Lincoln Electric Reports First Quarter 2026 Results
Idag, 13:30
Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported first quarter 2026 net income of $136.4 million, or diluted earnings per share (EPS) of $2.47, which includes special item after-tax net charges of $2.1 million, or $0.03 EPS. This compares with prior year period net income of $118.5 million, or $2.10 EPS, which included special item after-tax net charges of $3.4 million, or $0.06 EPS. Excluding special items, first quarter 2026 adjusted net income was $138.5 million, or $2.50 adjusted EPS. This compares with adjusted net income of $121.9 million, or $2.16 adjusted EPS, in the prior year period.
First quarter 2026 sales increased 11.7% to $1,121.4 million reflecting a 7.8% increase in organic sales, a 1.6% benefit from acquisitions and a 2.3% favorable foreign exchange. Operating income for the first quarter 2026 was $186.2 million, or 16.6% of sales. This compares with operating income of $164.9 million, or 16.4% of sales, in the prior year period. Excluding special items, adjusted operating income was $189.0 million, or 16.9% of sales, as compared with $169.4 million, or 16.9% of sales, in the prior year period.
“We achieved solid first quarter performance driven by disciplined cost management and improving industrial activity in the Americas,” said Steven B. Hedlund, Chairman and Chief Executive Officer. “Our team remains agile as we navigate evolving operating conditions and advance our new long-term RISE strategy. We are well positioned to capitalize on growth opportunities, increase profitability and compound earnings from our strategic initiatives and our capital allocation strategy,” Hedlund concluded.
Webcast Information
This earnings release and supplemental information is available under the Investor Relations section of our website. A call to discuss first quarter 2026 financial results will be webcast live today, April 30, 2026, at 10:00 a.m., Eastern Time. Participants can access the call in listen-only mode here and at https://ir.lincolnelectric.com. To participate via telephone, please dial (888) 440-4368 (domestic) or (646) 960-0856 (international) and use confirmation code 6709091. A replay of the earnings call will be available on the Company's website later today.
About Lincoln Electric
Lincoln Electric is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. Lincoln Electric’s innovative solutions enable higher quality and productivity across a variety of processes including welding, cutting, brazing, machining, process automation, and field repair. The Company leverages proprietary technologies and expertise in materials science, power electronics, automation, and intelligent software to help customers build better and achieve resilience in their operations. Headquartered in Cleveland, Ohio, Lincoln Electric is the essential ‘Linc’ that keeps the economy running. The Company operates 71 manufacturing and automation facilities across 20 countries and serves customers in over 160 countries. For more information about Lincoln Electric and its products and services, visit the Company’s website at https://www.lincolnelectric.com.
Non-GAAP Information
Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate, adjusted diluted earnings per share (“adjusted EPS”), Organic sales, Free cash flow, Cash conversion, adjusted net operating profit after taxes and adjusted return on invested capital (“adjusted ROIC”) are non-GAAP financial measures. Management uses non-GAAP measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of the Company's core business. Management believes that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against other companies in its industry more meaningfully. Furthermore, management believes that non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently.
Forward-Looking Statements
The Company’s expectations and beliefs concerning the future contained in this news release 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 programs; 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; the Company’s ability to complete 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; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, 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 discussion, see “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) | ||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||
Fav (Unfav) to | ||||||||||||||||||||
Three Months Ended March 31, | Prior Year | |||||||||||||||||||
2026 | % of Sales | 2025 | % of Sales | $ | % | |||||||||||||||
