Company Overview - Lincoln Electric Holdings (LECO) currently has a Momentum Style Score of B, indicating a positive outlook based on recent price trends and earnings estimate revisions [3][12] - The company is recognized for manufacturing specialized welding products and other equipment, positioning it as a solid momentum pick [4][12] Performance Metrics - LECO shares have increased by 28.81% over the past quarter and 21.3% over the last year, significantly outperforming the S&P 500, which moved 11.66% and 15.86% respectively during the same periods [7] - Over the past week, LECO shares rose by 2.59%, while the Zacks Manufacturing - Tools & Related Products industry saw a slight increase of 2.9% [6] - The monthly price change for LECO is 11.49%, compared to the industry's performance of only 0.28% [6] Trading Volume - The average 20-day trading volume for LECO is 347,084 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, three earnings estimates for LECO have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $9.05 to $9.17 [10] - For the next fiscal year, three estimates have also moved upwards without any downward revisions, indicating a positive earnings outlook [10]

Investors in Lincoln Electric Holdings, Inc. (LECO) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept 19, 2025 $310.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the othe ...

Group 1 - Lincoln Electric Holdings (LECO) is recognized as a cash-generative industrial leader specializing in welding consumables, equipment, and automation [1] - Since November 2024, LECO's stock has increased by 12%, and including all dividends paid, the total return is 13%, outperforming the S&P 500 index [1] - The company focuses on fundamental value drivers of business economics to identify high probability long-term investment opportunities [1] Group 2 - The company has a beneficial long position in its own shares, indicating confidence in its stock performance [2] - The article reflects the author's personal opinions and is not influenced by any compensation from external sources [2]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements, including income, comprehensive income, balance sheets, equity, and cash flows, are presented with detailed accounting notes Consolidated Statements of Income (Unaudited) Consolidated Statements of Income (Unaudited) - Three Months Ended June 30, 2025 vs 2024 | Metric (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------- | :--- | :--- | :--------- | :--------- | | Net sales | $1,088,673 | $1,021,683 | $66,990 | 6.6% | | Gross profit | $405,547 | $383,813 | $21,734 | 5.7% | | Operating income | $192,144 | $148,838 | $43,306 | 29.1% | | Net income | $143,396 | $101,708 | $41,688 | 41.0% | | Basic EPS | $2.58 | $1.79 | $0.79 | 44.1% | | Diluted EPS | $2.56 | $1.77 | $0.79 | 44.6% | | Cash dividends per share | $0.75 | $0.71 | $0.04 | 5.6% | Consolidated Statements of Income (Unaudited) - Six Months Ended June 30, 2025 vs 2024 | Metric (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------- | :--- | :--- | :--------- | :--------- | | Net sales | $2,093,061 | $2,002,880 | $90,181 | 4.5% | | Gross profit | $770,995 | $752,212 | $18,783 | 2.5% | | Operating income | $357,062 | $313,885 | $43,177 | 13.8% | | Net income | $261,883 | $225,123 | $36,760 | 16.3% | | Basic EPS | $4.69 | $3.96 | $0.73 | 18.4% | | Diluted EPS | $4.66 | $3.91 | $0.75 | 19.2% | | Cash dividends per share | $1.50 | $1.42 | $0.08 | 5.6% | [Consolidated Statements of Comprehensive Income (Unaudited)](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(UNAUDITED)) Consolidated Statements of Comprehensive Income (Unaudited) - Three Months Ended June 30, 2025 vs 2024 | Metric (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------- | :--- | :--- | :--------- | :--------- | | Net income | $143,396 | $101,708 | $41,688 | 41.0% | | Other comprehensive income (loss) | $60,255 | $(10,451) | $70,706 | -676.5% | | Comprehensive income | $203,651 | $91,257 | $112,394 | 123.2% | Consolidated Statements of Comprehensive Income (Unaudited) - Six Months Ended June 30, 2025 vs 2024 | Metric (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------- | :--- | :--- | :--------- | :--------- | | Net income | $261,883 | $225,123 | $36,760 | 16.3% | | Other comprehensive income (loss) | $89,478 | $(20,058) | $109,536 | -546.1% | | Comprehensive income | $351,361 | $205,065 | $146,296 | 71.3% | [Condensed Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS%20(UNAUDITED)) Condensed Consolidated Balance Sheets (Unaudited) - June 30, 2025 vs December 31, 2024 | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | Change ($) | Change (%) | | :-------------------- | :------------ | :----------- | :--------- | :--------- | | Total Current Assets | $1,725,226 | $1,645,281 | $79,945 | 4.9% | | TOTAL ASSETS | $3,727,369 | $3,520,142 | $207,227 | 5.9% | | Total Current Liabilities | $1,025,239 | $878,802 | $146,437 | 16.7% | | Total Liabilities | $2,347,756 | $2,192,709 | $155,047 | 7.1% | | Total Equity | $1,379,613 | $1,327,433 | $52,180 | 3.9% | [Consolidated Statements of Equity (Unaudited)](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20EQUITY%20(UNAUDITED)) Consolidated Statements of Equity (Unaudited) - Key Changes (in thousands) | Metric | Dec 31, 2024 | Mar 31, 2025 | June 30, 2025 | | :------------------------------------------ | :----------- | :----------- | :------------ | | Total Equity | $1,327,433 | $1,340,170 | $1,379,613 | | Net income (Q1 2025) | | $118,487 | | | Net income (Q2 2025) | | | $143,396 | | Cash dividends declared (Q1 2025) | | $(42,073) | | | Cash dividends declared (Q2 2025) | | | $(41,080) | | Purchase of shares for treasury (Q1 2025) | | $(106,694) | | | Purchase of shares for treasury (Q2 2025) | | | $(127,130) | Consolidated Statements of Equity (Unaudited) - Key Changes (in thousands) | Metric | Dec 31, 2023 | Mar 31, 2024 | June 30, 2024 | | :------------------------------------------ | :----------- | :----------- | :------------ | | Total Equity | $1,308,852 | $1,307,828 | $1,312,906 | | Net income (Q1 2024) | | $123,415 | | | Net income (Q2 2024) | | | $101,708 | | Cash dividends declared (Q1 2024) | | $(41,273) | | | Cash dividends declared (Q2 2024) | | | $(40,236) | | Purchase of shares for treasury (Q1 2024) | | $(110,405) | | | Purchase of shares for treasury (Q2 2024) | | | $(50,415) | [Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) Consolidated Statements of Cash Flows (Unaudited) - Six Months Ended June 30, 2025 vs 2024 | Cash Flow Activity (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :--- | :--- | :--------- | :--------- | | Net cash provided by operating activities | $329,521 | $303,981 | $25,540 | 8.4% | | Net cash used by investing activities | $(79,470) | $(200,746) | $121,276 | 60.4% | | Net cash used by financing activities | $(317,709) | $(218,452) | $(99,257) | -45.4% | | Decrease in Cash and cash equivalents | $(77,781) | $(121,115) | $43,334 | 35.8% | | Cash and cash equivalents at end of period | $299,481 | $272,672 | $26,809 | 9.8% | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20UNAUDITED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Detailed disclosures and explanations for the unaudited consolidated financial statements cover accounting policies, revenue recognition, EPS, acquisitions, segment reporting, rationalization, AOCI, inventories, leases, debt, income taxes, derivatives, fair value, and supplier financing programs - The financial statements are prepared in accordance with GAAP for interim information and do not include all disclosures required for complete annual statements[26](index=26&type=chunk) - Operating results for the six months ended June 30, 2025, are not necessarily indicative of the full year 2025[26](index=26&type=chunk) [NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=NOTE%201%20%E2%80%94%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - The Company adopted ASU No. 2023-09 (Income Taxes) as of January 1, 2025, requiring enhanced disclosures for rate reconciliation and income taxes paid, effective for the 2025 annual period[30](index=30&type=chunk) - The Company is evaluating ASU No. 2024-03 (Expense Disaggregation Disclosures) and ASU No. 2023-06 (Disclosure Improvements), with effective dates in 2027 and 2028, respectively, or upon SEC removal of requirements[32](index=32&type=chunk) [NOTE 2 — REVENUE RECOGNITION](index=10&type=section&id=NOTE%202%20%E2%80%94%20REVENUE%20RECOGNITION) Net Sales Disaggregated by Product Line (in thousands) | Product Line | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Consumables | $594,646 | $546,421 | $1,115,249 | $1,074,159 | | Equipment | $494,027 | $475,262 | $977,812 | $928,721 | | Net sales | $1,088,673 | $1,021,683 | $2,093,061 | $2,002,880 | - Approximately **10% of the Company's Net sales** are recognized over time, particularly for automation products with multiple performance obligations[34](index=34&type=chunk) - Contract liabilities (advance customer payments and billings in excess of revenue) were **$96.245 million** at June 30, 2025, down from **$121.433 million** at December 31, 2024. Contract assets (revenue recognized but not yet invoiced) increased to **$98.319 million** at June 30, 2025, from **$81.781 million** at December 31, 2024[35](index=35&type=chunk) [NOTE 3 — EARNINGS PER SHARE](index=11&type=section&id=NOTE%203%20%E2%80%94%20EARNINGS%20PER%20SHARE) Basic and Diluted Earnings Per Share (EPS) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $2.58 | $1.79 | $4.69 | $3.96 | | Diluted EPS | $2.56 | $1.77 | $4.66 | $3.91 | - For the three months ended June 30, 2025, **27,376 common shares** subject to equity-based awards were excluded from diluted EPS computation due to anti-dilutive effect, compared to **25,472** in 2024[36](index=36&type=chunk) [NOTE 4 — ACQUISITIONS](index=11&type=section&id=NOTE%204%20%E2%80%94%20ACQUISITIONS) - On April 1, 2025, the Company acquired a **35% interest** in Alloy Steel Australia for approximately **$45 million**, with plans to acquire the remaining **65%** for **$90 million** by August 1, 2025. Alloy Steel specializes in maintenance and repair solutions for the mining sector[37](index=37&type=chunk) - In 2024, the Company completed three acquisitions: Vanair Manufacturing, LLC (mobile power solutions) for **$108.651 million** on July 30, 2024; Inrotech A/S (automated welding systems with AI software) for **$42.352 million** on June 3, 2024; and Superior Controls, LLC ("RedViking") (automation system integrator) for **$107.447 million** on April 1, 2024[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - Acquisition costs were **$1.231 million** for the six months ended