ESAB (ESAB) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 sales of $808 million, up 12.9% year-over-year, with core organic growth of 2.5% and strong demand in North America and Asia.

• Adjusted EBITDA rose 8% to $151.4 million, with a margin of 19.5%, despite a 90-basis-point margin decline due to transitory price/cost neutrality and targeted investments.

• Closed the $1.5B Eddyfi acquisition ahead of schedule, integrating a high-margin, high-growth asset and expanding advanced inspection and monitoring capabilities.

• Strategic focus on organic growth, margin expansion, deleveraging, and cash flow generation, supported by leadership changes and operational discipline.

Financial highlights

• Q2 total/core sales reached $808 million, up 12.9% year-over-year; core organic growth was 2.5%.

• Adjusted EBITDA for Q2 2026 was $151.4 million, with a 19.5% margin; core adjusted EPS was $1.41, excluding one month of Eddyfi.

• Net income from continuing operations was $36.4 million, down from $69.8 million year-over-year, due to higher costs and acquisition-related charges.

• Free cash flow conversion expected at approximately 90% for the year.

Outlook and guidance

• Full-year 2026 core sales expected at $3.0–$3.1 billion, with 2–4% organic growth and ~9% growth from acquisitions.

• Adjusted EBITDA guidance raised to $615–$625 million, including Eddyfi.

• Adjusted EPS range set at $5.40–$5.50, reflecting acquisition impacts and investments.

• Pricing expected to improve modestly in the second half, with organic volumes flat to slightly better sequentially.