Record-like 2025 for Lincoln Electric (NASDAQ: LECO) with higher EPS and cash returns

Rhea-AI Filing Summary

Lincoln Electric Holdings reported solid fourth quarter and full year 2025 results. Fourth quarter net sales rose 5.5% to $1,078.7 million, with organic sales up 2.5%, and diluted EPS of $2.45; adjusted EPS increased to $2.65 from $2.57 a year earlier. Operating income margin was 17.1%, with an adjusted margin of 18.0%.

For the full year 2025, net sales grew 5.6% to $4,233.0 million, driven by 2.5% organic growth and a 2.7% benefit from acquisitions. Diluted EPS increased to $9.32 from $8.15, and adjusted EPS rose to $9.87 from $9.29. Operating income margin improved to 17.0% from 15.9%, while adjusted operating margin held at 17.6%. Net cash provided by operating activities reached $661.2 million, supporting $534.2 million of free cash flow and $507 million returned to shareholders through dividends and share repurchases.

Positive

• Double-digit earnings growth: 2025 diluted EPS rose to $9.32 from $8.15, and adjusted EPS increased to $9.87 from $9.29, reflecting strong underlying profitability.
• Margin expansion and high returns: Operating margin improved to 17.0% from 15.9%, and adjusted return on invested capital reached 21.3%, indicating efficient use of capital.
• Strong cash generation and shareholder returns: Operating cash flow of $661.2 million supported $534.2 million of free cash flow and $507 million returned to shareholders via dividends and repurchases.

Negative

• None.

Insights

Equity analyst – industrials and earnings quality

2025 delivered broad-based growth, margin expansion and strong cash returns.

Lincoln Electric grew full year 2025 net sales 5.6% to $4,233.0 million, with 2.5% organic growth and 2.7% from acquisitions. Diluted EPS increased to $9.32 from $8.15, while adjusted EPS rose to $9.87 from $9.29, indicating underlying earnings strength despite special charges.

Profitability improved: operating income climbed to $718.1 million, lifting margin to 17.0% from 15.9%. Adjusted operating income reached $743.0 million, sustaining a 17.6% margin. Adjusted return on invested capital was a robust 21.3%, supported by invested capital of $2,763.8 million and total debt representing 46.8% of invested capital.

Cash generation was strong, with operating cash flow of $661.2 million and free cash flow of $534.2 million. The company returned $507 million to shareholders via dividends and buybacks while funding $126.97 million of capital expenditures. Future disclosures, including the detailed 2030 targets discussed on the February 12, 2026 webcast, will provide more insight into the durability of these trends.

0000059527false00000595272026-02-122026-02-12

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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): February 12, 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. ☐

​

​

​

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​

​	​	​
Item 2.02	Results of Operations and Financial Condition.
​	​
​	On February 12, 2026, Lincoln Electric Holdings, Inc. (the “Company”) issued a press release reporting its financial results for the quarter ended December 31, 2025.  A copy of the Company’s press release issued on February 12, 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 February 12, 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 February 12, 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)
​	February 12, 2026

​

​

​

​

Exhibit 99.1

​

Investor Relations: Amanda Butler (216) 383-2534

Amanda_Butler@lincolnelectric.com

​

LINCOLN ELECTRIC REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

​

​

​

Fourth Quarter 2025 Highlights

​

◾

Net sales increase 5.5% to $1,079 million; organic sales increase 2.5%

​

◾

Operating income margin of 17.1%; Adjusted operating income margin of 18.0%

​

◾

EPS of $2.45; Adjusted EPS of $2.65

​

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Full Year 2025 Highlights

​

​

◾

Net sales increase 5.6% to $4,233 million, organic sales increase 2.5%

​

◾

Operating income margin of 17.0%; Adjusted operating income margin of 17.6%

​

◾

EPS of $9.32; Adjusted EPS of $9.87

​

◾

Cash flows from operations of $661 million

​

◾

Returned $507 million to shareholders through dividends and share repurchases

​

​

CLEVELAND, Thursday, February 12, 2026 - Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported fourth quarter 2025 net income of $136.0 million, or diluted earnings per share (EPS) of $2.45, which includes special item after-tax net charges of $10.6 million, or $0.20 EPS. This compares with prior year period net income of $140.2 million, or $2.47 EPS, which included special item after-tax net charges of $5.8 million, or $0.10 EPS. Excluding special items, fourth quarter 2025 adjusted net income was $146.6 million, or $2.65 adjusted EPS. This compares with adjusted net income of $146.0 million, or $2.57 adjusted EPS, in the prior year period.