June 30, 2025, compared to **$3.944 million** for the same period in 2024, expensed as incurred in SG&A[43](index=43&type=chunk) [NOTE 5 — SEGMENT INFORMATION](index=12&type=section&id=NOTE%205%20%E2%80%94%20SEGMENT%20INFORMATION) - The Company operates in three segments: Americas Welding, International Welding, and The Harris Products Group, focusing on arc welding products, automated systems, cutting equipment, and brazing/soldering alloys[44](index=44&type=chunk)[46](index=46&type=chunk) - Segment performance is primarily measured by Adjusted EBIT, which is Operating income plus Other income, adjusted for special items like rationalization and asset impairment charges[47](index=47&type=chunk) Adjusted EBIT by Segment (in thousands) - Three Months Ended June 30, 2025 vs 2024 | Segment | 2025 Adjusted EBIT | 2024 Adjusted EBIT | Change ($) | Change (%) | | :---------------------- | :----------------- | :----------------- | :--------- | :--------- | | Americas Welding | $137,915 | $136,651 | $1,264 | 0.9% | | International Welding | $30,550 | $25,709 | $4,841 | 18.8% | | The Harris Products Group | $31,884 | $24,923 | $6,961 | 27.9% | | Consolidated Adjusted EBIT | $199,149 | $181,019 | $18,130 | 10.0% | Adjusted EBIT by Segment (in thousands) - Six Months Ended June 30, 2025 vs 2024 | Segment | 2025 Adjusted EBIT | 2024 Adjusted EBIT | Change ($) | Change (%) | | :---------------------- | :----------------- | :----------------- | :--------- | :--------- | | Americas Welding | $262,113 | $272,750 | $(10,637) | -3.9% | | International Welding | $53,562 | $53,486 | $76 | 0.1% | | The Harris Products Group | $56,213 | $44,802 | $11,411 | 25.5% | | Consolidated Adjusted EBIT | $369,038 | $354,695 | $14,343 | 4.0% | [NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS](index=15&type=section&id=NOTE%206%20%E2%80%94%20RATIONALIZATION%20AND%20ASSET%20IMPAIRMENTS) - For the six months ended June 30, 2025, rationalization and asset impairment net charges totaled **$6.407 million**, impacting all three segments (Americas Welding: **$3.040 million**; International Welding: **$3.103 million**; The Harris Products Group: **$0.264 million**)[56](index=56&type=chunk) - In the prior year (six months ended June 30, 2024), charges were **$29.354 million** in International Welding, primarily due to the disposition of the Russian entity (**$22.566 million**), and **$1.396 million** in The Harris Products Group[56](index=56&type=chunk) - Rationalization liabilities decreased from **$14.146 million** at December 31, 2024, to **$6.416 million** at June 30, 2025, with payments and other adjustments of **$13.462 million** during the period[57](index=57&type=chunk)[58](index=58&type=chunk) [NOTE 7 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ("AOCI")](index=15&type=section&id=NOTE%207%20%E2%80%93%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)%20(%22AOCI%22)) Changes in AOCI by Component (in thousands) - Three Months Ended June 30, 2025 vs 2024 | Component | June 30, 2025 | June 30, 2024 | | :------------------------------------------------ | :------------ | :------------ | | Unrealized gain (loss) on derivatives | $18,257 | $17,490 | | Defined benefit pension plan activity | $(2,370) | $(1,917) | | Currency translation adjustment | $(226,544) | $(265,478) | | Total AOCI | $(210,657) | $(249,905) | - AOCI improved significantly, moving from a loss of **$(300.135) million** at December 31, 2024, to a loss of **$(210.657) million** at June 30, 2025, primarily driven by a positive currency translation adjustment of **$89.798 million** for the six months ended June 30, 2025[60](index=60&type=chunk) [NOTE 8 — INVENTORIES](index=16&type=section&id=NOTE%208%20%E2%80%94%20INVENTORIES) Inventory Components (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Raw materials | $159,154 | $153,596 | | Work-in-process | $131,368 | $123,406 | | Finished goods | $330,918 | $267,035 | | Total | $621,440 | $544,037 | - Approximately **35% of total inventories** were valued using the LIFO method at both June 30, 2025, and December 31, 2024[61](index=61&type=chunk) - The excess of current cost over LIFO cost increased to **$130.917 million** at June 30, 2025, from **$120.633 million** at December 31, 2024[61](index=61&type=chunk) [NOTE 9 — LEASES](index=17&type=section&id=NOTE%209%20%E2%80%94%20LEASES) Operating Lease Liabilities (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Right-of-use assets | $53,206 | $54,276 | | Total lease liabilities | $53,956 | $55,234 | - Total lease expense for the six months ended June 30, 2025, was **$12.334 million**, slightly down from **$12.733 million** in the same period of 2024[62](index=62&type=chunk) - The weighted average remaining lease term is **6.2 years**, and the weighted average discount rate is **3.6%** as of June 30, 2025[63](index=63&type=chunk) [NOTE 10 — DEBT](index=18&type=section&id=NOTE%2010%20%E2%80%94%20DEBT) Debt Structure (in thousands) | Debt Type | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Long-term debt | $1,250,010 | $1,250,010 | | Total Short-term debt | $105,323 | $110,524 | | Total debt | $1,255,718 | $1,261,075 | - The Company's total weighted average effective interest rate for senior unsecured notes is **4.08%**, with a remaining weighted average tenure of **8.5 years** as of June 30, 2025[67](index=67&type=chunk) - The Company has