M

Previous: $664M+3.8%
EPS (adj)

$1.13

Previous: $1.05+7.6%
Total Core Sales Growth

4.0%

Previous: 11.0%-63.6%
Capital Expenditures

-$19.3M

Previous: $18.2M-205.8%
Net Income

$51.5M

Previous: $59M-12.8%
Operating Income

$104M

Previous: $78.6M+32.0%
Gross Profit

$255M

Previous: $224M+13.5%
Stock-Based Comp

$4.97M

Previous: $3.43M+44.9%

Revenue & EPS history

ESAB · Revenue · Quarterly

$689M

Q4 2023+3.8%vs Q4 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

ESAB expects core organic growth of 2.5% to 4.5% and total core sales growth of 1.5% to 3.5% in 2024, with core adjusted EBITDA of $495 to $515 million and core adjusted EPS of $4.65 to $4.85.

Tailwinds

  • Expected core organic growth of 2.5% to 4.5%.
  • Anticipated total core sales growth of 1.5% to 3.5%.
  • Core adjusted EBITDA projected between $495 to $515 million.
  • Core adjusted EPS expected to be $4.65 to $4.85.
  • Cash conversion greater than 95%.

Headwinds

  • Currency headwinds expected to be approximately (1.0%).
  • Impact of supply chain disruptions.
  • Impact on creditworthiness and financial viability of customers.
  • Impact of the war in Ukraine and escalating geopolitical tensions.
  • Other impacts on the Company’s business and ability to execute business continuity plans.

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 Q4 2023

Historical avgQ4 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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