​

Fourth quarter 2025 sales increased 5.5% to $1,078.7 million reflecting a 2.5% increase in organic sales, a 1.1% benefit from acquisitions and a 1.9% favorable foreign exchange. Operating income for the fourth quarter 2025 was $184.3 million, or 17.1% of sales. This compares with operating income of $177.0 million, or 17.3% of sales, in the prior year period. Excluding special items, adjusted operating income was $193.8 million, or 18.0% of sales, as compared with $185.6 million, or 18.2% of sales, in the prior year period.

​

“We finished the year with strong results and record sales, adjusted EPS and cash returns to shareholders in 2025,” said Steven B. Hedlund, Chairman and Chief Executive Officer. “We are effectively navigating a dynamic operating environment by capitalizing on growth opportunities, mitigating costs, and reshaping the business to extend our leadership position,” Hedlund commented. “We are looking ahead to driving growth, higher profitability and returns as we execute on our new RISE strategy and achieve our 2030 targets.”

​

Twelve Months 2025 Summary

​

Net income for the twelve months ended December 31, 2025 was $520.5 million, or $9.32 EPS, which includes special item after-tax net charges of $30.8 million, or $0.55 EPS. This compares with prior year period net income of $466.1 million, or $8.15 EPS, which included special item after-tax net charges of $65.2 million, or $1.14 EPS. Excluding special items, adjusted net income for the twelve months ended December 31, 2025 was $551.3 million, or $9.87 EPS. This compares with adjusted net income of $531.3 million, or $9.29 adjusted EPS, in the prior year period.

​

Sales increased 5.6% to $4,233.0 million in the twelve months ended December 31, 2025 primarily reflecting a 2.5% increase in organic sales and a 2.7% benefit from acquisitions. Operating income for the twelve months ended December 31, 2025 was $718.1 million, or 17.0% of sales. This compares with operating income of $636.5 million, or 15.9% of sales, in the prior year period. Excluding special items, adjusted operating income was $743.0 million, or 17.6% of sales, as compared with $704.4 million, or 17.6% of sales, in the prior year period.

​

​

LINCOLN ELECTRIC REPORTS FOURTH QUARTER 2025 RESULTS

Webcast Information

​

A conference call to discuss fourth quarter and full year 2025 financial results as well as new strategic 2030 targets will be webcast live today, February 12, 2026, at 10:00 a.m., Eastern Time. Those interested in participating via webcast in listen-only mode can access the event here or on the Company's Investor Relations home page at https://ir.lincolnelectric.com. For participants who would like 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 via webcast on the Company's website.

​

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 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, including any changes from the new legislation implemented in the One Big Beautiful Bill Act (“OBBBA”); 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, 2024 and Quarterly Report on Form 10-Q for the quarter ended March 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 December 31,										​	Prior Year
​	​	2025		​	% of Sales		​ ​ ​	2024		​ ​ ​	% of Sales	​	$		​	%
Net sales	​	$	1,078,715		​	100.0	%	$	1,022,031		100.0	%	$	56,684	​	5.5	%
Cost of goods sold	​	​	704,769		​	65.3	%	​	653,409		63.9	%		(51,360)	​	(7.9)	%
Gross profit	​		373,946		​	34.7	%		368,622		36.1	%		5,324	​	1.4	%
Selling, general & administrative expenses	​		183,645		​	17.0	%		187,067		18.3	%		3,422	​	1.8	%
Rationalization and asset impairment net charges	​		5,961		​	0.6	%		4,538		0.4	%		(1,423)	​	(31.4)	%
Operating income	​		184,340		​	17.1	%		177,017		17.3	%		7,323	​	4.1	%
Interest expense, net	​		13,167		​	1.2	%		11,372		1.1	%		(1,795)	​	(15.8)	%
Other income	​		1,488		​	0.1	%		1,408		0.1	%		80	​	5.7	%
Income before income taxes	​		172,661		​	16.0	%		167,053		16.3	%		5,608	​	3.4	%
Income taxes	​		36,639		​	3.4	%		26,824		2.6	%		(9,815)	​	(36.6)	%
Effective tax rate	​		21.2	%	​	​	​		16.1	%	​	​		(5.1)	%	​	​
Net income	​	$	136,022		​	12.6	%	$	140,229		13.7	%	$	(4,207)	​	(3.0)	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic earnings per share	​	$	2.48	​	​	​	​	$	2.49		​	​	$	(0.01)	​	(0.4)	%
Diluted earnings per share	​	$	2.45	​	​	​	​	$	2.47		​	​	$	(0.02)	​	(0.8)	%
Weighted average shares (basic)	​		54,941	​		​	​		56,309		​	​		​	​	​	​
Weighted average shares (diluted)	​		55,412	​		​	​		56,818		​	​		​	​	​	​

