ESAB ESAB Corp

Overview and Growth

ESAB Corp generated $2.84B of revenue in fiscal 2025, with net income of $226.77M and an operating cash inflow of $260.57M. At $2.84B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 3.7% from $2.74B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $3.67, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 14.8% decrease from fiscal 2024 diluted EPS of $4.31. Asset turnover was 0.6x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $1.05B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 36.9% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $412.17M of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 14.5% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $226.77M, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 8.0% margin after operating costs and the remaining recognized items. The earnings statement records $328.26M of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 11.5%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $69.16M, providing the reported tax component that separates pretax and after-tax earnings. Relative to pretax income, the tax provision measured 21.1%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

At period end, the $4.77B asset base was financed through $2.55B of liabilities and $2.21B of equity. Current assets were $1.26B against $664.79M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 1.9x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $185.86M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 28.0% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $1.23B of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.56x, placing the company’s financial leverage in clear balance-sheet terms. Relative to total assets, debt measured 25.9%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 53.6%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 3.9%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

The company reported $260.57M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 1.15x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $47.29M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 18.1%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $213.28M, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 7.5%, showing how much sales converted into cash after investment. Free cash flow equaled 4.5% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.