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ESAB Corporation (ESAB) Financials

ESAB
FY2025 annual
Revenue $2.8B +3.7% YoY
Net Income $226.8M -14.4% YoY
EPS (Diluted) $3.67 -14.8% YoY
Free Cash Flow $213.3M -29.8% YoY
Market Cap $4.1B as of Oct 21, 2026
Price / Sales 1.5x on $2.8B revenue, FY2025
Price / Earnings 18.2x on $226.8M net income, FY2025
Price / Book 1.6x on $2.5B equity, Q3 FY2026

A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 21, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period Q3 FY2026, ended Jul 3, 2026 Reported Currency USD FYE December

Newest figures come from the 10-Q for Q3 FY2026, filed Aug 6, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the ESAB SEC filings page.

ESAB Corporation (ESAB) reported $2.8B in revenue for fiscal year 2025, up 3.7% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 6 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI ESAB FY2025

ESAB’s 2025 growth was modest, while higher working-capital needs and investment outflows reduced cash conversion and profit margins.

Revenue rose 3.7% while operating cash flow fell 26.7%, indicating that additional sales consumed more cash rather than converting cleanly into it. The gap aligns with inventory and receivables increasing together, tying more money to the operating cycle.

Gross margin slipped from 37.9% to 36.9%, while operating margin fell from 16.3% to 14.5%. Because selling, general and administrative expense grew 4.9% against revenue growth of 3.7%, the margin pressure reflects costs rising faster than sales rather than weaker volume alone.

The balance sheet remains less leveraged relative to equity at 0.6x debt to equity, despite long-term debt reaching $1.23B. However, investing cash flow of -$480M was far larger than capital expenditures of $47M, showing that 2025’s cash deployment extended well beyond routine property investment while free cash flow fell to $213M.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity CashFlow Returns 57 / 100
Financial Health Score 57/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group, and the overall is the average of the dimensions that can be computed. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of ESAB Corporation's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
80

ESAB Corporation has an operating margin of 14.5%, meaning the company retains $14 of operating profit per $100 of revenue. This strong profitability earns a score of 80/100, reflecting efficient cost management and pricing power. This is down from 16.3% the prior year.

Growth
34

ESAB Corporation's revenue grew a modest 3.7% year-over-year to $2.8B. This slow but positive growth earns a score of 34/100.

Leverage
30

ESAB Corporation has a moderate D/E ratio of 0.57. This balance of debt and equity financing earns a leverage score of 30/100.

Liquidity
56

ESAB Corporation's current ratio of 1.90 indicates adequate short-term liquidity, earning a score of 56/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow
64

ESAB Corporation has a free cash flow margin of 7.5%, earning a moderate score of 64/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
78

ESAB Corporation earns a strong 10.5% return on equity (ROE), meaning it generates $10 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 78/100. This is down from 15.0% the prior year.

Altman Z-Score Grey Zone
2.24

ESAB Corporation scores 2.24, placing it in the grey zone between 1.81 and 2.99. The largest contribution to the score comes from a market capitalization of $4.1B against total liabilities of $2.6B. This signals moderate financial risk that warrants monitoring.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Neutral
5/9

ESAB Corporation passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed
1.15x

For every $1 of reported earnings, ESAB Corporation generates $1.15 in operating cash flow ($260.6M OCF vs $226.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

Revenue
$807.6M
YoY+12.9%
QoQ+8.3%
5Y CAGR+5.1%

ESAB Corporation generated $807.6M in revenue in Q3 2026. This represents an increase of 12.9% from the same quarter a year earlier. Against the prior quarter it is up 8.3%.

EBITDA
$106.6M
YoY-17.0%
QoQ-6.8%
5Y CAGR+1.0%

ESAB Corporation's EBITDA was $106.6M in Q3 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 17.0% from the same quarter a year earlier. Against the prior quarter it is down 6.8%.

Net Income
$32.4M
YoY-51.6%
QoQ-32.1%
5Y CAGR-16.0%

ESAB Corporation reported $32.4M in net income in Q3 2026. This represents a decrease of 51.6% from the same quarter a year earlier. Against the prior quarter it is down 32.1%.

