ESAB Corporation (NYSE:ESAB) Q3 2024 Earnings Conference Call October 29, 2024 8:00 AM ET

Company Participants

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

Conference Call Participants

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

Operator

Thank you for standing by. At this time, I would like to welcome everyone to today's ESAB Corporation Third Quarter 2024 Earnings Call. 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]

I would now like to turn the call over to Mark Barbalato, Vice President of Investor Relations. Mark, please go ahead.

Mark Barbalato

Thanks, operator. Welcome to ESAB's third 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 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 and good morning, everyone. Thank you all for joining us today. We're pleased to report another strong quarter marked by positive volume growth, record third quarter margins and robust cash flow in a challenging market. Our differentiated geographic footprint, award-winning products, commercial excellence initiatives and strategic acquisitions continue to drive our organic growth.

Let's move to Slide 3 to discuss specific highlights for the quarter. First, I want to recognize our teams globally for their relentless commitment to our strategy and EBX. Strong demand in high-growth markets such as India, other parts of Asia and the Middle East have helped counterbalance slower markets. Our portfolio of light and heavy industrial equipment has continued to deliver with equipment sales increasing in the low double digits this quarter. These new products continue to gain momentum across our channels. Additionally, we're seeing steady growth in our gas control equipment business with positive volume and price. Adjusted EBITDA margins expanded 130 basis points to reach a record 19.6% for the third quarter. And year-to-date, we have generated a record $215 million in adjusted free cash flow, enabling us to execute our compounded strategy.