ESAB Corporation
ESAB Industrials Metal Fabrication
ESAB Corporation’s revenue for fiscal 2025 (year ended December 2025) was $2.8 billion, up 3.71% from fiscal 2024. In the quarter to June 2026, revenue grew 12.9%, EPS fell 54.6%, free cash flow fell 58.1% and total debt rose 121.9%, each against the same quarter a year earlier. Dividend growth for five consecutive years.
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ESAB Corporation (ESAB) Altman Z-score
ESAB Corporation's Altman Z-score for fiscal 2025 is 2.86, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.86 | (0.50) |
| FY2024 | 3.36 | 0.61 |
| FY2023 | 2.76 | 0.88 |
| FY2022 | 1.88 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.13 | — | 0.15 | |
| Retained earnings / total assets | 0.17 | — | 0.24 | |
| EBIT / total assets | 0.09 | — | 0.29 | |
| Market value of equity / total liabilities | 2.65 | — | 1.59 | |
| Sales / total assets | 0.60 | — | 0.60 | |
| Altman Z-score | Grey zone | 2.86 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 2.86 | ||
Z and Z″ put ESAB Corporation in different zones: grey zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| MLI Mueller Industries, Inc. compare | 19.2× |
| CRS Carpenter Technology Corporation compare | 14.2× |
| PRLB Proto Labs, Inc. compare | 9.6× |
| ATI ATI Inc. compare | 4.8× |
| GPGI CompoSecure, Inc. compare | 3.7× |
| WOR Worthington Enterprises, Inc. compare | 3.6× |
| CMC Commercial Metals Company compare | 3.0× |
| ESAB ESAB Corporation | 2.9× |
| RYZ Ryerson Holding Corporation compare | 2.8× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets