ESAB - Earnings call transcript Q4 2024

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Operator

Thank you for standing by, and welcome to the ESAB Fourth Quarter 2024 Conference Call. [Operator Instructions] I'd now like to turn the call over to Mark Barbalato, Vice President of Investor Relations.

You may begin.

Mark Barbalato

Thanks, operator. Welcome to ESAB's Fourth Quarter 2020 Earnings Call. by Johnson. and joined and Shyam I'm Kevin CFO, morning, our CEO, President Kambeyanda; This in that to keep and are set Please mind in today's forward-looking are statements forth and making earnings we release. are SEC subject our risks, those some including filings of the Actual differ, law. by do and not or any obligation required results to except update as may intend these we assume forward-looking statements,

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

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

Shyam Kambeyanda

Thank you, all you Thank good Mark, morning, everyone. today. for joining us and

our serving tremendous challenging unyielding begin recognizing the purpose of our me values to by effort dedication us and a customers their in of to excel our enabled to all Let and environment. associates. commitment Their

teams Our and bar EBX, gain innovation to doing kaizens, driving to improvement, simplify pace to of business continuous sites processes the globally market continued share. sales the accelerating and manufacturing with our raise enhancing

fourth quarter record strong flow over in These our to cash fourth capped us reducing XXXX our bring profits, and closer year, achievements off XXX% free cyclicality delivering goals. delivering conversion. another business the The of quarter

solid to and from determined XXXX momentum is off to a on build start, our we are XXXX.

bar raising We to will stay focused deliver on mix, adding on EBX the financial innovation, acquisitions and shifting bolt-on our differentiated results.

continuous and margin and us organic challenging performance and of our EBITDA enabling our the of delivered discuss navigate to quarter. fourth financial expansion basis a for to execute EBX commitment margin to underscores record This quarter market. achieved Slide growth, to X and unwavering flat Turning points improvement, XX XX.X%. fourth a adjusted on We

markets. And ESAB has developed our today's context, offset advantage. markets in an This Let competitive softness me continue unmatched in to a high-growth footprint. significant is global reiterate,

customers capturing users attention In playbook exciting of new addition, are of and and alike. EBX introduction products the our commercial end the

One product quarter. quarter high was our the equipment in of the the welding rose which digits line, highlights of single

record are deploying to strong We flow a strategy. consistent generation, track cash have of execute compounder our which we

efforts As X ESAB cyclical, stronger business. the over cash of a is result flow a and margin our years, higher less last

our to X continued team discuss to highlights. Moving in and the commitments. margins came XXXX on EPS set our of the cash our our a our were flow Adjusted at EBITDA to and free record our about vision goals. shared Slide XXXX importantly, top and Adjusted The world new reaching above conversion are shaping our purpose Most passionate range, deliver execute at and well of the imagine XX.X%. of guidance. we teams

shape to to team's the how local Slide our reflect teams to enterprise our and I've the enthusiasm been life power we the would stories investing to imagine. This and of are communities. X, world passion our time, I our sharing of bringing that in teams you. our like for Turning share

team the students in technical the fabrication network passionate expanded about universities young further Europe of education of technology. of to who field Our our has are

our as our and future different ESAB to and tour, collar blue volunteer seminars We to our associates the end students best We are to techniques off the to time tour practices. distributors and Euro users. equipment welding organizing kicked and cities Ultimate traveling donating customers, highlight solutions teach and their safety products

trade XX high making The Blue schools days schools. over Collar Tour [indiscernible] is visiting and in XX particularly inspiring,

is believe emergency and initiative, power. talent of build to initiative nurtures an our who background. bring young key used We collaborated sustainability Project our GCE in for backup especially fuel regardless engaging ESAB, to recognize with our talent aims new it industry U.K. with team into which a are diversity our and as I to that OR, at to inclusivity cell Adding want system a team customer

the always, the humbled know and lives future our of positively their industry, and I'm shapes share volunteered I and passion it for our As have associates education time to proud of generations.

Moving X. to Slide

Over what We ESAB. the of in I power the like next differentiates and. would believe to slides, share X

our find of years our these portion on innovation strengthen of goals our flow the our for provides I've back-office expect out and savings. our conference we're business be slide growth. the with AI to Kaizen training we're like free growth. in margins, we what We're activities accelerate improvement you process. our an of mentioned before, better-than-market and take improve team continuous At deliver next We week, and to ways cost leadership achieve also cash next leadership a EBX innings tools with sharing of productivity middle to idea This journey. and in invest stronger over to savings X will focused to our new drive

these We expect generate in by million activities. to savings XXXX $XX through

Slide X. Moving to

technological light improve products, enhance products. mix future over with to our AI sales brand university We equipment invested to supporting improving programs automation have our funding are to initiatives. The initiatives leveraging $XXX include for growth customer equipment research and The just targeted excellence profitability. results portfolio, million expand started. These and recognition driving force our with and commercial marketing is exciting breakthroughs and turning in to getting drive experience, flywheel innovative we're new our

the discuss continuation of to X Slide compounder journey. to Moving our

EPS year important acquisitions at deals you accretive is later and to a these our us acquisitions, Tuesday. we and It fantastic with me that and of share proprietary, will note deal first all were our added that consumables allowing Bavaria, expands announce date. X Bavaria X. signed these portfolio, pay we we more XXXX, multiple XXXX, of global in to During on let a are competitive

$XX ability Both in our had Bangladesh of Sul acquisitions visit accretive a of are opportunity a In world. ahead nestled This the around and revenue our Brazil, in our QX, These state. Sul Grande into the million gem asset to businesses Cacia Sager. to mountains line in of shifts I do the extends Sumic about integrating spoken find product to Americas. business and higher do automation, the light before plan. growth mix in equipment higher-margin acquisitions demonstrate We've Linde Rio

have the to I've top-tier businesses. highlights our point we pursue, the and the ensure to Colombia, Indian subcontinent made, financial to and allowing our And our in great commitment identify, these back to lastly, discipline Coming integrate acquisitions goals. acquire slide us strategic and Brazil, both talent meet

U.S. and for XXX a Slide organic about basis headwind from to X, Turning XXX of sales of FX reflected and a growth basis due talking our metrics financial flat specifically quarter. to the M&A points growth, Total points welding of reflects continues excellence during quarter. This product the and dollar. pleased performance fourth and the updated commercial which our automation gain standard momentum. portfolio strong channel's equipment acceptance to initiative, We were our with the

by improved the implementation reaching points XX by EBITDA of XX.X%, of year-over-year, Adjusted record initiatives. quarter fourth successful basis a EBX driven

XXX Turning during strong performance our of to the focusing quarter added Americas. price points, XX, points, basis in headwinds. XXX Organic the offset by Slide by FX helping basis performance sales acquisitions on declined points, basis XXX offset

we quarter, is on great the a the and to start ESAB. closed off business with SUMEC, During

EBITDA points improved record basis reaching of XXX Adjusted year-over-year, XX.X%. a quarter fourth

Middle Slide XXX teams margins XX, at Total EBITDA in Europe, points sales East basis another Asia. Moving and were strong and from XX.X%. increased performance our to

XXX Linde and teams and it note, growth. XXX by markets, gains and Kevin to basis basis acquisition During volume equipment added drive points share positive high-growth On to quarter, mix. Bangladesh for continue strength increased points performed over Slide improve in that we our me let well the of The in experienced as our XX. hand

Kevin Johnson

morning. million. Good achieved Shyam. cash Thanks, flow This year, record another free we of $XXX

