New York, February 4, 2026, 15:43 (EST) — Regular session
Shares of ESAB Corp jumped roughly 7.4% to $126.62 in afternoon trading Wednesday, reaching an intraday peak of $128.52. The S&P 500, however, edged down around 0.3%.
The move follows just two sessions after ESAB announced its $1.45 billion acquisition of Canada’s Eddyfi Technologies, a deal that initially sent its shares down around 5%. The welding and cutting equipment firm said the purchase will expand its portfolio and strengthen its presence in aerospace, defense, nuclear, and civil infrastructure markets. The deal is expected to close by mid-2026. (Reuters)
ESAB is positioning Eddyfi, a specialist in inspection and monitoring tech, as a way to reduce its cyclical swings and extend its growth horizon. CEO Shyam P. Kambeyanda called the acquisition a “pivotal step.” Eddyfi’s chairman, Martin Thériault, described the deal as “a new chapter” for his firm. ESAB projects Eddyfi will bring in around $270 million in revenue by 2026, with roughly $80 million in adjusted EBITDA—a profit metric that excludes certain items—or about $100 million after anticipated run-rate synergies. The company plans to finance the purchase through a mix of cash, debt, and $318 million in committed equity, aiming to keep net leverage, its debt-to-earnings ratio, under 3.0x by year-end. (ESAB Corporation)
An SEC filing revealed ESAB’s preliminary guidance for Q4 and full-year 2025, alongside a 2026 outlook that excludes Eddyfi. The company anticipates fourth-quarter revenue between $720 million and $722 million, with core adjusted earnings per share ranging from $1.34 to $1.36—“core” here meaning it excludes the Russia business. Looking ahead to 2026, ESAB projects core revenue of $2.85 billion to $2.95 billion, core adjusted EBITDA between $575 million and $595 million, and core adjusted EPS of $5.70 to $5.90. (SEC)
JPMorgan cut its price target to $130 from $138 but maintained an “Overweight” rating, citing a potential six-cent hit to 2026 earnings per share before a slight boost in 2027, according to a summary from Investing.com. Analyst Tami Zakaria also flagged that leverage could linger near three times until early 2027. (Investing)
On the charts, ESAB pushed past its 200-day moving average, hovering around $118 — a key long-term benchmark for many traders. While technical signals don’t usually convey new information by themselves, they often add fuel to rapid price moves. (Nasdaq)
Shares linked to welding and industrial fabrication climbed as well. Lincoln Electric jumped roughly 5.6%, Illinois Tool Works added around 4.2%, and the industrials ETF XLI nudged up 0.3%.
Following Monday’s selloff, the rebound indicates investors are backing the notion that a larger, software-and-services-focused portfolio can support a higher multiple. That’s the wager ESAB is placing—though it will take more than a single day’s trading to confirm it.
The deal could still unravel. Regulatory hold-ups, botched integration, or a drop in industrial demand might strain the balance sheet and squeeze margins—especially if interest rate forecasts shift unexpectedly.
One key date looms: the purchase agreement pins Nov. 30, 2026 as the final deadline to close, with a built-in three-month extension if the buyer remains in ongoing regulatory talks, according to the document. Between now and then, traders will track financing moves and look for signals that Eddyfi will be consolidated into ESAB’s financials. (SEC)
