[10-Q] Lincoln Electric Holdings Inc Quarterly Earnings Report
Lincoln Electric (LECO) Q2 2025 10-Q highlights:
- Net sales rose 6.6% YoY to $1.09 bn; H1 sales up 4.5% to $2.09 bn.
- Gross profit up 5.7% to $405.5 m; operating income surged 29% to $192.1 m on lower impairment costs.
- Net income jumped 41% YoY to $143.4 m; diluted EPS climbed 44.6% to $2.56.
- H1 operating cash flow improved 8.4% to $329.5 m; free cash flow absorbed $52.4 m capex and $32.3 m acquisitions.
- Cash balance fell to $299 m (-21% vs. Dec-24) after $233.8 m in share buybacks and $84.9 m dividends.
- Inventory rose 14% YTD; A/R up 15%, reflecting volume and price growth.
- Debt largely unchanged at $1.25 bn; no draws on new $1 bn revolver.
- Segment EBIT ex-specials: Americas $137.9 m (+1%), International $30.6 m (+19%), Harris $31.9 m (+28%).
- Acquisitions: 35% stake in Alloy Steel Australia ($45 m) with agreement to buy remaining 65% for $90 m on 1-Aug-25; prior year deals include Vanair, Inrotech and RedViking.
- Dividend lifted 5.6% YoY to $0.75 per share; 55.2 m shares outstanding.
Key takeaways: double-digit EPS growth, margin expansion and disciplined leverage offset by cash burn from aggressive buybacks and higher working capital. Management sees limited additional rationalization costs and remains covenant-compliant.
Principali dati del 10-Q del secondo trimestre 2025 di Lincoln Electric (LECO):
- Le vendite nette sono aumentate del 6,6% su base annua, raggiungendo 1,09 miliardi di dollari; le vendite del primo semestre sono cresciute del 4,5% a 2,09 miliardi di dollari.
- Il profitto lordo 猫 salito del 5,7% a 405,5 milioni di dollari; il reddito operativo 猫 aumentato del 29% a 192,1 milioni di dollari, grazie a costi di svalutazione inferiori.
- Utile netto balzato del 41% su base annua a 143,4 milioni di dollari; l'EPS diluito 猫 cresciuto del 44,6% a 2,56 dollari.
- Il flusso di cassa operativo del primo semestre 猫 migliorato dell'8,4% a 329,5 milioni di dollari; il flusso di cassa libero ha assorbito 52,4 milioni di dollari in investimenti e 32,3 milioni di dollari in acquisizioni.
- La liquidit脿 猫 scesa a 299 milioni di dollari (-21% rispetto a dicembre 2024) dopo 233,8 milioni di dollari in riacquisti azionari e 84,9 milioni di dollari in dividendi.
- Le scorte sono aumentate del 14% da inizio anno; i crediti verso clienti sono cresciuti del 15%, riflettendo l鈥檃umento di volume e prezzi.
- Il debito 猫 rimasto sostanzialmente invariato a 1,25 miliardi di dollari; nessun utilizzo della nuova linea di credito revolving da 1 miliardo di dollari.
- EBIT segmentale al netto di voci straordinarie: Americhe 137,9 milioni (+1%), Internazionale 30,6 milioni (+19%), Harris 31,9 milioni (+28%).
- Acquisizioni: quota del 35% in Alloy Steel Australia (45 milioni di dollari) con accordo per acquistare il restante 65% per 90 milioni di dollari il 1 agosto 2025; operazioni dell鈥檃nno precedente includono Vanair, Inrotech e RedViking.
- Dividendo aumentato del 5,6% su base annua a 0,75 dollari per azione; azioni in circolazione 55,2 milioni.
Conclusioni chiave: crescita a doppia cifra dell鈥橢PS, ampliamento dei margini e leva finanziaria disciplinata compensano il consumo di cassa dovuto a riacquisti aggressivi e aumento del capitale circolante. La direzione prevede costi di razionalizzazione limitati e mantiene la conformit脿 ai covenant.
Aspectos destacados del 10-Q del segundo trimestre de 2025 de Lincoln Electric (LECO):
- Las ventas netas aumentaron un 6,6% interanual hasta 1.090 millones de d贸lares; las ventas del primer semestre crecieron un 4,5% hasta 2.090 millones de d贸lares.
- El beneficio bruto subi贸 un 5,7% hasta 405,5 millones de d贸lares; el ingreso operativo se dispar贸 un 29% hasta 192,1 millones de d贸lares debido a menores costos por deterioro.
- El ingreso neto aument贸 un 41% interanual hasta 143,4 millones de d贸lares; las ganancias por acci贸n diluidas crecieron un 44,6% hasta 2,56 d贸lares.
- El flujo de caja operativo del primer semestre mejor贸 un 8,4% hasta 329,5 millones de d贸lares; el flujo de caja libre absorbi贸 52,4 millones de d贸lares en capex y 32,3 millones de d贸lares en adquisiciones.
- El saldo de efectivo cay贸 a 299 millones de d贸lares (-21% respecto a diciembre de 2024) tras 233,8 millones de d贸lares en recompras de acciones y 84,9 millones de d贸lares en dividendos.
- El inventario aument贸 un 14% en lo que va del a帽o; las cuentas por cobrar subieron un 15%, reflejando crecimiento en volumen y precios.
- La deuda se mantuvo pr谩cticamente sin cambios en 1.250 millones de d贸lares; no se utiliz贸 la nueva l铆nea revolvente de 1.000 millones de d贸lares.
- EBIT segmentado excluyendo especiales: Am茅ricas 137,9 millones (+1%), Internacional 30,6 millones (+19%), Harris 31,9 millones (+28%).
- Adquisiciones: participaci贸n del 35% en Alloy Steel Australia (45 millones de d贸lares) con acuerdo para comprar el 65% restante por 90 millones de d贸lares el 1 de agosto de 2025; acuerdos del a帽o anterior incluyen Vanair, Inrotech y RedViking.
- El dividendo aument贸 un 5,6% interanual hasta 0,75 d贸lares por acci贸n; acciones en circulaci贸n 55,2 millones.
Conclusiones clave: crecimiento de EPS de dos d铆gitos, expansi贸n de m谩rgenes y apalancamiento disciplinado compensan el consumo de efectivo por recompras agresivas y mayor capital de trabajo. La gerencia prev茅 costos limitados adicionales por racionalizaci贸n y mantiene el cumplimiento de convenios.
Lincoln Electric (LECO) 2025雲� 2攵勱赴 10-Q 欤检殧 雮挫毄:
- 靾滊Г於滌澊 鞝勲厔 雽�牍� 6.6% 歃濌皜頃橃棳 10鞏� 9觳滊 雼煬毳� 旮半; 靸侂皹旮� 毵れ稖鞚� 4.5% 歃濌皜頃� 20鞏� 9觳滊 雼煬.
- 齑濎澊鞚奠潃 5.7% 歃濌皜頃� 4鞏� 5550毵� 雼煬; 鞓侅梾鞚挫澋鞚� 臧愱皜靸侁皝牍� 臧愳唽搿� 29% 旮夓頃橃棳 1鞏� 9210毵� 雼煬 雼劚.
- 靾涤澊鞚�鞚� 鞝勲厔 雽�牍� 41% 歃濌皜頃� 1鞏� 4340毵� 雼煬; 頋劃 欤茧嫻靾涤澊鞚�(EPS)鞚� 44.6% 靸侅姽頃� 2.56 雼煬.
- 靸侂皹旮� 鞓侅梾順勱笀頋愲鞚� 8.4% 臧滌劆霅橃柎 3鞏� 2950毵� 雼煬; 鞛夓棳順勱笀頋愲鞚� 5240毵� 雼煬鞚� 鞛愲掣鞝� 歆�於滉臣 3230毵� 雼煬鞚� 鞚胳垬鞐� 靷毄霅�.
- 順勱笀 鞛旍暋鞚� 2024雲� 12鞗� 雽�牍� 21% 臧愳唽頃� 2鞏� 9900毵� 雼煬; 欤检嫕 鞛Г鞛呾棎 2鞏� 3380毵� 雼煬, 氚半嫻旮堨溂搿� 8490毵� 雼煬 歆�於�.
- 鞛碃電� 鞐办磮 雽�牍� 14% 歃濌皜; 毵れ稖毂勱秾鞚� 15% 歃濌皜頃橃棳 韺愲Г霟夑臣 臧�瓴� 靸侅姽 氚橃榿.
- 攵�毂勲姅 瓯办潣 氤�霃� 鞐嗢澊 12鞏� 5觳滊 雼煬; 鞁犼窚 10鞏� 雼煬 毽臣牍� 雽�於滌潃 靷毄頃橃 鞎婌潓.
- 韸闺硠 頃 鞝滌櫢 靹戈犯毹柬姼 EBIT: 氙胳＜ 1鞏� 3790毵� 雼煬(+1%), 甑牅 3觳� 60毵� 雼煬(+19%), 頃措Μ鞀� 3觳� 190毵� 雼煬(+28%).
- 鞚胳垬: Alloy Steel Australia 歆�攵� 35% (4,500毵� 雼煬) 旆摑, 2025雲� 8鞗� 1鞚� 雮橂ǜ歆� 65%毳� 9,000毵� 雼煬鞐� 鞚胳垬頃橁赴搿� 頃╈潣; 鞝勲厔霃� 瓯半灅鞐愲姅 Vanair, Inrotech, RedViking 韽暔.
- 氚半嫻旮堨潃 鞝勲厔 雽�牍� 5.6% 歃濌皜頃� 欤茧嫻 0.75 雼煬; 氚滍枆 欤检嫕靾� 5,520毵� 欤�.
欤检殧 鞁滌偓鞝�: 霊� 鞛愲靾� EPS 靹膘灔, 毵堨 頇曤寑, 鞁犾頃� 霠堧矂毽 鞖挫毄鞚� 瓿店博鞝侅澑 鞛愳偓欤� 毵れ瀰瓿� 歃濌皜頃� 鞖挫爠鞛愲掣鞙茧 鞚疙暅 順勱笀 靻岆毳� 靸侅噭. 瓴届榿歆勳潃 於旉皜 甑“臁办爼 牍勳毄鞚� 鞝滍暅鞝侅澕 瓴冹溂搿� 氤搓碃 鞛堨溂氅�, 瓿勳暯 臁瓣贝鞚� 欷�靾橅晿瓿� 鞛堨潓.
Points cl茅s du 10-Q du deuxi猫me trimestre 2025 de Lincoln Electric (LECO) :
- Les ventes nettes ont augment茅 de 6,6 % en glissement annuel pour atteindre 1,09 milliard de dollars ; les ventes du premier semestre ont progress茅 de 4,5 % 脿 2,09 milliards de dollars.
- Le b茅n茅fice brut a augment茅 de 5,7 % pour atteindre 405,5 millions de dollars ; le r茅sultat op茅rationnel a bondi de 29 % 脿 192,1 millions de dollars, gr芒ce 脿 une baisse des co没ts de d茅pr茅ciation.
- Le b茅n茅fice net a grimp茅 de 41 % en glissement annuel 脿 143,4 millions de dollars ; le BPA dilu茅 a progress茅 de 44,6 % 脿 2,56 dollars.
- Le flux de tr茅sorerie op茅rationnel du premier semestre s鈥檈st am茅lior茅 de 8,4 % 脿 329,5 millions de dollars ; le flux de tr茅sorerie disponible a absorb茅 52,4 millions de dollars d鈥檌nvestissements et 32,3 millions de dollars 诲鈥檃肠辩耻颈蝉颈迟颈辞苍蝉.
- La tr茅sorerie a diminu茅 脿 299 millions de dollars (-21 % par rapport 脿 d茅cembre 2024) apr猫s 233,8 millions de dollars de rachats d鈥檃ctions et 84,9 millions de dollars de dividendes.
- Les stocks ont augment茅 de 14 % depuis le d茅but de l鈥檃nn茅e ; les cr茅ances clients ont progress茅 de 15 %, refl茅tant la croissance des volumes et des prix.
- La dette est rest茅e globalement stable 脿 1,25 milliard de dollars ; aucune utilisation de la nouvelle ligne de cr茅dit renouvelable d鈥檜n milliard de dollars.
- EBIT par segment hors 茅l茅ments exceptionnels : Am茅riques 137,9 millions (+1 %), International 30,6 millions (+19 %), Harris 31,9 millions (+28 %).
- Acquisitions : prise de participation de 35 % dans Alloy Steel Australia (45 millions de dollars) avec accord pour racheter les 65 % restants pour 90 millions de dollars le 1er ao没t 2025 ; les op茅rations de l鈥檃nn茅e pr茅c茅dente incluent Vanair, Inrotech et RedViking.
- Le dividende a 茅t茅 augment茅 de 5,6 % en glissement annuel 脿 0,75 dollar par action ; 55,2 millions d鈥檃ctions en circulation.
