EX-99.1 2 q32024earningspressrelease.htm EX-99.1 Document

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ESAb 公司宣佈 2024 年第三季度業績

•積極的核心有機增長
•新設備正獲得更多關注
•EBX駕駛記錄邊際
•提高了2024年前景的中間點

2024年10月29日，馬里蘭州北貝塞斯達--ESAb公司（「ESAB」或「公司」）（紐交所：ESAB），一家專注於優質工業化合物生產的公司，今天宣佈了2024年第三季度的財務業績。

eSab報告第三季度銷售額爲6.73億美元，與去年同期相比下降了1％，或在收購和貨幣折算前的核心有機增長基礎上增長了1％。eSab還報告了歸屬於eSab的第三季度持續經營業務淨收入 6900 萬美元 或攤薄後每股收益1.13美元，核心調整後淨收益爲7700萬美元，攤薄後每股收益爲1.25美元。核心調整後息稅折舊攤銷前利潤增長1.25億美元 6% 而且利潤率擴大了 130 與上一季度相比，點子均爲19.6％。

ESAb在具有挑戰性的最終市場環境中取得了另一個強勁的季度，以正面的成交量增長、創紀錄的利潤率和強勁的現金流爲特點，ESAb的總裁兼首席執行官Shyam P. Kambeyanda表示。我們的增長受到我們無與倫比的地理覆蓋範圍、推出的新獲獎產品以及在商業轉型和併購上的戰略投資的推動。ESAb繼續通過使用EBX來提升利潤率和現金流，進一步增強了我們在2028年實現長期目標的信心。

更新後的2024年全年展望

ESAb現預計2024全年總核心銷售增長率爲(1.5)%至(0.5)%，核心有機銷售增長率爲0.0%至1.0%，併購爲1.0%，外匯期貨爲約(2.5)%，較之前的指導總核心銷售增長率爲(2.5)%至(0.5)%，核心有機銷售增長率爲(1.0)%至1.0%，併購爲1.0%，外匯期貨爲約(2.5)%。 ESAb將2024全年核心調整後的EBITDA預估調整爲5億美元至51500萬美元，核心調整後的每股收益調整爲4.80美元至4.95美元，較之前指導的核心調整後的EBITDA爲4.95億美元至5.15億美元，核心調整後的每股收益爲4.75美元至4.95美元。

關於ESAb Corporation

成立於1904年，ESAb Corporation是一家專注於工業化合物的首要供應商。公司擁有創新產品、工作流解決方案以及其業務系統ESAb商業卓越（"EBX"）的豐富歷史，有助於實現公司的宗旨 塑造我們想象中的世界此款超便攜式投影儀使用了最新的 Android TV 界面，而且遙控器還內置了 Google AssistantTM 功能，用戶可以非常方便地使用它。。ESAb Corporation總部設在馬里蘭州北貝塞斯達，並僱傭約9,000名員工，在約150個國家爲客戶提供服務。欲了解更多，請訪問 www.ESABcorporation.com。

電話會議和網絡直播

公司將於2024年第三季度開始電話會議，討論結果，時間爲2024年10月29日星期二上午8:00，公衆可以通過撥打+1-888-550-5302（美國投資者）和+1-646-960-0685（國際投資者）參與，會議ID號碼爲4669992，並通過ESAB官網進行網絡直播 www.ESABcorporation.com 位於「投資者」部分，ESAB網站上也可以找到補充幻燈片演示。本次電話會議的音頻和幻燈片演示將於今天稍後存檔在網站上，並可在下一季度電話會議之前提供。 截至2024年9月27日的財務季度的公司10-Q報告，已於2024年10月29日提交，並可在ESAB網站的「投資者」部分找到。 截至2024年9月27日的財務季度的公司10-Q報告，已於2024年10月29日提交，並可在ESAB網站的「投資者」部分找到。

