ESAB Corporation (NYSE:ESAB) Q2 2022 Earnings Conference Call August 9, 2022 8:00 AM ET

Company Participants

Mark Barbalato - Vice President, Investor Relations

Shyam Kambeyanda - President & CEO

Kevin Johnson - CFO

Conference Call Participants

Nathan Jones - Stifel

Chris Dankert - Loop Capital

Operator

Good day. And thank you for standing by. Welcome to the ESAB Corporation Second Quarter 2020 Earnings Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions]

I will now turn the conference over to Mark Barbalato. Please go ahead.

Mark Barbalato

Thanks, operator. Welcome to the ESAB second quarter 2020 earnings call. This morning, I'm joined by our President and CEO, Shyam Kambeyanda; and CFO, Kevin Johnson. Please keep in mind that some of the statements we are making are forward-looking and are subject to risks, including those set forth in our SEC filings and today's earnings release. Actual results may differ, and we do not assume any obligation or intend to update these forward-looking statements, except as required by law. With respect to any non-GAAP financial measures mentioned during the call today, the accompanying reconciliation information related to those measures can be found in our earnings press release and today's slide presentation.

With that, I'd like to turn the call over to our President and CEO, Shyam Kambeyanda.

Shyam Kambeyanda

Thank you, Mark. Good morning, everyone, and thank you for joining us today. We continue to make strong progress on our long-term goals. Our second quarter was another step forward in that direction. Before talking about the results, let me take the time to recognize our teams across the globe and particularly our team in China, who worked extraordinarily hard during the quarter to ensure we serve our customers during the lockdown. We have the finest set of associates, and I'm proud and appreciative of what they do every day to make ESAB successful.

Turning to Slide 3. We had another record quarter for ESAB. We delivered record sales of $661 million with organic growth of 9%. Excluding Russia, organic growth was 13%. Our organic revenue growth reflected strong price realization, as our teams continue to execute our EBX process on pricing to offset inflation.

EBITDA was a record $111 million in the quarter, up 6% and we expanded EBITDA margins by 10 basis points to 16.7%, a solid achievement despite geopolitical, currency and inflation headwinds.

In addition, we remained on track to deliver our free cash flow guidance. Lastly, we successfully extended our $600 million term loan and fixed it at competitive rates. Kevin and our Treasurer, Mark Kurish, did a fantastic job. Kevin will share more details a little later.