ESAB (ESAB) 29 Feb 242023 Q4 Earnings call transcript

Good morning. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the ESAB Corporation Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Thank you. I will now turn the conference over to Mark Barbalato, Vice President of Investor Relations. your begin may you conference. Mark,

Johnson. to Thanks, Call. Shyam Quarter Kevin Earnings Fourth morning, operator. Kambeyanda; I'm CFO, CEO, Welcome This and joined XXXX President ESAB's by and our

required these not some intend With Actual Please keep Shyam are statements, call during and slide measures today's and earnings results forward-looking filings forth law. may to over subject are and the related accompanying to respect set do by we risks, our financial those to our and and are the those measures differ, the reconciliation presentation. With our forward-looking including of President any that, assume mentioned to in as can in or making statements to Kambeyanda. the today's update in any release non-GAAP that be I'd obligation found mind call CEO, SEC except earnings like today, press we turn information to release.

Thank morning. you you, and the Mark. Good fourth joining year in high and has quarter we excellent ESAB us XXXX, finished note. the thank progress for all a made on morning, everyone, and this

work always, our dedicated hard to let moment to and thank commitment me our their for As associates take goals. a

improve power EBX the demonstrates flow. performance XXXX Our generate to margins drive strong of growth, and cash free

our that needs. their our to in setting XXX% XX% During Investor highlight sales, targets challenging announced and and solve December, innovative portfolio free our flow of a conversion. The focused us compounder Equipment billion solutions cash Gas most also past businesses, products our within we in XXXX strategic Day and power enterprise solutions a customers to allowing are workflow this margin industrial vision to and FABTECH our that showcased premier become $X EBITDA become helping event the our generates

the and other our equipment Control. enhance industrial from lineup FABTECH we of made both extraordinary Some Renegade progress portfolio, light Gas Bolt. We game-changing the XXXX our completed introduced have was highlights in the to and

for this kind, the the it Popular on the March now you the for is a battery-powered welder, best tool of news hit its the first in of product, Edition Our as Mechanics in was item marketplace. An interesting trade. featured

significant We heavy industrial of on line products. also made our progress

of automation launch the ESAB on as The combined product with Warrior new This for digital focus specifically sales. created edge the addresses Warrior our robotics With a Edge. growing market. our our equipment solutions, has and competitive we Edge,

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for Control X and benefiting Gas tailwinds team also Additionally, not that's onshoring, us our investments positioning and improvements. And bolt-on agricultural related growth successfully from macro in acquisitions, all. years. continued infrastructure the coming energy integrated infrastructure transition, is upgrades, lab medical to ESAB

improving on initiated to toolkit. by AI-driven initial focused the are few results. our have added We operations our targeted We activities EBX and a encouraged

XXXX, enter leadership our our acquisitions EBX up taking bolt-on just we we As around another team wrapped meeting growth, and rallied and up notch.

bolt-on within to EBX at use make proven cash a our and acquisitions simple margins stronger. use have then and growth, them We flow business, EBX formula and base ESAB: our to drive improve accretive expand add

to quarter, a let's higher-margin cyclical, turn about ESAB a result, Slide the fourth To and As enterprise. we're talk X. shaping specifically less into faster-growing

another Another forward strong quarter our and in the direction goals. step of XXXX

expanded India points, continue to grew end XX.X%, sales resilient in to Middle particular adjusted margins we quarter earlier, fourth mentioned by markets with EBITDA be East. and delivered strength record basis As record Total a results. XXX and our the

to continue growth Gas encouraged of Control be the Cobot's performance business. our by and We

growth digits. Our business to the and our Cobot Gas low grew quarter, Control triple-digit in experienced business double close

was continue retail. activity All by to This fabrication regions softness offset transition infrastructure benefit our partially from projects. investment and in solid. remained energy General

Our profitable by product growth our and product cash in strides more mix. reflected are basis simplification XXX the EBITDA EBX towards year-over-year. flow positive The making a of adjusted improving teams margins is line and impact free tools improving points XX%

reflecting Middle $X.XX more X a metrics. on East to standout year and Moving the with sharing record our bit Sales revenue basis reached points, rose core regions. performances our India and by billion, full Slide the financial and and on XXX a in

by $XXX we importantly, consistently improved EBITDA the full to demonstrating XXX ability and deliver on our adjusted record year. Adjusted commitments. to basis guidance, million exceeded sales, most for our a points EBITDA And EPS

