ESAB - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. At this time, I would like to welcome everyone to today's ESAB Corporation Third Quarter 2024 Earnings Call. [Operator Instructions]

I would now like to turn the call over to Mark Barbalato, Vice President of Investor Relations. Mark, please go ahead.

Mark Barbalato

operator. Thanks, Third Call. ESAB's XXXX Quarter to Earnings Welcome This Shyam Kambeyanda; joined by and CEO, our President and morning, I'm CFO, Kevin Johnson. mind forward-looking to in are filings and forth keep that release. the SEC of Please earnings statements in making our are including and risks, subject today's are those set some we and do assume forward-looking required law. any except results statements, or intend Actual as we may obligation differ, these not to update by

related any non-GAAP release the financial measures those the found during be today, information presentation. and press to mentioned accompanying call in reconciliation respect to slide earnings can measures With our today's

that, With our turn call Kambeyanda. President over I'd to to like Shyam and CEO, the

Shyam Kambeyanda

marked and today. growth, record by for good Mark, robust Thank everyone. third joining quarter you, margins We're you flow market. report us to challenging and in a all quarter positive Thank pleased cash volume morning, strong another

commercial footprint, to growth. our geographic organic award-winning differentiated Our initiatives products, continue acquisitions and drive strategic excellence

discuss Let's quarter. to move for to the Slide X specific highlights

recognize for other parts First, Strong Middle markets India, as want strategy slower their such counterbalance demand Asia in teams and EBX. helped our to to East of the and I markets. commitment high-growth relentless our have globally

sales equipment double products of heavy portfolio and with the channels. gain momentum continued to digits continue in industrial light deliver to equipment this Our quarter. new increasing low has These across our

strategy. cash to us XXX quarter. generated points in equipment execute positive third free flow, volume with we basis have gas a and for business compounded seeing EBITDA to $XXX we're a control in Adjusted margins growth enabling million year-to-date, our Additionally, expanded our steady record adjusted And price. record the reach XX.X%

of share and Middle passion world stories to sharing reflections Turning teams I India. teams the from East to This recent shape the the customers I've to and enterprise visit in my to reflect our and Slide of want our time, X. our my trip we imagine. that been power the

going in grew in Middle the to trip reassuring. executive been pride I as the have was early mentioned we and As you to ourselves I up Gemba. know India an since team XXXXs. before, know, this all East visiting I've This you

I these infrastructure you different insights and on and see and get energy both to in in meaningful you plans. reiterate, to change regions, new have additional every the is projects trip,

For the those Al familiar of ambitious development excitement. plans Dubai. with Ras ESAB are generating significant beyond you Emirates, Dhabi for you Khaimah. see its continues now Similarly, There Abu Saudi creating growth in and progress, and

investments X generation materialize, further customers. schools in skilled backlog East the have anticipated East. in Middle if Our several government Saudi of training by the addressing We've years. And orders welders. the largest next Middle in this now Arabia on also focused extending established the at customers backlog shortage could We're training our a of welder the increase

in team's India This and in And in, changes no like work. quarter, now, activities cranes it's to in cities. are see some I'd the grew up our our exceptional longer India. doing Clearly, with the highlight visit, country is X team you every Tier construction noticeable I

and made future there, manufacturing adding well leaders dynamic, to geography. in in expanding rapidly the both consistent capacity we business of We're meet as as We've R&D are our our proud current Chennai, in expanding and market capabilities investments this demand.

of On new training our this English, which the to of specific actively welders growth unprecedented is ESAB's equipment the where binding Bandhan, team the expecting. called in are project meet or we're bond generation we means Project on initiative proud very

And annually workplace more welders in providing new of India. X,XXX-plus are importantly, generation we're the safety. around welders special We training training

zero believe may know, you incidents As we possible. at ESAB, is

XX,XXX our India, initiative volunteered have in hours teams this over future our to in shape we As XXXX.

