ESAB Corporation to Issue Quarterly Dividend of $0.12 (NYSE:ESAB)

Key Points

• ESAB declared a quarterly dividend of $0.12 per share, payable October 16 to shareholders of record October 2. The dividend equates to $0.48 annually and a 0.7% yield.
• The dividend appears well covered, with an 8.3% payout ratio based on current earnings and an expected 7.3% payout ratio based on next year’s projected EPS of $6.54.
• ESAB shares fell 4.9% to $69.22, near their 12-month low, after the company reported quarterly EPS of $1.33, below the $1.37 consensus estimate, despite revenue rising 12.9% year over year to $807.63 million.

ESAB Corporation (NYSE:ESAB - Get Free Report) declared a quarterly dividend on Thursday, September 10th. Shareholders of record on Friday, October 2nd will be given a dividend of 0.12 per share on Friday, October 16th. This represents a c) dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Friday, October 2nd.

ESAB has a payout ratio of 8.3% meaning its dividend is sufficiently covered by earnings. Equities analysts expect ESAB to earn $6.54 per share next year, which means the company should continue to be able to cover its $0.48 annual dividend with an expected future payout ratio of 7.3%.

ESAB Trading Down 4.9%

NYSE:ESAB opened at $69.22 on Friday. The company has a market capitalization of $4.30 billion, a P/E ratio of 24.81, a PEG ratio of 1.42 and a beta of 1.17. The company has a current ratio of 1.96, a quick ratio of 1.22 and a debt-to-equity ratio of 0.99. ESAB has a 12 month low of $68.22 and a 12 month high of $137.42. The firm has a fifty day simple moving average of $84.12 and a 200-day simple moving average of $94.11.

ESAB (NYSE:ESAB - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $1.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.37 by ($0.04). The firm had revenue of $807.63 million during the quarter, compared to analyst estimates of $755.64 million. ESAB had a net margin of 5.75% and a return on equity of 14.48%. ESAB's revenue was up 12.9% on a year-over-year basis. During the same period in the previous year, the company earned $1.36 earnings per share. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. On average, equities research analysts anticipate that ESAB will post 5.46 earnings per share for the current year.

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.

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