ESAB (NYSE:ESAB) Releases Q4 2025 Earnings Guidance

ESAB (NYSE:ESAB) issued an update on its fourth quarter 2025 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of 1.340-1.360 for the period, compared to the consensus estimate of 1.350. The company issued revenue guidance of $720.0 million-$722.0 million, compared to the consensus revenue estimate of $706.0 million. ESAB also updated its FY 2025 guidance to 5.250-5.270 EPS.

Analyst Upgrades and Downgrades

ESAB has been the topic of several research reports. UBS Group boosted their price target on shares of ESAB from $147.00 to $149.00 and gave the company a “buy” rating in a research report on Monday, October 20th. Stifel Nicolaus increased their target price on ESAB from $143.00 to $144.00 and gave the stock a “buy” rating in a research report on Friday, January 23rd. Oppenheimer raised their price target on ESAB from $142.00 to $148.00 and gave the stock an “outperform” rating in a report on Friday, January 23rd. JPMorgan Chase & Co. decreased their price objective on ESAB from $140.00 to $138.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 14th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of ESAB in a report on Monday, December 29th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $142.13.

ESAB Stock Down 5.2%

ESAB opened at $114.85 on Tuesday. The firm has a market capitalization of $6.97 billion, a P/E ratio of 28.93, a price-to-earnings-growth ratio of 2.11 and a beta of 1.24. ESAB has a one year low of $100.17 and a one year high of $135.84. The company has a fifty day moving average price of $115.43 and a 200-day moving average price of $116.12. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.99 and a quick ratio of 1.24.

ESAB Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, January 16th. Investors of record on Wednesday, December 31st were given a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 0.3%. The ex-dividend date was Wednesday, December 31st. ESAB’s payout ratio is presently 10.08%.

Key ESAB News

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

Institutional Inflows and Outflows

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

About ESAB

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.