Points cl茅s : croissance 脿 deux chiffres du BPA, expansion des marges et levier financier ma卯tris茅 compensent la consommation de tr茅sorerie li茅e aux rachats d鈥檃ctions agressifs et 脿 l鈥檃ugmentation du fonds de roulement. La direction pr茅voit des co没ts de rationalisation limit茅s et reste conforme aux engagements financiers.
Lincoln Electric (LECO) Highlights aus dem 10-Q f眉r Q2 2025:
- Der Nettoumsatz stieg im Jahresvergleich um 6,6 % auf 1,09 Mrd. USD; der Umsatz im ersten Halbjahr wuchs um 4,5 % auf 2,09 Mrd. USD.
- Der Bruttogewinn erh枚hte sich um 5,7 % auf 405,5 Mio. USD; das operative Ergebnis stieg dank geringerer Wertminderungen um 29 % auf 192,1 Mio. USD.
- Der Nettogewinn sprang im Jahresvergleich um 41 % auf 143,4 Mio. USD; das verw盲sserte Ergebnis je Aktie stieg um 44,6 % auf 2,56 USD.
- Der operative Cashflow im ersten Halbjahr verbesserte sich um 8,4 % auf 329,5 Mio. USD; der freie Cashflow wurde durch 52,4 Mio. USD Investitionen und 32,3 Mio. USD Akquisitionen belastet.
- Der Kassenbestand sank auf 299 Mio. USD (-21 % gegen眉ber Dez. 2024) nach 233,8 Mio. USD Aktienr眉ckk盲ufen und 84,9 Mio. USD Dividendenzahlungen.
- Der Lagerbestand stieg seit Jahresbeginn um 14 %; Forderungen aus Lieferungen und Leistungen legten um 15 % zu, was Volumen- und Preisanstieg widerspiegelt.
- Die Verschuldung blieb mit 1,25 Mrd. USD nahezu unver盲ndert; keine Inanspruchnahme der neuen 1-Mrd.-USD-Revolvierlinie.
- Segment-EBIT ohne Sondereffekte: Americas 137,9 Mio. USD (+1 %), International 30,6 Mio. USD (+19 %), Harris 31,9 Mio. USD (+28 %).
- Akquisitionen: 35% Beteiligung an Alloy Steel Australia (45 Mio. USD) mit Vereinbarung, die restlichen 65% am 1. August 2025 f眉r 90 Mio. USD zu erwerben; Vorjahres-Deals umfassen Vanair, Inrotech und RedViking.
- Dividende um 5,6 % auf 0,75 USD je Aktie erh枚ht; 55,2 Mio. ausstehende Aktien.
Wesentliche Erkenntnisse: zweistelliges EPS-Wachstum, Margenausweitung und disziplinierte Verschuldung kompensieren den Cash-Abfluss durch aggressive Aktienr眉ckk盲ufe und h枚heres Umlaufverm枚gen. Das Management erwartet begrenzte zus盲tzliche Restrukturierungskosten und bleibt konform mit den Covenants.
- Diluted EPS up 44.6% YoY to $2.56, outpacing revenue growth.
- Operating margin expanded 320 bp to 17.6% despite softer macro backdrop.
- H1 operating cash flow +8.4% to $329 m, covering capex and most M&A spend.
- No borrowings under new $1 bn credit facility; debt covenants comfortably met.
- Tuck-in Alloy Steel acquisition adds high-margin mining solutions.
- Cash & equivalents fell 21% YTD due to $234 m share repurchases and higher dividends.
- Inventory up 14% and A/R up 15% YTD, tying up $150 m in working capital.
- Ongoing buybacks exceed free cash flow, pressuring liquidity if demand weakens.
- Foreign currency gains drove $60 m OCI; reversal risk remains.
Insights
TL;DR 鈥� Strong earnings beat; cash usage a watch item.
Revenue growth outpaced welding industry averages and price/mix held margins, pushing diluted EPS up 45%. Operating cash funded only 60% of buybacks and dividends, cutting cash 21% YTD; still, net leverage is stable at ~2.6脳 EBITDA and $1 bn revolver is untapped. Inventories rose 14%鈥攎anagement must convert to cash before year-end. The Alloy Steel option adds high-margin mining exposure with manageable spend. Overall, trend supports guidance upside and multiple expansion.
TL;DR 鈥� Positive fundamental trend; liquidity requires vigilance.
Adjusted EBIT margin reached 18.3% vs 17.2% prior year, signalling pricing power and cost control. Shareholder returns (5% yield buybacks + 1.6% dividend) are welcome but deplete cash amid elevated inventories; any demand slowdown could pressure liquidity. Capex and tuck-in M&A remain under 1脳 depreciation, reflecting disciplined capital allocation. No covenant risk, diversified debt ladder at 4.1% avg coupon. Currency tailwinds aided OCI; FX reversal is a risk. Net view: moderately bullish.
Principali dati del 10-Q del secondo trimestre 2025 di Lincoln Electric (LECO):
- Le vendite nette sono aumentate del 6,6% su base annua, raggiungendo 1,09 miliardi di dollari; le vendite del primo semestre sono cresciute del 4,5% a 2,09 miliardi di dollari.
- Il profitto lordo 猫 salito del 5,7% a 405,5 milioni di dollari; il reddito operativo 猫 aumentato del 29% a 192,1 milioni di dollari, grazie a costi di svalutazione inferiori.
- Utile netto balzato del 41% su base annua a 143,4 milioni di dollari; l'EPS diluito 猫 cresciuto del 44,6% a 2,56 dollari.
- Il flusso di cassa operativo del primo semestre 猫 migliorato dell'8,4% a 329,5 milioni di dollari; il flusso di cassa libero ha assorbito 52,4 milioni di dollari in investimenti e 32,3 milioni di dollari in acquisizioni.
- La liquidit脿 猫 scesa a 299 milioni di dollari (-21% rispetto a dicembre 2024) dopo 233,8 milioni di dollari in riacquisti azionari e 84,9 milioni di dollari in dividendi.
- Le scorte sono aumentate del 14% da inizio anno; i crediti verso clienti sono cresciuti del 15%, riflettendo l鈥檃umento di volume e prezzi.
- Il debito 猫 rimasto sostanzialmente invariato a 1,25 miliardi di dollari; nessun utilizzo della nuova linea di credito revolving da 1 miliardo di dollari.
- EBIT segmentale al netto di voci straordinarie: Americhe 137,9 milioni (+1%), Internazionale 30,6 milioni (+19%), Harris 31,9 milioni (+28%).
- Acquisizioni: quota del 35% in Alloy Steel Australia (45 milioni di dollari) con accordo per acquistare il restante 65% per 90 milioni di dollari il 1 agosto 2025; operazioni dell鈥檃nno precedente includono Vanair, Inrotech e RedViking.
- Dividendo aumentato del 5,6% su base annua a 0,75 dollari per azione; azioni in circolazione 55,2 milioni.
Conclusioni chiave: crescita a doppia cifra dell鈥橢PS, ampliamento dei margini e leva finanziaria disciplinata compensano il consumo di cassa dovuto a riacquisti aggressivi e aumento del capitale circolante. La direzione prevede costi di razionalizzazione limitati e mantiene la conformit脿 ai covenant.
Aspectos destacados del 10-Q del segundo trimestre de 2025 de Lincoln Electric (LECO):
- Las ventas netas aumentaron un 6,6% interanual hasta 1.090 millones de d贸lares; las ventas del primer semestre crecieron un 4,5% hasta 2.090 millones de d贸lares.
- El beneficio bruto subi贸 un 5,7% hasta 405,5 millones de d贸lares; el ingreso operativo se dispar贸 un 29% hasta 192,1 millones de d贸lares debido a menores costos por deterioro.
- El ingreso neto aument贸 un 41% interanual hasta 143,4 millones de d贸lares; las ganancias por acci贸n diluidas crecieron un 44,6% hasta 2,56 d贸lares.
- El flujo de caja operativo del primer semestre mejor贸 un 8,4% hasta 329,5 millones de d贸lares; el flujo de caja libre absorbi贸 52,4 millones de d贸lares en capex y 32,3 millones de d贸lares en adquisiciones.
- El saldo de efectivo cay贸 a 299 millones de d贸lares (-21% respecto a diciembre de 2024) tras 233,8 millones de d贸lares en recompras de acciones y 84,9 millones de d贸lares en dividendos.
- El inventario aument贸 un 14% en lo que va del a帽o; las cuentas por cobrar subieron un 15%, reflejando crecimiento en volumen y precios.
- La deuda se mantuvo pr谩cticamente sin cambios en 1.250 millones de d贸lares; no se utiliz贸 la nueva l铆nea revolvente de 1.000 millones de d贸lares.
- EBIT segmentado excluyendo especiales: Am茅ricas 137,9 millones (+1%), Internacional 30,6 millones (+19%), Harris 31,9 millones (+28%).
- Adquisiciones: participaci贸n del 35% en Alloy Steel Australia (45 millones de d贸lares) con acuerdo para comprar el 65% restante por 90 millones de d贸lares el 1 de agosto de 2025; acuerdos del a帽o anterior incluyen Vanair, Inrotech y RedViking.
- El dividendo aument贸 un 5,6% interanual hasta 0,75 d贸lares por acci贸n; acciones en circulaci贸n 55,2 millones.
Conclusiones clave: crecimiento de EPS de dos d铆gitos, expansi贸n de m谩rgenes y apalancamiento disciplinado compensan el consumo de efectivo por recompras agresivas y mayor capital de trabajo. La gerencia prev茅 costos limitados adicionales por racionalizaci贸n y mantiene el cumplimiento de convenios.
Lincoln Electric (LECO) 2025雲� 2攵勱赴 10-Q 欤检殧 雮挫毄:
- 靾滊Г於滌澊 鞝勲厔 雽�牍� 6.6% 歃濌皜頃橃棳 10鞏� 9觳滊 雼煬毳� 旮半; 靸侂皹旮� 毵れ稖鞚� 4.5% 歃濌皜頃� 20鞏� 9觳滊 雼煬.
- 齑濎澊鞚奠潃 5.7% 歃濌皜頃� 4鞏� 5550毵� 雼煬; 鞓侅梾鞚挫澋鞚� 臧愱皜靸侁皝牍� 臧愳唽搿� 29% 旮夓頃橃棳 1鞏� 9210毵� 雼煬 雼劚.
- 靾涤澊鞚�鞚� 鞝勲厔 雽�牍� 41% 歃濌皜頃� 1鞏� 4340毵� 雼煬; 頋劃 欤茧嫻靾涤澊鞚�(EPS)鞚� 44.6% 靸侅姽頃� 2.56 雼煬.
- 靸侂皹旮� 鞓侅梾順勱笀頋愲鞚� 8.4% 臧滌劆霅橃柎 3鞏� 2950毵� 雼煬; 鞛夓棳順勱笀頋愲鞚� 5240毵� 雼煬鞚� 鞛愲掣鞝� 歆�於滉臣 3230毵� 雼煬鞚� 鞚胳垬鞐� 靷毄霅�.
- 順勱笀 鞛旍暋鞚� 2024雲� 12鞗� 雽�牍� 21% 臧愳唽頃� 2鞏� 9900毵� 雼煬; 欤检嫕 鞛Г鞛呾棎 2鞏� 3380毵� 雼煬, 氚半嫻旮堨溂搿� 8490毵� 雼煬 歆�於�.
- 鞛碃電� 鞐办磮 雽�牍� 14% 歃濌皜; 毵れ稖毂勱秾鞚� 15% 歃濌皜頃橃棳 韺愲Г霟夑臣 臧�瓴� 靸侅姽 氚橃榿.
- 攵�毂勲姅 瓯办潣 氤�霃� 鞐嗢澊 12鞏� 5觳滊 雼煬; 鞁犼窚 10鞏� 雼煬 毽臣牍� 雽�於滌潃 靷毄頃橃 鞎婌潓.
- 韸闺硠 頃 鞝滌櫢 靹戈犯毹柬姼 EBIT: 氙胳＜ 1鞏� 3790毵� 雼煬(+1%), 甑牅 3觳� 60毵� 雼煬(+19%), 頃措Μ鞀� 3觳� 190毵� 雼煬(+28%).
- 鞚胳垬: Alloy Steel Australia 歆�攵� 35% (4,500毵� 雼煬) 旆摑, 2025雲� 8鞗� 1鞚� 雮橂ǜ歆� 65%毳� 9,000毵� 雼煬鞐� 鞚胳垬頃橁赴搿� 頃╈潣; 鞝勲厔霃� 瓯半灅鞐愲姅 Vanair, Inrotech, RedViking 韽暔.
- 氚半嫻旮堨潃 鞝勲厔 雽�牍� 5.6% 歃濌皜頃� 欤茧嫻 0.75 雼煬; 氚滍枆 欤检嫕靾� 5,520毵� 欤�.
