Financial Data and Key Metrics Changes - The company achieved $4 billion in net sales for the full year, reflecting a 6.5% decline in organic sales but record profitability with a 17.6% adjusted operating income margin [9][10] - Adjusted earnings per share reached $9.29, with a strong cash flow generation of over 90% cash conversion [11][30] - Fourth-quarter sales declined 3% to $1.022 billion, primarily due to an 8.5% decrease in volumes, while pricing increased by 1% [18][20] Business Line Data and Key Metrics Changes - The automation portfolio generated $911 million in sales, on track to meet the $1 billion target for 2025 [10] - Americas Welding sales remained steady, with adjusted EBIT increasing 2% to $132 million, despite a 7% decline in volumes [25][26] - International Welding sales declined approximately 17%, with adjusted EBIT compressing 24% on lower sales [27][28] - Harris Products Group saw a 11% increase in sales, with adjusted EBIT rising 42% to $22 million [29] Market Data and Key Metrics Changes - Fourth-quarter organic sales performance reflected softer manufacturing activity across most end markets, particularly from large OEMs [15] - Retail channels continued to grow, while industrial distribution in the Americas showed resilience compared to a low double-digit decline in direct OEM sales [16] Company Strategy and Development Direction - The company is focused on achieving or exceeding targets across financial and sustainability metrics under its higher standard 2025 strategy [12] - The management emphasized a balanced capital allocation strategy, investing over $1.3 billion in growth while returning approximately $1.6 billion to shareholders [14] - The company plans to capitalize on growth opportunities and drive margin expansion in 2025, despite a cautious outlook for low single-digit sales growth [34][39] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges from deferred capital spending and manufacturing weakness but expressed optimism about a potential pickup in automation projects serving the automotive industry [15][17] - The company is preparing for low single-digit sales growth in 2025, with expectations of pressure on volumes in the first half of the year [34][36] - Management highlighted the importance of agility in navigating potential impacts from trade policies and tariffs [63][94] Other Important Information - The company achieved a 23% increase in returns to shareholders through a higher dividend payout rate and $264 million in share repurchases [11] - Cash flows from operations were $96 million for the fourth quarter and $599 million for the full year, with a 91% cash conversion ratio [30] Q&A Session Summary Question: Insights on welding business and competitive dynamics - Management highlighted differences in business models, particularly in automation, and noted that while organic growth has lagged competitors, they do not believe they are losing market share [43][50] Question: Guidance for first-quarter organic sales by segment - Management expects more pressure on volumes in the first half of the year, with low single-digit declines anticipated [51][52] Question: Outlook for organic sales growth by end markets - Management provided a high-level overview, indicating continued pressure in various sectors, including automotive and heavy industries, with expectations for some recovery later in the year [54][60] Question: Impact of tariffs on demand and customer sentiment - Management noted that customers are also awaiting clarity on tariff policies, which adds uncertainty to demand forecasts [92][94] Question: Automation order trends and growth expectations - Management indicated that long-cycle projects in automation are beginning to see renewed interest from existing customers, which is encouraging for future growth [70][112] Question: Cost savings and their impact on future demand - Management discussed permanent cost actions that will structurally shape the business and improve operating margins, while also noting temporary cost savings during the current down cycle [72][75]

February 13, 2025 LINCOLN ELECTRIC HOLDINGS, INC. Q4 & Full Year 2024 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," " ...

Core Insights - Lincoln Electric reported an adjusted EPS of $2.57 for Q4 2024, surpassing analyst expectations of $1.99, while revenue was $1,022 million, exceeding the forecast of $992 million but down from $1,058.5 million in the previous year [2][3][6] Financial Performance - Adjusted EPS increased by 4.9% year-over-year from $2.45 in Q4 2023 [3] - Revenue decreased by 3.4% compared to Q4 2023, influenced by a 6.5% decline in organic sales [3][6] - Adjusted operating margin improved to 18.2%, up from 17.2% year-over-year, indicating effective cost management [3][6] - Net income fell by 10.5% year-over-year to $140.2 million, down from $156.6 million in Q4 2023 [3][7] Business Overview - Lincoln Electric specializes in welding products, industrial automation, and cutting equipment, with a focus on expanding its industrial automation segment, anticipating nearly $1 billion in revenue [4][8] - The company maintains a competitive edge through high-quality products, strong brand loyalty, and investment in technology and workforce [5] Challenges and Strategic Focus - The company faced challenges in organic sales and macroeconomic pressures, which affected overall revenue [6][7] - An acquisition contributed positively, offsetting some of the organic sales decline [8] - Looking ahead, Lincoln Electric expects continued sales pressures in Q1 2025 due to subdued industrial demand but remains optimistic about recovery through strategic cost management and innovative product launches [9]

