LECO 10-Q Quarterly Report June 30, 2025

LINCOLN ELECTRIC HOLDINGS INC

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LINCOLN ELECTRIC HOLDINGS INC_June 30, 2025

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File Number: 0-1402

LINCOLN ELECTRIC HOLDINGS, INC.

(Exact name of registrant as specified in its charter)


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

22801 St. Clair Avenue , Cleveland , Ohio		44117
(Address of principal executive offices)		(Zip Code)

( 216 ) 481-8100

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ⌧ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ⌧ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “small reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ⌧

The number of shares outstanding of the registrant’s common shares as of June 30, 2025 was 55,186,252 .

Table of Contents

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION		3
Item 1. Financial Statements		3
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)		3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)		4
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)		5
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)		6
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)		8
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS		9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		23
Item 3. Quantitative and Qualitative Disclosures About Market Risk		33
Item 4. Controls and Procedures		33

PART II. OTHER INFORMATION		33
Item 1. Legal Proceedings		33
Item 1A. Risk Factors		33
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		34
Item 4. Mine Safety Disclosures		34
Item 5. Other Information		34
Item 6. Exhibits		35
Signatures		36

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LINCOLN ELECTRIC HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(In thousands, except per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net sales (Note 2)	$	1,088,673	$	1,021,683	$	2,093,061	$	2,002,880
Cost of goods sold		683,126		637,870		1,322,066		1,250,668
Gross profit		405,547		383,813		770,995		752,212
Selling, general & administrative expenses		210,861		208,485		407,526		407,232
Rationalization and asset impairment net charges (Note 6)		2,542		26,490		6,407		31,095
Operating income		192,144		148,838		357,062		313,885
Interest expense, net		12,619		10,661		24,746		19,440
Other income (expense)		4,034		( 1,553 )		4,478		709
Income before income taxes		183,559		136,624		336,794		295,154
Income taxes (Note 11)		40,163		34,916		74,911		70,031
Net income	$	143,396	$	101,708	$	261,883	$	225,123

Basic earnings per share (Note 3)	$	2.58	$	1.79	$	4.69	$	3.96
Diluted earnings per share (Note 3)	$	2.56	$	1.77	$	4.66	$	3.91
Cash dividends declared per share	$	0.75	$	0.71	$	1.50	$	1.42

See notes to these consolidated financial statements.

Table of Contents

LINCOLN ELECTRIC HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

(In thousands)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	143,396	$	101,708	$	261,883	$	225,123
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges		173		( 2,761 )		1,002		954
Defined benefit pension plan activity		( 37 )		6		( 1,322 )		79
Currency translation adjustment		60,119		( 7,696 )		89,798		( 21,091 )
Other comprehensive income (loss):		60,255		( 10,451 )		89,478		( 20,058 )
Comprehensive income	$	203,651	$	91,257	$	351,361	$	205,065

See notes to these consolidated financial statements.

Table of Contents

LINCOLN ELECTRIC HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)


	June 30, 2025		December 31, 2024
	(UNAUDITED)		(NOTE 1)
ASSETS
Current Assets
Cash and cash equivalents	$	299,481	$	377,262
Accounts receivable (less allowance for doubtful accounts of $ 14,395 in 2025; $ 12,674 in 2024)		554,277		481,979
Inventories (Note 8)		621,440		544,037
Other current assets		250,028		242,003
Total Current Assets		1,725,226		1,645,281
Property, plant and equipment (less accumulated depreciation of $ 917,968 in 2025; $ 865,634 in 2024)		660,672		619,181
Goodwill		829,483		804,927
Other assets		511,988		450,753
TOTAL ASSETS	$	3,727,369	$	3,520,142
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt (Note 10)	$	105,323	$	110,524
Trade accounts payable		375,833		296,590
Accrued employee compensation and benefits		167,471		104,374
Other current liabilities		376,612		367,314
Total Current Liabilities		1,025,239		878,802
Long-term debt, less current portion (Note 10)		1,150,395		1,150,551
Other liabilities		172,122		163,356
Total Liabilities		2,347,756		2,192,709
Shareholders' Equity
Common shares, without par value - at stated capital amount; authorized 240,000,000 shares; issued 98,581,434 shares in 2025 and 2024; outstanding 55,186,252 shares in 2025 and 56,211,219 in 2024		9,858		9,858
Additional paid-in capital		586,234		566,740
Retained earnings		4,168,467		3,993,016
Accumulated other comprehensive loss		( 210,657 )		( 300,135 )
Treasury shares, at cost - 43,395,182 shares in 2025 and 42,370,215 shares in 2024		( 3,174,289 )		( 2,942,046 )
Total Equity		1,379,613		1,327,433
TOTAL LIABILITIES AND TOTAL EQUITY	$	3,727,369	$	3,520,142

See notes to these consolidated financial statements.

Table of Contents

LINCOLN ELECTRIC HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(UNAUDITED)

(In thousands, except per share amounts)


								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-In		Retained		Comprehensive		Treasury
	Outstanding	Shares		Capital		Earnings		Income (Loss)		Shares		Total
Balance at December 31, 2024	56,211	$	9,858	$	566,740	$	3,993,016	$	( 300,135 )	$	( 2,942,046 )	$	1,327,433
Net income							118,487						118,487
Defined benefit pension plan activity, net of tax									( 1,285 )				( 1,285 )
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax									829				829
Currency translation adjustment, net of tax									29,679				29,679
Cash dividends declared - $ 0.75 per share							( 42,073 )						( 42,073 )
Stock-based compensation activity	157				13,105						1,501		14,606
Purchase of shares for treasury	( 542 )										( 106,694 )		( 106,694 )
Other					1,405		( 2,217 )						( 812 )
Balance at March 31, 2025	55,826	$	9,858	$	581,250	$	4,067,213	$	( 270,912 )	$	( 3,047,239 )	$	1,340,170
Net income							143,396						143,396
Defined benefit pension plan activity, net of tax									( 37 )				( 37 )
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax									173				173
Currency translation adjustment, net of tax									60,119				60,119
Cash dividends declared – $ 0.75 per share							( 41,080 )						( 41,080 )
Stock-based compensation activity	8				3,985						80		4,065
Purchase of shares for treasury	( 648 )										( 127,130 )		( 127,130 )
Other					999		( 1,062 )						( 63 )
Balance at June 30, 2025	55,186	$	9,858	$	586,234	$	4,168,467	$	( 210,657 )	$	( 3,174,289 )	$	1,379,613

Table of Contents

LINCOLN ELECTRIC HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(UNAUDITED)

(In thousands, except per share amounts)


								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-In		Retained		Comprehensive		Treasury
	Outstanding	Shares		Capital		Earnings		Income (Loss)		Shares		Total
Balance at December 31, 2023	56,977	$	9,858	$	523,357	$	3,688,038	$	( 229,847 )	$	( 2,682,554 )	$	1,308,852
Net income							123,415						123,415
Defined benefit pension plan activity, net of tax									73				73
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax									3,715				3,715
Currency translation adjustment, net of tax									( 13,395 )				( 13,395 )
Cash dividends declared – $ 0.71 per share							( 41,273 )						( 41,273 )
Stock-based compensation activity	397				34,981						3,647		38,628
Purchase of shares for treasury	( 466 )										( 110,405 )		( 110,405 )
Other					2,101		( 3,883 )						( 1,782 )
Balance at March 31, 2024	56,908	$	9,858	$	560,439	$	3,766,297	$	( 239,454 )	$	( 2,789,312 )	$	1,307,828
Net income							101,708						101,708
Defined benefit pension plan activity, net of tax									6				6
Unrealized loss on derivatives designated and qualifying as cash flow hedges, net of tax									( 2,761 )				( 2,761 )
Currency translation adjustment, net of tax									( 7,696 )				( 7,696 )
Cash dividends declared – $ 0.71 per share							( 40,236 )						( 40,236 )
Stock-based compensation activity	9				4,646						86		4,732
Purchase of shares for treasury	( 242 )										( 50,415 )		( 50,415 )
Other					( 5,758 )		5,498						( 260 )
Balance at June 30, 2024	56,675	$	9,858	$	559,327	$	3,833,267	$	( 249,905 )	$	( 2,839,641 )	$	1,312,906

Table of Contents

LINCOLN ELECTRIC HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(In thousands)


	Six Months Ended June 30,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	261,883	$	225,123
Adjustments to reconcile Net income to Net cash provided by operating activities:
Rationalization and asset impairment net charges		675		23,751
Depreciation and amortization		48,246		42,451
Deferred income taxes		( 26,342 )		( 3,864 )
Stock-based compensation		12,277		18,379
Other, net		( 854 )		2,020
Changes in operating assets and liabilities, net of effects from acquisitions:
Increase in accounts receivable		( 52,208 )		( 14,484 )
Increase in inventories		( 47,648 )		( 27,626 )
Increase in other current assets		( 3,408 )		( 5,153 )
Increase in trade accounts payable		68,092		28,956
Increase (decrease) in other current liabilities		68,579		( 5,092 )
Net change in other assets and liabilities		229		19,520
NET CASH PROVIDED BY OPERATING ACTIVITIES		329,521		303,981
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		( 52,392 )		( 49,395 )
Acquisition of businesses, net of cash acquired		( 32,309 )		( 152,654 )
Proceeds from sale of property, plant and equipment		5,231		1,303
NET CASH USED BY INVESTING ACTIVITIES		( 79,470 )		( 200,746 )
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on short-term borrowings		( 5,206 )		( 578 )
Proceeds from long-term borrowings		—		400,000
Payments on long-term borrowings		( 169 )		( 400,339 )
Proceeds from exercise of stock options		6,394		24,981
Purchase of shares for treasury		( 233,824 )		( 160,820 )
Cash dividends paid to shareholders		( 84,904 )		( 81,696 )
NET CASH USED BY FINANCING ACTIVITIES		( 317,709 )		( 218,452 )
Effect of exchange rate changes on Cash and cash equivalents		( 10,123 )		( 5,898 )
DECREASE IN CASH AND CASH EQUIVALENTS		( 77,781 )		( 121,115 )

Cash and cash equivalents at beginning of period		377,262		393,787
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	299,481	$	272,672

See notes to these consolidated financial statements.

