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ESAB Powers Ahead: Strategic Acquisitions and Margin Expansion Fuel $4B Growth Vision

Updated: July 18, 2025 19:23

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ESAB Corporation is charting an ambitious course toward $4 billion in revenue by 2028, backed by disciplined execution, high-margin segment expansion, and strategic acquisitions.
 
Key performance indicators:
 
- Q1 2025 revenue stood at $678 million, with adjusted EBITDA margin hitting a record 19.8%.

- The gas control segment now contributes 18% of total revenue, up from 10%, with gross margins exceeding 45%.

- ESAB raised its full-year EBITDA guidance to $520–530 million, citing strong performance in EMEA and APAC.
 
Strategic moves:

- ESAB acquired Germany’s EWM GmbH for €275 million, adding €120 million in annual revenue and bolstering its heavy industrial welding portfolio.

- The acquisition is expected to be accretive to EPS in its first year, with targeted ROIC above 10% by 2030.

- EWM’s vertical integration and 400+ partner network enhance ESAB’s European footprint and automation capabilities.
 
Dividend and investor confidence:

- ESAB announced a 25% dividend hike to $0.10 per share, reflecting robust free cash flow and management’s confidence in sustained earnings growth.

- The company maintains a conservative payout ratio and targets 100% cash conversion by 2028.
 
Outlook:

- While the Americas face tariff-related headwinds, ESAB is offsetting costs through strategic pricing and expects upside from European stimulus and Indian industrial growth.

- Analysts remain bullish, citing ESAB’s resilience, margin trajectory, and compounding potential.
 
Sources: Investing.com, Business Wire, AInvest, Stockrow, CGAA, Markets Insider, ESAB Investor Filings, Reuters Europe, Bloomberg Industrial News, Yahoo Finance UK

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