ESAB (NYSE:ESAB – Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $1.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.33 by ($0.03), Zacks reports. ESAB had a return on equity of 14.17% and a net margin of 5.05%. The company had revenue of $824.52 million during the quarter, compared to the consensus estimate of $786.68 million. During the same quarter in the prior year, the business earned $1.32 earnings per share. The firm’s quarterly revenue was up 13.3% compared to the same quarter last year.
Here are the key takeaways from ESAB’s conference call:
- Sales rose 14% year over year to $787 million, with 2.3% organic growth; adjusted EBITDA increased 17% to $156 million, and adjusted EBITDA margin expanded 40 basis points to 19.8%. Both major regions delivered organic growth, while U.S. and Canada and APAC were particularly strong.
- ESAB said its combined fabrication, welding, gas control, and inspection offering is generating customer interest, with a cross-selling funnel of about $465 million and 10–15 opportunities in late stages of evaluation. However, management cautioned that conversion is still early and did not provide a timeline or expected realization rate.
- Management expects Q4 to be the strongest quarter of 2026 for organic growth, margins, and cash flow, citing a solid October start and mid-single-digit order growth. It also expects improved South American performance and sees EWM as a growth opportunity, particularly as it expands into new geographies and customer accounts.
- ESAB narrowed its 2026 outlook to $603–$607 million in adjusted EBITDA and $5.28–$5.33 in adjusted EPS, citing persistent inflation and freight costs, while protecting investment in equipment growth and strategic AI. Adjusted free cash flow fell to $60 million from $86 million, largely due to higher acquisition-related interest and additional inventory; net leverage was 3.4 times.
ESAB Trading Up 5.3%
Shares of NYSE ESAB traded up $4.21 during mid-day trading on Friday, reaching $83.33. The company had a trading volume of 1,002,146 shares, compared to its average volume of 745,551. The stock has a market cap of $5.18 billion, a price-to-earnings ratio of 33.51, a price-to-earnings-growth ratio of 1.27 and a beta of 1.17. ESAB has a 52 week low of $62.74 and a 52 week high of $137.42. The business’s 50-day moving average is $69.83 and its 200-day moving average is $92.71. The company has a current ratio of 1.92, a quick ratio of 1.22 and a debt-to-equity ratio of 0.95.
ESAB Dividend Announcement
The business also recently declared a quarterly dividend, which was paid on Friday, October 16th. Stockholders of record on Friday, October 2nd were issued a $0.12 dividend. The ex-dividend date was Friday, October 2nd. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.6%. ESAB’s dividend payout ratio is presently 19.43%.
Wall Street Analysts Forecast Growth
Several equities research analysts have recently weighed in on ESAB shares. Oppenheimer reduced their target price on shares of ESAB from $135.00 to $110.00 and set an “outperform” rating on the stock in a research note on Wednesday, October 21st. UBS Group dropped their price target on shares of ESAB from $145.00 to $115.00 and set a “buy” rating for the company in a research note on Thursday. Weiss Ratings downgraded shares of ESAB from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, August 11th. Roth Capital reissued a “buy” rating and issued a $133.00 price objective (down from $151.00) on shares of ESAB in a research report on Tuesday, September 15th. Finally, Stifel Nicolaus set a $114.00 price objective on shares of ESAB in a research note on Monday, October 19th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, ESAB currently has a consensus rating of “Moderate Buy” and a consensus price target of $118.14.
Read Our Latest Report on ESAB
ESAB Company Profile
ESAB Corporation (NYSE: ESAB) is a global provider of welding and cutting technologies. The company develops and supplies equipment, consumables, automation solutions and related products used to join, cut and process metals across industrial and commercial applications.
Its product portfolio includes welding machines, cutting systems, welding electrodes and wires, filler metals, gas-control equipment, plasma and oxyfuel technologies, and digital or automated solutions. ESAB also offers products and services designed to support fabrication, manufacturing, construction, transportation, energy and maintenance operations.
ESAB serves customers in the Americas, Europe, the Middle East, Africa and the Asia-Pacific region through a portfolio of established brands and distribution channels.
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