Esab Corporation · NYSE:ESAB
Esab — Q1 2025 Earnings Presentation
22 slides from Esab's earnings presentation, May 1, 2025
Slide 1: First Quarter 2025 Earnings Conference Call
First Quarter 2025 EARNINGS CONFERENCE CALL May 1, 2025 © 2024
Slide 2: Forward-Looking Statements & Non-GAAP Disclaimer
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 no
Slide 3: 1Q 2025 Highlights
1Q 2025 Highlights 1Q 2025 results: ▪ Strong execution $647M Flat Sales1 Organic Sales Growth1 ▪ MSD welding & gas equipment growth ▪ Robust 1Q margin driven by EBX $128M +4% ▪ Full year outlook remains on-track aEBITDA1 Year-over-Year ▪ Includes tariff impact ▪ Completed Bavaria acquisition 19.8% +
Slide 4: Training The Next Generation Of Global Welders
Training The Next Generation Of Global Welders Creating welding career opportunities for Indian students ▪ Partnered with the Government of Tamil Nadu ▪ Providing students welding skills development and training ▪ Certified training providing attractive career path Investing in the next generation o
Slide 5: ESAB's Global Operations Provide A Comparative Advantage
ESAB’s Global Operations Provide A Comparative Advantage Successfully navigating tariffs ~80% of products made locally EMEA 9 Facilities1 Strong regionally based teams Americas APAC 11 Facilities1 5 Facilities1 Flexible supply-chains Disciplined price management Americas EMEA APAC Filler Metal Fille
Slide 6: Shaping A Premier Industrial Compounder
Shaping A Premier Industrial Compounder Improved Sales Mix What we have done since 2016: Refreshed product portfolio and gained market share 10% 18% Created a differentiated and less cyclical automation solution 28% 2016A 1 1Q 2025 1 58% 62% 24% Expanded leading gas control franchise into medical ga
Slide 7: Track Record Of M&A Implementation Since 2016
Track Record Of M&A Implementation Since 2016 Strategic Criteria Digital Automation Consumables TAM Solution Solutions Expansion ▪ Strengthens ESABs proprietary consumable portfolio Consumables ▪ Leader in end-markets expected Bangladesh to gain from EU stimulus ▪ Utilizes ESAB’s distrib tion to Com
Slide 8: ESAB 1Q 2025 Financial Summary
ESAB 1Q 2025 Financial Summary ($ Millions) 1Q 20251 1Q 20241 YoY Organic Sales Growth Flat Total Sales $647 $656 (1)% aEBITA $119 $115 4% aEBITA Margin % 18.4% 17.5% 90 bps aEBITDA $128 $123 4% aEBITDA Margin % 19.8% 18.8% 100 bps 1Q Highlights: 1Q 2025 Sales Growth1,2: ▪ Strength in high-growth ma
Slide 9: ESAB 1Q 2025 Americas
ESAB 1Q 2025 Americas ($ Millions) 1Q 2025 1Q 2024 YoY Organic Sales Growth (2)% Total Sales $281 $296 (5)% aEBITDA $55 $54 1% aEBITDA Margin % 19.4% 18.3% 110 bps 1Q Highlights: 1Q 2025 Sales Growth1: ▪ Strong price management Organic Price (2)% 3% ▪ Well positioned to handle tariff fluctuations Vo
Slide 10: ESAB 1Q 2025 EMEA and APAC
ESAB 1Q 2025 EMEA and APAC 1 ($ Millions) 1Q 20251 1Q 20241 YoY Organic Sales Growth 2% Total Sales $366 $360 2% aEBITDA $73 $69 6% aEBITDA Margin % 20.0% 19.2% 80 bps 1Q Highlights: 1Q 2025 Sales Growth1,2: ▪ High-growth markets continue to show strength Organic Price 2% (1)% ▪ Europe shows ongoing
Slide 11: Focused On Creating Strong Cash Flow
Focused On Creating Strong Cash Flow $41M $30M ▪ Proactively pre-purchased ~$10 million of inventory due to tariffs ▪ A net leverage ratio of 1.5x provides financial flexibility ▪ Strongly positioned to implement compounder strategy 1Q 2024 1Q 2025 Net Leverage 1.8x 1.5x Cash Flow enabling our goal
Slide 12: 2025 Outlook