$X.X around the statistic you necessary another government are paying India's and support next is trillion to infrastructure crucial significant, ESAB We skilled Let the to know training needs role years. I'm investments in on growth a India. leave plans. the with has workforce over that say proud of me X announced India's

X. Slide to Moving

Let's sustainable growth. accelerate capabilities long-term explore how to the we're building

I good progress seeing globally. mentioned earlier comments Investor Day in and today, during my As sales in we're equipment

me Let teams working enable on our what share this have growth. to been

aligning enhancing First, Investor line key initiative, excellence around to our our highlighted product segments growth serve commercial is gaining By customers ESAB's simplification approach we're our better accelerating refining customer customer at traction. Day experiences. through our while organization and process, our

are in faster equipment. we going result, a As

products needed supported also presence channel our social EBX initiatives we're market. our We're and ESAB's which studios media showed to brand marketing targeted media shorten market did social million bring we our products in build North generating XXX%. with efforts Alongside across open supported a new study each content validated has to already these All by amplifying pipeline America efforts, are showcase geographic resulting for the marketing model, including to time by innovation enhancing brand that by impressions region to in the These brand new creating innovation creators digital continues impact, was positive this improved hard significant work by approximately XXX in recognition equity. ESAB.

reflect company. EBX basis X, All our this quarterly sales and performance. from a continued double-digit growth growth across our setting business. Adjusted let's year-over-year, review Organic reflecting record points third points, Slide control sales initiatives in XXX by the markets. strength expanded XXX high-growth of basis to positive quarter in EBITDA These driven was increased Moving by gas results equipment XX.X%.

markets expect. in softer Slide rose X that performance focusing which the strong sales points, the to XXX Americas. Turning by Organic basis on offset by performance, we driven and end pricing

Our and third point job reaching in lean deliver to excellent sales EBX channel, initiatives the to using equipment increase the XXX XX.X%. excitement tools an solutions did EBITDA adjusted of basis and quarter drive margin and record team in continue workflow a

X Moving discuss Slide the regions. and EMEA in APAC to to performance

offsetting the Asia and tool expected. of execution performance. strong volume markets net East high-growth margin another Volume XXX softness achieved as basis year-over-year, Middle expansion use in EBX, led increased of reaching XX.X%. in points, teams Europe, operational basis Europe Our XXX pricing and with to quarter points by the Effective solid

Kevin over Slide let to On hand that for positive note, it X. me

Kevin Johnson

morning. Good Thanks, Shyam.

During cash the XXX despite our coupled expansion conversion cash on well cash consistent generated generation growth, third year-over-year order EBX continue positions and we The our million execute greater we strong challenging points our to the flow More into flow in combination our in part the quarter of basis this ESAB. Linde to ESAB fund to cash robust integrating delivered flow, margin quarter, in journey. market improvements generation, of acquisition had specifically, to of than cash $XX we well positive ESAB free more free Bangladesh conditions. as is to of use organic XXX% flow cash a drive used and terrific the which We processes. with on balance sheet, completed compounder quarter,

Moving to Slide #XX.

Below the guidance Given the as benefiting point our $XXX to midpoint raised increased to across the continued guidance drive to Sales gains to the to of from midpoint $X.XX to we million to high-growth markets the raised share at from XX% of increased EBX stronger-than-expected $XX EBITDA at X.X use business. our is been improvements our Adjusted the in results have the at system whilst business our board. $XX $X.XX has narrowed midpoint $X stronger in further guidance the to we XX%. been guidance million Adjusted midpoint at third our X%, performance and and remains million million EPS has tax line, quarter, performance. now $XXX interest benefiting expense unchanged in been million our has X% to equipment.

positive We momentum. are pleased far with year, expect our team's XXXX we and finish execution so with this to

that me On hand back note, wrap XX to Shyam to on up. let Slide

Shyam Kambeyanda

Thank you, Kevin.

not year the business. technology. electrode started invention yet. global September, in by of a Sweden Kjellberg. then, leading with has In in Before celebrated been I close, its something innovator I've XXXth fabrication Oscar Since ESAP mentioned a ESAB in ESAB coated

particular, products our Our better. received latest there customers solutions. anniversary. We to is in and improvements our we've workflow clear and It about also associates our excitement XXXX joined and could suggestions celebrate we what on the future do and was us made feedback on since that great great XXXth

As we future. history adapt win we our to change with we and XXX-year look pride, need back on to understand the

