Core Insights - Lincoln Electric's first quarterly earnings report of 2025 showed a mixed performance, with the company missing analyst profitability estimates, leading to a stock price decline of over 4% [1] - The company's net sales exceeded $1 billion, reflecting a 2% year-over-year improvement, surpassing analyst projections [2] - Non-GAAP net income fell to just under $122 million, or $2.16 per share, down from nearly $129 million a year ago, while analysts had expected $2.24 per share [3] Sales Performance - Lincoln Electric's net sales for the quarter were slightly over $1 billion, marking a 2% increase compared to the previous year [2] - The sales figure was higher than the average analyst projection, which was slightly below $976 million [2] Profitability Analysis - The company's non-GAAP net income decreased to just under $122 million from almost $129 million year-over-year [3] - Analysts had anticipated a higher profit of $2.24 per share, indicating a shortfall in expected profitability [3] Growth Drivers - Management attributed the sales increase primarily to recent acquisitions, including the purchase of Vanair Manufacturing, a mobile power solutions maker [4] - The specific price of the acquisition has not been disclosed [4] - Excluding acquisitions, Lincoln Electric's organic sales experienced a decline of over 1% year-over-year [4] Investor Sentiment - Investors are generally cautious when a company's growth is primarily driven by acquisitions rather than organic growth [5] - There is a concern that Lincoln Electric's core offerings may not be performing strongly in the market [5] - Moving forward, management will need to demonstrate growth from existing operations rather than relying on acquisitions [5]

Lincoln Electric (LECO) Q1 2025 Earnings Call April 30, 2025 10:00 AM ET Company Participants Amanda Butler - VP, IR & CommunicationsSteven Hedlund - Chair, President and Chief Executive OfficerGabriel Bruno - EVP, CFO & TreasurerSaree Boroditsky - Senior Vice PresidentStefan Diaz - Vice President, Equity ResearchChristian Zyla - Senior Associate Equity ResearchChristopher Dankert - SVP - Equity Research Conference Call Participants Bryan Blair - Managing Director & Senior Research AnalystMircea Dobre - Ass ...

Lincoln Electric (LECO) Q1 2025 Earnings Call April 30, 2025 10:00 AM ET Speaker0 Greetings, and welcome to the Lincoln Electric twenty twenty five First Quarter Financial Results Conference Call. All lines have been placed on mute and this call is being recorded. It is my pleasure to introduce your host, Amanda Butler, Vice President of Investor Relations and Communications. Thank you. You may begin. Speaker1 Thank you, Celine, and good morning, everyone. Welcome to Lincoln Electric's first quarter twenty ...

Lincoln Electric Holdings (LECO) came out with quarterly earnings of $2.16 per share, missing the Zacks Consensus Estimate of $2.22 per share. This compares to earnings of $2.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.70%. A quarter ago, it was expected that this manufacturer of specialized welding products and other equipment would post earnings of $2 per share when it actually produced earnings of $2.57, deliverin ...

Financial Performance - Net sales for the three months ended March 31, 2025, were $1,004,388, representing a 2.4% increase from $981,197 in the same period of 2024[80]. - Gross profit decreased to $365,448, or 36.4% of sales, down from 37.5% in the prior year, primarily due to operational inefficiencies[80][82]. - Operating income was $164,918, or 16.4% of sales, compared to 16.8% in the previous year, with adjusted operating income at 16.9%[80][84]. - Net income for the quarter was $118,487, a decrease of 4.0% from $123,415 in 2024, resulting in diluted earnings per share of $2.10[80][90]. - Adjusted EBIT for the consolidated company was $169,889, down 2.2% from $173,676 in the prior year[90]. - Operating income for Q1 2025 was reported at $164,918, a slight decrease from $165,047 in Q1 2024, with adjusted operating income at $169,445, down from $171,414[92]. - Net income for Q1 2025 was $118,487, compared to $123,415 in Q1 2024, while adjusted net income decreased to $121,856 from $128,656[92]. Segment Performance - The Americas Welding segment reported net sales of $653,107, a 4.6% increase, while International Welding saw a decline of 7.1% to $219,061[86][90]. - The Harris Products Group experienced a 9.0% increase in net sales to $132,220, driven by effective cost management[90]. Cash Flow and Capital Expenditures - Cash provided by operating activities increased to $185,693 in Q1 2025, up by $52,399 from $133,294 in Q1 2024[97]. - The company had $394,705 in cash and cash equivalents as of March 31, 2025, with $4,391 in outstanding borrowings under its $1,031,457 revolving credit facilities[93]. - Anticipated capital expenditures for 2025 are projected to be between $100,000 and $120,000, aimed at increasing capacity and improving operational effectiveness[98]. Tax and Financial Ratios - The effective tax rate increased to 22.7% for the three months ended March 31, 2025, compared to 22.2% in the same period of 2024[80][85]. - The effective tax rate as reported was 22.7% for Q1 2025, slightly higher than 22.2% in Q1 2024, with an adjusted effective tax rate of 22.8%[92]. - The company reported a return on invested capital (ROIC) of 19.1% for the twelve months ended March 31, 2025, down from 23.9% in the previous year[107]. - Average operating working capital to net sales ratio was 17.8% as of March 31, 2025, compared to 18.8% a year earlier[102]. Strategic Initiatives - The company faced a decrease in organic sales due to softer demand, partially offset by acquisitions[81]. - The company continues to monitor trade negotiations and their potential impact on business operations following U.S. tariffs on imported goods[78]. - The company continues to explore global expansion and acquisitions, with operational cash flow expected to fund these initiatives[96]. - The company has a share repurchase program authorized for up to 10 million shares, with 6.2 million shares available for repurchase as of March 31, 2025[103].