Our free a cash $XXX again record and to free flow improvement. quarter. performance flow cash financial the full year with in million commitment discipline underscores reached This ESAB's fourth continuous

sales Quarterly million. Moving record year-over-year of discuss million record in X $XXX XXX fourth high a to EBITDA was hit reach Slide expanding basis performance quarter points detail. Adjusted XX.X%. to to $XXX all-time a more an our

our PAC that out positive to positive quarter, the the we momentum. In million As continue EMEA in volume did benefit business million and first about quarter shifted Americas $X business in of promotional our return $X FX XXXX. its expected, to saw about from and we activities and favorability Asia

sales organic performance adding did acquisitions points, points. We Turning price quarter. small Americas, another XXX XXX basis strong XXX the FX growth the adding Slide of X. grew basis and have a points basis basis XXX in In points, headwind of by to volume

December was distributors on our chance to new their fueling the distributors remarkable. are new to distribution, product are investments in robotics ESAB on Several opportunities. I focused especially new our Renegade on The and reaction automation with Bolt in growth had Our and a line with significant products. line, few interact complements our solutions, of with a products Cobots industrial thrilled [indiscernible] and our our light welder. our engine-driven and along focused

overall improvement in perform business the margin. Gas contributed EBITDA to continues Control XXX Gas to and points well FABTECH region. Both our basis in adjusted Additionally, an Control

X. Slide to Turning

Our Acquisitions points points. EMEA contributed grew XXX with points. total growth. continue basis perform to basis by as and XXX sales XXX APAC basis regions expected, Volume growing of

team and India continue Middle the execute market. the Our East in Europe, to well in

margins XXX positive Kevin X. a over simplification underscoring for are margins. On Our key win and welding points continues adjusted to strides has note, made and to selling equipment To XX.X, to add, expansion region hand driving projects effective ability solution. fully Control drive of region's The great lab our line in in team adaptive growth our hospital the it to and projects. utilization Gas our autonomous the EBITDA that Slide up product expand me EBX record let basis line and

performance a We and EBX performance strong than Thanks, compounding to opportunities capital expected, XXXX to ended with leverage us X.X system. This leverage and working record better drive to year delever cash free continue EBX improvement enabled we in net to even than to versus XXXX, Shyam. to to less quarter see turn was we to business journey. delivered our support of stronger the a flow AI Key use another turns. In continue we successfully our strong of XX% flow, million. as our improved deploy $XXX up X.X cash

Total headwind guidance. which point to our to includes Turning organic XXXX FX X.X% X.X%. growth provide a on We growth X.X% to sales of Slide X. of of X.X%,

quarter We the slide. XXXX on by have also provided our seasonality

with million. This of million in expect be incrementals benefits unadjusted investments adjusted the an $XXX XXs guided million, restructuring $XX to year-on-year tax in of $XX million includes rate the expense adjusted EBITDA to commercialization guidance million guidance $XXX to EPS and support of low XX% We our business to Interest guidance $XX to of $XX million. [indiscernible] $X.XX additional to is our Overall, innovative $X.XX. to new XX% of and equipment $XX portfolio. between around million

which X up. more $XX appendix. With is million assist me that, we onetime included capital flow greater making than detailed back guidance modeling, Finally, on conversion in investments support we're Slide around includes wrap to future slide have to our let with a growth. XX%, cash hand guide to Shyam XX the To of

closer We debt In with putting reducing premier our acquisitions. exit propelling focused our cash Thank and products, are and new our customers use, flow as goal strategic XXXX our our our to a of sales adding robust momentum on teams enthusiasm you, strategy, executing a bolt-on within conclusion, compounder. industrial ignite good Kevin. becoming us innovative to team. We're

positioning with the notch is pipeline it's to favorably quarter. strongest occurring presence taking a M&A Our been, augment ever us kaizen every organic the up event growth. EBX We're

XXXX deliver operator, associates the time in continue is started an objectives. guided be Day, and open to We're We're focus at we value to is off our a getting Investor to that, and ESAB a team good questions. significant ESAB. poised start on lines in for This XXXX, it's as let's to our just delivering customers, for great year I realize to and said as and positioning our the have shareholders. With investor

question first from comes Your Tami Zakaria the of from Instructions] line [Operator JPMorgan.