We quarter, margins generation. positive and organic to quarter record performance. flow cash our strong free summarize third another solid quarter strategy growth, continues with To drive robust the delivered

approach we are permeate quarter, And continues the the our bringing bar to of continues to EBX business. this to leaders Our deliver. The share on standards together performance. innovation and manufacturing engine raise our practices best

Our strongest point. balance at sheet is its

that us to well Our is assets strategic expansion. growth pursue full active and enhance margin and acquisition positions pipeline

XXXX started. Remember, sales, billion on $X and in we're flow that to plus goals, are getting cash We EBITDA achieve XX% track margins exceeds net income. our free just in

the open for line questions. joining this us you that, all With morning. let's operator, for Thank

Operator

Baird. [Operator Mig looks line Instructions] from our like comes with It the of question first Dobre

Mircea Dobre

guess thought that equipment I'd interesting macro end your I comment sales was up would. to or subdued digits. like you the backdrop, quite where market relative more I to if start, on double being

sort you're if Is function there it's X growth know So if if a can. geography aware I product it's dynamic of? to new secondarily, there, channel or seeing -- this equipment? select curious give us or I'm for here, where which can some sense of just don't you in broad-based need here this rollouts? that Yes, we And we is geographies? like pure let's of a start then just be stocking X

Shyam Kambeyanda

you. good always from Yes. Mig, to hear

of things. couple a So

here play ESAB. believe First, a for of in things I there's do couple

The ESAB. force was and is our commercial plans really embarked able the on training, portfolio really what incentive which of one selection, our first training to for be we that changes initiative sell to excellence different in a drove sales

that that gas today, have talked quarter. consumables portfolio, well in and equipment. a second And in equipment we've The our something plays forget, about that also full we don't the and both with piece business in did is ESAB

a out of now extraordinarily good very competes our sales marketplace. so that there with matter peer selling the in well as portfolio group are fact, teams are a And our

American North sort I think It's knew on turn. America. great slowly that that we're going us was in interest. The to third for be make piece, to something always North of making We we a tremendous begin progress the highlighted, you and work market would which

our markets brand. shift there. seeing U.S. doing positions we we like very strength But America, well actually those of what is past and India, our seeing where are in like to significant business equipment in in Europe, had to are continue We customers interest South markets the

your that's what's sales. to said growth sort is so stocking? paraphrase our our the and The driving channel And you seeing good of we're I no. if And some our seeing answer plans we in regular of whether execution is the some -- are movements against What what that's progress bridges. causing were to question equipment short

Mircea Dobre

your provide things argument business, I accretive through about think see is like to It here. a auto specifically gotten Then guess than is and tougher out obviously, context how And some just some a you sounds little for there there? and my a not growth? have business made starts how going kind be if more there. I'm great. tougher times. That's your Europe you on The you forming to that follow-up becomes XXXX, to in eventually guidance, to bottom Europe. can curious of I'm question separate of as sector, Europe bit Is but that detracted an looking rather performing

Shyam Kambeyanda

Yes.

for us, similar calibrate just that perform we we think it saw performed so how in to I ourselves QX. Europe that

Europe but a pronounced our our gaining with we're see doing market change teams performed, being related didn't And are a pursued growth. we to So focused I said, necessarily simplification where in that also I our would and in XX/XX share. state European or dip line phenomenal activity a product how job that

I remember, what an inclination and in that you teams line towards had doing our take product at our have If you executing some initiative been we that's Europe growth. well. as And of that really simplification, mentioned view with to extraordinarily was to looked our

penetrate that see out But is finding you're And share bit. generally in view subdued. stays It automotive similar to levels. right. share, it is grow at are we a We Europe me end The yellow question wallet. so terms regarding goods. down finish of of our opportunities as to asked the of We markets, we you see year

of particular to our but continue front your worsening to so question. seeing not that that, market is in gist we're if on a Europe, that the intention And play was

Operator

question next the from of Nathan our with Stifel. line And comes Jones

Adam Farley

ahead, pricing. Maybe talk -- pricing start input Could and This on can with go the Nathan. Shyam. for you And is is price regionally? differences costs the Adam Farley in about sorry, cost we

