Record sales and margin performance
Sales up 9% with core organic growth of 6%
Reported net income from continuing operations attributable to ESAB of $67 million and core adjusted EBITDA of $127 million, up 20% versus prior year second quarter
Raised full year 2023 outlook

ESAB Corporation ("ESAB" or the "Company") (NYSE:ESAB), a world leader in connected fabrication technology and gas control solutions, today announced record financial results for the second quarter of 2023.

ESAB reported second quarter sales of $720 million, an increase of 9% on a reported basis or 6% higher core organic growth before acquisitions and currency translation impacts, as compared to the prior year quarter. ESAB also reported second quarter net income from continuing operations attributable to ESAB of $67 million or $1.10 diluted earnings per share and core adjusted net income of $74 million or $1.21 diluted earnings per share. Core adjusted EBITDA of $127 million rose 20% and margins expanded 200 basis points to 18.6%, both as compared to the prior year quarter.

"We continue to confidently pursue our strategic vision, consistently driving growth, expanding margins, and improving cash flow," said Shyam P. Kambeyanda, President and CEO, ESAB Corporation. "Our global teams continue to harness the transformative power of the ESAB Business Excellence (EBX) system, propelling us to new heights of efficiency and effectiveness. Our commitment to simplifying product lines has taken root across the enterprise, fueling both growth and profitability. The integration of the Ohio Medical, Swift-Cut and Therapy Equipment acquisitions are on track and performing above expectations. As a result of our strong first half performance and our confidence in our long-term strategy we are raising our full-year 2023 guidance."

ESAB Raised Full Year 2023 Outlook

ESAB raised its full year 2023 outlook and expects total core sales growth of 6.0% to 7.5%, core organic sales growth of 4.0% to 5.5%, core adjusted EBITDA of $450 to $465 million, and core adjusted EPS of $4.10 to $4.30, up from our prior guidance of total core sales growth of 4.0% to 6.0%, core organic sales growth of 3.5% to 5.5%, core adjusted EBITDA of $430 to $450 million and core adjusted EPS of $3.85 to $4.05.

Conference Call and Webcast

The Company will hold a conference call to discuss its second quarter 2023 results beginning at 8:00 a.m. Eastern on Tuesday, August 1, 2023, which will be open to the public by calling +1-888-550-5302 (U.S. callers) and +1-646-960-0685 (International callers) and referencing the conference ID number 4669992 and through webcast via ESAB's website www.ESABcorporation.com under the "Investors" section. Access to a supplemental slide presentation can also be found on ESAB's website under the same heading. Both the audio of this call and the slide presentation will be archived on the website later today and will be available until the next quarterly call. To view this press release and associated financials in a PDF format click here. The Company's quarterly report on Form 10-Q for the quarter ended June 30, 2023, filed August 1, 2023, is also available on ESAB's website under the "Investors" section.

About ESAB Corporation

Founded in 1904, ESAB Corporation (NYSE:ESAB) is a world leader in connected fabrication technology and gas control solutions. Our rich history of innovative products and workflow solutions and our business system (EBX) allows us to realize our purpose of Shaping the World We Imagine.^TM ESAB Corporation is based in North Bethesda, Maryland and employs approximately 9,000 associates and serves customers in approximately 150 countries. To learn more, visit www.ESABcorporation.com.

Non-GAAP Financial Measures and Other Adjustments

ESAB has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America ("non-GAAP"). ESAB presents some of these non-GAAP financial measures including and excluding Russia due to economic and political volatility caused by the war in Ukraine, which results in enhanced investor interest in this information. Core non-GAAP financial measures exclude Russia for the three and six months ended June 30, 2023, and the three and six months ended July 1, 2022. These non-GAAP financial measures may include one or more of the following: adjusted net income from continuing operations, Core adjusted net income from continuing operations, adjusted EBITDA (earnings before interest, taxes, Restructuring and other related charges, separation costs, acquisition-amortization and other related charges and depreciation and other amortization), Core adjusted EBITDA, organic sales growth, Core organic sales growth, adjusted free cash flow, and ratios based on the foregoing measures. ESAB also provides adjusted EBITDA and adjusted EBITDA margin on a segment basis, as well as Core adjusted EBITDA and Core adjusted EBITDA margin on a segment basis.