Core Insights - Lincoln Electric Holdings (LECO) reported revenue of $1.02 billion for Q4 2024, a year-over-year decline of 3.5%, while EPS increased to $2.57 from $2.45 a year ago, exceeding consensus estimates for both revenue and EPS [1] Financial Performance - Revenue of $1.02 billion compared to Zacks Consensus Estimate of $995.94 million, resulting in a surprise of +2.62% [1] - EPS of $2.57 compared to consensus estimate of $2.00, delivering a surprise of +28.50% [1] - Shares returned +1% over the past month, underperforming the Zacks S&P 500 composite's +3.9% [3] Segment Performance - Net Sales for The Harris Products Group: $124.27 million, exceeding the average estimate of $113.42 million, representing a year-over-year change of +11.3% [4] - Net Sales for International Welding: $242.98 million, below the average estimate of $257.87 million, reflecting a year-over-year decline of -16.8% [4] - Net Sales for Americas Welding: $654.79 million, slightly above the estimated $632.30 million, with a year-over-year change of 0% [4] Total Sales Analysis - Total Sales for The Harris Products Group: $127.07 million, surpassing the average estimate of $114.65 million, with a year-over-year change of +11.3% [4] - Total Sales for International Welding: $254.21 million, below the average estimate of $262.98 million, indicating a year-over-year decline of -16.3% [4] - Total Sales for Americas Welding: $691.92 million, exceeding the estimated $657.33 million, with a year-over-year change of +0.3% [4] Inter-segment Sales - Inter-segment sales for Americas Welding: $37.13 million, above the average estimate of $33.67 million, representing a year-over-year change of +4.6% [4] - Inter-segment sales for International Welding: $11.23 million, exceeding the average estimate of $9.62 million, with a year-over-year change of -2.8% [4] - Inter-segment sales for The Harris Products Group: $2.80 million, slightly above the average estimate of $2.77 million, reflecting a year-over-year change of +8.7% [4] Adjusted EBIT - Adjusted EBIT for Americas Welding: $131.92 million, exceeding the average estimate of $112.85 million [4] - Adjusted EBIT for Corporate/Eliminations: $0.81 million, compared to an estimated -$1.81 million [4]

Company Performance - Lincoln Electric Holdings (LECO) reported quarterly earnings of $2.57 per share, exceeding the Zacks Consensus Estimate of $2 per share, and up from $2.45 per share a year ago, adjusted for non-recurring items [1] - The earnings surprise for this quarter was 28.50%, following a previous quarter where earnings were $2.14 against an expectation of $2.05, resulting in a surprise of 4.39% [2] - The company achieved revenues of $1.02 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.62%, although this represents a decline from year-ago revenues of $1.06 billion [3] Market Outlook - Lincoln Electric shares have increased approximately 3.5% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [4] - The company's earnings outlook is mixed, with current consensus EPS estimates for the upcoming quarter at $2.11 on revenues of $982.75 million, and for the current fiscal year at $9.21 on revenues of $4.09 billion [8] Industry Context - The Manufacturing - Tools & Related Products industry, to which Lincoln Electric belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, indicating potential challenges ahead [9]

