olivLaw · US equity research
ESAB Corporation ESAB
General Industrial Machinery & Equipment, NEC · SIC 3569 · Vertical: General Industrial Machinery & Equipment, NEC (SIC 3569)
ESAB is a global producer of welding and cutting equipment and consumables, headquartered in Maryland, USA, that also supplies robotics, gas control systems and digital solutions. The company has widened its portfolio through acquisitions, and in 2026 it closed the Eddyfi deal, so its outlook now depends closely on integrating these assets and on fast-growing markets. Second quarter 2026 sales reached a record level.
At the close of 30 Oct 2026, ESAB Corporation (ESAB) stock was 69.76 USD (−5.90% on the day), with market capitalisation 4.3 bn USD, P/E 25.0 on diluted EPS of 2.80 USD over the last 12 months, dividend yield 0.60%, beta 1.37, 52-week range 64.51–134.82 USD. Latest reported quarter (Q2 2026): revenue of 807.6 m USD (+12.9% YoY), net income of 32.4 m USD (−51.6% YoY), diluted EPS 0.50 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 52.3
- neutral
- Bollinger (20, 2)
- 62.32 – 72.91
- in the upper half of the band · %B 0.70 · band width 15.7%
- SMA 50 / 200
- 70.10 / 93.46
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- 0.07 / -0.88
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +5.9% | −0.9% | +6.8 pp | — |
| 3 months | −19.4% | +1.2% | −20.6 pp | — |
| 6 months | −28.8% | +4.8% | −33.6 pp | — |
| Year to date | −37.6% | +10.7% | −48.3 pp | — |
| 1 year | −40.9% | +11.1% | −52.0 pp | −25.2% |
| 3 years | +10.2% | +80.7% | −70.5 pp | +32.8% |
| 5 years | unavailable | +64.6% | unavailable | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 03 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 673.3 m | 670.8 m | 678.1 m | 715.6 m | 727.8 m | 721.0 m | 745.6 m | 807.6 m |
| Cost of revenue | 419.5 m | 412.4 m | 422.9 m | 449.5 m | 458.5 m | 463.2 m | 470.5 m | 500.4 m |
| Gross profit | 253.8 m | 258.3 m | 255.2 m | 266.0 m | 269.3 m | 257.8 m | 275.1 m | 307.2 m |
| Research & development | 9.2 m | 10.2 m | 10.1 m | 10.5 m | 10.5 m | 12.9 m | 12.5 m | 13.3 m |
| SG&A | 145.9 m | 145.2 m | 140.9 m | 155.6 m | 158.3 m | 153.7 m | 174.5 m | 210.2 m |
| Operating income | 106.0 m | 111.4 m | 109.8 m | 109.1 m | 106.6 m | 86.6 m | 90.5 m | 78.7 m |
| Depreciation & amortisation | 17.1 m | 16.8 m | 17.5 m | 19.4 m | 21.9 m | 25.4 m | 23.9 m | 27.9 m |
| Pre-tax income | 89.1 m | 96.5 m | 93.1 m | 88.1 m | 83.0 m | 64.1 m | 64.9 m | 48.1 m |
| Income tax | 18.1 m | 22.9 m | 20.5 m | 18.3 m | 17.7 m | 12.7 m | 13.1 m | 11.7 m |
| Net income | 68.2 m | 53.7 m | 67.4 m | 66.9 m | 54.8 m | 37.7 m | 47.6 m | 32.4 m |
| Diluted EPS | 1.11 | 0.88 ≈ | 1.10 | 1.09 | 0.90 | 0.62 ≈ | 0.78 | 0.50 |
| Operating cash flow | 101.0 m ≈ | 126.9 m | 35.4 m | 46.6 m ≈ | 81.5 m ≈ | 97.1 m | 46.9 m | 33.4 m ≈ |
| Capex | 10.6 m | 24.7 m | 7.3 m | 9.2 m | 11.2 m | 19.6 m | 13.7 m | 17.7 m ≈ |
| Dividends paid | 4.9 m ≈ | 4.9 m | 4.9 m | 4.9 m ≈ | 6.1 m ≈ | 6.1 m | 6.1 m | 6.1 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 50 percentile of its own 18-quarter history (min 9.9, median 24.6, max 33.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Revenue | 2.0 bn | 2.4 bn | 2.6 bn | 2.8 bn | 2.7 bn | 2.8 bn |
| Revenue YoY | unavailable | +24.5% | +6.8% | +7.0% | −1.2% | +3.7% |
| Net income | 157.4 m | 235.1 m | 223.7 m | 205.3 m | 264.8 m | 226.8 m |
| Net income YoY | unavailable | +49.4% | −4.8% | −8.3% | +29.0% | −14.4% |
| Diluted EPS | 2.62 | 3.92 | 3.69 | 3.36 | 4.31 | 3.67 |
| Diluted EPS YoY | unavailable | +49.6% | −5.9% | −8.9% | +28.3% | −14.8% |
| net % | 8.1% | 9.7% | 8.6% | 7.4% | 9.7% | 8.0% |
| Free cash flow | 269.0 m | 215.2 m | 174.1 m | 282.3 m | 303.6 m | 213.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 185.9 m USD
- Financial debt
- 1.2 bn USD
- Net debt
- 1.0 bn USD
- Equity
- 2.2 bn USD
- Total assets
- 4.8 bn USD
- Debt / equity
- 0.56x
- Current ratio
- 1.90x
- ROE
- 11.3%
- ROA
- 5.2%
- FCF margin
- 7.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.0 bn | 2.4 bn | 2.6 bn | 2.8 bn | 2.7 bn | 2.8 bn | SEC (XBRL)· 20 Feb 2026verified |
| Cost of revenue | 1.3 bn | 1.6 bn | 1.7 bn | 1.8 bn | 1.7 bn | 1.8 bn | SEC (XBRL)· 20 Feb 2026verified |
| Gross profit | 682.5 m | 838.0 m | 885.5 m | 1.0 bn | 1.0 bn | 1.0 bn | SEC (XBRL)· 20 Feb 2026verified |
| Research & development | 34.8 m | 39.7 m | 36.0 m | 38.8 m | 39.2 m | 44.0 m | SEC (XBRL)· 20 Feb 2026verified |
| SG&A | 458.7 m | 512.8 m | 533.4 m | 587.5 m | 579.8 m | 608.4 m | SEC (XBRL)· 20 Feb 2026verified |
| Operating income | 202.1 m | 306.2 m | 329.1 m | 404.2 m | 447.5 m | 412.2 m | SEC (XBRL)· 20 Feb 2026verified |
| Depreciation & amortisation | 76.6 m | 75.9 m | 66.0 m | 75.0 m | 66.8 m | 84.1 m | SEC (XBRL)· 20 Feb 2026verified |
| EBITDA | 278.8 m ≈ | 382.1 m ≈ | 395.0 m ≈ | 479.2 m ≈ | 514.2 m ≈ | 496.3 m ≈ | SEC (XBRL)· 20 Feb 2026derived |
| Pre-tax income | 205.8 m | 319.1 m | 300.3 m | 319.1 m | 370.4 m | 328.3 m | SEC (XBRL)· 20 Feb 2026verified |
| Income tax | 46.0 m | 80.4 m | 69.2 m | 95.7 m | 77.3 m | 69.2 m | SEC (XBRL)· 20 Feb 2026verified |
| Net income | 157.4 m | 235.1 m | 223.7 m | 205.3 m | 264.8 m | 226.8 m | SEC (XBRL)· 20 Feb 2026verified |
| Diluted EPS | 2.62 | 3.92 | 3.69 | 3.36 | 4.31 | 3.67 | SEC (XBRL)· 20 Feb 2026verified |
| Weighted average diluted shares | 60.0 m | 60.0 m | 60.2 m | 60.7 m | 61.1 m | 61.3 m | SEC (XBRL)· 20 Feb 2026verified |
| Dividend per share | — | — | 0.15 | 0.23 | 0.30 | 0.38 | SEC (XBRL)· 20 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 49.2 m | 41.2 m | 72.0 m | 102.0 m | 249.4 m | 185.9 m | SEC (XBRL)· 20 Feb 2026verified |
| Receivables | — | 383.5 m | 374.3 m | 385.2 m | 370.3 m | 451.3 m | SEC (XBRL)· 20 Feb 2026verified |
| Inventories | — | 420.1 m | 416.8 m | 392.9 m | 403.7 m | 481.8 m | SEC (XBRL)· 20 Feb 2026verified |
| Current assets | — | 964.1 m | 988.7 m | 997.7 m | 1.1 bn | 1.3 bn | SEC (XBRL)· 20 Feb 2026verified |
| Property, plant & equipment, net | — | 286.3 m | 284.2 m | 294.3 m | 298.3 m | 381.9 m | SEC (XBRL)· 20 Feb 2026verified |
| Goodwill | 1.6 bn | 1.5 bn | 1.5 bn | 1.6 bn | 1.7 bn | 1.9 bn | SEC (XBRL)· 20 Feb 2026verified |