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LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Dollars in thousands, except per share amounts

NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements include the accounts of Lincoln Electric Holdings, Inc. and its wholly-owned and majority-owned subsidiaries for which it has a controlling interest (the “Company”) after elimination of all inter-company accounts, transactions and profits.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. However, in the opinion of management, these unaudited consolidated financial statements contain all the adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position, results of operations and cash flows for the interim periods. Operating results for the six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025.

The accompanying Condensed Consolidated Balance Sheet at December 31, 2024 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Certain reclassifications have been made to the prior period amounts to conform to the current period presentation, none of which are material.

New Accounting Pronouncements:

This section provides a description of new accounting pronouncements (“Accounting Standards Updates” or “ASUs”) issued by the Financial Accounting Standards Board (“FASB”) that are applicable to the Company.

The following ASUs were adopted as of January 1, 2025:

Standard		Description
ASU No. 2023-09, Income Taxes (Topic 740), issued December 2023.		Requires disclosure of specific categories in rate reconciliation and additional information for reconciling items that meet a quantitative threshold, additional information about income taxes paid, and disclosure of disaggregated income tax information. The Company will adopt the required disclosures for the 2025 annual period.

Table of Contents

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

The Company is currently evaluating the impact on its financial statements of the following ASUs:


Standard		Description
ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures, issued November 2024		Requires enhanced disclosures of specified information about certain costs and expenses. The amendments are effective for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028. Early adoption is permitted.
ASU No. 2023-06, Disclosure Improvement s , issued October 2023		Requires amending certain disclosure and presentation requirements for a variety of topics within the ASC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or S-K becomes effective, or June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited.

NOTE 2 — REVENUE RECOGNITION

The following table presents the Company’s Net sales disaggregated by product line:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Consumables	$	594,646	$	546,421	$	1,115,249	$	1,074,159
Equipment		494,027		475,262		977,812		928,721
Net sales	$	1,088,673	$	1,021,683	$	2,093,061	$	2,002,880

Consumable sales consist of welding, brazing and soldering filler metals. Equipment sales consist of arc welding equipment, welding accessories, wire feeding systems, fume control equipment, plasma and oxy-fuel cutting systems, specialty gas regulators, and education solutions; as well as a comprehensive portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing. Consumable and Equipment products are sold within each of the Company’s operating segments.

Within the Equipment product line, there are certain customer contracts related to automation products that may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines the standalone selling price based on the prices charged to customers or using expected cost plus margin. Approximately 10 % of the Company’s Net sales are recognized over time.

At June 30, 2025, the Company recorded $ 46,861 related to advance customer payments and $ 49,384 related to billings in excess of revenue recognized. These contract liabilities are included in Other current liabilities in the Condensed Consolidated Balance Sheets. At December 31, 2024, the balances related to advance customer payments and billings in excess of revenue recognized were $ 63,473 and $ 57,960 , respectively. Substantially all of the Company’s contract liabilities are recognized within twelve months based on contract duration. The Company records an asset for contracts where it has recognized revenue, but has not yet invoiced the customer for goods or services. At June 30, 2025 and December 31, 2024, the Company recorded $ 98,319 and $ 81,781 , respectively, related to these contract assets which are included in Other current assets in the Condensed Consolidated Balance Sheets. Contract asset amounts are expected to be billed within the next twelve months.

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LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

NOTE 3 — EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Numerator:
Net income	$	143,396	$	101,708	$	261,883	$	225,123
Denominator (shares in 000's):
Basic weighted average shares outstanding		55,545		56,816		55,801		56,841
Effect of dilutive securities - Stock options and awards		423		550		441		664
Diluted weighted average shares outstanding		55,968		57,366		56,242		57,505
Basic earnings per share	$	2.58	$	1.79	$	4.69	$	3.96
Diluted earnings per share	$	2.56	$	1.77	$	4.66	$	3.91

For the three months ended June 30, 2025 and 2024, common shares subject to equity-based awards of 27,376 and 25,472 , respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. For the six months ended June 30, 2025 and 2024, common shares subject to equity-based awards of 33,692 and 18,008 , respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.

NOTE 4 — ACQUISITIONS

On April 1, 2025, the Company acquired a 35 % ownership interest of Alloy Steel Australia (Int) Pty Ltd. (“Alloy Steel”), a privately held manufacturer of maintenance and repair solutions, for an agreed upon purchase price of approximately $ 45,000 . Subsequent to June 30, 2025, the Company entered into an agreement to acquire the remaining 65 % of Alloy Steel for approximately $ 90,000 , which is expected to close on August 1, 2025, subject to the satisfaction of customary closing conditions. Alloy Steel supplies proprietary technology, engineering services and digital monitoring to the mining sector.

The acquired companies discussed below are accounted for as business combinations and are included in the consolidated financial statements as of the date of acquisition. The acquired companies are not material individually, or in the aggregate, to the actual or pro forma Consolidated Statements of Income or Consolidated Statements of Cash Flows; as such, pro forma information related to these acquisitions has not been presented.

On July 30, 2024, the Company acquired 100 % ownership of Vanair Manufacturing, LLC (“Vanair”), a privately held, Michigan City, Indiana-based, manufacturer for a total purchase price of $ 108,651 , net of cash acquired and certain debt-like items. Vanair offers a comprehensive portfolio of mobile power solutions, including vehicle-mounted compressors, generators, welders, hydraulics, chargers/boosters and electrified power equipment.

On June 3, 2024, the Company acquired 100 % ownership of Inrotech A/S (“Inrotech”), a privately held automation system integration and technology firm headquartered in Odense, Denmark. The purchase price was $ 42,352 , net of cash acquired. Inrotech specializes in automated welding systems that are differentiated by proprietary adaptive intelligence software and computer vision which guides and optimizes the welding process without the need for programming or the use of computer aided design files. The state-of-the-art vision-based technology is used in the shipbuilding, energy, and heavy industry sectors, where welding accessibility can be challenging for traditional automated systems, but precision and quality are mission critical.

On April 1, 2024, the Company acquired 100 % ownership of Superior Controls, LLC (“RedViking”), a privately held automation system integrator based in Plymouth, Michigan. The purchase price was $ 107,447 , net of cash acquired.

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RedViking specializes in the development and integration of state-of-the-art autonomous guided vehicles and mobile robots, custom assembly and dynamic test systems, and proprietary manufacturing execution system software.

The Company recognized acquisition costs of $ 429 and $ 1,231 during the three and six months ended June 30, 2025, respectively, and $ 2,182 and $ 3,944 during the three and six months ended June 30, 2024, respectively. Acquisition costs are included in Selling, general & administrative expenses on the Consolidated Statements of Income and are expensed as incurred.

NOTE 5 — SEGMENT INFORMATION

The Company’s primary business is the design, development and manufacture of arc welding products, automated joining, assembly and cutting systems, plasma and oxy-fuel cutting equipment. The Company also has a leading global position in brazing and soldering alloys.

The Company’s products include arc welding, brazing and soldering filler metals (consumables), arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, and education solutions; as well as a comprehensive portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing.

The Company has aligned its organizational and leadership structure into three operating segments to support growth strategies and enhance the utilization of the Company’s worldwide resources and global sourcing initiatives. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global cutting, soldering and brazing businesses, specialty gas equipment, as well as its retail business in the United States.

Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the adjusted earnings before interest and income taxes ("Adjusted EBIT") profit measure. EBIT is defined as Operating income plus Other income. Segment EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM uses segment Adjusted EBIT to allocate resources for each segment predominantly in establishing the Company’s long-term strategy and in developing the annual budget. The CODM considers actual performance using Adjusted EBIT when making decisions about allocating capital and resources to the segments.

