ESAB (ESAB) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 sales reached $721 million, up 7% reported but down 2% in core organic sales year-over-year.

• Net income from continuing operations for Q4 was $50 million ($0.82 diluted EPS); core adjusted net income was $83 million ($1.35 diluted EPS).

• Full year 2025 sales totaled $2,843 million, up 4% reported and flat in core organic sales versus 2024.

• Full year net income from continuing operations was $259 million ($4.10 diluted EPS); core adjusted net income was $324 million ($5.27 diluted EPS).

• Core adjusted EBITDA for 2025 was $540 million, up 6% year-over-year, with margins expanding 30 basis points to 20.0%.

Financial highlights

• Q4 gross profit was $257.8 million; full year gross profit was $1,048.3 million.

• Q4 operating income was $86.6 million; full year operating income was $412.2 million.

• Adjusted net income margin for 2025 was 11.7%.

• Adjusted free cash flow for 2025 was $246.1 million, down from $320.5 million in 2024.

• Cash and cash equivalents at year-end 2025 were $185.9 million.

Outlook and guidance

• 2026 core organic growth expected at 2.0%–4.0%; total core sales growth at 6.0%–9.0%.

• Currency tailwind of 0.0%–1.0% and M&A growth of ~4% anticipated.

• 2026 core adjusted EBITDA projected at $575–$595 million; core adjusted EPS at $5.70–$5.90.