| Intangibles (excl. goodwill) | — | 521.4 m | 517.2 m | 499.5 m | 488.0 m | 673.0 m | SEC (XBRL)· 20 Feb 2026verified |
| Total assets | — | 3.5 bn | 3.8 bn | 3.8 bn | 4.0 bn | 4.8 bn | SEC (XBRL)· 20 Feb 2026verified |
| Accounts payable | — | 345.5 m | 316.3 m | 306.6 m | 318.5 m | 360.4 m | SEC (XBRL)· 20 Feb 2026verified |
| Short-term debt | — | — | — | 0 | 15.0 m | 2.4 m | SEC (XBRL)· 20 Feb 2026verified |
| Long-term debt | — | 0 | 1.2 bn | 1.0 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 20 Feb 2026verified |
| Current liabilities | — | 596.6 m | 601.6 m | 620.1 m | 632.1 m | 664.8 m | SEC (XBRL)· 20 Feb 2026verified |
| Total liabilities | — | 959.5 m | 2.4 bn | 2.2 bn | 2.2 bn | 2.6 bn | SEC (XBRL)· 20 Feb 2026verified |
| Equity | 2.5 bn | 2.5 bn | 1.4 bn | 1.6 bn | 1.8 bn | 2.2 bn | SEC (XBRL)· 20 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 309.2 m | 250.7 m | 214.4 m | 330.5 m | 355.4 m | 260.6 m | SEC (XBRL)· 20 Feb 2026verified |
| Capex | 40.1 m | 35.6 m | 40.2 m | 48.2 m | 51.8 m | 47.3 m | SEC (XBRL)· 20 Feb 2026verified |
| Free cash flow | 269.0 m ≈ | 215.2 m ≈ | 174.1 m ≈ | 282.3 m ≈ | 303.6 m ≈ | 213.3 m ≈ | SEC (XBRL)· 20 Feb 2026derived |
| Investing cash flow | -34.6 m | -35.3 m | -184.4 m | -62.2 m | -205.7 m | -479.9 m | SEC (XBRL)· 20 Feb 2026verified |
| Financing cash flow | -326.4 m | -221.6 m | 7.6 m | -219.7 m | 31.7 m | 113.7 m | SEC (XBRL)· 20 Feb 2026verified |
| Dividends paid | 0 | 0 | 6.1 m | 13.3 m | 17.0 m | 21.9 m | SEC (XBRL)· 20 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 50 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
30 Oct 2026Source: olivLaw, closing series
Market cap: 4.3 bn USD
Key indicators
Coverage and freshness
Score by group
- Returns45
- Quality88
- Growth13
- Valuation55
- Balance sheet28
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 77.82 – 90.76 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · not enough peers
- Peers: P/E77.82 – 90.76 (Mid 84.89)4 companies used · median multiple 30.4x · quartiles 27.8x – 32.5xHSAI, NDSN, RRX, TAYD
- Dividend discount (DDM)outside the aggregate4.99 – 6.72 (Mid 5.73)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 50/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 7.4% | 90 (vs peers) | 11% |
| Net margin · Quality | 5.7% | 71 (vs peers) | 7% |
| FCF conversion · Quality | 114.0% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 3.1% | 26 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -0.2% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 4.7x | 0 (on a fixed band) | 11% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.0x | 97 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 25.0x | 100 (vs peers) | 11% |
| EV/EBITDA · Valuation | 14.1x | 8 (on a fixed band) | 11% |
| FCF yield · Valuation | 4.5% | 57 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 0.6% | 8 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 12.4% | 100 (on a fixed band) | 4% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet28/100 · 2/3 factors with a value
- Growth13/100 · 2/2 factors with a value
- Quality88/100 · 3/3 factors with a value
- Returns45/100 · 2/2 factors with a value