a **$1 billion revolving credit facility** maturing in June 2029, with no outstanding borrowings as of June 30, 2025, and was in compliance with all debt covenants[68](index=68&type=chunk) [NOTE 11 — INCOME TAXES](index=19&type=section&id=NOTE%2011%20%E2%80%94%20INCOME%20TAXES) - The effective income tax rate for the six months ended June 30, 2025, was **22.2%**, lower than **23.7%** in the prior year, primarily due to the mix of earnings and timing of discrete tax items[71](index=71&type=chunk) - The recently enacted "One Big Beautiful Bill Act" (OBBBA) in the U.S. includes significant tax provisions effective from 2025 through 2027, which the Company is currently assessing for impact on its financial statements[72](index=72&type=chunk) [NOTE 12 — DERIVATIVES](index=20&type=section&id=NOTE%2012%20%E2%80%94%20DERIVATIVES) - The Company uses derivative instruments (foreign currency forward contracts, interest rate swaps) to manage exposures to currency exchange rates, interest rates, and commodity prices[73](index=73&type=chunk) - As of June 30, 2025, the gross notional amount of cash flow hedges (foreign currency) was **$93.502 million**, and net investment hedges (foreign currency) was **$380.099 million**. Undesignated foreign exchange forward contracts totaled **$427.439 million**[75](index=75&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - A gain of **$25.852 million** from terminated interest rate forward starting swap agreements in 2024 is being amortized to Interest expense, net over the life of the associated debt[76](index=76&type=chunk) [NOTE 13 - FAIR VALUE](index=21&type=section&id=NOTE%2013%20-%20FAIR%20VALUE) Fair Value of Assets and Liabilities (in thousands) - June 30, 2025 | Description | Balance as of June 30, 2025 | Level 1 | Level 2 | Level 3 | | :---------------------- | :-------------------------- | :------ | :------ | :------ | | **Assets:** | | | | | | Foreign exchange contracts | $8,068 | $0 | $8,068 | $0 | | Pension surplus | $21,327 | $21,327 | $0 | $0 | | **Liabilities:** | | | | | | Foreign exchange contracts | $3,381 | $0 | $3,381 | $0 | | Net investment contracts | $32,040 | $0 | $32,040 | $0 | | Deferred compensation | $54,016 | $0 | $54,016 | $0 | - Pension surplus assets are valued using Level 1 inputs (quoted market prices), while derivative contracts and deferred compensation liabilities are valued using Level 2 inputs (observable market data)[82](index=82&type=chunk)[83](index=83&type=chunk) [NOTE 14 – SUPPLIER FINANCING PROGRAM](index=22&type=section&id=NOTE%2014%20%E2%80%93%20SUPPLIER%20FINANCING%20PROGRAM) - Trade accounts payable included **$36.865 million** at June 30, 2025, and **$29.164 million** at December 31, 2024, related to suppliers participating in the financing program[86](index=86&type=chunk) - The program allows suppliers to factor receivables to a financial institution without affecting the Company's balance sheet classification of the payable[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis covers the Company's financial condition, operating results, segment performance, liquidity, and capital resources - The Company is the world's largest designer and manufacturer of arc welding and cutting products, with a global presence and three operating segments: Americas Welding, International Welding, and The Harris Products Group[89](index=89&type=chunk)[91](index=91&type=chunk) - The Company is monitoring the impact of U.S. government tariffs and retaliatory actions from trading partners, having taken steps to address initial trade policies[92](index=92&type=chunk) [General](index=23&type=section&id=General) - Lincoln Electric Holdings, Inc. is the world's largest designer and manufacturer of arc welding and cutting products, including equipment, consumables, and automated systems[89](index=89&type=chunk) - Products are sold globally through industrial distributors, retailers, and direct sales, organized into Americas Welding, International Welding, and The Harris Products Group segments[90](index=90&type=chunk)[91](index=91&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Consolidated Results of Operations (in thousands) - Three Months Ended June 30, 2025 vs 2024 | Metric (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------- | :--- | :--- | :--------- | :--------- | | Net sales | $1,088,673 | $1,021,683 | $66,990 | 6.6% | | Gross profit | $405,547 | $383,813 | $21,734 | 5.7% | | Operating income | $192,144 | $148,838 | $43,306 | 29.1% | | Net income | $143,396 | $101,708 | $41,688 | 41.0% | | Diluted EPS | $2.56 | $1.77 | $0.79 | 44.6% | Consolidated Results of Operations (in thousands) - Six Months Ended June 30, 2025 vs 2024 | Metric (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------- | :--- | :--- | :--------- | :--------- | | Net sales | $2,093,061 | $2,002,880 | $90,181 | 4.5% | | Gross profit | $770,995 | $752,212 | $18,783 | 2.5% | | Operating income | $357,062 | $313,885 | $43,177 | 13.8% | | Net income | $261,883 | $225,123 | $36,760 | 16.3% | | Diluted EPS | $4.66 | $3.91 | $0.75 | 19.2% | [Net Sales](index=25&type=section&id=Net%20Sales) Net Sales Change Drivers - Three Months Ended June 30, 2025 vs 2024 (in thousands) | Driver | Change ($) | Change (%) | | :----------- | :--------- | :--------- | | Volume | $(23,847) | (2.3)% | | Price | $52,975 | 5.2% | | Acquisitions | $30,507 | 3.0% | | Foreign