Latest news with #ESAB
Globe and Mail
5 days ago
- Business
- Globe and Mail
ESAB (ESAB) Q2 Revenue Jumps 6%
Key Points Revenue (GAAP) exceeded expectations in Q2 2025, reaching $715.6 million, driven by acquisitions, compared to the estimated $674.5 million. Core adjusted EBITDA margin (non-GAAP) reached a record 20.4% in Q2 2025, reflecting ongoing margin improvement despite soft organic sales, particularly in the Americas. Full-year guidance was raised, with management now forecasts total core net sales growth of 1.5–3.5% for full year 2025 and higher targets for core adjusted EBITDA and core adjusted EPS for FY2025. These 10 stocks could mint the next wave of millionaires › ESAB (NYSE:ESAB), a leading global provider of fabrication technology and gas control solutions, reported Q2 2025 results on August 6, 2025. The most notable headline: GAAP revenue for Q2 2025 was $715.6 million, Q2 2025 GAAP revenue of $716 million exceeded analysts' estimates by $41.48 million, or 6.15%, while non-GAAP EPS of $1.36 matched consensus, while core adjusted earnings per share (non-GAAP) for Q2 2025 was $1.36, matching expectations. Management further raised its full-year 2025 guidance for core adjusted EBITDA and core adjusted EPS, boosted by contributions from recent acquisitions and robust business in EMEA (Europe, Middle East, Africa) and Asia-Pacific. Despite these positives, underlying organic growth was subdued in Q1 2025 and volumes in the Americas segment declined, offset only partly by price increases and product mix improvements. The period highlighted successful execution on margin expansion and strategic M&A, supporting a solid quarter for the company. Metric Q2 2025 Q2 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $1.36 $1.36 $1.32 3.0% Revenue (GAAP) $715.6 million $674.5 million $707.1 million 1.2% Core Adjusted EBITDA Margin 20.4% 20.1% 0.3 pp Adjusted Free Cash Flow (Non-GAAP) $46.4 million $78.8 million (41.1%) Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. ESAB's Business and Current Focus Areas ESAB operates in the global fabrication technology market, supplying products like welding equipment, gas control equipment, consumables, and related automation solutions. Its gas control business serves medical, industrial, and specialty sectors. The company has established a presence in roughly 150 countries, giving it broad geographic reach and exposure to diverse end markets. The business focuses on several key strategies: capturing share in high-growth regions such as India and Asia-Pacific, shifting its sales mix toward gas control and advanced welding equipment, and growing through acquisitions. It also invests heavily in research and development to produce new equipment and improve digital capabilities, and it implements the ESAB Business Excellence (EBX) system for operational improvement. Success factors include maintaining profitability as the portfolio shifts to higher-margin categories, integrating new acquisitions quickly, and managing global supply chains efficiently. Quarter Highlights: Performance, Strategy, and Developments During Q2 2025, ESAB delivered GAAP revenue above expectations, supported mainly by the contribution from newly acquired businesses. On an organic basis—excluding the impacts from acquisitions and currency—revenue declined by 2.2% in Q2 FY2025. This softness was most pronounced in the Americas, where Core sales (non-GAAP) fell 8.7% in Q2 2024. In the Americas, core sales fell 8.7%, with distribution channels showing caution due to tariff uncertainty and other factors. For example, Core sales in the Americas declined from $309.8 million in Q2 2024 to $282.7 million in Q2 2025 (core, excludes Russia), with Adjusted EBITDA (non-GAAP) for the Americas was $56.8 million in Q2 2025. In contrast, EMEA and Asia-Pacific stood out as sources of strength. Core sales in EMEA and APAC climbed 11.0% in Q2 2025, supported by continued robust demand in high-growth markets like India and the Middle East. Core sales in EMEA and APAC rose to $395.7 million in Q2 2025, with Core adjusted EBITDA margin (non-GAAP) expanded to 20.6% in Q2 2025, up from 19.5% in Q2 2024. The company credited both new product uptake and the positive contribution of recent acquisitions for the result. Notably, ESAB completed the purchases of DeltaP and Aktiv, which expand its medical gas control business, and signed an agreement to acquire EWM, a European specialist in heavy industrial and robotic welding equipment. Product innovation continued to be a focus. The company rolled out new welding equipment and gas control solutions, with management reporting 'strong traction' in sales channels. Gas control now represents 18% of total revenue, up from 10% just a few years ago (as stated by management in Q1 2025). Gas control products, which support precise delivery and regulation of gases in medical and industrial environments, are both faster-growing and higher-margin than the company average. Strategic acquisitions in this space, especially in Europe and India, are expected to increase gas control to 25% of total revenue by 2028. Management noted that EBITDA margins in this segment are already ahead of the 2028 target. This drop reflected higher inventory in the Americas, a move to protect the supply chain against possible tariff disruptions. Cash and equivalents (GAAP) totaled $258 million as of Q2 2025. Ongoing acquisition activity and proactive inventory builds did