Shyam Kambeyanda

No, sorry. question, no. Adam, your Finish out

Adam Farley

I price still and was favorable EMEA in pricing compression? going despite cost APAC, to say, the is

Shyam Kambeyanda

Yes.

you Kevin of I a little give color. hand think and let that kind bit me more question start off, it I'll to to

show things that we've businesses. and the that see instilled of within often the to of that calorie I mix talked about lines. it's business in itself a in And We've about really content is our talked we've we've all process think talked you higher discipline And great our shifting one the quality, about how value third we performed quarter. with higher our pricing. the to pricing product of

third very that the piece where down quickly market going the inflation-based particular see aspect. prices to up, we're or whether then And with we pricing -- is going out

net So answer to in as price, we're pricing. color then the how region some both Americas net question to your in you about Kevin Europe. are in by on we and price, positive can give And thinking

Kevin Johnson

negative with our management price. the that work will segments, We've and whereas lot and of we're very positive teams. organic said, Americas, the APAC. of mentioned, APAC, growth in net EMEA margin both positive be Shyam Americas, price. performance And to in in and expectation and put as of negative we'll pleased expecting price expectation volume, we the into is we're of have positive. volume as the expecting a the Shyam we're and flat the In So both our in quarter, flat EMEA fourth effort And has is the

Adam Farley

Okay. gears And of That's then shifting really helpful. just kind here.

South Asia, ESAB. needs markets there or any that channel Are company product gaps a the very to region? key India, obviously, in growth still address key Bangladesh, the for

Shyam Kambeyanda

there's Well, those markets. talk that a about I things think in often we few

equity, you you about I better brand how very brand. create and better that's what you create think talked how do demand, for how view do do on comfortable then is brand us a workforce create trained the with and I your briefly your is

so e-commerce. that easier are our content easier, establishing And to our those our focus centers, familiar training schools, through people creating with products products establishing make in are access geographies much getting

sense. did competitor think And and a competitor. our before, that's adding that size, that the that And our closest Xx I that serve way market which as acquisition a is our size in ground to customers, most intention is our Xx, markets what doing team mentioned we're I've there. to there make bigger then serve game economy, those we we're -- with sales closest result, makes with And basically multiple is importantly, also and got Bangladesh, this is fast-growing another now introduce that well, than we've the in market spaces pleases and our a in products

things the And creating talked and that I so of the was about the investment our in market that one R&D products center, are to out. pertinent building

answer short expand to laurels to on So our the have that continuing to we're geographies new game not resting base. and tools change we're the lead. market using a trying We're those our bringing that in is user we where

Operator

of Tami JPMorgan. question next Our from comes line Zakaria the with

Tami Zakaria

Two quarter. questions. nice Really

has The great a strong performance for Again, And not some volume first that very volume because good one segment's time year. really actually about been EMEA, strong is your I number for -- thought and backdrop. interesting region. actually APAC, grew so macro top that of a was on last very quite

to I'm market market of volume are do in understand, market that can you're about exposure positive Anything end volume time growth growth? and sustaining you're trying some driving different you or in now? this have share gaining So type you that's for a share end what seeing how that you

Shyam Kambeyanda

couple A question. for Tami, of I to Yes. the want thanks things with. start that

is our First teams.

products opinion, always had local understand that in the you we've well. strength, in that outperform. their local geographies and understand things that the where we've distribution is us we've that channel markets, legacy One my see understand can the And of with spoken leaders teams got about our

often a questions is and that you how line developed product we've performing last we the results is get product line so some develop our line, And the over of years. product strong X strength your for the actually did the that of reflect

separate to to last establish bridges, to around Middle X we using available The our easier us and and over that what's have the in continue tool years market, business with. growth using with extraordinarily make position, the and particular India. is our market to second piece create that kits that separation portfolio along East ourselves leadership hard And our our to between worked brought digital do we've it

is And think itself ESAB what's begin that we've X share. in separate the is last are yes, share last not I This aspects short that months. markets This we're markets on so these geographies. have state the something those allowing to numbers to focused the of is gaining that, has invested in something answer we ESAB years. to for XX XX been And are all these the But if the would these done and last up because in we months. over gaining

margin And the of in to we've last journey. allowed over in to expect of our create us individually allowed to I continue submit to said separation the reason being with add do kind something years. if that years, as us comfortable that that that to for it, that. X the our I I've gain it's could is and to of our investing we're to state all end just X allowed us been very last we've well And also is reinvested the business expansion you has new introduce important we would share, to that business products,

and line, it the expansion story is not away taking that just margin that means also term. So down we investing everything long to do business we're our our in for taking the bottom and it put something

