ESAB Narrows 2026 Core Sales Outlook After Record Quarter

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter sales reached a record $825 million as core adjusted EBITDA of $156 million rose 17.0% and the company cut full-year organic growth to 1.6%–2.0%.

ESAB Corporation (ESAB), a focused industrial compounder, reported record third-quarter sales of $825 million, up 13.3% from a year earlier, and said core organic sales rose 2.3% before acquisitions and currency. The sequential sales increase from the second quarter’s $808 million was modest, but the year-over-year rate was slightly higher than the 12.9% reported in the prior quarter.

The more consequential turn was in profit. Core adjusted EBITDA of $156 million rose 17.0% and the core adjusted EBITDA margin expanded 40 basis points to 19.8%, reversing the second-quarter pattern in which core adjusted EBITDA rose 8.0% and the margin contracted 90 basis points to 19.5%. President and CEO Shyam P. Kambeyanda said the company delivered record core sales and adjusted EBITDA with organic growth in both segments despite a dynamic global environment and continued inflationary pressure, and that sales, margins and cash generation improved sequentially. He attributed the results to disciplined execution, investment in growth and the EBXai operating system.

GAAP net income from continuing operations attributable to ESAB was $41 million, or $0.61 a share on a diluted basis. Core adjusted net income was $83 million, or $1.30 a share. Acquisition-amortization and other related charges were $39.9 million, including $8.8 million of transaction, diligence and integration expenses and $31.2 million of amortization and inventory step-up, versus $16.5 million a year earlier. Restructuring and other related charges were $11.3 million.

Americas net sales were $337.3 million and EMEA & APAC net sales were $487.2 million. Core organic sales rose 0.8% in the Americas and 3.4% in EMEA & APAC. The company said it is beginning to convert the acquisitions of EWM and Eddyfi into new growth from cross-selling at ESAB and Eddyfi.

ESAB updated its full-year 2026 outlook. Total core sales growth is now projected at 13.1% to 13.3%, compared with the previous range of 11.0% to 14.0%. Within that growth, core organic sales growth is now expected at 1.6% to 2.0%, down from 2.0% to 4.0%. The contribution from M&A has increased to approximately 9.5% from 9.0%, and the anticipated FX impact has increased to approximately 2.0% from 0.0% to 1.0%.

As a result, the company adjusted its core adjusted EBITDA forecast to $603 million to $607 million, down from $615 million to $625 million, and core adjusted EPS to $5.28 to $5.33, from $5.40 to $5.50. The second-quarter update had lifted the core sales-growth range to 11.0% to 14.0% from 6.0% to 9.0% and raised the EBITDA forecast to $615 million to $625 million from $575 million to $595 million.

Kambeyanda said the company is setting the standard for complete workflow solutions and, with new products and the EWM and Eddyfi acquisitions, now serves customers across the entire life of their most critical assets, from the first cut and weld through inspection, monitoring and repair.