Revenue growth has rebounded to 9.9% in 2026Q1, yet operating margins remain pressured at 13.5% compared to the 16.6% peak observed in 2024Q4.
| Sales/Revenue | 2.91B | 2.84B | 2.74B | 2.77B | 2.59B | 2.43B | 1.95B | 2.25B |
| Revenue Growth % | 6.63% | 3.71% | -1.22% | 6.99% | 6.81% | 24.51% | -13.22% | - |
| Cost of Goods Sold | 1.88B | 1.83B | 1.7B | 1.76B | 1.71B | 1.59B | 1.27B | 1.45B |
| COGS % of Revenue | - | 64.46% | 62.15% | 63.39% | 65.86% | 65.49% | 65% | 64.56% |
| Gross Profit | 1.03B | 1.01B | 1.04B | 1.02B | 885.53M | 837.98M | 682.47M | 796.44M |
| Gross Margin % | 35.4% | 35.54% | 37.85% | 36.61% | 34.14% | 34.51% | 35% | 35.44% |
| Gross Profit Growth % | - | -2.62% | 2.14% | 14.71% | 5.67% | 22.79% | -14.31% | - |
| Operating Expenses | 547.56M | 518.44M | 590M | 611.59M | 556.47M | 531.77M | 480.34M | 540.36M |
| OpEx % of Revenue | - | 18.24% | 21.53% | 22.04% | 21.46% | 21.9% | 24.63% | 24.05% |
| Selling, General & Admin | 652.13M | 608.42M | 497.44M | 497.59M | 443.63M | 425.95M | 381.32M | 444.48M |
| SG&A % of Revenue | - | 21.4% | 18.15% | 17.93% | 17.11% | 17.54% | 19.55% | 19.78% |
| Research & Development | 22.6M | 44M | 39.2M | 38.8M | 36M | 39.7M | 34.8M | 32.2M |
| R&D % of Revenue | - | 1.55% | 1.43% | 1.4% | 1.39% | 1.64% | 1.78% | 1.43% |
| Other Operating Expenses | 0 | -133.97M | 53.36M | 75.2M | 76.84M | 66.11M | 64.22M | 63.68M |
| Operating Income | 482.6M | 491.8M | 447.45M | 404.17M | 329.06M | 306.21M | 202.13M | 256.08M |
| Operating Margin % | 16.58% | 17.3% | 16.33% | 14.57% | 12.69% | 12.61% | 10.37% | 11.4% |
| Operating Income Growth % | - | 9.91% | 10.71% | 22.82% | 7.46% | 51.5% | -21.07% | - |
| EBITDA | 585.02M | 575.8M | 514.05M | 473.87M | 394.17M | 380.81M | 276.83M | 332.68M |
| EBITDA Margin % | 20.1% | 20.26% | 18.76% | 17.08% | 15.2% | 15.68% | 14.2% | 14.81% |
| EBITDA Growth % | 13.74% | 12.01% | 8.48% | 20.22% | 3.51% | 37.56% | -16.79% | - |
| D&A (Non-Cash Add-back) | 102.43M | 84M | 66.6M | 69.7M | 65.1M | 74.6M | 74.7M | 76.6M |
| EBIT | 399.75M | 407.56M | 464.81M | 439.67M | 370.3M | 330.23M | 224.55M | 278.16M |
| Net Interest Income | -88.1M | -79.3M | -64.89M | -85.07M | -37.95M | 1.67M | 3.71M | -997K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 1.67M | 3.71M | 997K |
| Interest Expense | 88.1M | 79.3M | 64.89M | 85.07M | 37.95M | 0 | 0 | 0 |
| Other Income/Expense | -182.5M | -163.54M | -77.05M | -85.07M | -28.81M | 12.87M | 3.71M | -34.61M |
| Pretax Income | 300.1M | 328.26M | 370.4M | 319.09M | 300.25M | 319.09M | 205.84M | 221.47M |
| Pretax Margin % | 10.31% | 11.55% | 13.51% | 11.5% | 11.58% | 13.14% | 10.56% | 9.86% |
| Income Tax | 61.77M | 69.16M | 77.35M | 95.73M | 69.17M | 80.41M | 45.97M | 44.74M |
| Effective Tax Rate % | 20.58% | 21.07% | 20.88% | 30% | 23.04% | 25.2% | 22.33% | 20.2% |
| Net Income | 207.05M | 226.77M | 264.84M | 205.28M | 223.75M | 235.11M | 157.41M | 172.91M |
| Net Margin % | 7.12% | 7.98% | 9.66% | 7.4% | 8.63% | 9.68% | 8.07% | 7.7% |
| Net Income Growth % | -23.95% | -14.38% | 29.01% | -8.25% | -4.83% | 49.36% | -8.96% | - |
| Net Income (Continuing) | 238.33M | 259.1M | 293.06M | 223.37M | 231.08M | 238.68M | 159.87M | 176.73M |
| Discontinued Operations | -4M | -25.87M | -22.31M | -12.34M | -3.07M | 0 | 0 | 0 |
| Minority Interest | 44.88M | 45.49M | 39.24M | 40.26M | 38.25M | 40.99M | 42.14M | 46.06M |
| EPS (Diluted) | 3.40 | 3.72 | 4.31 | 3.36 | 3.72 | 3.92 | 2.62 | 2.88 |
| EPS Growth % | -25.56% | -13.69% | 28.27% | -9.68% | -5.1% | 49.62% | -9.03% | - |
| EPS (Basic) | - | 3.72 | 4.36 | 3.38 | 3.73 | 3.92 | 2.62 | 2.88 |
