Lincoln Electric (NASDAQ: LECO) posts strong Q1 2026 sales and EPS growth

Rhea-AI Filing Summary

Lincoln Electric Holdings reported strong first quarter 2026 results. Net sales reached $1.12 billion, up 11.7%, driven by 7.8% organic growth, acquisition benefits and favorable currency. Operating income was $186.2 million, a 16.6% margin, with adjusted operating margin steady at 16.9%.

Net income rose to $136.4 million from $118.5 million, and diluted EPS increased to $2.47 from $2.10. Adjusted net income was $138.5 million and adjusted EPS $2.50, up from $2.16. The company returned $101 million to shareholders through dividends and share repurchases.

Total assets grew to $3.90 billion and return on invested capital was 20.5%, with adjusted ROIC at 21.5%. Free cash flow was $63.0 million versus $158.7 million a year earlier, and cash conversion declined to 46% from 130%, reflecting higher working capital needs.

Positive

• Strong revenue and earnings growth: Net sales rose 11.7% to $1.12 billion, net income grew 15.1% to $136.4 million, and diluted EPS increased from $2.10 to $2.47, with adjusted EPS up from $2.16 to $2.50.
• High profitability and capital returns: Adjusted operating margin held at 16.9%, adjusted ROIC reached 21.5%, and the company returned $101 million to shareholders via dividends and share repurchases in the quarter.

Negative

• Softer cash generation and higher working capital: Free cash flow declined to $63.0 million from $158.7 million, cash conversion dropped to 46% from 130%, and accounts receivable and inventories increased compared with the prior year period.

Insights

Equity analyst

Q1 2026 shows solid growth in sales and earnings, with softer cash flow.

Lincoln Electric delivered double-digit top-line growth, with net sales rising 11.7% to $1.12 billion and organic sales up 7.8%. Net income increased to $136.4 million and diluted EPS to $2.47, while adjusted EPS reached $2.50, indicating broad-based profit growth.

Profitability remained strong: operating margin was 16.6% and adjusted operating margin held at 16.9%. Return on invested capital of 20.5% and adjusted ROIC of 21.5% underscore efficient capital use, and the company returned $101 million via dividends and buybacks in the quarter.

Cash metrics were weaker, with free cash flow of $63.0 million versus $158.7 million a year earlier and cash conversion falling to 46% from 130%, as inventories and receivables increased. Future disclosures in company filings may clarify whether this working capital build is temporary or part of a longer trend.

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, or exhibit attachments filed with this report.

Key Figures

Net sales: $1,121.4 million Net income: $136.4 million Diluted EPS: $2.47 per share +5 more

8 metrics

Net sales $1,121.4 million Three months ended March 31, 2026; up 11.7% year over year

Net income $136.4 million Q1 2026 vs $118.5 million in Q1 2025; up 15.1%

Diluted EPS $2.47 per share Q1 2026 diluted EPS vs $2.10 in Q1 2025; up 17.6%

Adjusted EPS $2.50 per share Q1 2026 adjusted diluted EPS vs $2.16 in Q1 2025

Free cash flow $63.0 million Q1 2026 free cash flow vs $158.7 million in prior-year quarter

Cash conversion 46% Three months ended March 31, 2026; down from 130% in 2025

Adjusted ROIC 21.5% Twelve months ended March 31, 2026; unchanged from prior year

Total debt / invested capital 46.5% As of March 31, 2026

Key Terms

Adjusted EBIT, Free cash flow, cash conversion, return on invested capital, +1 more

5 terms

Adjusted EBIT financial

"Adjusted EBIT (1) | ​ | $ | 189,544 | ​ | $ | 169,889"

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) | $ | 63,007 | ​ | $ | 158,744"

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 conversion (1) | ​ | 46 | % | ​ | 130 | %"

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 | ​ | 20.5 | %"

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.

non-GAAP financial measures financial

"Adjusted operating income, adjusted net income, adjusted EBIT ... are non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

Earnings Snapshot

Net sales: $1,121.4 million

Q1 2026

Net sales $1,121.4 million +11.7% YoY

Net income $136.4 million +15.1% YoY

Diluted EPS $2.47 +17.6% YoY

Adjusted diluted EPS $2.50 from $2.16 prior year

Operating margin 16.6% from 16.4% prior year

Adjusted operating margin 16.9% unchanged vs prior year

FAQ

How did Lincoln Electric (LECO) perform financially in Q1 2026?