Net sales | $ | 1,121,434 | 100.0 | % | $ | 1,004,388 | 100.0% | $ | 117,046 | 11.7 | % | |||||||||
Cost of goods sold | 722,302 | 64.4 | % | 638,940 | 63.6% | (83,362) | (13.0) | % | ||||||||||||
Gross profit | 399,132 | 35.6 | % | 365,448 | 36.4% | 33,684 | 9.2 | % | ||||||||||||
Selling, general & administrative expenses | 210,811 | 18.8 | % | 196,665 | 19.6% | (14,146) | (7.2) | % | ||||||||||||
Rationalization and asset impairment net charges | 2,163 | 0.2 | % | 3,865 | 0.4% | 1,702 | 44.0 | % | ||||||||||||
Operating income | 186,158 | 16.6 | % | 164,918 | 16.4% | 21,240 | 12.9 | % | ||||||||||||
Interest expense, net | 13,374 | 1.2 | % | 12,127 | 1.2% | (1,247) | (10.3) | % | ||||||||||||
Other income | 570 | 0.1 | % | 444 | — | 126 | 28.4 | % | ||||||||||||
Income before income taxes | 173,354 | 15.5 | % | 153,235 | 15.3% | 20,119 | 13.1 | % | ||||||||||||
Income taxes | 36,972 | 3.3 | % | 34,748 | 3.5% | (2,224) | (6.4) | % | ||||||||||||
Effective tax rate | 21.3 | % | 22.7 | % | 1.4 | % | ||||||||||||||
Net income | $ | 136,382 | 12.2 | % | $ | 118,487 | 11.8% | $ | 17,895 | 15.1 | % | |||||||||
Basic earnings per share | $ | 2.49 | $ | 2.11 | $ | 0.38 | 18.0 | % | ||||||||||||
Diluted earnings per share | $ | 2.47 | $ | 2.10 | $ | 0.37 | 17.6 | % | ||||||||||||
Weighted average shares (basic) | 54,822 | 56,058 | ||||||||||||||||||
Weighted average shares (diluted) | 55,317 | 56,527 |
Lincoln Electric Holdings, Inc. Financial Highlights (In thousands) (Unaudited) | ||||||||
Balance Sheet Highlights | ||||||||
Selected Consolidated Balance Sheet Data | March 31, 2026 | December 31, 2025 | ||||||
Cash and cash equivalents | $ | 298,903 | $ | 308,789 | ||||
Accounts receivable, net | 598,315 | 538,791 | ||||||
Inventories | 693,938 | 633,364 | ||||||
Total current assets | 1,863,444 | 1,739,512 | ||||||
Property, plant and equipment, net | 720,836 | 702,762 | ||||||
Total assets | 3,900,395 | 3,777,577 | ||||||
Trade accounts payable | 448,138 | 364,934 | ||||||
Total current liabilities (1) | 1,020,357 | 956,691 | ||||||
Long-term debt, less current portion | 1,150,138 | 1,150,228 | ||||||
Total equity | 1,511,260 | 1,469,794 | ||||||
Operating Working Capital | March 31, 2026 | December 31, 2025 | ||||||
Average operating working capital to Net sales (2) | 18.6 | % | 17.9 | % | ||||
Invested Capital | March 31, 2026 | December 31, 2025 | ||||||
Short-term debt (1) | $ | 163,502 | $ | 143,780 | ||||
Long-term debt, less current portion | 1,150,138 | 1,150,228 | ||||||
Total debt | 1,313,640 | 1,294,008 | ||||||
Total equity | 1,511,260 | 1,469,794 | ||||||
Invested capital | $ | 2,824,900 | $ | 2,763,802 | ||||
Total debt / invested capital | 46.5 | % | 46.8 | % |
(1) | Includes current portion of long-term debt. | |
(2) | 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. |
Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) | ||||||||
Non-GAAP Financial Measures | ||||||||
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
Operating income as reported | $ | 186,158 | $ | 164,918 | ||||
Special items (pre-tax): | ||||||||
Rationalization and asset impairment net charges (2) | 2,163 | 3,865 | ||||||
Transaction costs (3) | 653 | 802 | ||||||
Amortization of step up in value of acquired inventories (4) | — | (140) | ||||||
Adjusted operating income (1) | $ | 188,974 | $ | 169,445 | ||||
As a percent of net sales | 16.9 | % | 16.9 | % | ||||
Net income as reported | $ | 136,382 | $ | 118,487 | ||||
Special items: | ||||||||
Rationalization and asset impairment net charges (2) | 2,163 | 3,865 | ||||||
Transaction costs (3) | 653 | 802 | ||||||
Amortization of step up in value of acquired inventories (4) | — | (140) | ||||||
Tax effect of Special items (5) | (740) | (1,158) | ||||||
Adjusted net income (1) | 138,458 | 121,856 | ||||||
Interest expense, net | 13,374 | 12,127 | ||||||
Income taxes as reported | 36,972 | 34,748 | ||||||
Tax effect of Special items (5) | 740 | 1,158 | ||||||
Adjusted EBIT (1) | $ | 189,544 | $ | 169,889 | ||||
Effective tax rate as reported | 21.3 | % | 22.7 | % | ||||
Net special item tax impact | 0.1 | % | 0.1 | % | ||||
Adjusted effective tax rate (1) | 21.4 | % | 22.8 | % | ||||
Diluted earnings per share as reported | $ | 2.47 | $ | 2.10 | ||||
Special items per share | 0.03 | 0.06 | ||||||
Adjusted diluted earnings per share (1) | $ | 2.50 | $ | 2.16 | ||||
Weighted average shares (diluted) | 55,317 | 56,527 |
(1) | Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and adjusted diluted EPS are non-GAAP financial measures. Refer to Non-GAAP Information section. | |
