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ESAB Corporation
NYSE: ESAB Industrials Metals 🔎 Screen
$4.3B
Market Cap
30.4
P/E
1.97
PEG
12.1%
ROCE
12.9%
ROE
0.61
D/E
16.4%
OPM
-47.4%
% from 52W High
16
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for ESAB including FX impact
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About

ESAB Corporation engages in the formulation, development, manufacture, and supply of consumable products and equipment for use in cutting, joining, automated welding, and gas control equipment. It offers its products through independent distributors and direct salespeople. It operates in Europe, Asia Pacific, South America, and the Middle East. ESAB Corporation was founded in 1904 and is headquartered in North Bethesda, Maryland.

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⭐ Superinvestors Holding ESAB
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 131.1K $12.7M 0.02% Mar 2026
Steve Cohen Point72 Asset Management 44.1K $4.3M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED ESAB Q1 2026: Record sales $715M, 10% core growth; reiterates FY guidance
Revenue & Profitability
Total core sales grew 10% year-over-year to $715 million. Adjusted EBITDA was $136 million, up 6% year-over-year, with a 19% margin. Adjusted free cash flow was $40 million, with cash conversion of 49% (up from 40% prior quarter). Net leverage stood at 1.9x. Full-year guidance is reiterated: total sales growth 6%-9%, adjusted EBITDA $575-$595 million, adjusted EPS $5.70-$5.90.
Outlook
Management sees stable demand and has reiterated guidance despite a dynamic environment. The company is gaining share in Europe, aided by defense spending and local presence. The Middle East (7% of sales) experienced limited disruption from the Iran conflict, with long-term fundamentals remaining attractive. The company expects a rebound in volumes through the year as tariff comparables ease and price actions take effect.
Growth Drivers
Key growth levers include acquisitions (EWM, Aktiv grew double digits in Q1; Eddyfi expected mid-2026), new products (Ruffian 270, Aristo Edge, Tetrix 350), and expansion in additive manufacturing and TIG welding (adding $900 million servable market). Defense spending in Europe and anticipated rebuild in the Middle East post-conflict are tailwinds. Automation orders booked for H2 2026 also support growth.
Balance Sheet & CapEx
Not explicitly discussed in the call, but the company is investing in manufacturing footprint reshaping in the Americas and has made investments on the ground in Saudi Arabia. Over 40 AI projects are underway, contributing to near-term productivity and long-term growth.
Margins
Gross margins have improved from ~35% in 2016 to ~38% currently, with equipment products near 45% and Eddyfi at ~65%. The company expects consolidated gross margins to exceed 40% in 2027 and beyond. Adjusted EBITDA margin was 19% in Q1 2026, impacted by 40 bps from EWM (dilutive to EBITDA for first three quarters) and 30 bps from the Iran conflict. Management expects EWM to become EBITDA accretive by Q4. EBXai operating system drives productivity and margin expansion.
Key Risks
Risks flagged include the conflict in Iran, which caused higher costs (freight, tungsten, nickel, steel) and a 30 bps EBITDA headwind in Q1. Management noted potential for further disruption if the conflict continues, but expects price actions to offset. Tariff-related pull-ahead demand in prior year created volume headwinds in Q1. The company is also mindful of the dynamic macro environment, though guidance is reiterated.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Record Q2 sales and Adjusted EBITDA were driven by robust equipment and automation growth, with the Eddyfi acquisition accelerating margin expansion and innovation. Raised 2026 guidance reflects strong organic and acquisition-driven growth, despite Middle East headwinds.
Q1 2026 Q1 2026 2026-05-07
Record Q1 sales and EBITDA growth driven by acquisitions and strong execution, with guidance reiterated for 2026. Gross margins are set to exceed 40% by 2027, and the Eddyfi acquisition will further expand high-margin opportunities.
Q3 2025 Q3 2025 2025-10-29
Q3 saw 8% sales growth and a return to positive organic growth, driven by strong execution and the early EWM acquisition. Guidance for 2025 was raised, with margin expansion and robust cash flow positioning the company for further M&A and long-term value creation.
Q2 2025 Q2 2025 2025-08-06
Record adjusted EBITDA margins and strong EMEA/APAC growth offset tariff headwinds in the Americas. Guidance was raised on the back of robust acquisitions, productivity gains, and improving North American conditions, with automation and Mexico expected to recover in H2.
Q1 2025 Q1 2025 2025-05-01
Record Q1 margin and strong cash flow highlight robust execution, with growth led by equipment and gas control. Bavaria acquisition boosts guidance, while tariff headwinds are mitigated by pricing and supply chain actions.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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