2025 Outlook Prior FY 2025 FY 2025 Financial Metrics Guidance1,2 Guidance1,2 ▪ Total Sales guidance increased: ▪ M&A includes the Bavaria acquisition; guidance increased to 2.0-2.5% from ~1.5% Sales $2.54–$2.59 $2.57–$2.63 ▪ Foreign exchange outlook improved to ~(3.0)% from ~(3.5)% Core Organic Grow
Slide 13: Summary
Summary ▪ On-track to deliver 2025 ▪ Continuing to invest in growth ▪ Shifting to a more profitable mix ▪ EBX driving higher margins ▪ Strong M&A funnel Shared Help Each Always Purposeful Every Voice Success Other Win Improving Leadership Valued ESAB’s comparative advantage driving long-term shareho
Slide 14: Appendix
Appendix Pd ESAB * ESAB CORPORATION =_
Slide 15: Full Year 2025 Outlook
Full Year 2025 Outlook ESAB Prior 2025 Guidance1 2025 Guidance1 Sales ($B) 2.54 – 2.59 2.57 – 2.63 Total Growth (2.0)% - 0.0% (1.0)% - 1.5% Core Organic Growth 0.0% - 2.0% 0.0% - 2.0% FX ~(3.5)% ~(3.0)% M&A ~1.5% 2.0% - 2.5% aEBITDA ($M) 515 – 530 520 – 530 Interest Expense & Other ($M) 62 – 65 65 –
Slide 16: Non-GAAP Reconciliation EBITA – 1Q '25 Total & Segments
Non-GAAP Reconciliation EBITA – 1Q '25 Total & Segments1 Dollars in millions Three Months Ended April 4, 2025 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV $ 280.7 $ 397.5 $ 678.1 Net Sales $ — $ 31.3 $ 31.3 Net Sales attributable to Russia $ 280.7 $ 366.2 $ 646.9 Core Net
Slide 17: Non-GAAP Reconciliation EBITDA – 1Q '25 Total & Segments
Non-GAAP Reconciliation EBITDA – 1Q '25 Total &Segments1 Three Months Ended April 4, 2025 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV $ 280.7 $ 397.5 $ 678.1 Net Sales $ — $ 31.3 $ 31.3 Net Sales attributable to Russia $ 280.7 $ 366.2 $ 646.9 Core Net Sales $ 43.2 $ 66.6
Slide 18: Non-GAAP Reconciliation EBITA – 1Q '24 Total & Segments
Non-GAAP Reconciliation EBITA – 1Q '24 Total & Segments1 Three Months Ended March 29, 2024 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV $ 296.0 $ 393.7 $ 689.7 Net Sales $ $ 33.6 $ 33.6 Net Sales attributable to Russia — $ 296.0 $ 360.1 $ 656.1 Core Net Sales $ 46.0 $ 64.7
Slide 19: Non-GAAP Reconciliation EBITDA – 1Q '24 Total & Segments
Non-GAAP Reconciliation EBITDA – 1Q '24 Total & Segments Three Months Ended March 29, 2024 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV $ 296.0 $ 393.7 $ 689.7 Net Sales $ — $ 33.6 $ 33.6 Net Sales attributable to Russia $ 296.0 $ 360.1 $ 656.1 Core Net Sales $ 46.0 $ 64.7
Slide 20: Non-GAAP Reconciliation – 2016 Pro Forma aEBITDA
Non-GAAP Reconciliation – 2016 Pro Forma aEBITDA1 (Dollars in millions) 12/31/2016 % of NSV Net Sales $ 1,800.5 Net Sales attributable to Russia $ 110.4 Adjusted Net Sales excluding Russia (Core) $ 1,690.1 Operating Income $ 195.4 10.9 % Acquisition amortization and other related charges $ 30.9 Depr
Slide 21: Non-GAAP Reconciliation – Net Income to Adjusted EPS
Non-GAAP Reconciliation – Net Income to Adjusted EPS1 Three months ended ($ Millions, except Per Share Data) April 4, 2025 March 29, 2024 Net income from continuing operations $ 72.6 $ 62.9 Income attributable to noncontrolling interest, net of taxes $ 2.5 $ 1.6 Net income from continuing operations
Slide 22: Non-GAAP Reconciliation – Adj. Free Cash Flow
Non-GAAP Reconciliation – Adj. Free Cash Flow Three months ended ($ Millions) April 4, 2025 March 29, 2024 Net cash provided by operating activities $ 35.4 $ 44.5 Purchases of property, plant and equipment $ (7.3) $ (7.4) Payments related to discontinued operations $ 2.3 $ 3.7 Adjusted free cash flo