Lincoln Electric reported net sales of $1.12 billion, up 11.7% year over year. Net income rose to $136.4 million from $118.5 million, and diluted EPS increased to $2.47 from $2.10, reflecting solid revenue growth and stable margins.

What were Lincoln Electric’s adjusted earnings and margins in Q1 2026?

Adjusted net income was $138.5 million and adjusted EPS was $2.50, up from $2.16 a year earlier. Adjusted operating income reached $189.0 million, representing an adjusted operating margin of 16.9%, unchanged from the prior-year quarter.

How much cash did Lincoln Electric return to shareholders in Q1 2026?

Lincoln Electric returned $101 million to shareholders through dividends and share repurchases. This included cash dividends paid per share of $0.79 and significant treasury share purchases, highlighting continued emphasis on capital return.

What was Lincoln Electric’s cash flow and cash conversion in Q1 2026?

Net cash provided by operating activities was $102.2 million, and free cash flow totaled $63.0 million, down from $158.7 million last year. Cash conversion declined to 46% from 130%, influenced by higher accounts receivable and inventory levels.

What is Lincoln Electric’s return on invested capital as of March 31, 2026?

Return on invested capital was 20.5% for the twelve months ended March 31, 2026. Adjusted return on invested capital was 21.5%, matching the prior-year adjusted level, indicating sustained efficiency in generating profits from its capital base.

How did Lincoln Electric’s segment sales change in Q1 2026?

Americas Welding net sales grew to $706.2 million, International Welding to $227.0 million, and The Harris Products Group to $188.2 million. Consolidated sales increased 11.7%, driven by higher pricing, acquisitions, and favorable foreign exchange.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Understanding 8-K Material Events →

Accepted by SEC EDGAR 04/30/2026 - 09:16 AM Learn about SEC filing dates

0000059527false00000595272026-04-302026-04-30

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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): April 30, 2026

LINCOLN ELECTRIC HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

0-1402

(Commission File Number)

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

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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):

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☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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

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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. ☐

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Item 2.02	Results of Operations and Financial Condition.
​	​
​	On April 30, 2026, Lincoln Electric Holdings, Inc. (the “Company”) issued a press release reporting its financial results for the quarter ended March 31,2026.  A copy of the Company’s press release issued on April 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.
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Item 9.01	Financial Statements and Exhibits.
​	​
​	​	(d) Exhibits
​	​	​
​	​	99.1 The Company’s press release dated April 30, 2026.
​	​	104 Cover page Interactive Data File (formatted as Inline XBRL and contained in the Exhibit 101 attachments)

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LINCOLN ELECTRIC HOLDINGS, INC.

INDEX TO EXHIBITS

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Exhibit No.	​ ​	Exhibit
​	​	​
99.1	​	The Company’s press release dated April 30, 2026.
104	​	Cover page Interactive Data File (formatted as Inline XBRL and contained in the Exhibit 101 attachments)

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SIGNATURES

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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.

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​	​
​	LINCOLN ELECTRIC HOLDINGS, INC.
​	​
​	/s/ Gabriel Bruno
​	Gabriel Bruno
​	Executive Vice President, Chief Financial Officer and Treasurer
​	(Principal Financial and Accounting Officer)
​	April 30, 2026

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Exhibit 99.1

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Investor Relations: Amanda Butler (216) 383-2534

Amanda_Butler@lincolnelectric.com

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LINCOLN ELECTRIC REPORTS FIRST QUARTER 2026 RESULTS

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First Quarter 2026 Highlights

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◾

Net sales increase 11.7% to $1,121 million; organic sales increase 7.8%

◾

Operating income margin of 16.6%; Adjusted operating income margin of 16.9%

◾

EPS of $2.47; Adjusted EPS of $2.50

◾

Returned $101 million to shareholders through dividends and share repurchases

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CLEVELAND, Thursday, April 30, 2026 - Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported first quarter 2026 net income of $136.4 million, or diluted earnings per share (EPS) of $2.47, which includes special item after-tax net charges of $2.1 million, or $0.03 EPS. This compares with prior year period net income of $118.5 million, or $2.10 EPS, which included special item after-tax net charges of $3.4 million, or $0.06 EPS. Excluding special items, first quarter 2026 adjusted net income was $138.5 million, or $2.50 adjusted EPS. This compares with adjusted net income of $121.9 million, or $2.16 adjusted EPS, in the prior year period.