- Valuation55/100 · 3/3 factors with a value
Memo
ESAB Corporation (ESAB). Latest full fiscal year: 2025; data up to 2026-07-03.
Figures computed from the financial statements: revenue 2.8 bn USD in 2025; YoY growth 3.7%; net margin 5.7%; ROE 7.5%; net debt/EBITDA 4.7x.
The estimated value range is 77.82–90.76 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 84.89 USD, the price of 69.76 USD leaves a potential of 21.7% (value / price − 1) and a margin of safety of 17.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 50/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 7.4%
- Net margin: 5.7%
- FCF conversion: 114.0%
- Current ratio: 2.0x
- P/E (TTM): 25.0x
- Payout ratio (FCF): 12.4%
- The price is below the estimated value range
What contradicts it
- Revenue CAGR 3Y: 3.1%
- EPS CAGR 3Y: -0.2%
- Net debt / EBITDA: 4.7x
- EV/EBITDA: 14.1x
- Shareholder yield (distributions): 0.6%
Not assessed (insufficient data or a ratio without meaning): Interest coverage.
Versus the vertical median
General Industrial Machinery & Equipment, NEC (SIC 3569) · same industry (4-digit SIC) · compared with 14 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SYMSymbotic Inc. | 22.9 bn | 789.3 | 1.8% | 0.3% | +25.7% | −53% / +11% |
| NDSNNordson Corporation | 18.0 bn | 32.6 | 17.8% | 18.6% | +3.8% | +39% / +52% |
| RRXRegal Rexnord Corp | 10.5 bn | 32.4 | 4.8% | 5.4% | −1.6% | +12% / +33% |
| ESABESAB Corporation | 4.3 bn | 25.0 | 7.5% | 5.7% | +3.7% | −41% / +10% |
| OUSTOuster, Inc. | 2.1 bn | — | -18.0% | -26.0% | +52.5% | −11% / +679% |
| CHRNChronoscale Holdings Corporation | 2.1 bn | — | -42.0% | -70.3% | +459.4% | +167% / −12% |
| HSAIHesai Group | 1.9 bn | 28.3 | 6.9% | 14.4% | +52.1% | −49% / +26% |
| HLPHongli Group Inc. | 298.2 m | 135.3 | 3.5% | 9.9% | +39.0% | +165% / +89% |
| AZA2z Cust2mate Solutions Corp. | 269.0 m | — | -82.1% | -477.6% | +47.0% | −17% / +60% |
| SERVServe Robotics Inc. | 225.4 m | — | -64.6% | -2,315.8% | +46.2% | −80% / unavailable |
| TAYDTaylor Devices, Inc. | 180.2 m | 26.4 | 9.9% | 17.5% | −10.0% | +22% / +153% |
| RRRichtech Robotics Inc. | 20.1 m | — | -16.2% | -700.1% | +19.0% | −80% / unavailable |
| KITTNauticus Robotics, Inc. | 10.7 m | — | — | -1,132.2% | +191.8% | −98% / −100% |
| INLFInlif Limited | 1.2 m | — | -41.3% | -29.6% | +16.5% | −100% / unavailable |
| ATSATS Corp | — | — | -1.7% | -1.1% | −16.5% | −33% / −45% |
1- and 3-year price returns: for ESAB from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 40.36 Total return -42% · Per year -42% | 71.41 Total return 3% · Per year 3% | 107.62 Total return 55% · Per year 55% |
| 3 years | 38.08 Total return -44% · Per year -18% | 75.91 Total return 11% · Per year 3% | 125.77 Total return 83% · Per year 22% |
| 5 years | 35.93 Total return -46% · Per year -12% | 80.69 Total return 19% · Per year 4% | 146.98 Total return 115% · Per year 17% |
- Exit P/E± 18.98
- Net margin± 13.28
- Annual revenue growth± 11.05
- Annual dilution± 1.12
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