(2) | 2026 and 2025 net charges primarily relate to rationalization plans within all three segments. | |
(3) | Transaction costs primarily relate to acquisitions and are included in Selling, general & administrative expenses. | |
(4) | Costs relate to acquisitions and are included in Cost of goods sold. | |
(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. |
Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) | |||||||
Non-GAAP Financial Measures | |||||||
Twelve Months Ended March 31, | |||||||
Return on Invested Capital | 2026 | 2025 | |||||
Net income as reported | $ | 538,428 | $ | 461,180 | |||
Plus: Interest expense (after-tax) | 44,044 | 41,450 | |||||
Less: Interest income (after-tax) | 4,459 | 6,868 | |||||
Net operating profit after taxes | $ | 578,013 | $ | 495,762 | |||
Special Items: | |||||||
Rationalization and asset impairment net charges | 16,497 | 55,120 | |||||
Transaction costs | 2,590 | 6,085 | |||||
Pension settlement net charges | 719 | 3,792 | |||||
Amortization of step up in value of acquired inventories | 4,104 | 4,883 | |||||
Loss on asset disposal | — | 4,950 | |||||
Tax effect of Special items (2) | 5,595 | (11,545) | |||||
Adjusted net operating profit after taxes (1) | $ | 607,518 | $ | 559,047 | |||
Invested Capital | March 31, 2026 | March 31, 2025 | |||||
Short-term debt | $ | 163,502 | $ | 109,620 | |||
Long-term debt, less current portion | 1,150,138 | 1,150,473 | |||||
Total debt | 1,313,640 | 1,260,093 | |||||
Total equity | 1,511,260 | 1,340,170 | |||||
Invested capital | $ | 2,824,900 | $ | 2,600,263 | |||
Return on invested capital as reported | 20.5 | % | 19.1 | % | |||
Adjusted return on invested capital (1) | 21.5 | % | 21.5 | % |
(1) | Adjusted net operating profit after taxes and adjusted ROIC are non-GAAP financial measures. Refer to Non-GAAP Information section. | |
(2) | 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. |
Three Months Ended March 31, | |||||||||
Cash Conversion | 2026 | 2025 | |||||||
Net cash provided by operating activities | $ | 102,170 | $ | 185,693 | |||||
Capital expenditures | (39,163 | ) | (26,949 | ) | |||||
Free cash flow (1) | $ | 63,007 | $ | 158,744 | |||||
Adjusted net income | $ | 138,458 | $ | 121,856 | |||||
Cash conversion (1) | 46 | % | 130 | % | |||||
Free cash flow and cash conversion are non-GAAP financial measures. Refer to Non-GAAP Information section. |
Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 136,382 | $ | 118,487 | ||||
Adjustments to reconcile Net income to Net cash provided by operating activities: | ||||||||
Depreciation and amortization | 26,009 | 23,784 | ||||||
Deferred income taxes | 22,533 | (5,838 | ) | |||||
Other non-cash items, net | 8,064 | 8,634 | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||
Increase in accounts receivable | (60,212 | ) | (34,108 | ) | ||||
Increase in inventories | (61,876 | ) | (20,167 | ) | ||||
(Increase) decrease in other current assets | (13,471 | ) | 2,057 | |||||
Increase in trade accounts payable | 83,784 | 64,884 | ||||||
(Decrease) increase in other current liabilities | (43,138 | ) | 21,206 | |||||
Net change in other assets and liabilities | 4,095 | 6,754 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 102,170 | 185,693 | ||||||
INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (39,163 | ) | (26,949 | ) | ||||
Acquisition of businesses, net of cash acquired | 140 | — | ||||||
Proceeds from sale of property, plant and equipment | 308 | 4,646 | ||||||
NET CASH USED BY INVESTING ACTIVITIES | (38,715 | ) | (22,303 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Proceeds from (payments on) short-term borrowings, net | 19,613 | (904 | ) | |||||
Payments on long-term borrowings | — | (169 | ) | |||||
Proceeds from exercise of stock options | 8,559 | 6,254 | ||||||
Purchase of shares for treasury | (56,670 | ) | (106,694 | ) | ||||
Cash dividends paid to shareholders | (44,071 | ) | (42,975 | ) | ||||
NET CASH USED BY FINANCING ACTIVITIES | (72,569 | ) | (144,488 | ) | ||||
Effect of exchange rate changes on Cash and cash equivalents | (772 | ) | (1,459 | ) | ||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (9,886 | ) | 17,443 | |||||
Cash and cash equivalents at beginning of period | 308,789 | 377,262 | ||||||
Cash and cash equivalents at end of period | $ | 298,903 | $ | 394,705 | ||||
Cash dividends paid per share | $ | 0.79 | $ | 0.75 |
Lincoln Electric Holdings, Inc. Segment Highlights (In thousands) (Unaudited) | |||||||||||||||||||||
