Lincoln Electric Holdings (LECO) Presents at Industrials Select Conference - Slideshow

Financial Performance and Targets - Lincoln Electric aims for a high teens to low 20% adjusted EPS CAGR (Compound Annual Growth Rate) from 2020 to 2025[7] - The company targets an average adjusted operating income margin of 16% (+/- 150 bps) as part of its Higher Standard 2025 Strategy[39] - Lincoln Electric targets an average ROIC (Return on Invested Capital) of 18% to 20%, aiming for top quartile performance[7, 39] - The company is targeting 15% average operating working capital as part of the 2025 strategy[7, 43] Growth Strategy and Market Position - Lincoln Electric is the 1 leader in the growing arc welding & cutting industry[7] - The company's automation sales run rate is $850 million, growing at a high single-digit to low double-digit organic sales rate with a low double-digit operating income margin[52] - Approximately 57% of 2022 equipment sales came from new products, reflecting a focus on innovation[43, 74] - Lincoln Electric estimates that 10% to 15% of its revenue serves infrastructure, EV (Electric Vehicle), and renewable energy applications[14, 51] Capital Allocation and Cash Flow - Lincoln Electric targets 100+% cash conversion[7, 43] - The company has a consecutive 27-year dividend increase history with a 13% CAGR (2018-2022)[7] Sustainability and ESG - Lincoln Electric is targeting a 52% reduction in safety incidents by 2025 compared to 2018, with a 25% reduction achieved by 2022[84]