Adjusted net income from continuing operations represents Net income from continuing operations attributable to ESAB Corporation, excluding Restructuring and other related charges, acquisition-amortization and other related charges and separation costs. Adjusted net income, includes the tax effect of non-GAAP adjusting items at applicable tax rates and excludes the impact of discrete tax charges or gains in each period. ESAB also presents adjusted net income margin from continuing operations, which is subject to the same adjustments as adjusted net income from continuing operations. Adjusted net income per diluted share from continuing operations is a calculation of adjusted net income from continuing operations over the weighted-average diluted shares outstanding. ESAB also presents Core adjusted net income from continuing operations and Core adjusted net income per share - diluted from continuing operations which are subject to the same adjustments as Adjusted net income from continuing operations and Adjusted net income per diluted share from continuing operations, further removing the impact of Russia for the three and six months ended June 30, 2023, and the three and six months ended July 1, 2022.

Adjusted EBITDA, excludes from Net income from continuing operations, the effect of Income tax expense, Interest expense (income) and other, net, Restructuring and other related charges, separation costs, acquisition-amortization and other related charges and depreciation and other amortization. ESAB presents adjusted EBITDA margins, which are subject to the same adjustments as adjusted EBITDA. Further, ESAB presents these non-GAAP performance measures on a segment basis, which excludes the impact of Restructuring and other related charges, separation costs, acquisition-amortization and other related charges and depreciation and other amortization from operating income. ESAB also presents Core adjusted EBITDA and Core adjusted EBITDA margins which are subject to the same adjustments as Adjusted EBITDA and Adjusted EBITDA margins, respectively, further removing the impact of Russia for the three and six months ended June 30, 2023, and the three and six months ended July 1, 2022.

ESAB presents organic sales growth which excludes the impact of acquisitions and foreign exchange rate fluctuations and presents core organic sales growth which further excludes the impact of the Russia business for the three and six months ended June 30, 2023, and three and six months ended July 1, 2022 from core organic sales growth.

Adjusted free cash flow represents cash flows from operating activities excluding cash outflows related to the Company's separation from Enovis Corporation and discontinued operations, less Purchases of property, plant and equipment net proceeds from sale of certain properties. Cash conversion represents Adjusted free cash flow divided by Adjusted net income from continuing operations.

These non-GAAP financial measures assist ESAB management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to unusual events or discrete restructuring plans and other initiatives that are fundamentally different from the ongoing productivity and core business of the Company.

ESAB management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.

Forward Looking Statements

This press release includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning the Company's plans, goals, objectives, outlook, expectations, and intentions, and other statements that are not historical or current fact. Forward-looking statements are based on the Company's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including general risks and uncertainties such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health concerns, natural disasters or other disruptions of expected business conditions. Factors that could cause the Company's results to differ materially from current expectations include, but are not limited to, risks related to the Company's ability to operate as a stand-alone public company; the Company's ability to achieve the intended benefits from the Company's separation from Enovis; the impact of the war in Ukraine and escalating geopolitical tensions; impact of COVID-19, including supply chain disruptions; the impact on creditworthiness and financial viability of customers; other impacts on the Company's business and ability to execute business continuity plans; and the other factors detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 7, 2023, as well as other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. The Company disclaims any duty to update the information herein.

ESAB CORPORATION CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF OPERATIONS Dollars in thousands, except per share data (Unaudited)

	Three Months Ended						Six Months Ended
	June 30, 2023			July 1, 2022			June 30, 2023			July 1, 2022

Net sales	$	720,422		$	661,177		$	1,404,422		$	1,309,088
Cost of sales		456,499			433,705			893,110			857,285
Gross profit		263,923			227,472			511,312			451,803
Selling, general and administrative expense		150,115			136,945			297,397			272,358
Restructuring and other related charges		5,169			4,649			14,613			9,953
Operating income		108,639			85,878			199,302			169,492
Interest expense and other, net		18,819			7,907			38,329			7,351
Income from continuing operations before income taxes		89,820			77,971			160,973			162,141
Income tax expense		20,974			20,047			57,998			45,793
Net income from continuing operations		68,846			57,924			102,975			116,348
Loss from discontinued operations, net of taxes		(1,623	)		(1,900	)		(2,536	)		(3,921	)
Net income		67,223			56,024			100,439			112,427
Less: Income attributable to noncontrolling interest, net of taxes		1,650			775			2,963			1,741
Net income attributable to ESAB Corporation	$	65,573		$	55,249		$	97,476		$	110,686
Earnings (loss) per share – basic
Income from continuing operations	$	1.11		$	0.95		$	1.65		$	1.90
Loss on discontinued operations	$	(0.03	)	$	(0.03	)	$	(0.04	)	$	(0.07	)
Net income per share	$	1.08		$	0.92		$	1.61		$	1.83
Earnings (loss) per share – diluted
Income from continuing operations	$	1.10		$	0.94		$	1.64		$	1.89
Loss on discontinued operations	$	(0.03	)	$	(0.03	)	$	(0.04	)	$	(0.07	)
Net income per share – diluted	$	1.07		$	0.91		$	1.60		$	1.82

ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Dollars in millions, except per share data (Unaudited)

	Three Months Ended						Six Months Ended
	June 30, 2023			July 1, 2022			June 30, 2023			July 1, 2022
Adjusted Net Income	(Dollars in millions, except per share data)⁽¹⁾
Net income from continuing operations	$	68.8		$	57.9		$	103.0		$	116.3
Less: Income attributable to noncontrolling interest, net of taxes		1.7			0.8			3.0			1.7
Net income from continuing operations attributable to ESAB Corporation (GAAP)		67.2			57.1			100.0			114.6
Restructuring and other related charges – pretax⁽²⁾		5.2			4.6			14.6			10.0
Acquisition-amortization and other related charges – pretax⁽³⁾		9.3			7.6			18.5			15.3
Separation costs – pretax⁽⁴⁾		—			3.5			—			7.1
Tax effect on above items⁽⁵⁾		(3.6	)		(3.9	)		(7.8	)		(7.7	)
Discrete tax adjustments⁽⁶⁾		—			—			19.6			—
Adjusted net income from continuing operations (non-GAAP)	$	78.1		$	69.0		$	144.9		$	139.2
Adjusted net income from continuing operations attributable to Russia (non-GAAP)⁽⁷⁾		3.9			3.6			7.5			9.3
Core adjusted net income from continuing operations (non-GAAP)	$	74.2		$	65.4		$	137.4		$	129.9
Adjusted net income margin from continuing operations		10.8	%		10.4	%		10.3	%		10.6	%

Adjusted Net Income Per Share
Net income per share – diluted from continuing operations (GAAP)	$	1.10		$	0.94		$	1.64		$	1.89
Restructuring and other related charges – pretax⁽²⁾		0.09			0.08			0.24			0.17
Acquisition-amortization and other related charges – pretax⁽³⁾		0.15			0.13			0.31			0.25
Separation costs – pretax⁽⁴⁾		—			0.06			—			0.12
Tax effect on above items⁽⁵⁾		(0.06	)		(0.06	)		(0.13	)		(0.13	)
Discrete tax adjustments⁽⁶⁾		—			—			0.32			—
Adjusted net income per share – diluted from continuing operations (non-GAAP)	$	1.28		$	1.14		$	2.38		$	2.30
Adjusted net income per share – diluted from continuing operations attributable to Russia (non-GAAP)⁽⁷⁾		0.06			0.06			0.12			0.15
Core adjusted net income per share – diluted from continuing operations (non-GAAP)	$	1.21		$	1.08		$	2.25		$	2.15

⁽¹⁾	Numbers may not sum due to rounding.
⁽²⁾	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.
⁽³⁾	Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
⁽⁴⁾	Includes non-recurring professional fees and employee costs related to the planning and execution of the separation from Enovis.
⁽⁵⁾	This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the proceeding line items of the table. ESAB estimates the tax effect of each adjustment item by applying ESAB's overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
⁽⁶⁾	Discrete tax adjustments for ESAB include the impact of net discrete tax expenses related to dividend withholding tax and the impact of unrecognized tax benefits due to adverse court ruling in a foreign jurisdiction.
⁽⁷⁾	Represents Russia contribution for the three and six months ended June 30, 2023, and three and six months ended July 1, 2022, respectively.

ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Dollars in millions (Unaudited)

