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ESAB Corp beats Q2 sales estimates, raises FY core net sales growth

ESAB Corp beats Q2 sales estimates, raises FY core net sales growth


Overview

  • U.S. industrial compounder reported Q2 sales up 12.9%, beating analyst expectations

  • Core adjusted EPS for Q2 declined 1% and missed analyst expectations

  • Company closed Eddyfi acquisition ahead of schedule and raised 2026 outlook


Outlook

  • ESAB raises full-year 2026 core net sales growth to 11%-14% from 6%-9%

  • Company lifts 2026 core adjusted EBITDA forecast to $615-$625 mln, up from $575-$595 mln

  • ESAB expects to mitigate logistics and commodity cost inflation over coming quarters


Result Drivers

  • ORGANIC SEGMENT GROWTH - Core organic growth reported in both segments, with strength in North America and Asia and resilient Europe

  • COST INFLATION IMPACT - Core adjusted EBITDA margin decreased due to transitory price/cost neutrality and targeted commercial investments


Company press release: ID:nBw4L57gwa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Beat

$808 mln

$758.01 mln (9 Analysts)

Q2 Adjusted EPS

Miss

$1.33

$1.38 (9 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

  • Wall Street's median 12-month price target for ESAB Corp is $136.00, about 47.1% above its August 5 closing price of $92.47

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago


Reuters Recommended Reads

  • Aug 4 - AMETEK beats Q2 sales and adjusted EPS estimates, raises 2026 outlook

  • Aug 4 - Emerson Q3 sales, adjusted EPS beat estimates; raises 2026 outlook

  • Aug 5 - Novanta beats Q2 revenue estimates on organic growth, raises 2026 guidance


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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