Americas | International | The Harris | Corporate / | ||||||||||||||||||
Welding | Welding | Products Group | Eliminations | Consolidated | |||||||||||||||||
Three months ended March 31, 2026 | |||||||||||||||||||||
Net sales | $ | 706,225 | $ | 227,035 | $ | 188,174 | $ | — | $ | 1,121,434 | |||||||||||
Inter-segment sales | 36,709 | 5,807 | 4,664 | (47,180 | ) | — | |||||||||||||||
Total sales | $ | 742,934 | $ | 232,842 | $ | 192,838 | $ | (47,180 | ) | $ | 1,121,434 | ||||||||||
Net income | $ | 136,382 | |||||||||||||||||||
As a percent of total sales | 12.2 | % | |||||||||||||||||||
EBIT (1) | $ | 126,895 | $ | 20,890 | $ | 40,991 | $ | (2,048 | ) | $ | 186,728 | ||||||||||
As a percent of total sales | 17.1 | % | 9.0 | % | 21.3 | % | 16.7 | % | |||||||||||||
Special items charges (gain) (3) | 573 | 1,772 | (182 | ) | 653 | 2,816 | |||||||||||||||
Adjusted EBIT (2) | $ | 127,468 | $ | 22,662 | $ | 40,809 | $ | (1,395 | ) | $ | 189,544 | ||||||||||
As a percent of total sales | 17.2 | % | 9.7 | % | 21.2 | % | 16.9 | % | |||||||||||||
Three months ended March 31, 2025 | |||||||||||||||||||||
Net sales | $ | 653,107 | $ | 219,061 | $ | 132,220 | $ | — | $ | 1,004,388 | |||||||||||
Inter-segment sales | 30,372 | 6,832 | 3,984 | (41,188 | ) | — | |||||||||||||||
Total sales | $ | 683,479 | $ | 225,893 | $ | 136,204 | $ | (41,188 | ) | $ | 1,004,388 | ||||||||||
Net income | $ | 118,487 | |||||||||||||||||||
As a percent of total sales | 11.8 | % | |||||||||||||||||||
EBIT (1) | $ | 122,063 | $ | 21,600 | $ | 24,151 | $ | (2,452 | ) | $ | 165,362 | ||||||||||
As a percent of total sales | 17.9 | % | 9.6 | % | 17.7 | % | 16.5 | % | |||||||||||||
Special items charges (4) | 2,135 | 1,412 | 178 | 802 | 4,527 | ||||||||||||||||
Adjusted EBIT (2) | $ | 124,198 | $ | 23,012 | $ | 24,329 | $ | (1,650 | ) | $ | 169,889 | ||||||||||
As a percent of total sales | 18.2 | % | 10.2 | % | 17.9 | % | 16.9 | % |
(1) | EBIT is defined as Operating income plus Other income. | |
(2) | The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT. | |
(3) | Special items in 2026 primarily reflect Rationalization and asset impairments net charges of $573 in Americas Welding and $1,772 in International Welding, and a net gain of $182 in Harris Products Group. In addition, there were transaction costs of $653 in Corporate/Eliminations. | |
(4) | Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $2,135 in Americas Welding, $1,552 in International Welding and $178 in Harris Products Group, as well as transaction costs of $802 in Corporate/Eliminations. |
Lincoln Electric Holdings, Inc. Change in Net Sales by Segment (In thousands) (Unaudited) | |||||||||||||||||||||||
Three Months Ended March 31st Change in Net Sales by Segment | |||||||||||||||||||||||
Change in Net Sales due to: | |||||||||||||||||||||||
Net Sales | Foreign | Net Sales | |||||||||||||||||||||
2025 | Volume | Price | Acquisitions | Exchange | 2026 | ||||||||||||||||||
Operating Segments | |||||||||||||||||||||||
Americas Welding | $ | 653,107 | $ | (2,635) | $ | 49,479 | $ | — | $ | 6,274 | $ | 706,225 | |||||||||||
International Welding | 219,061 | (21,631) | 297 | 15,794 | 13,514 | 227,035 | |||||||||||||||||
The Harris Products Group | 132,220 | (1,375) | 54,782 | — | 2,547 | 188,174 | |||||||||||||||||
Consolidated | $ | 1,004,388 | $ | (25,641) | $ | 104,558 | $ | 15,794 | $ | 22,335 | $ | 1,121,434 | |||||||||||
% Change | |||||||||||||||||||||||
Americas Welding | (0.4) | % | 7.6 | % | — | 0.9 | % | 8.1 | % | ||||||||||||||
International Welding | (9.9) | % | 0.1 | % | 7.2 | % | 6.2 | % | 3.6 | % | |||||||||||||
The Harris Products Group | (1.0) | % | 41.4 | % | — | 1.9 | % | 42.3 | % | ||||||||||||||
Consolidated | (2.6) | % | 10.4 | % | 1.6 | % | 2.3 | % | 11.7 | % |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260430107151/en/
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Lincoln Electric Reports First Quarter 2026 Results
Idag, 13:30
Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported first quarter 2026 net income of $136.4 million, or diluted earnings per share (EPS) of $2.47, which includes special item after-tax net charges of $2.1 million, or $0.03 EPS. This compares with prior year period net income of $118.5 million, or $2.10 EPS, which included special item after-tax net charges of $3.4 million, or $0.06 EPS. Excluding special items, first quarter 2026 adjusted net income was $138.5 million, or $2.50 adjusted EPS. This compares with adjusted net income of $121.9 million, or $2.16 adjusted EPS, in the prior year period.