EPS (Diluted)
$0.50
YoY-54.1%
QoQ-35.9%
5Y CAGR-17.3%

ESAB Corporation earned $0.50 per diluted share (EPS) in Q3 2026. This represents a decrease of 54.1% from the same quarter a year earlier. Against the prior quarter it is down 35.9%.

Cash & Balance Sheet

Free Cash Flow
$15.7M
YoY-58.1%
QoQ-52.8%
5Y CAGR-21.8%

ESAB Corporation generated $15.7M in free cash flow in Q3 2026, representing cash available after capex. This represents a decrease of 58.1% from the same quarter a year earlier. Against the prior quarter it is down 52.8%.

Cash & Debt
$217.5M
YoY-15.8%
QoQ-78.4%
5Y CAGR+37.3%

ESAB Corporation held $217.5M in cash against $2.4B in long-term debt as of Q3 2026.

Dividends Per Share
$0.12
YoY+20.0%
QoQ+20.0%

ESAB Corporation paid $0.12 per share in dividends in Q3 2026. This represents an increase of 20.0% from the same quarter a year earlier. Against the prior quarter it is up 20.0%.

Shares Outstanding
62M
YoY+2.4%
QoQ+2.1%

ESAB Corporation had 62M shares outstanding in Q3 2026. This represents an increase of 2.4% from the same quarter a year earlier. Against the prior quarter it is up 2.1%.

Margins & Returns

Gross Margin
38.0%
YoY+0.9pp
QoQ+1.1pp
5Y change+3.4pp

ESAB Corporation's gross margin was 38.0% in Q3 2026, indicating the percentage of revenue retained after direct costs. This is up 0.9 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.1 percentage points.

Operating Margin
9.8%
YoY-5.5pp
QoQ-2.4pp
5Y change-3.3pp

ESAB Corporation's operating margin was 9.8% in Q3 2026, reflecting core business profitability. This is down 5.5 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.4 percentage points.

Net Margin
4.0%
YoY-5.3pp
QoQ-2.4pp
5Y change-8.3pp

ESAB Corporation's net profit margin was 4.0% in Q3 2026, showing the share of revenue converted to profit. This is down 5.3 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.4 percentage points.

Return on Equity
1.3%
YoY-2.0pp
QoQ-0.9pp
5Y change-1.8pp

ESAB Corporation's quarterly ROE was 1.3% in Q3 2026: one quarter's net income over shareholder equity, not annualized. This is down 2.0 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.9 percentage points.

Capital Allocation

R&D Spending
$13.3M
YoY+26.7%
QoQ+6.4%
5Y CAGR+5.2%

ESAB Corporation invested $13.3M in research and development in Q3 2026. This represents an increase of 26.7% from the same quarter a year earlier. Against the prior quarter it is up 6.4%.

Capital Expenditures
$17.7M
YoY+93.3%
QoQ+29.5%
5Y CAGR+23.6%

ESAB Corporation invested $17.7M in capex in Q3 2026, funding long-term assets and infrastructure. This represents an increase of 93.3% from the same quarter a year earlier. Against the prior quarter it is up 29.5%.

Share Buybacks

Not reported for Q3 2026.

