SharkNinja shares soar 11% as third quarter results crush expectations
NORTH BETHESDA, Md. - ESAB Corporation (NYSE:ESAB) reported third-quarter earnings that exceeded analyst expectations on Wednesday, with positive organic growth and strong performance in its Equipment and Automation segment.
The company’s shares fell 1.93% in pre-market trading following the announcement.
The industrial compounder posted adjusted earnings of $1.32 per share for the third quarter, surpassing the analyst estimate of $1.27. Revenue reached $727.85 million, significantly above the consensus estimate of $659.1 million and representing an 8% increase on a reported basis or 2% on a core organic growth basis compared to the same period last year.
Core adjusted EBITDA rose 7% to $133 million, though margins decreased slightly by 20 basis points to 19.4% compared to the prior year quarter.
"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, ESAB President and CEO. "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 portfolio showed mid-single-digit growth, while the company’s recent acquisition of EWM contributed to overall performance. ESAB also highlighted that its integration team is advancing cross-selling initiatives and margin-expansion opportunities.
Following the strong quarter, ESAB raised its full-year 2025 guidance, now expecting total core sales growth of 4.5% to 5.5%, up from its previous outlook of 1.5% to 3.5%. The company also increased its core adjusted EBITDA outlook to $535-$540 million from $525-$535 million, and narrowed its core adjusted EPS guidance to $5.20-$5.30, compared to the analyst consensus of $5.26.
Despite the positive results and raised outlook, investors appeared cautious, with shares declining nearly 2% following the earnings release.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.