欤检殧 鞁滌偓鞝�: 霊� 鞛愲靾� EPS 靹膘灔, 毵堨 頇曤寑, 鞁犾頃� 霠堧矂毽 鞖挫毄鞚� 瓿店博鞝侅澑 鞛愳偓欤� 毵れ瀰瓿� 歃濌皜頃� 鞖挫爠鞛愲掣鞙茧 鞚疙暅 順勱笀 靻岆毳� 靸侅噭. 瓴届榿歆勳潃 於旉皜 甑“臁办爼 牍勳毄鞚� 鞝滍暅鞝侅澕 瓴冹溂搿� 氤搓碃 鞛堨溂氅�, 瓿勳暯 臁瓣贝鞚� 欷�靾橅晿瓿� 鞛堨潓.
Points cl茅s du 10-Q du deuxi猫me trimestre 2025 de Lincoln Electric (LECO) :
- Les ventes nettes ont augment茅 de 6,6 % en glissement annuel pour atteindre 1,09 milliard de dollars ; les ventes du premier semestre ont progress茅 de 4,5 % 脿 2,09 milliards de dollars.
- Le b茅n茅fice brut a augment茅 de 5,7 % pour atteindre 405,5 millions de dollars ; le r茅sultat op茅rationnel a bondi de 29 % 脿 192,1 millions de dollars, gr芒ce 脿 une baisse des co没ts de d茅pr茅ciation.
- Le b茅n茅fice net a grimp茅 de 41 % en glissement annuel 脿 143,4 millions de dollars ; le BPA dilu茅 a progress茅 de 44,6 % 脿 2,56 dollars.
- Le flux de tr茅sorerie op茅rationnel du premier semestre s鈥檈st am茅lior茅 de 8,4 % 脿 329,5 millions de dollars ; le flux de tr茅sorerie disponible a absorb茅 52,4 millions de dollars d鈥檌nvestissements et 32,3 millions de dollars 诲鈥檃肠辩耻颈蝉颈迟颈辞苍蝉.
- La tr茅sorerie a diminu茅 脿 299 millions de dollars (-21 % par rapport 脿 d茅cembre 2024) apr猫s 233,8 millions de dollars de rachats d鈥檃ctions et 84,9 millions de dollars de dividendes.
- Les stocks ont augment茅 de 14 % depuis le d茅but de l鈥檃nn茅e ; les cr茅ances clients ont progress茅 de 15 %, refl茅tant la croissance des volumes et des prix.
- La dette est rest茅e globalement stable 脿 1,25 milliard de dollars ; aucune utilisation de la nouvelle ligne de cr茅dit renouvelable d鈥檜n milliard de dollars.
- EBIT par segment hors 茅l茅ments exceptionnels : Am茅riques 137,9 millions (+1 %), International 30,6 millions (+19 %), Harris 31,9 millions (+28 %).
- Acquisitions : prise de participation de 35 % dans Alloy Steel Australia (45 millions de dollars) avec accord pour racheter les 65 % restants pour 90 millions de dollars le 1er ao没t 2025 ; les op茅rations de l鈥檃nn茅e pr茅c茅dente incluent Vanair, Inrotech et RedViking.
- Le dividende a 茅t茅 augment茅 de 5,6 % en glissement annuel 脿 0,75 dollar par action ; 55,2 millions d鈥檃ctions en circulation.
Points cl茅s : croissance 脿 deux chiffres du BPA, expansion des marges et levier financier ma卯tris茅 compensent la consommation de tr茅sorerie li茅e aux rachats d鈥檃ctions agressifs et 脿 l鈥檃ugmentation du fonds de roulement. La direction pr茅voit des co没ts de rationalisation limit茅s et reste conforme aux engagements financiers.
Lincoln Electric (LECO) Highlights aus dem 10-Q f眉r Q2 2025:
- Der Nettoumsatz stieg im Jahresvergleich um 6,6 % auf 1,09 Mrd. USD; der Umsatz im ersten Halbjahr wuchs um 4,5 % auf 2,09 Mrd. USD.
- Der Bruttogewinn erh枚hte sich um 5,7 % auf 405,5 Mio. USD; das operative Ergebnis stieg dank geringerer Wertminderungen um 29 % auf 192,1 Mio. USD.
- Der Nettogewinn sprang im Jahresvergleich um 41 % auf 143,4 Mio. USD; das verw盲sserte Ergebnis je Aktie stieg um 44,6 % auf 2,56 USD.
- Der operative Cashflow im ersten Halbjahr verbesserte sich um 8,4 % auf 329,5 Mio. USD; der freie Cashflow wurde durch 52,4 Mio. USD Investitionen und 32,3 Mio. USD Akquisitionen belastet.
- Der Kassenbestand sank auf 299 Mio. USD (-21 % gegen眉ber Dez. 2024) nach 233,8 Mio. USD Aktienr眉ckk盲ufen und 84,9 Mio. USD Dividendenzahlungen.
- Der Lagerbestand stieg seit Jahresbeginn um 14 %; Forderungen aus Lieferungen und Leistungen legten um 15 % zu, was Volumen- und Preisanstieg widerspiegelt.
- Die Verschuldung blieb mit 1,25 Mrd. USD nahezu unver盲ndert; keine Inanspruchnahme der neuen 1-Mrd.-USD-Revolvierlinie.
- Segment-EBIT ohne Sondereffekte: Americas 137,9 Mio. USD (+1 %), International 30,6 Mio. USD (+19 %), Harris 31,9 Mio. USD (+28 %).
- Akquisitionen: 35% Beteiligung an Alloy Steel Australia (45 Mio. USD) mit Vereinbarung, die restlichen 65% am 1. August 2025 f眉r 90 Mio. USD zu erwerben; Vorjahres-Deals umfassen Vanair, Inrotech und RedViking.
- Dividende um 5,6 % auf 0,75 USD je Aktie erh枚ht; 55,2 Mio. ausstehende Aktien.
Wesentliche Erkenntnisse: zweistelliges EPS-Wachstum, Margenausweitung und disziplinierte Verschuldung kompensieren den Cash-Abfluss durch aggressive Aktienr眉ckk盲ufe und h枚heres Umlaufverm枚gen. Das Management erwartet begrenzte zus盲tzliche Restrukturierungskosten und bleibt konform mit den Covenants.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
or
For the transition period from _____________ to _____________
Commission File Number:
(Exact name of registrant as specified in its charter)
(
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “small reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
The number of shares outstanding of the registrant’s common shares as of June 30, 2025 was
Table of Contents
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION | 3 | |
Item 1. Financial Statements | 3 | |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | 3 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | 4 | |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | 5 | |
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) | 6 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | 8 | |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS | 9 | |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 23 | |
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 33 | |
Item 4. Controls and Procedures | 33 | |
|
| |
PART II. OTHER INFORMATION | 33 | |
Item 1. Legal Proceedings | 33 | |
Item 1A. Risk Factors | 33 | |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 34 | |
Item 4. Mine Safety Disclosures | 34 | |
Item 5. Other Information | 34 | |
Item 6. Exhibits | 35 | |
Signatures | 36 | |
| ||
2
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2025 |
| 2024 |
| 2025 |
| 2024 | |||||
Net sales (Note 2) |
| $ | |
| $ | |
| $ | |
| $ | |
Cost of goods sold |
| |
| |
| |
| | ||||
Gross profit |
| |
| |
| |
| | ||||
Selling, general & administrative expenses |
| |
| |
| |
| | ||||
Rationalization and asset impairment net charges (Note 6) |
| |
| |
| |
| | ||||
Operating income |
| |
| |
| |
| | ||||
Interest expense, net |
| |
| |
| |
| | ||||
Other income (expense) |
| |
| ( |
| |
| | ||||
Income before income taxes |
| |
| |
| |
| | ||||
Income taxes (Note 11) |
| |
| |
| |
| | ||||
Net income | $ | | $ | | $ | | $ | | ||||
Basic earnings per share (Note 3) | $ | | $ | | $ | | $ | | ||||
Diluted earnings per share (Note 3) | $ | | $ | | $ | | $ | | ||||
Cash dividends declared per share | $ | | $ | | $ | | $ | | ||||
See notes to these consolidated financial statements.
3
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(In thousands)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2025 |
| 2024 |
| 2025 |
| 2024 | |||||
Net income |
| $ | |
| $ | |
| $ | |
| $ | |
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
| ||||
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges |
| |
| ( | | | ||||||
Defined benefit pension plan activity |
| ( |
| | ( | | ||||||
Currency translation adjustment |
| |
| ( |
| |
| ( | ||||
Other comprehensive income (loss): |
| |
| ( |
| |
| ( | ||||
Comprehensive income | $ | | $ | | $ | | $ | | ||||
See notes to these consolidated financial statements.
4
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 30, 2025 | December 31, 2024 | |||||
(UNAUDITED) | (NOTE 1) | |||||
ASSETS |
|
|
|
| ||
Current Assets |
|
|
|
| ||
Cash and cash equivalents | $ | | $ | | ||
Accounts receivable (less allowance for doubtful accounts of $ |
| |
| | ||
Inventories (Note 8) |
| |
| | ||
Other current assets |
| |
| | ||
Total Current Assets |
| |
| | ||
Property, plant and equipment (less accumulated depreciation of $ | | | ||||
Goodwill |
| |
| | ||
Other assets |
| |
| | ||
TOTAL ASSETS | $ | | $ | | ||
LIABILITIES AND EQUITY |
|
|
| |||
Current Liabilities |
|
|
| |||
Short-term debt (Note 10) | $ | | $ | | ||
Trade accounts payable |
| |
| | ||
Accrued employee compensation and benefits |
| |
| | ||
Other current liabilities |
| |
| | ||
Total Current Liabilities |
| |
| | ||
Long-term debt, less current portion (Note 10) |
| |
| | ||
Other liabilities |
| |
| | ||
Total Liabilities |
| |
| | ||
Shareholders' Equity |
|
|
| |||
Common shares, without par value - at stated capital amount; authorized |
| |
| | ||
Additional paid-in capital |
| |
| | ||
Retained earnings |
| |
| | ||
Accumulated other comprehensive loss |
| ( |
| ( | ||
Treasury shares, at cost - |
| ( |
| ( | ||
Total Equity |
| |
| | ||
TOTAL LIABILITIES AND TOTAL EQUITY | $ | | $ | | ||
See notes to these consolidated financial statements.
