ESAB Corp
NYSE:ESAB
ESAB Corp
ESAB Corp., rooted in a rich history dating back to 1904, emerged as a formidable force in the welding and cutting industry. Originating in Gothenburg, Sweden, following the invention of the first coated welding electrode by its founder, Oscar Kjellberg, the company built its reputation on technological innovation and industrial reliability. From its humble beginnings, ESAB has evolved into a global powerhouse, expanding its reach across more than 80 countries. The company’s growth narrative is one characterized by a commitment to quality, fostering innovation, and strategic acquisitions that have bolstered its standing in the industry.
At its core, ESAB thrives by designing and manufacturing welding and cutting equipment and consumables that cater to a wide array of industries, including automotive, construction, and energy. The company generates revenue through the sale of equipment used for both manual and automated welding and cutting processes. In addition, it supplies consumables—which are crucial in the welding process, such as electrodes and filler materials—that ensure a recurrent revenue stream. By focusing on enhancing productivity and efficiency through their products and solutions, ESAB not only sustains its business model but also drives its reputation as a trusted partner in challenging industrial applications worldwide.
ESAB Corp., rooted in a rich history dating back to 1904, emerged as a formidable force in the welding and cutting industry. Originating in Gothenburg, Sweden, following the invention of the first coated welding electrode by its founder, Oscar Kjellberg, the company built its reputation on technological innovation and industrial reliability. From its humble beginnings, ESAB has evolved into a global powerhouse, expanding its reach across more than 80 countries. The company’s growth narrative is one characterized by a commitment to quality, fostering innovation, and strategic acquisitions that have bolstered its standing in the industry.
At its core, ESAB thrives by designing and manufacturing welding and cutting equipment and consumables that cater to a wide array of industries, including automotive, construction, and energy. The company generates revenue through the sale of equipment used for both manual and automated welding and cutting processes. In addition, it supplies consumables—which are crucial in the welding process, such as electrodes and filler materials—that ensure a recurrent revenue stream. By focusing on enhancing productivity and efficiency through their products and solutions, ESAB not only sustains its business model but also drives its reputation as a trusted partner in challenging industrial applications worldwide.
Raised Guidance: ESAB increased its full-year 2025 sales and profit guidance after a strong Q3, citing early completion of the EWM acquisition and solid execution.
Revenue Growth: Q3 sales rose 8% to $687 million, with organic sales up 2% year-over-year, marking a return to positive organic growth.
EWM Acquisition: ESAB closed the EWM deal ahead of schedule; EWM contributed to both sales and EBITDA and brings strong gross margins (over 45%).
Margin Dynamics: Americas EBITDA margin declined 100 bps to 19.6% due to tariff impacts and growth investments, but restructuring and supply chain moves are expected to drive margin expansion in 2026.
Regional Strength: EMEA and APAC showed 14% sales growth, volume up 4%, and margin improvement; high-growth markets and equipment led the gains.
Cash Flow & Balance Sheet: Free cash flow conversion exceeded 100%, and expanded credit facilities give flexibility for future M&A.
Automation & Mexico: Some automation shipments delayed last quarter did not fully recover in Q3 but are expected to flow into Q4/Q1; Mexico stabilized.
Outlook: Management expects core growth to improve in Q4 and is confident about strong momentum and further margin expansion in 2026.
