The following is a summary of the ESAB Corporation (ESAB) Q1 2024 Earnings Call Transcript:

Financial Performance:

• ESAB reported Q1 record sales of $656 million, achieved through 200 basis points of organic sales growth.

• Adjusted EBITDA rose by 140 basis points to a record 18.8%.

• ESAB has increased its 2024 adjusted EBITDA guidance to $500 million-$520 million and increased its adjusted EPS guidance by $0.10 to $4.75-$4.95.

• Both Americas and European, Asian, and Middle Eastern regions showed sales growth and expansion in adjusted EBITDA margins.

Business Progress:

• ESAB is moving towards its goal of becoming a less cyclical industrial compounder with higher margins and stronger cash flow.

• Growth was driven by its equipment and automation product lines, particularly the welding Cobot which saw triple-digit growth YoY.

• Geographical expansion, particularly in India and the Middle East, is proceeding effectively.

• The acquisition of Sager and the upcoming acquisition of SUMIG aim to extend ESAB's portfolio to higher margin products and less cyclical end markets.

• ESAB anticipates $10 million in revenue from Sager and $30 million from SUMIG, with these acquisitions expected to be EBITDA and EPS accretive in their first year.

• New product launches are planned, including potential game-changers, and the expansion of the InduSuite offering.

More details: ESAB Corp IR

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