ESAB (NYSE:ESAB) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

ESAB (NYSE:ESAB) posted its quarterly earnings data on Wednesday. The company reported $1.30 EPS for the quarter, missing the consensus estimate of $1.33 by ($0.03), Zacks reports. ESAB had a return on equity of 14.48% and a net margin of 5.75%. The company had revenue of $824.52 million for the quarter, compared to analyst estimates of $786.68 million. During the same quarter in the previous year, the firm posted $1.32 earnings per share. The company’s quarterly revenue was up 13.3% on a year-over-year basis.

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 2.9%

NYSE:ESAB traded up $2.20 during trading hours on Wednesday, reaching $78.25. 1,467,200 shares of the stock were exchanged, compared to its average volume of 1,224,134. ESAB has a twelve month low of $62.74 and a twelve month high of $137.42. The company has a quick ratio of 1.22, a current ratio of 1.96 and a debt-to-equity ratio of 0.99. The business has a 50-day moving average of $69.90 and a two-hundred day moving average of $92.92. The company has a market capitalization of $4.86 billion, a price-to-earnings ratio of 14.32, a PEG ratio of 1.21 and a beta of 1.17.

ESAB Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 16th. Investors of record on Friday, October 2nd were given a dividend of $0.12 per share. The ex-dividend date of this dividend 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 (DPR) is presently 17.20%.

Analysts Set New Price Targets

Several research analysts recently weighed in on the company. Stifel Nicolaus set a $114.00 price target on ESAB in a research report on Monday, October 19th. Roth Capital restated 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. Weiss Ratings cut shares of ESAB from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, August 11th. Oppenheimer cut their target price on shares of ESAB from $135.00 to $110.00 and set an “outperform” rating for the company in a report on Wednesday, October 21st. Finally, JPMorgan Chase & Co. decreased their target price on shares of ESAB from $125.00 to $95.00 and set an “overweight” rating for the company in a research note on Thursday, October 8th. Six investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, ESAB has an average rating of “Moderate Buy” and an average price target of $118.67.

Insiders Place Their Bets

In other ESAB news, Director Rhonda L. Jordan sold 1,000 shares of the business’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $95.00, for a total value of $95,000.00. Following the completion of the transaction, the director owned 1,000 shares in the company, valued at $95,000. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 7.20% of the stock is currently owned by insiders.

Key Headlines Impacting ESAB

Here are the key news stories impacting ESAB this week:

• Positive Sentiment: Q3 revenue rose 13.3% year over year to $824.5 million, topping the cited analyst estimate of $786.7 million. The earnings call also emphasized strong growth and improving margins, supporting the more optimistic investor read-through. ESAB Earnings Call Highlights Strong Growth and Margin Gains
• Negative Sentiment: Quarterly EPS was $1.30, below the $1.33 consensus and down from $1.32 a year earlier. The modest shortfall could temper the positive response to revenue growth. ESAB Q3 Earnings Lag Estimates

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.