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First quarter 2026 sales increased 11.7% to $1,121.4 million reflecting a 7.8% increase in organic sales, a 1.6% benefit from acquisitions and a 2.3% favorable foreign exchange. Operating income for the first quarter 2026 was $186.2 million, or 16.6% of sales. This compares with operating income of $164.9 million, or 16.4% of sales, in the prior year period. Excluding special items, adjusted operating income was $189.0 million, or 16.9% of sales, as compared with $169.4 million, or 16.9% of sales, in the prior year period.

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“We achieved solid first quarter performance driven by disciplined cost management and improving industrial activity in the Americas,” said Steven B. Hedlund, Chairman and Chief Executive Officer. “Our team remains agile as we navigate evolving operating conditions and advance our new long-term RISE strategy. We are well positioned to capitalize on growth opportunities, increase profitability and compound earnings from our strategic initiatives and our capital allocation strategy,” Hedlund concluded.

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Webcast Information

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This earnings release and supplemental information is available under the Investor Relations section of our website. A call to discuss first quarter 2026 financial results will be webcast live today, April 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.

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About Lincoln Electric

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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 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.

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Non-GAAP Information

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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

LINCOLN ELECTRIC REPORTS FIRST QUARTER 2026 RESULTS

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.

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Forward-Looking Statements

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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.

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Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Consolidated Statements of Income

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​	​	​	​	​	​	​	​	​	​	​ ​ ​	Fav (Unfav) to
​	​	Three Months Ended March 31,										​	Prior Year
​		2026		​	% of Sales		​ ​ ​	2025		​	% of Sales	​ ​ ​	$		​	%
Net sales	​	$	1,121,434		​	100.0	%	$	1,004,388		100.0	%	$	117,046	​	11.7	%
Cost of goods sold	​		722,302		​	64.4	%	​	638,940		63.6	%		(83,362)	​	(13.0)	%
Gross profit	​		399,132		​	35.6	%	​	365,448		36.4	%		33,684	​	9.2	%
Selling, general & administrative expenses	​		210,811		​	18.8	%	​	196,665		19.6	%		(14,146)	​	(7.2)	%
Rationalization and asset impairment net charges	​		2,163		​	0.2	%	​	3,865		0.4	%		1,702	​	44.0	%
Operating income	​		186,158		​	16.6	%	​	164,918		16.4	%		21,240	​	12.9	%
Interest expense, net	​		13,374		​	1.2	%	​	12,127		1.2	%		(1,247)	​	(10.3)	%
Other income	​		570		​	0.1	%	​	444		—	​		126	​	28.4	%
Income before income taxes	​		173,354		​	15.5	%	​	153,235		15.3	%		20,119	​	13.1	%
Income taxes	​		36,972		​	3.3	%	​	34,748		3.5	%		(2,224)	​	(6.4)	%
Effective tax rate	​		21.3	%	​	​	​	​	22.7	%	​	​		1.4	%	​	​
Net income	​	$	136,382		​	12.2	%	$	118,487		11.8	%	$	17,895	​	15.1	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic earnings per share	​	$	2.49	​	​	​		$	2.11		​	​	$	0.38	​	18.0	%
Diluted earnings per share	​	$	2.47	​	​	​		$	2.10		​	​	$	0.37	​	17.6	%
Weighted average shares (basic)	​		54,822	​	​	​		​	56,058		​	​		​	​	​	​
Weighted average shares (diluted)	​		55,317	​	​	​		​	56,527		​	​		​	​	​	​

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Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands)

(Unaudited)

