At a glance
ESAB Corp is worth $4.41B, about 19 times its fiscal 2025 earnings. Revenue grew 3.7% to $2.84B in fiscal 2025, with 8.0% kept as profit; over 5 years it has grown 7.8% a year. It pays a 0.62% dividend yield, raised every year for at least 3 years, and returned $58.3M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −41.2% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
ESAB, founded in 1904 and based in North Bethesda, Maryland, makes products used to cut, weld and join metal. It sells welding and cutting equipment, consumables (supplies that get used up on the job and must be reordered), welding robotics, software, and gas control equipment, including products for medical and specialty gases. About 10,300 employees serve customers in roughly 150 countries. ESAB sells through independent distributors and its own sales staff.
Revenue was about $2.84 billion in fiscal 2025, up 3.7% from the year before. ESAB reports two regional segments. EMEA & APAC, which covers Europe, the Middle East, India, Africa and Asia Pacific, brought in about 60% of sales. The Americas brought in about 40%. Roughly 80% of sales came from outside the United States. About 52% came from markets ESAB calls high growth, such as South America, Eastern Europe, India and the Middle East.
Buying other companies is central to ESAB's growth plan. It completed four acquisitions in fiscal 2025, and in its annual report filed February 20, 2026, it said it expects more. It runs its businesses with an in-house improvement system called EBXai. ESAB names Lincoln Electric and the welding business of Illinois Tool Works among the companies that serve its markets.
Price history
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ESAB -41.2% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Equipment | $1.87B | 65.8% |
| Consumables | $972.0M | 34.2% |
By business segment
| EMEA and APAC Segment | $1.71B | 60.2% |
| Americas Segment | $1.13B | 39.8% |
Latest results
- In Q2 FY2026 (ended Jul 3, 2026), revenue was $807.6M, up 12.9% from a year earlier, and net income was $32.4M (-51.6%).
- For fiscal 2025, revenue was $2.84B (+3.7% year over year; +7.8% a year from FY2020 to FY2025) with a 8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +7.8% good |
|---|---|
| Operating margin | 14.5% watch |
| Free cash flow margin | 7.5% watch |
| Return on equity (FY2025) | 10.5% watch |
| Return on assets (FY2025) | 4.8% watch |
| Net cash (cash minus debt) | $-2.17B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.95B | $157.4M | $269.0M |
| FY2021 | $2.43B | $235.1M | $215.2M |
| FY2022 | $2.59B | $223.7M | $174.1M |
| FY2023 | $2.77B | $205.3M | $282.3M |
| FY2024 | $2.74B | $264.8M | $303.6M |
| FY2025 | $2.84B | $226.8M | $213.3M |
Valuation snapshot
| Market value | $4.41B |
|---|---|
| P/E ratio | 19.3 |
| Dividend yield | 0.62% |
Rank among 1514 US companies
Market value at each year end
ESAB’s market value went from $2.82B at the end of 2022 to $4.41B on Oct 28, 2026, up 56%; since the end of 2025 it is down 35%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $4.41B | -35.0% |
| 2025 | $6.78B | -6.4% |
| 2024 | $7.25B | +38.9% |
| 2023 | $5.22B | +85.2% |
| 2022 | $2.82B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ESAB price data to Oct 28, 2026 | -36.3% | -41.2% | +4.3% | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -36.3% |
| 2025 | -6.5% |
| 2024 | +38.9% |
| 2023 | +85.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 1 sales ($95K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 7, 2026 | Rhonda L Jordan Director | sell | $95K |
Who owns it
Large shareholders (13G filings)
| T. Rowe Price Associates, Inc. | 13.3% | Jun 30, 2026 |
| T. Rowe Price Investment Management, Inc. | 6.2% | Sep 30, 2026 |
| Vanguard Capital Management | 4.95% | Sep 30, 2026 |
ETFs with the most weight in ESAB
| CSD Invesco S&P Spin-Off ETF | 4.59% |
| BOTT Themes Robotics & Automation ETF | 3.71% |
| RFG Invesco S&P MidCap 400® Pure Growth ETF | 0.89% |
| FPX First Trust US Equity Opportunities ETF | 0.86% |
| XMMO Invesco S&P MidCap Momentum ETF | 0.7% |
| TMSL T. Rowe Price Small-Mid Cap ETF | 0.66% |
| MDYG SPDR S&P 400 Mid Cap Growth ETF | 0.5% |
| JHSC John Hancock Multifactor Small Cap ETF | 0.49% |
What could go wrong
- Welding demand follows the factory cycle. Welding and cutting is a mature industry in North America and Western Europe. Demand depends on how much manufacturers spend on equipment, and the industry has shrunk in the past when industrial activity slowed.
