Lincoln Electric (NASDAQ: LECO) delivers record Q2 2026 growth in sales and earnings

Q: What were Lincoln Electric (LECO) net sales and EPS in Q2 2026?

Lincoln Electric reported Q2 2026 net sales of $1,220 million , a 12.0% increase year over year. Net income was $158.5 million , with diluted EPS of $2.88 and adjusted EPS of $2.93 , both higher than the prior-year period.

Q: How did Lincoln Electric (LECO) achieve its Q2 2026 sales growth?

Q2 2026 net sales grew 12.0% to $1,220 million. The Company cites 10.1% organic sales growth , a 1.5% benefit from acquisitions , and 0.4% favorable foreign exchange as the drivers of this increase across its operating segments.

Q: How strong were Lincoln Electric (LECO) cash flows and shareholder returns in Q2 2026?

In Q2 2026, Lincoln Electric produced $254 million of cash flows from operations with 138% cash conversion . The Company returned $120 million to shareholders during the quarter through a combination of cash dividends and share repurchases.

Q: How did Lincoln Electric (LECO) operating margins trend in Q2 2026?

Q2 2026 operating income was $220.6 million , an 18.1% operating margin , versus 17.6% a year earlier. Adjusted operating income was $224.1 million , representing an 18.4% margin , compared with 17.9% in the prior-year quarter.

Filing Impact

(Very High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Lincoln Electric Holdings, Inc. reported record second quarter 2026 results across sales, earnings and cash generation. Net sales increased 12.0% to $1,220 million, driven by 10.1% organic growth, a 1.5% benefit from acquisitions and 0.4% favorable foreign exchange. Net income was $158.5 million, or $2.88 diluted EPS, including $2.7 million of after-tax special charges; adjusted net income was $161.2 million, or $2.93 adjusted EPS. Operating income rose to $220.6 million with an 18.1% margin, or 18.4% on an adjusted basis.

For the first six months of 2026, sales increased 11.9% to $2,341.1 million. Net income was $294.9 million, or $5.34 EPS, and adjusted EPS was $5.43. Second quarter cash flows from operations were $254 million with 138% cash conversion, and the Company returned $120 million to shareholders through dividends and share repurchases.

Positive

Net sales up 12.0% to $1,220 million in Q2 2026, with 10.1% organic growth plus contributions from acquisitions and foreign exchange.
Diluted EPS increased to $2.88, adjusted EPS to $2.93, both above the prior year’s $2.56 and $2.60, reflecting higher profitability.
Strong cash generation with $254 million from operations and 138% cash conversion in Q2 2026, supporting $120 million returned to shareholders.
Adjusted return on invested capital of 23.0% for the twelve months ended June 30, 2026, above the reported 21.9% ROIC.

Negative

None.

Filing Explained

At June 30, 2026, cash was $242,443 thousand and total debt $1,150,054 thousand, versus $308,789 and $1,294,008 thousand at year-end.

This July 30, 2026 Form 8-K furnishes Lincoln Electric Holdings’ results for the quarter ended June 30, 2026. Its current state is a reported-results disclosure, and its structural update for existing common holders is an updated view of the company’s financial resources and debt obligations.

Form 8-K reports specified material events, while Item 2.02 identifies results of operations and financial condition; the attached release is expressly furnished rather than deemed filed under Section 18.

At June 30, 2026, cash and cash equivalents were $242,443 thousand, versus $308,789 thousand at December 31, 2025. Total debt was $1,150,054 thousand, versus $1,294,008 thousand at year-end.

For the six months ended June 30, 2026, operating activities provided $355,934 thousand, while financing activities used $355,588 thousand, including $143,889 thousand of short-term-borrowing repayments, $132,792 thousand of treasury-share purchases, and $87,466 thousand of dividends.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 Net sales: $1,220 million Q2 2026 Net income: $158.5 million Q2 2026 Diluted EPS: $2.88 +5 more

8 metrics

Q2 2026 Net sales $1,220 million Second quarter 2026 net sales; 12.0% increase year over year

Q2 2026 Net income $158.5 million Net income for the quarter ended June 30, 2026

Q2 2026 Diluted EPS $2.88 Diluted earnings per share in Q2 2026, up from $2.56 in 2025

Q2 2026 Adjusted EPS $2.93 Adjusted diluted EPS excluding special items for Q2 2026

Six-month 2026 Net sales $2,341.1 million Sales for the six months ended June 30, 2026; up 11.9%

Six-month 2026 Diluted EPS $5.34 Diluted EPS for the six months ended June 30, 2026

