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    Neal Burk • UBS Group AG

    Neal Burk's questions to ESAB Corp (ESAB) leadership

    Neal Burk's questions to ESAB Corp (ESAB) leadership • Q2 2025

    Question

    Neal Burk questioned the implied step-down in incremental margins for the second half of the year, given the strong 37% incremental in Q2. He also asked for an update on new product introductions and their contribution to sales.

    Answer

    CFO Kevin Johnson explained that the change in incrementals is primarily due to the impact of FX, which drops through at a lower rate of around 10%. President & CEO Shyam Kambeyanda added that the company is on track for nearly 100 new product introductions this year, maintaining a vitality rate near 23-24%, and noted new acquisitions will significantly expand the portfolio.

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    Neal Burk's questions to ESAB Corp (ESAB) leadership • Q1 2025

    Question

    Neal Burk asked for a breakdown of the updated guidance, specifically how much of the revenue and EBITDA increase was attributable to the Bavaria acquisition.

    Answer

    CFO Kevin Johnson specified that the Bavaria acquisition accounts for approximately $20 million in revenue and $2.5 to $3.0 million in profit in the updated guidance. CEO Shyam Kambeyanda added that while Bavaria is expected to be EPS neutral in year one, he is confident in significant synergy opportunities that will make it accretive in year two, similar to the successful Sandvik integration.

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