Excellent margin performance the in quarter.

running along The implied call XXXX to it you that of topic. of -- is in-flight you're and question in EBITDA have would ahead in first get that your seems my target. incremental to XXXX incremental the would seems imply require mid-XX% meaning to your EBITDA it, guide target like the be margin XX% to So an margin high about, XX%,

any going should down over timeline was think the on thoughts the originally get front-end it to incremental target time please? easy margin assuming loaded? towards we Or conservative that be later slows to and it So So to? the incremental about was always pretty adopted margin, as XXXX and

to hear good thank Tami. you. first, from Always you, Well,

on quarter, our of world. volume us business, the continue margin America have in peak team I and a great rest thrilled finally we and side both the we growth the saw how the side that think really the performed, the did in of North of has proud the on momentum out positive

our like in finished how your question, did year. out answer the we and To the we performance quarter really margin fourth

you as that look As headwinds we've window, can your What you, you always is or at margin growth said the business many growth confident then earlier, team that set is tailwinds XXXX. and with as organic very we've our look at got come our and really funnel. augmenting know, acquisitions. I targets things there's mentioned on out in opportunities strong delivering inorganic within focusing a we've that the we

So the continue chance but growth in organic to that continue. within we really we opportunities. time, keep margin feel of pace the and a rest how both on expansion line our accelerate the see to XXXX we the have

where right And we're So think we're need bottom ship think we some with momentum. I forward to the I driving line, be.

Got it. to hear. Great

like understand full half. quarter. expected year my in in of wanted question is, second just second fourth lower So seems the be the much than then what's acceleration terms sales. implied And I modestly the first growth to It is the is quarter the than heavier the half first outlook for to

in accelerate expectation driving like to this gives you of the that slower half? what a really then back is what's growth And So of start? visibility going

Yes.

mentioned I to also North first as we're was in expect in start we a a I think and that severe, bit quarter. in we've falls have the we Easter of good the Scandinavian had But region I think of the land first did squarely then February, to this also off to Year completely well. quarter New weather Chinese the Europe year America

there's outside call, what the a versus bit the control of is last things of, I'd related just that year So headwind year. this business

And the so of shapes it way And kind adjusted you're today. kind out number. that days some rest first of plus the see into the then kick year quarter seeing we holidays of

our acquire include that to and to would intent, obviously positive upside make in doesn't it what Now and that both that are acquisitions obviously, accretive margin. is that to period, businesses be we any growth is

of both that in we positive sort momentum. expect continue So to ways,

Wonderful. weeks. you couple of in See a

Tami. Thanks, Thanks.

Your Mig from comes question Dobre Baird. of line next from the

where margins that guide about north the can incrementals and that's baked XX%, Yes. the and for ask performance I XXXX. I on was margin, for into appreciate guiding frankly are end in strong, high of right, the QX also above to 'XX. want quite But of discussion you're

that? QX? I'm kind see of to should margin should about think about of instance, relative how Why, wondering sort a know So Anything seasonality we to for step here? we in down

Yes.

our almost that set Gas EBX First, happy goal with sort very performed great teams really that how and regions across working are all into and are how all gives confidence of of Control us were is their regions, up of ultimate across both we've for XXXX. our standard work towards which sort daily we people how our what as also and inculcating

favorability and across few guys FX I to us mentioned, activities the to continue $XX all million I as invest then did equipment geographies a other bit million about some to and good million that marketing additional we quarter. drive we of out of in pushed a of had quarter. the couple come $X of sales Kevin And mention we're of going briefly investment. fourth about mentioned a at in little of sort with

is factors should into in activities the take a the the We probably some it And we next can business are believe of that will take that the as turning fundamentally then as that guide and we Mig. at go back now those look some the over look so invest you ESAB, reshape us at and of years, dollars X that flywheel with year. at absolutely next the

differences your Appreciate should the at versus volume? pricing how X.X% color your apologize, between how I you a And do when segments? maybe but reported And thinking we're we missed if I to here can on don't know you X.X%, any finer I looking X about to put organic you're point there. guidance -- foresee this,

to want you do Kevin? take, Yes,

Yes.

and each QX, we're through each So vigilant with as be volume by price. quarters, obviously, the of going Mig, the past, through the us year. And positive progress is improvement price. on as single-digit we're seen consistent expecting to in positive from to in quarter year-over-year continue The Mig, low price pretty we volume pretty found you've

are in to continue all price We'll We the quarter. [indiscernible] watch move as inflation first have going and that to required.