Q2 2026 Operating cash flow $254 million Cash flows from operations in second quarter 2026; 138% cash conversion

Adjusted ROIC 23.0% Adjusted return on invested capital for twelve months ended June 30, 2026

Key Terms

adjusted operating income, adjusted EBIT, Free cash flow, cash conversion, +2 more

6 terms

adjusted operating income financial

"Excluding special items, adjusted operating income was $224.1 million"

Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.

adjusted EBIT financial

"Adjusted EBIT (1) | $ | 223,899 | $ | 199,149"

Adjusted EBIT is a company’s operating profit before interest and taxes, but cleaned up by removing one-time or unusual items that can obscure ongoing performance. Investors use it like a tidied-up report card — it aims to show the underlying profitability of the business by excluding irregular gains, losses, or costs so comparisons across periods or companies are clearer and more meaningful for valuing operational strength.

Free cash flow financial

"Free cash flow (1) | $ | 222,327 | $ | 118,385"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

cash conversion financial

"Cash flows from operations of $254 million; 138% cash conversion"

Cash conversion describes how quickly and efficiently a business turns its sales or accounting profits into actual, usable cash on hand. Think of it like how fast a farmer can harvest crops and sell them for cash — faster conversion means the company can pay bills, invest, or reduce debt sooner, while slower conversion can signal tight liquidity and greater financial risk for investors.

return on invested capital financial

"Return on invested capital as reported | 21.9 % | 20.4 %"

A percentage that shows how effectively a company turns the money invested in its business—both borrowed funds and shareholders’ equity—into operating profit after taxes. It tells investors whether a company earns more from its core operations than it costs to fund those operations; think of it like the annual return you’d expect from renovating a rental property—higher percentages mean the company uses capital more efficiently and is more likely to create value for shareholders.

rationalization and asset impairment net charges financial

"Rationalization and asset impairment net charges | 3,481 | 2,542"

Rationalization and asset impairment net charges are one-time costs companies record when they streamline operations (job cuts, facility closures) and when assets like equipment or goodwill are written down because they’re worth less than on the books. Think of it as a business ‘cleaning out the attic’ and recognizing losses for items that no longer hold value; these charges lower reported profits, can change asset values on the balance sheet, and help investors judge whether future earnings will be weaker or simply reshaped by restructuring and write-downs.

Earnings Snapshot

Q2 2026 net sales: $1,220 million

Three and six months ended June 30, 2026

Q2 2026 net sales $1,220 million Increased by 12.0% from the prior-year quarter

Q2 2026 net income $158.5 million Up from $143.4 million in the prior-year quarter

Q2 2026 diluted EPS $2.88 Increased by $0.32, or 12.5%, from $2.56

Q2 2026 adjusted EPS $2.93 Increased from $2.60 in the prior-year quarter

Six-month 2026 sales $2,341.1 million Up 11.9% versus the six months ended June 30, 2025

Six-month 2026 diluted EPS $5.34 Rose from $4.66 in the prior-year six-month period

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Available on EDGAR 07/30/2026 - 09:22 AM Accepted by SEC EDGAR 07/30/2026 - 09:22 AM

FAQ

What were Lincoln Electric (LECO) net sales and EPS in Q2 2026?

Lincoln Electric reported Q2 2026 net sales of $1,220 million, a 12.0% increase year over year. Net income was $158.5 million, with diluted EPS of $2.88 and adjusted EPS of $2.93, both higher than the prior-year period.

How did Lincoln Electric (LECO) achieve its Q2 2026 sales growth?

Q2 2026 net sales grew 12.0% to $1,220 million. The Company cites 10.1% organic sales growth, a 1.5% benefit from acquisitions, and 0.4% favorable foreign exchange as the drivers of this increase across its operating segments.

What were Lincoln Electric (LECO) results for the first six months of 2026?

For the six months ended June 30, 2026, Lincoln Electric generated sales of $2,341.1 million, up 11.9% year over year. Net income was $294.9 million, or $5.34 EPS, while adjusted net income was $299.7 million, or $5.43 adjusted EPS.

How strong were Lincoln Electric (LECO) cash flows and shareholder returns in Q2 2026?

In Q2 2026, Lincoln Electric produced $254 million of cash flows from operations with 138% cash conversion. The Company returned $120 million to shareholders during the quarter through a combination of cash dividends and share repurchases.

What is Lincoln Electric (LECO) adjusted return on invested capital?

For the twelve months ended June 30, 2026, Lincoln Electric reported return on invested capital of 21.9%. On a non-GAAP basis, adjusted return on invested capital was 23.0%, reflecting the impact of excluding specified special items.