	Three Months Ended June 30, 2023									Six Months Ended June 30, 2023
	Americas			EMEA & APAC			Total			Americas			EMEA & APAC			Total
	(Dollars in millions)⁽¹⁾
Net income from continuing operations (GAAP)							$	68.8								$	103.0
Income tax expense								21.0									58.0
Interest expense and other, net								18.8									38.3
Operating income (GAAP)		46.1			62.6			108.6			86.0			113.3			199.3
Adjusted to add (deduct)
Restructuring and other related charges⁽²⁾		3.0			2.2			5.2			3.9			10.7			14.6
Acquisition-amortization and other related charges⁽³⁾		5.4			3.8			9.3			10.7			7.8			18.5
Depreciation and other amortization		3.8			5.2			9.0			7.1			10.5			17.6
Adjusted EBITDA (non-GAAP)	$	58.3		$	73.8		$	132.1		$	107.7		$	142.3		$	250.0
Adjusted EBITDA attributable to Russia (non-GAAP)⁽⁴⁾		—			5.6			5.6			—			10.9			10.9
Core adjusted EBITDA (non-GAAP)	$	58.3		$	68.2		$	126.5		$	107.7		$	131.4		$	239.1
Adjusted EBITDA margin (non-GAAP)		18.8	%		18.0	%		18.3	%		17.9	%		17.7	%		17.8	%
Core adjusted EBITDA margin (non-GAAP)⁽⁵⁾		18.8	%		18.4	%		18.6	%		17.9	%		18.1	%		18.0	%

__________
⁽¹⁾	Numbers may not sum due to rounding.
⁽²⁾	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.
⁽³⁾	Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
⁽⁴⁾	Adjusted EBITDA relating to Russia for the three and six months ended June 30, 2023.
⁽⁵⁾	Net sales were $40.3 million and $77.5 million relating to Russia for the three and six months ended June 30, 2023.

ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Dollars in millions (Unaudited)

	Three months ended July 1, 2022									Six months ended July 1, 2022
	Americas			EMEA & APAC			Total			Americas			EMEA & APAC			Total
	(Dollars in millions)⁽¹⁾
Net income from continuing operations (GAAP)							$	57.9								$	116.3
Income tax expense								20.0									45.8
Interest expense (income) and other, net								7.9									7.4
Operating income (GAAP)	$	35.8		$	50.0		$	85.9		$	66.0		$	103.5		$	169.5
Adjusted to add (deduct):
Restructuring and other related charges⁽²⁾		3.6			1.1			4.6			7.2			2.8			10.0
Separation costs⁽³⁾⁽⁴⁾		1.5			1.9			3.5			3.8			3.3			7.1
Acquisition-amortization and other related charges⁽⁵⁾		4.2			3.4			7.6			8.3			7.0			15.3
Depreciation and other amortization		3.4			5.5			8.9			6.9			11.0			17.9
Other⁽⁶⁾		—			—			—			0.3			(0.2	)		0.1
Adjusted EBITDA (non-GAAP)	$	48.6		$	61.9		$	110.5		$	92.6		$	127.2		$	219.8
Adjusted EBITDA attributable to Russia (non-GAAP)⁽⁷⁾		—			5.5			5.5			—			13.9			13.9
Core adjusted EBITDA (non-GAAP)	$	48.6		$	56.4		$	105.0		$	92.6		$	113.3		$	205.9
Adjusted EBITDA margin (non-GAAP)		16.7	%		16.7	%		16.7	%		16.4	%		17.1	%		16.8	%
Core adjusted EBITDA margin (non-GAAP)⁽⁸⁾		16.7	%		16.6	%		16.6	%		16.4	%		16.8	%		16.6	%

⁽¹⁾	Numbers may not sum due to rounding.
⁽²⁾	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.
⁽³⁾	Includes non-recurring charges and employee costs related to the planning and execution of the Separation from Enovis within the Selling, general and administrative expense line within the Consolidated and Combined Condensed Statements of Operations.
⁽⁴⁾	Amounts are allocated to the segments as a percentage of revenue as the costs or gain are not discrete to either segment.
⁽⁵⁾	Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
⁽⁶⁾	Relates to the adjustment for certain items included within the Interest expense (income) and other, net line within the Consolidated and Combined Statements of Operations.
⁽⁷⁾	Adjusted EBITDA relating to Russia for the three and six months ended July 1, 2022
⁽⁸⁾	Net sales were $29.5 million and $70.4 million relating to Russia for the three and six months ended July 1, 2022.

ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Change in Sales Dollars in millions (Unaudited)

	Sales Growth⁽¹⁾
	Americas					EMEA & APAC					Total ESAB
	$			Change %		$			Change %		$			Change %
For the three months ended July 1, 2022	$	291.1				$	370.1				$	661.2
Components of Change:
Existing businesses (organic sales growth)⁽²⁾		11.9		4.1	%		41.2		11.1	%		53.1		8.0	%
Acquisitions⁽³⁾		13.8		4.7	%		5.2		1.4	%		19.0		2.9	%
Foreign Currency translation⁽⁴⁾		(6.5	)	(2.2	)%		(6.4	)	(1.7	)%		(12.9	)	(2.0	)%
Total sales growth	$	19.2		6.6	%	$	40.0		10.8	%	$	59.2		9.0	%
For the three months ended June 30, 2023		310.3					410.1					720.4

⁽¹⁾	Numbers may not sum due to rounding.
⁽²⁾	Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
⁽³⁾	Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
⁽⁴⁾	Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.

