Research Reports

Key takeaways

Revenue was $745.6M (up 9.9% YoY), reflecting pricing increases and favorable foreign exchange impact, partially offset by lower sales volumes driven by tariffs.

Gross profit was $275.1M (up 7.8% YoY), but gross margin declined to 36.9% due to tariff-related price pass-through in the Americas segment and higher freight and material costs linked to oil price increases from the war in Iran.

Operating income was $90.5M (down 17.6% YoY), with operating margin at 12.1%, pressured by gross margin dilution and acquisition-related effects including EWM integration.

Net cash provided by operating activities was $46.9M (up from $35.4M YoY), funding capital expenditures of $13.7M and supporting continued debt repayment and dividend payments.

Diluted EPS was $0.78 (down 29.1% YoY), consistent with the decline in net income to $47.6M (down 29.3% YoY) amid elevated costs and margin pressure.

Full analysis

Results of Operations

Operating income decreased 17.6% to $90.5 million, resulting in an operating margin of 12.1%. This reflects not only gross margin pressure but also the dilutive impact of recent acquisitions, including EWM, which contributed to margin compression in Core adjusted EBITDA. Net income declined 29.3% to $47.6 million, and diluted EPS was $0.78, down 29.1% from $1.10 in the prior year — consistent with the broader earnings contraction driven by cost headwinds and integration effects.

ESAB · ESAB Corporation

Summary

Key takeaways

Full analysis

Results of Operations

Liquidity and Capital Resources