price segments, our versus of terms to be with positive the volumes -- In expect in we segments EMEA both stronger is expectation APAC. on and segment Americas the that both

stronger factor price What's why that? driving ask Americas? I Can in the

the do in of have that's portion we South So a business America.

price activities of to opportunity we out continues products, North on the our a market, to Mig, did particularly there. America price to year, element an that team better coming last PLS is an bringing there the continue the in additional of value, maximize we're drive place. continues new So some to [indiscernible] And we to see that

line Raso from next Your ISI. from David comes of Evercore question the

pleasant price in the in Americas. commentary, the the fourth surprise quarter on the a up thought Picking price I was

maybe is give expect can Middle took 'XX [indiscernible] in Is you you Europe, So then if kind that us January And also of, where the up international, largely there is you and can we you as in have in Americas you sense is whatever down at India. or a price incremental on but just some a that the any negative price square pricing simply positive coming in in East so from? of price carryover?

Yes.

to voice, hear as thanks, Great David. good So -- your always.

talked in see we gone But some QX Europe, differently we've in were what things. that in of something at additional fourth as Kevin being different couple of before. additional regions. moving quarter. But prices with strategies some that sort thing prices, about some this do have looked a we different some basis lap margins especially So X to that We for our see out was see price did focused us we net in in ESAB being said, the Europe some we done allowed steel Europe first America about the a happy pricing we did we've that mentioned, in on have XXX regions. When said said, pricing We pricing. first the if but deflationary And steel you -- number. in points. Europe pricing that is And remember the quarter our both in really in is did we very activities about expansion quarter, in of

and I answers positive we the very we forward, fourth as question. on what the in the deflation marketplace, see we move was when line to in and how we be hope want that performed net So that we do price quarter. evident with the

up. quarter, mean, be But flattish positive the heard Is obviously, to making price, positive one drill looking currency to negative volume. year. must to front-end That's a trying the offset positive for loaded. It square price, the by I just volume, not I positive just more that Basically, fair. sure, first is for that the... you're but I'm first that down And for quarter. volume

the are other think I the And mentioned with weather, the we of right. -- holidays piece That's bit we first landing. that noise there's that a where is quarter right. That's with Yes. piece other the in

comes impact days a got quarter, well David. as you you've the for So that at first

you Okay. used you sure But you that? I'm meant it And not may explain how whatever give us be. M&A the about full what can an pipeline, this on or lastly, And some maybe M&A you're referenced framework by or word you robust thinking year?

improve Yes. few the in and We've geographic businesses Very product the line chance level businesses keeping over gaps. goal strategy X% accretive, and range, that in to a our similar positioning past, are acquisitions, that that got get filling and driving to bolt-on strategic our have debt our line. a acquiring out

a result, to our include of that none guidance that acquisitions guided does as so that to a quite be anything would pleasant we've And and that good any today. happen feeling upside we're not could

also And is Medical little size to trying I'm magnitude. size? I a mean a at guess just or sense was size more hinting [indiscernible] bit. I of is this get therapy this Ohio

scenario one size Yes, of Ohio. size probably couple is the what there there therapy there's in that in couple a say I'd a in one of kind a and of

next question Stifel. the of Jones from comes Your Nathan line from

next A how the incremental $XX drive give will I mean Kevin growth in to on some CapEx those of and Maybe are more investments expenditures couple you're and over us some you years? mentioned you few of a questions investment growth mentioned to of could color on just couple the they support additional making what support growth. million of XXXX.

Yes.

marketing, and Kevin hand So I'll over it to let me question capital. take the on the for

around products the into we products, know, as to create marketing several these launched products advertising structures these and the to continue we've the globe our to is see marketing intent particular you begin new marketplace. on So for side, and as

to is encouraging sell have. sales it be sell begin of for teams and that as able to we learn to them different competently aspect product mix plans a incentive sort of other and they the line our The

at last, nothing can begin bit on marketing long how we'll I really you with ESAB. differently that hope not much and term special but share augmenting a ourselves to something for looking strategy are the by And piece separate least, our now, the third but to we quarter, we at and create share particular

talking the want bit you about And a that we're on dollars do that's color to of so there. Kevin, capital? give

Yes.