非GAAP財務指標和其他調整

ESAb在本新聞稿中提供了一些未按照美國通用會計原則準備的財務信息（「非GAAP」）。ESAb提供了一些這些非GAAP財務指標，包括和不包括俄羅斯。由於烏克蘭戰爭引起的經濟和政治不穩定性，導致投資者對這些信息產生了更大的興趣。核心非GAAP財務指標不包括俄羅斯，截至2024年9月27日的九個月。 2023年9月29日. T這些非GAAP財務指標可能包括以下一項或多項：
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經常經營活動調整淨利潤、核心經常經營活動調整淨利潤、調整後息稅折舊攤銷前利潤（利息、稅收、養老金結算損失、重組及其他相關費用、收購攤銷及其他相關費用，折舊及其他攤銷）、核心調整後息稅折舊攤銷前利潤、有機銷售增長、核心有機銷售增長、調整後的自由現金流和基於上述指標的比率。ESAb還提供按部門基礎調整後息稅折舊攤銷前利潤和調整後息稅折舊攤銷前利潤率，以及按部門基礎的核心調整後息稅折舊攤銷前利潤和核心調整後息稅折舊攤銷前利潤率。

調整後的持續運營淨利潤代表了歸屬ESAb Corporation的持續運營淨利潤，不包括重組及其他相關費用、收購攤銷及其他相關費用以及養老金結算損失。調整後的淨利潤包括適用稅率下非GAAP調整項目的稅收影響，並排除每期的離散稅收費用或收益影響。ESAb還展示了持續運營的調整後的淨利潤率，其調整方式與調整後的持續運營淨利潤相同。持續運營每股攤薄調整後的淨利潤是持續運營的調整後的淨利潤除以加權平均攤薄股份。ESAb還展示了核心調整後的持續運營淨利潤和每股核心調整後的淨利潤-攤薄的持續運營淨利潤，其調整方式與持續運營的調整後的淨利潤和每股攤薄調整後的淨利潤相同s，進一步去除俄羅斯在2024年9月27日結束的九個月中的影響 2023年9月29日.
調整後的EBITDA從持續經營淨利潤中排除了所得稅費用、利息費用（收入）和其他、淨額、重組及其他相關費用、收購攤銷和其他相關費用、養老金結算損失和折舊及其他攤銷。ESAb提供調整後的EBITDA利潤率，這些利潤率受到與調整後的EBITDA相同的調整。此外，ESAb按段報告這些非GAAP績效指標，其中排除了重組及其他相關費用、分拆成本、收購攤銷和其他相關費用、養老金結算損失和折舊及其他攤銷對營業利潤的影響。ESAb還提供核心調整後的EBITDA和核心調整後的EBITDA利潤率，這些利潤率受到與調整後的EBITDA和調整後的EBITDA利潤率相同的調整。分別爲調整後的EBITDA和調整後的EBITDA利潤率，進一步剔除了截至2024年9月27日的九個月俄羅斯的影響 2023年9月29日.

ESAb呈現有機銷售增長，其中不包括收購和匯率波動的影響，並展示核心有機銷售增長，進一步排除截至2024年9月27日的俄羅斯業務的影響和頁面。2023年9月29日 從核心有機銷售增長中。

Adjusted free cash flow represents cash flows from operating activities excluding cash outflows related to the Company’s separation from Enovis Corporation and discontinued operations, less Purchases of property, plant and equipment net of proceeds from sale of certain properties. Cash conversion represents Adjusted free cash flow divided by Adjusted net income from continuing operations.

These non-GAAP financial measures assist ESAB management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to unusual events or discrete restructuring plans and other initiatives that are fundamentally different from the ongoing productivity and core business of the Company.

ESAB management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.

Forward Looking Statements

This press release 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, and other statements that are not historical or current fact. Forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including general risks and uncertainties such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health
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concerns, natural disasters or other disruptions of expected business conditions. Factors that could cause the Company’s results to differ materially from current expectations include, but are not limited to, risks related to the impact of the wars in Ukraine and Middle East and the resulting escalating geopolitical tensions; impact of supply chain disruptions; the impact of creditworthiness and financial viability of customers; impact of inflationary pressures, foreign exchange fluctuations and commodity prices; other impacts on the Company’s business and ability to execute business continuity plans; and the other factors detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (“SEC”) on February 29, 2024, as well as other risks discussed in the Company’s filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. The Company disclaims any duty to update the information herein.

