Financial Data and Key Metrics Changes - The company reported record performance for 2025, with sales increasing by 6% to a record $4.2 billion, driven by acquisitions and price increases [5] - Adjusted EPS rose to a record $9.87, and the company maintained last year's record adjusted operating income margin [5] - The effective tax rate increased to 21.2%, reflecting a special item tax expense [13] Business Line Data and Key Metrics Changes - Americas Welding sales increased by approximately 4%, driven by a 10.4% price increase, while volumes declined by approximately 7% [14] - International Welding segment sales increased by approximately 7%, with a 5% benefit from an acquisition and a 5% favorable foreign exchange translation, but volumes decreased by 4% [16] - Harris Products Group sales increased by 11%, driven by an 18% price increase, while volumes compressed by 9% [18] Market Data and Key Metrics Changes - Three of the five end markets grew, with notable acceleration in December, particularly in Americas Welding [8] - The Energy sector outperformed due to strong project activity in both Americas and Asia Pacific [9] - The Automotive and Heavy Industries sectors faced challenges, with transportation growth driven by consumable demand for vehicle production [10] Company Strategy and Development Direction - The company is transitioning to a new strategy named RISE, focusing on efficiency, agility, and innovation to drive growth [25][30] - The 2030 financial targets include maintaining a high single-digit to low double-digit sales growth rate, with a focus on organic sales and acquisitions [28][39] - The company aims to achieve a peak consolidated operating income margin of over 20% and an average operating income margin of 19% across the cycle [35] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about an early-stage industrial recovery, supported by OEM commentary on capital spending plans [19] - The company expects volume growth rates to improve starting in the second quarter of 2026, with a balanced approach to pricing and volume [20] - Management highlighted the importance of maintaining a neutral price-cost posture while targeting incremental operating income margin improvements [21] Other Important Information - The company generated strong cash flows from operations, with an adjusted return on invested capital of 21.3% [18] - A balanced capital allocation strategy was emphasized, with approximately 48% invested in growth and 52% returned to shareholders [38] Q&A Session Summary Question: Long-term dynamics regarding incremental margins - Management indicated that improvements in incremental margins will be driven by volume growth and enterprise initiatives, with benefits expected to flow steadily over the five-year period [42][45] Question: Expectations for organic growth and order trends - Management expects mid-single-digit organic growth, split 50/50 between price and volume, with confidence in order levels and backlog, particularly in automation [47][49] Question: Automation business expectations for 2026 - The automation business is expected to recover with a mid-single-digit growth trajectory based on order levels and backlog, with a focus on achieving a non-dilutive margin profile [58][74] Question: Impact of metal inflation on pricing - Management confirmed that pricing actions will be taken as market conditions require, with a mechanical adder in pricing methodology to address metal cost inflation [66][68] Question: Margin expansion in international markets - Management emphasized focusing on regions with favorable macroeconomic conditions for growth, with cautious expectations for core Europe [89]

Financial Data and Key Metrics Changes - The company reported record sales of $4.2 billion for 2025, a 6% increase from the previous year, driven by acquisitions and price increases [4] - Adjusted EPS rose to a record $9.87, with strong cash flows from operations leading to record cash returns to shareholders [4] - The adjusted operating income margin remained consistent with the previous year, and the company achieved top-quartile ROIC and total shareholder return performance compared to peers [4] Business Line Data and Key Metrics Changes - Americas Welding sales increased approximately 4%, driven by a 10.4% price increase, while volumes declined about 7% due to challenges in the automation portfolio [13] - International Welding segment sales rose approximately 7%, aided by a 5% benefit from an acquisition and favorable foreign exchange, despite a 4% decline in volumes [14] - Harris Products Group saw an 11% increase in sales, primarily due to an 18% rise in prices, although volumes compressed by 9% [15] Market Data and Key Metrics Changes - Three of the five end markets experienced growth, particularly in energy and general industries, while automotive and heavy industries faced challenges [6][8] - The company noted a return to more normalized customer production activity and an acceleration in capital spending plans for 2026, indicating potential early stages of an industrial recovery [7] Company Strategy and Development Direction - The company is transitioning to a new strategy named RISE, focusing on efficiency, agility, and innovation to drive growth and value for stakeholders [24][27] - The 2030 targets include maintaining a high single-digit to low double-digit sales growth rate, with a focus on organic sales and strategic acquisitions [27][37] - The company aims to achieve a peak operating income margin of over 20% and expects to generate over $3.7 billion in cash flows from operations by 2030 [35][37] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the industrial sector recovery, driven by increased capital spending and improved customer confidence [17] - The company anticipates mid-single-digit sales growth for 2026, with expectations for volume growth to improve starting in the second quarter [18] - Management highlighted the importance of maintaining a neutral price-cost posture while targeting incremental operating income margins in the mid-20% range [19] Other Important Information - The company generated solid cash flows from operations, with a focus on disciplined capital allocation strategies, including investments in growth and returning capital to shareholders [35][36] - The effective tax rate for the quarter was reported at 21.2%, reflecting a special item tax expense related to recent legislative changes [12] Q&A Session Summary Question: Long-term dynamics regarding incremental margins - Management indicated that improvements in incremental margins will be driven by volume growth and enterprise initiatives, with benefits expected to flow steadily over the five-year period [40][42] Question: Expectations for organic growth and order trends - Management clarified that the mid-single-digit growth expectation is split 50/50 between price and volume, with confidence in order levels and backlog, particularly in automation [45][46] Question: Automation business expectations for 2026 - The automation business is expected to recover with a mid-single-digit growth trajectory based on order levels and backlog, with a focus on returning to non-dilutive margins [56][57] Question: Center-led functions and operational structure - Management explained that the shift to center-led functions aims to standardize processes while retaining local agility, enhancing efficiency across the organization [58][60] Question: Impact of metal inflation on pricing and margins - Management confirmed that pricing actions will be responsive to market conditions, with a mechanical pricing methodology in place to address metal cost inflation [62][66]