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Balance Sheet Highlights

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​	​	​	​	​	​	​	​
Selected Consolidated Balance Sheet Data	​ ​ ​	March 31, 2026		​ ​ ​	December 31, 2025
Cash and cash equivalents	​	$	298,903	​	$	308,789	​
Accounts receivable, net	​	​	598,315	​	​	538,791	​
Inventories	​		693,938	​		633,364	​
Total current assets	​		1,863,444	​		1,739,512	​
Property, plant and equipment, net	​		720,836	​		702,762	​
Total assets	​		3,900,395	​		3,777,577	​
Trade accounts payable	​		448,138	​		364,934	​
Total current liabilities (1)	​		1,020,357	​		956,691	​
Long-term debt, less current portion	​		1,150,138	​		1,150,228	​
Total equity	​		1,511,260	​		1,469,794	​
​	​	​	​	​	​	​	​
Operating Working Capital	​	March 31, 2026		​	December 31, 2025		​
Average operating working capital to Net sales (2)	​		18.6	%		17.9	%
​	​	​	​	​	​	​	​
Invested Capital	​	March 31, 2026		​	December 31, 2025		​
Short-term debt (1)	​	$	163,502	​	$	143,780	​
Long-term debt, less current portion	​		1,150,138	​		1,150,228	​
Total debt	​		1,313,640	​		1,294,008	​
Total equity	​		1,511,260	​		1,469,794	​
Invested capital	​	$	2,824,900	​	$	2,763,802	​
​	​	​	​	​	​	​	​
Total debt / invested capital	​		46.5	%		46.8	%

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(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.

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Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

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 Non-GAAP Financial Measures

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​	​	​	​	​	​	​	​
​	​	Three Months Ended March 31,
​	​	2026		​	2025
Operating income as reported	​	$	186,158	​	$	164,918	​
Special items (pre-tax):	​	​	​	​		​	​
Rationalization and asset impairment net charges (2)	​	​	2,163	​		3,865	​
Transaction costs (3)	​	​	653	​		802	​
Amortization of step up in value of acquired inventories (4)	​	​	—	​		(140)	​
Adjusted operating income (1)	​	$	188,974	​	$	169,445	​
As a percent of net sales	​	​	16.9	%		16.9	%
​	​	​	​	​	​	​	​
Net income as reported	​	$	136,382	​	$	118,487	​
Special items:	​	​	​	​		​	​
Rationalization and asset impairment net charges (2)	​	​	2,163	​		3,865	​
Transaction costs (3)	​	​	653	​		802	​
Amortization of step up in value of acquired inventories (4)	​	​	—	​		(140)	​
Tax effect of Special items (5)	​	​	(740)	​		(1,158)	​
Adjusted net income (1)	​	​	138,458	​		121,856	​
Interest expense, net	​	​	13,374	​		12,127	​
Income taxes as reported	​	​	36,972	​		34,748	​
Tax effect of Special items (5)	​	​	740	​		1,158	​
Adjusted EBIT (1)	​	$	189,544	​	$	169,889	​
​	​	​	​	​	​	​	​
Effective tax rate as reported	​	​	21.3	%		22.7	%
Net special item tax impact	​	​	0.1	%		0.1	%
Adjusted effective tax rate (1)	​	​	21.4	%		22.8	%
​	​	​	​	​	​	​	​
Diluted earnings per share as reported	​	$	2.47	​	$	2.10	​
Special items per share	​	​	0.03	​		0.06	​
Adjusted diluted earnings per share (1)	​	$	2.50	​	$	2.16	​
​	​	​	​	​	​	​	​
Weighted average shares (diluted)	​	​	55,317	​		56,527	​

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(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 all three segments.

(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.

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Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Non-GAAP Financial Measures

