ESAB Corp (ESAB, Financial), a premier narrowly diversified industrial company, announced its financial results for the third quarter of 2023 on November 1, 2023. The company reported record third quarter sales of $681 million, marking a 10% increase on a reported basis or 7% higher core organic growth before acquisitions and currency translation impacts, compared to the prior year.
Financial Highlights
ESAB reported a net income from continuing operations attributable to ESAB of $59 million or $0.97 diluted earnings per share and core adjusted net income of $66 million or $1.08 diluted earnings per share. The company's core adjusted EBITDA of $118 million rose 23% and margins expanded 170 basis points to 18.3%, both as compared to the prior year quarter.
CEO Commentary
Shyam P. Kambeyanda, President and CEO of ESAB Corporation, commented on the results, stating,
ESAB delivered another impressive quarter characterized by organic growth, margin expansion, and cash flow, confidently propelling us closer to our long-term objectives."He also highlighted the company's successful unveiling of cutting-edge equipment and automation solutions at trade shows, and the resilience of their end markets.
Outlook for 2023
Based on the year-to-date results and continued momentum entering the fourth quarter, ESAB has raised and narrowed its full-year 2023 guidance. The company now expects total core sales growth of 6.5% to 7.5%, core organic sales growth of 5.0% to 6.0%, core adjusted EBITDA of $465 to $475 million, and core adjusted EPS of $4.30 to $4.40.
Financial Tables Summary
The company's consolidated and combined condensed statements of operations showed a net sales increase from $620,265 in Q3 2022 to $680,996 in Q3 2023. The gross profit also increased from $209,338 in Q3 2022 to $249,714 in Q3 2023. The net income attributable to ESAB Corporation increased from $52,354 in Q3 2022 to $57,570 in Q3 2023.
The reconciliation of GAAP to non-GAAP financial measures showed an increase in adjusted net income from continuing operations from $62.2 million in Q3 2022 to $69.0 million in Q3 2023. The adjusted net income per share diluted from continuing operations also increased from $1.03 in Q3 2022 to $1.13 in Q3 2023.
Explore the complete 8-K earnings release (here) from ESAB Corp for further details.
