ESAB (NYSE:ESAB) Updates FY 2025 Earnings Guidance

ESAB (NYSE:ESAB) issued an update on its FY 2025 earnings guidance on Monday morning. The company provided EPS guidance of 5.250-5.270 for the period, compared to the consensus EPS estimate of 5.280. The company issued revenue guidance of $2.8 billion-$2.8 billion, compared to the consensus revenue estimate of $2.7 billion. ESAB also updated its FY 2026 guidance to 5.700-5.900 EPS.

Wall Street Analyst Weigh In

Several brokerages have recently commented on ESAB. Wall Street Zen cut ESAB from a “buy” rating to a “hold” rating in a report on Sunday, December 28th. Oppenheimer upped their price target on shares of ESAB from $142.00 to $148.00 and gave the stock an “outperform” rating in a research report on Friday, January 23rd. Weiss Ratings reissued a “hold (c+)” rating on shares of ESAB in a report on Monday, December 29th. JPMorgan Chase & Co. dropped their target price on shares of ESAB from $140.00 to $138.00 and set an “overweight” rating for the company in a research note on Wednesday, January 14th. Finally, Stifel Nicolaus upped their target price on shares of ESAB from $143.00 to $144.00 and gave the stock a “buy” rating in a research report on Friday, January 23rd. Six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $142.13.

ESAB Stock Down 5.2%

Shares of NYSE ESAB opened at $114.85 on Tuesday. ESAB has a 1 year low of $100.17 and a 1 year high of $135.84. The firm’s 50-day moving average is $115.43 and its 200-day moving average is $116.12. The company has a current ratio of 1.99, a quick ratio of 1.24 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $6.97 billion, a PE ratio of 28.93, a price-to-earnings-growth ratio of 2.11 and a beta of 1.24.

ESAB Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Wednesday, December 31st were paid a $0.10 dividend. The ex-dividend date of this dividend was Wednesday, December 31st. This represents a $0.40 dividend on an annualized basis and a yield of 0.3%. ESAB’s dividend payout ratio (DPR) is presently 10.08%.

Key Headlines Impacting ESAB

Here are the key news stories impacting ESAB this week:

• Positive Sentiment: Acquisition expands addressable market — ESAB agreed to acquire Eddyfi Technologies, a Quebec?based maker of advanced nondestructive testing (NDT) and inspection instruments, strengthening ESAB’s workflow solutions beyond welding and consumables and adding higher?margin instrumentation and services potential. ESAB to buy Canadian testing equipment maker Eddyfi for $1.45 billion
• Positive Sentiment: Management frames deal as strategic fit — ESAB and Eddyfi say the combination will create a broader “complete workflow” solutions provider, which could drive cross?sell opportunities across inspection, equipment and consumables over time. ESAB Corporation to Acquire Eddyfi Technologies
• Neutral Sentiment: Deal details and integration timeline still pending — Definitive agreement signed; investors will watch integration plans, disclosed synergies and any financing structure in upcoming filings and calls. Eddyfi Announces Signing of Definitive Agreement
• Neutral Sentiment: M&A call transcript available — Management held an M&A call; the transcript may provide more on rationale, expected synergies and timing. ESAB M&A Call Transcript
• Negative Sentiment: Market reacted negatively to the purchase price and deal size — Coverage shows shares fell after the $1.45B headline; investors likely worried about the premium paid, near?term dilution or execution risk. ESAB stock falls after announcing $1.45 billion acquisition
• Negative Sentiment: EPS guidance slightly below consensus — ESAB updated FY2026 EPS guidance to $5.70–$5.90 (vs. consensus ~5.92) and FY2025 guidance modestly under prior consensus; that near?term miss likely intensified selling pressure.
• Negative Sentiment: Financing and leverage are watchpoints — The $1.45B deal represents a material amount relative to ESAB’s market cap (~$7B); investors will focus on how the transaction is funded and any impact on leverage and buyback/dividend capacity. PEHub coverage of the deal

Hedge Funds Weigh In On ESAB

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. raised its holdings in shares of ESAB by 109.4% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 333 shares of the company’s stock worth $40,000 after acquiring an additional 174 shares during the period. Danske Bank A S bought a new position in ESAB during the 3rd quarter worth about $78,000. EverSource Wealth Advisors LLC raised its stake in shares of ESAB by 183.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 972 shares of the company’s stock valued at $117,000 after purchasing an additional 629 shares during the period. Brown Brothers Harriman & Co. bought a new stake in shares of ESAB in the third quarter valued at about $125,000. Finally, Caxton Associates LLP bought a new stake in shares of ESAB in the third quarter valued at about $244,000. Institutional investors own 91.13% of the company’s stock.

ESAB Company Profile

ESAB Corporation is a global leader in welding, cutting and gas control technologies, offering a comprehensive portfolio of equipment, consumables and automation solutions. The company’s products include welding power sources, cutting machines, torches, electrodes, filler metals and gas regulating equipment designed to meet the needs of diverse industries. ESAB serves sectors such as construction, shipbuilding, automotive, energy, infrastructure and manufacturing, providing both standard and customized solutions to enhance productivity and quality in metal fabrication and processing.

Founded in 1904 by Swedish inventor Oscar Kjellberg, ESAB pioneered the development of coated welding electrodes, laying the groundwork for modern welding practices.