5
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EQUITY
(UNAUDITED)
(In thousands, except per share amounts)
|
|
|
|
| Accumulated |
|
| |||||||||||||
Common | Additional | Other | ||||||||||||||||||
Shares | Common | Paid-In | Retained | Comprehensive | Treasury | |||||||||||||||
| Outstanding |
| Shares |
| Capital |
| Earnings |
| Income (Loss) |
| Shares |
| Total | |||||||
Balance at December 31, 2024 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | ||||||
Net income |
| |
| | ||||||||||||||||
Defined benefit pension plan activity, net of tax |
| ( |
| ( | ||||||||||||||||
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax |
| |
| | ||||||||||||||||
Currency translation adjustment, net of tax |
| |
| | ||||||||||||||||
Cash dividends declared - $ |
| ( |
| ( | ||||||||||||||||
Stock-based compensation activity |
| | | |
| | ||||||||||||||
Purchase of shares for treasury |
| ( | ( |
| ( | |||||||||||||||
Other |
| | ( |
| ( | |||||||||||||||
Balance at March 31, 2025 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | ||||||
Net income |
| |
| | ||||||||||||||||
Defined benefit pension plan activity, net of tax |
| ( |
| ( | ||||||||||||||||
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax |
| |
| | ||||||||||||||||
Currency translation adjustment, net of tax |
| |
| | ||||||||||||||||
Cash dividends declared – $ |
| ( |
| ( | ||||||||||||||||
Stock-based compensation activity |
| | | |
| | ||||||||||||||
Purchase of shares for treasury |
| ( | ( |
| ( | |||||||||||||||
Other |
| | ( |
| ( | |||||||||||||||
Balance at June 30, 2025 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | ||||||
6
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EQUITY
(UNAUDITED)
(In thousands, except per share amounts)
|
|
|
|
| Accumulated |
|
| |||||||||||||
Common | Additional | Other | ||||||||||||||||||
Shares | Common | Paid-In | Retained | Comprehensive | Treasury | |||||||||||||||
| Outstanding |
| Shares |
| Capital |
| Earnings |
| Income (Loss) |
| Shares |
| Total | |||||||
Balance at December 31, 2023 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | ||||||
Net income |
| |
| | ||||||||||||||||
Defined benefit pension plan activity, net of tax |
| |
| | ||||||||||||||||
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax |
| |
| | ||||||||||||||||
Currency translation adjustment, net of tax |
| ( |
| ( | ||||||||||||||||
Cash dividends declared – $ |
| ( |
| ( | ||||||||||||||||
Stock-based compensation activity |
| | | |
| | ||||||||||||||
Purchase of shares for treasury |
| ( | ( |
| ( | |||||||||||||||
Other |
| | ( |
| ( | |||||||||||||||
Balance at March 31, 2024 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | ||||||
Net income |
|
|
|
|
| |
|
|
| | ||||||||||
Defined benefit pension plan activity, net of tax |
|
|
|
|
|
| |
|
| | ||||||||||
Unrealized loss on derivatives designated and qualifying as cash flow hedges, net of tax |
|
|
|
|
|
| ( |
|
| ( | ||||||||||
Currency translation adjustment, net of tax |
|
|
|
|
|
| ( |
|
| ( | ||||||||||
Cash dividends declared – $ |
|
|
|
|
| ( |
|
|
| ( | ||||||||||
Stock-based compensation activity |
| |
|
|
| |
|
|
| |
| | ||||||||
Purchase of shares for treasury |
| ( |
|
|
|
|
|
| ( |
| ( | |||||||||
Other |
|
|
|
| ( |
| |
|
|
| ( | |||||||||
Balance at June 30, 2024 |
| | $ | | $ | | $ | | $ | ( | $ | ( | $ | | ||||||
7
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
Six Months Ended June 30, | ||||||
|
| 2025 |
| 2024 | ||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
| |||
Net income | $ | | $ | | ||
Adjustments to reconcile Net income to Net cash provided by operating activities: |
|
|
| |||
Rationalization and asset impairment net charges |
| |
| | ||
Depreciation and amortization |
| |
| | ||
Deferred income taxes |
| ( |
| ( | ||
Stock-based compensation |
| |
| | ||
Other, net |
| ( |
| | ||
Changes in operating assets and liabilities, net of effects from acquisitions: |
|
|
| |||
Increase in accounts receivable |
| ( |
| ( | ||
Increase in inventories |
| ( |
| ( | ||
Increase in other current assets |
| ( |
| ( | ||
Increase in trade accounts payable |
| |
| | ||
Increase (decrease) in other current liabilities |
| |
| ( | ||
Net change in other assets and liabilities |
| |
| | ||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
| |
| | ||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
| |||
Capital expenditures |
| ( |
| ( | ||
Acquisition of businesses, net of cash acquired |
| ( |
| ( | ||
Proceeds from sale of property, plant and equipment |
| |
| | ||
NET CASH USED BY INVESTING ACTIVITIES |
| ( |
| ( | ||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
| |||
Payments on short-term borrowings | ( | ( | ||||
Proceeds from long-term borrowings |
| |
| | ||
Payments on long-term borrowings |
| ( |
| ( | ||
Proceeds from exercise of stock options |
| |
| | ||
Purchase of shares for treasury |
| ( |
| ( | ||
Cash dividends paid to shareholders |
| ( |
| ( | ||
NET CASH USED BY FINANCING ACTIVITIES |
| ( |
| ( | ||
Effect of exchange rate changes on Cash and cash equivalents |
| ( |
| ( | ||
DECREASE IN CASH AND CASH EQUIVALENTS |
| ( |
| ( | ||
Cash and cash equivalents at beginning of period |
| |
| | ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | | $ | | ||
See notes to these consolidated financial statements.
8
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Dollars in thousands, except per share amounts
NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The consolidated financial statements include the accounts of Lincoln Electric Holdings, Inc. and its wholly-owned and majority-owned subsidiaries for which it has a controlling interest (the “Company”) after elimination of all inter-company accounts, transactions and profits.
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. However, in the opinion of management, these unaudited consolidated financial statements contain all the adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position, results of operations and cash flows for the interim periods. Operating results for the six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025.
The accompanying Condensed Consolidated Balance Sheet at December 31, 2024 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Certain reclassifications have been made to the prior period amounts to conform to the current period presentation, none of which are material.
New Accounting Pronouncements:
This section provides a description of new accounting pronouncements (“Accounting Standards Updates” or “ASUs”) issued by the Financial Accounting Standards Board (“FASB”) that are applicable to the Company.
The following ASUs were adopted as of January 1, 2025:
Standard | Description | ||
ASU No. 2023-09, Income Taxes (Topic 740), issued December 2023. | Requires disclosure of specific categories in rate reconciliation and additional information for reconciling items that meet a quantitative threshold, additional information about income taxes paid, and disclosure of disaggregated income tax information. The Company will adopt the required disclosures for the 2025 annual period. |
9
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The Company is currently evaluating the impact on its financial statements of the following ASUs:
NOTE 2 — REVENUE RECOGNITION
The following table presents the Company’s Net sales disaggregated by product line:
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2025 |
| 2024 |
| 2025 |
| 2024 | |||||
Consumables | $ | | $ | | $ | | $ | | ||||
Equipment |
| |
| |
| |
| | ||||
Net sales | $ | | $ | | $ | | $ | | ||||
Consumable sales consist of welding, brazing and soldering filler metals. Equipment sales consist of arc welding equipment, welding accessories, wire feeding systems, fume control equipment, plasma and oxy-fuel cutting systems, specialty gas regulators, and education solutions; as well as a comprehensive portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing. Consumable and Equipment products are sold within each of the Company’s operating segments.
Within the Equipment product line, there are certain customer contracts related to automation products that may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines the standalone selling price based on the prices charged to customers or using expected cost plus margin. Approximately
At June 30, 2025, the Company recorded $
10
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
NOTE 3 — EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2025 |
| 2024 |
| 2025 |
| 2024 | |||||
Numerator: |
|
|
|
|
|
|
| |||||
Net income | $ | | $ | | $ | | $ | | ||||
Denominator (shares in 000's): |
|
|
|
|
|
|
| |||||
Basic weighted average shares outstanding |
| |
| |
| |
| | ||||
Effect of dilutive securities - Stock options and awards |
| |
| |
| |
| | ||||
Diluted weighted average shares outstanding |
| |
| |
| |
| | ||||
Basic earnings per share | $ | | $ | | $ | | $ | | ||||
Diluted earnings per share | $ | | $ | | $ | | $ | | ||||
For the three months ended June 30, 2025 and 2024, common shares subject to equity-based awards of
NOTE 4 — ACQUISITIONS
On April 1, 2025, the Company acquired a
The acquired companies discussed below are accounted for as business combinations and are included in the consolidated financial statements as of the date of acquisition. The acquired companies are not material individually, or in the aggregate, to the actual or pro forma Consolidated Statements of Income or Consolidated Statements of Cash Flows; as such, pro forma information related to these acquisitions has not been presented.
On July 30, 2024, the Company acquired
On June 3, 2024, the Company acquired
On April 1, 2024, the Company acquired
11
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
RedViking specializes in the development and integration of state-of-the-art autonomous guided vehicles and mobile robots, custom assembly and dynamic test systems, and proprietary manufacturing execution system software.
The Company recognized acquisition costs of $
NOTE 5 — SEGMENT INFORMATION
The Company’s primary business is the design, development and manufacture of arc welding products, automated joining, assembly and cutting systems, plasma and oxy-fuel cutting equipment. The Company also has a leading global position in brazing and soldering alloys.
The Company’s products include arc welding, brazing and soldering filler metals (consumables), arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, and education solutions; as well as a comprehensive portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing.
The Company has aligned its organizational and leadership structure into
Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the adjusted earnings before interest and income taxes ("Adjusted EBIT") profit measure. EBIT is defined as Operating income plus Other income. Segment EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM uses segment Adjusted EBIT to allocate resources for each segment predominantly in establishing the Company’s long-term strategy and in developing the annual budget. The CODM considers actual performance using Adjusted EBIT when making decisions about allocating capital and resources to the segments.
12
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The following table presents Adjusted EBIT by segment:
The Harris | |||||||||||||||
Americas | International | Products | Corporate / | ||||||||||||
| Welding |
| Welding |
| Group |
| Eliminations |
| Consolidated | ||||||
Three Months Ended June 30, 2025 |
|
|
|
|
|
|
|
|
|
| |||||
Net sales | $ | | $ | | $ | | $ | — | $ | | |||||
Inter-segment sales |
| | | | ( | — | |||||||||
Total | | | | ( | | ||||||||||
Cost of goods sold | | | | ( | | ||||||||||
Other segment expenses (3) | | | | ( | | ||||||||||
EBIT | | | | ( | | ||||||||||
Special items charge (1) | | | | | | ||||||||||
Adjusted EBIT | $ | | $ | | $ | | $ | ( | $ | | |||||
Special items charge (1) | ( | ||||||||||||||
Interest income | | ||||||||||||||
Interest expense | ( | ||||||||||||||
Income before income taxes |
|
|
| $ | | ||||||||||
Total assets | $ | | $ | | $ | | $ | ( | $ | | |||||
Capital expenditures | | | | — | | ||||||||||
Depreciation and amortization | | | | ( | | ||||||||||
Three Months Ended June 30, 2024 |
|
|
|
|
|
|
|
|
|
| |||||
Net sales | $ | | $ | | $ | | $ | — | $ | | |||||
Inter-segment sales |
| |
| |
| |
| ( | — | ||||||
Total | | | | ( | | ||||||||||
Cost of goods sold | | | | ( | | ||||||||||
Other segment expenses (3) | | | | | | ||||||||||
EBIT | | ( | | ( | | ||||||||||
Special items charge (2) |
| |
| |
| ( |
| | | ||||||
Adjusted EBIT | $ | | $ | | $ | | $ | ( | $ | | |||||
Special items charge (2) | ( | ||||||||||||||
Interest income |
|
|
|
|
|
|
| | |||||||
Interest expense |
|
|
|
|
|
|
| ( | |||||||
Income before income taxes |
|
|
|
|
|
| $ | | |||||||
Total assets | $ | | $ | | $ | | $ | ( | $ | | |||||
Capital expenditures | | | | — | | ||||||||||
Depreciation and amortization | | | | ( | | ||||||||||
| (1) | In the three months ended June 30, 2025, special items primarily include Rationalization and asset impairment net charges of $ |
| (2) | In the three months ended June 30, 2024, special items include Rationalization and asset impairment net charges of $ |
| (3) | Other segment expenses primarily include: |
| a. | Selling, general & administrative expenses – including bonus and research and development expenses. |
| b. | Rationalization and asset impairment net charges – refer to Note 6 for further discussion. |
13
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The Harris | |||||||||||||||
Americas | International | Products | Corporate / | ||||||||||||
| Welding |
| Welding |
| Group |
| Eliminations |
| Consolidated | ||||||
Six Months Ended June 30, 2025 |
|
|
| ||||||||||||
Net sales | $ | | $ | | $ | | $ | — | $ | | |||||
Inter-segment sales |
| |
| |
| |
| ( | — | ||||||
Total | | | | ( | | ||||||||||
Cost of goods sold | | | | ( | | ||||||||||
Other segment expenses (3) | | | | | | ||||||||||
EBIT | | | | ( | | ||||||||||
Special items charge (1) |
| |
| |
| |
| | | ||||||
Adjusted EBIT | $ | | $ | | $ | | $ | ( | $ | | |||||
Special items charge (1) | ( | ||||||||||||||
Interest income |
|
|
|
|
|
|
| | |||||||
Interest expense |
|
|
|
|
|
|
| ( | |||||||
Income before income taxes |
|
|
|
|
|
| $ | | |||||||
Total assets | $ | | $ | | $ | | $ | ( | $ | | |||||
Capital expenditures | | | | — | | ||||||||||
Depreciation and amortization | | | | ( | | ||||||||||
Six Months Ended June 30, 2024 |
|
|
| ||||||||||||
Net sales | $ | | $ | | $ | | $ | — | $ | | |||||
Inter-segment sales |
| |
| |
| |
| ( | — | ||||||
Total | | | | ( | | ||||||||||
Cost of goods sold | | | | ( | | ||||||||||
Other segment expenses (3) | | | | | | ||||||||||
EBIT | | | | ( | | ||||||||||
Special items charge (2) |
| |
| |
| |
| | | ||||||
Adjusted EBIT | $ | | $ | | $ | | $ | ( | $ | | |||||
Special items charge (2) | ( | ||||||||||||||
Interest income |
|
|
|
|
|
|
| | |||||||
Interest expense |
|
|
|
|
|
|
| ( | |||||||
Income before income taxes |
|
|
|
|
|
| $ | | |||||||
Total assets | $ | | $ | | $ | | $ | ( | $ | | |||||
Capital expenditures | | | | — | | ||||||||||
Depreciation and amortization | | | | ( | | ||||||||||
| (1) | In the six months ended June 30, 2025, special items primarily include Rationalization and asset impairment net charges of $ |
| (2) | In the six months ended June 30, 2024, special items include Rationalization and asset impairment net charges of $ |
| (3) | Other segment expenses primarily include: |
| a. | Selling, general & administrative expenses – including bonus and research and development expenses. |
| b. | Rationalization and asset impairment net charges – refer to Note 6 for further discussion. |
14
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS
The Company has rationalization plans within all
At June 30, 2025 and December 31, 2024, rationalization liabilities of $
The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital. The Company continues to evaluate its cost structure and additional rationalization actions may result in charges in future periods.
