ESAB Corporation reported record third quarter results with reported sales growing 13.3% to $825 million, exceeding analyst expectations. However, the company lowered its full-year 2026 guidance for organic growth, adjusted EBITDA, and adjusted EPS, citing a dynamic global environment and increased inflationary pressures.
Key Highlights
- Core organic sales grew 2.3% year-over-year, with positive growth contributions from both the Americas and EMEA & APAC segments.
- Core adjusted EBITDA rose 17.0% to $156 million, with margins expanding 40 basis points to 19.8% driven by the EBXai operating system.
- The company revised its 2026 core organic growth forecast downward to 1.6%–2.0%, from the previous 2.0%–4.0% range.
- Full-year core adjusted EPS guidance was reduced to a range of $5.28–$5.33, compared to the previous expectation of $5.40–$5.50.
- Integration of Eddyfi Technologies and EWM acquisitions remains a primary driver of reported growth, though increased FX headwinds (now expected at 2.0%) are weighing on results.