Esab (ESAB) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may ...

Group 1 - ESAB Corporation (NYSE:ESAB) is recognized as one of the top 15 Industrial Machinery and Supplies stocks favored by hedge funds [1] - JPMorgan analyst Tami Zakaria has reaffirmed an Overweight rating on ESAB, adjusting the price target from $140 to $138 due to a potential dilutive impact from the acquisition of Eddyfi [1] - Zakaria anticipates that the acquisition will become accretive by approximately 5 cents per share in 2027 despite initial concerns regarding the acquisition multiple of 14.5x [1] - Oppenheimer analyst Bryan Blair raised the target price for ESAB from $142 to $148, maintaining an Outperform rating, indicating over 29% upside potential [2] - Blair noted an 8% decline in ESAB's share price since the second-quarter results, attributing this to investor skepticism about growth potential and margin expansion [3] - Despite current headwinds, Blair expects margin improvement and growth guided by EBX in the near future [3] Group 2 - ESAB Corporation is an industrial compounder that manufactures and supplies consumable products and equipment, including cutting materials, consumables, gas controlling solutions, and welding equipment [4] - The company also provides software and digital solutions aimed at enhancing productivity and enabling remote monitoring of welding operations [4]

Company Overview - ESAB shares increased by 8.3% to $127.61 in the last trading session, with a higher-than-average trading volume, compared to a 1.2% gain over the past four weeks [1] - The company announced a definitive agreement to acquire Eddyfi Technologies, which is expected to expand its addressable market by $5 billion, enhancing its presence in high-growth sectors such as Aerospace and Defense, Nuclear, Energy, and Civil Infrastructure [2] Financial Performance - ESAB is projected to report quarterly earnings of $1.33 per share, reflecting a year-over-year increase of 3.9%, with expected revenues of $687.7 million, up 8.6% from the previous year [3] - The consensus EPS estimate for the upcoming quarter has been revised marginally lower over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - ESAB holds a Zacks Rank of 3 (Hold) within the Metal Products - Procurement and Fabrication industry, while TriMas (TRS), another company in the same sector, closed 0.3% higher at $35.04, with a return of -1.6% over the past month [5] - TriMas' consensus EPS estimate for the upcoming report remains unchanged at $0.41, representing a year-over-year decline of 4.7%, and it currently holds a Zacks Rank of 2 (Buy) [6]

Core Viewpoint - ESAB Corporation is acquiring Eddyfi Technologies to enhance its position as a leading provider of complete workflow solutions, aiming for accelerated growth, improved margins, and sustainable value creation [4]. Group 1: Acquisition Details - The acquisition of Eddyfi Technologies is a strategic move for ESAB, reinforcing its commitment to shaping the future of the company [4]. Group 2: Leadership Statements - Shyam Kambeyanda, President and CEO, emphasized the significance of this acquisition in aligning with the company's purpose and values [4].

Summary of ESAB Corporation's Acquisition of Eddyfi Technologies Conference Call Company and Industry - **Company**: ESAB Corporation (NYSE: ESAB) - **Acquisition Target**: Eddyfi Technologies - **Industry**: Inspection and Monitoring Technology Core Points and Arguments 1. **Acquisition Announcement**: ESAB announced the acquisition of Eddyfi Technologies, aiming to create a comprehensive provider of workflow solutions in fabrication, inspection, and monitoring [1] 2. **Strategic Importance**: The acquisition is seen as a significant step in ESAB's strategy to drive faster growth, higher margins, and durable value creation for stakeholders [3] 3. **Market Opportunity**: Eddyfi expands ESAB's total addressable market (TAM) by approximately $5 billion, increasing ESAB's TAM to roughly $45 billion [6][9] 4. **Financial Performance of Eddyfi**: Eddyfi is a market leader in electromagnetic and ultrasonic testing, with high single-digit growth, gross margins around 65%, and EBITDA margins of approximately 30% [7] 5. **Synergies Identified**: ESAB has identified $20 million in run-rate synergies from the acquisition, focusing on sourcing, shared services, and operational efficiencies [9] 6. **Growth Projections**: Pro forma revenue for ESAB in 2025 is expected to be around $3 billion, with EBITDA margins projected to reach approximately 22% by 2027 [10] 7. **Transaction Details**: The acquisition is valued at $1.45 billion, with expected revenue contribution of about $270 million in 2026 [11] 8. **Market Dynamics**: The inspection and monitoring market is characterized by high growth, attractive margins, and lower cyclicality, making it a compelling area for investment [4][26] 9. **Cultural Alignment**: The cultural fit between ESAB and Eddyfi is emphasized, with both companies sharing a commitment to technology leadership and customer intimacy [5][17] Additional Important Content 1. **Recurring Revenue**: Eddyfi has a recurring revenue component of about 55%, driven by the need for replacement parts and ongoing service in inspection and monitoring [33] 2. **Geographic Expansion**: Eddyfi's North American exposure complements ESAB's global footprint, providing immediate opportunities for geographic expansion [6] 3. **Market Fragmentation**: The inspection and monitoring market is described as fragmented, with opportunities for further acquisitions to enhance ESAB's position [24][74] 4. **Regulatory Environment**: The competitive landscape includes both larger players and numerous smaller competitors, indicating a diverse market structure [74] 5. **2026 Outlook**: ESAB anticipates organic growth of 2%-4% in 2026, with a flat first quarter expected due to seasonal factors [15][40] This summary captures the key points from the conference call regarding ESAB's acquisition of Eddyfi Technologies, highlighting the strategic rationale, market opportunities, and financial implications of the deal.