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​	​ ​ ​	​	​	​	​	​	​	​	​	​	​	​ ​ ​	Fav (Unfav) to
​	​	Year Ended December 31,										​	Prior Year
​		2025		​	% of Sales		​ ​ ​	2024		​	% of Sales	​ ​ ​	$		​	%
Net sales	​	$	4,233,003		​	100.0	%	$	4,008,670		100.0	%	$	224,333	​	5.6	%
Cost of goods sold	​		2,698,751		​	63.8	%	​	2,535,758		63.3	%		(162,993)	​	(6.4)	%
Gross profit	​		1,534,252		​	36.2	%	​	1,472,912		36.7	%		61,340	​	4.2	%
Selling, general & administrative expenses	​		797,994		​	18.9	%	​	780,590		19.5	%		(17,404)	​	(2.2)	%
Rationalization and asset impairment net charges	​		18,199		​	0.4	%	​	55,860		1.4	%		37,661	​	67.4	%
Operating income	​		718,059		​	17.0	%	​	636,462		15.9	%		81,597	​	12.8	%
Interest expense, net	​		51,561		​	1.2	%	​	42,786		1.1	%		(8,775)	​	(20.5)	%
Other income	​		8,952		​	0.2	%	​	473		—	​		8,479	​	1,792.6	%
Income before income taxes	​		675,450		​	16.0	%	​	594,149		14.8	%		81,301	​	13.7	%
Income taxes	​		154,917		​	3.7	%	​	128,041		3.2	%		(26,876)	​	(21.0)	%
Effective tax rate	​		22.9	%	​	​	​	​	21.6	%	​	​		(1.3)	%	​	​
Net income	​	$	520,533		​	12.3	%	$	466,108		11.6	%	$	54,425	​	11.7	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic earnings per share	​	$	9.39	​	​	​		$	8.23		​	​	$	1.16	​	14.1	%
Diluted earnings per share	​	$	9.32	​	​	​		$	8.15		​	​	$	1.17	​	14.4	%
Weighted average shares (basic)	​		55,410	​	​	​		​	56,639		​	​		​	​	​	​
Weighted average shares (diluted)	​		55,875	​	​	​		​	57,194		​	​		​	​	​	​

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Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands)

(Unaudited)

​

Balance Sheet Highlights

​

​	​	​	​	​	​	​	​
Selected Consolidated Balance Sheet Data	​ ​ ​	December 31, 2025		​ ​ ​	December 31, 2024
Cash and cash equivalents	​	$	308,789	​	$	377,262	​
Accounts receivable, net	​	​	538,791	​	​	481,979	​
Inventories	​		633,364	​		544,037	​
Total current assets	​		1,739,512	​		1,645,281	​
Property, plant and equipment, net	​		702,762	​		619,181	​
Total assets	​		3,777,577	​		3,520,142	​
Trade accounts payable	​		364,934	​		296,590	​
Total current liabilities (1)	​		956,691	​		878,802	​
Long-term debt, less current portion	​		1,150,228	​		1,150,551	​
Total equity	​		1,469,794	​		1,327,433	​
​	​	​	​	​	​	​	​
Operating Working Capital	​	December 31, 2025		​	December 31, 2024		​
Average operating working capital to Net sales (2)	​		17.9	%		16.9	%
​	​	​	​	​	​	​	​
Invested Capital	​	December 31, 2025		​	December 31, 2024		​
Short-term debt (1)	​	$	143,780	​	$	110,524	​
Long-term debt, less current portion	​		1,150,228	​		1,150,551	​
Total debt	​		1,294,008	​		1,261,075	​
Total equity	​		1,469,794	​		1,327,433	​
Invested capital	​	$	2,763,802	​	$	2,588,508	​
​	​	​	​	​	​	​	​
Total debt / invested capital	​		46.8	%		48.7	%

​

(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 December 31,

​

Year Ended December 31,

​

​

2025

​

2024

​

​

2025

​

2024

Operating income as reported

​

$

184,340

​

$

177,017

​

$

718,059

​

$

636,462

​

Special items (pre-tax):

​

​

​

​

​

​

​

​

​

​

Rationalization and asset impairment net charges (2)

​

5,961

​

4,538

​

​

18,199

​

55,860

​

Acquisition transaction costs (3)

​

1,056

​

2,491

​

​

2,739

​

7,042

​

Amortization of step up in value of acquired inventories (4)

​

2,482

​

1,552

​

​

3,964

​

5,026

​

Adjusted operating income (1)

