ESAB Q1 sales beat analyst estimates on acquisitions

ESAB

07/05/2026 11:42

Overview

US industrial compounder reported Q1 sales up 10%, beating analyst expectations

Adjusted EPS for Q1 rose 5% yr/yr but missed analyst expectations

Company reiterated full-year 2026 outlook; acquisitions contributed double-digit growth

Outlook

ESAB reiterates 2026 core organic sales growth outlook of 2.0% to 4.0%

Company expects 2026 core adjusted EBITDA of $575 mln to $595 mln

ESAB sees 2026 core adjusted EPS of $5.70 to $5.90

Result Drivers

ACQUISITIONS DRIVE GROWTH - Company said EWM and Aktiv acquisitions delivered double-digit growth and outperformed expectations

ORGANIC SALES DECLINE - Core organic sales fell 1% as compared to the prior year, offset by acquisition-related gains

SUPPLY CHAIN AND COST PRESSURES - Company cited supply chain disruptions and higher input costs due to Middle East conflict, with pricing and operational actions implemented to offset impact

Company press release: ID:nBw1yV6cba

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$746 mln
$718.92 mln (9 Analysts)
Q1 Adjusted EPS
Miss
$1.31
$1.34 (8 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "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 $140.00, about 37.9% above its May 6 closing price of $101.53

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago

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.)