ESAB Q3 sales beat estimates on acquisitions
ESAB•ESAB's third-quarter sales rose 13.3% to $824.52 million, above estimates of $803.78 million, while adjusted EPS of $1.30 missed the $1.32 estimate. The company lowered its 2026 outlook for core organic sales growth, adjusted EBITDA and adjusted EPS.
1. Quarterly results
ESAB reported third-quarter sales of $824.52 million, up 13.3% and above analyst expectations of $803.78 million. Adjusted EPS was $1.30, below the $1.32 estimate. Core organic sales increased 2.3%; sales growth was mainly driven by acquisitions and foreign currency translation.
2. Lower 2026 outlook
ESAB lowered its 2026 core organic sales growth outlook to 1.6%-2.0% from 2.0%-4.0%. It now expects core adjusted EBITDA of $603 million-$607 million, down from $615 million-$625 million, and core adjusted EPS of $5.28-$5.33, versus its prior forecast of $5.40-$5.50.
3. Operating drivers
CEO Shyam P. Kambeyanda attributed margin improvement to the EBXai operating system. The company said new products and acquisitions, particularly EWM and Eddyfi, began generating cross-selling opportunities.
