Esab Corporation · NYSE:ESAB
Esab — Q3 2025 Earnings Presentation
21 slides from Esab's earnings presentation, Oct 29, 2025
Slide 1: Third Quarter 2025 Earnings Conference Call
Third Quarter 2025 EARNINGS CONFERENCE CALL October 29, 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: 3Q 2025 Highlights
3Q 2025 Highlights 3Q 2025 results: ▪ Strong execution in a challenging environment $687M +2% Sales1,2 Core Organic Growth1 ▪ Return to organic growth ▪ Accelerating growth and AI investment $133M +7% ▪ Completed EWM acquisition; Integration is aEBITDA1,2 Year-over-Year underway ▪ Raised FY 2025 sal
Slide 4: Shaping The World We Imagine
Shaping The World We Imagine ▪ Remake This Town Tour Bus outfitted by ESAB ▪ Multi-city tour in the U.S. ▪ Creating welded sculptures for local communities ▪ Introducing opportunities for a welding career ▪ Partnering w/ Vilnius Tech, Riga Tech & Burnley College ▪ ESAB employees volunteering time to
Slide 5: Americas Improving
Americas Improving Americas sales ($M) YoY improvement driven by: +1% $293 $289 U.S. grew MSD $283 U.S. Equipment & Automation up MSD Other regions performing as expected 3Q 24 2Q 25 3Q 25 Organic 2% (7)% 0% Growth Tariff Impact 3Q improved sequentially as tariff uncertainty declined Proprietary & C
Slide 6: EMEA & APAC Continues To Perform
EMEA & APAC Continues To Perform EMEA & APAC sales ($M) EMEA & APAC benefiting from: +14% High-growth markets remain strong $396 $3951 Equipment & Automation up HSD YoY $347 EU stimulus & infrastructure investments in high- growth markets 3Q 24 2Q 25 3Q 25 Completed EWM acquistion Organic 1% 4% 3% G
Slide 7: Completed EWM Acquisition
Completed EWM Acquisition Strengthens HIP & Robotics Leading React technology is a differentiator Accretive gross margins Investing to drive synergy opportunities Changing the game with EWM Proprietary & Confidential 7 ESAB Corporation
Slide 8: ESAB 3Q 2025 Financial Summary
ESAB 3Q 2025 Financial Summary ($ Millions) 3Q 20251,2 3Q 20241 YoY1 Total Sales $687 $636 8% aEBITA $123 $116 7% aEBITA Margin % 18.0% 18.2% (20) bps aEBITDA $133 $125 7% aEBITDA Margin % 19.4% 19.6% (20) bps 3Q Highlights: 3Q 2025 Sales Growth1,2: Organic 2% ▪ High-growth markets maintained strong
Slide 9: ESAB 3Q 2025 Americas
ESAB 3Q 2025 Americas ($ Millions) 3Q 2025 3Q 2024 YoY Total Sales $293 $289 1% aEBITDA $57 $59 (4)% aEBITDA Margin % 19.6% 20.6% (100) bps 3Q Highlights: 3Q 2025 Sales Growth1: Organic 0% ▪ Sequential sales improvement as expected Price 4% ▪ US grew MSD driven by Equipment & Automation Volume (4)%
Slide 10: ESAB 3Q 2025 EMEA and APAC
ESAB 3Q 2025 EMEA and APAC 1 ($ Millions) 3Q 20251,2 3Q 20241 YoY Total Sales $395 $347 14% aEBITDA $76 $66 16% aEBITDA Margin % 19.3% 18.9% 40 bps 3Q Highlights: 3Q 2025 Sales Growth1,2: ▪ Continued strong performance Organic 3% Price (1)% ▪ High-growth markets performing well Volume 4% FX Translat
Slide 11: Financial Flexibility To Execute Compounder Strategy
Financial Flexibility To Execute Compounder Strategy Cash 3Q Cash Conversion 107% ▪ Cash flow reflects: Adjusted 1.0% $86M ▪ Lower inventory ex EWM Free Cash Flow ($M) ▪ EBX process improvements in-order-to-cash 50 0.5% ▪ Expect strong 4Q cash flow generation 0 3Q24 4Q24 1Q25 2Q25 3Q25 2.1x Net Leve
Slide 12: Raising 2025 Outlook
Raising 2025 Outlook Prior FY 2025 FY 2025 Financial Metrics Guidance1,2 Guidance1,2 ▪ Total Sales guidance has been raised to account for the EWM acquisition & Sales $2.63–$2.68 $2.71–$2.73 improved FX Core Organic Growth % 0%–2% ~1% ▪ Core Organic Growth guidance updated to ~1% aEBITDA $525–$535M
Slide 13: Summary
Summary ▪ Raised 2025 guidance ▪ Q4 off to a good start ▪ Investing for growth ▪ EBX to drive further efficiency in Americas ▪ Accelerating integration activities at EWM ▪ Strong funnel supports compounder strategy Shared Help Each Always Purposeful Every Voice Success Other Win Improving Leadership
Slide 14: Appendix
Appendix Pd ESAB * ESAB CORPORATION =_
Slide 15: Full Year 2025 Outlook
Full Year 2025 Outlook ESAB Prior 2025 Guidance1 2025 Guidance1 Sales ($B) 2.63 – 2.68 2.71 – 2.73 Total Growth 1.5% - 3.5% 4.5% - 5.5% Core Organic Growth 0.0% - 2.0% ~1% FX ~(1.0)% (1)% - 0% M&A ~2.5% ~4.5% aEBITDA ($M) 525 – 535 535 – 540 Interest Expense & Other ($M) 70 – 75 ~82 Adjusted Tax Rat
Slide 16: 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 17: 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 18: Non-GAAP Reconciliation EBITA – 3Q '24 Total & Segments
Non-GAAP Reconciliation EBITA – 3Q '24 Total & Segments1 Three Months Ended September 27, 2024 % of % of % of ($ Millions) Americas EMEA & APAC Total ESAB NSV NSV NSV Net Sales $ 288.8 $ 384.4 $ 673.3 Net Sales attributable to Russia — 37.7 37.7 Core Net Sales $ 288.8 $ 346.8 $ 635.6 Operating Incom
Slide 19: Non-GAAP Reconciliation EBITDA – 3Q '24 Total & Segments
Non-GAAP Reconciliation EBITDA – 3Q '24 Total & Segments1 Three Months Ended September 27, 2024 % of % of % of ($ Millions) Americas EMEA & APAC Total ESAB NSV NSV NSV Net Sales $ 288.8 $ 384.4 $ 673.3 Net Sales attributable to Russia — 37.7 37.7 Core Net Sales $ 288.8 $ 346.8 $ 635.6 Operating Inco
Slide 20: 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 3, 2025 September 27, 2024 Net income from continuing operations $ 65.3 $ 71.0 Income attributable to noncontrolling interest, net of taxes 1.7 1.6 Net income from continuing operatio
Slide 21: Non-GAAP Reconciliation – Adj. Free Cash Flow
Non-GAAP Reconciliation – Adj. Free Cash Flow Three months ended Nine months ended ($ Millions) October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024 Net cash provided by operating activities $ 81.5 $ 101.0 $ 163.5 $ 228.5 Purchases of property, plant and equipment (11.3) (10.7) (27.