Is ESAB Corporation (ESAB) halal? Halal. Based on AAOIFI screening, ESAB Corporation passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 79/100 (Grade: B+).

ESAB Corporation

ESAB: Is ESAB Corporation Halal?

Halal

ESAB Corporation

NYSEIndustrialsUS

$91.57

+2.71%

About ESAB Corporation

ESAB Corporation specializes in the creation, production, and distribution of industrial consumables and advanced equipment for cutting, joining, and automated welding processes, in addition to gas control systems. Their extensive catalog features welding consumables like electrodes, cored and solid wires, and fluxes, crafted from various specialty materials. They also supply cutting consumables such as electrodes, nozzles, shields, and tips. ESAB's fabrication technology portfolio encompasses everything from compact, portable welding machines to complex, custom-engineered automated cutting and welding solutions. Furthermore, the company provides innovative digital software and solutions aimed at enhancing customer productivity, facilitating remote oversight of welding operations, and streamlining documentation. Marketed under the ESAB brand, these offerings cater to a wide array of sectors, including general manufacturing, construction, infrastructure development, transportation, conventional and renewable energy, and even the medical and life sciences industries. Distribution occurs via a network of independent partners and a dedicated direct sales team. Founded in 2021, ESAB Corporation maintains its headquarters in Wilmington, Delaware.

Sector: Industrials 路 Industry: Manufacturing - Metal Fabrication

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 14, 2026
B+

Good

Good compliance with minor concerns

79Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap22.1% / 30.0%

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 14, 2026Fiscal: Q1 2026Source: FMP

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Financial Overview

Market Cap

5.6B

Price

$91.57

Sector

Industrials

Industry

Manufacturing - Metal Fabrication

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Frequently Asked Questions

Is ESAB Corporation (ESAB) halal to invest in?
Based on AAOIFI Standard 21 screening, ESAB Corporation (ESAB) is rated Halal with a compliance grade of B+ (Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did ESAB Corporation get a B+ compliance rating?
ESAB Corporation (ESAB) received a grade of B+ (Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 22.1% (limit 30%); interest-bearing deposits of 3.3% (limit 30%); prohibited income of 0.00% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change ESAB Corporation's Shariah verdict?
ESAB Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is ESAB Corporation re-screened for Shariah compliance?
ESAB Corporation (ESAB) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 14, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.