X.Xx. projects deployment in of initiated our [indiscernible] continued the better spanning With our flow cash million exceeding than terrific the XXX%, our well bolt-on conversion execute crude acquisitions X Shyam attained our ending discussed down positioned and gained free flow, in cash expected, strong system we This with by that business supported leverage to year also net on performance earlier. We the sheet advantages compounder we and pay balance AI journey. are $XXX meant the from EBX debt cash included XXXX. under

our X% positive with Slide anticipate of We to volume. growth and now XXXX organic Moving we to provide X% guidance. both price #XX,

the by which half guidance not X.X will its will updated close. the be offset acquisition, upon points a stronger expect due FX around reflect in approximately points year. to The which of benefit from particularly does X.X be first headwind Bavaria a the U.S. dollar, We of of M&A,

the is seasonality, the of slide. in first the half. year, the anticipate This throughout flat both be detailed segments. will breakdown on an quarterly our half growth Regarding improvement includes pricing We the with the that in the second organic year positive in expected

the in market improving we through due to volumes Americas progress We and some favorable year-over-year the comparisons as more sequentially improvement. foresee year

throughout the positive India our we volume Middle high-growth and continued particularly in markets, Additionally, strength growth to in APAC rest expect the and segment EMEA low in mid-single-digit East, of Asia, resulting year. in

the adjusted XX million the million, during focused and products $XX the increase savings on investment a about EBX points basis million reduction productivity, million and coming offset project approximately $XX reflecting $XXX year margin generate between for gas of We We $XXX midpoint. restructuring, by control initiatives cost EBITDA at welding in from of AI. growth back-office equipment, new aim to and initiatives

Interest expense is expected of $XX the to $XX million range to million. be within

in midpoint adjusted at rate XX of tax basis improvement the an our forecast points. we Additionally, around

strategy. support guidance focus sheet maintaining robust an approximately to and flow Finally, XXX% performance strong is our as conversion to continue cash a flow increasingly cash we on balance compounding our

on Slide up. wrap XX Let me hand Shyam back to to

Shyam Kambeyanda

And strong another of execution. flow. to better continue EBX margins and than to to Thank up We're launched conversion. the fantastic another you, cash We XXXX. improving closed of EBX summarize, and power flow Kevin. higher achieve and was XXX cash leveraged We margins drive we products free to XXX% we year X new mix, a acquisitions. bolt-on start notch focus as strong take solid record XXXX EBITDA To over generated on to on off to intend our

towards is that we high-quality what focused We're Our goals. our full on acquisition will propel control. XXXX us funnel of help laser assets

all The to and We is shareholder for team the value. let's matter morning. us this environment. on the With have joining that, agility operator, long-term you execute what creating open focused business Thank no ability questions. line for the demonstrated

Operator

comes of Your Oppenheimer. the line from Instructions] [Operator Bryan from Blair first question

Bryan Blair

expected offsetting as certainly to in market a hear markets, be little terms early order of And -- well. and It'd XXXX, cycle. developed that's positive color obviously, been emerging in a more the through that on patterns has sluggishness that through activity notable 'XX, great outgrowth

call to Just or, curious any trends shift if start been it, in year? any the divergence new there's underlying

Shyam Kambeyanda

Yes.

and performance in think, our obviously, very first, of I our proud team XXXX.

view, the continues. in Americas towards past premier our that's think both And becoming and off to We stable and of start a I compounder month slightly gotten to continue actually rest January solid And the to in be Orders the was, world. start. the a our XXXX. of improving. my sort as in progress industrial in mentioned I a we're good script, have

it's So But been a that's good indication. Bryan. early,

I I happy kind think it's things of to watch to up. of where with sort that the we're end important say XXXX. But must start

Bryan Blair

color. the appreciate I

question, kind the deal would sort XXXX those you of were the that on assets? great. does can accretion And additional from of your in deals executed, any level offer 'XX what team setting then expect color And environment be a

Kevin Johnson

Yes, his have there closed, our environment. answer out part Bryan, I'll think Shyam EBITDA Shyam as the above terms in pointed around the or X And they're before script, mentioned the on expectations we've very percentage. at during But fleet deal that question as at well. the fleet let of average of I integrating deals

papers. expected seeing where white we In of ahead had prepared a fact, them little their when bit we had we're

