ESAB · ESAB Corporation

ESAB delivered record Q1 2026 revenue of $746 million, a 10% increase year-over-year, driven primarily by acquisitions (EWM and Aktiv) and favorable currency translation, as core organic sales declined 1% — signaling modest underlying demand pressure despite strong execution in the Americas and stable performance in Europe and Asia. Core adjusted EBITDA rose 6% to $136 million, but margin contracted 80 basis points to 19.0%, explicitly attributed to dilution from the EWM acquisition and incremental costs tied to the Iran conflict, including supply chain disruptions and input cost inflation. Management responded with pricing actions and operational initiatives expected to fully offset those headwinds. Net income from continuing operations was $50 million ($0.82 diluted EPS), down from $73 million ($1.14) in Q1 2025, reflecting higher restructuring charges ($10.2M vs. $4.5M), acquisition-related amortization ($27.6M vs. $9.6M), and elevated interest expense ($25.6M vs. $16.8M). However, core adjusted net income grew 5% to $80 million ($1.31 EPS), underscoring resilience in underlying profitability. Critically, ESAB reaffirmed its full-year 2026 guidance, projecting core organic growth of 2.0–4.0%, core adjusted EBITDA of $575–595 million, and core adjusted EPS of $5.70–5.90 — confirming confidence in execution despite geopolitical and macroeconomic uncertainty. The Eddyfi acquisition remains on track for mid-year closing, and EWM integration is accelerating, with portfolio reception exceeding expectations — positioning ESAB to extend its industrial compounder strategy through workflow solutions and adjacencies.