First quarter 2026 sales increased 11.7% to $1,121.4 million reflecting a 7.8% increase in organic sales, a 1.6% benefit from acquisitions and a 2.3% favorable foreign exchange. Operating income for the first quarter 2026 was $186.2 million, or 16.6% of sales. This compares with operating income of $164.9 million, or 16.4% of sales, in the prior year period. Excluding special items, adjusted operating income was $189.0 million, or 16.9% of sales, as compared with $169.4 million, or 16.9% of sales, in the prior year period.
“We achieved solid first quarter performance driven by disciplined cost management and improving industrial activity in the Americas,” said Steven B. Hedlund, Chairman and Chief Executive Officer. “Our team remains agile as we navigate evolving operating conditions and advance our new long-term RISE strategy. We are well positioned to capitalize on growth opportunities, increase profitability and compound earnings from our strategic initiatives and our capital allocation strategy,” Hedlund concluded.
Webcast Information
This earnings release and supplemental information is available under the Investor Relations section of our website. A call to discuss first quarter 2026 financial results will be webcast live today, April 30, 2026, at 10:00 a.m., Eastern Time. Participants can access the call in listen-only mode here and at https://ir.lincolnelectric.com. To participate via telephone, please dial (888) 440-4368 (domestic) or (646) 960-0856 (international) and use confirmation code 6709091. A replay of the earnings call will be available on the Company's website later today.
About Lincoln Electric
Lincoln Electric is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. Lincoln Electric’s innovative solutions enable higher quality and productivity across a variety of processes including welding, cutting, brazing, machining, process automation, and field repair. The Company leverages proprietary technologies and expertise in materials science, power electronics, automation, and intelligent software to help customers build better and achieve resilience in their operations. Headquartered in Cleveland, Ohio, Lincoln Electric is the essential ‘Linc’ that keeps the economy running. The Company operates 71 manufacturing and automation facilities across 20 countries and serves customers in over 160 countries. For more information about Lincoln Electric and its products and services, visit the Company’s website at https://www.lincolnelectric.com.
Non-GAAP Information
Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate, adjusted diluted earnings per share (“adjusted EPS”), Organic sales, Free cash flow, Cash conversion, adjusted net operating profit after taxes and adjusted return on invested capital (“adjusted ROIC”) are non-GAAP financial measures. Management uses non-GAAP measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of the Company's core business. Management believes that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against other companies in its industry more meaningfully. Furthermore, management believes that non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently.
Forward-Looking Statements
The Company’s expectations and beliefs concerning the future contained in this news release 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 programs; 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; the Company’s ability to complete 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; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, 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 discussion, see “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) | ||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||
Fav (Unfav) to | ||||||||||||||||||||
Three Months Ended March 31, | Prior Year | |||||||||||||||||||
2026 | % of Sales | 2025 | % of Sales | $ | % | |||||||||||||||
Net sales | $ | 1,121,434 | 100.0 | % | $ | 1,004,388 | 100.0% | $ | 117,046 | 11.7 | % | |||||||||
Cost of goods sold | 722,302 | 64.4 | % | 638,940 | 63.6% | (83,362) | (13.0) | % | ||||||||||||
Gross profit | 399,132 | 35.6 | % | 365,448 | 36.4% | 33,684 | 9.2 | % | ||||||||||||