Shyam Kambeyanda

did I terms last we for well robust The of year. have in as deal the robust funnel. signed encouraging, what on sets that a I up first I fact think X Tuesday our full very And the was we have, ended we -- We deals mentioned year. that

the I all but think sort of optimistic continue as be have to our are know, goal funnel against execute it we two would it. our But we to ability and about that that you kind takes of to pace. tangle

Operator

Your next Jefferies. question Boroditsky from Saree of comes line from the

Saree Boroditsky

the So about we market Can the optimism this ramp mentioned through talk conditions. Americas. as I also but your improving year? guidance in just easycomps, go improving you includes mean you

Shyam Kambeyanda

and us, prior for well. spoke So calls it a in couple things about I of as

quite distributor Our with the well, in line users. accepted and both end being is equipment channel

And business Americas. continues to a in the and continue we that due now program control shoots perform has a then in excellence as have our So We improving growth. QX goes well of stabilization to that's FABTECH within business equipment, That see of business our our aware gain of gas mix gas you to slightly within the towards see ESAB. as traction. commercial the some Americas see on focused we year green business, shifting conditions on. we a of our are gem control business off our

into we've And put guidance so those X XXXX. factors is for of our what sort

Saree Boroditsky

top Maybe looking of looking And color. as for this margin with XX I line for sticking appreciate expansion that you year, points limited you're growth the but maybe basis guidance. well.

about talk the expansion the of the just maybe expected drivers margin for year. So different

Shyam Kambeyanda

Yes. margin expansion DNA our the at in We've what's of our we've talked in culture and ESAB. improvement about and spirit continuous in

I look and some like opportunities, think that to there opportunities our I'd of the that reinvest in piece at and state cost we we to take important out cost out at that business. look

And so first looking introductions pricing, the you our this move look In year, to margin one when help we price. we're us that at the obviously levers margins at is new expansion value-based have, forward. product

floor. the and reduction shop continuous gains the to that there drive EBX, The drive like forward. analytics, improvement margins it and is second aspect data office back we that like new AI, to technologies expect using our piece sort of are third OpEx productivity within of And out is

for as has those so the of we X talk all the And expansion story us, midpoint in about it. XX, factors

Operator

Your question Baird. from of the comes next from Mig Dobre line

Mircea Dobre

Maybe continues gaining on break the of And context Equipment The are how business a of what share. sort understood gas then your your down assumptions versus give the about if bit way to gas organic you of growth us kind seems outlook, specifically. you maybe to going little business equipment think be comment, I'm can back curious to for well. pretty grow consumables. I your

X% pieces we midpoint. to moving of how in get the terms the understand us help So here

Shyam Kambeyanda

to automation see somewhere it about at the we Yes. on in flattish up, the is being the single-digit range The then consumables mid-single-digit piece. slightly equipment slight and you'd and growth, gas maybe to control year. look equipment And be make think low then way for higher

Mircea Dobre

from past in the I mean had me getting than sort that Okay. talked higher really from throughout outlook. out I'm have a guided. what end guess actually with market XXXX stood those a an If of Do outlook is a that's like for just kind where something pieces, together tough put was year I you've kind your of little looking at to I And end that that's I up about in moving thing of standpoint, getting bit in things the standpoint. seems It from as macro you choppy are and to wondering, your better calls. same we hope XXXX? And better? XXXX? sort that's X X I you essentially the baking perspective, environment the things Or of difficult was

Shyam Kambeyanda

Yes, Mig.

this good earlier, as I it's from the We've it of orders that think we don't of traction second stay the than think better how mentioned more being think XXXX, the mentioned a QX. year choppy. see positive moving quarter. We and the ended seen fourth lot But still said, kind to downward to earlier, sort slightly things I half. I goes we finished sort has I of first on than we where is we're off start the -- half but to a stabilizes environment

so all the probably our feel I uncertainty about guide. the all, I there's a of I out in you. confident way there. lot put the ended to And could it that But think way was call And best we

is be positive, and are that driving can't that will cash environment to at team drive assure control plan that gain continue grow surely ahead in us. also our uncertainty, there will share. very And it's that this some if the rest positivity. can margin, to confident if you we flow executing But We come of