On areas the X main X that there's sort we're of focused capital on. investments, in

is what markets. AI, seeing to building Obviously, into the on markets. and is we're Shyam both infrastructure the us around emerging investment, we're you of doing is we're continued that second putting And some the first additional seeing. And The me. our you're we're some from some good support what growth to us the allow investment talk heard script, just probably growth

So into over we additional years. investments next we're are putting growth into investment IT the other also in expecting some support and that to some ESAB number the AI just of

least XXXX whether undertook Great. in stand might on on in volume to run growth? any PLS was on at whether know or not headwind headwind ask I XXXX. in a first guess that's remaining you second guys the kind of focusing us Americas. PLS, that the the I I company with the where one, is or you just you you that somewhat an and how that update through us give about of that's behind think Can --

Yes.

happy really executed how we're teams. is First, by our PLS with being

to refine serve our our We well. product continue line, customers opportunity SKUs to our see to

is in the being and PLS of are big looking to we're PLS where the look coming a lens PLS, us the around at in now bit line. But of the focus we done PLS, that focused at but growth now us. But us, on sort PLS a we number lifts as some little now think positive with well. chunk said, well I growth do can as product other you more well behind some said, regions, our we've out of heavy at could of region that it as we Europe more standard our refining a is in for net point as focused expect that a I Asia to work. being a yes, that growing and We're of tell for So continue

as driving our as growth product refined. as so get on our result, with And are customers teams focused to set of a making sure well line some continues

the Capital. from Dankert of Your next Chris Loop question from comes line

Just this kind stabilize be a Europe there. guess, maybe kind I of Or regions in on are expecting comments would specifically? the trends in How X and Are helpful. about and first China particular of the kind thinking kind to probably then expecting and just you at baked continued into we guidance half what's we rebound? level? of first off, about are slide thinking of international the those some in stabilization,

view Yes. our daily look performing of Yes, think regions. by those mentioned we also sales not this. across we've businesses in how seen there sort all Chris, I things rates. is and our stability a what I have may that is rate, of And We at are

said, year-over-year So are comparables nothing tighter. of being of is shifting sort downwards. sort That a little getting

has others And that also about Germanic as of stress, in amount from lot and been and for of strong, fact, a the And rest of it the momentum the to the a to we tell sort spaces of, that's with Europe for marketplace we've seems as -- holding sort made sort U.K. a seen I also and of the China, China. I'd if from that around in don't a that's is better creating the maybe we some okay, continues a to and government. in heard from troughs of seen in so Chinese sort feeling gain really a and have happening in peaks we're especially investment what a things, we've of invest out be LNG quarters stress people market. what positive sort for that comment and in play of top benefiting sort bit it. seeing earlier as apologize. is seeing aspects of transition performed I region But And as the tier energy that particular. commentary significant a other Middle are storage is continue U.K. result, stress if The few of of feel has but a around in we're Europe the that now. The East to and and share. On see obviously, are and continues of the space position in we seen the India, way you in come be than lot that myself, And you're repeating space quite to think China the our China. I'm the in in

That's guess on front really color. Any comment, consolidation any the to I update then great And that kind and year? of follow any of the up on of for kind manufacturing plans here. some

market Yes. few Kevin we a in And that and with projects that have or set projects schedule. I start our have on the year are on the move along them pocket. accelerate There we the depending where of we planned. goes,

otherwise, about million that's that, intent. absolutely, market. $XX our have our But in any accelerate guidance the see some in of So for issues we may we if and we that

refining Got anything edges around than so Got least... more dramatic, it. at the particularly

it lot make that's the a acquisitions, depends to then us do that also think allow it. consolidation, additional Yes, on some Yes. way about that to we of will bolt-on acquisitions,

Your next from Rob question the from of UBS. Jamieson comes line

on today. results Congrats of the

Rob. Thanks, Thanks.

about Gas up, Control talk mean performance. the business. Just digits. low to a double I wanted mean, I it little solid bit was

might a worse the reminder And little But more bit there? what also, follow-up What you could maybe I expected? the than end a or talk wondering on split maybe about on a a be markets have in between saw was you that little if after. like little bit then what a equipment consumables? and you then better Just

Yes.

see significant of energy piece the on business, the Gas business. the growth. absolutely of double-digit we Where was you're So a growth on saw -- Control we amount low transition did we right,

energy energy, whether front. be Control anything Gas it business So a and our associated with in particular on gas nice that or markets, oil saw we uptick

continued Med terms of and of on with sort gases across investments then upgrades. momentum in And Specialty happening

