Lincoln Electric Holdings, Inc. · NASDAQ:LECO
Lincoln Electric — Investor Presentation (2025)
26 slides from Lincoln Electric's investor presentation, 2025
Slide 1: Lincoln Electric Holdings, Inc. Overview
LINCOLN ELECTRIC HOLDINGS, INC. Overview
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: High-Performance Industry Leader Targeting Superior Value Through the Cycle
High-Performance Industry Leader Targeting Superior Value Through the Cycle #1 Leader Innovation & Predictable Disciplined Earnings Strong Cash in Growing Operational Model With Capital Compounder Generation Arc Welding Excellence Annual Deployment Through the Through the & Cutting Advances Dividend
Slide 4: 130 Years of Market-Leading Solutions
130 Years of Market-Leading Solutions Our Guiding Principle: Broadest Portfolio of Solutions in the Industry1 The Golden Rule GAS MANAGEMENT SOLUTIONS Founded 1895 (INDUSTRIAL & LIFE SCIENCES) DESIGN & INTEGRATION ARC WELDING EQUIPMENT SERVICES Renowned business model with high-performance culture J
Slide 5: Diversified Products and Reach
Diversified Products and Reach Net Sales by Product Area1 Net Sales by Segment1 Americas Welding includes North and South American welding and cutting solutions and 80% of automation. Harris Products Group 48% 13% International Welding includes EMEA and Asia Pacific Equipment Consumables Internation
Slide 6: Leading Provider Across Diverse End Markets
Leading Provider Across Diverse End Markets $23B to $25B Global Arc Welding Market Lincoln Electric Revenue Mix by and Share Estimates1 End Market Sector2 LSD% average 13% organic Construction & growth Infrastructure 32% Others General Global 20% Fabrication Automotive & Competitors Transportation 1
Slide 7: Accelerating Growth Through the Cycle: Higher Standard 2025
Accelerating Growth Through Higher Standard 2025 the Cycle Strategy Financial Targets (2020 Baseline) Sales CAGR: High Single-Digit to Low Double-Digit % Avg. Adj. Op Income Margin: 16% (+/- 150 bps) Segment Adj. EBIT Margin Ranges: Accelerate growth: innovation, automation, additive, and M&A Americ
Slide 8: Higher Standard 2025 Strategy and High-Performance Culture Generates Superior Value
Higher Standard 2025 Strategy and High-Performance Culture Generates Superior Value Drives compounded earnings growth across cycles + + Balanced Capital Allocation & Strong 2020-2025 Targets Cash Generation v Disciplined M&A High Single-Digit to Low Double-Digit % v Solutions & Value 100+% cash conv
Slide 9: 2025 Strategy Advances Performance vs. Prior Cycles
2025 Strategy Advances Performance vs. Prior Cycles 2020-2025 2003-2008 2009-2013 2015-2019 Higher Standard Commodity Super-Cycle Post Great Recession Mini Industrial Recessions 2025 Strategy • Market share strategy • ROIC and margin-focused • Accelerated automation • BRIC-focused strategy • Improve
Slide 10: Robust Topline Growth
Robust Topline Growth More than 2x growth expected vs. underlying market +300-400 bps High +200-300 bps Single-Digit % to Low Double- +100-200 bps Digit % Sales CAGR (2020-2025) New Industrial Automation / Anticipated Initiatives / Production Additive M&A Innovation 10 * graph is not to scale
Slide 11: Attractive Trends Drive Growth
Attractive Trends Drive Growth Industrial Sector Tailwinds Labor Shortage & Electrification, Energy & Safer and Energy-Efficient Inflation Infrastructure Investment Solutions • Leading automation offering to • Extensive portfolio and expertise for • Product stewardship team engineers support manufac
Slide 12: Adoption of Automation Accelerates Growth
Adoption of Automation Accelerates Growth Leading automation offering places LECO at the forefront of industry transformation Automation Overview 2025 Target: $1B sales & mid-teens percent operating income margin An automation leader with $911M 2024 sales growing at a long-term HSD% organic sales CA
Slide 13: Leading Innovation and End Sector Expertise Drives Growth
Leading Innovation and End Sector Expertise Drives Growth Extensive R&D, 475+ technical sales & industry application experts & 2,500+ automation team Vitality Index1 IP Leader Speed-to-Market 40 ~36% ~50% Leading global welding Regional co-development of new Infrastructure of global technology indus