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The following table presents Adjusted EBIT by segment:


					The Harris
	Americas		International		Products		Corporate /
	Welding		Welding		Group		Eliminations		Consolidated
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		740,121		240,465		164,229		( 56,142 )		1,088,673
Cost of goods sold		449,197		170,287		117,975		( 54,333 )		683,126
Other segment expenses ⁽³⁾		153,914		41,179		14,456		( 180 )		209,369
EBIT		137,010		28,999		31,798		( 1,629 )		196,178
Special items charge ⁽¹⁾		905		1,551		86		429		2,971
Adjusted EBIT	$	137,915	$	30,550	$	31,884	$	( 1,200 )	$	199,149
Special items charge ⁽¹⁾										( 2,971 )
Interest income										1,662
Interest expense										( 14,281 )
Income before income taxes									$	183,559

Total assets	$	2,469,216	$	1,159,578	$	422,559	$	( 323,984 )	$	3,727,369
Capital expenditures		19,972		4,609		862		—		25,443
Depreciation and amortization		17,139		5,485		2,598		( 760 )		24,462

Three Months Ended June 30, 2024
Net sales	$	648,936	$	238,758	$	133,989	$	—	$	1,021,683
Inter-segment sales		37,800		8,849		3,272		( 49,921 )		—
Total		686,736		247,607		137,261		( 49,921 )		1,021,683
Cost of goods sold		410,892		177,897		97,113		( 48,032 )		637,870
Other segment expenses ⁽³⁾		139,547		75,235		15,085		6,661		236,528
EBIT		136,297		( 5,525 )		25,063		( 8,550 )		147,285
Special items charge ⁽²⁾		354		31,234		( 140 )		2,286		33,734
Adjusted EBIT	$	136,651	$	25,709	$	24,923	$	( 6,264 )	$	181,019
Special items charge ⁽²⁾										( 33,734 )
Interest income										1,972
Interest expense										( 12,633 )
Income before income taxes									$	136,624

Total assets	$	2,338,883	$	1,035,871	$	363,787	$	( 323,292 )	$	3,415,249
Capital expenditures		18,276		3,869		994		—		23,139
Depreciation and amortization		13,258		5,197		2,565		( 155 )		20,865

(1)

In the three months ended June 30, 2025, special items primarily include Rationalization and asset impairment net charges of $ 905 , $ 1,551 and $ 86 in Americas Welding, International Welding and The Harris Products Group, respectively, as discussed in Note 6 and Acquisition transaction costs of $ 429 in Corporate/Eliminations.

(2)

In the three months ended June 30, 2024, special items include Rationalization and asset impairment net charges of $ 26,284 in International Welding, primarily due to the impact of the Company’s disposition of its Russian entity, as discussed in Note 6, a loss on asset disposal of $ 4,950 recorded to Other income (expense) in International Welding and acquisition transaction costs of $ 2,182 in Corporate/Eliminations.

(3)

Other segment expenses primarily include:

Selling, general & administrative expenses – including bonus and research and development expenses.

Rationalization and asset impairment net charges – refer to Note 6 for further discussion.

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					The Harris
	Americas		International		Products		Corporate /
	Welding		Welding		Group		Eliminations		Consolidated
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		1,423,600		466,358		300,433		( 97,330 )		2,093,061
Cost of goods sold		866,897		333,729		215,948		( 94,508 )		1,322,066
Other segment expenses ⁽³⁾		297,630		82,030		28,536		1,259		409,455
EBIT		259,073		50,599		55,949		( 4,081 )		361,540
Special items charge ⁽¹⁾		3,040		2,963		264		1,231		7,498
Adjusted EBIT	$	262,113	$	53,562	$	56,213	$	( 2,850 )	$	369,038
Special items charge ⁽¹⁾										( 7,498 )
Interest income										3,917
Interest expense										( 28,663 )
Income before income taxes									$	336,794

Total assets	$	2,469,216	$	1,159,578	$	422,559	$	( 323,984 )	$	3,727,369
Capital expenditures		41,738		8,216		2,438		—		52,392
Depreciation and amortization		33,253		10,863		5,261		( 1,131 )		48,246

Six Months Ended June 30, 2024
Net sales	$	1,273,035	$	474,519	$	255,326	$	—	$	2,002,880
Inter-segment sales		67,778		17,257		6,365		( 91,400 )		—
Total		1,340,813		491,776		261,691		( 91,400 )		2,002,880
Cost of goods sold		799,497		352,945		187,843		( 89,617 )		1,250,668
Other segment expenses ⁽³⁾		268,920		119,649		30,442		18,607		437,618
EBIT		272,396		19,182		43,406		( 20,390 )		314,594
Special items charge ⁽²⁾		354		34,304		1,396		4,047		40,101
Adjusted EBIT	$	272,750	$	53,486	$	44,802	$	( 16,343 )	$	354,695
Special items charge ⁽²⁾										( 40,101 )
Interest income										5,193
Interest expense										( 24,633 )
Income before income taxes									$	295,154

Total assets	$	2,338,883	$	1,035,871	$	363,787	$	( 323,292 )	$	3,415,249
Capital expenditures		40,130		7,292		1,973		—		49,395
Depreciation and amortization		27,344		10,510		4,991		( 394 )		42,451

(1)

In the six months ended June 30, 2025, special items primarily include Rationalization and asset impairment net charges of $ 3,040 , $ 3,103 and $ 264 in Americas Welding, International Welding and The Harris Products Group, respectively, as discussed in Note 6 and Acquisition transaction costs of $ 1,231 in Corporate/Eliminations.

(2)

In the six months ended June 30, 2024, special items include Rationalization and asset impairment net charges of $ 29,354 in International Welding , primarily due to the impact of the Company’s disposition of its Russian entity, and $ 1,396 in The Harris Products Group, as discussed in Note 6, a loss on asset disposal of $ 4,950 recorded to Other income (expense) in International Welding and acquisition transaction costs of $ 3,944 in Corporate/Eliminations.

(3)

Other segment expenses primarily include:

Selling, general & administrative expenses – including bonus and research and development expenses.

Rationalization and asset impairment net charges – refer to Note 6 for further discussion .

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NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS

The Company has rationalization plans within all three of its reportable segments. The plans impacted headcount and included the consolidation of manufacturing facilities to better align with the cost structure, economic conditions and operating needs of the business. As a result of these plans, in the six months ended June 30, 2025, the Company recorded Rationalization and asset impairment net charges of $ 3,040 in Americas Welding, $ 3,103 in International Welding and $ 264 in The Harris Products Group. In the six months ended June 30, 2024, the Company recorded Rationalization and asset impairment net charges of $ 29,354 in International Welding, of which $ 22,566 is associated with the disposal of the Company’s Russian entity. In addition, the Company incurred Rationalization and asset impairment net charges of $ 1,396 in The Harris Products Group in the six months ended June 30, 2024.

At June 30, 2025 and December 31, 2024, rationalization liabilities of $ 6,416 and $ 14,146 , respectively, were recognized in Other current liabilities in the Company’s Condensed Consolidated Balance Sheet. The Company does not anticipate significant additional charges related to the completion of these plans.

The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital. The Company continues to evaluate its cost structure and additional rationalization actions may result in charges in future periods.

The following table summarizes the activity related to rationalization liabilities for the six months ended June 30, 2025:


	Americas		International		The Harris Products
	Welding		Welding		Group		Consolidated
Balance at December 31, 2024	$	5,628	$	7,562	$	956	$	14,146
Payments and other adjustments		( 7,935 )		( 4,410 )		( 1,117 )		( 13,462 )
Charged to expense		3,040		2,428		264		5,732
Balance at June 30, 2025	$	733	$	5,580	$	103	$	6,416

NOTE 7 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ("AOCI")

The following tables set forth the total changes in AOCI by component, net of taxes:


	Three Months Ended June 30, 2025
	Unrealized gain
	(loss) on derivatives
	designated and		Defined benefit		Currency
	qualifying as cash		pension plan		translation
	flow hedges		activity		adjustment		Total
Balance at March 31, 2025	$	18,084	$	( 2,333 )	$	( 286,663 )	$	( 270,912 )
Other comprehensive income before reclassification		957		—		60,119		61,076
Amounts reclassified from AOCI		( 784 )		( 37 )		—		( 821 )
Net current-period other comprehensive income (loss)		173		( 37 )		60,119		60,255
Balance at June 30, 2025	$	18,257	$	( 2,370 )	$	( 226,544 )	$	( 210,657 )

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	Three Months Ended June 30, 2024
	Unrealized gain
	(loss) on derivatives
	designated and		Defined benefit		Currency
	qualifying as cash		pension plan		translation
	flow hedges		activity		adjustment		Total
Balance at March 31, 2024	$	20,251	$	( 1,923 )	$	( 257,782 )	$	( 239,454 )
Other comprehensive loss before reclassification		( 2,175 )		—		( 7,696 )		( 9,871 )
Amounts reclassified from AOCI		( 586 )		6		—		( 580 )
Net current-period other comprehensive (loss) income		( 2,761 )		6		( 7,696 )		( 10,451 )
Balance at June 30, 2024	$	17,490	$	( 1,917 )	$	( 265,478 )	$	( 249,905 )


