ESAB Corporation Reports Strong Q4 2024 Results, Provides Full-Year 2025 Guidance and Strategic Growth Updates
ESAB Corporation (NYSE: ESAB), a premier industrial compounder and global leader in welding and cutting solutions, has announced its financial results for the fourth quarter of 2024. The company delivered solid performance despite macroeconomic challenges, showcasing its resilience and strategic focus on innovation, efficiency, and growth. With flat core organic growth, high-single-digit welding equipment growth, and record-breaking margins driven by EBX initiatives, ESAB continues to strengthen its position as a market leader.
Q4 2024 Financial Highlights
For the fourth quarter of 2024, ESAB reported sales of $671 million, reflecting a 3% decline on a reported basis. However, when adjusted for acquisitions and currency translation impacts, the company achieved flat core organic growth, demonstrating steady demand across key segments.
Net income from continuing operations attributable to ESAB was $72 million, or $1.18 diluted earnings per share. On a core adjusted basis, net income rose to $79 million, translating to $1.28 diluted earnings per share. Core adjusted EBITDA increased by 2% year-over-year to $129 million, with margins expanding by 90 basis points to reach an impressive 20.3%. This margin expansion underscores the success of ESAB’s operational efficiency initiatives and its ability to deliver consistent profitability.
Leadership Commentary: Innovation, Efficiency, and Strategic Acquisitions
Shyam P. Kambeyanda, President and CEO of ESAB, highlighted the company’s achievements and strategic priorities:
“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. We successfully completed a strategic bolt-on acquisition, further strengthening our ability to provide world-class light-industrial automation solutions to our global customers. As we step into 2025, we are more committed than ever to driving long-term shareholder value and are confidently on track to achieve our 2028 goals.”
Kambeyanda’s remarks emphasize ESAB’s dual focus on innovation and operational excellence, which have been key drivers of the company’s success. By leveraging its EBX (Efficiency by Design) framework, ESAB has achieved significant cost savings and margin improvements, positioning itself for sustained growth.
Strategic Acquisitions to Drive Global Expansion
Acquisition of SUMIG
In Q4 2024, ESAB completed the acquisition of SUMIG, a leading South American provider of light automation and welding equipment. This strategic move enhances ESAB’s product portfolio and strengthens its presence in the rapidly growing South American market. SUMIG’s expertise in automation aligns perfectly with ESAB’s vision of delivering advanced, customer-centric solutions globally.
Agreement to Acquire Bavaria Schweisstechnik GmbH
Looking ahead to 2025, ESAB has signed an agreement to acquire Bavaria Schweisstechnik GmbH, a European business specializing in consumables for welding applications. This acquisition is expected to close later in 2025, subject to regulatory approvals and customary closing conditions. Bavaria’s robust consumables portfolio will complement ESAB’s existing offerings, further solidifying its leadership in the welding industry.
These acquisitions underscore ESAB’s commitment to expanding its global footprint and diversifying its product lineup to meet evolving customer needs.
Full-Year 2025 Outlook
ESAB has initiated guidance for the full year 2025, reflecting cautious optimism amid ongoing macroeconomic uncertainties. The company expects:
- Core organic growth of 0.0% to 2.0%.
- Total core sales growth of (2.0)% to 0.0%, impacted by approximately (3.5)% currency headwinds and offset by ~1.5% growth from mergers and acquisitions (M&A).
- Core adjusted EBITDA in the range of $515 million to $530 million.
- Core adjusted EPS between $5.10 and $5.25.
This guidance reflects ESAB’s balanced approach to navigating near-term challenges while investing in long-term growth opportunities. The company remains confident in its ability to deliver value to shareholders through disciplined execution and strategic investments.
About ESAB Corporation
Founded over a century ago, ESAB Corporation is a trusted name in welding and cutting technologies, offering innovative solutions that empower industries worldwide. Headquartered in the United States, ESAB operates across multiple continents, serving diverse sectors such as automotive, construction, energy, and manufacturing. With a focus on sustainability, digitalization, and customer-centric innovation, ESAB is shaping the future of industrial compounding and fabrication.
The company’s mission is to provide high-quality, reliable products and services that enhance productivity and safety for its customers. From advanced welding equipment to cutting-edge automation solutions, ESAB continues to set new standards in the industry.
