ESAB (NYSE:ESAB) Releases Earnings Results

07 Aug 2026, 21:41 by Amy Steele · The Cerbat Gem

ESAB (NYSE:ESAB – Get Free Report) posted its quarterly earnings results on Thursday. The company reported $1.33 EPS for the quarter, missing the consensus estimate 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 analysts’ expectations of $749.05 million. During the same quarter in the prior year, the firm earned $1.36 earnings per share. The company’s revenue was up 12.9% on a year-over-year basis. 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 traded down $2.27 during trading hours on Friday, reaching $92.24. The company’s stock had a trading volume of 501,215 shares, compared to its average volume of 601,778. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.96 and a quick ratio of 2.26. The company has a market cap of $5.62 billion, a price-to-earnings ratio of 33.06, a price-to-earnings-growth ratio of 1.85 and a beta of 1.19. ESAB has a one year low of $82.18 and a one year high of $137.42. The business’s 50-day moving average is $91.83 and its 200-day moving average is $102.27.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the company. Oppenheimer lowered their target price on ESAB from $140.00 to $135.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 21st. Stifel Nicolaus cut their price target on ESAB from $141.00 to $137.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Roth Capital lifted their price target on ESAB from $142.00 to $151.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. JPMorgan Chase & Co. lowered their price target on ESAB from $148.00 to $135.00 and set an “overweight” rating for the company in a research note on Friday, April 10th. Finally, DA Davidson assumed coverage on ESAB in a report on Monday, June 15th. They issued a “buy” rating and a $130.00 price objective on the stock. Eight investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $138.38.

View Our Latest Analysis on ESAB

Institutional Trading of ESAB

Institutional investors and hedge funds have recently made changes to their positions in the stock. Los Angeles Capital Management LLC bought a new stake in shares of ESAB during the 4th quarter worth about $33,000. Northwestern Mutual Wealth Management Co. raised its stake in shares of ESAB by 109.4% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 333 shares of the company’s stock valued at $40,000 after acquiring an additional 174 shares in the last quarter. Smartleaf Asset Management LLC lifted its holdings in ESAB by 259.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 381 shares of the company’s stock worth $43,000 after purchasing an additional 275 shares during the last quarter. Global Retirement Partners LLC lifted its holdings in ESAB by 3,023.1% in the 4th quarter. Global Retirement Partners LLC now owns 406 shares of the company’s stock worth $45,000 after purchasing an additional 393 shares during the last quarter. Finally, UMB Bank n.a. boosted its position in ESAB by 185.3% during the fourth quarter. UMB Bank n.a. now owns 642 shares of the company’s stock worth $72,000 after purchasing an additional 417 shares during the period. Institutional investors and hedge funds own 91.13% of the company’s stock.

More ESAB News

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

(Get Free Report)

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.