ESAB Corporation's stock plunged 5.06% intraday on Thursday, despite reporting strong financial results for the fourth quarter of 2024. The company's Q4 revenue of $671 million and adjusted earnings per share of $1.28 exceeded analysts' expectations, driven by growth in welding equipment sales and record profit margins.
However, ESAB's full-year 2025 guidance fell short of analysts' estimates, sparking concerns among investors. The company forecasts core organic growth of 0.0% to 2.0% and total core sales growth of (2.0)% to 0.0% for 2025, citing currency headwinds of around 3.5%. Additionally, ESAB's guidance for core adjusted EBITDA of $515 million to $530 million and core adjusted EPS of $5.10 to $5.25 fell below analysts' expectations.
ESAB also announced the completion of the acquisition of SUMIG, a South American light automation and equipment business, and the signing of an agreement to acquire Bavaria Schweisstechnik GmbH, a European consumables business. These strategic moves aim to expand ESAB's product portfolio and geographic reach, but their financial impact remains uncertain.