ESAB Corporation

ESAB reported second-quarter 2026 total sales of $766 million, up 13% year over year, with core organic growth of 2.5%. Adjusted EBITDA was $150 million, up 8% year over year, at a 19.5% adjusted EBITDA margin, down 90 basis points from last year. Core adjusted EPS, excluding one month of Eddyfi and related financing transactions, was $1.41; management said total debt financing impacted EPS by $0.13 in the quarter and the committed equity financing was a $0.03 headwind. By segment, Americas sales were $316 million, up 12% with 5% organic growth, and EMEA/APAC sales were $450 million, up 14% with 1% organic growth. For full-year 2026, ESAB raised guidance to total core sales of approximately $3 billion to $3.1 billion, organic growth of 2% to 4%, adjusted EBITDA of $615 million to $625 million, adjusted EPS of $5.40 to $5.50, and free cash flow conversion of approximately 90%. Management also said about $15 million of transitory price/cost neutrality is assumed in the updated outlook, and that the EBITDA increase reflects Eddyfi plus growth investments.

Shyam Kambeyanda framed the quarter as proof that ESAB’s transformation is working, emphasizing record core sales, a return to organic growth in both segments, and the strategic importance of Eddyfi. He repeatedly tied the company’s direction to higher growth, higher margins and stronger cash flow, saying the portfolio shift toward equipment has moved equipment mix above 50% of revenue on a 2026 pro forma basis. His tone was upbeat and confident, with a strong focus on workflow integration, commercial synergy, and the company’s ability to win in connected and digital applications.

Brent Jones highlighted the quarter’s $766 million of sales, $150 million of adjusted EBITDA, and 19.5% adjusted EBITDA margin, while noting the 90 bps margin decline from price/cost neutrality and deliberate equipment investment. He said core adjusted EPS was $1.41 excluding one month of Eddyfi and related financing items, and explained that the debt financing and equity issuance created quarter-specific EPS headwinds. On cash, he said first-half adjusted free cash flow was in line with the first half of 2025 despite higher interest expense, restructuring and integration costs, and higher equipment inventory, and he expects strong second-half cash generation. He also said the company remains focused on organic growth, debt reduction and accretive tuck-in acquisitions.

Analysts focused on organic growth cadence, Middle East disruption, Eddyfi economics, and whether equipment and automation strength can hold through the back half. Management said growth trends improved from Q1 to Q2 and continued into Q3, with confidence in Q3/Q4 supported by equipment initiatives and standard automation orders shipping in the second half. On the Middle East, Shyam said the region is about 7% to 8% of ESAB’s business, was down double digits, and saw logistics costs triple due to the conflict; he added that rebuild activity could eventually be a tailwind and that the region had grown high double digits before the conflict. On Eddyfi, management said the business has about $450 million of funnel opportunity, expects some natural SG&A leverage over time, and sees the acquisition as a platform for customer workflows across nuclear, oil and gas, pipelines, wind and defense.