Exchange | $7,355 | 0.7% | | Total Net Sales Change | $66,990 | 6.6% | Net Sales Change Drivers - Six Months Ended June 30, 2025 vs 2024 (in thousands) | Driver | Change ($) | Change (%) | | :----------- | :--------- | :--------- | | Volume | $(61,448) | (3.1)% | | Acquisitions | $78,706 | 3.9% | | Price | $78,649 | 3.9% | | Foreign Exchange | $(5,726) | (0.2)% | | Total Net Sales Change | $90,181 | 4.5% | - The increase in net sales for both periods was primarily due to higher pricing (driven by input costs) and acquisitions, partially offset by lower volumes[95](index=95&type=chunk) [Gross Profit](index=25&type=section&id=Gross%20Profit) - Gross profit as a percentage of sales decreased by **0.3%** for the three months and **0.8%** for the six months ended June 30, 2025, compared to the prior year, primarily due to lower volumes, partially offset by higher operational efficiencies[96](index=96&type=chunk) - LIFO charges of **$8.523 million** and **$10.284 million** were recorded for the three and six months ended June 30, 2025, respectively, due to rising input costs, contrasting with LIFO benefits in the comparable 2024 periods[96](index=96&type=chunk) [Selling, General & Administrative ("SG&A") Expenses](index=25&type=section&id=Selling%2C%20General%20%26%20Administrative%20(%22SG%26A%22)%20Expenses) - SG&A expenses increased for both the three and six months ended June 30, 2025, primarily due to higher employee costs and acquisitions, partially mitigated by effective cost management[97](index=97&type=chunk) [Operating Income](index=25&type=section&id=Operating%20Income) - Operating income as a percentage of sales increased to **17.6%** for the three months ended June 30, 2025 (from **14.6%** in 2024), and to **17.1%** for the six months (from **15.7%** in 2024)[98](index=98&type=chunk) - Excluding special items, Adjusted operating income as a percentage of sales was **17.9%** for the three months (up from **17.4%**) and **17.4%** for the six months (flat YoY)[98](index=98&type=chunk) [Rationalization and Asset Impairment Net Charges](index=25&type=section&id=Rationalization%20and%20Asset%20Impairment%20Net%20Charges) - Charges in 2025 relate to rationalization plans across all three segments[99](index=99&type=chunk) - Charges in 2024 primarily stemmed from rationalization plans in International Welding, including the disposition of the Russian entity[99](index=99&type=chunk) [Income Taxes](index=26&type=section&id=Income%20Taxes) - The effective tax rate was lower for both the three and six months ended June 30, 2025 (**21.9%** and **22.2%** respectively), compared to the same periods in 2024 (**25.6%** and **23.7%**), mainly due to the mix of earnings and timing of discrete tax items[100](index=100&type=chunk) [Segment Results](index=26&type=section&id=Segment%20Results) Net Sales by Segment - Three Months Ended June 30, 2025 vs 2024 (in thousands) | Segment | 2025 Net Sales | 2024 Net Sales | Change ($) | Change (%) | | :------------------------ | :------------- | :------------- | :--------- | :--------- | | Americas Welding | $696,730 | $648,936 | $47,794 | 7.4% | | International Welding | $232,824 | $238,758 | $(5,934) | (2.5)% | | The Harris Products Group | $159,119 | $133,989 | $25,130 | 18.8% | Net Sales by Segment - Six Months Ended June 30, 2025 vs 2024 (in thousands) | Segment | 2025 Net Sales | 2024 Net Sales | Change ($) | Change (%) | | :------------------------ | :------------- | :------------- | :--------- | :--------- | | Americas Welding | $1,349,837 | $1,273,035 | $76,802 | 6.0% | | International Welding | $451,885 | $474,519 | $(22,634) | (4.8)% | | The Harris Products Group | $291,339 | $255,326 | $36,013 | 14.1% | - Americas Welding sales increased due to price and acquisitions, despite lower volumes. International Welding sales decreased due to lower volumes, partially offset by foreign exchange benefits. The Harris Products Group saw strong sales growth driven by volume and price[102](index=102&type=chunk)[103](index=103&type=chunk)[105](index=105&type=chunk) - Adjusted EBIT for Americas Welding slightly increased for the three months but decreased for the six months due to lower volumes and acquisitions impact. International Welding's Adjusted EBIT increased for both periods due to effective cost management and improved operational efficiencies. The Harris Products Group showed significant Adjusted EBIT growth driven by higher organic sales and operational improvements[103](index=103&type=chunk)[105](index=105&type=chunk) [Non-GAAP Financial Measures](index=29&type=section&id=Non-GAAP%20Financial%20Measures) - Non-GAAP measures are used to assess underlying operating performance by excluding special items like rationalization charges, acquisition costs, and asset impairment[106](index=106&type=chunk) Reconciliation of GAAP to Adjusted Non-GAAP Financial Measures - Three Months Ended June 30, 2025 vs 2024 (in thousands, except per share) | Metric | 2025 GAAP | 2025 Adjusted | 2024 GAAP | 2024 Adjusted | | :-------------------------- | :-------- | :------------ | :-------- | :------------ | | Operating income | $192,144 | $195,115 | $148,838 | $177,622 | | Net income | $143,396 | $145,612 | $101,708 | $134,260 | | Adjusted EBIT | | $199,149 | | $181,019 | | Effective tax rate | 21.9% | 21.9% | 25.6% | 21.2% | | Diluted EPS | $2.56 | $2.60 | $1.77 | $2.34 | Reconciliation of GAAP to Adjusted Non-GAAP Financial Measures - Six Months Ended June 30, 2025 vs 2024 (in thousands, except per share) | Metric | 2025 GAAP | 2025 Adjusted | 2024 GAAP | 2024 Adjusted | | :-------------------------- | :-------- | :------------ | :-------- | :------------ | | Operating income | $357,062 | $364,560 | $313,885 | $349,036 | | Net income | $261,883 | $267,468 | $225,123 | $262,916 | | Adjusted EBIT | | $369,038 | | $354,695 | | Effective tax rate | 22.2% | 22.3% | 23.7% | 21.6% | | Diluted EPS | $4.66 | $4.76 | $3.91 | $4.57 | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary liquidity sources are operating cash flows and revolving credit facilities. As of June 30, 2025, the Company had **$299.481 million** in cash and cash equivalents and **$5.319 million** in outstanding borrowings under its **$1.033 billion** revolving credit facilities[111](index=111&type=chunk) - Capital allocation priorities include internal investment for organic growth, strategic acquisitions, and returning capital to shareholders through dividends and share repurchases[112](index=112&type=chunk) [Overview](index=30&type=section&id=Overview) - The Company's liquidity is primarily derived from operating cash flows and revolving credit facilities, with **$299.481 million** in cash and cash equivalents and **$5.319 million** in outstanding borrowings as of June 30, 2025[111](index=111&type=chunk) - Capital allocation prioritizes internal investment for organic growth, strategic acquisitions, and shareholder returns via dividends and share repurchases[112](index=112&type=chunk) [Cash Flow](index=30&type=section&id=Cash%20Flow) Key Cash Flow Measures (in thousands) - Six Months Ended June 30, 2025 vs 2024 | Cash Flow Activity (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :--- | :--- | :--------- | :--------- | | Cash provided by operating activities | $329,521 | $303,981 | $25,540 | 8.4% | | Cash used by investing activities | $(79,470) | $(200,746) | $121,276 | 60.4% | | Net cash used by financing activities | $(317,709) | $(218,452) | $(99,257) | -45.4% | | Decrease in Cash and cash equivalents | $(77,781) | $(121,115) | $43,334 | 35.8% | | Cash and cash equivalents at end of period | $299,481 | $272,672 | $26,809 | 9.8% | - Operating cash flow increased due to improved working capital. Investing cash flow improved significantly due to lower acquisition spending. Financing cash flow increased usage due to higher share repurchases[115](index=115&type=chunk)[116](index=116&type=chunk) - As of June 30, 2025, **$257.675 million** of the **$299.481 million** cash balance was held by international subsidiaries[115](index=115&type=chunk) [Revolving Credit Agreements](index=31&type=section&id=Revolving%20Credit%20Agreements) - The Company has a **$1 billion revolving credit facility**, maturing June 20, 2029, with full availability as of June 30, 2025, and no outstanding borrowings[119](index=119&type=chunk) - The facility bears interest at SOFR plus **1.10% to 1.60%** based on the net leverage ratio and includes financial covenants (max **3.5x EBITDA** net leverage, min **2.5x EBITDA** interest coverage), all of which were in compliance[68](index=68&type=chunk) [Working Capital Ratios](index=31&type=section&id=Working%20Capital%20Ratios) Working Capital Ratios | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :---------------- | :------------ | | Average operating working capital to Net sales | 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 | [Stock Repurchase Program](index=31&type=section&id=Stock%20Repurchase%20Program) - As of June 30, 2025, **5.5 million shares** remained available under the **10 million share** repurchase program authorized on February 12, 2020[121](index=121&type=chunk) - Total shares purchased through the program were **4.5 million** at a cost of **$811.7 million** (weighted average **$181.33 per share**) through June 30, 2025[141](index=141&type=chunk) [Rationalization and Asset Impairments](index=31&type=section&id=Rationalization%20and%20Asset%20Impairments) - The Company expects rationalization actions to positively impact future operating results and not materially affect liquidity or capital[122](index=122&type=chunk) - Management continues to evaluate its cost structure, and additional rationalization actions may occur[58](index=58&type=chunk) [Acquisitions](index=31&type=section&id=Acquisitions) - The Company completed several acquisitions in 2024 and 2025, including a **35% interest** in Alloy Steel Australia in Q2 2025, and Vanair, Inrotech, and RedViking in 2024, expanding its portfolio in mobile power solutions, automated welding, and system integration[37](index=37&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[123](index=123&type=chunk) [Return on Invested Capital](index=31&type=section&id=Return%20on%20Invested%20Capital) - Adjusted ROIC, a non-GAAP measure, is used to evaluate financial performance. It is calculated as rolling 12 months of Adjusted net operating profit after taxes divided by invested capital[124](index=124&type=chunk) Return on Invested Capital (ROIC) - Twelve Months Ended June 30, 2025 vs 2024 | Metric | 2025 | 2024 | | :------------------------------------ | :------------ | :------------ | | Net operating profit after taxes | $538,920 | $540,063 | | Adjusted net operating profit after taxes | $571,869 | $573,360 | | Invested capital | $2,635,331 | $2,417,590 | | ROIC as reported | 20.4% | 22.3% | | Adjusted ROIC | 21.7% | 23.7% | [New Accounting Pronouncements](index=32&type=section&id=New%20Accounting%20Pronouncements) - The Company adopted ASU No. 2023-09 (Income Taxes) as of January 1, 2025, requiring enhanced disclosures for rate reconciliation and income taxes paid, effective for the 2025 annual period[30](index=30&type=chunk)[127](index=127&type=chunk) - The Company is evaluating ASU No. 2024-03 (Expense Disaggregation Disclosures) and ASU No. 2023-06 (Disclosure Improvements), with effective dates in 2027 and 2028, respectively, or upon SEC removal of requirements[32](index=32&type=chunk)[127](index=127&type=chunk) [Forward-looking Statements](index=32&type=section&id=Forward-looking%20Statements) - The report contains forward-looking statements subject to risks and uncertainties, including general economic conditions, commercial and operating initiatives, cybersecurity, divestitures, interest rates, credit market volatility, currency exchange rates, litigation, acquisition integration, commodity prices, regulatory complexity, tax law changes (including OBBBA), tariffs, and geopolitical conflicts[128](index=128&type=chunk)[129](index=129&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure since December 31, 2024, with additional details in the Annual Report on Form 10-K - No material changes in market risk exposure have occurred since December 31, 2024[130](index=130&type=chunk) - Further details on market risk are available in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[130](index=130&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=33&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - The Company's management, including the CEO and CFO, evaluated and concluded that disclosure controls and procedures were effective as of June 30, 2025[131](index=131&type=chunk) [Changes in Internal Control Over Financial Reporting](index=33&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - No changes in internal control over financial reporting materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting during the quarter ended June 30, 2025[132](index=132&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The Company faces civil and administrative proceedings, including 1,236 asbestos-related cases as of June 30, 2025, with a net decrease of 25 claims - As of June 30, 2025, the Company was a co-defendant in approximately **1,236 asbestos-induced illness cases**, a net decrease of **25 claims** from the previous report[134](index=134&type=chunk) - Since January 1, 1995, **57,150 asbestos claims** against the Company were dismissed, **23** resulted in defense verdicts, and **1,020** were decided in favor of the Company via summary judgment motions[134](index=134&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) Refer to the Annual Report on Form 10-K and prior Form 10-Q for a comprehensive discussion of the Company's risk factors - Readers should refer to "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and Form 10-Q for the quarter ended March 31, 2025, for a comprehensive discussion of risks[135](index=135&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common share repurchases in Q2 2025, with 648,399 shares bought at $196.06 average, leaving 5.5 million shares available Issuer Purchases of Common Shares - Second Quarter 2025 | Period | Total Shares Repurchased | Average Price Paid Per Share | Shares Repurchased as Part of Publicly Announced Plans or Programs | Maximum Shares Remaining Under Plans/Programs | | :----------------- | :----------------------- | :--------------------------- | :--------------------------------------------------------------- | :-------------------------------------------- | | April 1 - 30, 2025 | 99,975 | $179.96 | 99,248 | 6,071,177 | | May 1 - 31, 2025 | 311,506 | $191.49 | 310,448 | 5,760,729 | | June 1 - 30, 2025 | 236,918 | $208.86 | 236,488 | 5,524,241 | | Total | 648,399 | $196.06 | 646,184 | | - As of June 30, 2025, **5.5 million shares** remained available under the **10 million share** repurchase program authorized on February 12, 2020[121](index=121&type=chunk)[137](index=137&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to Lincoln Electric Holdings, Inc[138](index=138&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[139](index=139&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO and CFO certifications and various Inline XBRL documents - Exhibits include certifications from the CEO and CFO (31.1, 31.2, 32.1) and Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.LAB, 101.PRE, 101.DEF, 104)[142](index=142&type=chunk) Signatures - The report was signed by Gabriel Bruno, Executive Vice President, Chief Financial Officer, and Treasurer, on July 31, 2025[146](index=146&type=chunk)

Lincoln Electric (LECO) Q2 2025 Earnings Call July 31, 2025 10:00 AM ET Company ParticipantsAmanda Butler - VP - IR & CommunicationsSteven Hedlund - President, CEO & ChairGabriel Bruno - EVP, CFO & TreasurerAngel Castillo - Executive Director - Head of US Machinery & Construction Equity ResearchSaree Boroditsky - SVP - Multi-IndustrialsNathan Jones - Managing DirectorSteve Barger - MD - Equity ResearchConference Call ParticipantsBryan Blair - MD & Senior Research AnalystMircea Dobre - Associate Director - R ...

