ESAB Corporation Reports Decrease in Net Sales but Increase in Net Income for Fiscal Year 2024

ESAB Corporation reported a decrease in net sales for the fiscal year ending December 31, 2024, totaling $2.74 billion, down from $2.77 billion in 2023. The decline of approximately 1.2% was attributed to unfavorable foreign currency translation effects, which negatively impacted sales by $89.7 million. However, organic sales growth from existing businesses contributed positively, increasing by $32.3 million, driven by customer pricing increases and higher sales volumes. The company’s net income from continuing operations rose to $293.1 million, compared to $223.4 million in the previous year, reflecting a net income margin increase from 8.0% to 10.7%.

In terms of profitability, ESAB's adjusted EBITDA increased to $528.8 million, up from $501.1 million in 2023, with an adjusted EBITDA margin of 19.3%, compared to 18.1% the previous year. The growth in adjusted EBITDA was supported by improved gross profit, which rose to $1.04 billion, aided by price increases, lower material costs, and productivity gains. The gross profit margin also expanded to 37.9%, up from 36.6% in 2023. The company reported a pension settlement loss of $12.2 million, which was a new charge for the year, impacting overall profitability.

Strategically, ESAB made several acquisitions in 2024, including Sager S.A., ESAB Bangladesh Private Limited, and SUMIG Soluções para Solda e Corte Ltda., totaling approximately $155 million. These acquisitions are expected to enhance the company’s market presence in key regions, particularly in South America and Asia. The company also reported a significant increase in its employee headcount, reflecting its growth strategy and expansion efforts.

Operationally, ESAB's Americas segment saw a decrease in net sales to $1.18 billion from $1.22 billion, primarily due to unfavorable currency translation effects. In contrast, the EMEA & APAC segment experienced a slight increase in net sales to $1.56 billion. The company continues to focus on geographic expansion and product adoption, with a notable increase in core sales from existing businesses in both segments. The company’s effective tax rate improved to 20.9% in 2024 from 30.0% in 2023, contributing to the overall increase in net income.

Looking ahead, ESAB expects to finance its liquidity requirements through cash flows from operating activities and has sufficient capacity for additional indebtedness. The company remains optimistic about its growth trajectory, driven by strategic acquisitions and operational efficiencies, while continuing to monitor geopolitical risks, particularly related to its operations in Russia. The company’s management believes that its current liquidity sources are adequate to support operations for the foreseeable future.