Lincoln Electric Holdings, Inc. · NASDAQ:LECO
Lincoln Electric — Q4 2025 Earnings Presentation
34 slides from Lincoln Electric's earnings presentation, Feb 12, 2026
Slide 1: Q4 & Full Year 2025 Earnings & 2030 Targets
Lincoln Electric LINCOLN Holdings, ELECTRIC Inc. HOLDINGS, INC. Q4 Q4&&Full Year 2025 FY2025 Earnings Earnings & 2030 Targets & 2030 Targets February 12, 2026 February 12, 2026
Slide 2: Safe Harbor and Regulation G Disclosures
Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Non-GAAP Measures: Statements made during this presentation which are not historical Our management uses non-GAAP financial measures in facts may be considered forward-looking statements. Forward- assessing and evaluating the Compa
Slide 3: Full Year 2025 Highlights
Full Year 2025 $4.2B 21.3% Highlights Record Net Sales performance Adjusted ROIC performance +6% vs. prior year; Organic sales +2.5% -50 bps vs. prior year Effective cost management, $31M in permanent savings, and solid execution of strategic initiatives mitigate lower volumes Maintained record 17.6
Slide 4: Q4 organic sales +2.5% led by price and resilience in welding consumable volumes
Q4 organic sales +2.5% led by price and resilience in welding consumable volumes Q4 Organic sales by product area Q4 global end sector performance1 Consumables up in all segments; 3 of 5 end markets flat-to-up, led Automation challenged by comps by price and Americas Welding Consumables increase low
Slide 5: Income Statement Highlights Q4-2025
Income Statement Highlights Q4-2025 ($ in Millions) Q4 2025 Q4 2024 % YoY Change Favorable / (Unfavorable) Net Sales $ 1,078.7 $ 1,022.0 5.5% Gross Profit $ 373.9 $ 368.6 1.4% Gross Profit Margin 34.7% 36.1% (140) bps SG&A as % of net sales 17.0% 18.3% 130 bps Adjusted Operating Income $ 193.8 $ 185
Slide 6: Americas Welding Segment Highlights
Americas Welding Segment Segment Highlights % YoY ($ in Millions) Q4 2025 Q4 2024 Organic sales increase on Change price as lower volumes reflect Net Sales $ 681.9 $ 654.8 4.1% weak capital spending (equipment and automation), as well as a challenging prior Adjusted EBIT $ 141.1 $ 131.9 7.0% year co
Slide 7: International Welding Segment Highlights
International Welding Segment Segment Highlights % YoY ($ in Millions) Q4 2025 Q4 2024 Organic sales decline reflects Change challenged European industrial Net Sales $ 259.4 $ 243.0 6.7% sector trends; partially offset by growth in Asia Pacific and modest price growth Adjusted EBIT $ 31.2 $ 32.5 (4.
Slide 8: The Harris Products Group Segment Highlights
The Harris Products Group Segment Highlights % YoY ($ in Millions) Q4 2025 Q4 2024 Organic sales higher on price as Change volumes compress on lower Net Sales $ 137.4 $ 124.3 10.6% OEM HVAC customer production activity Adjusted EBIT $ 23.3 $ 21.6 8.1% Price reflects changes in metal costs and price
Slide 9: Cash Flow From Operations & Working Capital
Cash Flow From Operations & Working Capital Cash Flow from Operations Average Operating Working ($ in Millions) Capital to Net Sales Ratio $661 $599 17.9% 16.9% $96 $95 Q4-24 Q4-25 FY2024 FY2025 Dec 31, 2024 Dec 31, 2025 97% Cash conversion1 in 2025 9 1Cash conversion is defined as Net cash provided
Slide 10: Capital Allocation
Capital Allocation1 ($ in Millions) $795 Q4 Capital Allocation & Returns $771 264 • Growth: $44 million 338 • Return to Shareholders: $94 million 162 • Return on Invested Capital2: 21.3% 168 253 Capital Allocation Strategy $137 138 $124 53 52 Prioritized uses of cash: 40 42 117 127 31 43 • Growth in