ESAB is a global producer of welding and cutting equipment and consumables, headquartered in Maryland, USA, that also supplies robotics, gas control systems and digital solutions. The company has widened its portfolio through acquisitions, and in 2026 it closed the Eddyfi deal, so its outlook now depends closely on integrating these assets and on fast-growing markets 13. Second quarter 2026 sales reached a record level 3.
SWOT
Strengths
- A broad portfolio of consumables and equipment, where the consumables share brings recurring revenue, and a strong global presence with operations in many countries.
- The EBXai management system and a culture of continuous improvement, which management regards as an important competitive advantage.
- Established experience in acquisitions and their integration, which has allowed rapid expansion of the offering and closing of deals ahead of schedule.
Weaknesses
- Heavy dependence on foreign markets exposes the company to currency, political and trade risks that can affect results.
- The core market in developed economies is mature and cyclical, which makes organic growth vulnerable to drops in industrial investment.
- Margins can be squeezed by raw material and logistics costs, especially if not all increases can be passed on to customers.
Opportunities
- High growth markets and expansion into inspection and monitoring through Eddyfi could open new segments with higher margins.
- Automation, robotics and digital solutions could increase the value offered to customers and strengthen customer loyalty.
- If efficiency programs and acquisition integration reach their targets, adjusted margins could improve over time.
Threats
- Trade tariffs and retaliatory measures can raise costs and cause supply chain disruptions.
- Geopolitical conflicts and sanctions can restrict access to certain markets and affect currency values.
- Large and regional competitors may pressure prices, and delays in integrating acquisitions could reduce the expected benefits.
Risks
- Cyclicality of industrial investmenthigh
Demand depends on customers' capital and maintenance spending. A prolonged decline could reduce orders and the coverage of fixed costs.
- Exposure to international operationshigh
Most sales come from outside the US, creating political, currency and regulatory risks that can affect results.
- Tariffs and trade policymedium
Tariffs on steel and aluminum and retaliatory measures can raise costs and change sourcing, with effects that are hard to anticipate.
- Acquisition integrationmedium
If the integration of Eddyfi or other acquisitions runs into difficulties, expected synergies could be delayed or reduced.
- Conflicts and sanctionsmedium
The war in Ukraine and Middle East tensions can affect logistics, energy prices and operations in the region, and sanctions can restrict access to certain markets.
Investment thesis
What would need to be true (bull case)
- If the Eddyfi acquisition integrates well, the company could enter inspection segments with higher margins and faster growth than its core market.
- The record second quarter 2026 sales and the raised guidance suggest that demand and acquisitions can offset weak organic pressures.