How did Lincoln Electric (LECO) operating margins trend in Q2 2026?

Q2 2026 operating income was $220.6 million, an 18.1% operating margin, versus 17.6% a year earlier. Adjusted operating income was $224.1 million, representing an 18.4% margin, compared with 17.9% in the prior-year quarter.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2026

LINCOLN ELECTRIC HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

0-1402

(Commission File Number)


Ohio		34-1860551
(State or other jurisdiction of incorporation)		(I.R.S. Employer Identification No.)

22801 St. Clair Avenue, Cleveland, Ohio 44117

(Address of principal executive offices, with zip code)

(216) 481-8100

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of exchange on which registered
Common Shares, without par value	LECO	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02	Results of Operations and Financial Condition.

	On July 30, 2026, Lincoln Electric Holdings, Inc. (the “Company”) issued a press release reporting its financial results for the quarter ended June 30, 2026. A copy of the Company’s press release issued on July 30, 2026 is attached hereto as Exhibit 99.1 and incorporated herein by reference. The press release is also available through the Company’s website at www.lincolnelectric.com. The information in this Current Report on Form 8-K, including the Exhibit, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01	Financial Statements and Exhibits.

		(d) Exhibits

		99.1 The Company’s press release dated July 30, 2026.
		104 Cover page Interactive Data File (formatted as Inline XBRL and contained in the Exhibit 101 attachments)

LINCOLN ELECTRIC HOLDINGS, INC.

INDEX TO EXHIBITS


Exhibit No.		Exhibit

99.1		The Company’s press release dated July 30, 2026.
104		Cover page Interactive Data File (formatted as Inline XBRL and contained in the Exhibit 101 attachments)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	LINCOLN ELECTRIC HOLDINGS, INC.

	/s/ Gabriel Bruno
	Gabriel Bruno
	Executive Vice President, Chief Financial Officer and Treasurer
	(Principal Financial and Accounting Officer)
	July 30, 2026

Exhibit 99.1

Investor Relations: Amanda Butler (216) 383-2534

Amanda_Butler@lincolnelectric.com

LINCOLN ELECTRIC REPORTS SECOND QUARTER 2026 RESULTS

Second Quarter 2026 Highlights

◾

Net sales increase 12.0% to a record $1,220 million; organic sales increase 10.1%

◾

Operating income margin of 18.1%; adjusted operating income margin of 18.4%

◾

EPS of $2.88; adjusted EPS of $2.93

◾

Cash flows from operations of $254 million; 138% cash conversion

◾

Returned $120 million to shareholders through dividends and share repurchases

CLEVELAND, Thursday, July 30, 2026 - Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported second quarter 2026 net income of $158.5 million, or diluted earnings per share (EPS) of $2.88, which includes special item after-tax net charges of $2.7 million, or $0.05 EPS. This compares with prior year period net income of $143.4 million, or $2.56 EPS, which included special item after-tax net charges of $2.2 million, or $0.04 EPS. Excluding special items, second quarter 2026 adjusted net income was $161.2 million, or $2.93 adjusted EPS. This compares with adjusted net income of $145.6 million, or $2.60 adjusted EPS, in the prior year period.

Second quarter 2026 sales increased 12.0% to $1,219.7 million reflecting a 10.1% increase in organic sales, a 1.5% benefit from acquisitions and a 0.4% favorable foreign exchange. Operating income for the second quarter 2026 was $220.6 million, or 18.1% of sales. This compares with operating income of $192.1 million, or 17.6% of sales, in the prior year period. Excluding special items, adjusted operating income was $224.1 million, or 18.4% of sales, as compared with $195.1 million, or 17.9% of sales, in the prior year period.

“We achieved record second quarter results across key metrics including sales, operating income profitability, earnings, and cash generation,” stated Steven B. Hedlund, Chairman and Chief Executive Officer. “We are encouraged by improved demand and capital spending in the Americas and Asia Pacific, and strong execution of our RISE Strategy initiatives positions us well to generate superior returns for our shareholders.”

Six Month 2026 Summary

Net income for the six months ended June 30, 2026 was $294.9 million, or $5.34 EPS, which includes special item after-tax net charges of $4.8 million, or $0.09 EPS. This compares with prior year period net income of $261.9 million, or $4.66 EPS, which included special item after-tax net charges of $5.6 million, or $0.10 EPS. Excluding special items, adjusted net income for the six months ended June 30, 2026 was $299.7 million, or $5.43 EPS. This compares with adjusted net income of $267.5 million, or $4.76 adjusted EPS, in the prior year period.