​

$

193,839

​

$

185,598

​

$

742,961

​

$

704,390

​

As a percent of net sales

​

18.0

%

18.2

%

​

​

17.6

%

17.6

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income as reported

​

$

136,022

​

$

140,229

​

$

520,533

​

$

466,108

​

Special items:

​

​

​

​

​

​

​

​

​

​

Rationalization and asset impairment net charges (2)

​

5,961

​

4,538

​

​

18,199

​

55,860

​

Acquisition transaction costs (3)

​

1,056

​

2,491

​

​

2,739

​

7,042

​

Amortization of step up in value of acquired inventories (4)

​

2,482

​

1,552

​

​

3,964

​

5,026

​

Pension settlement net charges (gains) (5)

​

719

​

(174)

​

​

719

​

3,792

​

Loss on asset disposal (6)

​

—

​

—

​

​

—

​

4,950

​

Tax effect of Special items (7)(8)

​

405

​

(2,655)

​

​

5,177

​

(11,513)

​

Adjusted net income (1)

​

146,645

​

145,981

​

​

551,331

​

531,265

​

Interest expense, net

​

13,167

​

11,372

​

​

51,561

​

42,786

​

Income taxes as reported

​

36,639

​

26,824

​

​

154,917

​

128,041

​

Tax effect of Special items (7)(8)

​

(405)

​

2,655

​

​

(5,177)

​

11,513

​

Adjusted EBIT (1)

​

$

196,046

​

$

186,832

​

$

752,632

​

$

713,605

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Effective tax rate as reported

​

21.2

%

16.1

%

​

​

22.9

%

21.6

%

Net special item tax impact (8)

​

(1.4)

%

0.7

​

​

​

(1.5)

%

(0.8)

%

Adjusted effective tax rate (1)

​

19.8

%

16.8

%

​

​

21.4

%

20.8

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Diluted earnings per share as reported

​

$

2.45

​

$

2.47

​

$

9.32

​

$

8.15

​

Special items per share

​

0.20

​

0.10

​

​

0.55

​

1.14

​

Adjusted diluted earnings per share (1)

​

$

2.65

​

$

2.57

​

$

9.87

​

$

9.29

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted average shares (diluted)

​

55,412

​

56,818

​

​

55,875

​

57,194

​

​

(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) 2025 and 2024 net charges primarily relate to rationalization plans within all three segments. Year to date charges in 2024 include the impact of the Company’s disposition of its Russian entity.

(3) Transaction costs related to acquisitions which are included in Selling, general & administrative expenses.

(4) Costs related to acquisitions which are included in Cost of goods sold.

(5) Pension settlement net charges are included in Other income. 2024 net charges are primarily related to the final settlement associated with the termination of a pension plan.

(6) Loss on asset disposal included in Other income.

(7) 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.

(8) The OBBBA was enacted in the United States on July 4, 2025. The Company recognized tax expense of approximately $2,900 and $11,700 in the three months and twelve months ended December 31, 2025, respectively, reflecting the cumulative impact of the OBBBA provisions.

​

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Non-GAAP Financial Measures

​

​	​	​	​	​	​	​
​	Twelve Months Ended December 31,
Return on Invested Capital	2025		​ ​ ​	2024		​
Net income as reported	$	520,533	​	$	466,108	​
Plus: Interest expense (after-tax)	​	43,762	​	​	39,665	​
Less: Interest income (after-tax)	​	5,118	​	​	7,593	​
Net operating profit after taxes	$	559,177	​	$	498,180	​
Special Items:	​	​	​	​	​	​
Rationalization and asset impairment net charges	​	18,199	​		55,860	​
Acquisition transaction costs		2,739	​		7,042	​
Pension settlement net charges		719	​		3,792	​
Amortization of step up in value of acquired inventories		3,964	​		5,026	​
Loss on asset disposal		—	​		4,950	​
Tax effect of Special items (2)		5,177	​		(11,513)	​
Adjusted net operating profit after taxes (1)	$	589,975	​	$	563,337	​
​	​	​	​	​	​	​
Invested Capital	December 31, 2025		​	December 31, 2024		​
Short-term debt	$	143,780	​	$	110,524	​
Long-term debt, less current portion		1,150,228	​		1,150,551	​
Total debt		1,294,008	​		1,261,075	​
Total equity		1,469,794	​		1,327,433	​
Invested capital	$	2,763,802	​	$	2,588,508	​
​	​	​	​	​	​	​
Return on invested capital as reported	​	20.2	%	​	19.2	%
Adjusted return on invested capital (1)		21.3	%		21.8	%

​

(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, including the cumulative impact of the OBBBA provisions. 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 December 31,

