ESAB (NYSE:ESAB) Issues FY 2026 Earnings Guidance

ESAB (NYSE:ESAB) updated its FY 2026 earnings guidance on Monday. The company provided earnings per share (EPS) guidance of 5.700-5.900 for the period, compared to the consensus estimate of 5.920. The company issued revenue guidance of $2.9 billion-$3.0 billion, compared to the consensus revenue estimate of $2.9 billion. ESAB also updated its FY 2025 guidance to 5.250-5.270 EPS.

Analysts Set New Price Targets

ESAB has been the subject of a number of recent research reports. Stifel Nicolaus boosted their price target on ESAB from $143.00 to $144.00 and gave the company a “buy” rating in a research note on Friday, January 23rd. Weiss Ratings reiterated a “hold (c+)” rating on shares of ESAB in a research report on Monday, December 29th. Wall Street Zen cut shares of ESAB from a “buy” rating to a “hold” rating in a research note on Sunday, December 28th. JPMorgan Chase & Co. reduced their price objective on ESAB from $140.00 to $138.00 and set an “overweight” rating for the company in a research note on Wednesday, January 14th. Finally, UBS Group increased their target price on shares of ESAB from $147.00 to $149.00 and gave the stock a “buy” rating in a report on Monday, October 20th. Six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $142.13.

ESAB Trading Down 5.2%

ESAB stock opened at $114.85 on Tuesday. ESAB has a 1 year low of $100.17 and a 1 year high of $135.84. The firm’s 50 day moving average price is $115.43 and its 200-day moving average price is $116.12. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.99 and a quick ratio of 1.24. The stock has a market cap of $6.97 billion, a P/E ratio of 28.93, a PEG ratio of 2.11 and a beta of 1.24.

ESAB Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Wednesday, December 31st were issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date was Wednesday, December 31st. ESAB’s payout ratio is currently 10.08%.

More ESAB News

Here are the key news stories impacting ESAB this week:

• Positive Sentiment: Acquisition expands addressable market — ESAB agreed to acquire Eddyfi Technologies, a Quebec‑based maker of advanced nondestructive testing (NDT) and inspection instruments, strengthening ESAB’s workflow solutions beyond welding and consumables and adding higher‑margin instrumentation and services potential. ESAB to buy Canadian testing equipment maker Eddyfi for $1.45 billion
• Positive Sentiment: Management frames deal as strategic fit — ESAB and Eddyfi say the combination will create a broader “complete workflow” solutions provider, which could drive cross‑sell opportunities across inspection, equipment and consumables over time. ESAB Corporation to Acquire Eddyfi Technologies
• Neutral Sentiment: Deal details and integration timeline still pending — Definitive agreement signed; investors will watch integration plans, disclosed synergies and any financing structure in upcoming filings and calls. Eddyfi Announces Signing of Definitive Agreement
• Neutral Sentiment: M&A call transcript available — Management held an M&A call; the transcript may provide more on rationale, expected synergies and timing. ESAB M&A Call Transcript
• Negative Sentiment: Market reacted negatively to the purchase price and deal size — Coverage shows shares fell after the $1.45B headline; investors likely worried about the premium paid, near‑term dilution or execution risk. ESAB stock falls after announcing $1.45 billion acquisition
• Negative Sentiment: EPS guidance slightly below consensus — ESAB updated FY2026 EPS guidance to $5.70–$5.90 (vs. consensus ~5.92) and FY2025 guidance modestly under prior consensus; that near‑term miss likely intensified selling pressure.
• Negative Sentiment: Financing and leverage are watchpoints — The $1.45B deal represents a material amount relative to ESAB’s market cap (~$7B); investors will focus on how the transaction is funded and any impact on leverage and buyback/dividend capacity. PEHub coverage of the deal

Hedge Funds Weigh In On ESAB

Several institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its position in ESAB by 29.4% in the first quarter. Royal Bank of Canada now owns 51,867 shares of the company’s stock worth $6,042,000 after acquiring an additional 11,772 shares in the last quarter. Millennium Management LLC bought a new stake in shares of ESAB in the 1st quarter valued at approximately $10,616,000. Goldman Sachs Group Inc. boosted its holdings in shares of ESAB by 25.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 458,339 shares of the company’s stock worth $53,396,000 after purchasing an additional 94,335 shares during the period. Northwestern Mutual Wealth Management Co. increased its position in shares of ESAB by 109.4% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 333 shares of the company’s stock valued at $40,000 after purchasing an additional 174 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in shares of ESAB by 183.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 972 shares of the company’s stock valued at $117,000 after purchasing an additional 629 shares during the last quarter. Hedge funds and other institutional investors own 91.13% of the company’s stock.

ESAB Company Profile

ESAB Corporation is a global leader in welding, cutting and gas control technologies, offering a comprehensive portfolio of equipment, consumables and automation solutions. The company’s products include welding power sources, cutting machines, torches, electrodes, filler metals and gas regulating equipment designed to meet the needs of diverse industries. ESAB serves sectors such as construction, shipbuilding, automotive, energy, infrastructure and manufacturing, providing both standard and customized solutions to enhance productivity and quality in metal fabrication and processing.

Founded in 1904 by Swedish inventor Oscar Kjellberg, ESAB pioneered the development of coated welding electrodes, laying the groundwork for modern welding practices.