The following table summarizes the activity related to rationalization liabilities for the six months ended June 30, 2025:
| Americas | International |
| The Harris Products |
| |||||||
Welding | Welding |
| Group |
| Consolidated | |||||||
Balance at December 31, 2024 | $ | | $ | | $ | | $ | | ||||
Payments and other adjustments |
| ( |
| ( |
| ( |
| ( | ||||
| |
| |
| |
| | |||||
Balance at June 30, 2025 | $ | | $ | | $ | | $ | | ||||
NOTE 7 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ("AOCI")
The following tables set forth the total changes in AOCI by component, net of taxes:
Three Months Ended June 30, 2025 | ||||||||||||
Unrealized gain | ||||||||||||
(loss) on derivatives | ||||||||||||
designated and | Defined benefit | Currency | ||||||||||
qualifying as cash | pension plan | translation | ||||||||||
flow hedges | activity | adjustment | Total | |||||||||
Balance at March 31, 2025 | $ | | $ | ( | $ | ( | $ | ( | ||||
Other comprehensive income before reclassification |
| | | | | |||||||
Amounts reclassified from AOCI |
| ( | ( | | ( | |||||||
Net current-period other comprehensive income (loss) |
| |
| ( |
| |
| | ||||
Balance at June 30, 2025 | $ | | $ | ( | $ | ( | $ | ( | ||||
15
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
Three Months Ended June 30, 2024 | ||||||||||||
Unrealized gain | ||||||||||||
(loss) on derivatives | ||||||||||||
designated and | Defined benefit | Currency | ||||||||||
qualifying as cash | pension plan | translation | ||||||||||
flow hedges | activity | adjustment | Total | |||||||||
Balance at March 31, 2024 | $ | | $ | ( | $ | ( | $ | ( | ||||
Other comprehensive loss before reclassification |
| ( |
| |
| ( |
| ( | ||||
Amounts reclassified from AOCI |
| ( |
| |
| |
| ( | ||||
Net current-period other comprehensive (loss) income |
| ( |
| |
| ( |
| ( | ||||
Balance at June 30, 2024 | $ | | $ | ( | $ | ( | $ | ( | ||||
Six Months Ended June 30, 2025 | ||||||||||||
Unrealized gain | ||||||||||||
(loss) on derivatives | ||||||||||||
designated and | Defined benefit | Currency | ||||||||||
qualifying as cash | pension plan | translation | ||||||||||
flow hedges | activity | adjustment | Total | |||||||||
Balance at December 31, 2024 | $ | | $ | ( | $ | ( | $ | ( | ||||
Other comprehensive income before reclassification |
| | | | | |||||||
Amounts reclassified from AOCI |
| ( | ( | | ( | |||||||
Net current-period other comprehensive income (loss) |
| |
| ( |
| |
| | ||||
Balance at June 30, 2025 | $ | | $ | ( | $ | ( | $ | ( | ||||
Six Months Ended June 30, 2024 | ||||||||||||
Unrealized gain | ||||||||||||
(loss) on derivatives | ||||||||||||
designated and | Defined benefit | Currency | ||||||||||
qualifying as cash | pension plan | translation | ||||||||||
flow hedges | activity | adjustment | Total | |||||||||
Balance at December 31, 2023 | $ | | $ | ( | $ | ( | $ | ( | ||||
Other comprehensive income (loss) before reclassification |
| |
| |
| ( |
| ( | ||||
Amounts reclassified from AOCI |
| ( |
| |
| |
| ( | ||||
Net current-period other comprehensive income (loss) |
| |
| |
| ( |
| ( | ||||
Balance at June 30, 2024 | $ | | $ | ( | $ | ( | $ | ( | ||||
NOTE 8 — INVENTORIES
Inventories in the Condensed Consolidated Balance Sheets are comprised of the following components:
| ||||||
| June 30, 2025 |
| December 31, 2024 | |||
Raw materials | $ | | $ | | ||
Work-in-process |
| |
| | ||
Finished goods |
| |
| | ||
Total | $ | | $ | | ||
At both June 30, 2025 and December 31, 2024, approximately
16
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
NOTE 9 — LEASES
The table below summarizes the right-of-use assets and lease liabilities in the Company’s Condensed Consolidated Balance sheets:
Operating Leases |
| Balance Sheet Classification |
| June 30, 2025 |
| December 31, 2024 | ||
Right-of-use assets |
| $ | | $ | | |||
Current liabilities |
| $ | | $ | | |||
Noncurrent liabilities |
|
| |
| | |||
Total lease liabilities |
|
| $ | | $ | | ||
Total lease expense, which is included in Cost of goods sold and Selling, general & administrative expenses in the Company’s Consolidated Statements of Income, was $
The total future minimum lease payments for noncancelable operating leases were as follows:
| June 30, 2025 | ||
2025 | $ | | |
2026 |
| | |
2027 |
| | |
2028 |
| | |
2029 |
| | |
After 2029 |
| | |
Total lease payments | $ | | |
Less: Imputed interest |
| | |
Operating lease liabilities | $ | | |
As of June 30, 2025 the weighted average remaining lease term is
17
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
NOTE 10 — DEBT
At June 30, 2025 and December 31, 2024, debt consisted of the following:
|
|
| June 30, 2025 |
| December 31, 2024 | ||||
Long-term debt |
| Interest Rate |
|
|
|
|
| ||
Senior Unsecured Notes | |||||||||
2015 Notes - Series A due August 20, 2025 | % | $ | | $ | | ||||
2015 Notes - Series B due August 20, 2030 | % | | | ||||||
2015 Notes - Series C due April 1, 2035 | % | | | ||||||
2015 Notes - Series D due April 1, 2045 | % | | | ||||||
2016 Notes - Series A due October 20, 2028 | % | | | ||||||
2016 Notes - Series B due October 20, 2033 | % | | | ||||||
2016 Notes - Series C due October 20, 2037 | % | | | ||||||
2016 Notes - Series D due October 20, 2041 | % | | | ||||||
2024 Notes - Series A due August 22, 2029 | % | | | ||||||
2024 Notes - Series B due August 22, 2031 | % | | | ||||||
2024 Notes - Series C due June 20, 2034 | % | | | ||||||
Other borrowings due through 2030 | Variable(1) |
| |
| | ||||
| |
| | ||||||
Plus interest rate swap adjustment | | | |||||||
Less current portion |
| |
| | |||||
Less debt issuance costs | |
| | ||||||
Long-term debt, less current portion |
| |
| | |||||
Short-term debt |
| ||||||||
Amounts due to banks | Variable(2) |
| |
| | ||||
Current portion long-term debt |
| |
| | |||||
Total short-term debt |
| |
| | |||||
Total debt | $ | | $ | | |||||
| (1) | Interest rate was |
| (2) | Weighted average interest rate of other borrowings related to liquidity needs in a hyperinflationary country was |
18
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
Senior Unsecured Notes
As of June 30, 2025, the Company’s total weighted average effective interest rate and remaining weighted average tenure of the senior unsecured notes is
Revolving Credit Agreements
On June 20, 2024, the Company entered into a $
The Company has other lines of credit and debt agreements totaling $
Fair Value of Debt
At June 30, 2025 and December 31, 2024, the fair value of long-term debt, including the current portion, was approximately $
NOTE 11 — INCOME TAXES
The Company recognized $
The effective tax rate was lower for the six months ended June 30, 2025, as compared with the same period in 2024, primarily due to mix of earnings and timing of discrete tax items.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is currently assessing the impact on its consolidated financial statements.
19
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
NOTE 12 — DERIVATIVES
The Company uses derivative instruments to manage exposures to currency exchange rates, interest rates and commodity prices arising in the normal course of business. Both at inception and on an ongoing basis, the derivative instruments that qualify for hedge accounting are assessed as to their effectiveness, when applicable. Hedge ineffectiveness was immaterial in the three and six months ended June 30, 2025 and 2024.
The Company is subject to the credit risk of the counterparties to derivative instruments. Counterparties include a number of major banks and financial institutions. None of the concentrations of risk with any individual counterparty was considered significant at June 30, 2025. The Company does not expect any counterparties to fail to meet their obligations.
Cash Flow Hedges
Certain foreign currency forward contracts are qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $
The Company had interest rate forward starting swap agreements that were qualified and designated as cash flow hedges that were terminated during 2024. Upon termination of the contracts in 2024, the company had a gain of $
Net Investment Hedges
The Company has foreign currency forward contracts that qualify and are designated as net investment hedges. The dollar equivalent gross notional amount of these contracts was $
Derivatives Not Designated as Hedging Instruments
The Company has certain foreign exchange forward contracts that are not designated as hedges. These derivatives are held as economic hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $
Fair values of derivative instruments in the Company’s Condensed Consolidated Balance Sheets consisted of the following:
June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
Other | Other | Other | Other | ||||||||||||||||||||
Current | Current | Other | Other | Current | Current | Other | Other | ||||||||||||||||
Derivatives by hedge designation | Assets |
| Liabilities |
| Assets |
| Liabilities |
| Assets |
| Liabilities |
| Assets |
| Liabilities | ||||||||
Designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Foreign exchange contracts | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | |||||||
Net investment contracts | | | | | | | | | |||||||||||||||
Not designated as hedging instruments: |
| ||||||||||||||||||||||
Foreign exchange contracts |
| | | | |
| |
| |
| |
| | ||||||||||
Total derivatives | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | |||||||
20
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following:
|
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||||||||
Derivatives by hedge designation |
| Classification of gain (loss) |
| 2025 |
| 2024 |
| 2025 |
| 2024 | ||||
Not designated as hedges: |
|
|
|
|
|
|
| |||||||
Foreign exchange contracts | Selling, general | $ | | $ | ( | $ | | $ | ( | |||||
The effects of designated hedges on AOCI consisted of the following:
|
| ||||||
Total gain (loss) recognized in AOCI, net of tax |
| June 30, 2025 |
| December 31, 2024 |
| ||
Foreign exchange contracts | $ | | $ | ( | |||
Forward starting swap agreements | | | |||||
Net investment contracts | ( |
| | ||||
The Company expects a gain of $
The effects of designated hedges on the Company’s Consolidated Statements of Income consisted of the following:
|
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||||||||
(Loss) gain recognized in the | ||||||||||||||
Derivative type |
| Consolidated Statements of Income: |
| 2025 |
| 2024 |
| 2025 |
| 2024 | ||||
Foreign exchange contracts |
| Sales | $ | | $ | | $ | ( | $ | | ||||
| Cost of goods sold |
| |
| |
| |
| | |||||
Forward starting swap agreements | Interest expense, net | | | | | |||||||||
NOTE 13 - FAIR VALUE
The following table provides a summary of assets and liabilities as of June 30, 2025, measured at fair value on a recurring basis:
|
| Quoted Prices in |
|
| ||||||||
Active Markets for | ||||||||||||
Identical Assets or | Significant Other | Significant | ||||||||||
Balance as of | Liabilities | Observable Inputs | Unobservable | |||||||||
Description |
| June 30, 2025 |
| (Level 1) |
| (Level 2) |
| Inputs (Level 3) | ||||
Assets: |
|
|
|
|
|
|
|
| ||||
Foreign exchange contracts | $ | | $ | | $ | | $ | | ||||
Pension surplus | | | | | ||||||||
Total assets | $ | | $ | | $ | | $ | | ||||
Liabilities: |
|
|
|
|
|
|
|
| ||||
Foreign exchange contracts | $ | | $ | | $ | | $ | | ||||
Net investment contracts | | | | | ||||||||
Deferred compensation |
| |
| |
| |
| | ||||
Total liabilities | $ | | $ | | $ | | $ | | ||||
21
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The following table provides a summary of assets and liabilities as of December 31, 2024, measured at fair value on a recurring basis:
|
| Quoted Prices in |
|
| ||||||||
Active Markets for | ||||||||||||
Identical Assets or | Significant Other | Significant | ||||||||||
Balance as of | Liabilities | Observable Inputs | Unobservable | |||||||||
Description |
| December 31, 2024 |
| (Level 1) |
| (Level 2) |
| Inputs (Level 3) | ||||
Assets: |
|
|
|
|
|
|
|
| ||||
Foreign exchange contracts | $ | | $ | | $ | | $ | | ||||
Net investment contracts | | | | | ||||||||
Pension Surplus |
| |
| |
| |
| | ||||
Total assets | $ | | $ | | $ | | $ | | ||||
Liabilities: |
|
|
|
|
|
|
|
| ||||
Foreign exchange contracts | $ | | $ | | $ | | $ | | ||||
Deferred compensation |
| |
| |
| |
| | ||||
Total liabilities | $ | | $ | | $ | | $ | | ||||
The fair value of the Company’s pension surplus assets are based on quoted market prices in active markets and are included in the Level 1 fair value hierarchy. The pension surplus assets were invested in money market and short-term duration bond funds at both June 30, 2025 and December 31, 2024.
The Company’s derivative contracts are valued at fair value using the market approach. The Company measures the fair value of foreign exchange contracts and net investment contracts using Level 2 inputs based on observable spot and forward rates in active markets.