​

​

Year Ended December 31,

​

Cash Conversion

2025

​

2024

​

​

2025

​

2024

​

Net cash provided by operating activities

$

94,965

​

$

95,795

​

​

$

661,173

​

$

598,977

​

Capital expenditures

​

(42,946)

​

​

(31,486)

​

​

​

(126,974)

​

​

(116,603)

​

Free cash flow (1)

$

52,019

​

$

64,309

​

​

$

534,199

​

$

482,374

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Adjusted net income

$

146,645

​

$

145,981

​

​

$

551,331

​

$

531,265

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash conversion (1)

​

35

%

​

44

%

​

​

97

%

​

91

%

​

(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 December 31,
​	2025		​	2024
OPERATING ACTIVITIES:	​	​		​	​
Net income	$	136,022	​	$	140,229
Adjustments to reconcile Net income to Net cash provided by operating activities:		​	​		​
Rationalization and asset impairment net charges		(70)	​		(5,032)
Depreciation and amortization		25,556	​		23,143
Deferred income taxes	​	11,349	​	​	(26,988)
Pension settlement net charges	​	719	​	​	(174)
Other non-cash items, net		10,212	​		(5,552)
Changes in operating assets and liabilities, net of effects from acquisitions:	​	​	​	​	​
(Increase) decrease in accounts receivable		(35,863)	​		16,663
Decrease in inventories		39,439	​		47,051
Decrease (increase) in other current assets	​	55,482	​	​	(21,647)
Decrease in trade accounts payable		(34,298)	​		(20,301)
Decrease in other current liabilities		(104,548)	​		(34,607)
Net change in other long-term assets and liabilities		(9,035)	​		(16,990)
NET CASH PROVIDED BY OPERATING ACTIVITIES		94,965	​		95,795
​	​	​	​	​	​
INVESTING ACTIVITIES:		​	​		​
Capital expenditures		(42,946)	​		(31,486)
Acquisition of businesses, net of cash acquired		(875)	​		—
Proceeds from sale of property, plant and equipment	​	770	​		5,292
Other investing activities	​	—	​	​	320
NET CASH USED BY INVESTING ACTIVITIES		(43,051)	​		(25,874)
​	​	​	​	​	​
FINANCING ACTIVITIES:		​	​		​
Proceeds from short-term borrowings, net		55,574	​		2,928
Payments on long-term borrowings	​	—	​	​	(169)
Proceeds from exercise of stock options		1,517	​		1,524
Purchase of shares for treasury		(51,820)	​		(52,539)
Cash dividends paid to shareholders		(41,764)	​		(40,164)
Other financing activities	​	—	​	​	(3,922)
NET CASH USED BY FINANCING ACTIVITIES		(36,493)	​		(92,342)
​	​	​	​	​	​
Effect of exchange rate changes on Cash and cash equivalents		371	​		(4,535)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		15,792	​		(26,956)
Cash and cash equivalents at beginning of period		292,997	​		404,218
Cash and cash equivalents at end of period	$	308,789	​	$	377,262
​	​	​	​	​	​
Cash dividends paid per share	$	0.75	​	$	0.71

​

​

​

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

​

Condensed Consolidated Statements of Cash Flows

​

​	​	​	​	​	​	​
​	​ ​ ​	Year Ended December 31,
​	​	2025		​	2024
OPERATING ACTIVITIES:		​	​		​	​
Net income	​	$	520,533	​	$	466,108
Adjustments to reconcile Net income to Net cash provided by operating activities:	​		​	​		​
Rationalization and asset impairment net charges	​		1,141	​		20,887
Depreciation and amortization	​		98,546	​		88,238
Deferred income taxes	​	​	82,744	​	​	(40,328)
Pension settlement net charges	​	​	719	​	​	3,792
Other non-cash items, net	​		23,003	​		17,272
Changes in operating assets and liabilities, net of effects from acquisitions:	​		​	​		​
(Increase) decrease in accounts receivable	​		(26,433)	​		52,829
(Increase) decrease in inventories	​		(47,783)	​		25,355
Increase in other current assets	​		(10,568)	​		(41,558)
Increase (decrease) in trade accounts payable	​		56,257	​		(27,189)
(Decrease) increase in other current liabilities	​		(26,090)	​		32,703
Net change in other assets and liabilities	​		(10,896)	​		868
NET CASH PROVIDED BY OPERATING ACTIVITIES	​		661,173	​		598,977
​	​	​	​	​	​	​
INVESTING ACTIVITIES:	​		​	​		​
Capital expenditures	​		(126,974)	​		(116,603)
Acquisition of businesses, net of cash acquired	​		(137,530)	​		(252,746)
Proceeds from sale of property, plant and equipment	​		7,178	​		7,798
Other investing activities	​	​	—	​	​	320
NET CASH USED BY INVESTING ACTIVITIES	​		(257,326)	​		(361,231)
​	​	​	​	​	​	​
FINANCING ACTIVITIES:	​		​	​		​
Proceeds from short-term borrowings, net	​		133,252	​		8,449
Proceeds from long-term borrowings	​	​	—	​	​	550,000
Payments on long-term borrowings	​	​	(100,169)	​	​	(400,677)
Proceeds from exercise of stock options	​		11,578	​		27,404
Purchase of shares for treasury	​		(338,308)	​		(263,751)
Cash dividends paid to shareholders	​		(168,240)	​		(162,143)
Other financing activities	​	​	—	​	​	(3,922)
NET CASH USED BY FINANCING ACTIVITIES	​		(461,887)	​		(244,640)
​	​	​	​	​	​	​
Effect of exchange rate changes on Cash and cash equivalents	​		(10,433)	​		(9,631)
DECREASE IN CASH AND CASH EQUIVALENTS	​		(68,473)	​		(16,525)
Cash and cash equivalents at beginning of period	​		377,262	​		393,787
Cash and cash equivalents at end of period	​	$	308,789	​	$	377,262
​	​	​	​	​	​	​
Cash dividends paid per share	​	$	3.00	​	$	2.84

