A Business at a Glance
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ESAB Corp
ESAB
$5.8B
Mkt Cap
$84.44
+0.92%
ESAB Corp (ESAB) has a current P/E ratio of 18.6, compared to its historical median P/E of 27.0. The stock is currently considered Cheap based on its historical valuation range.
ESAB Corp (ESAB) has a 5-year average return on invested capital (ROIC) of 11.0%. This indicates solid capital allocation.
ESAB Corp (ESAB) has a market capitalization of $5.1B. It is classified as a mid-cap stock.
Yes, ESAB Corp (ESAB) pays a dividend with a trailing twelve-month yield of 0.45%.
Based on historical P/E analysis, ESAB Corp (ESAB) appears cheap. The current P/E of 18.6 is 31% below its historical median of 27.0. The estimated fair value CAGR (P/E method) is 1.5%.
ESAB Corp (ESAB) operates in the General Industrial Machinery & Equipment, Nec industry, within the Industrials sector.
ESAB Corp (ESAB) reported annual revenue of $2.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
ESAB Corporation, founded in 1904, is a focused premier industrial compounder that formulates, develops, manufactures and supplies consumable products and equipment including cutting, joining and welding robotics, gas control equipment, and digital solutions marketed under the ESAB brand and other names to customers in approximately 150 countries. The company operates through two reportable segments—Americas (North America and South America) and EMEA & APAC (Europe, Middle East, India, Africa and Asia Pacific)—and distributes its products through both independent distributors and direct sales channels to a highly diversified industrial customer base that values quality, reliability, design, application engineering support and timely delivery. ESAB's business model combines consumable products with equipment sales, with approximately 52% of 2025 revenues derived from high-growth markets including South America, Eastern Europe, India, Asia Pacific and the Middle East, which are expected to grow at greater than twice the rate of developed markets. The company's competitive moat is built on its management team's access to and experience with its proprietary ESAB Business Excellence (EBXai) methodology—a comprehensive set of tools and repeatable processes for continuous improvement—combined with its unmatched global footprint, technical ability to meet customer specifications, brand names, and application expertise. Acquisitions are a core part of ESAB's strategy to strengthen the company and accelerate growth, with four acquisitions completed during 2025 and additional acquisitions expected in the future. The company competes in a market expected to be approximately $45 billion by the end of 2028, positioning ESAB as one of the prominent industry players with a substantial position in every major market worldwide.
【Strategic M&A and margin expansion】 Management is accelerating ESAB's compounder journey through acquisitions including Eddyfi (expected to close mid-year 2026) and prior acquisitions of EWM, Bavaria, SUMIG, and Sager, which are expected to extend the company's workflow solutions and strengthen its portfolio of proprietary consumables and equipment. The company is targeting a shift in mix towards gas control and welding equipment to support a 2028 target of 22% plus EBITDA margins, with management expecting strong margin improvement in 2026 as volumes improve and EBX-driven cost and restructuring initiatives take hold. Management expects better price realization from Q1 to Q2 2026 and anticipates price-cost neutrality at least through Q2, with continued efforts to achieve price-cost positivity as the year progresses, while also benefiting from tariff and quota advantages expected in Europe mid-year. The company expects strong full-year cash generation and is focused on deleveraging, with net leverage expected to step up temporarily upon the Eddyfi acquisition close but anticipated to return below 3x by year-end 2026, positioning ESAB to pursue accelerated M&A activity and compound long-term shareholder value.
| Metric | Target | Period |
|---|---|---|
| Adjusted EBITDA | $575 million-$595 million | FY2026 |
| Adjusted EPS | $5.70-$5.90 | FY2026 |
Adjusted EBITDA (FY2026): “Our adjusted EBITDA range remains $575 million-$595 million, and our adjusted EPS range remains $5.70-$5.90.”