The deferred compensation liability is the Company’s obligation under its executive deferred compensation plan. The Company measures the fair value of the liability using the market values of the participants’ underlying investment fund elections.
The fair value of Cash and cash equivalents, Accounts receivable, Short-term debt excluding the current portion of Long-term debt and Trade accounts payable approximated book value due to the short-term nature of these instruments at both June 30, 2025 and December 31, 2024.
The Company has various financial instruments, including cash and cash equivalents, short and long-term debt and forward contracts. While these financial instruments are subject to concentrations of credit risk, the Company has minimized this risk by entering into arrangements with a number of major banks and financial institutions and investing in several high-quality instruments. The Company does not expect any counterparties to fail to meet their obligations.
NOTE 14 – SUPPLIER FINANCING PROGRAM
The Company’s suppliers, at the supplier’s sole discretion, are able to factor receivables due from the Company to a financial institution on terms directly negotiated with the financial institution without affecting the Company’s balance sheet classification of the corresponding payable. The Company pays the financial institution the stated amount of the confirmed invoices from its designated suppliers on the original maturity dates of the invoices. At June 30, 2025 and December 31, 2024, Trade accounts payable included $
| (1) |
22
Table of Contents
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Dollars in thousands, except per share amounts)
This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read together with the Company’s unaudited consolidated financial statements and other financial information included elsewhere in this Quarterly Report on Form 10-Q.
General
The Company is the world’s largest designer and manufacturer of arc welding and cutting products, manufacturing a broad line of arc welding equipment, consumable welding products and other welding and cutting products. Welding products include arc welding power sources, computer numerical control and plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, fume extraction equipment, consumable electrodes, fluxes, welding accessories and specialty welding consumables and fabrication. The Company’s product offering also includes oxy-fuel cutting systems and regulators and torches used in oxy-fuel welding, cutting and brazing. In addition, the Company has a leading global position in the brazing and soldering alloys market.
The Company’s products are sold globally. In the Americas, products are sold principally through industrial distributors, retailers and also directly to users of welding products. Outside of the Americas, the Company has an international sales organization comprised of Company employees and agents who sell products from the Company’s various manufacturing sites to distributors and product users.
The Company’s business units are aligned into three operating segments. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global oxy-fuel cutting, soldering and brazing businesses as well as its retail business in the United States.
In 2025, the U.S. government announced a series of tariffs on imported goods into the U.S., which prompted retaliatory actions from some of its trading partners. The Company has taken actions to address the impact of these initial trade policies and while the Company cannot predict the ultimate impact on its business, the Company will continue to monitor evolving trade negotiations to determine if additional measures are warranted.
23
Table of Contents
Results of Operations
The following table shows the Company’s results of operations:
Three Months Ended June 30, |
| |||||||||||||||
Favorable (Unfavorable) |
| |||||||||||||||
2025 | 2024 | 2025 vs. 2024 | ||||||||||||||
Amount |
| % of Sales |
| Amount |
| % of Sales |
| $ |
| % |
| |||||
Net sales | $ | 1,088,673 | $ | 1,021,683 |
| $ | 66,990 |
| 6.6 | % | ||||||
Cost of goods sold |
| 683,126 |
|
| 637,870 |
|
| (45,256) |
| (7.1) | % | |||||
Gross profit |
| 405,547 |
| 37.3 | % |
| 383,813 |
| 37.6 | % |
| 21,734 |
| 5.7 | % | |
Selling, general & administrative expenses |
| 210,861 |
| 19.4 | % |
| 208,485 |
| 20.4 | % |
| (2,376) |
| (1.1) | % | |
Rationalization and asset impairment net charges |
| 2,542 |
| 0.2 | % |
| 26,490 |
| 2.6 | % |
| 23,948 |
| 90.4 | % | |
Operating income |
| 192,144 |
| 17.6 | % |
| 148,838 |
| 14.6 | % |
| 43,306 |
| 29.1 | % | |
Interest expense, net |
| 12,619 |
|
| 10,661 |
|
| (1,958) |
| (18.4) | % | |||||
Other income (expense) |
| 4,034 |
|
| (1,553) |
|
| 5,587 |
| 359.8 | % | |||||
Income before income taxes |
| 183,559 |
| 16.9 | % |
| 136,624 |
| 13.4 | % |
| 46,935 |
| 34.4 | % | |
Income taxes |
| 40,163 |
|
| 34,916 |
|
| (5,247) |
| (15.0) | % | |||||
Effective tax rate |
| 21.9 | % |
|
| 25.6 | % |
| 3.7 | % | ||||||
Net income | $ | 143,396 |
| 13.2 | % | $ | 101,708 |
| 10.0 | % | $ | 41,688 |
| 41.0 | % | |
Diluted earnings per share | $ | 2.56 | $ | 1.77 |
|
| $ | 0.79 |
| 44.6 | % | |||||
Six Months Ended June 30, |
| |||||||||||||||
Favorable (Unfavorable) |
| |||||||||||||||
2025 | 2024 | 2025 vs. 2024 | ||||||||||||||
Amount |
| % of Sales |
| Amount |
| % of Sales |
| $ |
| % |
| |||||
Net sales | $ | 2,093,061 | $ | 2,002,880 |
| $ | 90,181 |
| 4.5 | % | ||||||
Cost of goods sold |
| 1,322,066 |
|
| 1,250,668 |
|
| (71,398) |
| (5.7) | % | |||||
Gross profit |
| 770,995 |
| 36.8 | % |
| 752,212 |
| 37.6 | % |
| 18,783 |
| 2.5 | % | |
Selling, general & administrative expenses |
| 407,526 |
| 19.5 | % |
| 407,232 |
| 20.3 | % |
| (294) |
| (0.1) | % | |
Rationalization and asset impairment net charges |
| 6,407 |
| 0.3 | % |
| 31,095 |
| 1.6 | % |
| 24,688 |
| 79.4 | % | |
Operating income |
| 357,062 |
| 17.1 | % |
| 313,885 |
| 15.7 | % |
| 43,177 |
| 13.8 | % | |
Interest expense, net |
| 24,746 |
|
| 19,440 |
|
| (5,306) |
| (27.3) | % | |||||
Other income |
| 4,478 |
|
| 709 |
|
| 3,769 |
| 531.6 | % | |||||
Income before income taxes |
| 336,794 |
| 16.1 | % |
| 295,154 |
| 14.7 | % |
| 41,640 |
| 14.1 | % | |
Income taxes |
| 74,911 |
|
| 70,031 |
|
| (4,880) |
| (7.0) | % | |||||
Effective tax rate |
| 22.2 | % |
|
| 23.7 | % |
| 1.5 | % | ||||||
Net income | $ | 261,883 |
| 12.5 | % | $ | 225,123 |
| 11.2 | % | $ | 36,760 |
| 16.3 | % | |
Diluted earnings per share | $ | 4.66 | $ | 3.91 |
|
| $ | 0.75 |
| 19.2 | % | |||||
24
Table of Contents
Net Sales:
The following table summarizes the impact of volume, acquisitions, price and foreign currency exchange rates on Net sales on a consolidated basis:
Three Months Ended June 30, |
|
| Change in Net Sales due to: |
|
| ||||||||||||||
Net Sales | Foreign | Net Sales | |||||||||||||||||
| 2024 |
| Volume |
| Price |
| Acquisitions |
| Exchange |
| 2025 |
| |||||||
Lincoln Electric Holdings, Inc. | $ | 1,021,683 | $ | (23,847) | $ | 52,975 | $ | 30,507 |
| $ | 7,355 | $ | 1,088,673 | ||||||
% Change |
|
|
|
|
|
|
|
|
|
| |||||||||
Lincoln Electric Holdings, Inc. |
| (2.3) | % |
| 5.2 | % |
| 3.0 | % | 0.7 | % | 6.6 | % | ||||||
Six Months Ended June 30, |
|
| Change in Net Sales due to: |
|
| ||||||||||||||
Net Sales | Foreign | Net Sales | |||||||||||||||||
| 2024 |
| Volume |
| Acquisitions |
| Price |
| Exchange |
| 2025 |
| |||||||
Lincoln Electric Holdings, Inc. | $ | 2,002,880 | $ | (61,448) | $ | 78,706 | $ | 78,649 |
| $ | (5,726) | $ | 2,093,061 | ||||||
% Change |
|
|
|
|
|
|
|
|
|
| |||||||||
Lincoln Electric Holdings, Inc. |
| (3.1) | % |
| 3.9 | % |
| 3.9 | % | (0.2) | % | 4.5 | % | ||||||
Net sales increased for the three and six months ended June 30, 2025 primarily due to an increase in organic sales and a benefit from acquisitions. The increase in organic sales for both the three and six months ended June 30, 2025 is driven by an increase in pricing primarily due to higher input costs, partially offset by lower volumes.
Gross Profit:
Gross profit as a percentage of sales decreased 0.3% for the three months ended June 30, 2025 as compared to the same 2024 period, driven by lower volumes offset by higher operational efficiencies. Gross profit as a percentage of sales decreased 0.8% for the six months ended June 30, 2025 as compared to the same 2024 period, driven by lower volumes partially offset by higher operational efficiencies. The three and six months ended June 30, 2025 includes last-in, first-out (“LIFO”) charges of $8,523 and $10,284, respectively, which are primarily due to rising input costs. This compares with a benefit of $2,244 and $2,774 in the comparable 2024 periods.
Selling, General & Administrative ("SG&A") Expenses:
SG&A expenses increased in the three and six months ended June 30, 2025 as compared to the same 2024 periods, primarily due to increase in employee costs and acquisitions, partially offset by effective cost management.
Operating Income:
Operating income as a percentage of sales was 17.6% for the three months ended June 30, 2025 as compared to 14.6% in the prior year period. Excluding special items, Operating income as a percentage of sales was 17.9% for the three months ended June 30, 2025 as compared to 17.4% in the prior year period. Operating income as a percentage of sales was 17.1% for the six months ended June 30, 2025 as compared to 15.7% in the prior year period. Excluding special items, Operating income as a percentage of sales, was 17.4% for both comparable periods. Refer to explanations above for additional details. Also refer to Non-GAAP Financial Measures for a reconciliation of Adjusted operating income.
Rationalization and Asset Impairment Net Charges:
Charges in 2025 relate to rationalization plans initiated within all three reportable segments. Charges in 2024 primarily relate to rationalization plans initiated within International Welding, including the impact of the Company’s disposition of its Russian entity. Refer to Note 6 to the consolidated financial statements for further information on the Company’s rationalization plans.
25
Table of Contents
Income Taxes:
The effective tax rate was lower for the three and six months ended June 30, 2025 as compared to the same periods in 2024, primarily due to mix of earnings and timing of discrete tax items.
Segment Results
The following table presents components of sales by segment:
Three Months Ended June 30, |
| Change in Net Sales due to: |
|
|
| |||||||||||||
Net Sales | Foreign | Net Sales | ||||||||||||||||
2024 |
| Volume (1) |
| Price (2) |
| Acquisitions (3) |
| Exchange |
| 2025 | ||||||||
Operating Segments | ||||||||||||||||||
Americas Welding | $ | 648,936 | $ | (22,346) | $ | 42,265 | $ | 30,192 |
| $ | (2,317) | $ | 696,730 | |||||
International Welding | 238,758 |
| (16,172) |
| 852 |
| 315 |
| 9,071 |
| 232,824 | |||||||
The Harris Products Group | 133,989 |
| 14,671 |
| 9,858 |
| — |
| 601 |
| 159,119 | |||||||
% Change |
|
|
|
|
|
|
|
|
|
|
| |||||||
Americas Welding | (3.4) | % |
| 6.5 | % | 4.7 | % | (0.4) | % | 7.4 | % | |||||||
International Welding | (6.8) | % |
| 0.4 | % | 0.1 | % | 3.8 | % | (2.5) | % | |||||||
The Harris Products Group | 11.0 | % |
| 7.4 | % | — | 0.4 | % | 18.8 | % | ||||||||
Six Months Ended June 30, | Change in Net Sales due to: | |||||||||||||||||
Net Sales |
| Foreign |
| Net Sales |
| |||||||||||||
2024 | Volume (1) |
| Price (2) |
| Acquisitions (3) |
| Exchange | 2025 | ||||||||||
Operating Segments | ||||||||||||||||||
Americas Welding | $ | 1,273,035 | $ | (47,086) | $ | 55,634 | $ | 77,519 |
| $ | (9,265) | $ | 1,349,837 | |||||
International Welding | 474,519 |
| (29,820) |
| 1,680 |
| 1,130 |
| 4,376 |
| 451,885 | |||||||
The Harris Products Group | 255,326 |
| 15,458 |
| 21,392 |
| — |
| (837) |
| 291,339 | |||||||
% Change |
|
|
|
|
|
|
|
|
|
|
| |||||||
Americas Welding | (3.7) | % |
| 4.4 | % | 6.1 | % | (0.8) | % | 6.0 | % | |||||||
International Welding | (6.3) | % |
| 0.4 | % | 0.2 | % | 0.9 | % | (4.8) | % | |||||||
The Harris Products Group | 6.1 | % |
| 8.4 | — | (0.4) | % | 14.1 | % | |||||||||
| (1) | Decrease for the three and six months ended June 30, 2025 for Americas Welding and International Welding due to lower volumes on equipment sales. |
| (2) | Increase for all the segments due to price actions taken in response to higher input costs. |
| (3) | Increase for Americas Welding and International Welding due to the acquisitions discussed in Note 4 to the consolidated financial statements. |
Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the Adjusted EBIT profit measure. EBIT is defined as Operating income plus Other income (expense). EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.