​

​

​

​

​

​

​

​

​

​

Lincoln Electric Holdings, Inc.

Segment Highlights

(In thousands)

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​ ​ ​

Americas

​ ​ ​

International

​ ​ ​

The Harris

​ ​ ​

Corporate /

​ ​ ​

​

​

​

​

Welding

​

Welding

​

Products Group

​

Eliminations

​

Consolidated

Three months ended December 31, 2025

​

​

​

​

​

​

​

​

​

​

​

Net sales

​

$

681,930

​

$

259,351

​

$

137,434

​

$

—

​

$

1,078,715

​

Inter-segment sales

​

25,101

​

5,857

​

2,549

​

(33,507)

​

—

​

Total sales

​

$

707,031

​

$

265,208

​

$

139,983

​

$

(33,507)

​

$

1,078,715

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

​

​

​

​

​

​

​

​

​

​

​

​

$

136,022

​

As a percent of total sales

​

​

​

​

​

​

​

​

​

12.6

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBIT (1)

​

$

137,816

​

$

25,485

​

$

22,829

​

$

(302)

​

$

185,828

​

As a percent of total sales

​

19.5

%

9.6

%

16.3

%

​

​

17.2

%

Special items charges (3)

​

3,295

​

5,717

​

488

​

718

​

10,218

​

Adjusted EBIT (2)

​

$

141,111

​

$

31,202

​

$

23,317

​

$

416

​

$

196,046

​

As a percent of total sales

​

20.0

%

11.8

%

16.7

%

​

​

18.2

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended December 31, 2024

​

​

​

​

​

​

​

​

​

​

​

Net sales

​

$

654,786

​

$

242,979

​

$

124,266

​

$

—

​

$

1,022,031

​

Inter-segment sales

​

37,134

​

11,233

​

2,801

​

(51,168)

​

—

​

Total sales

​

$

691,920

​

$

254,212

​

$

127,067

​

$

(51,168)

​

$

1,022,031

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

​

​

​

​

​

​

​

​

​

​

​

​

$

140,229

​

As a percent of total sales

​

​

​

​

​

​

​

​

​

13.7

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBIT (1)

​

$

127,813

​

$

32,013

​

$

20,278

​

$

(1,679)

​

$

178,425

​

As a percent of total sales

​

18.5

%

12.6

%

16.0

%

​

​

17.5

%

Special items charges (4)

​

4,110

​

517

​

1,289

​

2,491

​

8,407

​

Adjusted EBIT (2)

​

$

131,923

​

$

32,530

​

$

21,567

​

$

812

​

$

186,832

​

As a percent of total sales

​

19.1

%

12.8

%

17.0

%

​

​

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 2025 primarily reflect Rationalization and asset impairments net charges of $2,648 in Americas Welding, $2,825 in International Welding and $488 in The Harris Products Group. In addition, there was amortization of the step up in value of acquired inventories of $2,482 in International Welding, a pension settlement net charge of $647 in Americas Welding and $72 in International Welding, and acquisition transaction costs of $718 in Corporate/Eliminations.

(4) Special items in 2024 primarily reflect Rationalization and asset impairments net charges of $2,319 in Americas Welding, $930 in International Welding and $1,289 in Harris Products Group. In addition, there was amortization of the step up in value of acquired inventories of $1,552 in Americas Welding, pension settlement charge of $239 in Americas Welding and a gain of $413 in International Welding, and acquisition transaction costs of $2,491 in Corporate/Eliminations.

