ESAB's Ambitious Acquisition and Strong Outlook Fuel Investor Confidence

ESAB's FY2025 profit exceeded expectations with $2.84B revenue. The company announces a major $1.45B acquisition and provides an optimistic outlook for 2026.

ESAB has concluded its 2025 fiscal year by delivering a profit that modestly surpassed market forecasts. As the company's revenue growth remained steady in the final quarter, investor attention is now firmly fixed on its aggressive expansion strategy for the current year, headlined by a major planned acquisition.

A Solid Finish to the Fiscal Year

For the three months ending December 2025, ESAB reported revenue of $721 million, marking a 7.5% year-over-year increase. The company's adjusted earnings per share came in at $1.35, slightly ahead of the consensus estimate of $1.34. Net income for the quarter totaled $37.7 million.

A key highlight was the performance of adjusted core EBITDA, which rose by nine percent to reach $140 million. This growth pushed the corresponding margin to 20.4%. For the full 2025 fiscal year, ESAB generated total revenue of $2.84 billion, resulting in a net profit of $226.8 million.

Strategic Positioning and a Billion-Dollar Move

The company's global footprint provides significant stability, with approximately 80% of its revenue generated outside the United States. More than half of its sales originate from high-growth international regions. Management aims to bolster this international presence further through the proposed $1.45 billion acquisition of Eddyfi Technologies.

Looking ahead to fiscal 2026, ESAB's leadership has issued an optimistic forecast. The company is targeting adjusted core earnings per share in the range of $5.70 to $5.90. Organic business growth is projected to be between two and four percent, with a core EBITDA goal of $575 million to $595 million.

To fund its growth initiatives and ongoing operations, ESAB's balance sheet shows debt of approximately $1.2 billion, alongside $700 million in Senior Notes.

Market Reaction and Shareholder Returns

Following the earnings release, ESAB shares traded in a consolidated range between $128.60 and $129.45. This price level implies a market capitalization of roughly $7.9 billion. In addition to its growth objectives, the company maintains a consistent dividend policy, distributing a quarterly payment of $0.10 per share to investors.