ESAB beats Q2 sales estimates, adjusted EPS meets expectations

Overview

• ESAB Q2 sales rise 1% to $716 mln, beating analysts' expectations, per LSEG data

• Adjusted EPS for Q2 meets analyst estimates, per LSEG data

• Co achieved record core adjusted EBITDA margin of 20.1%

Outlook

• ESAB raises 2025 core sales growth outlook to 1.5%-3.5% from (1.0)% to 1.5%

• ESAB now expects 2025 core organic sales growth of 0.0% to 2.0%

• ESAB raises 2025 core adjusted EBITDA outlook to $525 mln-$535 mln

• ESAB increases core adjusted EPS guidance to $5.15 to $5.30

Result Drivers

• ROBUST DEMAND - Strong demand in EMEA and APAC regions supported sales growth, per CEO Shyam P. Kambeyanda

• TARIFF NAVIGATION - Americas team managed tariff-related pressures using EBX

• STRATEGIC ACQUISITIONS - Acquisitions of DeltaP, Aktiv, and EWM expected to enhance portfolio and drive future growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for ESAB Corp is $142.50, about 7.3% above its August 5 closing price of $132.03

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBw8wvRLma