​

​

Lincoln Electric Holdings, Inc.

Segment Highlights

(In thousands)

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​ ​ ​

Americas

​ ​ ​

International

​ ​ ​

The Harris

​ ​ ​

Corporate /

​ ​ ​

​

​

​

​

Welding

​

Welding

​

Products Group

​

Eliminations

​

Consolidated

Year ended December 31, 2025

​

​

​

​

​

​

​

​

​

​

​

Net sales

​

$

2,723,561

​

$

930,865

​

$

578,577

​

$

—

​

$

4,233,003

​

Inter-segment sales

​

128,922

​

30,160

​

15,084

​

(174,166)

​

—

​

Total sales

​

$

2,852,483

​

$

961,025

​

$

593,661

​

$

(174,166)

​

$

4,233,003

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

​

​

​

​

​

​

​

​

​

$

520,533

​

As a percent of total sales

​

​

​

​

​

​

​

​

​

12.3

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBIT (1)

​

$

524,129

​

$

99,143

​

$

106,540

​

$

(2,801)

​

$

727,011

​

As a percent of total sales

​

18.4

%

10.3

%

17.9

%

​

​

17.2

%

Special items charges (3)

​

10,710

​

11,442

​

1,068

​

2,401

​

25,621

​

Adjusted EBIT (2)

​

$

534,839

​

$

110,585

​

$

107,608

​

$

(400)

​

$

752,632

​

As a percent of total sales

​

18.7

%

11.5

%

18.1

%

​

​

17.8

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended December 31, 2024

​

​

​

​

​

​

​

​

​

​

​

Net sales

​

$

2,564,847

​

$

933,722

​

$

510,101

​

$

—

​

$

4,008,670

​

Inter-segment sales

​

135,758

​

35,861

​

12,321

​

(183,940)

​

—

​

Total sales

​

$

2,700,605

​

$

969,583

​

$

522,422

​

$

(183,940)

​

$

4,008,670

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

​

​

​

​

​

​

​

​

​

$

466,108

​

As a percent of total sales

​

​

​

​

​

​

​

​

​

11.6

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBIT (1)

​

$

502,367

​

$

68,370

​

$

84,373

​

$

(18,175)

​

$

636,935

​

As a percent of total sales

​

18.6

%

7.1

%

16.2

%

​

​

15.9

%

Special items charges (4)

​

27,821

​

37,747

​

3,955

​

7,147

​

76,670

​

Adjusted EBIT (2)

​

$

530,188

​

$

106,117

​

$

88,328

​

$

(11,028)

​

$

713,605

​

As a percent of total sales

​

19.6

%

10.9

%

16.9

%

​

​

17.8

%

​

(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 2025 primarily reflect Rationalization and asset impairments net charges of $9,838 in Americas Welding, $7,293 in International Welding and $1,068 in The Harris Products Group. In addition, there was amortization of the step up in value of acquired inventories of $3,739 in International Welding, a pension settlement net charge of $647 in Americas Welding and $72 in International Welding, and acquisition transaction costs of $2,401 in Corporate/Eliminations.

(4) Special items in 2024 primarily reflect rationalization net charges of $18,840 in Americas Welding, $32,960 in International Welding, including the impact of the Company’s disposition of its Russian entity, and $3,955 in Harris Products Group. In addition, there was a loss on asset disposal of $4,950 recorded to Other income in International Welding, amortization of the step up in value of acquired inventories of $4,776 and $250 in Americas Welding and International Welding, respectively, pension settlement charge of $4,205 and gain of $413 in Americas Welding and International Welding, respectively, and acquisition transaction costs of $7,042 in Corporate/Eliminations.

​

Lincoln Electric Holdings, Inc.

Change in Net Sales by Segment

(In thousands)

(Unaudited)

​

​

Three Months Ended December 31^st Change in Net Sales by Segment

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​ ​ ​

Change in Net Sales due to:

​ ​ ​

​ ​ ​

​

​

Net Sales

​

​

​

​

​

​

​

​

​

​

Foreign

​

Net Sales

​

2024

​

Volume

​

Price

​

Acquisitions

​

Exchange

​

2025

Operating Segments

​

​

​

​

​

​

​

​

​

​

​

​

​

Americas Welding

$

654,786

​

$

(45,383)

$

67,964

$

—

$

4,563

​

$

681,930

​

International Welding

​

242,979

​

(8,635)

​

1,289

​

11,119

​

12,599

​

259,351

​

The Harris Products Group

​

124,266

​

(11,029)

