Esab (ESAB) Q2 FY2024 earnings: revenue $707 million, down 1.9% on the year

Esab Corp. (ESAB) reported revenue of $707 million for Q2 FY2024, the quarter ended 28 June 2024, down 1.9% on the same quarter a year earlier. Net income was $83 million, up 26.4% on the year, and diluted earnings per share $1.35. The figures are the company's own, from the 10-Q it filed with the SEC on 2 August 2024.

Revenue$707 milliondown 1.9%

Net income$83 millionup 26.4%

Diluted EPS$1.35

QuarterQ2 FY2024ended 28 June 2024

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	707	690	n/a	n/a
Cost of revenue	437	435	n/a	n/a
Gross profit	270	255	n/a	n/a
Gross margin	38.2%	37.0%	n/a
Research and development	9.7	10.1	n/a	n/a
Selling, general and administrative	146	142	n/a	n/a
Operating income	119	111	n/a	n/a
Operating margin	16.9%	16.0%	n/a
Pre-tax income	103	81.4	n/a	n/a
Income tax	17.9	18.5	n/a	n/a
Effective tax rate	17.3%	22.7%	n/a
Net income	82.9	60.0	n/a	n/a
Net margin	11.7%	8.7%	n/a
Diluted EPS	$1.35	$0.98	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	83.0	44.5	n/a	n/a
Capital expenditure	9.0	7.4	n/a	n/a
Free cash flow	74.0	37.1	n/a	n/a
Free cash flow margin	10.5%	5.4%	n/a
Cash from investing	-10.3	-26.6	n/a	n/a
Cash from financing	80.2	-33.9	n/a	n/a
Depreciation and amortisation	16.5	16.4	n/a	n/a
Share-based compensation	5.8	4.1	n/a	n/a
Dividends paid	3.6	3.6	n/a	n/a
Dividend per share	$0.08	$0.06	n/a	n/a
Diluted shares, weighted	61m	61m	n/a	n/a
Shares outstanding at period end	60m	60m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Shareholders' equity	1,708	1,641	n/a	n/a
Non-controlling interest	41.5	41.6	n/a	n/a
Debt	1,080	993	n/a	n/a
Operating lease liabilities	70.2	74.0	n/a	n/a
Other liabilities	1,068	1,078	n/a	n/a
Total liabilities and equity	3,967	3,827	n/a	n/a
Fixed assets	287	290	n/a	n/a
Goodwill	1,584	1,587	n/a	n/a
Intangible assets	477	484	n/a	n/a
Cash and equivalents	228	76.5	n/a	n/a
Receivables	431	430	n/a	n/a
Inventory	427	406	n/a	n/a
Other assets	533	554	n/a	n/a
Total assets	3,967	3,827	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	681	689	690	707	673	671	678	716	728	721	746	808
Cost of revenue	431	435	435	437	419	412	423	450	459	463	470	500
Gross profit	250	255	255	270	254	258	255	266	269	258	275	307
Gross margin	37%	37%	37%	38%	38%	39%	38%	37%	37%	36%	37%	38%
R&D	9.0	10.7	10.1	9.7	9.2	10.2	10.1	10.5	10.5	12.9	12.5	13.3
SG&A	145	145	142	146	146	145	141	156	158	154	174	210
Operating income	101	104	111	119	106	111	110	109	107	86.6	90.5	78.7
Operating margin	15%	15%	16%	17%	16%	17%	16%	15%	15%	12%	12%	10%
Pre-tax income	80.6	77.5	81.4	103	89.1	96.5	93.1	88.1	83.0	64.1	64.9	48.1
Tax rate	25%	23%	23%	17%	20%	24%	22%	21%	21%	20%	20%	24%
Net income	57.6	50.2	60.0	82.9	68.2	53.7	67.4	66.9	54.8	37.7	47.6	32.4
Net margin	8%	7%	9%	12%	10%	8%	10%	9%	8%	5%	6%	4%
Diluted EPS	$0.94	$0.83	$0.98	$1.35	$1.11	$0.88	$1.10	$1.09	$0.90	$0.61	$0.78	$0.50
Operating cash flow	107	122	44.5	83.0	101	127	35.4	46.6	81.5	97.1	46.9	33.4
Capital expenditure	11.9	19.3	7.4	9.0	10.6	24.7	7.3	9.2	11.2	19.6	13.7	17.7
Free cash flow	95.5	103	37.1	74.0	90.4	102	28.1	37.4	70.3	77.4	33.2	15.7
Dividends paid	3.6	3.6	3.6	3.6	4.9	4.9	4.9	4.9	6.1	6.1	6.1	6.1
Shares outstanding	60m	60m	60m	60m	60m	61m	61m	61m	61m	61m	61m	62m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 28 June 2024, filed 2 August 2024, accession 0001877322-24-000120: the filing on EDGAR. All of Esab Corp.'s filings: EDGAR company page.

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