April 30, 2025 LINCOLN ELECTRIC HOLDINGS, INC. Q1 2025 Earnings Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Statements made during this presentation which are not historical facts may be considered forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied. Forward-looking statements generally can be identified by the use of words such as "may," "will," "expect, ...

Investor Relations: Amanda Butler (216) 383-2534 Amanda_Butler@lincolnelectric.com Exhibit 99.1 LINCOLN ELECTRIC REPORTS FIRST QUARTER 2025 RESULTS First Quarter 2025 Highlights CLEVELAND, Wednesday, April 30, 2025 - Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported first quarter 2025 net income of $118.5 million, or diluted earnings per share (EPS) of $2.10, which included special item after-tax net charges of $3.4 million, or $0.06 EPS. This compares with prior year period net ...

Core Insights - The Motley Fool aims to enhance the financial well-being of individuals by providing investment solutions and market analysis [1] Company Overview - Founded in 1993, The Motley Fool is a financial services company focused on making the world smarter, happier, and richer [1] - The company reaches millions of people monthly through various platforms, including premium investing solutions, free guidance, and market analysis on Fool.com [1] - The Motley Fool also produces top-rated podcasts and operates a non-profit organization, The Motley Fool Foundation [1]

Financial Performance - Net sales for 2024 were $4,008,670, a decrease of $182,966 or 4.4% compared to 2023's $4,191,636, primarily due to softer demand across all segments[116]. - Gross profit increased to $1,472,912, representing 36.7% of sales, up from 35.0% in 2023, driven by effective cost management and operational efficiencies[116][118]. - Operating income for 2024 was $636,462, or 15.9% of sales, down from 17.1% in 2023, with adjusted operating income at 17.6%[116][121]. - Net income decreased to $466,108, a decline of $79,140 or 14.5% from 2023's $545,248, with diluted earnings per share falling to $8.15 from $9.37[116]. - SG&A expenses rose to $780,590, accounting for 19.5% of sales, primarily due to acquisition-related costs[116][119]. - Rationalization and asset impairment net charges were $55,860 in 2024, significantly higher than the net gains of $36,187 in 2023[116][120]. - Adjusted EBIT for 2024 was $713,605, down $17,769 or 2.4% from $731,374 in 2023[127]. - Cash provided by operating activities decreased by $68,565 to $598,977 in 2024 compared to 2023[138]. - Cash used by investing activities increased significantly by $286,502 to $361,231 in 2024, primarily due to acquisitions[138]. - Return on invested capital (ROIC) as reported was 19.2% in 2024, down from 24.0% in 2023[154]. - Adjusted return on invested capital was 21.8% in 2024, compared to 24.1% in 2023[154]. Segment Performance - The Americas Welding segment reported net sales of $2,564,847, a decrease of 3.4% from 2023, while International Welding saw a 10.2% decline to $933,722[124]. - The Harris Products Group experienced a 2.8% increase in net sales to $510,101, attributed to price actions in response to higher commodity costs[124][125]. - Americas Welding segment net sales decreased by $90,699 or 3.4% to $2,564,847 in 2024[127]. - International Welding segment net sales decreased by $106,284 or 10.2% to $933,722 in 2024[127]. - The Harris Products Group saw an increase in net sales of $14,017 or 2.8% to $510,101 in 2024[127]. Tax and Liabilities - The effective tax rate increased to 21.6% in 2024 from 20.6% in 2023, influenced by the mix of earnings and discrete tax items[116][123]. - The Company had total liabilities of $55,425 for deferred compensation as of December 31, 2024[148]. - The Company had approximately $207,739 of gross deferred tax assets as of December 31, 2024[167]. - A valuation allowance of $35,284 was recorded against certain deferred tax assets based on realizability assessments[167]. Cash and Debt Management - As of December 31, 2024, the company had $377,262 in cash and cash equivalents and $10,520 in outstanding borrowings under its revolving credit facilities[134]. - Total debt outstanding as of December 31, 2024, was $1,261,075, including $110,524 in short-term debt[145]. - Total future minimum lease payments amounted to $61,942, with $14,896 classified as short-term lease obligations[146]. - The Company had total purchase commitments of $91,028 as of December 31, 2024, including $89,792 in current liabilities[147]. Risk Management - The Company manages financial market risks, including currency exchange rates, commodity prices, and interest rates, using derivative financial instruments[182]. - The gross notional dollar amount of foreign exchange contracts at December 31, 2024, was $96,444[186]. - A hypothetical 10% change in year-end exchange rates would have resulted in an increase or decrease to income before income taxes of $17,271 related to foreign exchange positions[187]. - A hypothetical 10% strengthening or weakening in the U.S. dollar would have changed accumulated other comprehensive income (loss) by $32,617[187]. - The notional dollar amount of a foreign currency forward contract hedge designated as a net investment hedge was $319,450 at December 31, 2024[187]. - The Company does not expect any counterparties to fail to meet their obligations, minimizing credit risk through investments with major banks[188]. Operational Investments - The company continues to invest in research and development to maintain its market-leading position and improve product quality and productivity[105]. - The company anticipates capital expenditures of $100,000 to $120,000 in 2025 for capacity and operational improvements[141]. - Average operating working capital to net sales decreased to 16.9% in 2024 from 17.1% in 2023[143]. - The excess of current cost over LIFO cost was $120,633 in 2024, down from $129,946 in 2023[170].

