ESAB CorpESAB
ESAB Corp Segments Disclosure
Segment Information
The Company conducts its operations through two reportable segments. These segments consist of the “Americas,” which includes operations in North America and South America and “EMEA & APAC,” which includes Europe, the Middle East, India, Africa and Asia Pacific.
The Company’s management considers its Chief Operating Decision Maker (“CODM”) to be Shyam Kambeyanda, President, Chief Executive Officer and Director. The Company’s management and CODM evaluate the operating results of each reportable segment, including assessment of profit or loss, performance and allocation of resources, based upon Net sales and Adjusted EBITDA, which represents Net income from continuing operations excluding the impact of Income tax expense, Interest expense and other, net, Pension settlement loss, Restructuring and other related charges, acquisition transaction, due
diligence and integration expenses, amortization of intangibles and fair value charges on acquired inventories and depreciation and other amortization. Segment results reflect the allocation of overhead costs, which primarily consist of Selling, general and administrative expense.
The Company’s segment results are included in the table below.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
Net sales(1): | |||||||||||||||||
| Americas | $ | 1,130,338 | $ | 1,176,745 | $ | 1,214,998 | |||||||||||
| EMEA & APAC | 1,712,217 | 1,564,058 | 1,559,768 | ||||||||||||||
| 2,842,555 | 2,740,803 | 2,774,766 | |||||||||||||||
| Cost of sales: | |||||||||||||||||
| Americas | 693,108 | 711,082 | 760,134 | ||||||||||||||
| EMEA & APAC | 1,101,105 | 992,266 | 998,881 | ||||||||||||||
| 1,794,213 | 1,703,348 | 1,759,015 | |||||||||||||||
| Allocated operating expense: | |||||||||||||||||
| Americas | 51,057 | 64,517 | 64,668 | ||||||||||||||
| EMEA & APAC | 93,724 | 97,807 | 103,984 | ||||||||||||||
| 144,781 | 162,324 | 168,652 | |||||||||||||||
| Other operating expense: | |||||||||||||||||
| Americas | 160,805 | 161,946 | 165,454 | ||||||||||||||
| EMEA & APAC | 183,046 | 184,411 | 180,543 | ||||||||||||||
| 343,851 | 346,357 | 345,997 | |||||||||||||||
Adjusted EBITDA(2): | |||||||||||||||||
| Americas | 225,368 | 239,200 | 224,742 | ||||||||||||||
| EMEA & APAC | 334,342 | 289,574 | 276,360 | ||||||||||||||
| 559,710 | 528,774 | 501,102 | |||||||||||||||
| Depreciation, amortization and other impairment charges: | |||||||||||||||||
| Americas | 34,050 | 30,813 | 34,589 | ||||||||||||||
| EMEA & APAC | 50,055 | 35,977 | 40,445 | ||||||||||||||
| 84,105 | 66,790 | 75,034 | |||||||||||||||
| Capital expenditures: | |||||||||||||||||
| Americas | 18,791 | 22,645 | 21,576 | ||||||||||||||
| EMEA & APAC | 28,496 | 29,134 | 26,602 | ||||||||||||||
| $ | 47,287 | $ | 51,779 | $ | 48,178 | ||||||||||||
(1) For the years ended December 31, 2025, 2024 and 2023, the total Net sales originating from the United States were $579.3 million, $595.6 million and $619.1 million, respectively.
(2) The following is a reconciliation of Net income from continuing operations to Adjusted EBITDA on a consolidated basis:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Net income from continuing operations | $ | 259,103 | $ | 293,057 | $ | 223,365 | |||||||||||
| Income tax expense | 69,157 | 77,348 | 95,727 | ||||||||||||||
| Interest expense and other, net | 83,910 | 64,890 | 85,074 | ||||||||||||||
| Pension settlement loss | — | 12,155 | — | ||||||||||||||
Restructuring and other related charges(1) | 27,756 | 10,227 | 24,110 | ||||||||||||||
Acquisition - amortization and other related charges(2) | 72,063 | 34,479 | 36,851 | ||||||||||||||
| Depreciation and other amortization | 47,721 | 36,618 | 35,975 | ||||||||||||||
| Adjusted EBITDA | $ | 559,710 | $ | 528,774 | $ | 501,102 | |||||||||||
(1) Includes severance and other termination benefits, including outplacement services, as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets and other costs in connection with the closure and optimization of facilities and product lines.
(2) Includes transaction, diligence and integration expenses totaling $31.5 million, $4.2 million and $2.6 million for the years ended December 31, 2025, 2024 and 2023, respectively, and amortization of intangibles and fair value charges on acquired inventories totaling $40.5 million, $30.3 million and $34.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company’s investments in equity method investees and total assets by segment are included in the table below.
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| Investments in equity method investees: | |||||||||||
| Americas | $ | — | $ | — | |||||||
| EMEA & APAC | 29,558 | 28,885 | |||||||||
| 29,558 | 28,885 | ||||||||||
| Total assets: | |||||||||||
| Americas | 1,717,390 | 1,796,167 | |||||||||
| EMEA & APAC | 3,048,704 | 2,237,808 | |||||||||
| $ | 4,766,094 | $ | 4,033,975 | ||||||||
The detail of the Company’s property, plant and equipment, net by geography are included in the table below.
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
Property, plant and equipment, net(1): | |||||||||||
| Czech Republic | $ | 75,028 | $ | 55,554 | |||||||
| United States | 72,617 | 73,036 | |||||||||
| Germany | 48,245 | 11,191 | |||||||||
| India | 31,437 | 31,506 | |||||||||
| Mexico | 23,464 | 20,495 | |||||||||
| Other foreign countries | 131,085 | 106,565 | |||||||||
| $ | 381,876 | $ | 298,347 | ||||||||
(1) As the Company does not allocate all long-lived assets, specifically intangible assets, to each individual country, evaluation of long-lived assets in total is impracticable.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 7, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.