	Six Months Ended June 30, 2025
	Unrealized gain
	(loss) on derivatives
	designated and		Defined benefit		Currency
	qualifying as cash		pension plan		translation
	flow hedges		activity		adjustment		Total
Balance at December 31, 2024	$	17,255	$	( 1,048 )	$	( 316,342 )	$	( 300,135 )
Other comprehensive income before reclassification		2,105		—		89,798		91,903
Amounts reclassified from AOCI		( 1,103 )		( 1,322 )		—		( 2,425 )
Net current-period other comprehensive income (loss)		1,002		( 1,322 )		89,798		89,478
Balance at June 30, 2025	$	18,257	$	( 2,370 )	$	( 226,544 )	$	( 210,657 )


	Six Months Ended June 30, 2024
	Unrealized gain
	(loss) on derivatives
	designated and		Defined benefit		Currency
	qualifying as cash		pension plan		translation
	flow hedges		activity		adjustment		Total
Balance at December 31, 2023	$	16,536	$	( 1,996 )	$	( 244,387 )	$	( 229,847 )
Other comprehensive income (loss) before reclassification		2,353		—		( 21,091 )		( 18,738 )
Amounts reclassified from AOCI		( 1,399 )		79		—		( 1,320 )
Net current-period other comprehensive income (loss)		954		79		( 21,091 )		( 20,058 )
Balance at June 30, 2024	$	17,490	$	( 1,917 )	$	( 265,478 )	$	( 249,905 )

NOTE 8 — INVENTORIES

Inventories in the Condensed Consolidated Balance Sheets are comprised of the following components:



	June 30, 2025		December 31, 2024
Raw materials	$	159,154	$	153,596
Work-in-process		131,368		123,406
Finished goods		330,918		267,035
Total	$	621,440	$	544,037

At both June 30, 2025 and December 31, 2024, approximately 35 % of total inventories were valued using the last-in, first-out ("LIFO") method. The excess of current cost over LIFO cost was $ 130,917 and $ 120,633 at June 30, 2025 and December 31, 2024, respectively.

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NOTE 9 — LEASES

The table below summarizes the right-of-use assets and lease liabilities in the Company’s Condensed Consolidated Balance sheets:


Operating Leases	Balance Sheet Classification	June 30, 2025		December 31, 2024
Right-of-use assets	Other assets	$	53,206	$	54,276

Current liabilities	Other current liabilities	$	13,399	$	13,110
Noncurrent liabilities	Other liabilities		40,557		42,124
Total lease liabilities		$	53,956	$	55,234

Total lease expense, which is included in Cost of goods sold and Selling, general & administrative expenses in the Company’s Consolidated Statements of Income, was $ 6,444 and $ 12,334 in the three and six months ended June 30, 2025 and $ 6,572 and $ 12,733 in the three and six months ended June 30, 2024, respectively. Cash paid for amounts included in the measurement of lease liabilities for the three and six months ended June 30, 2025, respectively, were $ 3,990 and $ 6,542 and are included in Net cash provided by operating activities in the Company’s Consolidated Statements of Cash Flows. Cash paid for amounts included in the measurement of lease liabilities for the three and six months ended June 30, 2024, respectively, were $ 4,098 and $ 8,147 and are included in Net cash provided by operating activities in the Company’s Consolidated Statements of Cash Flows. Right-of-use assets obtained in exchange for operating lease liabilities were $ 4,399 and $ 4,653 during the three and six months ended June 30, 2025 and $ 7,071 and $ 10,617 during the three and six months ended June 30, 2024, respectively.

The total future minimum lease payments for noncancelable operating leases were as follows:


	June 30, 2025
2025	$	9,120
2026		13,635
2027		10,932
2028		9,050
2029		6,250
After 2029		12,300
Total lease payments	$	61,287
Less: Imputed interest		7,331
Operating lease liabilities	$	53,956

As of June 30, 2025 the weighted average remaining lease term is 6.2 years and the weighted average discount rate used to determine the operating lease liability is 3.6 %.

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N OTE 10 — DEBT

At June 30, 2025 and December 31, 2024, debt consisted of the following:



			June 30, 2025		December 31, 2024
Long-term debt	Interest Rate
Senior Unsecured Notes
2015 Notes - Series A due August 20, 2025	3.15	%	$	100,000	$	100,000
2015 Notes - Series B due August 20, 2030	3.35	%		100,000		100,000
2015 Notes - Series C due April 1, 2035	3.61	%		50,000		50,000
2015 Notes - Series D due April 1, 2045	4.02	%		100,000		100,000
2016 Notes - Series A due October 20, 2028	2.75	%		100,000		100,000
2016 Notes - Series B due October 20, 2033	3.03	%		100,000		100,000
2016 Notes - Series C due October 20, 2037	3.27	%		100,000		100,000
2016 Notes - Series D due October 20, 2041	3.52	%		50,000		50,000
2024 Notes - Series A due August 22, 2029	5.55	%		75,000		75,000
2024 Notes - Series B due August 22, 2031	5.62	%		75,000		75,000
2024 Notes - Series C due June 20, 2034	5.74	%		400,000		400,000
Other borrowings due through 2030	Variable ⁽¹⁾			10		10
				1,250,010		1,250,010
Plus interest rate swap adjustment				3,016		3,355
Less current portion				100,004		100,004
Less debt issuance costs				2,627		2,810
Long-term debt, less current portion				1,150,395		1,150,551
Short-term debt
Amounts due to banks	Variable ⁽²⁾			5,319		10,520
Current portion long-term debt				100,004		100,004
Total short-term debt				105,323		110,524
Total debt			$	1,255,718	$	1,261,075

(1)

Interest rate was 7.97 % at both June 30, 2025 and December 31, 2024.

(2)

Weighted average interest rate of other borrowings related to liquidity needs in a hyperinflationary country was 48.2 % and 47.8 % as of June 30, 2025 and December 31, 2024, respectively.

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Senior Unsecured Notes

As of June 30, 2025, the Company’s total weighted average effective interest rate and remaining weighted average tenure of the senior unsecured notes is 4.08 %, including the impact from terminated swap agreements, and 8.5 years, respectively. The senior unsecured notes contain certain affirmative and negative covenants. As of June 30, 2025, the Company was in compliance with all of its debt covenants relating to the senior unsecured notes.

Revolving Credit Agreements

On June 20, 2024, the Company entered into a $ 1 billion revolving credit facility, which may be increased, subject to certain conditions including the consent of its lenders, by an additional amount up to $ 300,000 . The revolving credit facility matures on June 20, 2029. The revolving credit facility will initially bear interest on outstanding borrowings at a per annum rate equal to secured overnight finance rate (“ SOFR ”) plus 1.10 % and could fluctuate based on the Company’s total net leverage ratio at a spread ranging from SOFR plus 1.10 % to SOFR plus 1.60 %. The financial covenants consist of a maximum net leverage ratio of 3.5 x EBITDA and a minimum interest coverage ratio of 2.5 x EBITDA. The revolving credit facility contains customary representations and warranties, as well as customary affirmative, negative and financial covenants for credit facilities of this type (subject to negotiated baskets and exceptions), including limitations on the Company and its subsidiaries with respect to liens, investments, distributions, mergers and acquisitions, dispositions of assets and transactions with affiliates. As of June 30, 2025, the Company was in compliance with all of its covenants and had no outstanding borrowings under the revolving credit facility.

The Company has other lines of credit and debt agreements totaling $ 33,662 . As of June 30, 2025, the Company was in compliance with all of its covenants and had outstanding debt under short-term lines of credit of $ 5,319 .

Fair Value of Debt

At June 30, 2025 and December 31, 2024, the fair value of long-term debt, including the current portion, was approximately $ 1,209,952 and $ 1,184,313 , respectively. The approximate fair value of the Company’s long-term debt, including current maturities, was based on a valuation model using Level 2 observable inputs using available market information and methodologies requiring judgment. The carrying value of this debt at such dates was $ 1,250,399 and $ 1,250,555 , respectively. Since judgment is required in interpreting market information, the fair value of the debt is not necessarily the amount which could be realized in a current market exchange.

NOTE 11 — INCOME TAXES

The Company recognized $ 74,911 of tax expense on pre-tax income of $ 336,794 , resulting in an effective income tax rate of 22.2 % for the six months ended June 30, 2025. The effective income tax rate was 23.7 % for the six months ended June 30, 2024.

The effective tax rate was lower for the six months ended June 30, 2025, as compared with the same period in 2024, primarily due to mix of earnings and timing of discrete tax items.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is currently assessing the impact on its consolidated financial statements.

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NOTE 12 — DERIVATIVES

The Company uses derivative instruments to manage exposures to currency exchange rates, interest rates and commodity prices arising in the normal course of business. Both at inception and on an ongoing basis, the derivative instruments that qualify for hedge accounting are assessed as to their effectiveness, when applicable. Hedge ineffectiveness was immaterial in the three and six months ended June 30, 2025 and 2024.