Tami Zakaria

helpful. very it. Got That's

So definitely with your other seems off Middle investments the paying stuff. along East in India like and

versus sort And share do growth double-digit share in America Okay, your bridging think my consumables share to you the what is equipment assuming refresher the said question consumables equipment quarter. that this region? a going then us to path in remind next back gap? is, great. see in you is Can low that of on you And I North growth, higher. I'm

gap a time? So the path do that X bridging over see you between to

Shyam Kambeyanda

Yes.

So let that answer me question.

I North speak me talking think America of question specifically, in and you were about broadly America, then a I'll answer that but of about let sort with that sort question, North little particular.

you're broadly on. spot So speaking,

We perform in we've equipment seeing extraordinarily well always a markets our brand in are presence had portfolio where equipment.

and than in our result, India, we're Middle equipment Europe, really of consumables. America, East, gain grow in as in seeing faster seeing South sort And a in traction. in equipment to sales begin the So our sales we're

really our sales we've product so capable are one, because teams line selling developed; And reassuring; because two, the that's of it.

of told something I customers second aspect shifting are The to that that is those American in is you North yellow. regions

And so also that we're you sit very which to confident that America. a geography we're going is happen see of over North in that lot I and the time, in,

comfortable North our of something We've in equipment numbers North with But of position equipment. is metal that about Our in America in in exact given in in we not low. script, share are brand America. XXX% the our grown what out has even was recognition spoke my filler or terms that I it's where

thing market The stated we've to you all selling by is work in of American that the plan North other that we to value.

Our great in intention we're North that is going play we're long best-in-class And that brand the and a establishing for we're We've to this game got products. term. building America. nomenclature

The should as gain share. comfortable. see so years, we very in and green We're seeing And seeing globally. North well America. that And that grow couple over also of I'm us next the we're spots progress

Operator

comes next Our Raso from of question David with Evercore. the line

David Raso

year fair like can quarter, now to year. like am you fourth but organic, numbers my flat it too a range. quarter. through Can just imply bps here, organic would X% but you that confirm just closer high fourth is the closer said that take I XX right? believe end the think sounds if many couple you for to you math to I the we're the do quick of That the mean doing to ones. you full Is for for math? midpoints in say, organic of the don't I full The

Kevin Johnson

of guidance you the what's would the take probably given, math of you midpoint of XX, that The round the David. use midpoint there if range about at

David Raso

to quarter bps. fourth the that to get imply might XXX would math down XX you XXX My only basis be to points Okay.

can comes on when quarter. the need American said think volumes, fourth flat Did you that hear we I discuss that the So But be. volumes correctly offline Americas, for from if it to you? the I

Kevin Johnson

say we flat to on No. fourth quarter. Yes, for the negative volumes

Shyam Kambeyanda

No, he's Americas. talking specifically

I think to you mentioned price be positive...

Kevin Johnson

be positive would we'd price volumes. Americas, and slightly the in expect negative Sorry,

Shyam Kambeyanda

rest reverse world. was And the of it for the the

David Raso

Bangladesh year the the Correct. X%, that. XX next total line, for the of I there bps. I when in on that's top Any look got next is acquisitions question acquisition, it bps or assume spirit just The still expected to is I The sure, on from at for close. assuming XX closes... Linde, helping help making consensus and Sager carryover probably the year, sales SUMIG revenue for the for over

Kevin Johnson

Yes.

We're on we've revenue last we through the million So quarter. have something to close the in still given expect the SUMIG David, about working we acquisition around to for out, $XX of still year. the the and call, expect full process, fourth

David Raso

Okay.

