Lincoln Electric Holdings, Inc. · NASDAQ:LECO
Lincoln Electric — Q1 2025 Earnings Presentation
18 slides from Lincoln Electric's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025 Earnings
April 30, 2025 LINCOLN ELECTRIC HOLDINGS, INC. Q1 2025 Earnings
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 Our management uses non-GAAP financial measures in historical facts may be considered forward-looking statements. assessing and evaluating the Company’s perf
Slide 3: First Quarter 2025 Highlights
First Quarter $1.0B 21.5% 2025 Highlights: Net Sales performance Adjusted ROIC performance1 +2.4% vs. prior year; Organic sales -1.2% -260 bps vs. prior year Effectively mitigating an industrial down cycle with diligent cost management and $16M in savings actions while investing in growth 16.9% $186
Slide 4: Q1 organic sales performance of (1.2)% narrowed on price actions and consumable demand
Q1 organic sales performance of (1.2)% narrowed on benefits of price actions and improving consumable demand in Americas Welding & Harris Products Group Q1 Organic sales by product area Q1 global end sector performance1 Consumables and Automation 4 of 5 end markets reported growth steady vs. prior y
Slide 5: Income Statement Highlights Q1-2025
Income Statement Highlights Q1-2025 ($ in Millions) Q1 2025 Q1 2024 % YoY Change Favorable / (Unfavorable) Net Sales $ 1,004.4 $ 981.2 2.4% Gross Profit $ 365.4 $ 368.4 (0.8)% Gross Profit Margin 36.4% 37.5% (110) bps SG&A as % of net sales 19.6% 20.3% 70 bps Adjusted Operating Income $ 169.4 $ 171.
Slide 6: Americas Welding Segment
Americas Welding Segment % YoY ($ in Millions) Q1 2025 Q1 2024 Lower organic sales reflects Change price actions and relatively Net Sales $ 653.1 $ 624.1 4.6% steady consumable demand, offset by slow capital investment. Adjusted EBIT $ 124.2 $ 136.1 (8.7)% Acquisition sales Adjusted EBIT Margin2 18.
Slide 7: International Welding Segment
International Welding Segment % YoY Volumes lower as growth in ($ in Millions) Q1 2025 Q1 2024 Change Asia Pacific was offset by volume weakness in Turkey Net Sales $ 219.1 $ 235.8 (7.1)% due to labor negotiations. Turkey had an approximate Adjusted EBIT $ 23.0 $ 27.8 (17.2)% (900) bps unfavorable i
Slide 8: The Harris Products Group
The Harris Products Group % YoY ($ in Millions) Q1 2025 Q1 2024 Change Organic sales higher on price and volume Net Sales $ 132.2 $ 121.3 9.0% growth from higher HVAC demand, partially Adjusted EBIT $ 24.3 $ 19.9 22.4% offset by slowing retail. Price primarily reflects Adjusted EBIT Margin2 17.9% 16
Slide 9: Cash Flow From Operations & Working Capital Metrics
Cash Flow From Operations & Working Capital Metrics Cash Flow from Operations Average Operating Working ($ in Millions) Capital to Net Sales Ratio $186 130% cash conversion1 in Q1-2025 Working capital $133 performance improves versus prior year period 18.8% on operational 17.8% efficiencies and timi
Slide 10: Capital Allocation
Capital Allocation1 ($ in Millions) Q1 Capital Allocation & Returns $178 $177 • Growth: $27 million • Return to Shareholders: $150 million • Return on Invested Capital2: 21.5% 110 107 Capital Allocation Strategy Prioritized uses of cash: 41 43 • Growth investments (organic and M&A) 26 27 • Return to
Slide 11: Full Year 2025 Assumptions
Full Year 2025 Assumptions Adjusted to include estimated impact of current enacted tariffs, which will be mitigated by supply chain initiatives and price Assumptions Risks Flat organic sales (higher price offset by lower Net impact of trade & regulatory policies volumes) Economic and geopolitical he
Slide 12: Contact
Contact: Amanda Butler Vice President, Investor Relations & Communications Amanda_Butler@lincolnelectric.com 216.383.2534 12 12
Slide 13: 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, and Adjusted Return on invested capital are non-GAAP financial measures. Manage
Slide 14: 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) 14 Pleas
Slide 15: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures 1) Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and adjusted diluted EPS are non-GAAP financial measures. Refer to Non-GAAP Information section. (continued) 2) 2025 charges primarily relate to rationalization plans initiated i
Slide 16: 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 17: Segment EBIT
Segment EBIT EBIT and Adjusted EBIT Reconciliation – Three Months Ended March 31, 2025 (In thousands) (Unaudited) 17 Please see the following slide for corresponding footnotes
Slide 18: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures 1) EBIT is defined as Operating income plus Other income. (continued) 2) The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT. Footnotes for EBIT
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