ESAB (NYSE:ESAB) Posts Earnings Results, Misses Expectations By $0.03 EPS

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

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 Stock Up 2.9%

ESAB stock traded up $2.20 during mid-day trading on Wednesday, reaching $78.25. 1,467,200 shares of the company were exchanged, compared to its average volume of 1,224,134. The business has a fifty day moving average of $69.90 and a 200 day moving average of $92.92. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.22 and a current ratio of 1.96. The firm has a market cap of $4.86 billion, a P/E ratio of 28.05, a PEG ratio of 1.21 and a beta of 1.17. ESAB has a 12-month low of $62.74 and a 12-month high of $137.42.

ESAB Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 16th. Investors of record on Friday, October 2nd were paid a $0.12 dividend. The ex-dividend date of this dividend was Friday, October 2nd. This represents a $0.48 dividend on an annualized basis and a yield of 0.6%. ESAB’s payout ratio is 17.20%.

Insider Activity at ESAB

In other news, Director Rhonda L. Jordan sold 1,000 shares of the business’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $95.00, for a total value of $95,000.00. Following the completion of the transaction, the director directly owned 1,000 shares of the company’s stock, valued at approximately $95,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 7.20% of the company’s stock.

ESAB News Roundup

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

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on ESAB. Roth Capital reaffirmed a “buy” rating and set a $133.00 price target (down from $151.00) on shares of ESAB in a research note on Tuesday, September 15th. JPMorgan Chase & Co. reduced their price objective on ESAB from $125.00 to $95.00 and set an “overweight” rating on the stock in a report on Thursday, October 8th. Oppenheimer decreased their target price on ESAB from $135.00 to $110.00 and set an “outperform” rating for the company in a research report on Wednesday, October 21st. Weiss Ratings cut ESAB from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, August 11th. Finally, Stifel Nicolaus set a $114.00 price target on ESAB in a research report on Monday, October 19th. Six research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $118.67.

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.