Esab Corporation · NYSE:ESAB
Esab — Q3 2026 Earnings Presentation
24 slides from Esab's earnings presentation, Nov 4, 2026
Slide 1: Third Quarter 2026 Earnings Conference Call
Third Quarter 2026 EARNINGS CONFERENCE CALL November 4, 2026 © 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: Q3 2026 Highlights
Q3 2026 Highlights Q3 2026 results: ▪ Solid 3Q total core sales & aEBITDA ▪ Organic growth in both segments $787M +14% Sales1 Total Core Growth1 +2% Core Organic Growth 1 ▪ Weakness in SAM & ME ▪ Continued inflationary pressure $156M +17% aEBITDA1 Year-over-Year ▪ Investing in growth initiatives & A
Slide 4: Only ESAB: Category Defining Fabrication Workflow
Only ESAB: Category Defining Fabrication Workflow INSPECT & 1 CUT 2 JOIN 3 SHIELD 4 AUTOMATE 5 ANALYZE 6 MONITOR Prepare & shape Filler metal fuses Weld pool Scale with Digitize & analyze Verify & monitor the metal the joint shielding consistency weld data in the field Complete Workflow Addresses: Q
Slide 5: Our Complete Workflow Is Unlocking New Paths to Organic Growth
Our Complete Workflow Is Unlocking New Paths to Organic Growth Funnel Breakdown GOING TO MARKET TOGETHER END MARKET LEAD RELATIONSHIP PULL-THROUGH SIZE Our complete workflow has unlocked significant cross- Energy › ~28% sell opportunities Infrastructure › ~25% + Nuclear › ~20% ~$465M Rail › ~14% Aer
Slide 6: Beginning to Show the Potential of ESAB
Beginning to Show the Potential of ESAB Q1 2026 Q2 2026 Q3 2026 Sales1 $714M $766M $787M Organic Sales Organic growth % -1.1% 2.5% 2.3% Growth Adj. Gross Profit %1 38.0% 38.9% 40.2% Adj. Gross Profit % Expansion Adj. EBITDA %1 19.0% 19.5% 19.8% Adj. EBITDA % Expansion CF from Ops. Cash flow from ops
Slide 7: Q3 2026 Geographic Performance
Q3 2026 Geographic Performance Geography YoY Organic % Geography YoY Organic % Americas + LSD EMEA & APAC + LSD US / Canada + HSD Europe + LSD Rest of Region - HSD APAC + LDD MEA - HSD Americas impacted by: EMEA & APAC: ▪ Earthquake in Colombia ▪ Middle East flat QoQ ▪ Brazilian elections ▪ Mexico f
Slide 8: Q3 2026 Financial Results
Q3 2026 Financial Results $ in millions, except per share data Q3 2025 Q3 2026 Sales1 $687 $787 Organic growth % 2.0% 2.3% Adj. Gross Profit1 $259 $316 % of sales 37.7% 40.2% Adj. EBITDA1 $133 $156 % of sales 19.4% 19.8% Adj. Net Income1 $80 $83 aEPS $1.32 $1.30 Q3 Highlights: Q3 2026 Sales Growth1
Slide 9: Q3 2026 Americas
Q3 2026 Americas $ in millions Q3 2025 Q3 2026 YoY Total Sales $293 $337 15.2% aEBITDA $57 $67 17.3% aEBITDA Margin % 19.6% 19.9% 30 bps Q3 Highlights: Q3 2026 Sales Growth1 ▪ Organic growth driven by U.S. & Canada up HSD Organic 0.8% Price 2.7% ▪ NAM equipment up LDD Volume (1.9)% ▪ NAM gas control
Slide 10: Q3 2026 EMEA & APAC
Q3 2026 EMEA & APAC 1 $ in millions Q3 2025 Q3 2026 YoY Total Sales $395 $449 13.9% aEBITDA $76 $89 16.8% aEBITDA Margin % 19.3% 19.8% 50 bps Q3 Highlights: Q3 2026 Sales Growth1 ▪ Organic growth driven by Europe & APAC Organic 3.4% Price 2.3% ▪ Europe up LSD, APAC up LDD Volume 1.1% ▪ Middle East u
Slide 11: Cash Flow & Leverage
Cash Flow & Leverage $ in millions Q3 2025 Q3 2026 ▪ Cash generation & conversion improving Cash from Operations $90 $111 sequentially Cash Interest (8) (38) ▪ Free cash flow impacted by interest expense Net cash from Ops. (GAAP) $812 $73 ▪ Adjusted net leverage expectations: Adj. Free Cash Flow1 $8
Slide 12: Updated 2026 Outlook
Updated 2026 Outlook $ in millions, except per share data Prior FY 26 Outlook1 Updated FY 26 Outlook1 ▪ Includes 7 months of Eddyfi Sales $3.0 - $3.1B $3.055 - $3.060B ▪ Sales assumes: Organic Growth % 2% - 4% 1.6% - 2.0% ▪ M&A benefit ~9.5% aEBITDA $615 - $625M $603 - $607M ▪ FX tailwind ~2% ▪ Key
Slide 13: Summary