Sales increased 11.9% to $2,341.1 million in the six months ended June 30, 2026 primarily reflecting a 9.0% increase in organic sales, a 1.5% benefit from acquisitions, and 1.4% favorable foreign exchange. Operating income for the six months ended June 30, 2026 was $406.8 million, or 17.4% of sales. This compares with operating income of $357.1 million, or 17.1% of sales, in the prior year period. Excluding special items, adjusted operating income was $413.1 million, or 17.6% of sales, as compared with $364.6 million, or 17.4% of sales, in the prior year period.

Webcast Information

This earnings release and supplemental information is available under the Investor Relations section of our website. A call to discuss second quarter 2026 financial results will be webcast live today, July 30, 2026, at 10:00 a.m., Eastern Time. Participants can access the call in listen-only mode here and at https://ir.lincolnelectric.com. To participate via telephone, please dial (888) 440-4368 (domestic) or (646) 960-0856 (international) and use confirmation code 6709091. A replay of the earnings call will be available on the Company's website later today.

About Lincoln Electric

Lincoln Electric is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. Lincoln Electric’s innovative solutions enable higher quality and productivity across a variety of processes including welding, cutting, brazing, machining, process automation and field

LINCOLN ELECTRIC REPORTS SECOND QUARTER 2026 RESULTS

repair. The Company leverages proprietary technologies and expertise in materials science, power electronics, automation and intelligent software to help customers build better and achieve resilience in their operations. Headquartered in Cleveland, Ohio, Lincoln Electric is the essential ‘Linc’ that keeps the economy running. The Company operates 71 manufacturing and automation facilities across 20 countries and serves customers in over 160 countries. For more information about Lincoln Electric and its products and services, visit the Company’s website at https://www.lincolnelectric.com.

Non-GAAP Information

Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate, adjusted diluted earnings per share (“adjusted EPS”), Organic sales, Free cash flow, Cash conversion, adjusted net operating profit after taxes and adjusted return on invested capital (“adjusted ROIC”) are non-GAAP financial measures. Management uses non-GAAP measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of the Company's core business. Management believes that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against other companies in its industry more meaningfully. Furthermore, management believes that non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently.

Forward-Looking Statements

The Company’s expectations and beliefs concerning the future contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current expectations and involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “forecast,” “guidance” or words of similar meaning. Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company’s operating results. The factors include, but are not limited to: general economic, financial and market conditions; the effectiveness of commercial and operating initiatives; the effectiveness of information systems and cybersecurity programs; presence of artificial intelligence technologies; completion of planned divestitures; interest rates; disruptions, uncertainty or volatility in the credit markets that may limit our access to capital; currency exchange rates and devaluations; adverse outcome of pending or potential litigation; actual costs of the Company’s rationalization plans; the Company’s ability to complete acquisitions, including the Company’s ability to successfully integrate acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity; the effects of changes in tax law; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, geopolitical conflicts, political unrest, acts of terror, natural disasters and pandemics on the Company or its customers, suppliers and the economy in general. For additional discussion, see “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Consolidated Statements of Income


													Fav (Unfav) to
		Three Months Ended June 30,											Prior Year
		2026			% of Sales			2025			% of Sales		$			%
Net sales		$	1,219,663			100.0	%	$	1,088,673		100.0	%	$	130,990		12.0	%
Cost of goods sold			770,667			63.2	%		683,126		62.7	%		(87,541)		(12.8)	%
Gross profit			448,996			36.8	%		405,547		37.3	%		43,449		10.7	%
Selling, general & administrative expenses			224,871			18.4	%		210,861		19.4	%		(14,010)		(6.6)	%
Rationalization and asset impairment net charges			3,481			0.3	%		2,542		0.2	%		(939)		(36.9)	%
Operating income			220,644			18.1	%		192,144		17.6	%		28,500		14.8	%
Interest expense, net			12,521			1.0	%		12,619		1.2	%		98		0.8	%
Other (expense) income			(241)			—			4,034		0.4	%		(4,275)		(106.0)	%
Income before income taxes			207,882			17.0	%		183,559		16.9	%		24,323		13.3	%
Income taxes			49,363			4.0	%		40,163		3.7	%		(9,200)		(22.9)	%
Effective tax rate			23.7	%					21.9	%				(1.8)	%
Net income		$	158,519			13.0	%	$	143,396		13.2	%	$	15,123		10.5	%

