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Group 1: Earnings Performance - Esab reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.18 per share, and showing an increase from $1.20 per share a year ago, representing an earnings surprise of 5.93% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Esab's revenues for the quarter ended March 2025 were $646.9 million, surpassing the Zacks Consensus Estimate by 2.59%, although this is a decrease from year-ago revenues of $689.74 million [2] Group 2: Stock Performance and Outlook - Esab shares have increased by approximately 0.2% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $654.18 million, and for the current fiscal year, it is $5.13 on revenues of $2.56 billion [7] Group 3: Industry Context - The Metal Products - Procurement and Fabrication industry, to which Esab belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Esab is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

ESAB (ESAB) Q1 2025 Earnings Call May 01, 2025 08:00 AM ET Speaker0 you. I'd now like to turn the call over to Mark Barbolado, Vice President of Investor Relations. You may begin. Speaker1 Thanks, operator. Welcome to ESOP's first quarter twenty twenty five earnings call. This morning, I'm joined by our President and CEO, Shyam Kambianda and CFO, Kevin Johnson. Please keep in mind that some of the statements we are making are forward looking and are subject to risks, including those set forth in our SEC fil ...

ESAB (ESAB) Q1 2025 Earnings Call May 01, 2025 08:00 AM ET Company Participants Mark Barbalato - VP - Investor RelationsShyam Kambeyanda - President & CEOKevin Johnson - Executive VP & CFOSaree Boroditsky - Senior Vice PresidentTami Zakaria - Executive DirectorNathan Jones - Managing DirectorNeal Burk - Industrials Equity Research Conference Call Participants Bryan Blair - Managing Director & Senior Research AnalystMircea Dobre - Associate Director of Research & Senior Research AnalystSherif El-Sabbahy - An ...

Financial Performance - ESAB reported first quarter sales of $678 million, a decrease of 2% year-over-year, with core organic growth flat[3]. - Net income from continuing operations attributable to ESAB was $70 million, or $1.14 diluted earnings per share, compared to $62.9 million and $1.00 in the prior year[3][22]. - Core adjusted EBITDA increased to $128 million, a 4% rise, with a margin expansion of 100 basis points to 19.8%[3]. - Core adjusted net income from continuing operations was $76.9 million, compared to $73.6 million in the prior year[24]. - Adjusted net income margin from continuing operations improved to 11.9% from 11.3% year-over-year[24]. - For the three months ended April 4, 2025, net income from continuing operations was $72.6 million, compared to $62.9 million for the same period in 2024, representing a year-over-year increase of 2.7%[27][30]. - Adjusted EBITDA for the three months ended April 4, 2025, was $133.9 million, with an adjusted EBITDA margin of 19.7%, compared to $129.1 million and 18.7% margin for the same period in 2024[27][30]. - Total sales for the three months ended April 4, 2025, were $678.1 million, a decline of 1.7% from $689.7 million in the same period in 2024[33]. - Core adjusted EBITDA for the three months ended April 4, 2025, was $127.9 million, compared to $123.2 million for the same period in 2024, reflecting a year-over-year increase of 3.8%[27][30]. - Net income for the three months ended April 4, 2025, was $69,832, an increase from $61,594 for the same period in 2024, representing a growth of approximately 3.99%[42]. Outlook and Guidance - The company raised its full year 2025 outlook for total core sales growth to a range of (1.0)% to 1.5%[5]. - The company anticipates M&A contributions to sales growth of 2.0% to 2.5% for the full year[5]. - ESAB's core adjusted EPS guidance remains at $5.10 to $5.25[5]. - The company expects 2025 core net sales growth range to be between (1.0)% and (1.5)%, with organic growth projected at 0.0%-2.0%[37]. - The company anticipates core adjusted EPS for 2025 to be in the range of $5.10 to $5.25, compared to $5.06 for 2024[37]. Acquisitions and Strategic Initiatives - ESAB completed the acquisition of Bavaria Schweisstechnik GmbH, enhancing its consumables portfolio[7]. - The company emphasized its strategy of leveraging global scale while maintaining local agility to drive growth[4]. Cash Flow and Assets - Adjusted free cash flow for the three months ended April 4, 2025, was $30.4 million, down from $40.8 million for the same period in 2024[34]. - Total assets as of April 4, 2025, were $4,217.5 million, an increase from $4,033.9 million as of December 31, 2024[39]. - The company reported a current portion of debt of $17.8 million as of April 4, 2025, compared to $15.0 million as of December 31, 2024[39]. - Goodwill increased to $1,684.8 million as of April 4, 2025, from $1,652.0 million as of December 31, 2024[39]. Dividends and Stockholder Returns - The company paid dividends totaling $4,861, compared to $3,635 in the prior year, marking an increase of approximately 33.8%[42]. Other Financial Metrics - Net cash provided by operating activities decreased to $35,410 from $44,467, a decline of about 20.4% year-over-year[42]. - Cash and cash equivalents at the end of the period increased to $291,348, up from $76,495, showing a significant rise of approximately 280.5%[42]. - Net cash used in investing activities was $2,689, a decrease from $26,614, indicating a reduction of about 89.9%[42]. - The company reported a gain on the sale of property, plant, and equipment amounting to $5,665, compared to a loss of $44 in the previous year[42]. - Total depreciation, amortization, and other impairment charges were $17,491, up from $16,387, reflecting an increase of about 6.7%[42]. - The effect of foreign exchange rates on cash and cash equivalents resulted in an increase of $22,388, contrasting with a decrease of $9,441 in the previous year[42]. - Trade receivables decreased by $32,026, compared to a decrease of $48,946 in the same period last year, indicating improved collection efficiency[42]. - The company reported stock-based compensation expense of $5,361, an increase from $4,133, representing a rise of about 29.8%[42].