Where headwind in those see really in a highlights did again Germany. So market the were was bit the there. we of

actually significant Control has Gas in a exposure. amount Europe German Our of business

everywhere some set And some that particular also have nice medical XXXX. And so for that But was we growth a on industrial spec saw opportunities side, nice obviously, the business. and growth. drag else up

do And you then business? -- embedded how about That's welding think core maybe and in the Control your guidance helpful. Gas between what's

out is Yes. the really to Control of our But guide. We've the that Gas not numbers separately split some sort side. off on in we're hot X what obviously about say talk them I'd coming

So in I XXXX. that at our more math a you be business do expect look well. then to averages muted you as bit can to And as the the FABTECH

Sure. about AI you all Perfect. some cash EBX, my sneak always this implementing flow. with Obviously, with there. on initiatives Kevin, I that's to subject in? you something And can X where and And this more your is favorite free talk started the I you're working initiatives what doing with know capital and of the

what help from kind on you side might share more us targeting the specifically to you support but growth any also to would of be with of margin? be kind curious able Just improve EBX

could Yes. tools opportunity that's has and We of that a the aspects. think as significant our well. it where production with think that I And been before we mining both be AI And data of asset. business where A planning side we've now focused, planning we've the AI. couple some mentioned used material in our past, with along

But miss Kevin, of sort enterprise. of these talk I do there? trends something sort we expect continue to are could emerging to reshape and in but nothing fundamentally an to lean looking help other some that technologies did We projects, about. enough at baked that's to

No.

are I'm lot that to at that cash back The area we generate office I there's it. Chris poised support take using got technology. (sic) and momentum more can focused a you of just the advantage think making happening I we how moment, sort is mean sure of on AI [ of and it. improved we're Robert flow ], probably

kind the it's year element that in at go is we curve decision to the learning curve going to and be because with to leader to but of an it a I be want as think learning several are is start, got have of and exciting up this gear area. that an projects we in we've this we So there want starting we on the made AI, be

comes next Your of the Mig Baird. line question Dobre from from

like I internally, first frame might on data I made? have the one share wondering might of whatever them. I when be is X way correct? at is think is progress that as indeed any optically a my I'm is wondering guess you is to which peers, have mean XXXX? your And you than industry to gains. your using look I'm there imply there about you better some would it here if looks if share extrapolated we to me, growth gain. be interpretation something

no that se There's that. Mig, of sort per Yes. clearly any of out to points data there, industry

I us, execution it's been the for mix think around shift.

the side, products I coming segments. of a on got industrial past think back we've mentioned in. done the that that in the growth getting think job we've thing equipment ESAB years, of has one on gas line primarily focusing And last really company. is couple even in our a our really consumables I nice we've in And then customers front been obviously equipment and our

We're us some just happens. of share right, about and with end the markets we're think is have you margin customers growth about thinks we're biggest if that best than we and for look what to on on opportunities our focused that that way faster just that So you focused provide solve are challenges. We growing it products those also than I others, do gain others. better think better ESAB all focused a mentioned at on customers' then how of

on I I results themselves. the as will a think to So we're process, begin show think focused team, the

the automation. in on of Understood. here my business Okay. And Maybe question this us final size XXXX. remind

business think Cobot and be in about embedded this talked the you 'XX guidance? about in what a might How growing lot. You

in quite the made We're Yes. that automation. about we've progress excited obviously

is For nicely. us, quite business as you our of and know, the business XX% about growing

We expect the growth year. for sort growth space a opportunity the automation double-digit to of continue in think We there's ESAB. next of

I a large big for around really that think not our focused workflow for conversion handling less I and will it chunks bit share here. material for through of business. But So like. profit that's richness as sort of mentioned the be looking volumes process. on But a We're looking before, drives the and we we're We're larger ESAB. looking

of customer I momentum. that tell are our other and excitement to the set around particular opportunities. obviously team XX% segment. our and we clearly our are the in Cobots, What can strong meeting, has on present solution selling At also about leadership our exists are teams close had seeing really momentum. is that talk piece opportunity within it the another The the We growth, the going way saw and about about we automation growth volumes you quarter team there's still low, the base, but and but

now have questions our call at remarks. turn further closing Mark I for to We queue no the time. this over will in back Barbalato

to today, you talking we you Thank joining to look for quarter. forward next us and

call. conference today's concludes now may disconnect. for This Thank you you participation, and your