ESAB Corp 10-Q

Financial Statements (unaudited)

Item 1. Financial Statements ESAB CORPORATION CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS Dollars in thousands, except per share amounts (Unaudited) Three Months Ended Six Months Ended July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025 Net sales $ 807,627 $ 715,586 $ 1,553,224 $ 1,393,724 Cost of sales 500,416 449,539 970,901 872,475 Gross profit 307,211 266,047 582,323 521,249 Selling, general and administrative expense 210,169 155,563 384,641 296,421 Restructuring and other related charges 18,317 1,390 28,478 5,889 Operating income 78,725 109,094 169,204 218,939 Interest expense and other, net 30,623 20,999 56,200 37,781 Income from continuing operations before income taxes 48,102 88,095 113,004 181,158 Income tax expense 11,701 18,283 24,812 38,782 Net income from continuing operations 36,401 69,812 88,192 142,376 Loss from discontinued operations, net of taxes ( 2,413 ) ( 1,708 ) ( 4,967 ) ( 4,440 ) Net income 33,988 68,104 83,225 137,936 Income attributable to noncontrolling interest, net of taxes ( 1,634 ) ( 1,221 ) ( 3,227 ) ( 3,690 ) Net income attributable to ESAB Corporation 32,354 66,883 79,998 134,246 Mandatory convertible preferred stock dividends ( 1,390 ) — ( 1,390 ) — Net income attributable to common stockholders $ 30,964 $ 66,883 $ 78,608 $ 134,246 Earnings (loss) per share – basic Income from continuing operations $ 0.54 $ 1.13 $ 1.36 $ 2.28 Loss on discontinued operations ( 0.04 ) ( 0.03 ) ( 0.08 ) ( 0.07 ) Net income per share – basic $ 0.50 $ 1.10 $ 1.28 $ 2.21 Earnings (loss) per share – diluted Income from continuing operations $ 0.54 $ 1.12 $ 1.35 $ 2.26 Loss on discontinued operations ( 0.04 ) ( 0.03 ) ( 0.08 ) ( 0.07 ) Net income per share – diluted $ 0.50 $ 1.09 $ 1.27 $ 2.19 See Notes to Consolidated and Condensed Financial Statements. 2 ESAB CORPORATION CONSOLIDATED AND CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Dollars in thousands (Unaudited) Three Months Ended Six Months Ended July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025 Net income $ 33,988 $ 68,104 $ 83,225 $ 137,936 Other comprehensive income (loss): Foreign currency translation, net of tax (benefit) expense of $( 273 ), $( 7,250 ), $ 2,624 and $( 11,572 ) 7,885 102,218 ( 10,868 ) 181,548 Unrealized loss on derivatives designated and qualifying as cash flow hedges, net of tax benefit of $ — , $ — , $ — and $( 497 ) — — — ( 1,816 ) Defined benefit pension a