ESAB Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

ESAB quarterly income statement
MetricQ3'2610-QQ2'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ4'2410-KQ3'2410-QQ2'2410-Q
Revenue$807.6M+12.9%$745.6M+9.9%$727.8M+8.5%$715.6M+6.3%$678.1M-4.1%$670.8M-2.7%$673.3M-1.1%$707.1M-1.9%
Cost of Revenue$500.4M+11.3%$470.5M+11.2%$458.5M+11.2%$449.5M+7.2%$422.9M-3.2%$412.4M-5.1%$419.5M-2.7%$436.7M-4.3%
Gross Profit$307.2M+15.5%$275.1M+7.8%$269.3M+4.2%$266.0M+4.8%$255.2M-5.6%$258.3M+1.4%$253.8M+1.6%$270.3M+2.4%
R&D Expenses$13.3M+26.7%$12.5M+23.8%$10.5M+2.9%$10.5M+14.1%$10.1M+4.1%$10.2M-4.7%$9.2M+2.2%$9.7M+2.1%
SG&A Expenses$210.2M+35.1%$174.5M+23.9%$158.3M+9.0%$155.6M+6.6%$140.9M-3.6%$145.2M+0.4%$145.9M+0.3%$146.2M-2.6%
Operating Income$78.7M-27.8%$90.5M-17.6%$106.6M-4.3%$109.1M+2.9%$109.8M-8.0%$111.4M+7.4%$106.0M+4.8%$119.4M+9.9%
EBITDA$106.6M-17.0%$114.3M-10.2%$128.5M+0.2%$128.4M+4.3%$127.3M-6.3%$128.2M+5.4%$123.1M+3.7%$135.9M+7.6%
Income Tax$11.7M-36.0%$13.1M-36.0%$17.7M-22.7%$18.3M+1.2%$20.5M+14.6%$22.9M+27.7%$18.1M-8.8%$17.9M-14.7%
Net Income$32.4M-51.6%$47.6M-29.3%$54.8M+2.1%$66.9M-2.0%$67.4M-18.7%$53.7M+7.0%$68.2M+18.5%$82.9M+26.4%
EPS (Basic)$0.50-54.5%$0.78-29.1%$0.90+2.3%$1.10-1.8%$1.10-19.1%$0.88+6.0%$1.12+17.9%$1.36+25.9%
EPS (Diluted)$0.50-54.1%$0.78-29.1%$0.90+3.4%$1.09-1.8%$1.10-18.5%$0.87+6.1%$1.11+18.1%$1.35+26.2%
Diluted Shares (Avg)62M+0.5%61M0.0%61M61M+0.4%61M+0.3%N/A61M+0.6%61M+0.9%

Not reported in any period shown, so not listed: Interest Expense.

ESAB Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

ESAB quarterly balance sheet
MetricQ3'2610-QQ2'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ4'2410-KQ3'2410-QQ2'2410-Q
Total Assets$6.6B+48.1%$5.6B+33.4%$4.9B+20.7%$4.4B+8.5%$4.2B+6.3%$4.0B+5.4%$4.1B+8.7%$4.0B+2.7%
Current Assets$1.5B+14.4%$2.2B+68.7%$1.3B+16.1%$1.3B+9.4%$1.3B+6.1%$1.1B+15.1%$1.2B+18.6%$1.2B+13.2%
Cash & Equivalents$217.5M-15.8%$1.0B+244.9%$218.2M-12.5%$258.2M+1.8%$291.3M+27.5%$249.4M+144.5%$253.7M+206.2%$228.5M+206.9%
Short-Term Investments$0n/m$0n/m$0n/m$0n/m$0n/m$0n/m$0n/m$0n/m
Inventory$581.5M+22.7%$520.6M+15.5%$503.7M+24.8%$474.1M+12.2%$450.7M+5.7%$403.7M+2.8%$422.7M-0.7%$426.5M-4.7%
Accounts Receivable$554.1M+21.5%$488.5M+17.8%$460.5M+24.3%$456.1M+8.4%$414.8M-3.8%$370.3M-3.9%$420.9M+8.4%$431.2M+4.5%
Long-Term Investments$0n/m$0n/m$0n/m$0n/m$0n/m$0n/m$0n/m$0n/m
Goodwill$2.7B+53.4%$1.9B+14.6%$2.0B+18.8%$1.8B+7.3%$1.7B+6.4%$1.7B+4.0%$1.7B+7.3%$1.6B-0.1%
Total Liabilities$4.0B+71.4%$3.4B+49.5%$2.7B+21.6%$2.3B+5.2%$2.3B+2.2%$2.2B+2.1%$2.2B-0.4%$2.2B-4.2%
Current Liabilities$779.0M+13.5%$730.0M+8.6%$669.1M+5.9%$686.5M+7.8%$672.0M+3.2%$632.1M+1.9%$637.1M+4.4%$651.1M+5.3%
Non-Current Liabilities$3.2B+95.8%$2.7B+66.7%$2.0B+27.9%$1.6B+4.1%$1.6B+1.8%$1.6B+2.1%$1.6B-2.2%$1.6B-7.7%
Long-Term Debt$2.4B+125.8%$2.0B+92.4%$1.3B+25.8%$1.1B-2.0%$1.1B-2.2%$1.1B+4.2%$1.1B-0.8%$1.1B-6.9%
Total Equity$2.5B+22.7%$2.2B+14.7%$2.1B+19.6%$2.1B+12.7%$1.9B+11.8%$1.8B+10.1%$1.8B+22.4%$1.7B+13.4%
Retained Earnings$865.8M+20.2%$842.3M+27.7%$769.2M+28.8%$720.5M+31.4%$659.7M+36.0%$597.2M+70.4%$548.3M+80.4%$484.9M+93.9%

