Slides
Page 1
Second Quarter 2026 EARNINGS CONFERENCE CALL August 6 , 2026 ESAB CORPORATION Wh + 0 GCe ROBBI 010 VACVAC VACIAD VACD VACPAC C NCING 2024
Page 2
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation Forward-Looking Statements & Non-GAAP Disclaimer 2 Forward-Looking Statements This presentation includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning the Company’s plans, goals, objectives, outlook, expectations, and intentions, including statements that are not historical or current fact. Forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including general risks and uncertainties such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health concerns, natural disasters or other disruptions of expected business conditions. Factors that could cause the Company’s results to differ materially from current expectations include, but are not limited to, risks related to the impact of the war in Ukraine and the conflict in the Middle East and the resulting escalating geopolitical tensions; impact of supply chain disruptions; the impact of creditworthiness and financial viability of customers; impact of inflationary pressures, tariff and trade policies, foreign exchange fluctuations and commodity prices; other impacts on the Company’s business and ability to execute business continuity plans; and the other factors detailed in the Company’s Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, as filed with the U.S. Securities and Exchange Commission (“SEC”). In addition, these statements are based on assumptions that are subject to change. This document speaks only as of the date hereof. The Company disclaims any duty to update the information herein. Non-GAAP Financial Measures This document includes a presentation of adjusted EBITA, adjusted EBITA margin, adjusted EBITDA, adjusted EBITDA margin, organic sales growth, and adjusted free cash flow and other financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), which ESAB uses to measure the performance of its business. The non-GAAP financial measures provided herein are adjusted for certain items as presented in the Appendix and should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies. ESAB presents some of these non-GAAP financial measures including and excluding Russia due to economic and political volatility caused by the Russia and Ukraine conflict, which results in enhanced investor interest in this information. Core non- GAAP financial measures excludes Russia for the three and six months ended July 3, 2026, and July 4, 2025. Management believes that these non-GAAP financial measures provide useful information to investors by offering additional ways of viewing ESAB’s results, and represent the following: ▪ Organic sales growth (presented with and without Russia or “Core”) excludes the impact of acquisitions and foreign exchange rate fluctuations; ▪ Adjusted EBITA (presented with and without Russia or “Core”) represents net income excluding the effect of Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value charges on acquired inventories, Pension settlement loss, compensation expense related to the Performance Option Awards, income tax expense, and interest expense and other, net; ▪ Adjusted EBITDA (presented with and without Russia or “Core”) represents Adjusted EBITA excluding the effect of depreciation and other amortization; ▪ Adjusted EBITA and adjusted EBITDA margins are subject to the same adjustments as adjusted EBITA and adjusted EBITDA, respectively; ▪ Adjusted net income from continuing operations (presented with and without Russia or “Core”) represents net income from continuing operations attributable to ESAB Corporation excluding Restructuring and other related charges, acquisition due diligence and transaction expenses, amortization of intangibles and fair value charges on acquired inventories, compensation expense related to the Performance Option Awards, and Pension settlement loss. Adjusted net income includes the tax effect of non-GAAP adjusting items at applicable tax rates; ▪ Adjusted net income per share from continuing operations (presented with and without Russia or “Core”) is a calculation of adjusted net income from continuing operations over the weighted-average diluted shares outstanding. We present the earnings per share-related non-GAAP measures on a basis that assumes the MCPS had already been converted as of the beginning of the applicable period (and accordingly also exclude the dividends accrued on the MCPS during such period, since such dividends would no longer be paid once the MCPS convert). We believe this presentation provides useful information to investors by helping them understand what the net impact will be on ESAB’s earnings per share - related measures once the MCPS convert into ESAB’s common stock. ▪ Adjusted free cash flow represents cash flows from operating activities excluding cash outflows related to discontinued operations and acquisition related due diligence and transaction payments, less purchases of property, plant and equipment net of proceeds from sale of certain properties. ▪ Cash conversion represents Adjusted free cash flow divided by Core Adjusted net income from continuing operations. Management also believes that presenting these measures allows investors to view its performance using the same measures that ESAB uses in evaluating our financial and business performance and trends. See the Appendix to this presentation for a reconciliation of these non-GAAP measures to their closest equivalent GAAP measures. Refer to information about the non-GAAP measures contained in this presentation. Additional information regarding non-GAAP measures can be found in our most recent Form 10-K and our Form 8-K furnished as of the date of this presentation with the SEC, which are available at www.ESABcorporation.com.
