Lincoln Electric Holdings, Inc. · NASDAQ:LECO
Lincoln Electric — Q1 2026 Earnings Presentation
19 slides from Lincoln Electric's earnings presentation, Apr 30, 2026
Slide 1: Q1 2026 Earnings
LINCOLN ELECTRIC HOLDINGS, INC. Lincoln Electric Holdings, Inc. Q4 & Full Year 2025 Q1 2026 Earnings Earnings & 2030 Targets April 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: First Quarter 2026 Highlights
First Quarter $1.1B 21.5% 2026 Highlights Record Net Sales performance Adjusted ROIC performance +12% vs. prior year; Organic sales +8% Steady vs. prior year Net sales growth led by price, benefits of FX translation, and the Alloy Steel acquisition Actions largely offset record 16.9% $102M commodity
Slide 4: Q1 organic sales +8% led by price
Q1 organic sales +8% led by price with improving volume performance in the AW and HPG segments Q1 Organic sales by product area Q1 global end sector performance1 Early-stage recovery in Americas 3 of 5 end markets flat-to-up Consumables increase high-teens percent General Fabrication up high-30 perc
Slide 5: Income Statement Highlights Q1-2026
Income Statement Highlights Q1-2026 ($ in Millions) Q1 2026 Q1 2025 % YoY Change Favorable / (Unfavorable) Net Sales $ 1,121.4 $ 1,004.4 11.7% Gross Profit $ 399.1 $ 365.4 9.2% Gross Profit Margin 35.6% 36.4% (80) bps SG&A as % of net sales 18.8% 19.6% 80 bps Adjusted Operating Income $ 189.0 $ 169.
Slide 6: Americas Welding Segment Highlights
Americas Welding Segment Segment Highlights % YoY ($ in Millions) Q1 2026 Q1 2025 Organic sales increase led by Change price while volume declines Net Sales $ 706.2 $ 653.1 8.1% narrowed with modest volume growth in consumables and automation Adjusted EBIT $ 127.5 $ 124.2 2.6% Margin performance ref
Slide 7: International Welding Segment Highlights
International Welding Segment Segment Highlights % YoY ($ in Millions) Q1 2026 Q1 2025 Organic sales decline primarily Change from a challenging prior year Net Sales $ 227.0 $ 219.1 3.6% comparison in automation and an estimated $5M impact from the Middle East conflict Adjusted EBIT $ 22.7 $ 23.0 (1
Slide 8: The Harris Products Group Segment Highlights
The Harris Products Group Segment Highlights % YoY ($ in Millions) Q1 2026 Q1 2025 Organic sales increase on price Change with volume growth in the retail Net Sales $ 188.2 $ 132.2 42.3% channel Price primarily reflects changes Adjusted EBIT $ 40.8 $ 24.3 67.7% in metal costs, primarily silver, with
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 $186 18.6% 17.8% 17.9% $102 Q1-2025 Q1-2026 March 31, 2025 Dec 31, 2025 March 31, 2026 Higher working capital reflects a temporary increase in inventory investme
Slide 10: Capital Allocation
Capital Allocation1 ($ in Millions) Q1 Capital Allocation & Returns $177 • Growth: $39 million $140 • Return to Shareholders: $101 million • Return on Invested Capital2: 21.5% 107 57 Capital Allocation Strategy 44 Prioritized uses of cash: 43 • Growth investments (organic and M&A) 39 27 • Return to
Slide 11: Increasing Sales Assumption Due to Higher Price
Increasing Sales Assumption Due to Higher Price Continue to expect demand trends to improve through the year Assumptions Risks Raising to HSD% Net sales growth (from MSD%) Net impact of trade & regulatory policies (Organic mix: ~25% volume & ~75% price) Economic and geopolitical headwinds Neutral pr
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 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) 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 March 31, 2026 (In thousands) (Unaudited) 18 Please see the following slide for corresponding footnotes
Slide 19: Footnotes for EBIT and Adjusted EBIT Reconciliation
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 Footnotes for EBIT and EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted E
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