Slide 11: Full Year 2026 Assumptions
Full Year 2026 Assumptions Expecting demand trends to improve through the year Assumptions Risks MSD% Net sales growth (organic and M&A) Net impact of trade & regulatory policies (Organic ~50/50 volume & price) Economic and geopolitical headwinds Neutral price/cost Inflation (raw materials & labor)
Slide 12: 2030 Targets
2030 Targets»
Slide 13: Strong "Say-Do" Ratio on Our Higher Standard Strategy Execution
Strong “Say-Do” Ratio on Our Higher Standard Strategy Execution We are well-positioned for the next growth cycle METRIC TARGET PERFORMANCE RESULTS Financial (2020 base year) HSD%-LSD% with $1B in +11% (organic 7% and M&A 4%); SALES CAGR (ex-FX) Automation sales by 2025 $941M peak Automation sales in
Slide 14: Each Segment is Moving in the Right Direction
Each Segment is Moving in the Right Direction We will build on our momentum Consolidated Americas Welding 2020-2025 Achievements 2020-2025 Achievements 2015-2019 2020-2025 • Doubled Automation Sales & EBIT % 2015-2019 2020-2025 • Achieved HS2025 EBIT target Sales • Acquisition growth outperformance
Slide 15: Our Model Delivers Superior Performance
Our Model Delivers Superior Performance Superior TSR Performance 2020-2025 122% 96% 91% 51% 55% LECO Peers Avg 1 S&P500 S&P400 S&P400 Industrials Superior Returns (ROIC)2 2020-2024 Average 89% 20% 10% 1 LECO Peers Avg LECO Percentile Rank 15 1Peers refers to 2025 proxy peers 2 ROIC data from FactSet
Slide 16: Next Phase: Improving Alignment, Agility & Competitiveness
Next Phase: Improving Alignment, Agility & Competitiveness to drive growth, engagement, productivity and increase returns 2020-2025 2026-2030 • Process efficiency • Economies of scale & scope • New products & solutions • New-to-the-world technology • Build Automation portfolio • Extend Automation po
Slide 17: Center-Led, Standardized & Scaled
CENTER-LED, ACCELERATE EXCEED PERFORMANCE & STANDARDIZED & INNOVATION EXPECTATIONS COMMUNITY SCALED 17 17
Slide 18: Focused on Accelerating Sales Growth
Focused on Accelerating Sales Growth INE PEO IPL PL SC E DI F O AL CU CI SE FINAN D COMPONENTS OF ACCELERATED GROWTH C ON T I NU TH +300-400 bps OU W M S PR O I OV EM E GR NT • New technologies • New applications or products +400-600 bps • Market or channel access HSD% • Faster secular & cyclical gr
Slide 19: Segment Growth Strategies
Segment Growth Strategies Prioritizing investments in highest profit growth areas SC IPL INE PEO PL E Organic Sales DI F Growth Rate O AL CU CI SE 2026-2030 FINAN D C ON T I • Highest growth segment given regional secular & cyclical tailwinds, NU majority of automation, and regional footprint capabi
Slide 20: Reimagining How We Work
Reimagining How We Work Enterprise initiatives will unlock value INE PEO IPL PL SC E DI F ENTERPRISE INITIATIVES FOCUSED ON O AL CU CI SE FINAN D • Safer and more productive operations C ON T I • Highly efficient core business processes NU TH OU • Leverage global scale & maintain local agility W M S
Slide 21: Targeting 20+% Peak Operating Income Margin by 2030
Targeting 20+% Peak Operating Income Margin by 2030 With high-20% incremental margin Average 19% Operating Income Margin (+/-150bps) Reportable Segment Adjusted EBIT Margin Through the Cycle Target Ranges (2026-2030) +100 to 125 bps 20+% 2020-2025 2026-2030 Enterprise Avg. Adj. EBIT Margin +150 to 2
Slide 22: Ample Liquidity & Strong Cash Generation
