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Esab (ESAB) FY2025 results: revenue $2.8 billion, up 3.7% on the year

Esab Corp. (ESAB) reported revenue of $2.8 billion for fiscal 2025, the year ended 31 December 2025, up 3.7% on the year before. Net income was $227 million, down 14.4%, and diluted earnings per share $3.67. The figures are the company's own, from the 10-K it filed with the SEC on 20 February 2026.

Revenue
$2.8 billion
+3.7% on the year
FY2020FY2025
Operating margin
14.5%
16.3% a year earlier
FY2020FY2025
Net income
$227 million
-14.4% on the year
FY2020FY2025
Diluted EPS
$3.67
-14.8% on the year
FY2020FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 4 kept.

  • Q4 sales up 7% reported: Fourth quarter sales were $721 million, up 7% reported. Core organic sales fell 2%, before acquisitions and currency effects.
  • Full-year sales flat on core organic basis: Full-year sales were $2,843 million, up 4% reported and flat on core organic sales, with acquisitions and currency adding to the reported increase.
  • Q4 core adjusted EBITDA up 9%: Fourth quarter core adjusted EBITDA was $140 million, up 9%, with margin up 10 basis points to 20.4%.
  • Full-year core adjusted EBITDA up 6%: Full-year core adjusted EBITDA was $540 million, up 6%, with margin up 30 basis points to 20.0%.
  • Americas organic sales declined: Americas fourth quarter organic sales fell 4.9%, with total sales down 2.8% reported to $274.2 million.
Read the Q4 FY2025 earnings call summary

From this 10-K

ESAB, founded in 1904, makes equipment and consumables for welding and cutting metal, along with gas control equipment, robotics and digital solutions for fabrication. It formulates, develops, manufactures and supplies consumable products and equipment, including cutting, joining and welding robotics. Its products are sold under several brand names, most notably ESAB, to customers in approximately 150 countries. It is based in North Bethesda, Maryland.

Esab Corp., the 10-K for 2025

ESAB, founded in 1904, makes equipment and consumables for welding and cutting metal, along with gas control equipment, robotics and digital solutions for fabrication. It formulates, develops, manufactures and supplies consumable products and equipment, including cutting, joining and welding robotics. Its products are sold under several brand names, most notably ESAB, to customers in approximately 150 countries. It is based in North Bethesda, Maryland.

What it sells

The business divides into consumables, the products used up in welding and cutting, and the equipment that uses them, and consumables are the larger part of sales. Some of its gas control products relate to medical devices and are regulated by the U.S. Food and Drug Administration and the European Union Medical Device Regulation. The company defines its market as fabrication technology and gas control equipment, plus new products in automation, software and services.

How it is organized

It reports two segments by geography: the Americas, covering North and South America, and EMEA & APAC, covering Europe, the Middle East, India, Africa and Asia Pacific. Its principal markets outside the United States are Europe, Asia Pacific, South America and the Middle East. It sells through independent distributors and its own salespeople, depending on geography and end market, and its customer base is spread across many industrial sectors. The markets it serves are fragmented, and the company states that no single company competes with it across all of them. Lincoln Electric and the welding business of Illinois Tool Works also serve its markets.

How it runs

The company has been built through acquisitions as well as organic growth, and it completed four acquisitions in 2025. It runs its operations under a management system it calls ESAB Business Excellence, or EBXai, a set of tools and processes for continuous improvement. Its main raw materials are steel, iron, copper and aluminum, generally bought from more than one supplier. Its European operations typically slow down during the July and August vacation season. The majority of its operations hold ISO 9001, ISO 14001 and ISO 45001 certification for quality, environmental and occupational health and safety management.

Corporate and people

ESAB was organized as a Delaware corporation in 2021 and became an independent public company, listed on the New York Stock Exchange, on April 4, 2022. As of December 31, 2025 it employed approximately 10,300 associates, approximately 1,100 of them in the United States. Approximately 22% of its U.S. associates are covered by collective bargaining agreements, and approximately 39% of those outside the U.S. are represented by trade unions and work councils.

From ESAB's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 20 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue2,8432,7412,775+3.7%
Cost of revenue1,7941,7031,759+5.3%
Gross profit1,0481,0371,016+1.0%
Gross margin36.9%37.9%36.6%
Research and development44.039.238.8+12.2%
Selling, general and administrative608580587+4.9%
Operating income412447404-7.9%
Operating margin14.5%16.3%14.6%
Pre-tax income328370319-11.4%
Income tax69.277.395.7-10.6%
Effective tax rate21.1%20.9%30.0%
Net income227265205-14.4%
Net margin8.0%9.7%7.4%
Diluted EPS$3.67$4.31$3.36-14.8%
$ million except per share.
Read moreFree 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

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow261355330-26.7%
Capital expenditure47.351.848.2-8.7%
Free cash flow213304282-29.8%
Free cash flow margin7.5%11.1%10.2%
Cash from investing-480-206-62.2
Cash from financing11431.7-220+259.0%
Depreciation and amortisation84.166.875.0+25.9%
Share-based compensation16.919.816.1-14.4%
Dividends paid21.917.013.3+29.0%
Dividend per share$0.38$0.30$0.23+26.7%
Diluted shares, weighted61m61m61m+0.3%
Shares outstanding at period end61m61m60m+0.3%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity2,1661,7691,607+22.4%
Non-controlling interest45.539.240.3+15.9%
Debt1,2331,0761,018+14.6%
Operating lease liabilities88.166.076.6+33.5%
Other liabilities1,2341,0841,086+13.8%
Total liabilities and equity4,7664,0343,829+18.1%
Fixed assets382298294+28.0%
Goodwill1,9501,6521,588+18.0%
Intangible assets673488500+37.9%
Cash and equivalents186249102-25.5%
Receivables451370385+21.9%
Inventory482404393+19.3%
Other assets643572566+12.3%
Total assets4,7664,0343,829+18.1%

10-K for the year ended 31 December 2025, filed 20 February 2026: the filing.