ESAB Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

ESAB quarterly cash flow statement
MetricQ3'2610-QQ2'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ4'2410-KQ3'2410-QQ2'2410-Q
Operating Cash Flow$33.4M-28.3%$46.9M+32.5%$81.5M-35.8%$46.6M-53.9%$35.4M-57.3%$126.9M+3.7%$101.0M-5.9%$83.0M+32.5%
Depreciation & Amortization$27.9M+44.0%$23.9M+36.5%$21.9M+30.6%$19.4M+13.2%$17.5M+5.7%$16.8M-6.6%$17.1M-2.5%$16.5M-6.5%
Stock-Based CompensationN/A$3.9M-26.4%N/AN/A$5.4MN/AN/AN/A
Capital Expenditures$17.7M+93.3%$13.7M+87.9%$11.2M-54.8%$9.2M-13.7%$7.3M-19.2%$24.7M+27.9%$10.6M-10.4%$9.0M-2.9%
Free Cash Flow$15.7M-58.1%$33.2M+18.1%$70.3M-31.2%$37.4M-58.6%$28.1M-62.0%$102.2M-0.9%$90.4M-5.3%$74.0M+38.7%
Investing Cash Flow-$1.5Bn/m-$13.4Mn/m-$363.6Mn/m-$95.8Mn/m-$2.7Mn/m-$91.5Mn/m-$77.3Mn/m-$10.3Mn/m
Financing Cash Flow$661.8Mn/m$786.2Mn/m$246.9Mn/m-$6.5Mn/m-$13.1M-116.4%-$8.9Mn/m-$5.7Mn/m$80.2Mn/m
Dividends Paid$6.1M+25.5%$6.1M+25.3%$6.1M+25.4%$4.9M+0.2%$4.9M+33.4%$4.9M+33.4%$4.9M+33.4%$3.6M+20.3%

Not reported in any period shown, so not listed: Share Buybacks.

ESAB Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

ESAB quarterly financial ratios
MetricQ3'2610-QQ2'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ4'2410-KQ3'2410-QQ2'2410-Q
Gross Margin38.0%+0.9pp36.9%-0.7pp37.0%-1.5pp37.2%-0.5pp37.6%-0.6pp38.5%+1.6pp37.7%+1.0pp38.2%+1.6pp
Operating Margin9.8%-5.5pp12.1%-4.1pp14.6%-2.0pp15.3%-0.5pp16.2%-0.7pp16.6%+1.6pp15.8%+0.9pp16.9%+1.8pp
Net Margin4.0%-5.3pp6.4%-3.5pp7.5%-0.5pp9.3%-0.8pp9.9%-1.8pp8.0%+0.7pp10.1%+1.7pp11.7%+2.6pp
Return on Equity1.3%-2.0pp2.2%-1.4pp2.6%-0.5pp3.2%-0.5pp3.5%-1.3pp3.0%-0.1pp3.7%-0.1pp4.9%+0.5pp
Return on Assets0.5%-1.0pp0.9%-0.8pp1.1%-0.2pp1.5%-0.2pp1.6%-0.5pp1.3%0.0pp1.7%+0.1pp2.1%+0.4pp
Current Ratio1.960.0x2.97+1.1x1.99+0.2x1.950.0x1.91+0.1x1.82+0.2x1.92+0.2x1.86+0.1x
Debt-to-Equity0.94+0.4x0.93+0.4x0.630.0x0.51-0.1x0.55-0.1x0.600.0x0.59-0.1x0.63-0.1x
Liabilities-to-Equity1.57+0.4x1.55+0.4x1.280.0x1.12-0.1x1.19-0.1x1.26-0.1x1.20-0.3x1.30-0.2x
Asset Turnover0.120.0x0.130.0x0.150.0x0.160.0x0.160.0x0.170.0x0.160.0x0.180.0x
FCF Margin1.9%-3.3pp4.5%+0.3pp9.7%-5.6pp5.2%-8.2pp4.2%-6.3pp15.2%+0.3pp13.4%-0.6pp10.5%+3.0pp

Similar Companies

Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.