Basic earnings per share		$	2.90					$	2.58				$	0.32		12.4	%
Diluted earnings per share		$	2.88					$	2.56				$	0.32		12.5	%
Weighted average shares (basic)			54,662						55,545
Weighted average shares (diluted)			55,102						55,968


													Fav (Unfav) to
		Six Months Ended June 30,											Prior Year
		2026			% of Sales			2025			% of Sales		$			%
Net sales		$	2,341,097			100.0	%	$	2,093,061		100.0	%	$	248,036		11.9	%
Cost of goods sold			1,492,969			63.8	%		1,322,066		63.2	%		(170,903)		(12.9)	%
Gross profit			848,128			36.2	%		770,995		36.8	%		77,133		10.0	%
Selling, general & administrative expenses			435,682			18.6	%		407,526		19.5	%		(28,156)		(6.9)	%
Rationalization and asset impairment net charges			5,644			0.2	%		6,407		0.3	%		763		11.9	%
Operating income			406,802			17.4	%		357,062		17.1	%		49,740		13.9	%
Interest expense, net			25,895			1.1	%		24,746		1.2	%		(1,149)		(4.6)	%
Other income			329			—			4,478		0.2	%		(4,149)		(92.7)	%
Income before income taxes			381,236			16.3	%		336,794		16.1	%		44,442		13.2	%
Income taxes			86,335			3.7	%		74,911		3.6	%		(11,424)		(15.3)	%
Effective tax rate			22.6	%					22.2	%				(0.4)	%
Net income		$	294,901			12.6	%	$	261,883		12.5	%	$	33,018		12.6	%

Basic earnings per share		$	5.39					$	4.69				$	0.70		14.9	%
Diluted earnings per share		$	5.34					$	4.66				$	0.68		14.6	%
Weighted average shares (basic)			54,742						55,801
Weighted average shares (diluted)			55,206						56,242

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands)

(Unaudited)

Balance Sheet Highlights


Selected Consolidated Balance Sheet Data		June 30, 2026			December 31, 2025
Cash and cash equivalents		$	242,443		$	308,789
Accounts receivable, net			586,348			538,791
Inventories			690,543			633,364
Total current assets			1,760,550			1,739,512
Property, plant and equipment, net			731,762			702,762
Total assets			3,813,310			3,777,577
Trade accounts payable			447,437			364,934
Total current liabilities ⁽¹⁾			888,083			956,691
Long-term debt, less current portion			1,150,054			1,150,228
Total equity			1,554,180			1,469,794

Operating Working Capital		June 30, 2026			December 31, 2025
Average operating working capital to Net sales ⁽²⁾			16.9	%		17.9	%

Invested Capital		June 30, 2026			December 31, 2025
Short-term debt ⁽¹⁾		$	—		$	143,780
Long-term debt, less current portion			1,150,054			1,150,228
Total debt			1,150,054			1,294,008
Total equity			1,554,180			1,469,794
Invested capital		$	2,704,234		$	2,763,802

Total debt / invested capital			42.5	%		46.8	%

(1)

Includes current portion of long-term debt.

(2)

Average operating working capital to Net sales is defined as the sum of Accounts receivable, Inventories and contract assets less Trade accounts payable and contract liabilities as of period end divided by annualized rolling three months of Net sales.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Non-GAAP Financial Measures


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Operating income as reported	$	220,644		$	192,144		$	406,802		$	357,062
Special items (pre-tax):
Rationalization and asset impairment net charges ⁽²⁾		3,481			2,542			5,644			6,407
Transaction costs ⁽³⁾		15			429			668			1,231
Amortization of step up in value of acquired inventories ⁽⁴⁾		—			—			—			(140)
Adjusted operating income⁽¹⁾	$	224,140		$	195,115		$	413,114		$	364,560
As a percent of net sales		18.4	%		17.9	%		17.6	%		17.4	%

Net income as reported	$	158,519		$	143,396		$	294,901		$	261,883
Special items:
Rationalization and asset impairment net charges ⁽²⁾		3,481			2,542			5,644			6,407
Transaction costs ⁽³⁾		15			429			668			1,231
Amortization of step up in value of acquired inventories ⁽⁴⁾		—			—			—			(140)
Tax effect of Special items ⁽⁵⁾		(795)			(755)			(1,535)			(1,913)
Adjusted net income⁽¹⁾		161,220			145,612			299,678			267,468
Interest expense, net		12,521			12,619			25,895			24,746
Income taxes as reported		49,363			40,163			86,335			74,911
Tax effect of Special items ⁽⁵⁾		795			755			1,535			1,913
Adjusted EBIT⁽¹⁾	$	223,899		$	199,149		$	413,443		$	369,038