Operator

question line from comes the from Jones Nathan Stifel. next Your of

Nathan Jones

America detail bit by I'll more a I probably split EMEA Obviously, it there's the on up APAC some North you in guess well. think regions little more Maybe maybe guidance. region. fair South the and I a of can on some difference off start and in as and

you growth color that provide the segments? in for up any 'XX expectations regions So your can on in the various make

Kevin Johnson

Yes.

it, at and between to markets. best way the I think is maybe the split look high-growth Nathan, developed

said markets. pockets a any seeing quite the year last our expectation and Middle is based in and Asia, are As markets, moment, Europe deterioration second ended during the But see what we we in improve of half growth East, very stay those we at seeing in developed seeing, the this in of on how strong the not we're script, consistent Southeast year. number to can markets are we Americas. expected North particularly still then my India, particularly But and good of very start things America, the the in with year, I

Nathan Jones

wouldn't the drove at the the would price that Or have have being related of I enough. that's price? price strength X see X%. in that did more that results U.S. kind that that on quarter increase. fourth I Was the to that I something pricing? dollar is question on inflation warranted Americas Fair guess value-based

Shyam Kambeyanda

value-based teams A pricing of margins No. there, price, a lot of job and into did regions holding new to and in was North I moving our both out introduce was But Nathan. inflation-based think pricing nice the it that America South some spot. as really good then sort we with a products

And side The the really improvement and XXX so on operating team. of that the did believe basis on very price year-over-year nice that, proud job, was We a side. solid. both team that points

Nathan Jones

positive that if you're just kind with potential 'XX, to to some new bit over low digit the than in at? quarter up of the pricing very in that means single of in little sounds very probably that maybe Is regions. the XXXX. in low that product I It you're carry we drove a better introductions follow price said looking pricing X%, see fourth that and the Americas good guess in volume, pricing -- in all getting at then. there mean, I you're positive you've And

Kevin Johnson

pointed of higher the a and we're that at in around business. we're point Americas, in the X I I mean, little moment on think so -- about you're price but price bit or right,

new we the we've been using as certainly, for. We're EBX is launch think products, more. something learning I value pricing

opportunity where XXXX them actually price bring But the feel that number. at confident positioned maybe there's with we go the a moment, than through better these guidance. to as out course, as better we Of products new we and bit we've do

Operator

Your Raso from the David next ISI. line of comes from question Evercore

David Raso

on on the you The a Americas? in can turning positive basis we the see be just clear year year-over-year guidance? Americas, volumes Do during

Kevin Johnson

In the see turning margins fourth quarter, David, we positive. the

Shyam Kambeyanda

Volume.

Kevin Johnson

yes. Volumes,

Sorry.

David Raso

The volumes.

And I'm how if for at context can you looking some Terrific. 'XX, just organically give for business organically Okay. 'XX? us that curious Europe around you're in

Kevin Johnson

Yes.

Our mid-single expectation to digits. organically is low

We steady we expect through fairly progress as year. growth the

David Raso

And the low decline... single that digit, a was

Shyam Kambeyanda

just think or your talking on you're all of of just question or all... America Europe. I rest Was Europe

David Raso

just Yes, Europe...

Kevin Johnson

Sorry, I was answering the...

Shyam Kambeyanda

was talking world. whole think I of the Yes, Kevin sort

So adding Europe. slightly muted volumes for

I strong a European think is way David, have business. position to the we really that,

Volumes Our our my team what to performance view, would muted, are continues Americas gain share, Europe, in been that but has strong. it's better than in I very submit the is and performance.

it So saw Americas but that than half, growth as in the second number slight volume you the the to in think better muted QX. in first moving of half, performance

David Raso

in one thing, not are keep explain example, that you which currencies the the Can on for the flat? drag correctly hurt too, Brazilian there's in I'm APAC. businesses, just Great. it getting and Americas dollar, no And currency it euro helpful and modeling to figure just the given out EMEA to I but trying that? just maybe the currency international is that of translation, appreciate for international reais,

