ESAB Corporation Confirms Fourth Quarter And Full Year 2025 Results (Form 8-K)

ESAB Corporation Confirms Fourth Quarter And Full Year 2025 Results

North Bethesda, MD, February 20, 2026 -- ESAB Corporation ("ESAB" or the "Company") (NYSE: ESAB), a focused premier industrial compounder, today announced financial results for the fourth quarter and full year of 2025, consistent with preliminary results provided on February 2, 2026.

ESAB reported fourth quarter sales of $721 million, an increase of 7% on a reported basis or a decrease of 2% in core organic sales before acquisitions and currency translation impacts, as compared to the same period prior year. ESAB also reported fourth quarter net income from continuing operations attributable to ESAB of $50 million or $0.82 diluted earnings per share and core adjusted net income of $83 million or $1.35 diluted earnings per share. Core adjusted EBITDA for the fourth quarter of $140 million rose 9% and margins expanded 10 basis points to 20.4%, both as compared to the prior year quarter.

ESAB reported full year 2025 sales of $2,843 million, an increase of 4% on a reported basis or flat core organic sales before acquisitions and currency translation impacts, as compared to the prior year. ESAB also reported full year 2025 net income from continuing operations attributable to ESAB of $259 million or $4.10 diluted earnings per share and core adjusted net income of $324 million or $5.27 diluted earnings per share. Core adjusted EBITDA for the full year of $540 million rose 6% and margins expanded 30 basis points to 20.0%, both as compared to the prior year.

ESAB Full Year 2026 Outlook

Consistent with 2026 guidance released on February 2, 2026, ESAB expects core organic growth of 2.0% to 4.0% and total core sales growth of 6.0% to 9.0% for the full year 2026, which reflects a 0.0% to 1.0% currency tailwind and approximately 4% M&A growth. ESAB is expecting core adjusted EBITDA of $575 to $595 million and core adjusted EPS of $5.70 to $5.90 for the full year 2026.

About ESAB

Founded in 1904, ESAB is a focused premier industrial compounder. The Company's rich history of innovative products, workflow solutions and business system ESAB Business Excellence, enables its purpose of Shaping the world we imagineTM. ESAB is based in North Bethesda, Maryland and employs approximately 10,300 associates and serves customers in approximately 150 countries. To learn more, visit www.ESABcorporation.com.

Non-GAAP Financial Measures and Other Adjustments

ESAB has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America ("non-GAAP"). ESAB presents some of these non-GAAP financial measures including and excluding Russia due to economic and political volatility caused by the war in Ukraine, which results in enhanced investor interest in this information. Core non-GAAP financial measures excludes Russia for the three months and year ended December 31, 2025 and 2024. These non-GAAP financial measures may include one or more of the following: adjusted net income from continuing operations, Core adjusted net income from continuing operations, adjusted EBITDA (earnings before interest, taxes, Pension settlement loss, Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value charges on acquired inventories and depreciation and other amortization), Core adjusted EBITDA, organic sales, Core organic sales, adjusted free cash flow and ratios based on the foregoing measures. ESAB also provides adjusted EBITDA and adjusted EBITDA margin on a segment basis, as well as Core adjusted EBITDA and Core adjusted EBITDA margin on a segment basis.

Adjusted net income from continuing operations represents Net income from continuing operations attributable to ESAB Corporation, excluding Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value charges on acquired inventories and Pension settlement loss. Adjusted net income includes the tax effect of non-GAAP adjusting items at applicable tax rates and excludes the impact of discrete tax charges or gains in each period. ESAB also presents adjusted net income margin from continuing operations, which is subject to the same adjustments as adjusted net income from continuing operations. Adjusted net income per diluted share from continuing operations is a calculation of adjusted net income from continuing operations over the weighted-average diluted shares outstanding. ESAB also presents Core adjusted net income from continuing operations and Core adjusted net income per share - diluted from continuing operations, which are subject to the same adjustments as Adjusted net income from

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continuing operations and Adjusted net income per diluted share from continuing operations, further removing the impact of Russia for the three months and years ended December 31, 2025 and 2024.

Adjusted EBITDA excludes from Net income from continuing operations the effect of Income tax expense, Interest expense and other, net, Pension settlement loss, Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value charges on acquired inventories and depreciation and other amortization. ESAB presents adjusted EBITDA margin, which is subject to the same adjustments as adjusted EBITDA. Further, ESAB presents these non-GAAP performance measures on a segment basis, which excludes the impact of Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value charges on acquired inventories and depreciation and other amortization from operating income. ESAB also presents Core adjusted EBITDA and Core adjusted EBITDA margin, which are subject to the same adjustments as Adjusted EBITDA and Adjusted EBITDA margin, respectively, further removing the impact of Russia for the three months and years ended December 31, 2025 and 2024.

ESAB presents organic sales, which excludes the impact of acquisitions and foreign exchange rate fluctuations, and presents core organic sales, which further excludes the impact of the Russia business for the three months and years ended December 31, 2025 and 2024.

Adjusted free cash flow represents cash flows from operating activities excluding cash outflows related to discontinued operations, proceeds from sale of certain properties and acquisition-related payments less Purchases of property, plant and equipment.

These non-GAAP financial measures assist ESAB management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to unusual events or discrete restructuring plans and other initiatives that are fundamentally different from the ongoing productivity and core business of the Company.

ESAB management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.