Selling, general & administrative expenses | 210,811 | 18.8 | % | 196,665 | 19.6% | (14,146) | (7.2) | % | ||||||||||||
Rationalization and asset impairment net charges | 2,163 | 0.2 | % | 3,865 | 0.4% | 1,702 | 44.0 | % | ||||||||||||
Operating income | 186,158 | 16.6 | % | 164,918 | 16.4% | 21,240 | 12.9 | % | ||||||||||||
Interest expense, net | 13,374 | 1.2 | % | 12,127 | 1.2% | (1,247) | (10.3) | % | ||||||||||||
Other income | 570 | 0.1 | % | 444 | — | 126 | 28.4 | % | ||||||||||||
Income before income taxes | 173,354 | 15.5 | % | 153,235 | 15.3% | 20,119 | 13.1 | % | ||||||||||||
Income taxes | 36,972 | 3.3 | % | 34,748 | 3.5% | (2,224) | (6.4) | % | ||||||||||||
Effective tax rate | 21.3 | % | 22.7 | % | 1.4 | % | ||||||||||||||
Net income | $ | 136,382 | 12.2 | % | $ | 118,487 | 11.8% | $ | 17,895 | 15.1 | % | |||||||||
Basic earnings per share | $ | 2.49 | $ | 2.11 | $ | 0.38 | 18.0 | % | ||||||||||||
Diluted earnings per share | $ | 2.47 | $ | 2.10 | $ | 0.37 | 17.6 | % | ||||||||||||
Weighted average shares (basic) | 54,822 | 56,058 | ||||||||||||||||||
Weighted average shares (diluted) | 55,317 | 56,527 |
Lincoln Electric Holdings, Inc. Financial Highlights (In thousands) (Unaudited) | ||||||||
Balance Sheet Highlights | ||||||||
Selected Consolidated Balance Sheet Data | March 31, 2026 | December 31, 2025 | ||||||
Cash and cash equivalents | $ | 298,903 | $ | 308,789 | ||||
Accounts receivable, net | 598,315 | 538,791 | ||||||
Inventories | 693,938 | 633,364 | ||||||
Total current assets | 1,863,444 | 1,739,512 | ||||||
Property, plant and equipment, net | 720,836 | 702,762 | ||||||
Total assets | 3,900,395 | 3,777,577 | ||||||
Trade accounts payable | 448,138 | 364,934 | ||||||
Total current liabilities (1) | 1,020,357 | 956,691 | ||||||
Long-term debt, less current portion | 1,150,138 | 1,150,228 | ||||||
Total equity | 1,511,260 | 1,469,794 | ||||||
Operating Working Capital | March 31, 2026 | December 31, 2025 | ||||||
Average operating working capital to Net sales (2) | 18.6 | % | 17.9 | % | ||||
Invested Capital | March 31, 2026 | December 31, 2025 | ||||||
Short-term debt (1) | $ | 163,502 | $ | 143,780 | ||||
Long-term debt, less current portion | 1,150,138 | 1,150,228 | ||||||
Total debt | 1,313,640 | 1,294,008 | ||||||
Total equity | 1,511,260 | 1,469,794 | ||||||
Invested capital | $ | 2,824,900 | $ | 2,763,802 | ||||
Total debt / invested capital | 46.5 | % | 46.8 | % |
(1) | Includes current portion of long-term debt. | |
(2) | 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. |
Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) | ||||||||
Non-GAAP Financial Measures | ||||||||
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
Operating income as reported | $ | 186,158 | $ | 164,918 | ||||
Special items (pre-tax): | ||||||||
Rationalization and asset impairment net charges (2) | 2,163 | 3,865 | ||||||
Transaction costs (3) | 653 | 802 | ||||||
Amortization of step up in value of acquired inventories (4) | — | (140) | ||||||
Adjusted operating income (1) | $ | 188,974 | $ | 169,445 | ||||
As a percent of net sales | 16.9 | % | 16.9 | % | ||||
Net income as reported | $ | 136,382 | $ | 118,487 | ||||
Special items: | ||||||||
Rationalization and asset impairment net charges (2) | 2,163 | 3,865 | ||||||
Transaction costs (3) | 653 | 802 | ||||||
Amortization of step up in value of acquired inventories (4) | — | (140) | ||||||
Tax effect of Special items (5) | (740) | (1,158) | ||||||
Adjusted net income (1) | 138,458 | 121,856 | ||||||
Interest expense, net | 13,374 | 12,127 | ||||||
Income taxes as reported | 36,972 | 34,748 | ||||||
Tax effect of Special items (5) | 740 | 1,158 | ||||||
Adjusted EBIT (1) | $ | 189,544 | $ | 169,889 | ||||
Effective tax rate as reported | 21.3 | % | 22.7 | % | ||||
Net special item tax impact | 0.1 | % | 0.1 | % | ||||
Adjusted effective tax rate (1) | 21.4 | % | 22.8 | % | ||||
Diluted earnings per share as reported | $ | 2.47 | $ | 2.10 | ||||
Special items per share | 0.03 | 0.06 | ||||||
Adjusted diluted earnings per share (1) | $ | 2.50 | $ | 2.16 | ||||
Weighted average shares (diluted) | 55,317 | 56,527 |
(1) | Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and adjusted diluted EPS are non-GAAP financial measures. Refer to Non-GAAP Information section. | |
