ESAB cuts 2026 forecast as Q3 core profit misses estimates

ESAB Corporation (ESAB) said on Nov. 4 that third-quarter sales rose 13.3% from a year earlier to a record $824.5 million. The company also cut its 2026 core adjusted EBITDA forecast to $603 million to $607 million, from $615 million to $625 million.

Shares were little changed in regular trading as of 9:52 a.m. ET, from a regular-session close of $76.05.

Core adjusted earnings were $1.30 a share, below the $1.35 consensus estimate. Revenue of $824.52 million was in line with the $819.85 million consensus estimate.

Here’s how the company did:

• Net sales: $824.52 million vs. $727.85 million a year earlier
• Core adjusted EPS: $1.30 vs. $1.32 a year earlier, against $1.35 expected
• Core adjusted EBITDA: $156.1 million vs. $133.4 million a year earlier

Organic sales, which exclude acquisitions and currency, rose 2.3% on a core basis. The company said the growth came in both of its segments.

ESAB is a focused industrial compounder, founded in 1904 and based in North Bethesda, Maryland. It employs about 11,300 associates and serves customers in about 150 countries.

2026 guidance

ESAB now expects 2026 core net sales growth of 13.1% to 13.3%, compared with its previous range of 11.0% to 14.0%. Core organic sales growth is now expected at 1.6% to 2.0%, down from 2.0% to 4.0%.

The company said acquisitions should contribute about 9.5%, up from about 9.0%. It expects a foreign exchange impact of about 2.0%, up from a range of 0.0% to 1.0%.

Core adjusted EPS is now forecast at $5.28 to $5.33, from the $5.40 to $5.50 range it gave on Aug. 6.

“ESAB delivered record third quarter core sales and adjusted EBITDA, with organic growth in both segments,” said Shyam P. Kambeyanda, ESAB President and CEO. “Disciplined execution, investment in growth and our EBXai operating system are delivering results.”

Segment results

In the Americas, core adjusted EBITDA was $67.2 million, up from $57.3 million a year earlier. The core margin in the segment was 19.9%.

In EMEA and APAC, core adjusted EBITDA was $88.9 million, up from $76.1 million a year earlier. The core margin in the segment was 19.8%.

Costs and cash

Restructuring and other related charges were $11.3 million, up from $4.3 million a year earlier. Acquisition-amortization and other related charges were $39.9 million, up from $16.5 million.

Adjusted free cash flow was $60.0 million, down from $86.4 million a year earlier. The company said it issued $175.0 million of 6.50% mandatory convertible preferred stock in June.

The company scheduled a conference call for 8:00 a.m. Eastern on Nov. 4 to discuss the results.