Financial Data and Key Metrics Changes - The company reported a 7% sales growth in Q2 2025, driven by price management, M&A strategy, and improved volume performance [4][5] - Adjusted earnings per share increased by 11% to $2.60, with year-to-date cash flow generation exceeding 100% cash conversion of free cash flow [5][6] - Gross profit dollars rose approximately 6% to $406 million, with a gross profit margin of 37.3%, down 30 basis points year-over-year [12] - Reported operating income increased by 29%, while adjusted operating income rose approximately 10% to $195 million, with an adjusted operating income margin of 17.9% [13][14] Business Line Data and Key Metrics Changes - Americas Welding sales increased approximately 7%, driven by a 6.5% price increase and a 5% contribution from the Vanair acquisition, despite a 3% decline in volumes [14][15] - International Welding segment sales declined 2.5%, with a 4% favorable foreign exchange impact offset by a 7% drop in volumes; adjusted EBIT increased approximately 19% to $31 million [17] - Harris Products Group saw a 19% increase in sales, with 11% higher volumes and 7% higher prices, leading to a 28% increase in adjusted EBIT to $32 million [18][19] Market Data and Key Metrics Changes - Three of five end markets experienced growth, primarily driven by price increases, with notable strength in general industries and energy sectors [9][10] - Heavy industries faced challenges but showed incremental improvement, while agricultural machinery OEMs are expected to recover in 2026 [10] - Construction infrastructure remained inconsistent, but organic sales were steady in the first half of the year [10] Company Strategy and Development Direction - The company is focused on maintaining a neutral price-cost position while pursuing operational initiatives to offset inflation [22] - The acquisition of Alloy Steel is expected to enhance margins and earnings immediately upon closing, with plans to scale their solutions into new markets [6][22] - The company aims to achieve approximately $60 million in savings from a six-quarter program, with a balanced mix of temporary and permanent savings [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are deferring capital spending due to policy uncertainty, impacting equipment and automation portfolios [7][9] - July order trends have held steady, with strength observed in general industries, while heavy industries remain cautious [27][28] - The company expects low single-digit organic sales growth for the full year, with acquisitions contributing approximately 270 basis points to sales growth [22][24] Other Important Information - The company maintained a solid adjusted return on invested capital of 21.7% and returned $169 million to shareholders through dividends and share repurchases [20][21] - The company anticipates a steady adjusted operating income margin for the full year, reflecting a high teens percent incremental margin [24] Q&A Session Summary Question: Trends in customer demand and orders - Management observed that July order trends are holding, with strength in general industries and cautiousness in heavy industries [27][28] Question: Dynamics in the Harris segment volume - The volume uplift in the Harris segment was driven by initial inventory stocking for a new retail partner, with underlying organic demand remaining flat [29][30] Question: Impact of tariff certainty on customer behavior - Management indicated that clarity around tariff rates is expected to alleviate the wait-and-see attitude among customers regarding capital investments [32] Question: Automation quoting activity and demand inflection - The quoting activity is strong, but customers are cautious due to uncertainties in trade policy, impacting their investment decisions [36][37] Question: Comments on consumables volume versus price - Pricing on consumables is higher than on equipment, with volumes holding steady, indicating resilience in the market [58][59] Question: Expectations for pricing in Q3 - The company expects an additional 200 basis points of pricing impact in Q3 due to actions taken in Q2, while monitoring trade actions for further adjustments [62][63] Question: Incentive compensation programs - The reinstatement of merit increases was based on better-than-expected volume performance and a more stable market environment [68][70]

Financial Performance Highlights - Net sales reached $1088.7 million, a 6.6% increase compared to the previous year's $1021.7 million[13] - Organic sales grew by 2.9%[8] - Adjusted operating income margin improved to 17.9%, a 50 bps increase year-over-year[8] - Adjusted EPS increased to $2.60, an 11.1% rise from the prior year's $2.34[9, 13] - Cash flow from operations was $144 million, a 16% decrease compared to the previous year[8] Segment Performance - Americas Welding segment net sales increased by 7.4% to $696.7 million[15] - International Welding segment net sales decreased by 2.5% to $232.8 million[18] - The Harris Products Group net sales increased by 18.8% to $159.1 million[21] Sales Mix and End Market Performance - Overall sales growth was driven by price increases of 5.2%, offset by a volume decrease of 2.3%[14] - General Industries saw high single-digit percent growth, while Heavy Industries experienced a low-teens percent decrease[11] Capital Allocation - The company returned $169 million to shareholders through dividends ($42 million) and share repurchases ($127 million)[9] - Capital expenditures are projected to be between $100 million and $120 million for the full year[32]

Lincoln Electric Holdings (LECO) came out with quarterly earnings of $2.6 per share, beating the Zacks Consensus Estimate of $2.32 per share. This compares to earnings of $2.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +12.07%. A quarter ago, it was expected that this manufacturer of specialized welding products and other equipment would post earnings of $2.22 per share when it actually produced earnings of $2.16, delive ...

Exhibit 99.1 Investor Relations: Amanda Butler (216) 383-2534 Amanda_Butler@lincolnelectric.com LINCOLN ELECTRIC REPORTS SECOND QUARTER 2025 RESULTS Second Quarter 2025 Highlights CLEVELAND, Thursday, July 31, 2025 - Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported second quarter 2025 net income of $143.4 million, or diluted earnings per share (EPS) of $2.56, which includes special item after-tax net charges of $2.2 million, or $0.04 EPS. This compares with prior year period net ...

Group 1: Investment Recommendations - Jim Cramer recommended buying SoFi Technologies, Inc. (SOFI) as it plans to allow retail clients to invest in companies like SpaceX, OpenAI, and Epic Games [1] - Cramer expressed a preference for CrowdStrike Holdings, Inc. (CRWD) over Okta, Inc. (OKTA), despite Okta's strong first-quarter revenue of $688 million, which exceeded analyst estimates [2] - Cramer suggested waiting for a pullback in Lincoln Electric Holdings, Inc. (LECO) shares before buying [4] Group 2: Analyst Ratings and Price Targets - Keefe, Bruyette & Woods analyst Sanjay Sakhrani maintained an Outperform rating for American Express Company (AXP) and raised the price target from $360 to $371 [3] - Truist Securities also maintained a Buy rating for American Express and increased the price target from $335 to $340 [3] - BMO Capital analyst Ryan Griffin initiated coverage on Fair Isaac Corporation (FICO) with an Outperform rating and set a price target of $2,000 [3] Group 3: Company Performance and Stock Movements - SoFi shares increased by 3.7% to settle at $20.97 [7] - Okta shares decreased by 4.8% to close at $94.41 [7] - American Express shares rose by 2.5% to close at $325.24 [7] - Fair Isaac shares fell by 0.5% to settle at $1,584.38 [7] - Lincoln Electric shares increased by 1.4% to close at $223.47 [7] - Campbell's Company (CPB) reported better-than-expected third-quarter results, although its shares slipped by 0.8% to settle at $30.49 [4][7]