​

22,171

​

—

​

2,026

​

137,434

​

Consolidated

$

1,022,031

​

$

(65,047)

$

91,424

$

11,119

$

19,188

​

$

1,078,715

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

% Change

​

​

​

​

​

​

​

​

​

​

​

​

​

Americas Welding

​

​

​

(6.9)

%

​

10.4

%

​

—

​

​

0.6

%

4.1

%

International Welding

​

​

​

(3.6)

%

​

0.5

%

​

4.7

%

​

5.1

%

6.7

%

The Harris Products Group

​

​

​

(8.9)

%

​

17.8

%

​

—

​

​

1.7

%

10.6

%

Consolidated

​

​

​

(6.4)

%

​

8.9

%

​

1.1

%

​

1.9

%

5.5

%

​

​

Twelve Months Ended December 31^st Change in Net Sales by Segment

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​ ​ ​

​

​

​ ​ ​

Change in Net Sales due to:

​ ​ ​

​

​ ​ ​

​

​

Net Sales

​

​

​

​

​

​

​

​

​

​

Foreign

​

Net Sales

​

​

2024

​

Volume

​

Price

​

Acquisitions

​

Exchange

​

2025

Operating Segments

​

​

​

​

​

​

​

​

​

​

​

​

​

Americas Welding

$

2,564,847

$

(107,480)

​

$

184,483

​

$

86,361

​

$

(4,650)

$

2,723,561

​

International Welding

​

933,722

​

(47,629)

​

​

3,062

​

​

20,117

​

​

21,593

​

930,865

​

The Harris Products Group

​

510,101

​

7,427

​

​

58,995

​

​

—

​

​

2,054

​

578,577

​

Consolidated

$

4,008,670

$

(147,682)

$

246,540

$

106,478

$

18,997

$

4,233,003

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

% Change

​

​

​

​

​

​

​

​

​

​

​

​

​

Americas Welding

​

​

​

​

(4.2)

%

​

7.2

%

​

3.4

%

​

(0.2)

%

​

6.2

%

International Welding

​

​

​

(5.1)

%

​

0.3

%

​

2.2

%

​

2.3

%

​

(0.3)

%

The Harris Products Group

​

​

​

​

1.5

%

​

11.6

%

​

—

​

​

0.3

%

​

13.4

%

Consolidated

​

​

​

(3.7)

%

​

6.2

%

​

2.7

%

​

0.4

%

​

5.6

%

​

FAQ

How did Lincoln Electric (LECO) perform financially in full year 2025?

Lincoln Electric delivered higher sales and earnings in 2025. Net sales rose 5.6% to $4,233.0 million, while diluted EPS increased to $9.32 from $8.15. Adjusted EPS improved to $9.87, supported by stronger operating income and stable adjusted margins.

What were Lincoln Electric’s fourth quarter 2025 results?

In Q4 2025, Lincoln Electric’s net sales grew 5.5% to $1,078.7 million, with organic sales up 2.5%. Diluted EPS was $2.45, compared with $2.47 a year earlier, while adjusted EPS increased to $2.65 from $2.57, reflecting improved underlying earnings.

How strong were Lincoln Electric’s profit margins in 2025?

Profitability strengthened in 2025. Operating income reached $718.1 million, lifting the operating margin to 17.0% from 15.9%. Adjusted operating income was $743.0 million, maintaining an adjusted margin of 17.6%, showing consistent operating efficiency year over year.

What non-GAAP measures does Lincoln Electric highlight for 2025?

Lincoln Electric emphasizes non-GAAP metrics such as adjusted operating income, adjusted net income, adjusted EPS, and adjusted EBIT. For 2025, adjusted net income was $551.3 million and adjusted EBIT was $752.6 million, excluding items like rationalization charges and acquisition costs.

How much cash did Lincoln Electric generate and return to shareholders in 2025?

Lincoln Electric generated strong cash in 2025, with net cash provided by operating activities of $661.2 million and free cash flow of $534.2 million. The company returned $507 million to shareholders via dividends and share repurchases, while also funding significant capital expenditures.

What does Lincoln Electric’s 2025 balance sheet look like?

At December 31, 2025, Lincoln Electric reported $3,777.6 million in total assets, cash and equivalents of $308.8 million, and total equity of $1,469.8 million. Total debt was $1,294.0 million, resulting in a total debt to invested capital ratio of 46.8%.

How did Lincoln Electric’s segments contribute to 2025 sales growth?

In 2025, consolidated net sales rose to $4,233.0 million, with Americas Welding reaching $2,723.6 million, International Welding $930.9 million, and The Harris Products Group $578.6 million. Growth was driven by volume, pricing, and acquisitions, varying by segment and region.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 1.2 MB

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