Welding gear maker ESAB's Q3 sales beat on Equipment and Automation portfolio strength

Overview

• ESAB Q3 2025 sales rise 8%, beating analyst expectations

• Core adjusted EBITDA for Q3 rises 7%, margin decreases slightly

• Company completes EWM acquisition, enhancing equipment and automation portfolio

Outlook

• ESAB raises 2025 core sales growth outlook to 4.5%-5.5% from 1.5%-3.5%

• Company increases 2025 core adjusted EBITDA guidance to $535-$540 mln

• ESAB narrows 2025 core adjusted EPS guidance to $5.20-$5.30

Result Drivers

• EQUIPMENT AND AUTOMATION - Mid-single-digit growth in Equipment and Automation segment contributed to overall sales increase

• EWM ACQUISITION - Completion of EWM acquisition enhanced equipment and automation portfolio, providing access to React technology

• REGIONAL GROWTH - U.S. business returned to mid-single-digit growth as tariff uncertainties abated, strong demand in EMEA and APAC

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "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 $140.50, about 13.8% above its October 28 closing price of $121.14

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBw2zhQGwa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)