ESAB Corporation (ESAB)
NYSE:ESAB
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Earnings Data
Report Date
Aug 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.45Last Year’s EPS
1.36Same Quarter Last Year
Strong Buy
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly constructive: management reported record first-quarter sales (+10% core) and higher adjusted EBITDA (+6%), reaffirmed full-year guidance, highlighted strong acquisition performance (EWM, Aktiv) and pipeline momentum, and cited improved cash conversion (49% vs. 40%). Near-term headwinds include margin pressure from EWM integration and the Iran conflict, Q1 volume softness (-3%), and commodity/freight cost inflation, but management articulated clear mitigation actions (price recovery, synergies, EBXai/AI productivity) and a path to EWM EBITDA accretion by year-end as well as long-term margin upside from portfolio mix shifts (equipment and Eddyfi). Overall, positives (record sales, earnings growth, cash improvement, strategic acquisitions and guidance reaffirmation) meaningfully outweigh the manageable near-term challenges.Company Guidance
Record Q1 Sales and Profitability Growth
Total sales of $715 million; total core sales up 10% year-over-year. Adjusted EBITDA of $136 million, up 6% YoY, with an adjusted EBITDA margin of 19%.
Reiterated Full-Year Guidance
Company reiterated guidance: core total sales growth of 6%–9% (organic 2%–4%, ~400 bps from M&A, FX ~1%), adjusted EBITDA of $575M–$595M, and adjusted EPS of $5.70–$5.90.
Acquisitions Driving Growth and Margin Expansion
Recent acquisitions performing well: EWM and Aktiv grew double digits YoY. The Eddyfi acquisition (expected to close midyear) is projected to have ~65% gross margin and ~30% EBITDA margin and is expected to accelerate the shift to higher-margin equipment and inspection/monitoring workflows.
Improving Portfolio Mix and Long-Term Margin Trajectory
Equipment mix increased from ~38% of sales in 2016 to ~44% today; expected to rise to ~52% after Eddyfi. Gross margin has moved from ~35% (2016) to ~38% today, with management targeting consolidated gross margins >40% for 2027 and beyond.
Segment Strength and Geographic Momentum
EMEA & APAC sales up 16% to $426M with adjusted EBITDA up 9% to $80M. Americas delivered $288M in sales, up 3% YoY, and adjusted EBITDA of $56M, up 3% YoY with margins flat at 19.4%. Europe benefited from local footprint and defense demand.
Product & Market Expansion
Two equipment launches (Ruffian 270 and Aristo Edge) plus new offerings (EWM React, Tetrix 350) expand the servable market: ~ $250M addressable from the two welders and ~ $900M from additive/TIG opportunities. EWM traction with distributors, defense OEMs and integrators noted.
Improved Cash Generation and Working Capital
Adjusted free cash flow of $40M; cash conversion improved to 49% from 40% in prior-year quarter. Net leverage at 1.9 (with temporary step-up expected upon Eddyfi close, planned to be below 3 by year-end).
Operational Productivity Initiatives
EBXai operating system and 40+ active AI projects contributing to productivity gains and working-capital improvements; management says cost-out and sales synergies are running ahead of schedule.
ESAB Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ESAB Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $101.53 | $102.39 | +0.85% |
Mar 10, 2026 | $106.91 | $107.64 | +0.68% |
Oct 29, 2025 | $120.91 | $114.13 | -5.61% |
Aug 06, 2025 | $131.66 | $108.97 | -17.24% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does ESAB Corporation (ESAB) report earnings?
ESAB Corporation (ESAB) is schdueled to report earning on Aug 12, 2026, Before Open (Confirmed).
What is ESAB Corporation (ESAB) earnings time?
ESAB Corporation (ESAB) earnings time is at Aug 12, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ESAB EPS forecast?
ESAB EPS forecast for the fiscal quarter 2026 (Q2) is 1.45.