ESAB Corporation Announces Fourth Quarter 2024 Results and Initiates Full Year 2025 Guidance

ESAB Corporation (NYSE: ESAB), a leading provider of welding and cutting equipment, consumables, and digital solutions, recently announced its fourth quarter 2024 results and provided guidance for the full year 2025. The company reported strong financial performance, driven by operational excellence and strategic acquisitions.

Fourth Quarter 2024 Results

ESAB reported fourth quarter sales of $671 million, a decrease of 3% on a reported basis or flat core organic growth before acquisitions and currency translation impacts, compared to the prior year. The company also reported fourth quarter net income from continuing operations attributable to ESAB of $72 million, or $1.18 diluted earnings per share, and core adjusted net income of $79 million, or $1.28 diluted earnings per share. Core adjusted EBITDA of $129 million rose 2% and margins expanded 90 basis points to 20.3%, both as compared to the prior year quarter.

Shyam P. Kambeyanda, President and CEO of ESAB, commented, "Our teams delivered another strong quarter, closing another year of exceptional performance. ESAB continues to innovate, introducing products and solutions that fueled growth in welding equipment this quarter. Our relentless focus on efficiency is evident in our record-breaking margin performance."

Strategic Acquisitions

ESAB completed the acquisition of SUMIG, a South American light automation and equipment business, in the fourth quarter of 2024. This acquisition aims to open market opportunities through an enhanced portfolio globally and expand the company's presence in South America. Additionally, ESAB entered into an agreement to acquire Bavaria Schweisstechnik GmbH, a European business that strengthens the company's consumables portfolio. This acquisition is expected to close in 2025, subject to the receipt of applicable regulatory approvals and customary closing conditions.

Full Year 2025 Guidance

ESAB expects core organic growth of 0.0% to 2.0% and total core sales growth of (2.0)% to 0.0% in 2025, which reflects ~(3.5)% currency headwinds and ~1.5% M&A growth. The company is expecting core adjusted EBITDA of $515 million to $530 million and core adjusted EPS of $5.10 to $5.25 for 2025.

ESAB's Q4 2024 performance reveals a compelling story of operational excellence despite top-line challenges. While reported sales declined 3% to $671 million, the high-single-digit growth in welding equipment sales demonstrates successful product innovation and market acceptance. The expansion of adjusted EBITDA margins by 90 basis points to 20.3% is particularly noteworthy, as it reflects the success of the company's EBX (ESAB Business Excellence) operational efficiency program.

The strategic acquisitions of SUMIG and the planned purchase of Bavaria represent calculated moves to enhance ESAB's market position. SUMIG strengthens the company's light automation capabilities in South America, a growing market for industrial automation, while Bavaria will bolster the European consumables portfolio. These bolt-on acquisitions align with ESAB's strategy of expanding its high-margin product offerings and geographical presence.

The 2025 guidance presents a conservative outlook, with core organic growth of 0-2% facing significant currency headwinds of -3.5%. However, the projected core adjusted EBITDA of $515-530 million and EPS of $5.10-5.25 suggest continued margin resilience. The company's ability to maintain profitability despite currency pressures indicates strong pricing power and operational efficiency, key attributes in the industrial manufacturing sector.



In conclusion, ESAB's fourth quarter 2024 results and full year 2025 guidance demonstrate the company's commitment to operational excellence and strategic growth. Despite facing currency headwinds, ESAB is well-positioned to maintain its profitability and continue expanding its high-margin product offerings and geographical presence. Investors should closely monitor the company's progress as it executes on its strategic initiatives and navigates the challenging economic environment.