ESAB Corporation Eddyfi Acquisition Conference Call February 2, 2026 Forward-Looking Statements & Non-GAAP Disclaimer Forward-Looking Statements This presentation includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning the acquisition of Eddyfi, future results and leverage after the acquisition and funding of the acquisition ...

Acquisition Details - The acquisition involves 9559-2796 QUÉBEC INC. purchasing all issued and outstanding shares of EDDYFI HOLDING INC., NDT NATION INC., NDT ALLIANCE INC., HMT INC., GESTION MICHAEL SIROIS INC., and GESTION FLORIAN HARDY INC.[2] - The agreement is dated January 31, 2026, indicating a future strategic move for market expansion and consolidation within the industry[2] - The purchase price and estimated purchase price details are outlined in the agreement, emphasizing the financial commitment involved in this acquisition[4] - The agreement includes provisions for post-closing adjustments, which may impact the final financial outcomes of the acquisition[4] - The transaction involves multiple stakeholders, including various limited partnerships and trusts, indicating a complex ownership structure[9] - The agreement specifies conditions precedent that must be satisfied for the closing to occur, ensuring due diligence and regulatory compliance[5] - The Parent company, ESAB CORPORATION, is involved for the purpose of providing a guaranty, highlighting the financial backing for the acquisition[12] - The agreement outlines the treatment of options and their surrender prior to closing, which may affect employee compensation and retention strategies[13] - The transaction is part of a broader strategy to enhance the company's portfolio and capabilities in the market[2] - The agreement includes confidentiality and exclusivity clauses, ensuring that sensitive information is protected during the transaction process[5] Financial Statements and Definitions - The audited consolidated financial statements for Previan Technologies for the fiscal year ended December 31, 2024, are referred to as the "Annual Financial Statements"[24] - The term "Cash" includes all cash and cash equivalents, totaling an aggregate sum calculated in accordance with the Accounting Principles[32] - "Current Assets" are defined as the aggregate sum of accounts receivable, current tax credits, work-in-progress, and inventories, calculated in accordance with the Accounting Principles[50] - "Current Liabilities" encompass accounts payable, accrued expenses, and customer deposits, calculated in accordance with the Accounting Principles[51] - The "Debt Financing" refers to any credit facility or issuance of debt securities obtained for financing the Transactions[57] - "Corporation Transaction Expenses" include all fees and costs incurred in connection with the Transactions, excluding certain liabilities[49] - "Antitrust Clearances" are necessary for the Transactions, including HSR Clearance and Competition Act Clearance if required[26] - The "Effective Time" is defined as 0:01 a.m. Eastern time on the Closing Date[65] - The "Closing Cash" is calculated immediately prior to the Effective Time, in accordance with the Accounting Principles[38] - "Books and Records" include all financial data and records related to the Business, excluding privileged communications[29] - The Escrow Amount is set at $14,500,000[72] - The Group's Indebtedness includes all outstanding principal amounts and accrued interest on borrowed money, with specific exclusions for accounts payable and deferred tax liabilities[109] - The Financial Statements encompass both Annual and Interim Financial Statements, adhering to IFRS standards[108] - The Group's obligations under Government Contracts are material to the Business, indicating significant reliance on governmental agreements[95] Employee and Shareholder Information - Employee Plans include a wide range of benefits such as retirement, health insurance, and profit-sharing arrangements for current and former employees[66] - The Group's Employee Shareholders exclude Gestion Holdcos, indicating a specific shareholder structure that may impact governance[67] - The Group's employment contracts for key employees provide for annual salaries exceeding $150,000[131] Regulatory and Compliance Matters - The Group is subject to Environmental Laws regarding the handling of Hazardous Substances, which may impact operational compliance[67] - The Group's financing arrangements include various credit agreements with HSBC entities, indicating a structured approach to capital management[80][84] - The Group's future outlook may be influenced by Foreign Investment Clearances required for certain transactions, affecting market expansion strategies[86] - The Group's transactions require clearance from the Italian government under foreign investment laws[118] - The Group's agreements include provisions for regulatory approvals necessary for the completion of transactions[158] - "Regulatory Approvals" are necessary for closing transactions without restrictions[166] Financial Metrics and Obligations - The Target Working Capital is set at $76,000,000[184] - The definition of "Working Capital" includes the sum of Current Assets minus Current Liabilities[200] - "Taxes" encompass a wide range of levies including income, sales, and property taxes, among others[184] - "Registered Intellectual Property" includes patents, trademarks, copyrights, and domain name registrations[165] - "Transaction Personal Information" refers to personal data held by the Group related to employees and clients[191] - "Vendors' Transaction Expenses" include all fees and costs incurred by vendors prior to closing[197] - "Sanctioned Person" refers to individuals or entities identified on various sanctions lists[174] - "Shareholders Agreements" include multiple agreements among various stakeholders in the Corporation[176] - "R&W Insurance Policy" is referenced in the context of risk management related to transactions[170] Material Contracts and Financial Condition - Material contracts include distributor agreements with annual sales exceeding $2,000,000 over a nine-month period[123] - The Group's financial condition is subject to material adverse changes that could impact operations and transactions[122] - The Group has obligations related to various financial agreements with significant creditors, including NBC and HSBC[146] - The Group's capital expenditures or fixed asset acquisitions require payments exceeding $1,000,000[131] - The Group's interim period is defined as starting from the date of the agreement until the closing date or termination[115] - The Group's unaudited balance sheet as of September 30, 2025, reflects a consolidated financial position[115]