26
Table of Contents
The following table presents Adjusted EBIT by segment:
Favorable (Unfavorable) |
| |||||||||||
Three Months Ended June 30, | 2025 vs. 2024 |
| ||||||||||
| 2025 |
| 2024 |
| $ |
| % |
| ||||
Americas Welding: |
|
|
|
|
|
|
| |||||
Net sales | $ | 696,730 | $ | 648,936 | $ | 47,794 | 7.4 | % | ||||
Inter-segment sales |
| 43,391 |
| 37,800 |
| 5,591 | 14.8 | % | ||||
Total Sales | $ | 740,121 | $ | 686,736 | 53,385 | 7.8 | % | |||||
Adjusted EBIT (4) | $ | 137,915 | $ | 136,651 | 1,264 | 0.9 | % | |||||
As a percent of total sales (1) |
| 18.6 | % |
| 19.9 | % | (1.3) | % | ||||
International Welding: |
|
|
|
|
| |||||||
Net sales | $ | 232,824 | $ | 238,758 | (5,934) | (2.5) | % | |||||
Inter-segment sales |
| 7,641 |
| 8,849 | (1,208) | (13.7) | % | |||||
Total Sales | $ | 240,465 | $ | 247,607 | (7,142) | (2.9) | % | |||||
Adjusted EBIT (5) | $ | 30,550 | $ | 25,709 | 4,841 | 18.8 | % | |||||
As a percent of total sales (2) |
| 12.7 | % |
| 10.4 | % | 2.3 | % | ||||
The Harris Products Group: |
|
|
|
|
| |||||||
Net sales | $ | 159,119 | $ | 133,989 | 25,130 | 18.8 | % | |||||
Inter-segment sales |
| 5,110 |
| 3,272 | 1,838 | 56.2 | % | |||||
Total Sales | $ | 164,229 | $ | 137,261 | 26,968 | 19.6 | % | |||||
Adjusted EBIT (6) | $ | 31,884 | $ | 24,923 | 6,961 | 27.9 | % | |||||
As a percent of total sales (3) |
| 19.4 | % |
| 18.2 | % | 1.2 | % | ||||
Corporate / Eliminations: |
|
|
|
|
| |||||||
Inter-segment sales | $ | (56,142) | $ | (49,921) | (6,221) | (12.5) | % | |||||
Adjusted EBIT (7) |
| (1,200) |
| (6,264) | 5,064 | 80.8 | % | |||||
Consolidated: |
|
|
|
|
| |||||||
Net sales | $ | 1,088,673 | $ | 1,021,683 | 66,990 | 6.6 | % | |||||
Net income | $ | 143,396 | $ | 101,708 | 41,688 | 41.0 | % | |||||
As a percent of total sales |
| 13.2 | % |
| 10.0 | % | 3.2 | % | ||||
Adjusted EBIT (8) | $ | 199,149 | $ | 181,019 | 18,130 | 10.0 | % | |||||
As a percent of sales |
| 18.3 | % |
| 17.7 | % |
| 0.6 | % | |||
| (1) | Decrease for the three months ended June 30, 2025 as compared to June 30, 2024 primarily driven by the unfavorable impact of lower volumes and the impact of acquisitions. |
| (2) | Increase for the three months ended June 30, 2025 as compared to June 30, 2024 primarily reflects effective cost management and a favorable prior year comparison due to operational inefficiencies in 2024 which were not repeated in the current year. |
| (3) | Increase for the three months ended June 30, 2025 as compared to June 30, 2024 primarily reflects higher organic sales, effective cost management and operational improvements. |
| (4) | The three months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $905 as discussed in Note 6. |
| (5) | The three months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $1,551 as discussed in Note 6. The three months ended June 30, 2024 exclude Rationalization and asset impairment net charges of $26,284 primarily due to the impact of the Company’s disposition of its Russian entity as discussed in Note 6 and a loss on asset disposal of $4,950. |
| (6) | The three months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $86 as discussed in Note 6. |
| (7) | The three months ended June 30, 2025 exclude acquisition transaction costs of $429 as discussed in Note 4. The three months ended June 30, 2024 exclude acquisition transaction costs of $2,182. |
| (8) | See non-GAAP Financial Measures for a reconciliation of Net income as reported and Adjusted EBIT. |
27
Table of Contents
|
|
|
| ||||||||||
Favorable (Unfavorable) |
| ||||||||||||
Six Months Ended June 30, | 2025 vs. 2024 |
| |||||||||||
| 2025 |
| 2024 |
| $ |
| % |
|
| ||||
Americas Welding: |
|
|
|
|
|
|
|
| |||||
Net sales | $ | 1,349,837 | $ | 1,273,035 | $ | 76,802 | 6.0 | % | |||||
Inter-segment sales |
| 73,763 |
| 67,778 |
| 5,985 | 8.8 | % | |||||
Total Sales | $ | 1,423,600 | $ | 1,340,813 | 82,787 | 6.2 | % | ||||||
Adjusted EBIT (4) | $ | 262,113 | $ | 272,750 | (10,637) | (3.9) | % | ||||||
As a percent of total sales (1) |
| 18.4 | % |
| 20.3 | % | (1.9) | % | |||||
International Welding: |
|
|
|
| |||||||||
Net sales | $ | 451,885 | $ | 474,519 | (22,634) | (4.8) | % | ||||||
Inter-segment sales |
| 14,473 |
| 17,257 | (2,784) | (16.1) | % | ||||||
Total Sales | $ | 466,358 | $ | 491,776 | (25,418) | (5.2) | % | ||||||
Adjusted EBIT (5) | $ | 53,562 | $ | 53,486 | 76 | 0.1 | % | ||||||
As a percent of total sales (2) |
| 11.5 | % |
| 10.9 | % | 0.6 | % | |||||
The Harris Products Group: |
|
|
|
| |||||||||
Net sales | $ | 291,339 | $ | 255,326 | 36,013 | 14.1 | % | ||||||
Inter-segment sales |
| 9,094 |
| 6,365 | 2,729 | 42.9 | % | ||||||
Total Sales | $ | 300,433 | $ | 261,691 | 38,742 | 14.8 | % | ||||||
Adjusted EBIT (6) | $ | 56,213 | $ | 44,802 | 11,411 | 25.5 | % | ||||||
As a percent of total sales (3) |
| 18.7 | % |
| 17.1 | % | 1.6 | % | |||||
Corporate / Eliminations: |
|
|
|
| |||||||||
Inter-segment sales | $ | (97,330) | $ | (91,400) | (5,930) | (6.5) | % | ||||||
Adjusted EBIT (7) |
| (2,850) |
| (16,343) | 13,493 | 82.6 | % | ||||||
Consolidated: |
|
|
|
| |||||||||
Net sales | $ | 2,093,061 | $ | 2,002,880 | 90,181 | 4.5 | % | ||||||
Net income | $ | 261,883 | $ | 225,123 | 36,760 | 16.3 | % | ||||||
As a percent of total sales |
| 12.5 | % |
| 11.2 | % | 1.3 | % | |||||
Adjusted EBIT (8) | $ | 369,038 | $ | 354,695 | 14,343 | 4.0 | % | ||||||
As a percent of sales |
| 17.6 | % |
| 17.7 | % |
| (0.1) | % | ||||
| (1) | Decrease for the six months ended June 30, 2025 as compared to June 30, 2024 primarily driven by the unfavorable impact of lower volumes and the impact of acquisitions. |
| (2) | Increase for the six months ended June 30, 2025 as compared to June 30, 2024 primarily reflects effective cost management and a favorable prior year comparison due to operational inefficiencies in 2024 which were not repeated in the current year. |
| (3) | Increase for the six months ended June 30, 2025 as compared to June 30, 2024 primarily reflects higher organic sales, effective cost management and operational improvements. |
| (4) | The six months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $3,040 as discussed in Note 6. |
| (5) | The six months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $3,103 as discussed in Note 6. The six months ended June 30, 2024 exclude Rationalization and asset impairment net charges of $29,354 primarily due to the impact of the Company’s disposition of its Russian entity as discussed in Note 6 and a loss on asset disposal of $4,950. |
| (6) | The six months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $264 as discussed in Note 6. The six months ended June 30, 2024 exclude Rationalization and asset impairment net charges of $1,396 primarily due to restructuring activities as discussed in Note 6. |
28
Table of Contents
| (7) | The six months ended June 30, 2025 exclude acquisition transaction costs of $1,231 as discussed in Note 4. The six months ended June 30, 2024 exclude acquisition transaction costs of $3,944. |
| (8) | See non-GAAP Financial Measures for a reconciliation of Net income as reported and Adjusted EBIT. |
Non-GAAP Financial Measures
The Company reviews Adjusted operating income, Adjusted net income, Adjusted EBIT, Adjusted effective tax rate, Adjusted diluted earnings per share, Adjusted return on invested capital (“Adjusted ROIC”), Adjusted net operating profit after taxes, Cash conversion and Organic sales, all non-GAAP financial measures, in assessing and evaluating the Company’s underlying operating performance. These non-GAAP financial measures exclude the impact of special items on the Company’s reported financial results. Non-GAAP financial measures should be read in conjunction with the generally accepted accounting principles in the United States ("GAAP") financial measures, as non-GAAP measures are a supplement to, and not a replacement for, GAAP financial measures.
The following table presents the reconciliations of Operating income as reported to Adjusted operating income, Net income as reported to Adjusted net income and Adjusted EBIT, Effective tax rate as reported to Adjusted effective tax rate and Diluted earnings per share as reported to Adjusted diluted earnings per share:
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| |||||||||
| 2025 |
| 2024 |
| 2025 |
| 2024 |
| |||||
Operating income as reported | $ | 192,144 | $ | 148,838 | $ | 357,062 | $ | 313,885 | |||||
Special items (pre-tax): |
|
|
|
|
|
|
|
| |||||
Rationalization and asset impairment charges (1) |
| 2,542 |
| 26,490 |
| 6,407 |
| 31,095 | |||||
Acquisition transaction costs (2) |
| 429 |
| 2,182 |
| 1,231 |
| 3,944 | |||||
Amortization of step up in value of acquired inventories (3) |
| — |
| 112 |
| (140) |
| 112 | |||||
Adjusted operating income | $ | 195,115 | $ | 177,622 | $ | 364,560 | $ | 349,036 | |||||
As a percentage of net sales | 17.9 | % | 17.4 | % | 17.4 | % | 17.4 | % | |||||
Net income as reported | $ | 143,396 |
| $ | 101,708 | $ | 261,883 | $ | 225,123 | ||||
Special items: |
|
|
|
|
| ||||||||
Rationalization and asset impairment charges (1) |
| 2,542 |
|
| 26,490 |
| 6,407 | 31,095 | |||||
Acquisition transaction costs (2) |
| 429 |
|
| 2,182 |
| 1,231 | 3,944 | |||||
Amortization of step up in value of acquired inventories (3) |
| — |
|
| 112 |
| (140) | 112 | |||||
Loss on asset disposal (4) |
| — |
|
| 4,950 |
| — | 4,950 | |||||
Tax effect of Special items (5) |
| (755) |
|
| (1,182) |
| (1,913) | (2,308) | |||||
Adjusted net income | 145,612 |
| 134,260 | 267,468 | 262,916 | ||||||||
Interest expense, net |
| 12,619 |
|
| 10,661 |
| 24,746 | 19,440 | |||||
Income taxes as reported |
| 40,163 |
|
| 34,916 |
| 74,911 | 70,031 | |||||
Tax effect of Special items (4) |
| 755 |
|
| 1,182 |
| 1,913 | 2,308 | |||||
Adjusted EBIT | $ | 199,149 |
| $ | 181,019 | $ | 369,038 | $ | 354,695 | ||||
Effective tax rate as reported |
| 21.9 | % |
| 25.6 | % | 22.2 | % | 23.7 | % | |||
Net special item tax impact |
| 0.0 | % |
| (4.4) | % | 0.1 | % | (2.1) | % | |||
Adjusted effective tax rate |
| 21.9 | % |
| 21.2 | % | 22.3 | % | 21.6 | % | |||
Diluted earnings per share as reported | $ | 2.56 |
| $ | 1.77 | $ | 4.66 | $ | 3.91 | ||||
Special items per share |
| 0.04 |
|
| 0.57 |
| 0.10 | 0.66 | |||||
Adjusted diluted earnings per share | $ | 2.60 |
| $ | 2.34 | $ | 4.76 | $ | 4.57 | ||||
| (1) | Primarily related to restructuring activities as discussed in Note 6 to the consolidated financial statements. |
| (2) | Transaction costs related to acquisitions which are included in Selling, general & administrative expenses. |
| (3) | Costs related to acquisitions which are included in Cost of goods sold. |
| (4) | Loss on asset disposal included in Other income (expense). |
29
Table of Contents
| (5) | Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate. The applicable tax rates reflect the taxable jurisdiction and nature of each Special item. |
Liquidity and Capital Resources
Overview
The Company’s primary sources of liquidity are operating cash flows and revolving credit facilities. As of June 30, 2025, the Company had $299,481 of cash and cash equivalents on hand and $5,319 of outstanding borrowings under its $1,033,662 revolving credit facilities.
