ESAB Corporation (NYSE:ESAB) delivered better-than-expected third-quarter results on Wednesday, supported by solid organic growth and strong contributions from its Equipment and Automation division, yet its shares fell 1.93% in premarket trading as investors reacted cautiously to the update.
The company posted adjusted earnings of $1.32 per share, beating analyst expectations of $1.27, while revenue climbed 8% to $727.85 million, well ahead of the $659.1 million consensus estimate. On a core organic basis, growth stood at 2% year over year.
Core adjusted EBITDA rose 7% to $133 million, although margins edged down 20 basis points to 19.4% compared with the same quarter last year, reflecting higher input costs and ongoing integration expenses.
“Our U.S. business returned to mid-single-digit growth as tariff uncertainties abated, and our EMEA and APAC businesses continued to see strong demand from high-growth markets,” said Shyam P. Kambeyanda, President and CEO of ESAB. “Our M&A compounding strategy is accelerating with the completion of the EWM acquisition, which completes our heavy equipment and automation portfolio.”
The Equipment and Automation segment posted mid-single-digit growth, boosted by EWM’s acquisition, which expanded ESAB’s product offering and geographic reach. The company noted that integration and cross-selling efforts are progressing, creating opportunities for margin improvement and synergies.
Reflecting its confidence in continued momentum, ESAB raised its full-year 2025 guidance. It now projects core sales growth of 4.5%–5.5%, up from 1.5%–3.5%, and core adjusted EBITDA of $535–$540 million, compared with the prior range of $525–$535 million. The firm also narrowed its EPS outlook to $5.20–$5.30, aligning with the analyst consensus of $5.26.
Despite the strong performance and upgraded forecast, investors appeared cautious, with the stock slipping nearly 2% after the results — a possible reflection of valuation concerns and softening industrial demand signals heading into 2026.