Ample Liquidity & Strong Cash Generation Targeting top-decile working capital and 100% Cash Conversion Average Operating Working Capital Performance Cash Flow From Operations Performance ($B) $3.7+ 24.0% 16%-17% $2.6 18.7% 17.8% 16.3% $1.6 $1.7 $1.2 2005-2010 2011-2015 2016-2020 2021-2025 2026-2030
Slide 23: Balanced Capital Allocation Strategy
Balanced Capital Allocation Strategy Funding growth & shareholder returns for superior performance Capital Allocation 2020-2025 ($B) MAINTAIN DEPLOY RETURN STRONG CAPITAL FOR CAPITAL TO CapEx BALANCE SHEET GROWTH SHAREHOLDERS $0.5 Repurchases $1.2 R&D Ample liquidity Internal Investments Dividend “A
Slide 24: 2030 Financial Framework Summary
2030 Financial Framework Summary 2026-2030 METRICS KEY DRIVERS (Through the Cycle) Cyclical and secular tailwinds Sales Growth HSD% to LDD% Innovation (ex-FX) to $6+B Acquisitions Automation grows at 2x core business1 High-20% Average Op Income Margin target is +300 bps improvement vs. prior cycle i
Slide 25: Contact
Contact: Amanda Butler Vice President, Investor Relations & Communications Amanda_Butler@lincolnelectric.com 216.383.2534 25
Slide 26: Protecting the Environment at Every Step
Protecting the Environment at Every Step Operating to maximize safety & minimize waste 2030 SAFETY & ENVIRONMENTAL GOALS (vs. 2024 baseline) Safety (TRCR) Water Intensity 2030 Goal: 34% Reduction 2030 Goal: 10% Reduction1 GHG Emissions (Scope 1 & 2) Waste Directed to Disposal 2030 Goal: 30% Reductio
Slide 27: Non-GAAP Information
Non-GAAP Information Adjusted operating income, Adjusted net income, Adjusted EBIT, EBITDA, Adjusted EBITDA, Adjusted effective tax rate, Adjusted diluted earnings per share, Adjusted EPS, Organic sales, Cash conversion, Free Cash Flow, and Adjusted Return on invested capital are non-GAAP financial
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures: Reconciliation of Operating Income, Net Income, Effective Tax Rate, and EPS to Non-GAAP Adjusted Operating Income, Adjusted Net Income, Adjusted Effective Tax Rate, and Adjusted EPS (In thousands, except per share amounts) (Unaudited) 28 Pleas
Slide 29: Non-GAAP Financial Measures (continued)
Non-GAAP Financial 1) Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and Measures 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
Slide 30: Adjusted Return on Invested Capital (ROIC)
Non-GAAP Financial Measures Adjusted Return on Invested Capital (ROIC) (In thousands) (Unaudited) 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
Slide 31: Cash Conversion
Non-GAAP Financial Measures Cash Conversion (In thousands) (Unaudited) 1) Free cash flow and cash conversion are non-GAAP financial measures. Refer to Non-GAAP Information section. 31
Slide 32: Segment EBIT
Segment EBIT EBIT and Adjusted EBIT Reconciliation – Three Months Ended December 31, 2025 (In thousands) (Unaudited) 32 Please see the following slide for corresponding footnotes
Slide 33: Non-GAAP Financial Measures (continued)
Non-GAAP Financial 1) EBIT is defined as Operating income plus Other income (expense). Measures 2) The primary profit measure used by management to assess segment performance is adjusted (continued) EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT. 3) Speci
Slide 34: Segment EBIT & Reconciliation of EBIT Margin to Non-GAAP Adjusted EBIT Margin
Non-GAAP Financial Measures Segment EBIT & Reconciliation of EBIT Margin to Non-GAAP Adjusted EBIT Margin Americas Welding International Welding Harris Products Group ($ millions) 2020 2021 2022 2023 2024 2025 ($ millions) 2020 2021 2022 2023 2024 2025 ($ millions) 2020 2021 2022 2023 2024 2025 EBIT
Lincoln Electric Holdings — Q4 2025 Earnings Presentation on 6ix