Summary ■ Solid 3Q total core sales & aEBITDA ■ Unrivaled workflow solution gaining momentum ■ Investing for growth & productivity ■ EBITDA growth & cash generation driving deleveraging ■ EBXai accelerating growth & cost out Shared Help Each Always Purposeful Every Voice Success Other Win Improving
Slide 14: Appendix
Appendix Pd ESAB * ESAB CORPORATION =_
Slide 15: Full Year 2026 Guidance
Full Year 2026 Guidance ESAB 2026 Guidance – Includes Eddyfi1 Updated 2026 Guidance – Includes Eddyfi1 Sales ($B) 3.00 – 3.102 3.055 – 3.0602 Total Growth 11.0% – 14.0%2 13.1% – 13.3%2 Core Organic Growth 2.0% – 4.0% 1.6% – 2.0% FX 0.0% – 1.0% ~2.0% M&A ~9.0% ~9.5% aEBITDA ($M) 615 – 625 603 – 607 I
Slide 16: Non-GAAP Reconciliation – Adjusted Gross Profit
Non-GAAP Reconciliation – Adjusted Gross Profit1 Three Months Ended ($ Millions) October 2, 2026 % of NSV October 3, 2025 % of NSV Net sales $ 824.5 $ 727.8 Core net sales 786.8 687.4 Gross profit (GAAP) 323.6 39.3 % 269.3 37.0 % Inventory fair value step-up 2.6 0.5 Adjusted gross profit (non-GAAP)
Slide 17: Non-GAAP Reconciliation – Adjusted Gross Profit Q1 & Q2
Non-GAAP Reconciliation – Adjusted Gross Profit Q1 & Q21 Three Months Ended ($ Millions) July 3, 2026 % of NSV April 3, 2026 % of NSV Net sales $ 807.6 $ 745.6 Core net sales 766.3 714.5 Gross profit (GAAP) 307.2 38.0 % 275.1 36.9 % Inventory fair value step-up 0.9 1.8 Adjusted gross profit (non-GAA
Slide 18: Non-GAAP Reconciliation EBITA – 3Q '26 Total & Segments
Non-GAAP Reconciliation EBITA – 3Q '26 Total & Segments1 Three Months Ended October 2, 2026 % of % of % of ($ Millions) Americas EMEA & APAC Total ESAB NSV NSV NSV Net Sales $ 337.4 $ 487.1 $ 824.5 Net Sales attributable to Russia — 37.7 37.7 Core Net Sales $ 337.4 $ 449.5 $ 786.8 Operating Income $
Slide 19: Non-GAAP Reconciliation EBITDA – Total Q1 & Q2
Non-GAAP Reconciliation EBITDA – Total Q1 & Q21 Three Months Ended ($ Millions) July 3, 2026 % of NSV April 3, 2026 % of NSV Net Sales $ 807.6 $ 745.6 Net Sales attributable to Russia 41.4 31.1 Core Net Sales $ 766.3 $ 714.5 Operating Income $ 78.7 9.7 % $ 90.5 12.1 % Restructuring and other related
Slide 20: Non-GAAP Reconciliation EBITDA – 3Q '26 Total & Segments
Non-GAAP Reconciliation EBITDA – 3Q '26 Total & Segments1 Three Months Ended October 2, 2026 % of % of % of ($ Millions) Americas EMEA & APAC Total ESAB NSV NSV NSV Net Sales $ 337.4 $ 487.1 $ 824.5 Net Sales attributable to Russia — 37.7 37.7 Core Net Sales $ 337.4 $ 449.5 $ 786.8 Operating Income
Slide 21: Non-GAAP Reconciliation EBITA – 3Q '25 Total & Segments
Non-GAAP Reconciliation EBITA – 3Q '25 Total & Segments1 Three Months Ended October 3, 2025 % of % of % of ($ Millions) Americas EMEA & APAC Total ESAB NSV NSV NSV Net Sales $ 292.7 $ 435.1 $ 727.8 Net Sales attributable to Russia — 40.4 40.4 Core Net Sales $ 292.7 $ 394.7 $ 687.4 Operating Income $
Slide 22: Non-GAAP Reconciliation EBITDA – 3Q '25 Total & Segments
Non-GAAP Reconciliation EBITDA – 3Q '25 Total & Segments1 Three Months Ended October 3, 2025 % of % of % of ($ Millions) Americas EMEA & APAC Total ESAB NSV NSV NSV Net Sales $ 292.7 $ 435.1 $ 727.8 Net Sales attributable to Russia — 40.4 40.4 Core Net Sales $ 292.7 $ 394.7 $ 687.4 Operating Income
Slide 23: Non-GAAP Reconciliation – Net Income to Adjusted EPS
Non-GAAP Reconciliation – Net Income to Adjusted EPS1 Three months ended ($ Millions, except Per Share Data) October 2, 2026 October 3, 2025 Net income from continuing operations $ 42.2 $ 65.3 Income attributable to noncontrolling interest, net of taxes (1.4) (1.7) Declared dividends on the MCPS (2.
Slide 24: Non-GAAP Reconciliation – Adj. Free Cash Flow
Non-GAAP Reconciliation – Adj. Free Cash Flow Three months ended Nine months ended ($ Millions) October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025 Net cash provided by operating activities $ 72.7 $ 81.5 $ 153.0 $ 163.5 Purchases of property, plant and equipment (18.3) (11.3) (49.7) (27.