ESAB : First Quarter 2026 Earnings Presentation

Published: 2026-05-07 07:09:08 ET ESAB

Published on 05/07/2026 at 07:09 am EDT

First Quarter 2026

May 7, 2026

1Q 2026 Highlights

Record 1Q total core sales & aEBITDA

Compounder strategy accelerating

EWM & Aktiv delivering double-digit growth

Sales1

Total Core Growth1

(1)% Core Organic Growth1

Limited disruption from conflict

Eddyfi expected to close mid-year

aEBITDA1 Year-over-Year

Reiterating full year outlook

aEBITDA Margin1 Year-over-Year

Significant Progress Towards Our Long-Term Goals

Full medical gas portfolio with DeltaP and Aktiv

Best-in-class equipment with EWM acquisition

Leadership in proprietary filler metals with Bavaria

Extending workflow solution with Eddyfi

40+ Ai projects to drive future growth & productivity

Increasing Cash Flow

Reshaping ESAB For Faster Growth And Higher Margins

38%

28%

th Profile s Margin %

10%

44%

18%

52%2

17%

2016

Sales

62%

26%

1Q 20261

Sales

56%

2027E1,2

Sales

48%

27%

LSD

LSD-MSD

MSD

Filler Metal

Equipment

~35%

~38%

40%+

Gas Equipment

Grow

Gros

Momentum Building For ESAB Equipment

Ruffian 270 - engine driven welder

Weld & power equipment at the same time with no spikes

Full scale rugged mobility with intuitive user interface

Multiple auxiliary outlets increase flexibility

Aristo Edge - manual & robotics

Manages arc 10-20x faster than traditional equipment

Minimal post weld clean up

Maximum platform flexibility with manual & robotic capability

Ruffian 270

Engine Driven Welder

Aristo Edge

Manual & Advanced Robotics

Wins:

Secured preferred status with yellow goods OEM with Aristo

Gaining share with Ruffian engine driven welder

Strong demand in channel for Ruffian

Opening New Markets With EWM Equipment

Orbital TIG welding

Increased wafer manufacturing capacity

Additive manufacturing solution

Best in class solution with EWM

Filler

Metals

EWM

Feeder

Power Source

EWM Titan - React

Robotic

Torches

Robot

(OEM Agnostic)

Major wins:

Global gas distributor in the U.S.

Defense applications

Nuclear applications

Leading engineering & construction company

German OEMs manufacturing in U.S.

Eddyfi Extends ESAB's Unrivaled Workflow Solution

Filler

Metals

Welding & Gas

Equipment

In-Process

Monitoring

Post Weld

Inspection

Structural Integrity & Monitoring

Sales Growth

Gross Margin

LSD 35%+

HSD 65%+

ESAB Enables Moon Mission

Friction-stir welding (FSW) joins 7 aluminum alloy structures, forming airtight bond

Delivers exceptional strength & lightweight

Superior bonds created through (FSW) helping to safeguard crew

Solving the most difficult problems for our customers

Unique workflow solution capability

With Eddyfi, ESAB extends workflow into inspection & monitoring

ESAB 1Q 2026 Financial Summary

($ Millions)

1Q 20261,2

1Q 20251

YoY1

Total Sales

$715

$647

aEBITA

$125

$119

aEBITA Margin %

17.5%

18.4%

(90) bps

aEBITDA

$136

$128

aEBITDA Margin %

19.0%

19.8%

(80) bps

1Q Highlights: 1Q 2026 Sales Growth1:

Organic

(1)%

Price

Volume

(3)%

FX Translation

Acquisitions

Total

10%

U.S. up MSD

EU & India performed as expected; Limited ME disruption

Booked automation orders to ship in H2

Compounder strategy accelerating with acquisitions ahead of plan

EWM & ME conflict added 40bps & 30bps of margin headwind

ESAB 1Q 2026 Americas

($ Millions)

1Q 2026

1Q 2025

YoY

Total Sales

$288

$281

aEBITDA

$56

$55

aEBITDA Margin %

19.4%

Flat

1Q Highlights: 1Q 2026 Sales Growth1:

Organic

(1)%

Price

Volume

(4)%

FX Translation

Acquisitions

Total

North America ex. Mexico organic growth up MSD

Mexico stable

Welding equipment up HSD

EBXai transformation projects on schedule

ESAB 1Q 2026 EMEA and APAC

($ Millions)

1Q 20261,2

1Q 20251

YoY

Total Sales

$426

$366

aEBITDA

$80

$73

aEBITDA Margin %

18.7%

20.0%

(130) bps

1Q Highlights: 1Q 2026 Sales Growth1,2:

Organic

(1)%

Price

Volume

(1)%

FX Translation

Acquisitions

12%

Total

16%

Gaining share

Acquisitions outperforming; EWM integration on-track

EU & India resilient

Middle East seeing limited disruption

EWM 70bps headwind; 50bps drag from conflict

Strong Local Presence In The Middle-East Benefiting ESAB

Kuwait

Persian Gulf

Saudi

Arabia

Jeddah

Active

Middle East represents ~7% of sales1

Strait of Hormuz

UAE

Oman

Limited disruption

Re-routing supplies to Jeddah and Salalah Implemented surcharges to offset higher costs

Salalah

Not active

Proprietary & Confidential ESAB Corporation

13 1

Proprietary & Confidential

Financial Flexibility To Execute Compounder Strategy

Adjusted Free Cash Flow ($M)

+30%

$40

1Q25 1Q26

Cash flow reflects:

Strong working capital management

EBX process improvements in-order-to-cash

Expect strong full year cash flow generation

1Q 26 net leverage of 1.9x

~3.0x net leverage by year end

Reiterating 2026 Outlook

Sales

Organic Growth %

aEBITDA

aEPS

(Excludes Eddyfi)

$2.85-$2.95B

2.0%-4.0%

$575-$595M

$5.70-$5.90

Reiterating full year outlook2

Sales Outlook assumes:

M&A benefit ~4%

FX tailwind 0-1%

Reiterating full year aEBITDA outlook

Sales seasonality: 2Q ~25.0%, 3Q ~25.0% & 4Q ~25.5%

~90%

aFCF Conversion %

Summary

Focused on execution; Continuing to shift mix to equipment

Acquisitions outperforming

Eddyfi expected to close mid-year

EBXai focused on growth and productivity

Reiterating full year guidance

Shared

Success

Help Each

Other Win

Always

Improving

Purposeful

Leadership

Every Voice

Valued

Appendix

ESAB ° ESAB CORPORATION

Proprietary & Confidential ESAB Corporation

Full Year 2026 Guidance

ESAB

2026 Guidance1,2

Sales ($B)

2.85 - 2.95

Total Growth

6.0% - 9.0%

Core Organic Growth

2.0% - 4.0%

0.0% - 1.0%

M&A

~4.0%

aEBITDA ($M)

575 - 595

Interest Expense & Other ($M)

80 - 85

Adjusted Tax Rate

20% - 21%

NCI ($M)

aEPS ($)

5.70- 5.90

ESAB Total Diluted Shares (M)

~61.6

1 Core: 2 Excluding Eddyfi

Proprietary & Confidential ESAB Corporation

Non-GAAP Reconciliation EBITA - 1Q '26 Total & Segments1

Three Months Ended April 3, 2026

($ Millions)

Americas

% of NSV

EMEA & APAC

% of NSV

Total ESAB

% of NSV

Net Sales

$ 288.4

$ 457.2

$ 745.6

Net Sales attributable to Russia

31.1

Core Net Sales

$ 288.4

$ 426.1

$ 714.5

Operating Income

$ 35.2

12.2 %

$ 55.3

12.1 %

$ 90.5

12.1 %

Restructuring and other related charges

9.0

1.2

10.2

Acquisition-amortization and other related charges

7.7

15.1

22.8

Adjusted EBITA

$ 51.8

18.0 %

$ 71.6

15.7 %

$ 123.4

16.6 %

Adjusted EBITA attributable to Russia

(1.4)

Core Adjusted EBITA

$ 51.8

18.0 %

$ 73.0

17.1 %

$ 124.8

17.5 %

Non-GAAP Reconciliation EBITDA - 1Q '26 Total &Segments1

Three Months Ended April 3, 2026

($ Millions)

Americas

% of

NSV

EMEA & APAC

% of

NSV

Total ESAB

% of

NSV

Net Sales

$ 288.4

$ 457.2

$ 745.6

Net Sales attributable to Russia

31.1

Core Net Sales

$ 288.4

$ 426.1

$ 714.5

Operating Income

$ 35.2

12.2 %

$ 55.3

12.1 %

$ 90.5

12.1 %

Restructuring and other related charges

9.0

1.2

10.2

Acquisition-amortization and other related charges

7.7

15.1

22.8

Adjusted EBITA

$ 51.8

18.0 %

$ 71.6

15.7 %

$ 123.4

16.6 %

Depreciation and other amortization

4.2

8.9

13.1

Adjusted EBITDA

$ 56.0

19.4 %

$ 80.6

17.6 %

$ 136.6

18.3 %

Adjusted EBITDA attributable to Russia

0.7

Core Adjusted EBITDA

$ 56.0

19.4 %

$ 79.9

18.8 %

$ 135.9

19.0 %

Disclaimer

ESAB Corporation published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 11:08 UTC.