impact cash conversion for the quarter. Looking Ahead: Guidance and Investor Watchpoints Management raised its full-year 2025 outlook. It now expects total core net sales growth of 1.5–3.5% for 2025, with the midpoint of that range above its prior view of (1.0)–1.5%. The projected core adjusted EBITDA range is now $525–$535 million for FY2025, and Core adjusted EPS guidance was raised to $5.15–$5.30 for 2025. These improvements reflect the contribution from acquisitions and some relief from negative currency exchange, but Expectations for core organic growth remain unchanged at 0.0% to 2.0% for the full year 2025. The impact from recent deals—especially DeltaP, Aktiv, and the imminent EWM acquisition—is a key factor in the increased full-year 2025 guidance. Looking ahead, ESAB will need to deliver more tangible organic growth, particularly in the Americas, which continues to experience volume weakness and a cautious channel environment. Management expects negative mid-single-digit core volume growth in the Americas for FY2025. Investors should keep an eye on the pace of integration of new acquisitions and the progress of the gas control segment as it moves toward its 2028 target. Any prolonged softness in free cash flow, persistent tariff uncertainty in North America, or shortfalls in organic growth could become areas of concern. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,026%* — a market-crushing outperformance compared to 180% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
5 days ago
- Business
- Yahoo
Why ESAB (ESAB) Shares Are Getting Obliterated Today
What Happened? Shares of welding and cutting equipment manufacturer ESAB (NYSE:ESAB) fell 16.7% in the afternoon session after the company reported a decline in its second-quarter profit and underlying sales. The company's net income dropped to $66.88 million from $82.91 million a year earlier, and earnings per share also decreased. While acquisitions helped lift total sales by 1%, core organic sales, a key measure of underlying performance, actually slipped by 1%. A significant weak spot appeared in the Americas segment, where sales fell 9% from the prior year, a downturn the company attributed to tariff impacts. Despite these challenges, ESAB raised its full-year guidance, but investors appeared to concentrate on the erosion in profit and the sales weakness in a key region. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy ESAB? Access our full analysis report here, it's free. What Is The Market Telling Us ESAB's shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for ESAB and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 20 days ago when the stock gained 3.2% on the news that the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed. Investors were also encouraged by several positive reports that painted a picture of a resilient consumer. One key report revealed that shoppers increased their spending at U.S. retailers more than economists had anticipated. Precisely, retail sales increased 0.6% from May, surpassing the 0.2% estimate. This robust consumer spending is a crucial pillar supporting the economy. Adding to the positive sentiment, the latest data on unemployment claims showed a decrease in the number of workers applying for benefits, signaling that layoffs remain limited and the job market is steady. This combination of strong earnings reports, retail sales, and a solid labor market suggests the economy is navigating challenges successfully. ESAB is down 7.3% since the beginning of the year, and at $109.68 per share, it is trading 18.8% below its 52-week high of $135.08 from November 2024. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
ESAB (ESAB) Q2 Earnings: What To Expect
Welding and cutting equipment manufacturer ESAB (NYSE:ESAB) will be reporting earnings this Wednesday before the bell. Here's what to expect. ESAB beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $678.1 million, down 1.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' adjusted operating income estimates. Is ESAB a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting ESAB's revenue to be flat year on year at $707.2 million, improving from the 1.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.35 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ESAB has missed Wall Street's revenue estimates twice over the last two years. Looking at ESAB's peers in the professional tools and equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lincoln Electric delivered year-on-year revenue growth of 6.6%, beating analysts' expectations by 5.1%, and Snap-on reported flat revenue, topping estimates by 2.1%. Lincoln Electric traded up 7.8% following the results while Snap-on was also up 7.4%. Read our full analysis of Lincoln Electric's results here and Snap-on's results here. Investors in the professional tools and equipment segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. ESAB is up 4.8% during the same time and is heading into earnings with an average analyst price target of $137.44 (compared to the current share price of $131.03). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Yahoo
22-07-2025
- Business
- Yahoo
Spotting Winners: Nordson (NASDAQ:NDSN) And Professional Tools and Equipment Stocks In Q1