Adjusted EPS (FY2026): “Our adjusted EBITDA range remains $575 million-$595 million, and our adjusted EPS range remains $5.70-$5.90.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call, Q4 FY2024 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.9B | 2.8B | 2.7B | 2.8B | 2.6B | 2.4B |
| Net Income | 232M | 251M | 286M | 216M | 225M | 235M |
| EPS | $3.82 | $3.67 | $4.31 | $3.36 | $3.69 | $2,351,100.00 |
| Free Cash Flow | 218M | 213M | 304M | 282M | 174M | 215M |
| ROIC | 9.6% | 11.0% | 13.6% | 11.1% | 10.1% | 9.1% |
| Gross Margin | 36.7% | 36.9% | 37.9% | 36.6% | 34.1% | 34.5% |
| Debt/Equity | 0.93 | 0.62 | 0.66 | 0.70 | 0.97 | 0.04 |
| Dividends/Share | $0.38 | $0.38 | $0.30 | $0.23 | $0.10 | $0.00 |
| Operating Income | 393M | 412M | 447M | 404M | 329M | 306M |
| Operating Margin | 13.5% | 14.5% | 16.3% | 14.6% | 12.7% | 12.6% |
| ROE | 10.6% | 12.8% | 16.9% | 14.6% | 11.8% | 9.4% |
| Shares Outstanding | 61M | 69M | 66M | 64M | 61M | 0M |
| Metric | |||||||
|---|---|---|---|---|---|---|---|
| Income Statement | |||||||
| Revenue | 2.0B | 2.4B | 2.6B | 2.8B | 2.7B | 2.8B | 2.9B |
| Gross Margin | 35.0% | 34.5% | 34.1% | 36.6% | 37.9% | 36.9% | 36.7% |
| R&D | 35M | 40M | 36M | 39M | 39M | 44M | 46M |
| SG&A | 459M | 513M | 533M | 587M | 580M | 608M | 642M |
| EBIT | 202M | 306M | 329M | 404M | 447M | 412M | 393M |
| Op. Margin | 10.4% | 12.6% | 12.7% | 14.6% | 16.3% | 14.5% | 13.5% |
| Net Income | 157M | 235M | 225M | 216M | 286M | 251M | 232M |
| Net Margin | 8.1% | 9.7% | 8.7% | 7.8% | 10.4% | 8.8% | 8.0% |
| Non-Recurring | 25M | 19M | 23M | 26M | 11M | 33M | 33M |
| Returns on Capital | |||||||
| ROIC | N/A | 9.1% | 10.1% | 11.1% | 13.6% | 11.0% | 9.6% |
| ROE | N/A | 9.4% | 11.8% | 14.6% | 16.9% | 12.8% | 10.6% |
| ROA | N/A | 13.4% | 6.2% | 5.7% | 7.3% | 5.7% | 4.1% |
| Cash Flow | |||||||
| Op. Cash Flow | 309M | 251M | 214M | 330M | 355M | 261M | 272M |
| Free Cash Flow | 269M | 215M | 174M | 282M | 304M | 213M | 218M |
| Owner Earnings | 226M | 169M | 135M | 239M | 269M | 160M | 166M |
| CapEx | 40M | 36M | 40M | 48M | 52M | 47M | 54M |
| Maint. CapEx | 77M | 76M | 66M | 75M | 67M | 84M | 90M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 77M | 76M | 66M | 75M | 67M | 84M | 90M |
| CapEx/OCF | N/A | N/A | 18.8% | 14.6% | 14.6% | 18.1% | 19.7% |
| Capital Allocation | |||||||
| Dividends Paid | 0 | 0 | 6.1M | 13M | 17M | 22M | 23M |
| Dividend Yield | N/A | N/A | 0.2% | 0.3% | 0.2% | 0.3% | 0.5% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 6.4M | 6.3M | 13M | 16M | 20M | 17M | 16M |
| Debt Repayment | 190K | 0 | 585M | 763M | 237M | 217M | 217M |
| Balance Sheet | |||||||
| Net Debt | -49M | 68M | 1.2B | 1.0B | 914M | 1.2B | 1.0B |
| Cash & Equiv. | 49M | 41M | 72M | 102M | 249M | 186M | 1.0B |
| Long-Term Debt | 0 | 0 | 1.2B | 1.0B | 1.1B | 1.2B | 2.0B |
| Debt/Equity | N/A | 0.04 | 0.97 | 0.70 | 0.66 | 0.62 | 0.93 |
| Interest Coverage | 288.8 | 340.2 | 470.1 | 51.2 | 72.2 | 2060.8 | 25.5 |
| Equity | N/A | 2.5B | 1.4B | 1.6B | 1.8B | 2.2B | 2.2B |
| Total Assets | N/A | 3.5B | 3.8B | 3.8B | 4.0B | 4.8B | 5.6B |
| Total Liabilities | N/A | 960M | 2.4B | 2.2B | 2.2B | 2.6B | 3.4B |
| Intangibles | N/A | 521M | 517M | 500M | 488M | 673M | 656M |
| Retained Earnings | N/A | 0 | 159M | 351M | 597M | 801M | 842M |
| Working Capital | N/A | 367M | 387M | 378M | 516M | 597M | 1.4B |
| Current Assets | N/A | 964M | 989M | 998M | 1.1B | 1.3B | 2.2B |
| Current Liabilities | N/A | 597M | 602M | 620M | 632M | 665M | 730M |
| Per Share Data | |||||||
| EPS | 2.62 | 2,351,100.00 | 3.69 | 3.36 | 4.31 | 3.67 | 3.82 |