- The share of consumables, which is recurring, and the global presence could support revenue even in a weaker industrial cycle.
What would break the thesis
- Organic growth has remained modest, at only 2.5% in the quarter, which could indicate that industrial demand is still fragile.
- Most of the raised guidance comes from acquisitions, so if integration proves difficult, performance could fall short of expectations.
- Tariffs, raw material costs and regional conflicts could keep compressing margins, and higher acquisition debt could limit flexibility.
What to watch
- Integration of Eddyfi and its contribution to sales and marginsQ3 2026
- Development of core organic sales growth in both segmentsQ3 2026
- Update of core adjusted EBITDA guidance and logistics cost trendsQ4 2026
- Effect of US trade policy on steel and aluminum costsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
ESAB Corporation, founded in 1904 and based in North Bethesda, Maryland, formulates, develops, manufactures and supplies cutting and welding consumables and equipment, robotics and gas control equipment, under several brands, most notably ESAB 1. Products reach customers through independent distributors and direct salespeople in about 150 countries 1. The company describes itself as a focused premier industrial compounder, and its strategy relies on acquisitions that extend its workflow solutions 1. Besides equipment and consumables, ESAB offers digital solutions and automation 1.
Most revenue comes from outside the United States: about 80% of 2025 sales came from operations abroad, and 40% of net sales were in the Americas segment, versus 60% in EMEA and APAC 1. Consumables made up 66% of sales and equipment 34% 1. The gas control business is positioned in markets such as medical and specialty gas control 1.
Acquisitions are a core part of the strategy: in 2025 the company completed four acquisitions, and in January 2026 it agreed to acquire Eddyfi, a global leader in advanced inspection and monitoring technologies, for about 1.45 billion dollars 1. The deal was closed ahead of schedule, according to the second quarter 2026 release 3.
Segments
Americas
The Americas segment includes operations in North America and South America. It generated 40% of net sales in 2025 and an adjusted EBITDA margin of 19.9% 1.
Market context
The company expects its addressable market to reach about 45 billion dollars by the end of 2028 1. The welding and cutting market is considered mature in developed economies such as North America and Western Europe and is cyclical, with demand depending on industrial capital spending 1. About 52% of 2025 revenue came from high growth markets such as South America, Eastern Europe, India, Asia Pacific and the Middle East, which the company expects to grow faster than developed markets 1.
Competition is fragmented, and no single company competes with ESAB across all markets; regional firms, specialists and larger players each target niches 1. The main criteria are technical ability to meet specifications, product quality, brand, price, application expertise and aftermarket support 1.
Competitive position
ESAB faces regional competitors, firms specialized in particular markets and larger competitors. The filings explicitly name Lincoln Electric and the welding business within Illinois Tool Works as active in the same markets 1. The company considers itself a leading competitor in each of its markets 1.
ESAB's stated advantages are global scale combined with regional agility, a broad range of consumables and equipment, and its EBXai management system 1. If rivals expand their digital and automation offerings, competitive pressure could increase.
- Lincoln ElectricLECO
Active in welding markets; named explicitly in ESAB filings as a competitor in the same markets.
- Illinois Tool Works, welding businessITW
The welding business of a larger industrial group, named as active in ESAB's markets.
- Regional competitors
Well-established regional firms present in local markets and competing in specific niches.
- Niche specialists
Companies competing on particular product lines or applications without a broad generalist presence.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report (amendment)06 Aug 2026Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report12 Jun 2026Departure or appointment of officers · Financial statements and exhibits
- Current report02 Jun 2026Acquisition or disposition of assets · Item 3.02 · Item 3.03 · Amendments to articles or bylaws · Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report12 May 2026Shareholder vote
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Current report02 Apr 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement27 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / ESAB Corporation · 20 Feb 2026
- [2] Form 10-Q, quarter ended 2026-07-03 · SEC / ESAB Corporation · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / ESAB Corporation · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.