Company Fiscal year Revenue Net income Net margin Market cap Health score
ESAB Corporation ESAB FY2025 $2.8B $226.8M 8.0% $4.1B 57/100
Worthington Enterprises, Inc. WOR FY2026 $1.4B $156.1M 11.3% $3.2B 46/100
ATI Inc. ATI FY2025 $4.6B $404.3M 8.8% $24.6B 57/100
Carpenter Technology Corp CRS FY2026 $3.1B $530.0M 17.0% $18.2B 69/100
Mueller Industries, Inc. MLI FY2025 $4.2B $765.2M 18.3% $12.7B 85/100
Insteel Industries, Inc. IIIN FY2025 $647.7M $41.0M 6.3% $588.3M 60/100

Frequently Asked Questions

What is ESAB Corporation's annual revenue?

ESAB Corporation (ESAB) reported $2.8B in total revenue for fiscal year 2025. This represents a 3.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is ESAB Corporation's revenue growing?

ESAB Corporation (ESAB) revenue grew by 3.7% year-over-year, from $2.7B to $2.8B in fiscal year 2025.

Is ESAB Corporation profitable?

Yes, ESAB Corporation (ESAB) reported a net income of $226.8M in fiscal year 2025, with a net profit margin of 8.0%.

ESAB Corporation (ESAB) reported diluted earnings per share of $3.67 for fiscal year 2025. This represents a -14.8% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

ESAB Corporation (ESAB) had EBITDA of $496.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, ESAB Corporation (ESAB) had $185.9M in cash and equivalents against $1.2B in long-term debt.

ESAB Corporation (ESAB) had a gross margin of 36.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

ESAB Corporation (ESAB) had an operating margin of 14.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

ESAB Corporation (ESAB) had a net profit margin of 8.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Yes, ESAB Corporation (ESAB) paid $0.38 per share in dividends during fiscal year 2025.

ESAB Corporation (ESAB) has a return on equity of 10.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

ESAB Corporation (ESAB) generated $213.3M in free cash flow during fiscal year 2025. This represents a -29.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

ESAB Corporation (ESAB) generated $260.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

ESAB Corporation (ESAB) had $4.8B in total assets as of fiscal year 2025, including both current and long-term assets.

ESAB Corporation (ESAB) invested $47.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

ESAB Corporation (ESAB) invested $44.0M in research and development during fiscal year 2025.

ESAB Corporation (ESAB) had 61M shares outstanding as of fiscal year 2025.

ESAB Corporation (ESAB) had a current ratio of 1.90 as of fiscal year 2025, which is generally considered healthy.

ESAB Corporation (ESAB) had a debt-to-equity ratio of 0.57 as of fiscal year 2025. We compute it as long-term debt divided by total shareholder equity, where long-term debt is the noncurrent part of the company's borrowings, so debt due within the next twelve months is not counted.

ESAB Corporation (ESAB) had a liabilities-to-equity ratio of 1.18 as of fiscal year 2025, which is total liabilities divided by total shareholder equity. Total liabilities counts every obligation on the balance sheet (payables, deposits, insurance reserves and deferred taxes as well as borrowings), so this ratio usually runs well above debt-to-equity.

ESAB Corporation (ESAB) had a return on assets of 4.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

ESAB Corporation (ESAB) trades at 18.2x earnings, its market capitalization divided by $226.8M net income, FY2025. The market capitalization is $4.1B as of Oct 21, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

ESAB Corporation (ESAB) trades at 1.5x sales, its market capitalization divided by $2.8B revenue, FY2025. The market capitalization is $4.1B as of Oct 21, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

ESAB Corporation (ESAB) has an Altman Z-Score of 2.24, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

ESAB Corporation (ESAB) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

ESAB Corporation (ESAB) has an earnings quality ratio of 1.15x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

ESAB Corporation (ESAB) scores 57 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is the average of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.

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