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 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 14.48% and a net margin of 5.75%. The firm had revenue of $824.52 million for the quarter, compared to the consensus estimate of $786.68 million. During the same quarter in the previous year, the business posted $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 Stock Down 0.8%

Shares of ESAB stock traded down $0.63 on Thursday, reaching $77.73. 669,092 shares of the company were exchanged, compared to its average volume of 741,903. ESAB has a one year low of $62.74 and a one year high of $137.42. The company has a market capitalization of $4.83 billion, a price-to-earnings ratio of 27.60, a PEG ratio of 1.21 and a beta of 1.17. The company has a current ratio of 1.96, a quick ratio of 1.22 and a debt-to-equity ratio of 0.99. The company has a 50-day moving average of $69.90 and a 200 day moving average of $92.92.

ESAB Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 16th. Shareholders 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 annualized dividend and a dividend yield of 0.6%. ESAB’s payout ratio is 17.20%.

More ESAB News

Here are the key news stories impacting ESAB this week:

• Positive Sentiment: Revenue rose 13.3% year over year to $824.5 million, above the cited analyst estimate of $786.7 million. Reports also pointed to growth across business segments. ESAB Corporation Announces Third Quarter 2026 Results
• Neutral Sentiment: ESAB said it is targeting net leverage in the mid-2s by the end of 2027, a potential longer-term debt-reduction milestone. ESAB 2026 outlook and leverage target
• Negative Sentiment: Quarterly EPS of $1.30 missed the $1.33 consensus and was below $1.32 a year earlier. Reports highlighted margin compression and a cut to guidance; ESAB indicated 2026 adjusted EPS of $5.28–$5.33. ESAB Q3 2026 deep dive
• Negative Sentiment: UBS lowered its price target to $115 from $145, though it kept a Buy rating. The reduced target adds to near-term caution following the results. UBS adjusts ESAB price target

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on ESAB shares. Oppenheimer reduced their price target 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 lowered shares of ESAB from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, August 11th. JPMorgan Chase & Co. cut their price objective on shares of ESAB from $125.00 to $95.00 and set an “overweight” rating on the stock in a research report on Thursday, October 8th. Roth Capital reaffirmed a “buy” rating and issued a $133.00 target price (down from $151.00) on shares of ESAB in a research report on Tuesday, September 15th. Finally, Stifel Nicolaus set a $114.00 price target on shares of ESAB in a research note on Monday, October 19th. Six equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, ESAB currently has a consensus rating of “Moderate Buy” and a consensus price target of $118.67.

Insider Activity at ESAB

In related news, Director Rhonda L. Jordan sold 1,000 shares of the firm’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 directly owned 1,000 shares of the company’s stock, valued at approximately $95,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 7.20% of the company’s stock.

About ESAB

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.