Investor Relations Contact:
Mark Barbalato
Vice President, Investor Relations
E-mail: investorrelations@esab.com
Phone: 1-301-323-9098

Media Contact:
Tilea Coleman
Vice President, Corporate Communications
E-mail: mediarelations@esab.com
Phone: 1-301-323-9092
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ESAB CORPORATION
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
Dollars in thousands, except per share data
(Unaudited)

Three Months EndedNine Months Ended
September 27, 2024September 29, 2023September 27, 2024September 29, 2023
Net sales$673,250 $680,996 $2,070,047 $2,085,418 
Cost of sales419,460 431,282 1,290,915 1,324,392 
Gross profit253,790 249,714 779,132 761,026 
Selling, general and administrative expense145,900 145,439 434,537 442,836 
Restructuring and other related charges1,875 3,129 8,572 17,742 
Operating income106,015 101,146 336,023 300,448 
Pension settlement loss— — 12,155 — 
Interest expense and other, net16,894 20,502 49,925 58,831 
Income from continuing operations before income taxes89,121 80,644 273,943 241,617 
Income tax expense18,074 19,808 54,463 77,806 
Net income from continuing operations71,047 60,836 219,480 163,811 
Loss from discontinued operations, net of taxes(1,214)(1,723)(3,684)(4,259)
Net income69,833 59,113 215,796 159,552 
Income attributable to noncontrolling interest, net of taxes(1,593)(1,543)(4,698)(4,506)
Net income attributable to ESAB Corporation$68,240 $57,570 $211,098 $155,046 
Earnings (loss) per share – basic
Income from continuing operations$1.14 $0.98 $3.54 $2.63 
Loss on discontinued operations$(0.02)$(0.03)$(0.06)$(0.07)
Net income per share – basic$1.12 $0.95 $3.48 $2.56 
Earnings (loss) per share – diluted
Income from continuing operations$1.13 $0.97 $3.50 $2.61 
Loss on discontinued operations$(0.02)$(0.03)$(0.06)$(0.07)
Net income per share – diluted$1.11 $0.94 $3.44 $2.54 
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ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Dollars in millions, except per share data
(Unaudited)

Three Months Ended(1)
Nine Months Ended(1)
September 27, 2024September 29, 2023September 27, 2024September 29, 2023
Adjusted Net Income
Net income from continuing operations (GAAP)$71.0 $60.8 $219.5 $163.8 
Less: Income attributable to noncontrolling interest, net of taxes1.6 1.5 4.7 4.5 
Net income from continuing operations attributable to ESAB Corporation (GAAP)$69.4 $59.3 214.8 159.3 
Restructuring and other related charges – pretax(2)
1.9 3.1 8.6 17.7 
Acquisition-amortization and other related charges – pretax(3)
10.0 9.3 25.5 27.8 
Pension settlement loss – pretax— — 12.2 — 
Tax effect on above items(4)
(2.8)(3.2)(11.3)(11.0)
Discrete tax adjustments(5)
0.1 0.5 (6.5)20.1 
Adjusted net income from continuing operations (non-GAAP)$78.6 $69.0 $243.3 $213.9 
Adjusted net income from continuing operations attributable to Russia (non-GAAP)(6)
1.9 3.2 11.3 10.8 
Core adjusted net income from continuing operations (non-GAAP)$76.7 $65.8 $232.0 $203.1 
Adjusted net income margin from continuing operations11.7 %10.2 %11.8 %10.3 %
Adjusted Net Income Per Share
Net income per share – diluted from continuing operations (GAAP)$1.13 $0.97 $3.50 $2.61 
Restructuring and other related charges – pretax(2)
0.03 0.05 0.14 0.29 
Acquisition-amortization and other related charges – pretax(3)
0.16 0.15 0.42 0.46 
Pension settlement loss – pretax— — 0.20 — 
Tax effect on above items(4)
(0.05)(0.05)(0.19)(0.18)
Discrete tax adjustments(5)
— 0.01 (0.11)0.33 
Adjusted net income per share – diluted from continuing operations (non-GAAP)$1.28 $1.13 $3.96 $3.51 
Adjusted net income per share – diluted from continuing operations attributable to Russia (non-GAAP)(6)
0.03 0.05 0.19 0.17 
Core adjusted net income per share – diluted from continuing operations (non-GAAP)$1.25 $1.08 $3.78 $3.34 
__________
(1) Numbers may not sum due to rounding.
(2) Includes severance and other termination benefits, including outplacement services as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets and other costs in connection with the closure and optimization of facilities and product lines.
(3) Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
(4) This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the proceeding line items of the table. ESAB estimates the tax effect of each adjustment item by applying ESAB’s overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
(5) For 2024, discrete adjustments relate to a favorable final ruling in the 2023 tax case in a foreign jurisdiction mentioned below. For 2023, discrete tax adjustments include the impact of net discrete tax expenses related to dividend withholding tax and the impact of an uncertain tax position due to an adverse court ruling in a foreign jurisdiction.
(6) Represents Russia contribution for the three and nine months ended September 27, 2024 and September 29, 2023.