The Company’s capital allocation priorities include internal investment to support existing operations and organic growth, investment in acquisitions to grow the business and then returning capital to shareholders through dividends and share repurchases.
The Company’s cash flow from operations can be cyclical. In assessing liquidity, the Company reviews working capital measurements to define areas for improvement. Management anticipates the Company will be able to satisfy cash requirements for its ongoing businesses for the foreseeable future primarily with cash generated by operations, existing cash balances, borrowings under its existing credit facilities and raising debt in capital markets.
The Company continues to expand globally and periodically consider acquisitions that would involve significant investments. The Company can fund its global expansion plans with operational cash flow, but a significant acquisition may require access to capital markets, in particular, the long-term debt market, as well as the syndicated bank loan market. The Company’s financing strategy is to fund itself at the lowest after-tax cost of funding. Where possible, the Company utilizes operational cash flows and raises capital in the most efficient market, usually the United States, and then lends funds to the specific subsidiary needing or requiring funding. If additional acquisitions providing appropriate financial benefits become available, additional expenditures may be made.
Cash Flow
The following table reflects changes in key cash flow measures:
| Six Months Ended June 30, |
| ||||||||
2025 |
| 2024 |
| $ Change | ||||||
Cash provided by operating activities (1) | $ | 329,521 | $ | 303,981 | $ | 25,540 | ||||
Cash used by investing activities |
| (79,470) |
| (200,746) |
| 121,276 | ||||
Capital expenditures |
| (52,392) |
| (49,395) |
| (2,997) | ||||
Acquisition of businesses, net of cash acquired |
| (32,309) |
| (152,654) |
| 120,345 | ||||
Cash used by financing activities (2) |
| (317,709) |
| (218,452) |
| (99,257) | ||||
Payments on short-term borrowings |
| (5,206) |
| (578) |
| (4,628) | ||||
Proceeds from long-term borrowings | — | 400,000 | (400,000) | |||||||
Payments on long-term borrowings | (169) | (400,339) | 400,170 | |||||||
Purchase of shares for treasury |
| (233,824) |
| (160,820) |
| (73,004) | ||||
Cash dividends paid to shareholders |
| (84,904) |
| (81,696) |
| (3,208) | ||||
Decrease in Cash and cash equivalents |
| (77,781) |
| (121,115) |
| 43,334 | ||||
| (1) | Cash provided by operating activities increased for the six months ended June 30, 2025, compared with the six months ended June 30, 2024 primarily due to improved working capital. |
| (2) | Cash used by financing activities increased for the six months ended June 30, 2025, compared with the six months ended June 30, 2024 primarily due to the increase in purchases of shares for treasury. |
As of June 30, 2025, the Company had cash of $299,481, of which $257,675 was held by international subsidiaries.
30
Table of Contents
In July 2025, the Company paid a cash dividend of $0.75 per share, or $41,390, to shareholders of record on June 30, 2025.
The Company currently anticipates capital expenditures of $100,000 to $120,000 in 2025. Anticipated capital expenditures include investments to increase capacity, improve operational effectiveness and for general maintenance. Management critically evaluates all proposed capital expenditures and expects each project to increase efficiency, reduce costs, support sales growth or improve the overall safety and environmental conditions of the Company’s facilities.
Revolving Credit Agreements
On June 20, 2024, the Company entered into a $1 billion revolving credit facility. The revolving credit facility matures on June 20, 2029. As of June 30, 2025, the Company had $1 billion of availability under the revolving credit facility. Additionally, the Company has other lines of credit with total availability of $28,343 as of June 30, 2025. Refer to Note 10 for further information on our revolving lines of credit.
Working Capital Ratios
June 30, 2025 |
| December 31, 2024 |
| June 30, 2024 |
| ||
Average operating working capital to Net sales (1) |
| 18.4 | % | 16.9 | % | 18.0 | % |
Days sales in Inventories |
| 117.3 |
| 106.0 | 117.0 | ||
Days sales in Accounts receivable |
| 49.4 |
| 46.9 | 51.9 | ||
Average days in Trade accounts payable |
| 56.6 |
| 45.8 | 56.3 |
| (1) | Average operating working capital to net sales is defined as the sum of Accounts receivable, Inventories and contract assets less Trade accounts payable and contract liabilities as of period end divided by annualized rolling three months of Net sales. |
Stock Repurchase Program
On February 12, 2020, the Company’s Board authorized a share repurchase program for up to 10 million shares of the Company’s common stock. As of June 30, 2025, there were 5.5 million shares available under the authorization. The Company is not obligated to make any repurchases.
Rationalization and Asset Impairments
Refer to Note 6 to the consolidated financial statements for a discussion of the Company’s rationalization plans. The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital.
Acquisitions
Refer to Note 4 to the consolidated financial statements for a discussion of the Company’s recent acquisitions.
Return on Invested Capital
The Company reviews ROIC in assessing and evaluating the Company’s underlying operating performance. As discussed in the Non-GAAP Financial Measures section above, Adjusted ROIC is a non-GAAP financial measure that the Company believes is a meaningful metric to investors in evaluating the Company’s financial performance. The calculation may be different than the method used by other companies to calculate ROIC. Adjusted ROIC is defined as rolling 12 months of Adjusted net income excluding tax-effected interest income and expense divided by invested capital. Invested capital is defined as total debt, which includes Short-term debt and Long-term debt, less current portions, plus Total equity.
31
Table of Contents
The following table presents the reconciliations of ROIC and Adjusted ROIC to net income:
Twelve Months Ended June 30, | |||||||
| 2025 |
| 2024 |
| |||
Net income as reported | $ | 502,868 |
| $ | 511,110 | ||
Plus: Interest expense (after-tax) | 42,688 | 36,607 | |||||
Less: Interest income (after-tax) | 6,636 | 7,654 | |||||
Net operating profit after taxes | $ | 538,920 | $ | 540,063 | |||
Special items: | |||||||
Rationalization and asset impairment net charges |
| 31,172 |
|
| 16,237 | ||
Acquisition transaction costs |
| 4,332 |
|
| 3,944 |
| |
Pension settlement charges |
| 3,792 |
|
| 845 | ||
Amortization of step up in value of acquired inventories |
| 4,771 |
|
| 4,964 | ||
Loss on asset disposal |
| — |
|
| 4,950 | ||
Tax effect of Special items (1) |
| (11,118) |
|
| 2,357 | ||
Adjusted net operating profit after taxes | $ | 571,869 |
| $ | 573,360 | ||
|
| ||||||
Invested Capital |
| June 30, 2025 |
| June 30, 2024 | |||
Short-term debt | $ | 105,323 | $ | 6,254 | |||
Long-term debt, less current portion | 1,150,395 | 1,098,430 | |||||
Total debt | 1,255,718 | 1,104,684 | |||||
Total equity |
| 1,379,613 |
| 1,312,906 | |||
Invested capital | $ | 2,635,331 | $ | 2,417,590 | |||
Return on invested capital as reported |
| 20.4 | % |
| 22.3 | % | |
Adjusted return on invested capital |
| 21.7 | % |
| 23.7 | % | |
| (1) | Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate. The applicable tax rates reflect the taxable jurisdiction and nature of each Special item. |
New Accounting Pronouncements
Refer to Note 1 to the consolidated financial statements for a discussion of new accounting pronouncements.
Forward-looking Statements
The Company’s expectations and beliefs concerning the future contained in this report are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current expectations and involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “forecast,” “guidance” or words of similar meaning. Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company’s operating results. The factors include, but are not limited to: general economic, financial and market conditions; the effectiveness of commercial and operating initiatives; the effectiveness of information systems and cybersecurity systems; presence of artificial intelligence technologies; completion of planned divestitures; interest rates; disruptions, uncertainty or volatility in the credit markets that may limit our access to capital; currency exchange rates and devaluations; adverse outcome of pending or potential litigation; actual costs of the Company’s rationalization plans; possible acquisitions, including the Company’s ability to successfully integrate acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity; the effects of changes in tax law, including any changes from the new legislation implemented in the One Big Beautiful Bill Act; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, the ongoing geopolitical conflicts, political unrest, acts of terror, natural disasters and pandemics on the Company or its customers, suppliers and the economy in general. For additional
32
Table of Contents
discussion, see “Item 1A. Risk Factors” presented herein, as well as in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and on Form 10-Q for the quarter ended March 31, 2025.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in the Company’s exposure to market risk since December 31, 2024. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The Company carried out an evaluation under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the Company’s management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2025.
Changes in Internal Control Over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting that occurred during the quarter ended June 30, 2025 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is subject, from time to time, to a variety of civil and administrative proceedings arising out of its normal operations, including, without limitation, product liability claims, regulatory claims and health, safety and environmental claims. Among such proceedings are the cases described below.
As of June 30, 2025, the Company was a co-defendant in cases alleging asbestos induced illness involving claims by approximately 1,236 plaintiffs, which is a net decrease of 25 claims from those previously reported. In each instance, the Company is one of a large number of defendants. The asbestos claimants seek compensatory and punitive damages, in most cases for unspecified sums. Since January 1, 1995, the Company has been a co-defendant in asbestos cases that have been resolved as follows: 57,150 of those claims were dismissed, 23 were tried to defense verdicts, 7 were tried to plaintiff verdicts (which were reversed or resolved after appeal), 1 was resolved by agreement for an immaterial amount and 1,020 were decided in favor of the Company following summary judgment motions.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this Quarterly Report on Form 10-Q, the reader should carefully consider the factors discussed in “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and on Form 10-Q for the quarter ended March 31, 2025.
33
Table of Contents
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer purchases of its common shares during the second quarter of 2025 were as follows:
Total Number of | |||||||||
|
|
| Shares |
| Maximum Number | ||||
Repurchased | of Shares that May | ||||||||
Total Number of | as Part of Publicly | Yet be Purchased | |||||||
Shares | Average Price | Announced Plans or | Under the Plans or | ||||||
Period | Repurchased | Paid Per Share | Programs | Programs (2) | |||||
April 1 - 30, 2025 |
| 99,975 | (1) | $ 179.96 |
| 99,248 |
| 6,071,177 | |
May 1 - 31, 2025 |
| 311,506 | (1) |
| $ 191.49 |
| 310,448 |
| 5,760,729 |
June 1 - 30, 2025 |
| 236,918 | (1) |
| $ 208.86 |
| 236,488 |
| 5,524,241 |
Total |
| 648,399 |
| $ 196.06 |
| 646,184 |
|
| |
| (1) | The above share repurchases include the surrender of the Company’s common shares in connection with the vesting of restricted awards. |
| (2) | On February 12, 2020, the Company’s Board of Directors authorized a new share repurchase program for up to an additional 10 million shares of the Company’s common stock. Total shares purchased through the share repurchase programs were 4.5 million shares at a total cost of $811.7 million for a weighted average cost of $181.33 per share through June 30, 2025. |
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the quarter ended June 30, 2025, none of the Company’s directors or officers
34
Table of Contents
ITEM 6. EXHIBITS
| (a) | Exhibits |
31.1 | Certification of the Chair, President and Chief Executive Officer (Principal Executive Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 (filed herewith). | |
31.2 | Certification of the Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 (filed herewith). | |
32.1 | Certification of the Chair, President and Chief Executive Officer (Principal Executive Officer) and Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). | |
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
104 | Cover page Interactive Data File (formatted as Inline XBRL and contained in the Exhibit 101 attachments) | |
Inline XBRL Taxonomy Extension Label Linkbase Document | ||
35
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| LINCOLN ELECTRIC HOLDINGS, INC. | |
/s/ Gabriel Bruno | ||
Gabriel Bruno | ||
Executive Vice President, Chief Financial Officer and Treasurer | ||
(Principal Financial and Accounting Officer) | ||
July 31, 2025 |
36
Source:
FAQ
How much did LECO's Q2 2025 revenue grow year over year?
What was Lincoln Electric's Q2 2025 diluted EPS?
How did operating cash flow perform in the first half of 2025?
What is the status of Lincoln Electric's share repurchase program?
Did Lincoln Electric make any acquisitions during the quarter?
What is Lincoln Electric's current cash balance and debt level?