Effective tax rate as reported		23.7	%		21.9	%		22.6	%		22.2	%
Net special item tax impact		—			—			0.1	%		0.1	%
Adjusted effective tax rate ⁽¹⁾		23.7	%		21.9	%		22.7	%		22.3	%

Diluted earnings per share as reported	$	2.88		$	2.56		$	5.34		$	4.66
Special items per share		0.05			0.04			0.09			0.10
Adjusted diluted earnings per share ⁽¹⁾	$	2.93		$	2.60		$	5.43		$	4.76

Weighted average shares (diluted)		55,102			55,968			55,206			56,242

(1)

Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and adjusted diluted EPS are non-GAAP financial measures. Refer to Non-GAAP Information section.

(2)

2026 and 2025 net charges primarily relate to rationalization plans within Americas Welding and International Welding.

(3) Transaction costs primarily relate to acquisitions and are included in Selling, general & administrative expenses.

(4)

Costs relate to acquisitions and are included in Cost of goods sold.

(5)

Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate. The applicable tax rates reflect the taxable jurisdiction and nature of each Special item.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Non-GAAP Financial Measures


	Twelve Months Ended June 30,
Return on Invested Capital	2026			2025
Net income as reported	$	553,551		$	502,868
Plus: Interest expense (after-tax)		44,075			42,688
Less: Interest income (after-tax)		4,564			6,636
Net operating profit after taxes	$	593,062		$	538,920
Special Items:
Rationalization and asset impairment net charges		17,436			31,172
Transaction costs		2,176			4,332
Pension settlement net charges		719			3,792
Amortization of step up in value of acquired inventories		4,104			4,771
Tax effect of Special items ⁽²⁾		5,555			(11,118)
Adjusted net operating profit after taxes ⁽¹⁾	$	623,052		$	571,869

Invested Capital	June 30, 2026			June 30, 2025
Short-term debt	$	—		$	105,323
Long-term debt, less current portion		1,150,054			1,150,395
Total debt		1,150,054			1,255,718
Total equity		1,554,180			1,379,613
Invested capital	$	2,704,234		$	2,635,331

Return on invested capital as reported		21.9	%		20.4	%
Adjusted return on invested capital ⁽¹⁾		23.0	%		21.7	%

(1)

Adjusted net operating profit after taxes and adjusted ROIC are non-GAAP financial measures. Refer to Non-GAAP Information section.

(2)


	Three Months Ended June 30,						Six Months Ended June 30,
Cash Conversion	2026			2025			2026			2025
Net cash provided by operating activities	$	253,764		$	143,828		$	355,934		$	329,521
Capital expenditures		(31,437)			(25,443)			(70,600)			(52,392)
Free cash flow ⁽¹⁾	$	222,327		$	118,385		$	285,334		$	277,129

Adjusted net income	$	161,220		$	145,612		$	299,678		$	267,468

Cash conversion ⁽¹⁾		138	%		81	%		95	%		104	%

(1)

Free cash flow and cash conversion are non-GAAP financial measures. Refer to Non-GAAP Information section.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Condensed Consolidated Statements of Cash Flows


	Three Months Ended June 30,
	2026		2025
OPERATING ACTIVITIES:
Net income	$	158,519	$	143,396
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization		25,969		24,462
Deferred income taxes		(4,041)		(20,504)
Other non-cash items, net		4,655		3,464
Changes in operating assets and liabilities, net of effects from acquisitions:
Decrease (increase) in accounts receivable		11,603		(18,100)
Decrease (increase) in inventories		1,723		(27,481)
Decrease (increase) in other current assets		31,620		(5,465)
(Decrease) increase in trade accounts payable		(568)		3,208
Increase in other current liabilities		31,850		47,373
Net change in other long-term assets and liabilities		(7,566)		(6,525)
NET CASH PROVIDED BY OPERATING ACTIVITIES		253,764		143,828

INVESTING ACTIVITIES:
Capital expenditures		(31,437)		(25,443)
Acquisition of businesses, net of cash acquired		—		(32,309)
Proceeds from sale of property, plant and equipment		948		585
NET CASH USED BY INVESTING ACTIVITIES		(30,489)		(57,167)

FINANCING ACTIVITIES:
Payments on short-term borrowings, net		(163,502)		(4,302)
Proceeds from exercise of stock options		—		140
Purchase of shares for treasury		(76,122)		(127,130)
Cash dividends paid to shareholders		(43,395)		(41,929)
NET CASH USED BY FINANCING ACTIVITIES		(283,019)		(173,221)

