ESAB (NYSE:ESAB) Issues Earnings Results

ESAB (NYSE:ESAB) released its quarterly earnings data on Thursday. The company reported $1.33 earnings per share for the quarter, missing analysts’ consensus estimates of $1.37 by ($0.04), Zacks reports. ESAB had a net margin of 5.75% and a return on equity of 14.48%. The company had revenue of $807.63 million for the quarter, compared to analyst estimates of $749.05 million. During the same period in the previous year, the firm posted $1.36 earnings per share. The firm’s revenue for the quarter was up 12.9% compared to the same quarter last year. ESAB updated its FY 2026 guidance to 5.400-5.500 EPS.

Here are the key takeaways from ESAB’s conference call:

• Strong second-quarter performance: Sales rose 13% year over year to $766 million, including 2.5% organic growth, while Adjusted EBITDA increased 8% to a record $150 million. Both the Americas and EMEA/APAC segments returned to organic growth.
• Eddyfi acquisition closed ahead of schedule and is expected to add approximately nine percentage points of sales growth in 2026. Management highlighted Eddyfi’s roughly 65% gross margin, 30% EBITDA margin, and potential for workflow-related revenue synergies.
• ESAB raised its 2026 outlook to approximately $3.0 billion-$3.1 billion in core sales and $615 million-$625 million in Adjusted EBITDA, with adjusted EPS guided to $5.40-$5.50 and free-cash-flow conversion near 90%.
• Second-quarter Adjusted EBITDA margin declined 90 basis points to 19.5% due to logistics and commodity inflation, along with targeted commercial investments in equipment. Management expects about $15 million of price-cost headwinds for the full year, although it anticipates gradual improvement in pricing.
• Management expects organic growth to remain flat to slightly better sequentially in the second half, supported by equipment, automation, defense, and general fabrication, while consumables growth is expected to remain in the low single digits. Middle East operations, representing roughly 7%-8% of sales, were down double digits amid conflict-related disruption, though potential reconstruction demand could provide a future tailwind.

ESAB Stock Down 2.4%

NYSE ESAB opened at $92.24 on Friday. The stock’s 50 day simple moving average is $91.83 and its 200 day simple moving average is $102.27. ESAB has a one year low of $82.18 and a one year high of $137.42. The firm has a market cap of $5.62 billion, a PE ratio of 33.06, a price-to-earnings-growth ratio of 1.85 and a beta of 1.19. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.96 and a quick ratio of 2.26.

Analyst Upgrades and Downgrades

Several research firms recently commented on ESAB. Oppenheimer cut their target price on ESAB from $140.00 to $135.00 and set an “outperform” rating for the company in a research report on Tuesday, July 21st. Roth Capital increased their price objective on ESAB from $142.00 to $151.00 and gave the stock a “buy” rating in a research note on Tuesday, July 7th. Stifel Nicolaus cut their price objective on ESAB from $141.00 to $137.00 and set a “buy” rating for the company in a report on Monday, July 20th. Weiss Ratings restated a “hold (c)” rating on shares of ESAB in a research note on Friday, July 24th. Finally, DA Davidson began coverage on shares of ESAB in a report on Monday, June 15th. They issued a “buy” rating and a $130.00 target price on the stock. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $138.38.

Hedge Funds Weigh In On ESAB

A number of institutional investors and hedge funds have recently bought and sold shares of ESAB. Mercer Global Advisors Inc. ADV bought a new stake in shares of ESAB during the fourth quarter worth $322,000. Vident Advisory LLC lifted its position in ESAB by 132.4% during the 4th quarter. Vident Advisory LLC now owns 4,879 shares of the company’s stock worth $545,000 after buying an additional 2,780 shares in the last quarter. First Citizens Bank & Trust Co. grew its holdings in ESAB by 2.2% during the 4th quarter. First Citizens Bank & Trust Co. now owns 8,335 shares of the company’s stock worth $931,000 after acquiring an additional 182 shares during the last quarter. NewEdge Advisors LLC grew its holdings in ESAB by 118.0% during the 4th quarter. NewEdge Advisors LLC now owns 5,363 shares of the company’s stock worth $599,000 after acquiring an additional 2,903 shares during the last quarter. Finally, XTX Topco Ltd acquired a new stake in ESAB in the 4th quarter valued at about $2,169,000. Institutional investors and hedge funds own 91.13% of the company’s stock.

Key Headlines Impacting ESAB

Here are the key news stories impacting ESAB this week:

• Positive Sentiment: Second-quarter revenue rose 12.9% year over year to $807.6 million, substantially exceeding analysts’ $749.1 million estimate. The company highlighted strength in its equipment business and continued operational improvements. ESAB Corporation Announces Second Quarter 2026 Results
• Positive Sentiment: ESAB said the Eddyfi acquisition is closing ahead of schedule, supporting its strategy to expand into inspection and testing markets. Management also forecast 2026 core sales of approximately $3.0 billion to $3.1 billion. ESAB forecasts 2026 core sales and adjusted EPS
• Neutral Sentiment: Management’s earnings call emphasized equipment-market momentum and Eddyfi integration as drivers of a strategic shift, but investors will likely look for evidence that the acquisition produces the expected growth and synergies. ESAB Q2 deep dive
• Negative Sentiment: Adjusted earnings were $1.33 per share, below the $1.37 consensus estimate and down from $1.36 a year earlier. ESAB Q2 Earnings Lag Estimates
• Negative Sentiment: ESAB’s 2026 adjusted EPS guidance of $5.40–$5.50 is below the approximately $5.77 analyst consensus, creating a concern that integration costs, business conditions, or other pressures could limit near-term earnings growth. ESAB Q2 2026 Earnings Call Transcript

ESAB Company Profile

ESAB Corporation is a global leader in welding, cutting and gas control technologies, offering a comprehensive portfolio of equipment, consumables and automation solutions. The company’s products include welding power sources, cutting machines, torches, electrodes, filler metals and gas regulating equipment designed to meet the needs of diverse industries. ESAB serves sectors such as construction, shipbuilding, automotive, energy, infrastructure and manufacturing, providing both standard and customized solutions to enhance productivity and quality in metal fabrication and processing.

Founded in 1904 by Swedish inventor Oscar Kjellberg, ESAB pioneered the development of coated welding electrodes, laying the groundwork for modern welding practices.