So helpful. so. bps another or maybe adds That XXX that's

of the guide the on volumes in trajectory common quarter, on in color Americas organic volumes, are just is you a saying selective helpful not in Is The the price we're volume The having focused there negative fourth about a in absorbed a EMEA, obviously, -- what's X.X even give us on but price, more worse. bit quarter getting a again, going can maybe. was little curious I'm is the negative hey, impressive volumes. Europe basically, there? the that little plus. with which So

Americas please let feel just I'm I trying on sure light, trajectory make to you starting not take Because understand you Can perspective, getting just the don't like negative? worse a particularly on of me correctly, if the volumes? any you volume the representing what is macro know. Americas parts channel, us that 'XX, I'm where through seem heavy,

Shyam Kambeyanda

Yes.

channel channel weather-related the best the I had a it, slower way was do-it-yourself had think its DIY, for in there. bit the margin uptake, -- but we expansion, pull a quarter had quarter the market. to few and to on the a to the put sort in the third But items then We brought we other the of through opportunities also able also slow be had lines in some product was that bit growth quarter.

So growth is customers but clearly activities team sluggish, bridges I've terms spec stuff America worse. broad of of we a short together that a our and of show we nothing bit getting worked and that can can go North the that plans is after wallet is answer the that The with team. in put as share

America we North against confident in So talked enough not those regardless small plans beneficial in of this we there, small really about thing our that front. other the what on before, our execution seeing we're feel David, to in ESAB increments share equipment market where enough. we've does. And have the about said is And particular shifts think are progress I this position and

well control of also in and North the gas Our business benefiting American doing us. is all market that is

David Raso

That's little why focus control. I bit on wanted gas a to

you business list on pretty about, feel things obviously, growth control on is of Gas a we a high share talking think that sluggish usually as industry maybe year, as even in it. there indication, is an little where equipment welding year, industry leader. gaining we if comfort margins. can confident next situation the just we're the your the you put a control a you expect? next within 'XX, something of can in take what that obviously momentum Is you're any would some that you For lot gas Is

Shyam Kambeyanda

about expecting digits. talked mid-single obviously we've time being that over -- business We're

business digits margin the think of business higher gas premier of about single industrial side side today the low past, of is us something we that on and sort year, for at on control that profile. we've talked the our in Next

ESAB. is we growth mix for so higher get there that And a any caloric

to as which we we didn't into And at earlier, about been. as us and the talk of script, this our look ever David, then well, in our also acquisitions add, strongest funnel what I it's know is I it might my funnel mentioned extend allows I

strengthen hope there. deals to to a so And that inorganic as we well can do position few we our continue

David Raso

deals, control as targets much average, gas are your are margins to accretive In at as the company you're above margins? also looking general

Shyam Kambeyanda

right. That's

Operator

comes from question of Capital. Chris with Dankert next Loop our line And the

Christopher Dankert

Great guess, clarify difference looking just X%. growth Is maybe or equipment. how point of in if I sales with on double-digit you the could off, there clarification XX-Q, equipment was a to that up first Russian the maybe. point? just just But the to hear are closer disaggregated at

Kevin Johnson

element Yes, include the of business. the numbers some total that would

would equipment a and when light it's XX-Q so that little industrial have about mix would we that going just the heavy equipment, also, basis, not the automation impact. So And a we're talking within component. bit have and of through on were some also included the when GAAP are number talking about we industrial in automation

Christopher Dankert

it. it. of kind Got I a guess That's helpful. And Got really segue. nice

you around the sales we're but kind thinking the or all us overall quarter, it lump Just still of sales XX% that when gave on growth equipment any in together? you about automation CAGR, of comment automation sales specifically? is And

Shyam Kambeyanda

about sales that's our is Yes, of right. It today. XX%

Kevin Johnson

Yes.

the trajectory, the In automation side, on business, to of see continuing Chris. good cobot terms we're

little is So that bit quarter. the a area that's slower do was a within that quarter. the integrators, has we the by the the nicely slower Obviously, up in been little bit which work

Shyam Kambeyanda

side to we're On that the expecting of And market the the that automation, looks funnel backlog go. and order I side really think to good. continue

