Companies /Industrials

ESAB Corp

NYSE: ESAB Metal Fabrication
$78.95
▼ $3.28 (−3.99%) today
Markets closed · 4:43pm ET

Q1 2025 Earnings

Reported May 1, 2025, 6:32am ET · SEC source
$1.25
Beat +3.65%
EPS · est. $1.21
$678.1M
Beat +6.99%
Revenue · est. $633.8M
−2.3%
Trailing market
ESAB vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−4%0+4%May 1May 2report 6:32am ETearnings+1.0%−1.9%
−4%0+4%May 1May 2earnings+1.0%−1.9%
ESAB −1.9%S&P 500 +1.0%
−4%0+4%May 1May 2report 6:32am ETearnings+1.1%−1.9%
−4%0+4%May 1May 2earnings+1.1%−1.9%
ESAB −1.9%NASDAQ +1.1%
−8%−4%0+4%Apr 30May 9report 6:32am ETearnings+0.7%+1.0%
−8%−4%0+4%Apr 30May 9earnings+0.7%+1.0%
ESAB +1.0%S&P 500 +0.7%
−8%−4%0+4%Apr 30May 9report 6:32am ETearnings+1.0%+1.0%
−8%−4%0+4%Apr 30May 9earnings+1.0%+1.0%
ESAB +1.0%NASDAQ +1.0%
−1.57%
Day of report
+4.69%
Next session
+6.51%
One week
+4.40%
30 days

S&P 500 over the same 30 days: +6.74%.

Did ESAB Beat Earnings? Q1 2025 Results

ESAB Corporation kicked off 2025 with a strong first quarter, beating analyst expectations on both the top and bottom lines while posting what management called record margin performance. The industrial welding and gas equipment maker reported core adjusted EPS of $1.25, clearing the $1.21 consensus estimate by 3.65%, as net sales of $678.14 million topped expectations by 6.99%, even as revenue slipped 1.7% year over year amid a challenging macro environment. The standout driver was ESAB's Business Excellence operating system, which powered a 100 basis point expansion in core adjusted EBITDA margin to a record 19.8%, with EBITDA rising 4% to $127.90 million. Core organic sales were essentially flat excluding Russia, acquisitions, and currency, with mid-single-digit growth in welding and gas equipment providing a bright spot. Looking ahead, management raised its full-year 2025 core adjusted EBITDA guidance to $520 million to $530 million and lifted total core sales growth guidance to (1.0)% to 1.5%, partly reflecting the recently completed Bavaria Schweisstechnik acquisition, while maintaining core adjusted EPS guidance at $5.10 to $5.25.

Key Takeaways
  • EBX (ESAB Business Excellence) operating system driving margin expansion
  • Mid-single-digit welding and gas equipment growth
  • Core adjusted EBITDA margin expanded 100 basis points to record 19.8%
  • Flat core organic growth despite challenging market conditions
  • EMEA & APAC core organic growth of 2.3% partially offset by Americas organic decline of 2.4%

“ESAB delivered strong first-quarter results, with our team's continued focus on EBX driving positive growth and record margin performance amid challenging market conditions.”

ESAB CEO, on the earnings call

Forward Guidance & Outlook

ESAB raised its full year 2025 outlook. Total core sales growth guidance increased to (1.0)% to 1.5% from prior (2.0)% to 0.0%, with core organic sales growth maintained at 0.0% to 2.0%, M&A contribution raised to 2.0%-2.5% from ~1.5%, and FX impact narrowed to ~(3.0)% from ~(3.5)%. Core adjusted EBITDA guidance was raised to $520-$530 million from $515-$530 million. Core adjusted EPS guidance was maintained at $5.10-$5.25. The company noted its full year outlook remains on-track including tariff impact.

ESAB YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$200.0M$400.0M$600.0M$689.7M$678.1MRevenue$255.0M$255.2MGross Profit$110.7M$109.8MOperating Income$60.0M$70.1MNet Income
$0$200.0M$400.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

ESAB Revenue by Segment

EMEA & APAC$397.5M+1.0%
Americas$280.7M−5.2%

ESAB Revenue by Geography

EMEA$397.5M+1.0%
Americas$280.7M−5.2%

Figures from SEC filings and company reports. Not investment advice.