ESAB trims its profit target after record sales
ESAB cut its annual core earnings and organic-growth forecasts despite record sales. The original August outlook already included Eddyfi and its financing.
Ticker Byline
ESAB Corporation
ESAB supplies equipment and consumables for welding and cutting, alongside inspection and testing technologies. Its core financial measures exclude Russia.
- Ticker
- ESAB
- Exchange
- XNYS
- SEC CIK
- 0001877322
Eddyfi enlarged ESAB in June. November guidance lowered expected organic growth and core earnings despite acquisition-driven sales growth. The August forecast already included Eddyfi and its financing.
Quarterly results
| Measure | 2026 | 2025 |
|---|---|---|
| Revenue | $824.5 | $727.8 |
| Core adjusted EBITDA | $156.1 | $133.4 |
Current-quarter core revenue was $786.8 million and core adjusted diluted EPS was $1.30. Total-company net income attributable to common shareholders was $36.1 million, including discontinued operations and after preferred dividends.
Core adjusted EPS excludes Russia, assumes conversion of the preferred shares and adds their dividends back. Mandatory convertible preferred equity is separate from borrowing.
Annual outlook
ESAB now expects core adjusted EBITDA of $603 million to $607 million, down from $615 million to $625 million in August. Core adjusted EPS falls to $5.28 to $5.33 from $5.40 to $5.50. Expected core organic sales growth narrows to 1.6% to 2%, from 2% to 4%.
Cash and acquisition funding
Operating cash flow for the first nine months was $153.0 million, compared with $163.5 million a year earlier. Adjusted free cash flow was $140.9 million. That measure adds back specified acquisition and discontinued-operation payments as well as deducting capital spending.
At October 2, cash and cash equivalents were $188.6 million and debt principal was approximately $2.347 billion. About $51 million of that cash was held in Russia, where withdrawals can be delayed.
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