Page 3
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation 2Q 2026 Highlights 1 Core – See non-GAAP reconciliation tables in appendix3 Return to organic growth driven by solid execution and strong equipment demand ▪ Record 2Q total core sales & aEBITDA ▪ Organic growth in both segments ▪ Robust NAM demand, resilient ROW ▪ Margins impacted by: ▪ Transitory price/cost neutrality ▪ Increased logistics and commodity costs ▪ Equipment growth investments ▪ Closed Eddyfi ahead of schedule $766M Sales1 +13% Total Core Growth1 +2.5% Core Organic Growth1 $150M aEBITDA1 Year-over-Year +8% 19.5% aEBITDA Margin1 Year-over-Year -90bps 2Q 2026 results:
Page 4
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation Eddyfi Powers the Next Phase of ESAB's Workflow A strategic asset accelerating ESAB’s journey to a premier industrial compounder ▪ A global leader in inspection & monitoring technologies for mission-critical applications ▪ High-growth applications in attractive end-markets ~$270M / HSD 2026E FY Sales / Growth ~65% 2026E Adj. Gross Margin ~30% 2026E aEBITDA Margin ~55% Recurring Sales Electromagnetic Testing Ultrasonic Testing Automated Inspection Eddyfi Overview Sales By Region1,2 Best-In-Class Technology1,2 43% of Sales 29% of Sales 28% of Sales #1 #1 #1 37% 30% 17% 16% NAM EUR Asia Other 30% 24%19% 12% 15% Nuclear Infrastructure Energy Infrastructure Aero & Defense Other Premier Financial Profile1 Sales By End Market1,2 4 1 Company estimates; 2 As of 2025.
Page 5
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation ESAB + Eddyfi Creates Unrivaled Workflow Solution 5 Unrivaled workflow solution to drive growth and margin expansion Faster Growth & Higher Margin Preparation Wire Joining Process Weld Real-time Assessment Monitor Data-Driven Insights Analyze Full Traceability Trace Data Analytics
Page 6
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation 54% 27% 16% 3% Shifting Mix to Faster Growth and Higher Margins 1 Core; 2 Pro-forma; 3 1 month of Eddyfi 6 Accelerating journey to becoming a premier industrial 62% 28% 10% 2016 Sales 2Q 2026 1,3 Sales Pro-Forma 2026 1,2 Sales + + Filler Metal Equipment Gas Equipment Eddyfi 38% 46% 50% 2 Growth Profile Gross Margin % LSD ~35% LSD-MSD ~39% MSD ~40%+ 50% 26% 16% 8% + +
Page 7
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation Reshaping ESAB – Faster Growing and Higher Margin 7 Building a foundation to create long-term shareholder value Recent Acquisitions Growth Profile Gross Margin % HSD Accretive MSD Accretive MSD Accretive MSD Accretive LSD Inline M&IGas ControlFab Equipment FM Eddyfi enhances ESAB‘s workflow solution Aktiv and DeltaP expands Gas Control offering EWM positions ESAB as a leader in equipment technology Bavaria extends ESAB‘s flux product line M&I = Measurement & Inspection
Page 8
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation ESAB 2Q 2026 Financial Summary 1 Core; see non-GAAP reconciliation tables in appendix; Rounding8 Delivering another strong quarter of execution 2Q Highlights: 2Q 2026 Sales Growth 1 : ▪ Strong execution in dynamic environment ▪ Automation & Equipment up double-digits ▪ Transitory price/cost neutrality ▪ Investing in commercial initiatives ($ Millions) 2Q 2026 1 2Q 2025 1 YoY 1 T otal Sales $766 $679 13% aEBITA $138 $129 7% aEBITA Margin % 18.0% 19.0% (100) bps aEBITDA $150 $138 8% aEBITDA Margin % 19.5% 20.4% (90) bps Organic 2.5% Price 2% Volume 0.5% FX Translation 2% Acquisitions 8% Total 13%