Effect of exchange rate changes on Cash and cash equivalents		3,284		(8,664)
DECREASE IN CASH AND CASH EQUIVALENTS		(56,460)		(95,224)
Cash and cash equivalents at beginning of period		298,903		394,705
Cash and cash equivalents at end of period	$	242,443	$	299,481

Cash dividends paid per share	$	0.79	$	0.75

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Condensed Consolidated Statements of Cash Flows


		Six Months Ended June 30,
		2026		2025
OPERATING ACTIVITIES:
Net income		$	294,901	$	261,883
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization			51,978		48,246
Deferred income taxes			18,492		(26,342)
Other non-cash items, net			12,719		12,098
Changes in operating assets and liabilities, net of effects from acquisitions:
Increase in accounts receivable			(48,609)		(52,208)
Increase in inventories			(60,153)		(47,648)
Decrease (increase) in other current assets			18,149		(3,408)
Increase in trade accounts payable			83,216		68,092
(Decrease) increase in other current liabilities			(11,288)		68,579
Net change in other assets and liabilities			(3,471)		229
NET CASH PROVIDED BY OPERATING ACTIVITIES			355,934		329,521

INVESTING ACTIVITIES:
Capital expenditures			(70,600)		(52,392)
Acquisition of businesses, net of cash acquired			140		(32,309)
Proceeds from sale of property, plant and equipment			1,256		5,231
NET CASH USED BY INVESTING ACTIVITIES			(69,204)		(79,470)

FINANCING ACTIVITIES:
Payments on short-term borrowings, net			(143,889)		(5,206)
Payments on long-term borrowings			—		(169)
Proceeds from exercise of stock options			8,559		6,394
Purchase of shares for treasury			(132,792)		(233,824)
Cash dividends paid to shareholders			(87,466)		(84,904)
NET CASH USED BY FINANCING ACTIVITIES			(355,588)		(317,709)

Effect of exchange rate changes on Cash and cash equivalents			2,512		(10,123)
DECREASE IN CASH AND CASH EQUIVALENTS			(66,346)		(77,781)
Cash and cash equivalents at beginning of period			308,789		377,262
Cash and cash equivalents at end of period		$	242,443	$	299,481

Cash dividends paid per share		$	1.58	$	1.50

Lincoln Electric Holdings, Inc.

Segment Highlights

(In thousands)

(Unaudited)


		Americas			International			The Harris			Corporate /
		Welding			Welding			Products Group			Eliminations			Consolidated
Three months ended June 30, 2026
Net sales		$	774,438		$	243,292		$	201,933		$	—		$	1,219,663
Inter-segment sales			28,904			7,564			4,972			(41,440)			—
Total sales		$	803,342		$	250,856		$	206,905		$	(41,440)		$	1,219,663

Net income														$	158,519
As a percent of total sales															13.0	%

EBIT⁽¹⁾		$	157,083		$	24,313		$	42,066		$	(3,059)		$	220,403
As a percent of total sales			19.6	%		9.7	%		20.3	%					18.1	%
Special items charges ⁽³⁾			1,012			2,282			187			15			3,496
Adjusted EBIT ⁽²⁾		$	158,095		$	26,595		$	42,253		$	(3,044)		$	223,899
As a percent of total sales			19.7	%		10.6	%		20.4	%					18.4	%

Three months ended June 30, 2025
Net sales		$	696,730		$	232,824		$	159,119		$	—		$	1,088,673
Inter-segment sales			43,391			7,641			5,110			(56,142)			—
Total sales		$	740,121		$	240,465		$	164,229		$	(56,142)		$	1,088,673

Net income														$	143,396
As a percent of total sales															13.2	%

EBIT ⁽¹⁾		$	137,010		$	28,999		$	31,798		$	(1,629)		$	196,178
As a percent of total sales			18.5	%		12.1	%		19.4	%					18.0	%
Special items charges ⁽⁴⁾			905			1,551			86			429			2,971
Adjusted EBIT ⁽²⁾		$	137,915		$	30,550		$	31,884		$	(1,200)		$	199,149
As a percent of total sales			18.6	%		12.7	%		19.4	%					18.3	%

(1)

EBIT is defined as Operating income plus Other income.

(2)

The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT.

(3)

Special items in 2026 primarily reflect Rationalization and asset impairments net charges of $1,012 in Americas Welding, $2,282 in International Welding and $187 in The Harris Products Group.

(4)

Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $905 in Americas Welding, $1,551 in International Welding and $86 in The Harris Products Group, as well as transaction costs of $429 in Corporate/Eliminations.