The Company is subject to the credit risk of the counterparties to derivative instruments. Counterparties include a number of major banks and financial institutions. None of the concentrations of risk with any individual counterparty was considered significant at June 30, 2025. The Company does not expect any counterparties to fail to meet their obligations.

Cash Flow Hedges

Certain foreign currency forward contracts are qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $ 93,502 and $ 96,444 at June 30, 2025 and December 31, 2024, respectively.

The Company had interest rate forward starting swap agreements that were qualified and designated as cash flow hedges that were terminated during 2024. Upon termination of the contracts in 2024, the company had a gain of $ 25,852 recorded in AOCI that will be amortized to Interest expense, net over the life of the associated debt.

Net Investment Hedges

The Company has foreign currency forward contracts that qualify and are designated as net investment hedges. The dollar equivalent gross notional amount of these contracts was $ 380,099 and $ 319,450 at June 30, 2025 and December 31, 2024, respectively.

Derivatives Not Designated as Hedging Instruments

The Company has certain foreign exchange forward contracts that are not designated as hedges. These derivatives are held as economic hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $ 427,439 and $ 421,754 at June 30, 2025 and December 31, 2024, respectively.

Fair values of derivative instruments in the Company’s Condensed Consolidated Balance Sheets consisted of the following:


	June 30, 2025								December 31, 2024
	Other		Other						Other		Other
	Current		Current		Other		Other		Current		Current		Other		Other
Derivatives by hedge designation	Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
Designated as hedging instruments:
Foreign exchange contracts	$	2,926	$	1,388	$	—	$	—	$	1,663	$	2,972	$	—	$	—
Net investment contracts		—		32,040		—		—		10,276		—		—		—
Not designated as hedging instruments:
Foreign exchange contracts		5,142		1,993		—		—		1,560		4,251		—		—
Total derivatives	$	8,068	$	35,421	$	—	$	—	$	13,499	$	7,223	$	—	$	—

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LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following:


		Three Months Ended June 30,				Six Months Ended June 30,
Derivatives by hedge designation	Classification of gain (loss)	2025		2024		2025		2024
Not designated as hedges:
Foreign exchange contracts	Selling, general & administrative expenses	$	13,625	$	( 5,155 )	$	21,958	$	( 6,771 )

The effects of designated hedges on AOCI consisted of the following:



Total gain (loss) recognized in AOCI, net of tax	June 30, 2025		December 31, 2024
Foreign exchange contracts	$	970	$	( 812 )
Forward starting swap agreements		17,287		18,067
Net investment contracts		( 6,004 )		20,403

The Company expects a gain of $ 970 related to existing contracts to be reclassified from AOCI, net of tax, to earnings over the next 12 months as the hedged transactions are realized.

The effects of designated hedges on the Company’s Consolidated Statements of Income consisted of the following:


		Three Months Ended June 30,				Six Months Ended June 30,
	(Loss) gain recognized in the
Derivative type	Consolidated Statements of Income:	2025		2024		2025		2024
Foreign exchange contracts	Sales	$	378	$	447	$	( 335 )	$	1,286
	Cost of goods sold		182		251		543		484
Forward starting swap agreements	Interest expense, net		689		66		1,378		66

NOTE 13 - FAIR VALUE

The following table provides a summary of assets and liabilities as of June 30, 2025, measured at fair value on a recurring basis:


			Quoted Prices in
			Active Markets for
			Identical Assets or		Significant Other		Significant
	Balance as of		Liabilities		Observable Inputs		Unobservable
Description	June 30, 2025		(Level 1)		(Level 2)		Inputs (Level 3)
Assets:
Foreign exchange contracts	$	8,068	$	—	$	8,068	$	—
Pension surplus		21,327		21,327		—		—
Total assets	$	29,395	$	21,327	$	8,068	$	—
Liabilities:
Foreign exchange contracts	$	3,381	$	—	$	3,381	$	—
Net investment contracts		32,040		—		32,040		—
Deferred compensation		54,016		—		54,016		—
Total liabilities	$	89,437	$	—	$	89,437	$	—

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LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

The following table provides a summary of assets and liabilities as of December 31, 2024, measured at fair value on a recurring basis:


			Quoted Prices in
			Active Markets for
			Identical Assets or		Significant Other		Significant
	Balance as of		Liabilities		Observable Inputs		Unobservable
Description	December 31, 2024		(Level 1)		(Level 2)		Inputs (Level 3)
Assets:
Foreign exchange contracts	$	3,223	$	—	$	3,223	$	—
Net investment contracts		10,276		—		10,276		—
Pension Surplus		27,059		27,059		—		—
Total assets	$	40,558	$	27,059	$	13,499	$	—
Liabilities:
Foreign exchange contracts	$	7,223	$	—	$	7,223	$	—
Deferred compensation		55,425		—		55,425		—
Total liabilities	$	62,648	$	—	$	62,648	$	—

The fair value of the Company’s pension surplus assets are based on quoted market prices in active markets and are included in the Level 1 fair value hierarchy. The pension surplus assets were invested in money market and short-term duration bond funds at both June 30, 2025 and December 31, 2024.

The Company’s derivative contracts are valued at fair value using the market approach. The Company measures the fair value of foreign exchange contracts and net investment contracts using Level 2 inputs based on observable spot and forward rates in active markets.

The deferred compensation liability is the Company’s obligation under its executive deferred compensation plan. The Company measures the fair value of the liability using the market values of the participants’ underlying investment fund elections.

The fair value of Cash and cash equivalents, Accounts receivable, Short-term debt excluding the current portion of Long-term debt and Trade accounts payable approximated book value due to the short-term nature of these instruments at both June 30, 2025 and December 31, 2024.

The Company has various financial instruments, including cash and cash equivalents, short and long-term debt and forward contracts. While these financial instruments are subject to concentrations of credit risk, the Company has minimized this risk by entering into arrangements with a number of major banks and financial institutions and investing in several high-quality instruments. The Company does not expect any counterparties to fail to meet their obligations.

NOTE 14 – SUPPLIER FINANCING PROGRAM

The Company’s suppliers, at the supplier’s sole discretion, are able to factor receivables due from the Company to a financial institution on terms directly negotiated with the financial institution without affecting the Company’s balance sheet classification of the corresponding payable. The Company pays the financial institution the stated amount of the confirmed invoices from its designated suppliers on the original maturity dates of the invoices. At June 30, 2025 and December 31, 2024, Trade accounts payable included $ 36,865 and $ 29,164 , respectively, payable to suppliers that have elected to participate in the supplier financing program.

(1)

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Dollars in thousands, except per share amounts )

This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read together with the Company’s unaudited consolidated financial statements and other financial information included elsewhere in this Quarterly Report on Form 10-Q.

General

The Company is the world’s largest designer and manufacturer of arc welding and cutting products, manufacturing a broad line of arc welding equipment, consumable welding products and other welding and cutting products. Welding products include arc welding power sources, computer numerical control and plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, fume extraction equipment, consumable electrodes, fluxes, welding accessories and specialty welding consumables and fabrication. The Company’s product offering also includes oxy-fuel cutting systems and regulators and torches used in oxy-fuel welding, cutting and brazing. In addition, the Company has a leading global position in the brazing and soldering alloys market.

The Company’s products are sold globally. In the Americas, products are sold principally through industrial distributors, retailers and also directly to users of welding products. Outside of the Americas, the Company has an international sales organization comprised of Company employees and agents who sell products from the Company’s various manufacturing sites to distributors and product users.

The Company’s business units are aligned into three operating segments. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global oxy-fuel cutting, soldering and brazing businesses as well as its retail business in the United States.

In 2025, the U.S. government announced a series of tariffs on imported goods into the U.S., which prompted retaliatory actions from some of its trading partners. The Company has taken actions to address the impact of these initial trade policies and while the Company cannot predict the ultimate impact on its business, the Company will continue to monitor evolving trade negotiations to determine if additional measures are warranted.