One And not integrators of access we're actually to. doing with is we're and calls doing in has that has workflow one ESAB our we've not to I'd solution the created partnering helped and end-arounds we which the itself to been things with you, received other things today, integrators pleasant very seen been comfortable have we from getting where because have them. that had from tell they've surprise the inbounds ESAP what position and now that of that past, integrators several some a now, we've Chris, partner

go automation So the of quarter there's were thinking good that cyclical into and XXXX business for that momentum we term. side as about margins on long real over us us makes the fourth how OpEx the and better we less into and

Operator

next Oppenheimer. Blair Bryan Our comes from the line Instructions] of with question [Operator

Bryan Blair

mentioned Bangladesh, Linde you more gas with medium, think control your offer integration was really seen that has where never should near-term of I the you've better. Are surprises? differently terms prospects if is then kind consistent little you over in early long-term can of about weighted any the composition quarters? focused M&A, funnel the we hoping the funnel of been color And your in to a with on early-stage team coming going, or team planning just

Shyam Kambeyanda

answer to the them I team the To with Bangladesh, and recently. was question Yes. on more actually spoke

part I be think excited the to of ESAB. team is

focus business chance strong. that things They I gives is our think us team. growth of on some to that subcontinent. we've that continue is for the to part helps. that serve capacity to review a extraordinarily with the I it bridges about one other talked as had the But look having well a us of

the Asia is so not extends of well for but Linde, our growth for country just South in terms the as And of also Southeast and Bangladesh for opportunities Bangladesh opportunity. possibly Asia

So we're very excited.

about, other was piece equipment primarily a we've The talked the and market. often it business, into now that to consumables get introduce we

And really ESAB we're subcontinent. how about so good positioning we that all feel in in all,

around side. and gas that's question acquisitions, on both pulled we Your funnel the control a actually have side FABTECH

in that comes way one XXXX. part But ones out it's So could predict of first. which our the sort there there early to tough several are of come

going thoughts to so that we're us And the both. is for extend

you in to gas to from million do side had the and of Investor remember and business wanted million about our FABTECH we acquisitions control. $XXX get do in about If Day, $XXX we of

our some could today we on the strong until on My time the us could you've take and be side, gas our both the businesses earlier cultivation front are out doing side looking FABTECH good make seen the of that to done control the really is and progress pipeline, the at But we're team on it FABTECH side, the that really us quality about the business. thoughts what acquisition and feeling that XXXX finish is of sides. on

Bryan Blair

full... industrial time you're obviously, industrial particularly stand the question. Understood. your heavy X-part your of completing then this to North I equipment where case? second, And team's refresh. what's the you Very America, terms And point. through late at on multiyear the the line And helpful applications, fruit refreshing that in believe now? color. do One, bearing focus Is guess fully in portfolio, I

Shyam Kambeyanda

Yes.

want the view on we sort I be to clearer had that this. -- think I of

probably think is the refresh better to big already that models and and want way introduce continually on our product done, changes good we in at to improvements have but the marketplace. innovate to and look we I line it's products a the

are And want to a so there get few that we done.

probably I our think you engine-driven the one were FABTECH, saw of you at if welder. things

looking quarter. been into would I also battery-driven more We product done want on the build to XXXX front Renegade and second think Warrior the absolutely in kind line. And off quarter we and on in that that and for other VOLT. the also plan more product third battery of to second get product an us the has first the side be creating us successful the expect range lines We're driven at with what to of We robotics product. Edge. for out And introduce more one is widening one, of the extraordinarily products possibly

Kevin Johnson

of positive about thing. if We could little performance one about done gas and last but on the sort piece specialty volume the Guys, well. We of medical I talked business innovation of our talked say, business, that I'd really that just side. control the price particular side on and very there, has our equation highlight

and quarter, So But is we're momentum for the and you how pleased questions. with your into again, 'XX. expectations our gas really for fourth thank it's control performing the taking

Operator

the And conclude that does session. question-and-answer

back comments. for So I Mark will it Mark? over now closing to hand Barbalato

Mark Barbalato

you talking forward we to Thank quarter. you look next for joining us today, again and to

Operator

ladies you disconnect. And for all now day, today's may great Thank and everyone. you call. Have and that gentlemen, concludes a joining,

ESAB (ESAB) 29 Oct 242024 Q3 Earnings call transcript