ESAB Corporation (NYSE:ESAB) Q2 2024 Earnings Conference Call August 2, 2024 8:00 AM ET

Company Participants

Mark Barbalato - Vice President, Investor Relations
Shyam Kambeyanda - President & Chief Executive Officer
Kevin Johnson - Chief Financial Officer

Conference Call Participants

Mig Dobre - Baird
Nathan Jones - Stifel
Tami Zakaria - JPMorgan
David Raso - Evercore
Bryan Blair - Oppenheimer
Chris Dankert - Loop Capital

Operator

Thank you for standing by. My name is Amy, and I will be your conference operator today. At this time, I would like to welcome everyone to the ESAB Second Quarter 2024 Earnings Conference Call. Please note that all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

It is now my pleasure to turn the call over to Mark Barbalato, Vice President of Investor Relations. Please go ahead.

Mark Barbalato

Thanks, operator. Welcome to ESAB's second quarter 2024 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 intent 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, and good morning, everyone. Thank you all for joining us today.

We delivered another strong quarter, highlighted by positive organic revenue growth, while improving our product mix towards equipment. We utilized our EBX toolkit to achieve record margins and cash flow. As a result, lowering our net leverage ratio to 1.7x and we closed on another acquisition. It is important to highlight that we executed well and delivered strong results, benefiting from our high-growth markets exposure that was moderated by softness in developed markets. While I'm encouraged by our progress, we're far from satisfied. I'm confident that we'll continue to raise the bar, find new avenues for growth, expand our margins and improve cash flow.

Before diving into the numbers, just like last time, let me share the passion our team has towards our mission of shaping the world we imagine. Maybe some of you read The Wall Street Journal article last quarter where Gen-Z has been dubbed the Toolbelt Generation. Here on a more personal note, I have led ESAB for the last eight years, and I'm very proud of our team's time and resource contributions every day to train the next generation of welders. We see this as a way to engage and connect with the next generation.