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​	​	​	​	​	​	​
​	Twelve Months Ended March 31,
Return on Invested Capital	2026		​ ​ ​	2025		​
Net income as reported	$	538,428	​	$	461,180	​
Plus: Interest expense (after-tax)	​	44,044	​	​	41,450	​
Less: Interest income (after-tax)	​	4,459	​	​	6,868	​
Net operating profit after taxes	$	578,013	​	$	495,762	​
Special Items:	​	​	​	​	​	​
Rationalization and asset impairment net charges	​	16,497	​		55,120	​
Transaction costs		2,590	​		6,085	​
Pension settlement net charges		719	​		3,792	​
Amortization of step up in value of acquired inventories		4,104	​		4,883	​
Loss on asset disposal		—	​		4,950	​
Tax effect of Special items (2)		5,595	​		(11,545)	​
Adjusted net operating profit after taxes (1)	$	607,518	​	$	559,047	​
​	​	​	​	​	​	​
Invested Capital	March 31, 2026		​	March 31, 2025		​
Short-term debt	$	163,502	​	$	109,620	​
Long-term debt, less current portion		1,150,138	​		1,150,473	​
Total debt		1,313,640	​		1,260,093	​
Total equity		1,511,260	​		1,340,170	​
Invested capital	$	2,824,900	​	$	2,600,263	​
​	​	​	​	​	​	​
Return on invested capital as reported	​	20.5	%	​	19.1	%
Adjusted return on invested capital (1)		21.5	%		21.5	%

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

(2) 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.

​

​	​	​	​	​	​	​
​	Three Months Ended March 31,					​
Cash Conversion	2026		​	2025		​
Net cash provided by operating activities	$	102,170	​	$	185,693	​
Capital expenditures	​	(39,163)	​	​	(26,949)	​
Free cash flow (1)	$	63,007	​	$	158,744	​
​	​	​	​	​	​	​
Adjusted net income	$	138,458	​	$	121,856	​
​	​	​	​	​	​	​
Cash conversion (1)	​	46	%	​	130	%

​

(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 March 31,
​	​	2026		​	2025
OPERATING ACTIVITIES:		​	​		​	​
Net income	​	$	136,382	​	$	118,487
Adjustments to reconcile Net income to Net cash provided by operating activities:	​		​	​		​
Depreciation and amortization	​		26,009	​		23,784
Deferred income taxes	​	​	22,533	​	​	(5,838)
Other non-cash items, net	​		8,064	​		8,634
Changes in operating assets and liabilities, net of effects from acquisitions:	​		​	​		​
Increase in accounts receivable	​		(60,212)	​		(34,108)
Increase in inventories	​		(61,876)	​		(20,167)
(Increase) decrease in other current assets	​		(13,471)	​		2,057
Increase in trade accounts payable	​		83,784	​		64,884
(Decrease) increase in other current liabilities	​		(43,138)	​		21,206
Net change in other assets and liabilities	​		4,095	​		6,754
NET CASH PROVIDED BY OPERATING ACTIVITIES	​		102,170	​		185,693
​	​	​	​	​	​	​
INVESTING ACTIVITIES:	​		​	​		​
Capital expenditures	​		(39,163)	​		(26,949)
Acquisition of businesses, net of cash acquired	​		140	​		—
Proceeds from sale of property, plant and equipment	​		308	​		4,646
NET CASH USED BY INVESTING ACTIVITIES	​		(38,715)	​		(22,303)
​	​	​	​	​	​	​
FINANCING ACTIVITIES:	​		​	​		​
Proceeds from (payments on) short-term borrowings, net	​		19,613	​		(904)
Payments on long-term borrowings	​	​	—	​	​	(169)
Proceeds from exercise of stock options	​		8,559	​		6,254
Purchase of shares for treasury	​		(56,670)	​		(106,694)
Cash dividends paid to shareholders	​		(44,071)	​		(42,975)
NET CASH USED BY FINANCING ACTIVITIES	​		(72,569)	​		(144,488)
​	​	​	​	​	​	​
Effect of exchange rate changes on Cash and cash equivalents	​		(772)	​		(1,459)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	​		(9,886)	​		17,443
Cash and cash equivalents at beginning of period	​		308,789	​		377,262
Cash and cash equivalents at end of period	​	$	298,903	​	$	394,705
​	​	​	​	​	​	​
Cash dividends paid per share	​	$	0.79	​	$	0.75

​

​

​

​

​

​

​

​

​

​

​

​

Lincoln Electric Holdings, Inc.