Core Viewpoint - The market anticipates a year-over-year decline in Esab's earnings due to lower revenues, with a focus on how actual results compare to estimates to influence stock price [1][2]. Earnings Expectations - Esab is expected to report quarterly earnings of $1.18 per share, reflecting a -1.7% change year-over-year, with revenues projected at $630.56 million, down 8.6% from the previous year [3]. - The consensus EPS estimate has been revised 1.32% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Esab is lower than the consensus estimate, resulting in an Earnings ESP of -2.54%, suggesting a challenging outlook for beating estimates [10][11]. - Esab currently holds a Zacks Rank of 3, complicating predictions for an earnings beat [11]. Historical Performance - In the last reported quarter, Esab exceeded expectations by delivering earnings of $1.28 per share against an estimate of $1.15, resulting in a surprise of +11.30% [12]. - Over the past four quarters, Esab has consistently beaten consensus EPS estimates [13]. Conclusion - While Esab does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Company Overview - ESAB Corp. shares increased by 12.5% to close at $117.58, following a significant trading volume compared to normal sessions, despite a prior 16.6% loss over the past four weeks [1] - The company derives 78% of its sales from international operations, with principal manufacturing facilities in 14 countries, indicating a strong global presence [2] Financial Performance - The upcoming quarterly earnings report is expected to show earnings of $1.19 per share, reflecting a year-over-year decrease of 0.8%, while revenues are projected at $630.3 million, down 8.6% from the same quarter last year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4] Industry Context - ESAB belongs to the Zacks Metal Products - Procurement and Fabrication industry, which includes other companies like Northwest Pipe Co. (NWPX), which saw a 6.3% increase in its stock price recently [4] - Northwest Pipe Co. has a consensus EPS estimate of $0.53 for its upcoming report, representing a 1.9% increase from the previous year, and also holds a Zacks Rank of 3 (Hold) [5]

YEARS STRONG Fourth Quarter 2024 February 20, 2025 EARNINGS CONFERENCE CALL © 2024 Forward-Looking Statements & Non-GAAP Disclaimer Forward-Looking Statements This presentation includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning the Company's plans, goals, objectives, outlook, expectations, and intentions, including stat ...

Financial Performance - The company achieved a record fourth quarter adjusted EBITDA margin of 20.3%, reflecting a 90 basis points margin expansion on flat organic growth [9][24] - Adjusted EBITDA for 2024 reached the top of the range with a margin of 19.7%, exceeding guidance for adjusted EPS and free cash flow conversion [12][29] - Free cash flow for the year was a record $321 million, with free cash flow conversion exceeding 100% [28][29] Business Line Performance - The welding equipment product line experienced high single-digit growth during the quarter, indicating strong demand and acceptance in the market [11] - The Americas saw organic sales decline by 200 basis points, but strong price performance of 400 basis points and acquisitions contributed positively [25] - In Europe, Middle East, and Asia, total sales increased by 300 basis points, with a 400 basis points volume increase driven by high-growth markets [26] Market Performance - High growth markets continue to offset softness in developed markets, with strength noted particularly in the Middle East, India, and Southeast Asia [10][72] - The company anticipates low to mid-single-digit positive volume growth in EMEA and APAC segments throughout the year [32] Company Strategy and Industry Competition - The company is focused on innovation, shifting its product mix, and pursuing bolt-on acquisitions to enhance financial results [8][20] - The company has invested over $100 million in growth initiatives, including enhancing customer experience through AI and expanding its product portfolio [18][122] - The company aims to reduce its manufacturing footprint by 15% over the next three years to improve efficiency and cost structure [130][135] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the start of 2025, noting stable to slightly improving order patterns in both the Americas and globally [42][44] - The company expects organic growth of 0% to 2% in 2025, with a positive impact from M&A offset by FX headwinds [30][31] - Management acknowledged the choppy environment but remains confident in executing their plans to drive margin growth and cash flow [66][67] Other Important Information - The company launched over 100 new products in 2024 and closed three acquisitions, with plans for continued acquisition activity in 2025 [36][20] - The company is leveraging AI for productivity improvements and customer service enhancements [122][126] Q&A Session Summary Question: Order patterns in early 2025 - Management noted stable to slightly improving orders in both the Americas and globally, indicating a solid start to 2025 [42][43] Question: Accretion from 2024 acquisitions - The company expects the three closed deals to perform at or above fleet average in terms of EBITDA percentage, with integration ahead of expectations [45][46] Question: Improving optimism in the Americas - Management highlighted strong acceptance of their equipment line and stabilization in their FABTECH business as factors contributing to optimism [50][51] Question: Drivers of margin expansion - Margin expansion is driven by value-based pricing, continuous improvement initiatives, and back-office cost reductions using new technologies [55][56] Question: Organic growth outlook for gas business - The gas business is expected to grow slightly, while equipment is anticipated to see mid-single-digit growth [61] Question: Regional growth expectations - Management expects strong growth in high-growth markets like India and the Middle East, while developed markets are expected to remain stable [72][73] Question: FX headwinds impact on EBITDA - The company expects approximately $90 million of FX headwinds, with a typical 20% decrement on EBITDA from FX movements [108][109] Question: Potential opportunities in the Russia-Ukraine conflict - Management expressed hope for peace and potential reconstruction opportunities, but noted that such scenarios are not included in their forecasts [111] Question: Mix benefits in margin guidance - The shift towards equipment, which has higher margins, is expected to positively impact overall margins [114][118]

Esab (ESAB) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $1.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.30%. A quarter ago, it was expected that this maker of welding and cutting equipment would post earnings of $1.12 per share when it actually produced earnings of $1.25, delivering a surprise of 11.61%.Over the last four qu ...