Thu, May 1, 10:35 AM (15 days ago)
### ESAB Corporation (ESAB, Ticker: ESAB) Q1 2025 Financial Performance Summary **Quarterly Financial Health and Performance:** - **Revenue:** $678.1 million, down 1.7% from $689.7 million in Q1 2024. - **Profit Margins:** Gross profit margin at 37.6%, slightly up from 37.0% in Q1 2024. Adjusted EBITDA margin at 19.7%, up from 18.7%. - **Cash Flow:** Net cash provided by operating activities was $35.4 million, down from $44.5 million in Q1 2024. - **Earnings Changes:** Net income from continuing operations increased by $9.7 million to $72.6 million, with a margin expansion of 160 basis points. **Segment Performance:** - **Americas:** Net sales decreased by $15.3 million, with a gross profit margin expansion of 170 basis points due to EBX initiatives. - **EMEA & APAC:** Net sales increased by $3.8 million, with consistent gross profit margins and a decrease in Selling, General, and Administrative (SG&A) expenses. **Trends and Uncertainties:** - **Geopolitical Risks:** Ongoing conflicts in Ukraine and Russia impact approximately 5% of total revenue and net assets. - **Acquisitions:** Recent acquisitions, including Bavaria Schweisstechnik, align with strategic growth plans. - **Currency Fluctuations:** Foreign exchange rates reduced net sales by 3.7% and gross profit by 3.0%. **Future Operations Impact:** - **Liquidity and Capital Resources:** ESAB maintains strong liquidity with $291.3 million in cash and cash equivalents, and $750 million available on the Revolving Facility. - **Stock Repurchase Program:** Authorized to repurchase up to 5 million shares, with no repurchases made in Q1 2025. - **Debt Management:** Compliance with debt covenants and strategic use of derivatives to manage interest rate and currency risks. **Conclusion:** ESAB Corporation demonstrated resilience in Q1 2025, with stable profit margins and strategic acquisitions supporting long-term growth. The company continues to navigate geopolitical uncertainties and currency fluctuations while maintaining strong liquidity and financial health.