(2) | 2026 and 2025 net charges primarily relate to rationalization plans within all three segments. | |
(3) | Transaction costs primarily relate to acquisitions and are included in Selling, general & administrative expenses. | |
(4) | Costs relate to acquisitions and are included in Cost of goods sold. | |
(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. |
Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) | |||||||
Non-GAAP Financial Measures | |||||||
Twelve Months Ended March 31, | |||||||
Return on Invested Capital | 2026 | 2025 | |||||
Net income as reported | $ | 538,428 | $ | 461,180 | |||
Plus: Interest expense (after-tax) | 44,044 | 41,450 | |||||
Less: Interest income (after-tax) | 4,459 | 6,868 | |||||
Net operating profit after taxes | $ | 578,013 | $ | 495,762 | |||
Special Items: | |||||||
Rationalization and asset impairment net charges | 16,497 | 55,120 | |||||
Transaction costs | 2,590 | 6,085 | |||||
Pension settlement net charges | 719 | 3,792 | |||||
Amortization of step up in value of acquired inventories | 4,104 | 4,883 | |||||
Loss on asset disposal | — | 4,950 | |||||
Tax effect of Special items (2) | 5,595 | (11,545) | |||||
Adjusted net operating profit after taxes (1) | $ | 607,518 | $ | 559,047 | |||
Invested Capital | March 31, 2026 | March 31, 2025 | |||||
Short-term debt | $ | 163,502 | $ | 109,620 | |||
Long-term debt, less current portion | 1,150,138 | 1,150,473 | |||||
Total debt | 1,313,640 | 1,260,093 | |||||
Total equity | 1,511,260 | 1,340,170 | |||||
Invested capital | $ | 2,824,900 | $ | 2,600,263 | |||
Return on invested capital as reported | 20.5 | % | 19.1 | % | |||
Adjusted return on invested capital (1) | 21.5 | % | 21.5 | % |
(1) | Adjusted net operating profit after taxes and adjusted ROIC are non-GAAP financial measures. Refer to Non-GAAP Information section. | |
(2) | 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. |
Three Months Ended March 31, | |||||||||
Cash Conversion | 2026 | 2025 | |||||||
Net cash provided by operating activities | $ | 102,170 | $ | 185,693 | |||||
Capital expenditures | (39,163 | ) | (26,949 | ) | |||||
Free cash flow (1) | $ | 63,007 | $ | 158,744 | |||||
Adjusted net income | $ | 138,458 | $ | 121,856 | |||||
Cash conversion (1) | 46 | % | 130 | % | |||||
Free cash flow and cash conversion are non-GAAP financial measures. Refer to Non-GAAP Information section. |
Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 136,382 | $ | 118,487 | ||||
Adjustments to reconcile Net income to Net cash provided by operating activities: | ||||||||
Depreciation and amortization | 26,009 | 23,784 | ||||||
Deferred income taxes | 22,533 | (5,838 | ) | |||||
Other non-cash items, net | 8,064 | 8,634 | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||
Increase in accounts receivable | (60,212 | ) | (34,108 | ) | ||||
Increase in inventories | (61,876 | ) | (20,167 | ) | ||||
(Increase) decrease in other current assets | (13,471 | ) | 2,057 | |||||
Increase in trade accounts payable | 83,784 | 64,884 | ||||||
(Decrease) increase in other current liabilities | (43,138 | ) | 21,206 | |||||
Net change in other assets and liabilities | 4,095 | 6,754 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 102,170 | 185,693 | ||||||
INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (39,163 | ) | (26,949 | ) | ||||
Acquisition of businesses, net of cash acquired | 140 | — | ||||||
Proceeds from sale of property, plant and equipment | 308 | 4,646 | ||||||
NET CASH USED BY INVESTING ACTIVITIES | (38,715 | ) | (22,303 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Proceeds from (payments on) short-term borrowings, net | 19,613 | (904 | ) | |||||
Payments on long-term borrowings | — | (169 | ) | |||||
Proceeds from exercise of stock options | 8,559 | 6,254 | ||||||
Purchase of shares for treasury | (56,670 | ) | (106,694 | ) | ||||
Cash dividends paid to shareholders | (44,071 | ) | (42,975 | ) | ||||
NET CASH USED BY FINANCING ACTIVITIES | (72,569 | ) | (144,488 | ) | ||||
Effect of exchange rate changes on Cash and cash equivalents | (772 | ) | (1,459 | ) | ||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (9,886 | ) | 17,443 | |||||