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Results of Operations

The following table shows the Company’s results of operations:


	Three Months Ended June 30,
												Favorable (Unfavorable)
	2025						2024					2025 vs. 2024
	Amount			% of Sales			Amount			% of Sales		$			%
Net sales	$	1,088,673					$	1,021,683				$	66,990		6.6	%
Cost of goods sold		683,126						637,870					(45,256)		(7.1)	%
Gross profit		405,547			37.3	%		383,813		37.6	%		21,734		5.7	%
Selling, general & administrative expenses		210,861			19.4	%		208,485		20.4	%		(2,376)		(1.1)	%
Rationalization and asset impairment net charges		2,542			0.2	%		26,490		2.6	%		23,948		90.4	%
Operating income		192,144			17.6	%		148,838		14.6	%		43,306		29.1	%
Interest expense, net		12,619						10,661					(1,958)		(18.4)	%
Other income (expense)		4,034						(1,553)					5,587		359.8	%
Income before income taxes		183,559			16.9	%		136,624		13.4	%		46,935		34.4	%
Income taxes		40,163						34,916					(5,247)		(15.0)	%
Effective tax rate		21.9	%					25.6	%				3.7	%
Net income	$	143,396			13.2	%	$	101,708		10.0	%	$	41,688		41.0	%
Diluted earnings per share	$	2.56					$	1.77				$	0.79		44.6	%


	Six Months Ended June 30,
												Favorable (Unfavorable)
	2025						2024					2025 vs. 2024
	Amount			% of Sales			Amount			% of Sales		$			%
Net sales	$	2,093,061					$	2,002,880				$	90,181		4.5	%
Cost of goods sold		1,322,066						1,250,668					(71,398)		(5.7)	%
Gross profit		770,995			36.8	%		752,212		37.6	%		18,783		2.5	%
Selling, general & administrative expenses		407,526			19.5	%		407,232		20.3	%		(294)		(0.1)	%
Rationalization and asset impairment net charges		6,407			0.3	%		31,095		1.6	%		24,688		79.4	%
Operating income		357,062			17.1	%		313,885		15.7	%		43,177		13.8	%
Interest expense, net		24,746						19,440					(5,306)		(27.3)	%
Other income		4,478						709					3,769		531.6	%
Income before income taxes		336,794			16.1	%		295,154		14.7	%		41,640		14.1	%
Income taxes		74,911						70,031					(4,880)		(7.0)	%
Effective tax rate		22.2	%					23.7	%				1.5	%
Net income	$	261,883			12.5	%	$	225,123		11.2	%	$	36,760		16.3	%
Diluted earnings per share	$	4.66					$	3.91				$	0.75		19.2	%

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Net Sales:

The following table summarizes the impact of volume, acquisitions, price and foreign currency exchange rates on Net sales on a consolidated basis:


Three Months Ended June 30,			Change in Net Sales due to:
	Net Sales											Foreign			Net Sales
	2024		Volume			Price			Acquisitions			Exchange			2025
Lincoln Electric Holdings, Inc.	$	1,021,683	$	(23,847)		$	52,975		$	30,507		$	7,355		$	1,088,673
% Change
Lincoln Electric Holdings, Inc.				(2.3)	%		5.2	%		3.0	%		0.7	%		6.6	%


Six Months Ended June 30,			Change in Net Sales due to:
	Net Sales											Foreign			Net Sales
	2024		Volume			Acquisitions			Price			Exchange			2025
Lincoln Electric Holdings, Inc.	$	2,002,880	$	(61,448)		$	78,706		$	78,649		$	(5,726)		$	2,093,061
% Change
Lincoln Electric Holdings, Inc.				(3.1)	%		3.9	%		3.9	%		(0.2)	%		4.5	%

Net sales increased for the three and six months ended June 30, 2025 primarily due to an increase in organic sales and a benefit from acquisitions. The increase in organic sales for both the three and six months ended June 30, 2025 is driven by an increase in pricing primarily due to higher input costs, partially offset by lower volumes.

Gross Profit:

Gross profit as a percentage of sales decreased 0.3% for the three months ended June 30, 2025 as compared to the same 2024 period, driven by lower volumes offset by higher operational efficiencies. Gross profit as a percentage of sales decreased 0.8% for the six months ended June 30, 2025 as compared to the same 2024 period, driven by lower volumes partially offset by higher operational efficiencies. The three and six months ended June 30, 2025 includes last-in, first-out (“LIFO”) charges of $8,523 and $10,284, respectively, which are primarily due to rising input costs. This compares with a benefit of $2,244 and $2,774 in the comparable 2024 periods.

Selling, General & Administrative ("SG&A") Expenses:

SG&A expenses increased in the three and six months ended June 30, 2025 as compared to the same 2024 periods, primarily due to increase in employee costs and acquisitions, partially offset by effective cost management.

Operating Income:

Operating income as a percentage of sales was 17.6% for the three months ended June 30, 2025 as compared to 14.6% in the prior year period. Excluding special items, Operating income as a percentage of sales was 17.9% for the three months ended June 30, 2025 as compared to 17.4% in the prior year period. Operating income as a percentage of sales was 17.1% for the six months ended June 30, 2025 as compared to 15.7% in the prior year period. Excluding special items, Operating income as a percentage of sales, was 17.4% for both comparable periods. Refer to explanations above for additional details. Also refer to Non-GAAP Financial Measures for a reconciliation of Adjusted operating income.

Rationalization and Asset Impairment Net Charges:

Charges in 2025 relate to rationalization plans initiated within all three reportable segments . Charges in 2024 primarily relate to rationalization plans initiated within International Welding, including the impact of the Company’s disposition of its Russian entity. Refer to Note 6 to the consolidated financial statements for further information on the Company’s rationalization plans.

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Income Taxes:

The effective tax rate was lower for the three and six months ended June 30, 2025 as compared to the same periods in 2024, primarily due to mix of earnings and timing of discrete tax items.

Segment Results

The following table presents components of sales by segment:


Three Months Ended June 30,			Change in Net Sales due to:
	Net Sales											Foreign			Net Sales
	2024		Volume ⁽¹⁾			Price ⁽²⁾			Acquisitions ⁽³⁾			Exchange			2025
Operating Segments
Americas Welding	$	648,936	$	(22,346)		$	42,265		$	30,192		$	(2,317)		$	696,730
International Welding		238,758		(16,172)			852			315			9,071			232,824
The Harris Products Group		133,989		14,671			9,858			—			601			159,119

% Change
Americas Welding				(3.4)	%		6.5	%		4.7	%		(0.4)	%		7.4	%
International Welding				(6.8)	%		0.4	%		0.1	%		3.8	%		(2.5)	%
The Harris Products Group				11.0	%		7.4	%		—			0.4	%		18.8	%


Six Months Ended June 30,				Change in Net Sales due to:
	Net Sales											Foreign			Net Sales
	2024		Volume ⁽¹⁾			Price ⁽²⁾			Acquisitions ⁽³⁾			Exchange			2025
Operating Segments
Americas Welding	$	1,273,035	$	(47,086)		$	55,634		$	77,519		$	(9,265)		$	1,349,837
International Welding		474,519		(29,820)			1,680			1,130			4,376			451,885
The Harris Products Group		255,326		15,458			21,392			—			(837)			291,339

% Change
Americas Welding				(3.7)	%		4.4	%		6.1	%		(0.8)	%		6.0	%
International Welding				(6.3)	%		0.4	%		0.2	%		0.9	%		(4.8)	%
The Harris Products Group				6.1	%		8.4			—			(0.4)	%		14.1	%

(1)

Decrease for the three and six months ended June 30, 2025 for Americas Welding and International Welding due to lower volumes on equipment sales.

(2)

Increase for all the segments due to price actions taken in response to higher input costs.

(3)

Increase for Americas Welding and International Welding due to the acquisitions discussed in Note 4 to the consolidated financial statements.

Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the Adjusted EBIT profit measure. EBIT is defined as Operating income plus Other income (expense). EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.

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The following table presents Adjusted EBIT by segment:


							Favorable (Unfavorable)
	Three Months Ended June 30,						2025 vs. 2024
	2025			2024			$		%
Americas Welding:
Net sales	$	696,730		$	648,936		$	47,794	7.4	%
Inter-segment sales		43,391			37,800			5,591	14.8	%
Total Sales	$	740,121		$	686,736			53,385	7.8	%
Adjusted EBIT ⁽⁴⁾	$	137,915		$	136,651			1,264	0.9	%
As a percent of total sales ⁽¹⁾		18.6	%		19.9	%			(1.3)	%
International Welding:
Net sales	$	232,824		$	238,758			(5,934)	(2.5)	%
Inter-segment sales		7,641			8,849			(1,208)	(13.7)	%
Total Sales	$	240,465		$	247,607			(7,142)	(2.9)	%
Adjusted EBIT ⁽⁵⁾	$	30,550		$	25,709			4,841	18.8	%
As a percent of total sales ⁽²⁾		12.7	%		10.4	%			2.3	%
The Harris Products Group:
Net sales	$	159,119		$	133,989			25,130	18.8	%
Inter-segment sales		5,110			3,272			1,838	56.2	%
Total Sales	$	164,229		$	137,261			26,968	19.6	%
Adjusted EBIT ⁽⁶⁾	$	31,884		$	24,923			6,961	27.9	%
As a percent of total sales ⁽³⁾		19.4	%		18.2	%			1.2	%
Corporate / Eliminations:
Inter-segment sales	$	(56,142)		$	(49,921)			(6,221)	(12.5)	%
Adjusted EBIT ⁽⁷⁾		(1,200)			(6,264)			5,064	80.8	%
Consolidated:
Net sales	$	1,088,673		$	1,021,683			66,990	6.6	%
Net income	$	143,396		$	101,708			41,688	41.0	%
As a percent of total sales		13.2	%		10.0	%			3.2	%
Adjusted EBIT ⁽⁸⁾	$	199,149		$	181,019			18,130	10.0	%
As a percent of sales		18.3	%		17.7	%			0.6	%

(1)

Decrease for the three months ended June 30, 2025 as compared to June 30, 2024 primarily driven by the unfavorable impact of lower volumes and the impact of acquisitions.

