Lincoln Electric(US:LECO)2025-10-30 17:36Financial Performance - Net sales for Q3 2025 reached $1,061,227, an increase of 7.9% compared to $983,759 in Q3 2024[94] - Gross profit for Q3 2025 was $389,311, representing 36.7% of sales, up from 35.8% in Q3 2024[94] - Operating income for Q3 2025 was $176,657, or 16.6% of sales, compared to 14.8% in the prior year[94] - Net income for Q3 2025 was $122,628, a 21.7% increase from $100,756 in Q3 2024[94] - Diluted earnings per share for Q3 2025 increased to $2.21, up 24.9% from $1.77 in Q3 2024[94] - For the nine months ended September 30, 2025, net sales totaled $3,154,288, a 5.6% increase from $2,986,639 in the same period of 2024[94] - Consolidated net sales for the three months ended September 30, 2025, reached $1,061,227, an increase of $77,468 (7.9%) from $983,759 in 2024[104] - Consolidated net income for the three months ended September 30, 2025, was $122,628, up $21,872 (21.7%) from $100,756 in 2024[104] Segment Performance - The Americas Welding segment reported net sales of $691,794 for Q3 2025, an 8.6% increase from Q3 2024[101] - The Harris Products Group saw a 14.8% increase in net sales for Q3 2025, reaching $149,804[101] - Americas Welding net sales increased by $54,768 (8.6%) to $691,794 for the three months ended September 30, 2025, compared to $637,026 in 2024[104] - International Welding adjusted EBIT rose by $5,720 (28.5%) to $25,821 for the three months ended September 30, 2025, compared to $20,101 in 2024[104] - The Harris Products Group net sales increased by $19,295 (14.8%) to $149,804 for the three months ended September 30, 2025, compared to $130,509 in 2024[104] Earnings and Adjusted Metrics - Adjusted EBIT for the nine months ended September 30, 2025, was $556,586, an increase of $29,813 (5.7%) compared to $526,773 in 2024[105] - Americas Welding adjusted EBIT decreased by $4,537 (1.1%) to $393,728 for the nine months ended September 30, 2025, compared to $398,265 in 2024[105] - The Harris Products Group adjusted EBIT increased by $17,530 (26.3%) to $84,291 for the nine months ended September 30, 2025, compared to $66,761 in 2024[105] - Consolidated adjusted EBIT as a percent of sales remained stable at 17.6% for the nine months ended September 30, 2025, compared to 17.6% in 2024[105] - Operating income for Q3 2025 was reported at $176,657 million, an increase from $145,560 million in Q3 2024, while adjusted operating income rose to $184,562 million from $169,756 million[110] - Net income for Q3 2025 was $122,628 million, compared to $100,756 million in Q3 2024, with adjusted net income increasing to $137,218 million from $122,368 million[110] Cash Flow and Capital Management - Cash provided by operating activities for the nine months ended September 30, 2025, was $566,208 million, up from $503,182 million in the same period of 2024, reflecting a $63,026 million increase[116] - The company had $292,997 million in cash and cash equivalents as of September 30, 2025, with $88,199 million in outstanding borrowings under its $1,031,386 million revolving credit facilities[112] - Anticipated capital expenditures for 2025 are projected to be between $100,000 million and $120,000 million, aimed at increasing capacity and improving operational effectiveness[120] - Cash used by financing activities increased to $425,394 million for the nine months ended September 30, 2025, from $152,298 million in the same period of 2024, primarily due to increased share repurchases[116] - The company has 5.3 million shares available for repurchase under its authorized program as of September 30, 2025[123] Tax and Risk Management - The effective tax rate for Q3 2025 was 26.1%, up from 23.6% in Q3 2024[94] - The effective tax rate as reported for Q3 2025 was 26.1%, with an adjusted effective tax rate of 21.1%[110] - The company reported a return on invested capital (ROIC) of 21.2% for the twelve months ended September 30, 2025, compared to 19.7% for the same period in 2024[127] - The average operating working capital to net sales ratio was 18.6% as of September 30, 2025, compared to 19.1% a year earlier[122] - The Company’s forward-looking statements involve risks and uncertainties that may affect operating results, including economic conditions and market volatility[129] - There have been no material changes in the Company's exposure to market risk since December 31, 2024[132] Impairment and Charges - Rationalization and asset impairment net charges decreased significantly to $5,831 in Q3 2025 from $20,227 in Q3 2024, a reduction of 71.2%[94]