ESAB Corporation (ESAB) AI Stock Analysis

ESAB Corporation specializes in the formulation, development, manufacturing, and supply of consumable products and equipment essential for cutting, joining, and automated welding processes, along with gas control equipment. Its portfolio includes welding consumables like electrodes, cored and solid wires, and fluxes, alongside cutting consumables and equipment ranging from portable units to large-scale automated cutting and welding systems. ESAB also delivers software and digital tools for remote monitoring, digital documentation, and operational analytics. It serves industries such as construction, infrastructure, transportation, energy, and medical and life sciences across global distribution networks.

Between FY2021 and FY2025, ESAB's revenue increased from $2.43B to $2.84B, reflecting a 5-year CAGR of 7.8%. Annual operating margin improved from 12.6% in FY2021 to 17.3% in FY2025, while gross margin shifted from 34.5% to 35.5%. Over that period, net income moved from $235.1M in FY2021 to $226.8M in FY2025, with diluted EPS rising from $1.13 to $5.28. Over the trailing twelve months ended June 30, 2026, revenue stood at $3.00B with an operating margin of 12.0%. In the latest quarter, revenue grew 12.9% year-over-year, while quarterly earnings declined 54.1%.

As of June 30, 2026, ESAB held $217.5M in cash and short-term investments against $2.42B in total debt, resulting in net debt of $2.21B. The debt-to-equity ratio stood at 0.95 with shareholders' equity of $2.54B and a current ratio of 1.96. Total assets totaled $6.56B. In FY2025, the company generated $260.6M in operating cash flow and $213.3M in free cash flow, while deploying $47.3M toward capital expenditures and $21.9M toward dividends. Its share count expanded 2.7% over 5 years.

ESAB trades at a trailing P/E of 20.4x and a forward P/E of 10.7x, both lower than the median of its US-listed Industrials peers at 24.8x and 17.2x, respectively. Its price-to-sales of 1.4x is slightly below the peer median of 1.5x, while its EV/EBITDA of 14.6x compares to the peer median of 13.9x. The stock has dropped 46.0% over the trailing 12 months, underperforming the S&P 500 (SPY), which gained 16.8% over the same period.

ESAB pays an annualized forward dividend of $0.48 per share, which yields 0.73% based on a share price of $65.35. The dividend is distributed on a quarterly schedule and represents a payout ratio of 8.3%. ESAB has maintained dividend payments for 5 consecutive years, with its last ex-dividend date on October 2, 2026.

Wall Street sentiment is positive, with 9 Strong Buy, 1 Buy, and 1 Hold ratings. The mean price target of $123.64 implies an upside of 89.2% from the last close of $65.35. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $5.42 and revenue of $3.06B. ESAB beat EPS estimates in 1 of the last 4 quarters, and the next earnings date is November 4, 2026.

This page is an AI-written research summary of ESAB Corporation (ESAB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ESAB income statement, ESAB balance sheet, ESAB key metrics, ESAB analyst forecast, ESAB chart. See the ESAB stock overview for the latest quote and news.