Core Viewpoint - ESAB Corporation has signed a definitive agreement to acquire Eddyfi Technologies for $1.45 billion, enhancing its capabilities in advanced inspection and monitoring technologies [1][2]. Acquisition Details - The acquisition is expected to generate approximately $270 million in revenue and $80 million in adjusted EBITDA by 2026, with potential synergies increasing adjusted EBITDA to $100 million [2]. - Funding for the acquisition will come from cash on hand, debt, and $318 million of fully committed equity, with the transaction expected to close in mid-2026, pending regulatory approvals [2][6]. - ESAB has committed to maintaining Eddyfi's workforce and head office in Quebec City as part of the acquisition [2]. Strategic Implications - This acquisition is seen as a pivotal step for ESAB, positioning the company for its next phase of growth and expanding its total addressable market by approximately $5 billion [3][4]. - The integration of Eddyfi is expected to enhance ESAB's offerings across fabrication, inspection, and monitoring, making it a preferred partner for global customers [4]. - Eddyfi is projected to deliver high-single-digit organic growth with gross margins exceeding 65%, contributing to a faster-growing and higher-margin portfolio for ESAB [4]. Financial Outlook - Following the acquisition, ESAB anticipates a net leverage ratio of less than 3.0x by year-end [6]. - For the full year 2025, ESAB expects revenue between $2,842 million and $2,844 million, with core revenue ranging from $2,700 million to $2,702 million [9]. - The company projects diluted EPS from continuing operations to be between $4.08 and $4.10, with core diluted EPS ranging from $5.25 to $5.27 [9].

Core Viewpoint - NN Inc. (NNBR) is currently viewed as a more attractive investment option compared to Esab (ESAB) for value investors due to its superior valuation metrics and earnings estimate revision activity [1][3][7]. Valuation Metrics - NNBR has a forward P/E ratio of 10.86, significantly lower than ESAB's forward P/E of 20.52 [5]. - The PEG ratio for NNBR is 0.24, indicating a more favorable valuation in relation to its expected earnings growth, while ESAB's PEG ratio stands at 2.10 [5]. - NNBR's P/B ratio is 1.54, compared to ESAB's P/B ratio of 3.39, further highlighting NNBR's undervaluation [6]. Analyst Outlook - NNBR holds a Zacks Rank of 2 (Buy), reflecting a positive earnings estimate revision trend, whereas ESAB has a Zacks Rank of 3 (Hold) [3][7]. - The stronger estimate revision activity for NNBR suggests a more favorable analyst outlook compared to ESAB [3][7]. Value Grades - NNBR has been assigned a Value grade of A, indicating strong undervaluation metrics, while ESAB has received a Value grade of D [6].

Core Viewpoint - Investors are evaluating NN Inc. (NNBR) and Esab (ESAB) to determine which stock offers better value opportunities in the Metal Products - Procurement and Fabrication sector [1] Group 1: Zacks Rank and Earnings Estimates - NN Inc. has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Esab has a Zacks Rank of 4 (Sell) [3] - The earnings estimate revision activity for NNBR is more impressive, suggesting a favorable analyst outlook compared to ESAB [3] Group 2: Valuation Metrics - NNBR has a forward P/E ratio of 9.43, significantly lower than ESAB's forward P/E of 20.19 [5] - NNBR's PEG ratio is 0.21, indicating better value relative to its expected earnings growth, while ESAB's PEG ratio is 2.07 [5] - NNBR's P/B ratio stands at 1.34, compared to ESAB's P/B of 3.34, further highlighting NNBR's relative undervaluation [6] Group 3: Value Grades - NNBR has earned a Value grade of A, while ESAB has a Value grade of D, indicating that NNBR is viewed more favorably by value investors [6] - The combination of Zacks Rank and Style Scores suggests that NNBR is the better investment option at this time [6]