ESAB (NYSE:ESAB) Releases Earnings Results, Misses Expectations By $0.04 EPS

Posted by on Aug 7th, 2026

ESAB (NYSE:ESAB – Get Free Report) posted its quarterly earnings data on Thursday. The company reported $1.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.37 by ($0.04), Zacks reports. The company had revenue of $807.63 million for the quarter, compared to analyst estimates of $749.05 million. ESAB had a net margin of 5.75% and a return on equity of 14.48%. The business’s revenue was up 12.9% compared to the same quarter last year. During the same quarter last year, the company earned $1.36 EPS. 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 Performance

Shares of ESAB traded down $2.27 during mid-day trading on Friday, reaching $92.24. The company had a trading volume of 501,215 shares, compared to its average volume of 601,778. ESAB has a 52-week low of $82.18 and a 52-week high of $137.42. The company has a quick ratio of 2.26, a current ratio of 1.96 and a debt-to-equity ratio of 0.99. The stock has a market capitalization of $5.62 billion, a P/E ratio of 33.06, a PEG ratio of 1.85 and a beta of 1.19. The stock has a 50 day moving average of $91.83 and a two-hundred day moving average of $102.27.

Wall Street Analyst Weigh In

Several research firms have weighed in on ESAB. Oppenheimer dropped their target price on shares of ESAB from $140.00 to $135.00 and set an “outperform” rating on the stock in a research report on Tuesday, July 21st. Roth Capital boosted their price objective on shares of ESAB from $142.00 to $151.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. Weiss Ratings restated a “hold (c)” rating on shares of ESAB in a research note on Friday, July 24th. DA Davidson began coverage on ESAB in a research note on Monday, June 15th. They set a “buy” rating and a $130.00 price target on the stock. Finally, JPMorgan Chase & Co. decreased their target price on ESAB from $148.00 to $135.00 and set an “overweight” rating for the company in a report on Friday, April 10th. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $138.38.

Check Out Our Latest Report on ESAB

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Royal Bank of Canada grew its stake in shares of ESAB by 29.4% during the 1st quarter. Royal Bank of Canada now owns 51,867 shares of the company’s stock worth $6,042,000 after purchasing an additional 11,772 shares during the period. Millennium Management LLC acquired a new position in shares of ESAB in the 1st quarter valued at $10,616,000. Goldman Sachs Group Inc. lifted its stake in shares of ESAB by 25.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 458,339 shares of the company’s stock valued at $53,396,000 after purchasing an additional 94,335 shares during the period. Northwestern Mutual Wealth Management Co. boosted its holdings in ESAB by 109.4% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 333 shares of the company’s stock worth $40,000 after buying an additional 174 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in ESAB by 183.4% during the second quarter. EverSource Wealth Advisors LLC now owns 972 shares of the company’s stock worth $117,000 after buying an additional 629 shares in the last quarter. 91.13% of the stock is owned by institutional investors and hedge funds.

ESAB News Roundup

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

About ESAB

(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.

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

Featured Stories

Earnings History for ESAB (NYSE:ESAB)

Receive News & Ratings for ESAB Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ESAB and related companies with MarketBeat.com's FREE daily email newsletter.