ESAB Corp
Q2 2026 Earnings
Core adjusted EPS excludes restructuring charges of $18.3 million, acquisition-amortization and related charges of $41.3 million, performance option awards compensation of $0.7 million, discrete tax adjustments of $3.8 million, MCPS dividends of $1.4 million, and removes Russia impact of $(0.02) per share
Market Reaction
Did ESAB Beat Earnings? Q2 2026 Results
ESAB Corporation delivered a mixed second quarter for fiscal 2026, posting adjusted core EPS of $1.33 and missing the $1.37 consensus estimate by 2.92%, even as revenue climbed 12.9% year-over-year to $807.63 million. The headline EPS shortfall was largely a product of the company's own making: the accelerated close of the Eddyfi Technologies acquisition, which came in one month ahead of schedule, dragged on per-share results through $41.30 million in acquisition-related charges and sharply higher interest expense of $30.62 million tied to $1.00 billion in senior notes and $175.00 million in mandatory convertible preferred stock raised to fund the deal. Organic momentum was real but modest, with core organic sales growing 2.5% and the Americas segment contributing 4.9% organic growth. Despite the EPS miss, ESAB raised its full-year core sales growth outlook to 11.0%-14.0% from 6.0%-9.0% and lifted its core adjusted EBITDA guidance to $615.00 million-$625.00 million, while trimming full-year core adjusted EPS guidance to $5.40-$5.50, reflecting the financing dilution investors had broadly anticipated.
- Core organic sales growth of 2.5% driven by both Americas (4.9%) and EMEA & APAC (0.9%)
- Acquisition contributions of 7.8% to total sales growth, primarily from Eddyfi Technologies
- Particular strength in North America and Asia markets
- Resilient European performance offsetting challenging Middle East environment
- Foreign currency translation contributed 2.6% to total sales growth
“ESAB delivered a record second quarter, with a solid return to organic growth in both regions, underscoring the strength of our platform even in a challenging macro environment. These results reflect the strength of our teams and the value of our unrivaled workflow solution that addresses our customers' most complex issues. Despite a challenging environment in the Middle East, our performance exceeded expectations, with particular strength in North America and Asia and a resilient Europe. We expect to mitigate the transitory cost inflation related to logistics and commodity price increases over the next few quarters.”
ESAB CEO, on the earnings call
Forward Guidance & Outlook
ESAB updated its full-year 2026 outlook, raising total core sales growth to 11.0%-14.0% (from 6.0%-9.0%), with core organic sales growth unchanged at 2.0%-4.0%, M&A contribution revised upward to approximately 9.0% (from 4.0%), and FX impact unchanged at 0.0%-1.0%. Core adjusted EBITDA guidance raised to $615 million-$625 million (from $575 million-$595 million). Core adjusted EPS outlook adjusted to $5.40-$5.50 (from $5.70-$5.90), reflecting acquisition financing dilution. 2025 core net sales base of $2,700.4 million, 2025 core adjusted EBITDA of $540.0 million, and 2025 core adjusted EPS of $5.27.
ESAB YoY Financials
ESAB Revenue by Segment
ESAB Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.