LINCOLN ELECTRIC HOLDINGS, INC. Lincoln Electric Holdings, Inc. Q4 & FullYear 2025 Earnings & 2030 Targets Q4 & FY2025 Earnings & 2030 Targets February 12, 2026 February 12, 2026 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 ...

Financial Performance Highlights - Net sales reached $1061.2 million, an increase of 7.9% year-over-year[8, 16] - Organic sales grew by 6%[8] - Adjusted EPS increased by 15% to $2.47[9, 16] - Cash flow from operations increased by 19% to $237 million, with a 149% cash conversion rate[8] - Returns to shareholders totaled $94 million, including $42 million in dividends and $53 million in share repurchases[11] Margin and Profitability - Adjusted operating income margin increased slightly by 10 bps to 17.4%[8, 16] - Adjusted ROIC performance increased by 80 bps to 22.2%[8] - Gross profit margin increased by 90 bps to 36.7%[16] Segment Performance - Americas Welding segment net sales increased by 8.6% year-over-year to $691.8 million[18] - International Welding segment net sales increased by 1.6% year-over-year to $219.6 million, with adjusted EBIT margin increasing by 230 bps to 11.3%[21] - The Harris Products Group net sales increased by 14.8% year-over-year to $149.8 million, with adjusted EBIT margin increasing by 190 bps to 18.3%[24] Sales Mix and End Sector Performance - Overall sales growth was driven by price increases of 7.8%, partially offset by a volume decrease of 2.2%[17] - Consumables sales increased by low-teens percent, while equipment sales increased by mid-single-digit percent[14] - Automation sales decreased by low double-digit percent[14] Full Year 2025 Assumptions - The company anticipates low-single-digit organic sales growth[37] - Expects a neutral price/cost environment[37] - Projects adjusted operating income margin to be steady to up slightly[37]

Financial Performance - Q1 2013 - Net sales decreased by 1.2%, from $727.1 million in Q1 2012 to $718.6 million in Q1 2013[6] - Operating income decreased by 3.3%, from $91.7 million in Q1 2012 to $88.6 million in Q1 2013[6] - Adjusted operating income increased by 8.4%, from $91.7 million in Q1 2012 to $99.3 million in Q1 2013[6] - Net income increased by 4.0%, from $64.2 million in Q1 2012 to $66.8 million in Q1 2013[6] - Adjusted net income increased significantly by 20.1%, from $64.2 million in Q1 2012 to $77.1 million in Q1 2013[6] - Diluted EPS increased by 5.3%, from $0.76 in Q1 2012 to $0.80 in Q1 2013[6] - Adjusted diluted EPS increased by 21.1%, from $0.76 in Q1 2012 to $0.92 in Q1 2013[6] Segment Performance - North America welding segment net sales increased by 10.0%, from $381.3 million to $419.6 million, with an adjusted EBIT margin of 17.1%[16] - Europe welding segment net sales decreased by 12.2%, from $125.8 million to $110.5 million, with an adjusted EBIT margin of 9.3%[18] - Asia Pacific welding segment net sales decreased significantly by 24.3%, from $92.6 million to $70.0 million, but the adjusted EBIT margin increased to 3.1%[20] - The Harris Products Group net sales decreased by 6.3%, from $87.6 million to $82.1 million, but the adjusted EBIT margin improved to 8.5%[25] Capital Allocation - The company contributed $50 million to the U.S pension plan[29] - Share repurchases amounted to $12.8 million[30]