Core Viewpoint - Lincoln Electric Holdings, Inc. (LECO) reported strong adjusted earnings for Q4 2024, exceeding expectations, despite a decline in total revenues and organic sales [1][2][9]. Financial Performance - Adjusted earnings per share for Q4 2024 were $2.57, surpassing the Zacks Consensus Estimate of $2.00, representing a 4.9% year-over-year increase [1] - Including one-time items, earnings were $2.47 per share, down from $2.70 in the same quarter last year [2] - Total revenues decreased by 3.4% year-over-year to $1.02 billion, but exceeded the Zacks Consensus Estimate of $996 million [2][10] - Organic sales fell by 7.5%, while foreign exchange had a negative impact of 1.1%, partially offset by a 5.2% contribution from acquisitions [2] Costs and Margins - Cost of goods sold decreased by 5% year-over-year to $653 million, leading to a gross profit decline of 0.6% to $369 million [3] - Gross margin improved to 36.1% from 35.1% in the previous year [3] - Selling, general and administrative expenses fell by 1% to $187 million, while adjusted operating profit rose by 1.9% to $186 million, resulting in an adjusted operating margin of 18.2% [4] Segment Performance - Americas Welding segment saw a slight sales increase of 0.2% to $692 million, with adjusted operating income rising to $132 million [5] - International Welding segment experienced a significant revenue drop of 16.3% to $254 million, with adjusted operating profit decreasing to $33 million [6] - The Harris Products Group reported a strong performance with sales up 11.3% to approximately $127 million and adjusted operating profit increasing to $22 million [7] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of 2024 were approximately $377 million, down from $394 million at the end of 2023 [8] - The company generated a record cash flow from operations of $599 million in 2024, compared to $668 million in 2023 [8] - Lincoln Electric returned $426 million to shareholders through dividends and share repurchases during the year [8] - Debt to invested capital ratio increased to 48.7% from 45.8% year-over-year [8] Annual Results - For the full year 2024, adjusted earnings per share were $9.29, a decrease of 1.3% from $9.41 in 2023, but above the Zacks Consensus Estimate of $8.72 [9] - Total revenues for 2024 fell by 4.4% to $4.01 billion, surpassing the Zacks Consensus Estimate of $3.98 billion [9][10] - The company faced a 6.5% decline in organic sales, while acquisitions contributed positively with a 2.5% increase [10] Stock Performance - Lincoln Electric's shares have declined by 6.4% over the past year, contrasting with a 1.6% growth in the industry [11]