Kevin Johnson

of currency, Euro negative the is a terms us. headwind, David, In for

the do APAC expect headwinds we and FX within business. So some EMEA

that we drag is out the of fact, currencies have. euro all our the In of biggest

David Raso

And quarters? I to the been last has X, Yes, APAC, no on of international was or sure out currency trying to Maybe I'm I'm I figure just out or for as just it's how last of forward, the neutral missing something was been -- was going I trying that... the why rupee shown figure just couple something. making EMEA, quarter the international, thinking neutral. just

Kevin Johnson

that most of the consequence be that in euro. things and really movements euro, a the the currency drives year-over-year division, is In the will the

David Raso

Yes.

Okay. And lastly...

Kevin Johnson

quite also rupee seeing pop at As due guidance, headwind to year-over-year of we the Indian large the are on one full year the up euro and we a currencies. look the as

it's a year headwind So of guidance. little causing a terms bit the in full of

David Raso

Or question the trying there's price a I'm just price? gains the What's a can't Americas. I in 'XX? having what versus the pricing going doing And bit I'm the to little price largely very And why Is for price a little guided to lastly, some your that of in why already feels where backlog? muted back you're further in now more just in book? anniversarying understand price making It -- you're just to away order been getting Is very assuming just understand you've year-over-year Or no stay it why understand on good conservative. sure it's pricing job the Americas. sort already in trying positive? posting?

Shyam Kambeyanda

Yes.

on think there's does, the think way what David. steel to that, moving in pieces I about depending there,

the I so So steel side least bit and think that on particular jump at our assumptions now pricing muted on is seen not side. have more it's we that consumables right a

equipment the the about very obviously, we side, confident On pricing. feel

to think things taking year. some I as slightly down the sort it's we'd so question, with steel we're answer we is And know, that of to way, that stays be of additional other in were to the as go pricing. assumptions move If there kind you through out at the where your

David Raso

impact, So if have contracts pretty I like it the the quickly ability steel to tariff a moved? on pass assume

Kevin Johnson

right. That's That's right.

Operator

of Your Zakaria next from question Tami from JPMorgan. comes line the

Tami Zakaria

to seems FX? of on year have or It understand million year-over-year. FX. be? if EBITDA of a headwind you you're is that this like headwind or thumb My would trying question of rule for $XX to modeling decremental margin expecting much FX I'm incremental first related How

Kevin Johnson

Yes.

we in regions know, where costs of As we have the lot operate. our you a

we of some element natural have hedge. do So

would positive on us, what decrement or movements for expect FX XX% typically, negative. So about it's we run

Tami Zakaria

it. Got

region you term region more you in helpful. geopolitical. have of And Okay. that begin? much Or exposure that a my Russia see other resolve, is do left? in any That's the the where and question near conflict not the is then rebuilding Should opportunity Ukraine,

Shyam Kambeyanda

Yes.

peace things plan, get was to in sustained there for first, we [indiscernible] it, our is numbers ESAB to think, are or I expect our forecast. and the piece but in that not would region. from were better we and benefit If a in reconstruction

Operator

comes Chris Dankert Your the Markets. next from question from Loop of line Capital

Christopher Dankert

clarification off I to things here. kick of guess, first off, just maybe a point

the walk, consumables. margin equipment didn't you the seems still tailwind continued there's highlight of mix the a assume is It gas of On benefit. like outgrowing, there. I would outgrowing control kind still mix

margin part So walk? is that a would mix, if in the that be included of Is that point the could you just on finer pricing? Maybe kind put of helpful? little

Shyam Kambeyanda

about the you you Chris? we Are finished 'XX? talking guide, the are talking Or XXXX about how QX

Christopher Dankert

on the Yes, sorry. guidance,

Kevin Johnson

Yes.

beneficial part some Chris. well on of as obviously, of additional efforts as a in office, value as as that one areas that as of the as to be equipment as back we're the becomes is improvements well focused So mix restructuring the our efficiency pricing the making business, we've Certainly, margin. well larger some

in it's mix. the definitely So

invest thing the the as today that has window that also allowing talked the in that's to envelope, creating I is a the to key continue we're on think fact call business Shyam well. back about us an

the So future. all we're those flowing continuing we're the in all because [indiscernible] not the through line to they're bottom of straight the generating for invest business to all of that activities, from

Shyam Kambeyanda

in future. our long the that that and taking to dividends cost we important, creating think that And we the importantly, that's Chris, shareholders. investing really term some are fact The out, ESAB. understand, I over headroom, but differentiates to And pays more think

Christopher Dankert

year break it second key there, my would here. you product could R&D? of I question Is great mean give maybe, a 'XX? couple maybe does if this great. the actually maybe that's color a additional out in the you be investment some Well, digital, that buckets for guys guess can I

Kevin Johnson

area We is that's we has -- We're to obviously, me of It's not office going I the AI, service, excellence a some Shyam, focus into the end opportunities projects do customer within initiatives we've business. and that. at think been just us ago commercial and assure us as been be several can got flight for well that since or the use you, but we year then so to AI of enable 'XX where there's big off for stages sauce back can the and And the for 'XX kicked at and secret that how a equipment we we on the automation making growth a area team. to to that, the across on our different And in share that call, XXXX of got moment share associated continue a are activities back strong broader that about Yes. area. sure this in in with all talking as which equipment. looking to our we're make welding maximize drive we continuing year an that of in important invest sure we've of XXXX. at number coming to amazing the again we've focus And we'll welding

Shyam Kambeyanda

Yes.

American imagine, team In said. targeted we're really team. and share. commercial able what side, finding nice gain have you South has were Kevin if on what back European that some to it, as to regions, go job add buyers. with can equipment to we're strategies we customers to as And those ESAB customers, just And think our the done our so I is a

excellence the side. So commercial happy really about

the that aspect AI is And also other it that a design of development. in finding and we're can large play role

we've so investing. been And

look breakthrough will investment portfolio to as that was mention other reshape of the future. we did technologies for The that kind with Kevin our universities

particular So there's X really on aspects front. that

Operator

Your next from Dobre Mig of the line comes Baird. from question

Mircea Dobre

follow-up. very quick Just a

more this little you talk bit goal comment this. I'm to where X manufacturing reduce X, footprint have can outlined over you things. the on Slide about on EBX, So And by X years, wondering next XX% you a I'm if curious

you should net are of shifting into footprint about or more the what's production like making structure? sort terms manufacturing your of kind we of efficiency what reducing it certain And know? changes else that geographies, of anything And First, cost here? is effect in the

Shyam Kambeyanda

Yes.

optimization. that manufacturing acquisitions. The of and both side doing think of and left Sort bolt-on the and slide, we acquire we office on of some we're the best about about what tuck-in on of the footprint the kind is back improvement should it right, benefits in to that way talk

thesis on most that of pick it you Our you've accretive business, premise and got margins. is a up

efficient into You're able sites, more become result, line. to ESAB a and manufacturing more as to tuck them the drive bottom

the no piece different. particular that so assumption And on is

have usually underway got detail but and I about to that assured, facilities, you, far well We've and of EBX that you are answer on a talk about other often footprint? actions along communicate optimization do. them question rest much don't these short calls. on is more And some the do I we I in legacy get think and particular in to some we wanted slide how in what But terms is as do

We to do actually. plenty have

In we strong year but have same fact, we're that the way we done XXXX, a would done we'll XXXX. feel with more. submit when could I'm I sure in had

just more our acquire make about to we've we so of take continue gives a what we of as acquired efficient. you of that and footprint And think this them sort we companies, will be think and we companies the the view opportunities how some and

Operator

closing call our Mark And will question-and-answer to over session. that remarks. concludes I back turn the now Barbalato for

Mark Barbalato

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

Operator

your participation. call. conference today's Thank concludes for This you

You may now disconnect.

ESAB (ESAB) 20 Feb 252024 Q4 Earnings call transcript