Financial Performance - Fourth quarter 2024 net income was $140.2 million, or diluted EPS of $2.47, down from $156.6 million, or $2.70 EPS in the prior year[2] - Full year 2024 net income decreased to $466.1 million, or $8.15 EPS, compared to $545.2 million, or $9.37 EPS in 2023[5] - Fourth quarter 2024 sales decreased by 3.4% to $1,022.0 million, with a 7.5% decrease in organic sales and a 1.1% unfavorable foreign exchange impact[3] - Full year 2024 sales were $4,008.7 million, a decline of 4.4% from $4,191.6 million in 2023, driven by a 6.5% decrease in organic sales[6] - Operating income for the fourth quarter 2024 was $177.0 million, or 17.3% of sales, down from $204.0 million, or 19.3% of sales in the prior year[3] - Full year 2024 operating income was $636.5 million, or 15.9% of sales, compared to $717.8 million, or 17.1% of sales in 2023[6] - The company reported adjusted net income for 2024 of $531.3 million, a decrease of 3.0% from $547.9 million in the prior year[5] - Adjusted operating income for the full year 2024 was $704,390, down 2.0% from $718,787 in 2023, representing 17.6% of total sales[18] - Net income for Q4 2024 was $140,229, a decline of 10.4% compared to $156,644 in Q4 2023[18] - Adjusted net income for the full year 2024 was $531,265, a decrease of 3.0% from $547,922 in 2023[18] Cash Flow and Shareholder Returns - Cash flows from operations for 2024 totaled $599 million, with $426 million returned to shareholders through dividends and share repurchases[7] - Cash provided by operating activities for the full year 2024 was $598,977, a decrease of 10.3% from $667,542 in 2023[27] - Cash dividends paid per share increased to $2.84 in 2024 from $2.56 in 2023, reflecting a commitment to returning value to shareholders[27] Debt and Capital Structure - The company maintains a total debt to invested capital ratio of 48.7% as of December 31, 2024, up from 45.8% in the prior year[15] - Total debt increased to $1,261,075 in 2024 from $1,105,210 in 2023, reflecting a significant rise in financial leverage[22] Tax and Efficiency Metrics - The effective tax rate for the fourth quarter 2024 was 16.1%, compared to 20.5% in the prior year[13] - The effective tax rate for Q4 2024 was reported at 16.1%, down from 20.5% in Q4 2023[18] - The company reported a return on invested capital of 19.2% in 2024, down from 24.0% in 2023, indicating a decline in capital efficiency[22] Segment Performance - The Americas Welding segment reported net sales of $2,564,847 for the year ended December 31, 2024, down 3.4% from $2,655,546 in 2023[38] - The International Welding segment experienced a 10.2% decline in net sales, totaling $933,722 for the year ended December 31, 2024, compared to $1,040,006 in 2023[38] - The Harris Products Group saw a slight increase in net sales to $510,101 for the year ended December 31, 2024, up from $496,084 in 2023, marking a 2.8% growth[38] Future Outlook - Future outlook indicates a focus on market expansion and potential acquisitions to drive growth in the coming fiscal year[35]

The upcoming report from Lincoln Electric Holdings (LECO) is expected to reveal quarterly earnings of $2 per share, indicating a decline of 18.4% compared to the year-ago period. Analysts forecast revenues of $995.94 million, representing a decrease of 5.9% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Bef ...

Company Overview - Lincoln Electric (NASDAQ: LECO) has a history dating back to 1895 and is known for its innovative welding technology and industrial solutions [1] Product and Market Focus - The company's product lineup is diverse and innovative, indicating a strong commitment to advancing welding technology [1] Investment Philosophy - The investment approach emphasizes finding opportunities that align with personality and analytical strengths, focusing on value investing principles [1] - The company acknowledges the difficulty of consistently beating the S&P 500 benchmark, leading to a strategy that includes a significant portion of the portfolio in index funds while selectively pursuing active investments [1] Analytical Approach - The analytical focus is on balance sheet strength from a credit perspective, near-term cash flow generation, next twelve-month earnings forecasts, and book value analysis, particularly for financial sector investments [1] Professional Background - The investment strategy is supported by over 10 years of professional experience in financial sector consulting, which aids in identifying overlooked opportunities [1]

The market expects Lincoln Electric Holdings (LECO) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Lincoln Electric Holdings (LECO) , which belongs to the Zacks Manufacturing - Tools & Related Products industry, could be a great candidate to consider.This manufacturer of specialized welding products and other equipment has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for ...