Q3 2025 ESAB Corp Earnings Call Transcript
Key Points
- ESAB Corp (ESAB) reported an 8% increase in total sales to $687 million, with organic sales rising by 2% year over year.
- The acquisition of EWM was completed ahead of schedule, contributing to growth and adding high-level talent and technology to ESAB Corp (ESAB).
- Adjusted EBITDA increased by 7% to $133 million, reflecting strong execution on margin and investment in sales and AI initiatives.
- The company raised its full-year guidance, expecting total sales of $2.71 billion to $2.73 billion and adjusted EBITDA of $535 million to $540 million.
- ESAB Corp (ESAB) achieved over 100% free cash flow conversion, enhancing its financial flexibility for future M&A activities.
- Adjusted EBITDA margin was reduced by 20 basis points due to the impact of the EWM acquisition.
- The Americas segment experienced a 100 basis point decline in EBITDA margin, partly due to tariff impacts and ongoing investments.
- There was a slight drag on price/cost dynamics in the Americas, particularly due to late-quarter copper tariffs.
- Organic sales growth in the Americas was impacted by deferred automation shipments and challenges in the Mexican market.
- The integration of EWM requires significant investment in SG&A structure to achieve expected synergies and growth.
Thank you for standing by, and welcome to the ESAB third-quarter 2025 earnings conference call. (Operator Instructions).
I'd now like to turn the call over to Mark Barbalato, Vice President of Investor Relations. You may begin.
Thanks, operator. Welcome to ESAB's third-quarter 2025 earnings call. This morning, I'm joined by our President and CEO, Shyam Kambeyanda; and CFO, Kevin Johnson.
Please keep in mind that some of the statements we are making are forward-looking and are subject to risks, including those set forth in today's SEC filings and today's earnings release. Actual results may differ, and we do not assume any obligation or intend to update these forward-looking statements, except as required by law. With respect to any non-GAAP financial measures mentioned during the call today, the accompanying reconciliation information related to those measures can be found in our earnings press release and today's slide presentation.
With that, I'd like to turn the call over to our
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