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ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Dollars in millions
(Unaudited)

Three Months Ended September 27, 2024(1)
Nine Months Ended September 27, 2024(1)
AmericasEMEA & APACTotalAmericasEMEA & APACTotal
Net income from continuing operations (GAAP)$71.0 $219.5 
Income tax expense18.1 54.5 
Interest expense and other, net16.9 49.9 
Pension settlement loss— 12.2 
Operating income (GAAP)$49.9 $56.1 $106.0 151.8 184.3 336.0 
Adjusted to add
Restructuring and other related charges(2)
0.9 1.0 1.9 2.0 6.6 8.6 
Acquisition-amortization and other related charges(3)
4.8 5.2 10.0 13.5 12.1 25.6 
Depreciation and other amortization3.8 5.7 9.5 10.9 16.5 27.4 
Adjusted EBITDA (non-GAAP)$59.4 $68.1 $127.4 $178.2 $219.4 $397.5 
Adjusted EBITDA attributable to Russia (non-GAAP)(4)
— 2.6 2.6 — 15.5 15.5 
Core adjusted EBITDA (non-GAAP)$59.4 $65.5 $124.8 $178.2 $203.9 $382.1 
Adjusted EBITDA margin (non-GAAP)20.6 %17.7 %18.9 %19.9 %18.7 %19.2 %
Core adjusted EBITDA margin (non-GAAP)(5)
20.6 %18.9 %19.6 %19.9 %19.2 %19.5 %
__________
(1) Numbers may not sum due to rounding.
(2) Includes severance and other termination benefits, including outplacement services as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets and other costs in connection with the closure and optimization of facilities and product lines.
(3) Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
(4) Numbers calculated following the same definition as Adjusted EBITDA for total Company.
(5) Net sales were $37.7 million and $112.0 million relating to Russia for the three and nine months ended September 27, 2024, respectively.

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ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Dollars in millions
(Unaudited)

Three Months Ended September 29, 2023(1)
Nine Months Ended September 29, 2023(1)
AmericasEMEA & APACTotalAmericasEMEA & APACTotal
Net income from continuing operations (GAAP)$60.8 $163.8 
Income tax expense19.8 77.8 
Interest expense and other, net20.5 58.8 
Operating income (GAAP)$46.5 $54.7 $101.1 $132.4 $168.0 $300.4 
Adjusted to add
Restructuring and other related charges(2)
1.6 1.6 3.1 5.4 12.3 17.7 
Acquisition-amortization and other related charges(3)
5.2 4.0 9.3 16.0 11.9 27.8 
Depreciation and other amortization3.9 5.0 9.0 11.1 15.5 26.6 
Adjusted EBITDA (non-GAAP)$57.2 $65.3 $122.5 $164.9 $207.7 $372.6 
Adjusted EBITDA attributable to Russia (non-GAAP)(4)
— 4.7 4.7 — 15.7 15.7 
Core adjusted EBITDA (non-GAAP)$57.2 $60.6 $117.8 $164.9 $192.0 $356.9 
Adjusted EBITDA margin (non-GAAP)18.7 %17.4 %18.0 %18.2 %17.6 %17.9 %
Core adjusted EBITDA margin (non-GAAP)(5)
18.7 %17.9 %18.3 %18.2 %18.1 %18.1 %
(1) Numbers may not sum due to rounding.
(2) Includes severance and other termination benefits, including outplacement services as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets and other costs in connection with the closure and optimization of facilities and product lines.
(3) Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
(4) Numbers calculated following the same definition as Adjusted EBITDA for total Company.
(5) Net sales were $36.9 million and $114.4 million relating to Russia for the three and nine months ended September 29, 2023, respectively.
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ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Change in Sales
Dollars in millions
(Unaudited)
Sales Growth(1)
AmericasEMEA & APACTotal ESAB
$Change %$Change %$Change %
For the three months ended September 29, 2023
$305.8 $375.2 $681.0 
Components of Change:
Existing businesses (organic sales growth)(2)
6.2 2.0 %0.4 0.1 %6.6 1.0 %
Acquisitions(3)
2.8 0.9 %3.8 1.0 %6.6 1.0 %
Foreign Currency translation(4)
(26.0)(8.5)%5.1 1.4 %(20.9)(3.1)%
Total sales growth(17.0)(5.6)%9.3 2.5 %(7.7)(1.1)%
For the three months ended September 27, 2024
$288.8 $384.4 $673.3 
(1) Numbers may not sum due to rounding.
(2) Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3) Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.

