ESABNot HalalF
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Compliance Status

Not Halal

Screened on Oct 13, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is ESAB Corporation (ESAB) halal? Not Halal. Based on AAOIFI screening, ESAB Corporation passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

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HalalScreener rates ESAB Corporation (ESAB) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 13, 2026. Source: https://halalscreener.app/en/stock/ESAB

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

58.9% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding ESAB

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

ESAB Corporation

ESAB: Is ESAB Corporation Halal?

ESAB Corporation

NYSEIndustrialsUS

$65.35

Market Cap: 4.1B

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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 · Industry: Industrial - Machinery

Why this does not pass

  • Interest-bearing debt is 58.9% of market cap, over the 30% AAOIFI limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 13, 2026

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Screened according to AAOIFI Standard 21

Compliance History

  1. Not Halalnow

    since Aug 2026

  2. Halal

    until the change above

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

Fiscal: Q2 2026Data source: EDGAR
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Frequently Asked Questions

Is ESAB Corporation (ESAB) halal to invest in?
ESAB Corporation (ESAB) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did ESAB Corporation get a F compliance rating?
ESAB Corporation (ESAB) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 58.9% (limit 30%). 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: Oct 13, 2026.

Screened according to AAOIFI Standard No. 21 · 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.