(2)

Increase for the three months ended June 30, 2025 as compared to June 30, 2024 primarily reflects effective cost management and a favorable prior year comparison due to operational inefficiencies in 2024 which were not repeated in the current year.

(3)

Increase for the three months ended June 30, 2025 as compared to June 30, 2024 primarily reflects higher organic sales, effective cost management and operational improvements.

(4)

The three months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $905 as discussed in Note 6.

(5)

The three months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $1,551 as discussed in Note 6. The three months ended June 30, 2024 exclude Rationalization and asset impairment net charges of $26,284 primarily due to the impact of the Company’s disposition of its Russian entity as discussed in Note 6 and a loss on asset disposal of $4,950.

(6)

The three months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $86 as discussed in Note 6.

(7)

The three months ended June 30, 2025 exclude acquisition transaction costs of $429 as discussed in Note 4. The three months ended June 30, 2024 exclude acquisition transaction costs of $2,182.

(8)

See non-GAAP Financial Measures for a reconciliation of Net income as reported and Adjusted EBIT.

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							Favorable (Unfavorable)
	Six Months Ended June 30,						2025 vs. 2024
	2025			2024			$		%
Americas Welding:
Net sales	$	1,349,837		$	1,273,035		$	76,802	6.0	%
Inter-segment sales		73,763			67,778			5,985	8.8	%
Total Sales	$	1,423,600		$	1,340,813			82,787	6.2	%
Adjusted EBIT ⁽⁴⁾	$	262,113		$	272,750			(10,637)	(3.9)	%
As a percent of total sales ⁽¹⁾		18.4	%		20.3	%			(1.9)	%
International Welding:
Net sales	$	451,885		$	474,519			(22,634)	(4.8)	%
Inter-segment sales		14,473			17,257			(2,784)	(16.1)	%
Total Sales	$	466,358		$	491,776			(25,418)	(5.2)	%
Adjusted EBIT ⁽⁵⁾	$	53,562		$	53,486			76	0.1	%
As a percent of total sales ⁽²⁾		11.5	%		10.9	%			0.6	%
The Harris Products Group:
Net sales	$	291,339		$	255,326			36,013	14.1	%
Inter-segment sales		9,094			6,365			2,729	42.9	%
Total Sales	$	300,433		$	261,691			38,742	14.8	%
Adjusted EBIT ⁽⁶⁾	$	56,213		$	44,802			11,411	25.5	%
As a percent of total sales ⁽³⁾		18.7	%		17.1	%			1.6	%
Corporate / Eliminations:
Inter-segment sales	$	(97,330)		$	(91,400)			(5,930)	(6.5)	%
Adjusted EBIT ⁽⁷⁾		(2,850)			(16,343)			13,493	82.6	%
Consolidated:
Net sales	$	2,093,061		$	2,002,880			90,181	4.5	%
Net income	$	261,883		$	225,123			36,760	16.3	%
As a percent of total sales		12.5	%		11.2	%			1.3	%
Adjusted EBIT ⁽⁸⁾	$	369,038		$	354,695			14,343	4.0	%
As a percent of sales		17.6	%		17.7	%			(0.1)	%

(1)

Decrease for the six months ended June 30, 2025 as compared to June 30, 2024 primarily driven by the unfavorable impact of lower volumes and the impact of acquisitions.

(2)

Increase for the six months ended June 30, 2025 as compared to June 30, 2024 primarily reflects effective cost management and a favorable prior year comparison due to operational inefficiencies in 2024 which were not repeated in the current year .

(3)

Increase for the six months ended June 30, 2025 as compared to June 30, 2024 primarily reflects higher organic sales, effective cost management and operational improvements.

(4)

The six months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $3,040 as discussed in Note 6.

(5)

The six months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $3,103 as discussed in Note 6. The six months ended June 30, 2024 exclude Rationalization and asset impairment net charges of $29,354 primarily due to the impact of the Company’s disposition of its Russian entity as discussed in Note 6 and a loss on asset disposal of $4,950.

(6)

The six months ended June 30, 2025 exclude Rationalization and asset impairment net charges of $264 as discussed in Note 6. The six months ended June 30, 2024 exclude Rationalization and asset impairment net charges of $1,396 primarily due to restructuring activities as discussed in Note 6.

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(7)

The six months ended June 30, 2025 exclude acquisition transaction costs of $1,231 as discussed in Note 4. The six months ended June 30, 2024 exclude acquisition transaction costs of $3,944.

(8)

See non-GAAP Financial Measures for a reconciliation of Net income as reported and Adjusted EBIT.

Non-GAAP Financial Measures

The Company reviews Adjusted operating income, Adjusted net income, Adjusted EBIT, Adjusted effective tax rate, Adjusted diluted earnings per share, Adjusted return on invested capital (“Adjusted ROIC”), Adjusted net operating profit after taxes, Cash conversion and Organic sales, all non-GAAP financial measures, in assessing and evaluating the Company’s underlying operating performance. These non-GAAP financial measures exclude the impact of special items on the Company’s reported financial results. Non-GAAP financial measures should be read in conjunction with the generally accepted accounting principles in the United States ("GAAP") financial measures, as non-GAAP measures are a supplement to, and not a replacement for, GAAP financial measures.

The following table presents the reconciliations of Operating income as reported to Adjusted operating income, Net income as reported to Adjusted net income and Adjusted EBIT, Effective tax rate as reported to Adjusted effective tax rate and Diluted earnings per share as reported to Adjusted diluted earnings per share:


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Operating income as reported	$	192,144		$	148,838		$	357,062		$	313,885
Special items (pre-tax):
Rationalization and asset impairment charges ⁽¹⁾		2,542			26,490			6,407			31,095
Acquisition transaction costs ⁽²⁾		429			2,182			1,231			3,944
Amortization of step up in value of acquired inventories ⁽³⁾		—			112			(140)			112
Adjusted operating income	$	195,115		$	177,622		$	364,560		$	349,036
As a percentage of net sales		17.9	%		17.4	%		17.4	%		17.4	%

Net income as reported	$	143,396		$	101,708		$	261,883		$	225,123
Special items:
Rationalization and asset impairment charges ⁽¹⁾		2,542			26,490			6,407			31,095
Acquisition transaction costs ⁽²⁾		429			2,182			1,231			3,944
Amortization of step up in value of acquired inventories ⁽³⁾		—			112			(140)			112
Loss on asset disposal (4)		—			4,950			—			4,950
Tax effect of Special items ⁽⁵⁾		(755)			(1,182)			(1,913)			(2,308)
Adjusted net income		145,612			134,260			267,468			262,916
Interest expense, net		12,619			10,661			24,746			19,440
Income taxes as reported		40,163			34,916			74,911			70,031
Tax effect of Special items ⁽⁴⁾		755			1,182			1,913			2,308
Adjusted EBIT	$	199,149		$	181,019		$	369,038		$	354,695
Effective tax rate as reported		21.9	%		25.6	%		22.2	%		23.7	%
Net special item tax impact		0.0	%		(4.4)	%		0.1	%		(2.1)	%
Adjusted effective tax rate		21.9	%		21.2	%		22.3	%		21.6	%
Diluted earnings per share as reported	$	2.56		$	1.77		$	4.66		$	3.91
Special items per share		0.04			0.57			0.10			0.66
Adjusted diluted earnings per share	$	2.60		$	2.34		$	4.76		$	4.57

(1)

Primarily related to restructuring activities as discussed in Note 6 to the consolidated financial statements.

(2)

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

(3)

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

(4)

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

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(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.

Liquidity and Capital Resources

Overview

The Company’s primary sources of liquidity are operating cash flows and revolving credit facilities. As of June 30, 2025, the Company had $299,481 of cash and cash equivalents on hand and $5,319 of outstanding borrowings under its $1,033,662 revolving credit facilities .

The Company’s capital allocation priorities include internal investment to support existing operations and organic growth, investment in acquisitions to grow the business and then returning capital to shareholders through dividends and share repurchases.

The Company’s cash flow from operations can be cyclical. In assessing liquidity, the Company reviews working capital measurements to define areas for improvement. Management anticipates the Company will be able to satisfy cash requirements for its ongoing businesses for the foreseeable future primarily with cash generated by operations, existing cash balances, borrowings under its existing credit facilities and raising debt in capital markets.

The Company continues to expand globally and periodically consider acquisitions that would involve significant investments. The Company can fund its global expansion plans with operational cash flow, but a significant acquisition may require access to capital markets, in particular, the long-term debt market, as well as the syndicated bank loan market. The Company’s financing strategy is to fund itself at the lowest after-tax cost of funding. Where possible, the Company utilizes operational cash flows and raises capital in the most efficient market, usually the United States, and then lends funds to the specific subsidiary needing or requiring funding. If additional acquisitions providing appropriate financial benefits become available, additional expenditures may be made.