Core Sales Growth(1)(5)
AmericasEMEA & APACESAB
$Change %$Change %$Change %
For the three months ended September 29, 2023
$305.8 $338.3 $644.1 
Components of Change:
Existing businesses (core organic sales growth)(2)
6.2 2.0 %1.8 0.5 %8.0 1.2 %
Acquisitions(3)
2.8 0.9 %3.8 1.1 %6.6 1.0 %
Foreign Currency translation(4)
(26.0)(8.5)%2.9 0.9 %(23.1)(3.6)%
Total core sales growth(17.0)(5.6)%8.5 2.5 %(8.5)(1.3)%
For the three months ended September 27, 2024
$288.8 $346.8 $635.6 
(1) Numbers may not sum due to rounding.
(2) Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3) Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
(5) Represents sales excluding Russia for the three months ended September 27, 2024 and September 29, 2023.




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ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Change in Sales
Dollars in millions
(Unaudited)
Sales Growth(1)
AmericasEMEA & APACTotal ESAB
$Change %$Change %$Change %
For the nine months ended September 29, 2023
$907.7 $1,177.8 $2,085.4 
Components of Change:
Existing businesses (organic sales growth)(2)
27.6 3.0 %4.0 0.3 %31.6 1.5 %
Acquisitions(3)
6.4 0.7 %3.9 0.3 %10.3 0.5 %
Foreign Currency translation(4)
(47.0)(5.2)%(10.3)(0.9)%(57.3)(2.7)%
Total sales growth(13.0)(1.4)%(2.4)(0.2)%(15.4)(0.7)%
For the nine months ended September 27, 2024
$894.6 $1,175.4 $2,070.0 
(1) Numbers may not sum due to rounding.
(2) Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3) Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.

Core Sales Growth(1)(5)
AmericasEMEA & APACESAB
$Change %$Change %$Change %
For the nine months ended September 29, 2023
$907.7 $1,063.3 $1,971.0 
Components of Change:
Existing businesses (core organic sales growth)(2)
27.6 3.0 %(2.7)(0.3)%24.9 1.3 %
Acquisitions(3)
6.4 0.7 %3.9 0.4 %10.3 0.5 %
Foreign Currency translation(4)
(47.0)(5.2)%(1.3)(0.1)%(48.3)(2.5)%
Total core sales growth(13.0)(1.4)%(0.1)— %(13.1)(0.7)%
For the nine months ended September 27, 2024
$894.6 $1,063.4 $1,958.0 
(1) Numbers may not sum due to rounding.
(2) Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3) Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
(5) Represents sales excluding Russia for the nine months ended September 27, 2024 and September 29, 2023.


9

ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Adjusted Free Cash Flow
Dollars in millions
(Unaudited)

Three Months Ended
Nine Months Ended
September 27, 2024September 29, 2023September 27, 2024September 29, 2023
Net cash provided by operating activities (GAAP)$101.0 $107.4 $228.5 $208.1 
Purchases of property, plant and equipment (GAAP)(10.7)(11.9)(27.1)(28.9)
Proceeds from the sale of certain properties(1)
1.9 1.9 1.9 2.8 
Payments related to the Separation(2)
— — — 4.4 
Payments related to discontinued operations3.6 2.5 12.1 12.2 
Adjusted free cash flow (non-GAAP)$95.8 $99.9 $215.4 $198.6 
(1) Includes proceeds from the sale of certain properties related to restructuring efforts for which previous cash outlays were included in Net cash provided by operating activities.
(2) Separation payments relate to one-time non-recurring professional fees and employee costs incurred in the planning and execution of the Company’s separation from Enovis Corporation.
10

ESAB CORPORATION
2024 Outlook
Dollars in millions, except per share amounts
(Unaudited)

ESAB 2024 Outlook
Previous GuidanceNew Guidance
2023 Core net sales$2.62B$2.62B
Organic growth (1.0)%-1.0%0.0%-1.0%
Acquisitions
1.0%1.0%
Currency
(2.5)%~(2.5)%
2024 Core net sales growth range(2.5)%-(0.5)%(1.5)%-(0.5)%
2023 Core adjusted EBITDA $482.7 $482.7 
2024 Core adjusted EBITDA range$495-$515$500-$515
2023 Core adjusted EPS$4.46 $4.46 
2024 Core adjusted EPS range$4.75-$4.95$4.80-$4.95
11

ESAB CORPORATION
CONSOLIDATED AND CONDENSED BALANCE SHEETS
Dollars in thousands, except share and per share amounts
(Unaudited)

September 27, 2024December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$253,670 $102,003 
Trade receivables, less allowance for credit losses of $24,637 and $25,477
420,938 385,198 
Inventories, net422,654 392,858 
Prepaid expenses58,732 61,771 
Other current assets65,517 55,890 
Total current assets1,221,511 997,720 
Property, plant and equipment, net296,437 294,305 
Goodwill1,667,878 1,588,331 
Intangible assets, net499,789 499,535 
Lease assets - right of use94,413 95,607 
Other assets304,506 353,131 
Total assets$4,084,534 $3,828,629 
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable$320,252 $306,593 
Accrued liabilities316,819 313,489 
Total current liabilities637,071 620,082 
Long-term debt1,080,182 1,018,057 
Other liabilities489,556 542,833 
Total liabilities2,206,809 2,180,972 
Equity:
Common stock - $0.001 par value - Authorized 600,000,000, 60,444,246 and 60,295,634 shares outstanding as of September 27, 2024 and December 31, 2023, respectively    
60 60 
Additional paid-in capital1,893,665 1,881,054 
Retained earnings548,300 350,557 
Accumulated other comprehensive loss(604,900)(624,272)
Total ESAB Corporation equity1,837,125 1,607,399 
Noncontrolling interest40,600 40,258 
Total equity1,877,725 1,647,657 
Total liabilities and equity$4,084,534 $3,828,629 






12

ESAB CORPORATION
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
Dollars in thousands
(Unaudited)
Nine Months Ended
September 27, 2024September 29, 2023
Cash flows from operating activities:
Net income$215,796 $159,552 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other impairment charges50,028 57,090 
Stock-based compensation expense14,473 11,150 
Deferred income tax2,394 756 
Non-cash interest expense2,259 896 
Pension settlement loss12,155 — 
Changes in operating assets and liabilities:
Trade receivables, net(39,075)(15,170)
Inventories, net(31,651)(16,212)
Accounts payable16,895 (17,746)
Other operating assets and liabilities(14,751)27,783 
Net cash provided by operating activities228,523 208,099 
Cash flows from investing activities:
Purchases of property, plant and equipment(27,071)(28,865)
Proceeds from sale of property, plant and equipment3,452 5,171 
Acquisitions, net of cash received(86,537)(18,665)
Other investing(4,058)— 
Net cash used in investing activities(114,214)(42,359)
Cash flows from financing activities:
Proceeds from borrowings on Senior Notes700,000 — 
Proceeds from borrowings on revolving credit facilities and other205,000 454,671 
Repayments of borrowings on Term Loans(597,500)(6,250)
Repayments of borrowings on revolving credit facilities and other(236,623)(578,623)
Payment of debt issuance costs and other(15,522)— 
Payment of dividends(12,135)(9,702)
Distributions to noncontrolling interest holders(2,644)(2,279)
Net cash provided by (used in) financing activities40,576 (142,183)
Effect of foreign exchange rates on Cash and cash equivalents(3,218)(12,748)
Increase in Cash and cash equivalents 151,667 10,809 
Cash and cash equivalents, beginning of period102,003 72,024 
Cash and cash equivalents, end of period$253,670 $82,833 
13