Earnings per Share from Continuing Operations
The Company has unvested share-based payment awards with a right to receive non-forfeitable dividends that are considered participating securities. The Company allocates earnings to participating securities and computed earnings per share using the two-class method as follows:
Year Ended December 31,
202520242023
(In thousands, except share and per share data)
Computation of earnings per share from continuing operations – basic:
Income from continuing operations attributable to ESAB Corporation(1)
$252,637 $287,151 $217,626 
Distributed and undistributed earnings allocated to nonvested shares(1,218)(1,370)(1,555)
Income from continuing operations attributable to common stockholders$251,419 $285,781 $216,071 
Weighted-average shares of Common stock outstanding – basic
60,680,448 60,427,743 60,233,623 
Income per share from continuing operations – basic
$4.14 $4.73 $3.59 
Computation of earnings per share from continuing operations – diluted:
Income from continuing operations attributable to common stockholders$251,419 $285,781 $216,071 
Weighted-average shares of Common stock outstanding – basic
60,680,448 60,427,743 60,233,623 
Net effect of potentially dilutive securities(2)
585,846 674,320 422,123 
Weighted-average shares of Common stock outstanding – dilution
61,266,294 61,102,063 60,655,746 
Net income per share from continuing operations – diluted
$4.10 $4.68 $3.56 
(1) Net income from continuing operations attributable to ESAB Corporation for the respective periods is calculated using Net income from continuing operations, less Income attributable to noncontrolling interest, net of taxes, of $6.5 million, $5.9 million and $5.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.
(2) Potentially dilutive securities include stock options, performance-based restricted stock units and nonperformance-based restricted stock units.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 20, 2025
2023Feb 29, 2024
2022Mar 7, 2023

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.