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ESAB Corporation (MX:ESAB)
:ESAB
Mexico Market
EarningsQ2 2026 Earnings Report

ESAB Corporation (ESAB) Q2 2026 Earnings Report

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MX:ESAB Q2 2026 EPS Results

Actual EPS$23.70
Consensus EPS$23.84
Beat/MissMissed by -$0.14
One Year Ago EPS$23.87

MX:ESAB Q2 2026 Revenue Results

Actual Revenue$14.18B
Expected Revenue$13.26B
Beat/MissBeat by +$912.46M
YoY Revenue Growth+12.86%

Earnings Announcement Details

QuarterQ2 2026
Date08/06/2026
TimeBefore Open
Conference CallThursday, August 6, 2026
MX:ESAB Upcoming Earnings
ESAB Corporation's next earnings date is estimated for November 4, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:ESAB Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 06, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive outlook: ESAB reported record Q2 sales and adjusted EBITDA, returned to organic growth across segments, completed the strategic Eddyfi acquisition (with attractive margins and a sizable funnel), and raised full-year guidance. Near-term headwinds include transitory margin pressure from logistics and commodity inflation, Middle East disruptions, acquisition-related EPS dilution and integration costs. Management characterized many negatives as temporary, emphasized investments to drive future organic growth and margin expansion, and expects improving sequential pricing and strong 2027 leverage from Eddyfi and equipment mix changes.
Company Guidance
ESAB raised its full‑year 2026 outlook to total core sales of about $3.0–$3.1 billion (organic growth 2–4%, acquisitions contributing ~9 points, FX unchanged), adjusted EBITDA of $615–$625 million (includes seven months of Eddyfi and assumes roughly $15 million of transitory price/cost drag), and adjusted EPS of $5.40–$5.50, with expected free cash flow conversion around 90%. Management noted Q2 results that underpin the guide—Q2 sales $766 million (up 13% y/y, 2.5% core organic growth), adjusted EBITDA $150 million (up 8% to a 19.5% margin, down ~90 bps y/y)—and highlighted the Eddyfi acquisition (high‑single‑digit organic growth, ~65% gross margin, ~30% EBITDA margin) as modestly dilutive in 2026 but accretive in 2027. They also disclosed financing effects: core adjusted EPS excluding one month of Eddyfi was $1.41, the March $1.0 billion bond prefunding and related debt financing reduced EPS by $0.13 this quarter (with $0.03 from prefunding) and committed equity/mandatorily convertible preferred stock created a ~$0.03 headwind.
Record Quarterly Sales and Organic Growth
Total sales of $766 million in Q2, up 13% year-over-year, with core organic growth of 2.5% driven by double-digit growth in automation and equipment.
Record Adjusted EBITDA and Strong Margin Profile
Adjusted EBITDA of $150 million, up 8% year-over-year, with an adjusted EBITDA margin of 19.5% demonstrating improved operating performance despite transitory headwinds.
Successful Acquisition of Eddyfi and Strategic M&A Execution
Closed Eddyfi ahead of schedule; transaction strengthens end-to-end workflow offering. Eddyfi reported high single-digit growth, ~65% gross margins and ~30% EBITDA margins; combined funnel cited at ~$450 million.
Raised Full-Year 2026 Financial Outlook
Updated FY26 guidance: total core sales ~$3.0–$3.1 billion, organic growth 2%–4%, acquisitions contributing ~9 points of growth, adjusted EBITDA increased to $615–$625 million (includes 7 months of Eddyfi), and adjusted EPS guidance of $5.40–$5.50.
Shift to Higher‑Margin Equipment Mix
Transformation toward equipment: equipment mix moved from 38% to over 50% (2026 pro forma), supporting higher long-term growth and margins; gross margins improved ~500 basis points over the past decade.
Regional Strength — Americas and EMEA/APAC Performance
Americas: sales $316 million, up 12% YoY with 5% organic growth and double-digit organic growth in North America equipment and automation. EMEA & APAC: sales $450 million, up 14% YoY with 1% organic growth and stronger-than-expected performance in Europe.
Solid Cash Generation and Capital Allocation
First-half adjusted free cash flow in line with 1H25 despite higher interest expense; management continues to prioritize organic investment, debt reduction, and accretive tuck-ins; free cash flow conversion expected at ~90% for FY26.
Leadership and Organizational Enhancements
Key leadership additions and internal changes: new EVP (RJ) added from proven operators, CFO Brent Jones integrated (90 days), reinvigorated EBXai focus, and ongoing manufacturing footprint and Gemba optimizations to drive execution.

MX:ESAB Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 04, 2026
2026 (Q3)
23.68 / -
23.17―
2026 (Q2)
23.84 / 23.70
23.872-0.74% (-0.18)
2026 (Q1)
23.43 / 22.99
21.9414.80% (+1.05)
Mar 10, 2026
2025 (Q4)
23.63 / 23.70
22.4685.47% (+1.23)
2025 (Q3)
22.35 / 23.17
21.9415.60% (+1.23)
2025 (Q2)
23.82 / 23.87
23.173.03% (+0.70)
2025 (Q1)
21.03 / 21.94
21.0644.17% (+0.88)
2024 (Q4)
20.43 / 22.47
19.83513.27% (+2.63)
2024 (Q3)
19.69 / 21.94
18.95715.74% (+2.98)
2024 (Q2)
22.26 / 23.17
21.2399.09% (+1.93)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed