Equipment Sales Growth
Q: How is equipment sales growth, especially in North America?
A: ESAB reported double-digit growth in equipment sales, driven by strong performance in markets where they have a legacy presence like Europe, South America, and India. In North America, where their equipment share is smaller compared to consumables, they are seeing significant interest and making progress in gaining market share. Their equipment portfolio refresh and commercial excellence initiatives are contributing to this growth.

Pricing and Margins
Q: How are pricing and input costs affecting margins regionally?
A: ESAB maintained positive net pricing in both the Americas and EMEA, with price-cost remaining favorable despite pricing compression in EMEA and APAC. They have shown strong pricing discipline and expect to be margin positive in both segments.

EMEA Performance
Q: How is the business performing in Europe amid macro challenges?
A: Despite a subdued macro backdrop, ESAB's EMEA and APAC segment achieved positive volume growth. They are gaining market share and see opportunities for share of wallet penetration, with expectations for Europe to stay at similar levels and not worsen ,.

Integration and M&A Pipeline
Q: What's the progress on Linde Bangladesh integration and M&A plans?
A: Integration of Linde Bangladesh is progressing well, expanding capacity in South Asia and introducing equipment into the market. ESAB's M&A pipeline is the strongest it's ever been, with potential deals in both gas control and FABTECH, aiming to complete $300 million in FABTECH and $400 million in gas control acquisitions by 2027.

Americas Volume Outlook
Q: What is the outlook for volumes in the Americas?
A: ESAB expects slightly negative volumes in the Americas for the fourth quarter, with positive pricing offsetting volume declines. They attribute this to a sluggish market, with factors like weather impacts and slower DIY channel uptake, but see opportunities to gain share in equipment and gas control businesses.

Gas Control Business Growth
Q: What are the growth prospects for the gas control business in 2025?
A: ESAB anticipates the gas control business to grow at the higher end of low single digits in 2025. This business has a premier industrial margin profile, and any growth will contribute positively to ESAB's margins.

Guidance and Organic Growth
Q: How does the guidance reflect on expected organic growth?
A: ESAB expects flat organic growth in the fourth quarter, leading to approximately 0.5% organic growth for the full year. They project positive price and flat to negative volume in the Americas, and positive volume with negative price in EMEA and APAC.

Automation Sales
Q: How are automation sales performing?
A: Automation sales, including cobots, are seeing a good trajectory, with a strong order backlog and funnel. ESAB is partnering with integrators due to their workflow solutions, which is expected to drive growth in 2025.

Equipment Portfolio Refresh
Q: What's the status of the equipment portfolio refresh?
A: ESAB has completed the major refresh of their equipment portfolio but continues to innovate with new products like engine-driven welders, expanded robotics product lines, and battery-driven products. They plan to introduce more products in 2025 to strengthen their offering.