ESAB Corp (NYSE:ESAB)

Q2 2026 ESAB Corp Earnings Call Transcript

Aug 6, 2026 / 12:00 PM GMT

Release Date Price: $94.51 (+2.21%)

Transcript 10-Q8-K

Key Points

Positve

ESAB Corp (ESAB) delivered a record second quarter with total core sales of $766 million, up 13% year-over-year, and returned to organic growth in both segments.
The company closed the acquisition of Edify ahead of schedule, which is expected to drive faster organic growth, higher margins, and reduced cyclicality.
Adjusted EBITDA reached a record $150 million, up 8% year-over-year, despite transitory price cost headwinds.
The Americas segment posted strong results with 5% organic growth, driven by double-digit growth in equipment, gas equipment, and automation.
Management raised the full-year 2026 outlook, expecting total core sales of approximately $3 to $3.1 billion and adjusted EBITDA of $615 to $625 million, including seven months of Edify.
The company has a strong pipeline of commercial opportunities, with Edify's funnel close to $450 million, and is seeing early success in cross-selling combined workflow solutions.

Negative

Adjusted EBITDA margin declined 90 basis points year-over-year due to transitory price cost neutrality from increased logistics and commodity costs.
The Middle East region experienced double-digit sales declines (approximately 10-11%) due to geopolitical conflicts, with logistics costs tripling in the region.
The company faces a $15 million drag from transitory price cost neutrality in 2026, which is expected to pressure margins in the near term.
Adjusted EPS guidance was reduced by $0.35 at the midpoint, primarily due to Edify dilution and investments in growth initiatives.
First-half adjusted free cash flow was flat year-over-year, impacted by restructuring costs, acquisition integration activities, and a strategic decision to carry higher equipment inventory levels.
The EMEA and APAC segment saw only 1% organic growth, with margins pressured by Middle East disruptions and continued equipment growth investments.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ESAB.N - ESAB Corp
Q2 2026 ESAB Corp Earnings Call
Aug 06, 2026 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Hello everyone.

Thank you for joining us and welcome to the ESAB Corporation Second Quarter 2026 Earnings Release and Conference Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Mark Barbellotto, Vice President of Investor Relations. Mark, please go ahead.

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Unidentified_2 [2]
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Thanks, operator. Welcome to ESAB's second quarter 2026 earnings call. This morning, I'm joined by our

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