	Core Sales Growth⁽¹⁾⁽⁵⁾
	Americas					EMEA & APAC					ESAB
	$			Change %		$			Change %		$			Change %
For the three months ended July 1, 2022	$	291.1				$	340.6				$	631.7
Components of Change:
Existing businesses (core organic sales growth)⁽²⁾		11.9		4.1	%		25.1		7.4	%		37.0		5.9	%
Acquisitions⁽³⁾		13.8		4.7	%		5.2		1.5	%		19.1		3.0	%
Foreign Currency translation⁽⁴⁾		(6.5	)	(2.2	)%		(1.2	)	(0.4	)%		(7.7	)	(1.2	)%
Total core sales growth	$	19.2		6.6	%	$	29.2		8.6	%	$	48.4		7.7	%
For the three months ended June 30, 2023	$	310.3				$	369.8				$	680.1

⁽¹⁾	Numbers may not sum due to rounding.
⁽²⁾	Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
⁽³⁾	Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
⁽⁴⁾	Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
⁽⁵⁾	Represents sales excluding Russia for the three months ended June 30, 2023 and July 1, 2022, respectively.

ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Change in Sales Dollars in millions (Unaudited)

	Sales Growth⁽¹⁾
	Americas					EMEA & APAC					Total ESAB
	$			Change %		$			Change %		$			Change %
For the six months ended July 1, 2022	$	563.4				$	745.7				$	1,309.1
Components of Change:
Existing businesses (organic sales growth)⁽²⁾		24.1		4.3	%		59.5		8.0	%		83.6		6.4	%
Acquisitions⁽³⁾		26.8		4.8	%		11.5		1.5	%		38.3		2.9	%
Foreign Currency translation⁽⁴⁾		(12.5	)	(2.2	)%		(14.1	)	(1.9	)%		(26.6	)	(2.0	)%
Total sales growth	$	38.4		6.8	%	$	56.9		7.6	%	$	95.3		7.3	%
For the six months ended June 30, 2023		601.8					802.6					1404.4

⁽¹⁾	Numbers may not sum due to rounding.
⁽²⁾	Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
⁽³⁾	Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
⁽⁴⁾	Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.

	Core Sales Growth⁽¹⁾⁽⁵⁾
	Americas					EMEA & APAC					ESAB
	$			Change %		$			Change %		$			Change %
For the six months ended July 1, 2022	$	563.4				$	675.3				$	1,238.7
Components of Change:
Existing businesses (core organic sales growth)⁽²⁾		24.1		4.3	%		56.8		8.4	%		80.9		6.5	%
Acquisitions⁽³⁾		26.8		4.8	%		11.5		1.7	%		38.3		3.1	%
Foreign Currency translation⁽⁴⁾		(12.5	)	(2.2	)%		(18.5	)	(2.7	)%		(31.0	)	(2.5	)%
Total core sales growth	$	38.4		6.8	%	$	49.8		7.4	%	$	88.2		7.1	%
For the six months ended June 30, 2023	$	601.8				$	725.1				$	1,326.9

⁽¹⁾	Numbers may not sum due to rounding.
⁽²⁾	Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
⁽³⁾	Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
⁽⁴⁾	Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
⁽⁵⁾	Represents sales excluding Russia for the six months ended June 30, 2023 and July 1, 2022, respectively.

ESAB CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Adjusted Free Cash Flow Dollars in millions (Unaudited)

	Three Months Ended						Six Months Ended
	June 30, 2023			July 1, 2022			June 30, 2023			July 1, 2022

Net cash provided by operating activities (GAAP)	$	62.6		$	27.3		$	100.7		$	43.4
Purchases of property, plant and equipment (GAAP)		(9.3	)		(7.8	)		(17.0	)		(13.7	)
Proceeds from the sale of certain properties⁽¹⁾		0.9			—			0.9			2.5
Payments related to the Separation⁽²⁾		—			7.9			4.4			12.9
Payments related to discontinued operations		4.4			9.1			9.7			13.7
Adjusted free cash flow (non-GAAP)	$	58.6		$	36.5		$	98.7		$	58.8

⁽¹⁾	Includes proceeds from the sale of certain properties related to restructuring efforts for which previous cash outlays were included in Net cash used in investing activities.
⁽²⁾	Separation payments relate to one-time non-recurring professional fees and employee costs incurred in the planning and execution of the Separation from Enovis.

ESAB CORPORATION 2023 Outlook Dollars in millions (Unaudited)

ESAB 2023 Outlook
	Previous Guidance		New Guidance
2022 Core net sales	$	2,429.9	$	2,429.9
Organic growth		3.5%-5.5%		4.0%-5.5%
Acquisitions		2.5%		2.5%
Currency		(2.0)%		(0.5)%
2023 Core net sales growth range		4.0%-6.0%		6.0%-7.5%

2022 Core adjusted EBITDA	$	408.4	$	408.4
2023 Core adjusted EBITDA range	$	430-$ 450	$	450-$ 465

ESAB CORPORATION CONSOLIDATED AND CONDENSED BALANCE SHEETS Dollars in thousands (Unaudited)

	June 30, 2023			December 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	74,449		$	72,024
Trade receivables, less allowance for credit losses of $25,845 and $23,471		412,668			374,329
Inventories, net		447,321			416,829
Prepaid expenses		69,057			56,637
Other current assets		68,111			68,851
Total current assets		1,071,606			988,670
Property, plant and equipment, net		281,809			284,226
Goodwill		1,585,939			1,529,767
Intangible assets, net		505,063			517,167
Lease assets - right of use		95,077			92,033
Other assets		323,350			342,152
Total assets	$	3,862,844		$	3,754,015

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	333,166		$	316,265
Accrued liabilities		285,206			285,310
Total current liabilities		618,372			601,575
Long-term debt		1,159,100			1,218,643
Other liabilities		538,647			545,339
Total liabilities		2,316,119			2,365,557
Equity:
Common stock - $0.001 par value - Authorized 600,000,000, 60,259,369 and 60,094,725 shares outstanding as of March 31, 2022 and December 31, 2022, respectively		60			60
Additional paid-in capital		1,872,834			1,865,904
Retained earnings		250,030			159,231
Accumulated other comprehensive loss		(616,615	)		(674,988	)
Total ESAB Corporation equity		1,506,309			1,350,207
Noncontrolling interest		40,416			38,251
Total equity		1,546,725			1,388,458
Total liabilities and equity	$	3,862,844		$	3,754,015

ESAB CORPORATION CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF CASH FLOWS Dollars in thousands (Unaudited)

	Six Months Ended
	June 30, 2023			July 1, 2022

Cash flows from operating activities:
Net income	$	100,439		$	112,427
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and other impairment charges		39,561			33,072
Stock-based compensation expense		7,462			5,355
Deferred income tax		998			(7,346	)
Non-cash interest expense		597			597
Changes in operating assets and liabilities:
Trade receivables, net		(28,942	)		(17,652	)
Inventories, net		(24,733	)		(65,984	)
Accounts payable		3,267			17,450
Other operating assets and liabilities		2,072			(34,509	)
Net cash provided by operating activities		100,721			43,410
Cash flows from investing activities:
Purchases of property, plant and equipment		(16,999	)		(13,691	)
Proceeds from sale of property, plant and equipment		1,936			3,358
Acquisition, net of cash received		(18,235	)		—
Net cash used in investing activities		(33,298	)		(10,333	)
Cash flows from financing activities:
Proceeds from borrowings on term credit facility		—			1,000,000
Proceeds from borrowings on revolving credit facility		280,000			265,000
Repayments of borrowings on revolving credit facility and other		(340,537	)		(79,639	)
Payment of deferred financing fees and other		—			(5,641	)
Payment of deferred consideration		—			(1,500	)
Payment of dividends		(6,061	)		—
Consideration to Former Parent in connection with the Separation		—			(1,200,000	)
Distributions to noncontrolling interest holders		(1,274	)		(941	)
Transfers from Former Parent, net		—			2,847
Net cash used in financing activities		(67,872	)		(19,874	)
Effect of foreign exchange rates on Cash and cash equivalents		2,874			(937	)
Increase in Cash and cash equivalents		2,425			12,266
Cash and cash equivalents, beginning of period		72,024			41,209
Cash and cash equivalents, end of period	$	74,449		$	53,475

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ESAB Corporation Announces Second Quarter 2023 Results