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how professional tools and equipment stocks fared in Q1, starting with Nordson (NASDAQ:NDSN). Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 10 professional tools and equipment stocks we track reported a mixed Q1. As a group, revenues missed analysts' consensus estimates by 3.2% while next quarter's revenue guidance was 1.1% above. Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results. Nordson (NASDAQ:NDSN) Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings. Nordson reported revenues of $682.9 million, up 5% year on year. This print exceeded analysts' expectations by 1.1%. Overall, it was a satisfactory quarter for the company with EPS guidance for next quarter topping analysts' expectations but organic revenue in line with analysts' estimates. Commenting on the Company's fiscal 2025 second quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, 'We started the second quarter with increasing momentum in order entry, and our results outperformed the mid-point of our sales and earnings guidance. This was driven by strength in our electronics systems sales and steady growth in nonwovens systems, precision agriculture and medical fluid components. Also, our Atrion acquisition continues to perform above expectations. As expected, this growth was partially offset by year-over-year weakness in industrial systems sales, which improved sequentially compared to the first quarter. Operational excellence drove strong profit performance of 32% EBITDA despite the uncertain geopolitical environment. We also maintained our sound balance sheet and bought back $85 million in shares during this dynamic quarter.' Nordson scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 9.5% since reporting and currently trades at $214.30. Is now the time to buy Nordson? Access our full analysis of the earnings results here, it's free. Best Q1: ESAB (NYSE:ESAB) Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries. ESAB reported revenues of $678.1 million, down 1.7% year on year, outperforming analysts' expectations by 2.2%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' adjusted operating income estimates. The market seems happy with the results as the stock is up 6.6% since reporting. It currently trades at $128.04. Is now the time to buy ESAB? Access our full analysis of the earnings results here, it's free. Weakest Q1: Hyster-Yale Materials Handling (NYSE:HY) Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors. Hyster-Yale Materials Handling reported revenues of $910.4 million, down 13.8% year on year, falling short of analysts' expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts' EBITDA estimates and a miss of analysts' EPS estimates. Hyster-Yale Materials Handling delivered the slowest revenue growth in the group. Interestingly, the stock is up 2.3% since the results and currently trades at $41.45. Read our full analysis of Hyster-Yale Materials Handling's results here. Stanley Black & Decker (NYSE:SWK) With an iconic 'STANLEY' logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry. Stanley Black & Decker reported revenues of $3.74 billion, down 3.2% year on year. This number topped analysts' expectations by 1.7%. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts' EPS estimates but a miss of analysts' adjusted operating income estimates. The stock is up 13.4% since reporting and currently trades at $69.36. Read our full, actionable report on Stanley Black & Decker here, it's free. Kennametal (NYSE:KMT) Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors. Kennametal reported revenues of $486.4 million, down 5.7% year on year. This print was in line with analysts' expectations. It was a very strong quarter as it also produced a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Kennametal scored the highest full-year guidance raise among its peers. The stock is up 23.7% since reporting and currently trades at $24.51. Read our full, actionable report on Kennametal here, it's free. Market Update Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Business Wire
10-07-2025
- Business
- Business Wire
ESAB Corporation Schedules Second Quarter 2025 Earnings Release and Conference Call
NORTH BETHESDA, Md.--(BUSINESS WIRE)--ESAB Corporation ('ESAB' or the 'Company') (NYSE: ESAB), a focused premier industrial compounder, announced today that it will issue a press release providing financial results for the second quarter of 2025 on the morning of Wednesday, August 6, 2025. The Company will hold a conference call to discuss these results beginning at 8:00 a.m. Eastern on that day, which will be open to the public by calling +1-888-550-5302 (U.S. callers) and +1-646-960-0685 (International callers) and referencing the conference ID number 4669992 and through webcast via ESAB's website under the 'Investors' section. ESAB's financial results press release and supplemental information referenced on the call, if any, for the second quarter 2025 will be available under the 'Investors' section of ESAB's website prior to the conference call. A link to a replay of the call will also be available on the ESAB Corporation website later that day. About ESAB Corporation Founded in 1904, ESAB Corporation (NYSE: ESAB) is a focused premier industrial compounder. The Company's rich history of innovative products, workflow solutions and business system, ESAB Business Excellence, enables its purpose of Shaping the world we imagine. TM ESAB Corporation is based in North Bethesda, Maryland and employs approximately 9,300 associates and serves customers in approximately 150 countries. To learn more, visit
