Lincoln Electric Holdings, Inc. · NASDAQ:LECO
Lincoln Electric — Q2 2026 Earnings Presentation
19 slides from Lincoln Electric's earnings presentation, Jul 30, 2026
Slide 1: Q2 2026 Earnings
LINCOLN ELECTRIC HOLDINGS, INC. Lincoln Electric Holdings, Inc. Q4 & Full Year 2025 Q2 2026 Earnings Earnings & 2030 Targets July 30, 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: Second Quarter 2026 Highlights
Second Quarter $1.2B 23.0% 2026 Highlights Record Net Sales performance Adjusted ROIC performance +12% vs. prior year; Organic sales +10% +130 bps vs. prior year Record net sales from accelerating organic sales & Alloy Steel acquisition Record Adjusted operating income margin with 22% incremental ma
Slide 4: Q2 organic sales +10% led by price and volume growth across all 3 product groups
Q2 organic sales +10% led by price and volume growth across all 3 product groups Q2 Organic sales by product area Q2 global end sector performance1 Solid momentum in Americas 4 of 5 end markets growing Consumables increase low-teens percent General Fabrication up mid-30 percent Equipment increases h
Slide 5: Income Statement Highlights Q2-2026
Income Statement Highlights Q2-2026 ($ in Millions) Q2 2026 Q2 2025 % YoY Change Favorable / (Unfavorable) Net Sales $ 1,219.7 $ 1,088.7 12.0% Gross Profit $ 449.0 $ 405.5 10.7% Gross Profit Margin 36.8% 37.3% (50) bps SG&A as % of net sales 18.4% 19.4% 100 bps Adjusted Operating Income $ 224.1 $ 19
Slide 6: Americas Welding Segment Highlights
Americas Welding Segment Segment Highlights % YoY ($ in Millions) Q2 2026 Q2 2025 Volumes increased across all Change product areas led by accelerated Net Sales $ 774.4 $ 696.7 11.2% capital spending Price reflects the partial benefit Adjusted EBIT $ 158.1 $ 137.9 14.6% of Q2-2026 price actions and
Slide 7: International Welding Segment Highlights
International Welding Segment Segment Highlights % YoY ($ in Millions) Q2 2026 Q2 2025 Organic sales decline reflects Asia Change Pacific growth offset by slowing Net Sales $ 243.3 $ 232.8 4.5% EMEA trends including a $2M impact from the Middle East conflict Adjusted EBIT $ 26.6 $ 30.6 (12.9)% Acqui
Slide 8: The Harris Products Group Segment Highlights
The Harris Products Group Segment Highlights % YoY ($ in Millions) Q2 2026 Q2 2025 Lower volumes primarily due to Change challenging prior year comparisons Net Sales $ 201.9 $ 159.1 26.9% in HVAC and the retail channel Price reflects higher YoY metal Adjusted EBIT $ 42.3 $ 31.9 32.5% costs, primaril
Slide 9: Record Cash Flows & Improved Working Capital
Record Cash Flows & Improved Working Capital Cash Flows from Operations Average Operating Working ($ in Millions) Capital to Net Sales Ratio $356 $330 $254 18.4% 17.9% 16.9% $144 Q2-25 Q2-26 H1-25 H1-26 June 30, Dec 31, June 30, 2025 2025 2026 138% Cash conversion in Q2 on earnings and improved work
Slide 10: Capital Allocation
Capital Allocation1 ($ in Millions) $403 Q2 Capital Allocation & Returns $291 • Growth: $31 million 234 • Return to Shareholders: $120 million $226 133 • Return on Invested Capital2: 23.0% 127 $150 85 Capital Allocation Strategy 76 87 42 32 32 43 Prioritized uses of cash: 52 71 25 31 • Growth invest
Slide 11: Increasing Sales Assumption on Higher Volumes
Increasing Sales Assumption on Higher Volumes Assumptions Risks Raising Net sales growth to LDD% (from: HSD%) Net impact of trade & regulatory policies (Organic sales mix: 1/3 volume; 2/3 price) Commodity prices Neutral price/cost in H2-2026 Economic and geopolitical headwinds Adj Op income margin i
Slide 12: Contact
Contact: Amanda Butler Vice President, Investor Relations & Communications Amanda_Butler@lincolnelectric.com 216.383.2534 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, Free Cash Flow, and Adjusted Return on invested capital are non-GAAP financial
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 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. (continued) 2) 2026 and 2025 net charges primarily relate to rationalization plan
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: 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. 17
Slide 18: Segment EBIT
Segment EBIT EBIT and Adjusted EBIT Reconciliation – Three Months Ended June 30, 2026 (In thousands) (Unaudited) 18 Please see the following slide for corresponding footnotes
Slide 19: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) 1) EBIT is defined as Operating income plus Other income. 2) The primary profit measure used by management to assess segment performance is adjusted Footnotes for EBIT and EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted E
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