Segment Highlights

(In thousands)

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​ ​ ​

Americas

​ ​ ​

International

​ ​ ​

The Harris

​ ​ ​

Corporate /

​ ​ ​

​

​

​

​

Welding

​

Welding

​

Products Group

​

Eliminations

​

Consolidated

Three months ended March 31, 2026

​

​

​

​

​

​

​

​

​

​

​

Net sales

​

$

706,225

​

$

227,035

​

$

188,174

​

$

—

​

$

1,121,434

​

Inter-segment sales

​

36,709

​

5,807

​

4,664

​

(47,180)

​

—

​

Total sales

​

$

742,934

​

$

232,842

​

$

192,838

​

$

(47,180)

​

$

1,121,434

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

​

​

​

​

​

​

​

​

​

$

136,382

​

As a percent of total sales

​

​

​

​

​

​

​

​

​

12.2

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBIT (1)

​

$

126,895

​

$

20,890

​

$

40,991

​

$

(2,048)

​

$

186,728

​

As a percent of total sales

​

17.1

%

9.0

%

21.3

%

​

​

16.7

%

Special items charges (gain) (3)

​

573

​

1,772

​

(182)

​

653

​

2,816

​

Adjusted EBIT (2)

​

$

127,468

​

$

22,662

​

$

40,809

​

$

(1,395)

​

$

189,544

​

As a percent of total sales

​

17.2

%

9.7

%

21.2

%

​

​

16.9

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended March 31, 2025

​

​

​

​

​

​

​

​

​

​

​

Net sales

​

$

653,107

​

$

219,061

​

$

132,220

​

$

—

​

$

1,004,388

​

Inter-segment sales

​

30,372

​

6,832

​

3,984

​

(41,188)

​

—

​

Total sales

​

$

683,479

​

$

225,893

​

$

136,204

​

$

(41,188)

​

$

1,004,388

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

​

​

​

​

​

​

​

​

​

$

118,487

​

As a percent of total sales

​

​

​

​

​

​

​

​

​

11.8

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBIT (1)

​

$

122,063

​

$

21,600

​

$

24,151

​

$

(2,452)

​

$

165,362

​

As a percent of total sales

​

17.9

%

9.6

%

17.7

%

​

​

16.5

%

Special items charges (4)

​

2,135

​

1,412

​

178

​

802

​

4,527

​

Adjusted EBIT (2)

​

$

124,198

​

$

23,012

​

$

24,329

​

$

(1,650)

​

$

169,889

​

As a percent of total sales

​

18.2

%

10.2

%

17.9

%

​

​

16.9

%

​

(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 $573 in Americas Welding and $1,772 in International Welding, and a net gain of $182 in Harris Products Group. In addition, there were transaction costs of $653 in Corporate/Eliminations.

(4) Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $2,135 in Americas Welding, $1,552 in International Welding and $178 in Harris Products Group, as well as transaction costs of $802 in Corporate/Eliminations.

​

​

​

Lincoln Electric Holdings, Inc.

Change in Net Sales by Segment

(In thousands)

(Unaudited)

​

​

Three Months Ended March 31^st 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

$

653,107

$

(2,635)

​

$

49,479

​

$

—

​

$

6,274

$

706,225

​

International Welding

​

219,061

​

(21,631)

​

​

297

​

​

15,794

​

​

13,514

​

227,035

​

The Harris Products Group

​

132,220

​

(1,375)

​

​

54,782

​

​

—

​

​

2,547

​

188,174

​

Consolidated

$

1,004,388

$

(25,641)

$

104,558

$

15,794

$

22,335

$

1,121,434

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

% Change

​

​

​

​

​

​

​

​

​

​

​

​

​

Americas Welding

​

​

​

​

(0.4)

%

​

7.6

%

​

—

​

​

0.9

%

​

8.1

%

International Welding

​

​

​

(9.9)

%

​

0.1

%

​

7.2

%

​

6.2

%

​

3.6

%

The Harris Products Group

​

​

​

​

(1.0)

%

​

41.4

%

​

—

​

​

1.9

%

​

42.3

%

Consolidated

​

​

​

(2.6)

%

​

10.4

%

​

1.6

%

​

2.3

%

​

11.7

%

​

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 662.7 KB

Other Documents

• EX-101 EX-101.SCH 2.6 KB
• EX-101 EX-101.LAB 14.9 KB
• EX-101 EX-101.PRE 9.8 KB