Cash Flow

The following table reflects changes in key cash flow measures:


	Six Months Ended June 30,
	2025		2024		$ Change
Cash provided by operating activities ⁽¹⁾	$	329,521	$	303,981	$	25,540
Cash used by investing activities		(79,470)		(200,746)		121,276
Capital expenditures		(52,392)		(49,395)		(2,997)
Acquisition of businesses, net of cash acquired		(32,309)		(152,654)		120,345
Cash used by financing activities ⁽²⁾		(317,709)		(218,452)		(99,257)
Payments on short-term borrowings		(5,206)		(578)		(4,628)
Proceeds from long-term borrowings		—		400,000		(400,000)
Payments on long-term borrowings		(169)		(400,339)		400,170
Purchase of shares for treasury		(233,824)		(160,820)		(73,004)
Cash dividends paid to shareholders		(84,904)		(81,696)		(3,208)
Decrease in Cash and cash equivalents		(77,781)		(121,115)		43,334

(1)

Cash provided by operating activities increased for the six months ended June 30, 2025, compared with the six months ended June 30, 2024 primarily due to improved working capital.

(2)

Cash used by financing activities increased for the six months ended June 30, 2025, compared with the six months ended June 30, 2024 primarily due to the increase in purchases of shares for treasury.

As of June 30, 2025, the Company had cash of $299,481, of which $257,675 was held by international subsidiaries.

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In July 2025, the Company paid a cash dividend of $0.75 per share, or $41,390, to shareholders of record on June 30, 2025.

The Company currently anticipates capital expenditures of $100,000 to $120,000 in 2025. Anticipated capital expenditures include investments to increase capacity, improve operational effectiveness and for general maintenance. Management critically evaluates all proposed capital expenditures and expects each project to increase efficiency, reduce costs, support sales growth or improve the overall safety and environmental conditions of the Company’s facilities.

Revolving Credit Agreements

On June 20, 2024, the Company entered into a $1 billion revolving credit facility. The revolving credit facility matures on June 20, 2029. As of June 30, 2025, the Company had $1 billion of availability under the revolving credit facility. Additionally, the Company has other lines of credit with total availability of $28,343 as of June 30, 2025. Refer to Note 10 for further information on our revolving lines of credit.

Working Capital Ratios


	June 30, 2025		December 31, 2024		June 30, 2024
Average operating working capital to Net sales ⁽¹⁾	18.4	%	16.9	%	18.0	%
Days sales in Inventories	117.3		106.0		117.0
Days sales in Accounts receivable	49.4		46.9		51.9
Average days in Trade accounts payable	56.6		45.8		56.3

(1)

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.

Stock Repurchase Program

On February 12, 2020, the Company’s Board authorized a share repurchase program for up to 10 million shares of the Company’s common stock. As of June 30, 2025, there were 5.5 million shares available under the authorization. The Company is not obligated to make any repurchases.

Rationalization and Asset Impairments

Refer to Note 6 to the consolidated financial statements for a discussion of the Company’s rationalization plans. The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital.

Acquisitions

Refer to Note 4 to the consolidated financial statements for a discussion of the Company’s recent acquisitions.

Return on Invested Capital

The Company reviews ROIC in assessing and evaluating the Company’s underlying operating performance. As discussed in the Non-GAAP Financial Measures section above, Adjusted ROIC is a non-GAAP financial measure that the Company believes is a meaningful metric to investors in evaluating the Company’s financial performance. The calculation may be different than the method used by other companies to calculate ROIC. Adjusted ROIC is defined as rolling 12 months of Adjusted net income excluding tax-effected interest income and expense divided by invested capital. Invested capital is defined as total debt, which includes Short-term debt and Long-term debt, less current portions, plus Total equity.

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The following table presents the reconciliations of ROIC and Adjusted ROIC to net income:


	Twelve Months Ended June 30,
	2025			2024
Net income as reported	$	502,868		$	511,110
Plus: Interest expense (after-tax)		42,688			36,607
Less: Interest income (after-tax)		6,636			7,654
Net operating profit after taxes	$	538,920		$	540,063
Special items:
Rationalization and asset impairment net charges		31,172			16,237
Acquisition transaction costs		4,332			3,944
Pension settlement charges		3,792			845
Amortization of step up in value of acquired inventories		4,771			4,964
Loss on asset disposal		—			4,950
Tax effect of Special items ⁽¹⁾		(11,118)			2,357
Adjusted net operating profit after taxes	$	571,869		$	573,360

Invested Capital	June 30, 2025			June 30, 2024
Short-term debt	$	105,323		$	6,254
Long-term debt, less current portion		1,150,395			1,098,430
Total debt		1,255,718			1,104,684
Total equity		1,379,613			1,312,906
Invested capital	$	2,635,331		$	2,417,590

Return on invested capital as reported		20.4	%		22.3	%
Adjusted return on invested capital		21.7	%		23.7	%

(1)

New Accounting Pronouncements

Refer to Note 1 to the consolidated financial statements for a discussion of new accounting pronouncements.

Forward-looking Statements

The Company’s expectations and beliefs concerning the future contained in this report 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 systems; 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; possible 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; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, the ongoing 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

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discussion, see “Item 1A. Risk Factors” presented herein, as well as in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and on Form 10-Q for the quarter ended March 31, 2025.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the Company’s exposure to market risk since December 31, 2024. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company carried out an evaluation under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the Company’s management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2025.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting that occurred during the quarter ended June 30, 2025 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is subject, from time to time, to a variety of civil and administrative proceedings arising out of its normal operations, including, without limitation, product liability claims, regulatory claims and health, safety and environmental claims. Among such proceedings are the cases described below.

As of June 30, 2025, the Company was a co-defendant in cases alleging asbestos induced illness involving claims by approximately 1,236 plaintiffs, which is a net decrease of 25 claims from those previously reported. In each instance, the Company is one of a large number of defendants. The asbestos claimants seek compensatory and punitive damages, in most cases for unspecified sums. Since January 1, 1995, the Company has been a co-defendant in asbestos cases that have been resolved as follows: 57,150 of those claims were dismissed, 23 were tried to defense verdicts, 7 were tried to plaintiff verdicts (which were reversed or resolved after appeal), 1 was resolved by agreement for an immaterial amount and 1,020 were decided in favor of the Company following summary judgment motions.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this Quarterly Report on Form 10-Q, the reader should carefully consider the factors discussed in “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and on Form 10-Q for the quarter ended March 31, 2025.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEED S

Issuer purchases of its common shares during the second quarter of 2025 were as follows:


					Total Number of
					Shares	Maximum Number
					Repurchased	of Shares that May
	Total Number of				as Part of Publicly	Yet be Purchased
	Shares		Average Price		Announced Plans or	Under the Plans or
Period	Repurchased		Paid Per Share		Programs	Programs ⁽²⁾
April 1 - 30, 2025	99,975	⁽¹⁾		$ 179.96	99,248	6,071,177
May 1 - 31, 2025	311,506	⁽¹⁾		$ 191.49	310,448	5,760,729
June 1 - 30, 2025	236,918	⁽¹⁾		$ 208.86	236,488	5,524,241
Total	648,399			$ 196.06	646,184

(1)

The above share repurchases include the surrender of the Company’s common shares in connection with the vesting of restricted awards.

(2)

On February 12, 2020, the Company’s Board of Directors authorized a new share repurchase program for up to an additional 10 million shares of the Company’s common stock. Total shares purchased through the share repurchase programs were 4.5 million shares at a total cost of $811.7 million for a weighted average cost of $181.33 per share through June 30, 2025.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the quarter ended June 30, 2025, none of the Company’s directors or officers adopted , modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Item 408(a) of Regulation S-K.

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ITEM 6. EXHIBITS

(a)

Exhibits




31.1	Certification of the Chair, President and Chief Executive Officer (Principal Executive Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 (filed herewith).
31.2	Certification of the Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 (filed herewith).
32.1	Certification of the Chair, President and Chief Executive Officer (Principal Executive Officer) and Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
104	Cover page Interactive Data File (formatted as Inline XBRL and contained in the Exhibit 101 attachments)
	Inline XBRL Taxonomy Extension Label Linkbase Document

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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 thereunto 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 31, 2025

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Part I. Financial Information Item 1. Financial Statements Note 1 Significant Accounting Policies Note 2 Revenue Recognition Note 3 Earnings Per Share Note 4 Acquisitions Note 5 Segment Information Note 6 Rationalization and Asset Impairments Note 7 Accumulated Other Comprehensive Income (loss) ("aoci")Note 8 Inventories Note 9 Leases Note 10 Debt Note 11 Income Taxes Note 12 Derivatives Note 13 - Fair Value Note 14 Supplier Financing Program Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II. Other Information Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 2. Unregistered Sales Of Equity Securities and Use Of Proceed Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

Exhibits

31.1 Certification of the Chair, President and Chief Executive Officer (Principal Executive Officer) pursuant to Rule13a-14(a)of the Securities Exchange Act of 1934 (filed herewith). 31.2 Certification of the Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) pursuant to Rule13a-14(a)of the Securities Exchange Act of 1934 (filed herewith). 32.1 Certification of the Chair, President and Chief Executive Officer (Principal Executive Officer) and Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

LECO 10-Q Quarter ended June 30, 2025

Exhibits