Cash and cash equivalents at beginning of period | 308,789 | 377,262 | ||||||
Cash and cash equivalents at end of period | $ | 298,903 | $ | 394,705 | ||||
Cash dividends paid per share | $ | 0.79 | $ | 0.75 |
Lincoln Electric Holdings, Inc. Segment Highlights (In thousands) (Unaudited) | |||||||||||||||||||||
Americas | International | The Harris | Corporate / | ||||||||||||||||||
Welding | Welding | Products Group | Eliminations | Consolidated | |||||||||||||||||
Three months ended March 31, 2026 | |||||||||||||||||||||
Net sales | $ | 706,225 | $ | 227,035 | $ | 188,174 | $ | — | $ | 1,121,434 | |||||||||||
Inter-segment sales | 36,709 | 5,807 | 4,664 | (47,180 | ) | — | |||||||||||||||
Total sales | $ | 742,934 | $ | 232,842 | $ | 192,838 | $ | (47,180 | ) | $ | 1,121,434 | ||||||||||
Net income | $ | 136,382 | |||||||||||||||||||
As a percent of total sales | 12.2 | % | |||||||||||||||||||
EBIT (1) | $ | 126,895 | $ | 20,890 | $ | 40,991 | $ | (2,048 | ) | $ | 186,728 | ||||||||||
As a percent of total sales | 17.1 | % | 9.0 | % | 21.3 | % | 16.7 | % | |||||||||||||
Special items charges (gain) (3) | 573 | 1,772 | (182 | ) | 653 | 2,816 | |||||||||||||||
Adjusted EBIT (2) | $ | 127,468 | $ | 22,662 | $ | 40,809 | $ | (1,395 | ) | $ | 189,544 | ||||||||||
As a percent of total sales | 17.2 | % | 9.7 | % | 21.2 | % | 16.9 | % | |||||||||||||
Three months ended March 31, 2025 | |||||||||||||||||||||
Net sales | $ | 653,107 | $ | 219,061 | $ | 132,220 | $ | — | $ | 1,004,388 | |||||||||||
Inter-segment sales | 30,372 | 6,832 | 3,984 | (41,188 | ) | — | |||||||||||||||
Total sales | $ | 683,479 | $ | 225,893 | $ | 136,204 | $ | (41,188 | ) | $ | 1,004,388 | ||||||||||
Net income | $ | 118,487 | |||||||||||||||||||
As a percent of total sales | 11.8 | % | |||||||||||||||||||
EBIT (1) | $ | 122,063 | $ | 21,600 | $ | 24,151 | $ | (2,452 | ) | $ | 165,362 | ||||||||||
As a percent of total sales | 17.9 | % | 9.6 | % | 17.7 | % | 16.5 | % | |||||||||||||
Special items charges (4) | 2,135 | 1,412 | 178 | 802 | 4,527 | ||||||||||||||||
Adjusted EBIT (2) | $ | 124,198 | $ | 23,012 | $ | 24,329 | $ | (1,650 | ) | $ | 169,889 | ||||||||||
As a percent of total sales | 18.2 | % | 10.2 | % | 17.9 | % | 16.9 | % |
(1) | EBIT is defined as Operating income plus Other income. | |
(2) | The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT. | |
(3) | Special items in 2026 primarily reflect Rationalization and asset impairments net charges of $573 in Americas Welding and $1,772 in International Welding, and a net gain of $182 in Harris Products Group. In addition, there were transaction costs of $653 in Corporate/Eliminations. | |
(4) | Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $2,135 in Americas Welding, $1,552 in International Welding and $178 in Harris Products Group, as well as transaction costs of $802 in Corporate/Eliminations. |
Lincoln Electric Holdings, Inc. Change in Net Sales by Segment (In thousands) (Unaudited) | |||||||||||||||||||||||
Three Months Ended March 31st Change in Net Sales by Segment | |||||||||||||||||||||||
Change in Net Sales due to: | |||||||||||||||||||||||
Net Sales | Foreign | Net Sales | |||||||||||||||||||||
2025 | Volume | Price | Acquisitions | Exchange | 2026 | ||||||||||||||||||
Operating Segments | |||||||||||||||||||||||
Americas Welding | $ | 653,107 | $ | (2,635) | $ | 49,479 | $ | — | $ | 6,274 | $ | 706,225 | |||||||||||
International Welding | 219,061 | (21,631) | 297 | 15,794 | 13,514 | 227,035 | |||||||||||||||||
The Harris Products Group | 132,220 | (1,375) | 54,782 | — | 2,547 | 188,174 | |||||||||||||||||
Consolidated | $ | 1,004,388 | $ | (25,641) | $ | 104,558 | $ | 15,794 | $ | 22,335 | $ | 1,121,434 | |||||||||||
% Change | |||||||||||||||||||||||
Americas Welding | (0.4) | % | 7.6 | % | — | 0.9 | % | 8.1 | % | ||||||||||||||
International Welding | (9.9) | % | 0.1 | % | 7.2 | % | 6.2 | % | 3.6 | % | |||||||||||||
The Harris Products Group | (1.0) | % | 41.4 | % | — | 1.9 | % | 42.3 | % | ||||||||||||||
Consolidated | (2.6) | % | 10.4 | % | 1.6 | % | 2.3 | % | 11.7 | % |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260430107151/en/
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