ESAB (NYSE:ESAB) Issues FY 2026 Earnings Guidance

Key Points

• ESAB issued FY 2026 EPS guidance of $5.40–$5.50, below the analyst consensus estimate of $5.77. The company did not provide a meaningful revenue forecast.
• In its latest quarter, ESAB reported $1.35 in EPS, missing estimates by $0.03, while revenue of $807.63 million exceeded consensus expectations of $749.05 million.
• ESAB raised its quarterly dividend from $0.10 to $0.12 per share, equivalent to a $0.48 annualized payout and a 0.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $138.38.

ESAB (NYSE:ESAB - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 5.400-5.500 for the period, compared to the consensus EPS estimate of 5.770. The company issued revenue guidance of -.

ESAB Stock Performance

ESAB opened at $92.34 on Thursday. The company has a market capitalization of $5.62 billion, a price-to-earnings ratio of 27.32, a price-to-earnings-growth ratio of 1.77 and a beta of 1.19. The company has a debt-to-equity ratio of 0.91, a current ratio of 2.97 and a quick ratio of 2.26. ESAB has a 1-year low of $82.18 and a 1-year high of $137.42. The business has a 50 day moving average price of $91.79 and a two-hundred day moving average price of $102.53.

ESAB (NYSE:ESAB - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $1.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.38 by ($0.03). ESAB had a net margin of 7.11% and a return on equity of 15.04%. The firm had revenue of $807.63 million for the quarter, compared to the consensus estimate of $749.05 million. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. Research analysts predict that ESAB will post 5.72 EPS for the current fiscal year.

ESAB Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 17th. Investors of record on Friday, July 3rd were paid a dividend of $0.12 per share. This is an increase from ESAB's previous quarterly dividend of $0.10. This represents a $0.48 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, July 2nd. ESAB's dividend payout ratio (DPR) is 14.20%.

Analyst Ratings Changes

ESAB has been the topic of several research reports. Stifel Nicolaus dropped their price target on shares of ESAB from $141.00 to $137.00 and set a "buy" rating on the stock in a research report on Monday, July 20th. DA Davidson initiated coverage on shares of ESAB in a report on Monday, June 15th. They set a "buy" rating and a $130.00 target price for the company. Roth Capital raised their price objective on ESAB from $142.00 to $151.00 and gave the stock a "buy" rating in a research note on Tuesday, July 7th. Weiss Ratings reiterated a "hold (c)" rating on shares of ESAB in a research report on Friday, July 24th. Finally, Oppenheimer reduced their target price on shares of ESAB from $140.00 to $135.00 and set an "outperform" rating for the company in a research note on Tuesday, July 21st. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, ESAB currently has a consensus rating of "Moderate Buy" and an average target price of $138.38.

Institutional Investors Weigh In On ESAB

Several hedge funds have recently modified their holdings of ESAB. Price T Rowe Associates Inc. MD grew its position in ESAB by 11.7% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,852,692 shares of the company's stock worth $653,864,000 after purchasing an additional 613,327 shares during the last quarter. Durable Capital Partners LP grew its position in ESAB by 40.5% during the third quarter. Durable Capital Partners LP now owns 1,945,854 shares of the company's stock worth $217,430,000 after buying an additional 560,678 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in ESAB by 3.1% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,181,526 shares of the company's stock valued at $132,008,000 after acquiring an additional 35,782 shares during the period. Northern Trust Corp raised its holdings in ESAB by 0.3% in the 3rd quarter. Northern Trust Corp now owns 518,241 shares of the company's stock valued at $57,908,000 after acquiring an additional 1,652 shares in the last quarter. Finally, FIL Ltd lifted its position in shares of ESAB by 2.9% in the 4th quarter. FIL Ltd now owns 494,727 shares of the company's stock worth $55,271,000 after acquiring an additional 14,000 shares during the period. 91.13% of the stock is owned by institutional investors.

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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