| Diluted Shares Outstanding | 60.94M | 60.94M | 61.1M | 60.66M | 60.15M | 60.03M | 60.03M | 60M |
| Basic Shares Outstanding | 60.94M | 60.94M | 60.43M | 60.23M | 60.05M | 60.03M | 60.03M | 60M |
| Dividend Payout Ratio | - | 9.66% | 6.42% | 6.5% | 2.71% | - | - | - |
Global industrial demand volatility
According to the latest quarterly financial data, ESAB's revenue growth has accelerated to 9.9% in 2026Q1, marking a significant departure from the stagnant or slightly negative growth rates observed throughout the 2024 fiscal year, which suggests a potential recovery in global industrial demand.
The recent uptick in top-line performance appears to indicate that the company's strategic focus on high-growth niches is beginning to offset broader cyclical headwinds. Investors should monitor whether this growth trajectory is sustainable or if it reflects temporary channel stocking patterns that may normalize in subsequent periods.
As reported in the company's income statements, ESAB maintained a gross margin of 36.9% in 2026Q1, demonstrating a consistent ability to preserve pricing power despite the significant margin compression to 30.5% observed during the 2025Q4 period due to elevated cost of goods sold.
The recovery in gross margins suggests that the company's value-added pricing strategy remains effective in passing through commodity cost fluctuations. However, the sharp variance in 2025Q4 warrants further investigation into whether this was a structural cost issue or a transient impact from supply chain disruptions.
Based on the provided income statement figures, ESAB's operating margin of 13.5% in 2026Q1 reflects a contraction from the 16.6% peak seen in 2024Q4, indicating that operating expenses are currently scaling at a rate that outpaces the recent recovery in gross profit generation.
The inability to translate revenue growth into expanded operating margins suggests that the company may be facing increased overhead or integration costs associated with its recent strategic initiatives. Analysts should evaluate whether this represents a permanent shift in the cost structure or a temporary investment phase intended to drive future productivity.
As evidenced by the reported financial data, EPS has experienced significant fluctuations, dropping from $1.36 in 2024Q2 to $0.78 in 2026Q1, a trend that appears heavily influenced by non-operating items and periodic adjustments to stock-based compensation expenses across the observed ten-quarter period.
The inconsistency in bottom-line results suggests that GAAP net income may not be the most reliable indicator of the company's underlying operational health. Investors should focus on adjusted metrics to better understand the core earnings power, as the current volatility may obscure the true impact of the ESAB Business System on long-term profitability.
Quick answers to the most common questions about buying ESAB stock.
For fiscal year 2025, ESAB Corporation (ESAB) reported total revenue of $2.84B. This represents a 26.5% increase compared to $2.25B in 2019.
ESAB Corporation (ESAB) is profitable, generating $226.8M in net income for the fiscal year ending 2025 with a net profit margin of 8.0%.
ESAB Corporation (ESAB) reported an operating income of $491.8M, resulting in an operating profit margin of 17.3%. This margin reflects the operational efficiency of the business before interest and taxes.
ESAB Corporation (ESAB) generated $1.01B in gross profit for the year, representing a gross profit margin of 35.5%. This demonstrates the company's core pricing power and production efficiency.