Page 9
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation Eddyfi Impact on 2Q 2026 Earnings 1 Mandatory Convertible Preferred Stock (MCPS) converts to common equity in three years – For aEPS purposes we assume conversion; 2 Rounding9 Strong foundation sets ESAB up for long-term sales growth and margin expansion ESAB 2Q 2026 aEPS With Eddyfi $1.41 $1.33 Core aEPS Before Eddyfi ($0.13) Pre-fund & Int-Exp (March ’26) ($0.03) MCPS & Common (June ’26) (1) $0.07 Eddyfi (June ’26) 2Q 26 Core aEPS2 Ex Eddyfi, core adjusted EPS was $1.41 Exceptional market timing; 5.625% bond yield MCPS pay 6.5% dividend & converts to common in year 3 1.25M common issued to fund Eddyfi
Page 10
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation ESAB 2Q 2026 Americas 1 Rounding10 EWM and Ruffian generating excitement in the channel ▪ Mid-teens organic growth in NAM on equipment strength ▪ Mexico stabilizing and SAM softer as expected ▪ Gas equipment and Automation up double-digits ▪ Improving productivity with EBXai 2Q Highlights: 2Q 2026 Sales Growth 1 : Organic FX Translation Total 5% 3% 12% 3% 2% Acquisitions 3% Price Volume ($ Millions) 2Q 2026 2Q 2025 YoY T otal Sales $316 $283 12% aEBITDA $64 $57 13% aEBITDA Margin % 20.3% 20.1% 20 bps
Page 11
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation ESAB 2Q 2026 EMEA and APAC 1 1 Core; see non-GAAP reconciliation tables in appendix; Rounding11 Positioned for long-term growth and margin expansion ▪ Organic growth despite geopolitical headwinds ▪ Transitory price/ Cost neutrality ▪ Increased cost of logistics & Code materials ▪ EWM integration remains on track ▪ Continue to invest in growth 2Q Highlights: 2Q 2026 Sales Growth 1 : ($ Millions) 2Q 2026 1 2Q 2025 1 YoY T otal Sales $450 $396 14% aEBITDA $86 $82 5% aEBITDA Margin % 19.0% 20.6% (160) bps Organic 1% Price 2% Volume (1)% FX Translation 1% Acquisitions 12% Total 14%
Page 12
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation Focused on Deleveraging 12 EBXai focused on working capital improvement H1 2026 Cash Performance Adjusted Free Cash Flow ($M) H1 cash reflects investment in ESAB ▪ Restructuring & integration sets foundation for future ▪ Additional equipment inventory ▪ Leveraging EBXai to structurally improve W/C turns Prioritizing the balance sheet ▪ Focused organic growth ▪ Deleveraging ▪ Accretive tuck-in & bolt-on acquisitions $81 $131 $22 $9 $19 H1 25 FCF H1 26 FCF Restructuring Integration Working Cap H1 26 FCF Before Items $77
Page 13
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation13 Sales Organic Growth % aEPS 2 aEBITDA 2 aFCF Conversion % 2 ▪ Outlook includes: ▪ 7 months of Eddyfi ▪ Sales Outlook assumes: ▪ M&A benefit ~9.0% ▪ FX tailwind 0.0% - 1.0% ▪ Updating full year aEBITDA outlook ▪ Sales seasonality: ▪ 3Q ~26.0% & 4Q ~26.0% Core Financial Metrics Updating 2026 Outlook Focused on delivering another year of strong results $2.85–$2.95B 2.0%–4.0% $5.70–$5.90 $575–$595M ~90% Prior FY 26 Outlook 1 (Excludes Eddyfi) 1 Core ; 2 Excluding restructuring and integration related expenses $3.00–$3.10B 2.0%–4.0% $5.40–$5.50 $615–$625M ~90% Updated FY 26 Outlook 1 (Includes Eddyfi) $2.70B Flat $5.27 $540M 76% FY 25 Actuals
Page 14
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation Summary 14 Focused on organic growth, margin expansion and deleveraging ■ Record 2Q total core sales & aEBITDA ■ Positive organic growth in both segments ■ Strong growth funnel unlocking opportunities ■ Go to Gemba ■ Reinvigorating EBXai: driving out cost, sharpening focus Shared Success Help Each Other Win Always Improving Purposeful Leadership Every Voice Valued
Page 15
Appendix 15
Page 16
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation Full Y ear 2026 Guidance 1 Core; 2 Rounding; 3Eddyfi financing: Incremental interest expense; 4 Eddyfi financing: MCPS (1.25 - 1.45 million shares) & Common equity (~1.25 million shares)16 ESAB Prior 2026 Guidance – Ex Eddyfi1 Updated 2026 Guidance – Includes Eddyfi1 Sales ($B) 2.85 – 2.95 3.00 – 3.102 Total Growth 6.0% – 9.0% 11.0% – 14.0%2 Core Organic Growth 2.0% – 4.0% 2.0% – 4.0% FX 0.0% – 1.0% 0.0% – 1.0% M&A ~4.0% ~9.0% aEBITDA ($M) 575 – 595 615 – 625 Interest Expense & Other ($M) 80 – 85 125 – 1283 Adjusted Tax Rate 20% – 21% ~21.0% NCI ($M) ~9 ~8 aEPS ($) 5.70 – 5.90 5.40 – 5.503,4 ESAB Total Adjusted Diluted Shares (M) ~61.6 H2 64.44 & FY ~63.34 Reiterating full year guidance
Page 17
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation Non-GAAP Reconciliation EBITA – 2Q '26 T otal & Segments1 M a y 2 9 , 2 0 2 4 1 Numbers may not sum due to rounding Three Months Ended July 3, 2026 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV Net Sales $ 315.9 $ 491.7 $ 807.6 Net Sales attributable to Russia — 41.4 41.4 Core Net Sales $ 315.9 $ 450.4 $ 766.3 Operating Income $ 22.5 7.1 % $ 56.2 11.4 % $ 78.7 9.7 % Restructuring and other related charges 18.3 — 18.3 Acquisition-amortization and other related charges 18.2 23.1 41.3 Performance option awards compensation 0.3 0.4 $ 0.7 Adjusted EBITA $ 59.3 18.8 % $ 79.7 16.2 % $ 139.0 17.2 % Adjusted EBITA attributable to Russia — 1.4 1.4 Core Adjusted EBITA $ 59.3 18.8 % $ 78.3 17.4 % $ 137.6 18.0 % 17
Page 18
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation Non-GAAP Reconciliation EBITDA – 2Q '26T otal &Segments1 M a y 2 9 , 2 0 2 4 1 Numbers may not sum due to rounding Three Months Ended July 3, 2026 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV Net Sales $ 315.9 $ 491.7 $ 807.6 Net Sales attributable to Russia — 41.4 41.4 Core Net Sales $ 315.9 $ 450.4 $ 766.3 Operating Income $ 22.5 7.1 % $ 56.2 11.4 % $ 78.7 9.7 % Restructuring and other related charges 18.3 — 18.3 Acquisition-amortization and other related charges 18.2 23.1 41.3 Performance option awards compensation 0.3 0.4 0.7 Adjusted EBITA $ 59.3 18.8 % $ 79.7 16.2 % $ 139.0 17.2 % Depreciation and other amortization 4.7 7.6 12.3 Adjusted EBITDA $ 64.0 20.3 % $ 87.3 17.8 % $ 151.4 18.7 % Adjusted EBITDA attributable to Russia — 1.8 1.8 Core Adjusted EBITDA $ 64.0 20.3 % $ 85.5 19.0 % $ 149.6 19.5 % 18
Page 19
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation Non-GAAP Reconciliation EBITA – 2Q '25 T otal & Segments1 M a y 2 9 , 2 0 2 4 1 Numbers may not sum due to rounding Three Months Ended July 4, 2025 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV Net Sales $ 282.7 $ 432.9 $ 715.6 Net Sales attributable to Russia — 37.1 37.1 Core Net Sales $ 282.7 $ 395.7 $ 678.5 Operating Income $ 42.4 15.0 % $ 66.7 15.4 % $ 109.1 15.2 % Restructuring and other related charges 0.5 0.9 1.4 Acquisition-amortization and other related charges 10.0 11.5 21.6 Adjusted EBITA $ 52.9 18.7 % $ 79.1 18.3 % $ 132.1 18.5 % Adjusted EBITA attributable to Russia — 3.0 3.0 Core Adjusted EBITA $ 52.9 18.7 % $ 76.1 19.2 % $ 129.1 19.0 % 19
Page 20
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation M a y 2 9 , 2 0 2 4 1 Numbers may not sum due to rounding Three Months Ended July 4, 2025 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV Net Sales $ 282.7 $ 432.9 $ 715.6 Net Sales attributable to Russia — 37.1 37.1 Core Net Sales $ 282.7 $ 395.7 $ 678.5 Operating Income $ 42.4 15.0 % $ 66.7 15.4 % $ 109.1 15.2 % Restructuring and other related charges 0.5 0.9 1.4 Acquisition-amortization and other related charges 10.0 11.5 21.6 Adjusted EBITA $ 52.9 18.7 % $ 79.1 18.3 % $ 132.1 18.5 % Depreciation and other amortization 3.8 7.6 11.4 Adjusted EBITDA $ 56.8 20.1 % $ 86.7 20.0 % $ 143.5 20.1 % Adjusted EBITDA attributable to Russia — 5.0 5.0 Core Adjusted EBITDA $ 56.8 20.1 % $ 81.7 20.6 % $ 138.5 20.4 % Non-GAAP Reconciliation EBITDA – 2Q '25 T otal & Segments1 20
Page 21
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation M a y 2 9 , 2 0 2 4 Non-GAAP Reconciliation – Net Income to Adjusted EPS1 Three months ended ($ Millions, except Per Share Data) July 3, 2026 July 4, 2025 Net income from continuing operations $ 36.4 $ 69.8 Income attributable to noncontrolling interest, net of taxes (1.6) (1.2) Declared dividends on the MCPS (1.4) — Net income from continuing operations attributable to ESAB Corporation $ 33.4 $ 68.6 Restructuring and other related charges - pretax 18.3 1.4 Acquisition-amortization and other related charges - pretax 41.3 21.6 Performance option awards compensation 0.7 — Tax effect on above items (14.8) (5.3) Discrete tax adjustments 3.8 — Declared dividends on the MCPS assuming "if-converted" method 1.4 — Adjusted net income from continuing operations $ 84.1 $ 86.3 Adjusted net loss (income) from continuing operations attributable to Russia (1.3) (2.3) Core adjusted net income from continuing operations $ 82.8 $ 84.0 Net income per share - diluted from continuing operations $ 0.54 $ 1.12 Restructuring and other related charges - pretax 0.29 0.02 Acquisition - amortization and other related charges - pretax 0.66 0.35 Performance option awards compensation 0.01 — Tax effect on above items (0.24) (0.09) Discrete tax adjustments 0.06 — Declared dividends on the MCPS assuming "if-converted" method 0.02 — Adjusted net income per share - diluted from continuing operations $ 1.35 $ 1.40 Adjusted net loss (income) per share - diluted from continuing operations attributable to Russia (0.02) (0.04) Core adjusted net income per share – diluted from continuing operations $ 1.33 $ 1.36 21 1 Numbers may not sum due to rounding
Page 22
Proprietary & Confidential ESAB Corporation Proprietary & Confidential ESAB Corporation M a y 2 9 , 2 0 2 4 Non-GAAP Reconciliation – Adj. Free Cash Flow 1 Three months ended Six months ended ($ Millions) July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025 Net cash provided by operating activities $ 33.4 $ 46.6 $ 80.3 $ 82.0 Purchases of property, plant and equipment (17.7) (9.2) (31.4) (16.5) Payments related to discontinued operations 7.5 4.9 11.8 7.2 Payments for acquisition-related costs 18.2 4.0 20.2 4.0 Adjusted free cash flow $ 41.4 $ 46.4 $ 80.9 $ 76.8 22 1 Numbers may not sum due to rounding