- Growth depends on buying other companies. Acquisitions are central to ESAB's strategy. It may fail to find, pay for or blend in new deals. A write-down of goodwill, the premium paid for past deals, would hit earnings.
- Most sales come from outside the US. About 80% of fiscal 2025 sales came from outside the United States, and ESAB has main factories in 16 other countries. Tariffs, political instability and exchange-rate swings can all hurt results.
- A large debt load. As of July 3, 2026, total debt was about $2.39 billion, against $217 million in cash and investments. ESAB warns that its debt could limit its ability to meet its obligations and pay dividends.
- Asbestos claims at some subsidiaries. Some ESAB subsidiaries face asbestos-related claims. If the number of future claims, the average settlement cost or the available insurance differs from the company's estimates, the costs could seriously hurt results.
- Exposure to war and sanctions rules. ESAB says Russia's invasion of Ukraine affects its operations, and it has done business in countries under US sanctions. Breaking sanctions or export rules could bring large fines.
Recent events
- Quarterly results released
- Executive or board change
- Acquisition or sale of assets completed; Unregistered sale of shares; Change to shareholder rights; Bylaws or fiscal year changed; Investor presentation or announcement; Other company announcement
- Shareholder vote results
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
- Investor presentation or announcement
- Quarterly results released
- Major agreement signed; Quarterly results released; Unregistered sale of shares; Investor presentation or announcement
For income and retirement investors
ESAB pays a small but growing dividend. Dividends per share rose each year, from $0.15 in fiscal 2022 to $0.38 in fiscal 2025, or about 36% a year. The dividend used only about 10% of fiscal 2025 earnings and 10% of free cash flow (the cash left after running and investing in the business). The yield was 0.62% as of October 28, 2026, so the shares pay little income. ESAB bought back no shares from fiscal 2021 through 2025, and its share count rose about 3.6% between April 2022 and July 2026.
ESAB's share price history is about 4.6 years long. That is too short to show how the stock held up in the 2008 financial crisis, the 2020 COVID crash or the full 2022 bear market. The shares fell as much as 52% from their peak in the year to October 28, 2026. Single stocks carry more risk than diversified funds, because one company's setbacks can hit the whole investment.
Questions investors ask
How does ESAB make money?
ESAB makes money by selling equipment and consumables for cutting, welding and joining metal. It also sells welding robotics, software and gas control equipment. Independent distributors and its own salespeople sell its products in about 150 countries. Revenue was about $2.84 billion in fiscal 2025. Roughly 60% came from the EMEA & APAC segment and 40% from the Americas. Its operating margin was 14.5%. That is the share of sales left after paying operating costs.
Does ESAB pay a dividend?
Yes, but the dividend is small. ESAB paid $0.38 per share in fiscal 2025, up from $0.15 in fiscal 2022, and it raised the dividend each year in between. The yield was 0.62% as of October 28, 2026. The dividend used only about 10% of fiscal 2025 earnings. ESAB's annual report says it cannot guarantee the payment, timing or amount of future dividends.
How has ESAB stock performed?
The stock fell sharply in the year to October 28, 2026, after big gains in 2023 and 2024. As of that date, the share price was down 41.2% over one year and 36.3% year to date. At one point it was 52% below its peak. Over three years it gained about 4.3% a year. Calendar-year price returns were 85.2% in 2023, 38.9% in 2024 and a loss of about 6.6% in 2025. The shares traded at 19.3 times fiscal 2025 earnings.
Who are ESAB's main competitors?
ESAB's annual report names two rivals: Lincoln Electric and the welding business of Illinois Tool Works. It also competes with well-established regional companies and with specialists in particular products. No single company competes with it in all of its markets. ESAB expects the market it competes in to be worth about $45 billion by the end of 2028. It says customers care most about quality, reliability, price, on-time delivery and support after the sale.
How much debt does ESAB have?
ESAB had about $2.39 billion of total debt as of July 3, 2026, against $217 million of cash and investments. That left net debt of about $2.17 billion. Shareholders' equity (assets minus liabilities) was about $2.54 billion. ESAB lists its debt as a risk factor and warns it could limit its ability to meet its obligations and pay dividends. It also says it may need more money to pay for acquisitions, which are central to its strategy.