Lincoln Electric Holdings, Inc.

Segment Highlights

(In thousands)

(Unaudited)


		Americas			International			The Harris			Corporate /
		Welding			Welding			Products Group			Eliminations			Consolidated
Six months ended June 30, 2026
Net sales		$	1,480,663		$	470,327		$	390,107		$	—		$	2,341,097
Inter-segment sales			65,613			13,371			9,636			(88,620)			—
Total sales		$	1,546,276		$	483,698		$	399,743		$	(88,620)		$	2,341,097

Net income														$	294,901
As a percent of total sales															12.6	%

EBIT ⁽¹⁾		$	283,978		$	45,203		$	83,057		$	(5,107)		$	407,131
As a percent of total sales			18.4	%		9.3	%		20.8	%					17.4	%
Special items charges ⁽³⁾			1,585			4,054			5			668			6,312
Adjusted EBIT ⁽²⁾		$	285,563		$	49,257		$	83,062		$	(4,439)		$	413,443
As a percent of total sales			18.5	%		10.2	%		20.8	%					17.7	%

Six months ended June 30, 2025
Net sales		$	1,349,837		$	451,885		$	291,339		$	—		$	2,093,061
Inter-segment sales			73,763			14,473			9,094			(97,330)			—
Total sales		$	1,423,600		$	466,358		$	300,433		$	(97,330)		$	2,093,061

Net income														$	261,883
As a percent of total sales															12.5	%

EBIT ⁽¹⁾		$	259,073		$	50,599		$	55,949		$	(4,081)		$	361,540
As a percent of total sales			18.2	%		10.8	%		18.6	%					17.3	%
Special items charges ⁽⁴⁾			3,040			2,963			264			1,231			7,498
Adjusted EBIT ⁽²⁾		$	262,113		$	53,562		$	56,213		$	(2,850)		$	369,038
As a percent of total sales			18.4	%		11.5	%		18.7	%					17.6	%

(1)

EBIT is defined as Operating income plus Other income.

(2)

The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT.

(3)

Special items in 2026 primarily reflect Rationalization and asset impairments net charges of $1,585 in Americas Welding, $4,054 in International Welding and $5 in The Harris Products Group. In addition, there were transaction costs of $668 in Corporate/Eliminations.

(4)

Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $3,040 in Americas Welding, $3,103 in International Welding and $264 in The Harris Products Group, as well as transaction costs of $1,231 in Corporate/Eliminations.

Lincoln Electric Holdings, Inc.

Change in Net Sales by Segment

(In thousands)

(Unaudited)

Three Months Ended June 30^th Change in Net Sales by Segment


			Change in Net Sales due to:
	Net Sales											Foreign			Net Sales
	2025		Volume			Price			Acquisitions			Exchange			2026
Operating Segments
Americas Welding	$	696,730	$	49,704		$	25,681		$	—		$	2,323		$	774,438
International Welding		232,824		(10,931)			3,776			16,193			1,430			243,292
The Harris Products Group		159,119		(12,983)			54,454			—			1,343			201,933
Consolidated	$	1,088,673	$	25,790		$	83,911		$	16,193		$	5,096		$	1,219,663

% Change
Americas Welding				7.1	%		3.7	%		—			0.4	%		11.2	%
International Welding				(4.7)	%		1.6	%		7.0	%		0.6	%		4.5	%
The Harris Products Group				(8.2)	%		34.2	%		—			0.9	%		26.9	%
Consolidated				2.4	%		7.7	%		1.5	%		0.4	%		12.0	%

Six Months Ended June 30^th Change in Net Sales by Segment


				Change in Net Sales due to:
		Net Sales											Foreign			Net Sales
		2025		Volume			Price			Acquisitions			Exchange			2026
Operating Segments
Americas Welding		$	1,349,837	$	47,069		$	75,160		$	—		$	8,597		$	1,480,663
International Welding			451,885		(32,562)			4,073			31,987			14,944			470,327
The Harris Products Group			291,339		(14,358)			109,236			—			3,890			390,107
Consolidated		$	2,093,061	$	149		$	188,469		$	31,987		$	27,431		$	2,341,097

% Change
Americas Welding					3.5	%		5.6	%		—			0.6	%		9.7	%
International Welding					(7.2)	%		0.9	%		7.1	%		3.3	%		4.1	%
The Harris Products Group					(4.9)	%		37.5	%		—			1.3	%		33.9	%
Consolidated					—			9.0	%		1.5	%		1.4	%		11.9	%

Source: View Original Filing on SEC EDGAR

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