| Owner EPS | 3.76 | 1,685,710.00 | 2.22 | 3.72 | 4.05 | 2.33 | 2.73 |
| Book Value | N/A | 24,607,350.00 | 22.12 | 25.00 | 26.68 | 31.62 | 35.98 |
| Cash Flow/Share | 5.15 | 2,507,370.00 | 3.51 | 5.14 | 5.36 | 3.80 | 5.29 |
| Dividends/Share | 0.00 | 0.00 | 0.10 | 0.23 | 0.30 | 0.38 | 0.38 |
| Shares Out. | 60.1M | 0.0M | 61.0M | 64.3M | 66.3M | 68.5M | 60.9M |
| Valuation | |||||||
| P/E Ratio | N/A | N/A | 12.8 | 25.9 | 28.1 | 31.1 | 22.1 |
| P/FCF | N/A | N/A | 16.6 | 19.8 | 26.4 | 36.7 | 23.5 |
| EV/EBIT | N/A | N/A | 12.0 | 15.2 | 17.9 | 19.2 | 15.7 |
| Price/Book | N/A | N/A | 2.1 | 3.3 | 4.2 | 3.3 | 2.3 |
| Price/Sales | N/A | N/A | 1.0 | 1.4 | 2.3 | 2.6 | 1.8 |
| FCF Yield | N/A | N/A | 6.1% | 5.3% | 4.1% | 3.0% | 4.2% |
| Market Cap | 0 | N/A | 2.9B | 5.3B | 7.4B | 7.1B | 5.1B |
| Avg. Price | 0.00 | N/A | 43.21 | 65.06 | 103.65 | 118.78 | 84.44 |
| Year-End Price | 0.00 | N/A | 47.35 | 86.96 | 120.93 | 114.11 | 84.44 |
ESAB Corp passes 5 of 9 quality checks, suggesting mixed fundamentals.
ESAB Corp trades at 18.6x trailing earnings, compared to its 15-year median P/E of 27.0x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 16.3x vs a median of 23.1x. The company's 5-year average ROIC is 11.0% with a gross margin of 36.0%. Total shareholder yield (dividends) is 0.5%. At current prices, the estimated annualized return to fair value is +10.5%.
ESAB Corp (ESAB) has a net profit margin of 8.8%. This is a modest margin.
ESAB Corp (ESAB) generated $213 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ESAB Corp (ESAB) has a debt-to-equity ratio of 0.62. This indicates moderate leverage.
ESAB Corp (ESAB) reported earnings per share (EPS) of $3.67 in its most recent fiscal year.
ESAB Corp (ESAB) has a return on equity (ROE) of 12.8%. This indicates moderate shareholder returns.
ESAB Corp (ESAB) has a 5-year average gross margin of 36.0%. This indicates decent pricing power.
The Ledger Terminal provides 6 years of financial data for ESAB Corp (ESAB), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ESAB Corp (ESAB) has a book value per share of $31.62, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is accelerating ESAB's compounder journey through acquisitions including Eddyfi (expected to close mid-year 2026) and prior acquisitions of EWM, Bavaria, SUMIG, and Sager, which are expected to extend the company's workflow solutions and strengthen its portfolio of proprietary consumables and equipment. The company is targeting a shift in mix towards gas control and welding equipment to support a 2028 target of 22% plus EBITDA margins, with management expecting strong margin improvement in 2026 as volumes improve and EBX-driven cost and restructuring initiatives take hold. Management expects better price realization from Q1 to Q2 2026 and anticipates price-cost neutrality at least through Q2, with continued efforts to achieve price-cost positivity as the year progresses, while also benefiting from tariff and quota advantages expected in Europe mid-year. The company expects strong full-year cash generation and is focused on deleveraging, with net leverage expected to step up temporarily upon the Eddyfi acquisition close but anticipated to return below 3x by year-end 2026, positioning ESAB to pursue accelerated M&A activity and compound long-term shareholder value.
Based on recent SEC filings and earnings calls, ESAB Corp (ESAB) has provided the following forward guidance: Adjusted EBITDA: $575 million-$595 million (FY2026); Adjusted EPS: $5.70-$5.90 (FY2026).
No recent press releases.