Slide 14: Solutions Engineered to Deliver Measurable Value
Solutions Engineered to Deliver Measurable Value 14
Slide 15: Supporting Clean Tech Applications
Supporting Clean Tech Applications Product Stewardship Innovation includes designing greater energy efficiency into our products to reduce Long Stick Out® solution for Velion DC Fast their carbon footprint and help customers wind turbine and pipe fabrication Charger for achieve their sustainability
Slide 16: Disciplined Acquisition Program Creates Value
Disciplined Acquisition Program Creates Value 3.6% $1.3B Acquisitions are a core growth driver CAGR from M&A sales growth Cumulative M&A Investment 2015 - 2024 2015 - 2024 of our Higher Standard 2025 Strategy 20 Mid-Teens % Acquisitions and integrations Average ROIC performance executed 2015 - 2024
Slide 17: Operational Initiatives Advance 200 bps Margin Improvement
Operational Initiatives Advance 200 bps Margin • Safety-focused operating plan emphasizes reduction in emissions, energy intensity, waste and water use Improvement (vs. prior cycle average) • Lean initiatives and broad six-sigma training advances continuous improvement and productivity • Lincoln Bus
Slide 18: Protecting the Environment at Every Step
Protecting the Environment at Every Step LBS operational initiatives support achieving HS2025 Strategy EH&S goals Safety Water Use 2025 Goal: 52% Reduction vs. 2018 2025 Goal: 14% Reduction vs. 2018 38% Reduction 29% Reduction (2024 vs. 2018) (2024 vs. 2018) GHG Emissions Recycling 2025 Goal: 10% Re
Slide 19: Strong Cash Generation and Top Quartile ROIC
Strong Cash Generation and Top Quartile ROIC Cash Flow From Operations ($M) Return on Invested Capital (Adj. ROIC) & Cash Conversion (%) $700 105% 91% $600 24.1% 22.7% $500 21.8% $400 64%1 $668 $300 $599 $200 $383 $100 $0 2022 2023 2024 2022 2023 2024 Cash Flow From Operations 87% Average Cash Conve
Slide 20: Growth and Return Focused Capital Allocation Strategy
Growth and Return Focused Capital Allocation Strategy DISCIPLINED CONSECUTIVE 26-YEAR OPPORTUNISTIC INVESTMENT GRADE PROFILE ACQUISITIONS DIVIDEND INCREASE SHARE REPURCHASES BALANCE SHEET 2004-2008 2009-2013 2015-2019 2020-2025 Commodity Post Great Mini Industrial Higher Standard Super-Cycle Recessi
Slide 21: Sustainability and Governance Oversight
Sustainability and Governance Oversight Sustainability Governance • Board oversight and extensive governance structure • Sustainability aligns to our Higher Standard 2025 Strategy Committed to Employee Development & Engagement • Extensive global training and development programs • Support employee r
Slide 22: Proven Strategy and High-Performance Culture Generates Superior Value
Proven Strategy and High-Performance Culture Generates Superior Value Drives compounded earnings growth across cycles + + Balanced Capital Allocation & Strong 2020-2025 Targets Cash Generation v Disciplined M&A High Single-Digit to Low Double-Digit % v Solutions & Value 100+% cash conversion Sales G
Slide 23: Contact
Contact: Amanda Butler Vice President, Investor Relations & Communications Amanda_Butler@lincolnelectric.com 216.383.2534 23 23
Slide 24: Non-GAAP Information
Non-GAAP Information Adjusted operating income, Adjusted net income, Adjusted EBIT, Adjusted effective tax rate, Adjusted diluted earnings per share, Organic sales, Cash conversion, and Return on invested capital are non-GAAP financial measures. Management uses non-GAAP measures to assess the Compan
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Operating Income and Operating Income Margin to Non-GAAP Adjusted Operating Income and Adjusted Operating Income Margin ($ in millions) Period Ended December 31, 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on Invested Capital1 & Reconciliation of Diluted EPS to Non-GAAP Diluted Adjusted EPS ($ in millions) Period Ended December 31, 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net income: $54.5 $80.6 $12
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