Lincoln Electric Holdings, Inc. · NASDAQ:LECO
Lincoln Electric — Q2 2025 Earnings Presentation
18 slides from Lincoln Electric's earnings presentation, Jul 31, 2025
Slide 1: Q2 2025 Earnings
July 31, 2025 LINCOLN ELECTRIC HOLDINGS, INC. Q2 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: Second Quarter 2025 Highlights
Second Quarter $1.09B 21.7% 2025 Highlights: Net Sales performance Adjusted ROIC performance1 +6.6% vs. prior year; Organic sales +2.9% -200 bps vs. prior year Effectively managing dynamic operating environment on volume 17.9% $144M trends, cost management & $11M in incremental savings Adjusted Oper
Slide 4: Q2 organic sales increase on price actions to mitigate inflation, and growth in HVAC
Q2 organic sales increase on price actions to mitigate inflation, and growth in HVAC and the retail & industrial distribution channels Q2 Organic sales by product area Q2 global end sector performance1 Led by price and consumables 3 of 5 end markets grew, led by price and North American demand Consu
Slide 5: Income Statement Highlights Q2-2025
Income Statement Highlights Q2-2025 ($ in Millions) Q2 2025 Q2 2024 % YoY Change Favorable / (Unfavorable) Net Sales $ 1,088.7 $ 1,021.7 6.6% Gross Profit $ 405.5 $ 383.8 5.7% Gross Profit Margin 37.3% 37.6% (30) bps SG&A as % of net sales 19.4% 20.4% 100 bps Adjusted Operating Income $ 195.1 $ 177.
Slide 6: Americas Welding Segment
Americas Welding Segment % YoY ($ in Millions) Q2 2025 Q2 2024 Change Organic sales increase on Net Sales $ 696.7 $ 648.9 7.4% price and consumable demand, offset by slow Adjusted EBIT $ 137.9 $ 136.7 0.9% capital investment spending. Acquisition sales from Vanair. Adjusted EBIT Margin2 18.6% 19.9%
Slide 7: International Welding Segment
International Welding Segment % YoY ($ in Millions) Q2 2025 Q2 2024 Change Organic sales challenged Net Sales $ 232.8 $ 238.8 (2.5)% by end market trends in portions of EMEA and a challenging prior year Adjusted EBIT $ 30.6 $ 25.7 18.8% comparison in Asia Pacific. Adjusted EBIT Margin2 12.7% 10.4% +
Slide 8: The Harris Products Group
The Harris Products Group % YoY ($ in Millions) Q2 2025 Q2 2024 Change Organic sales higher on volume growth across Net Sales $ 159.1 $ 134.0 18.8% all product areas, led by HVAC and retail channel Adjusted EBIT $ 31.9 $ 24.9 27.9% expansion. Price reflects changes in metal costs Adjusted EBIT Margi
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 $330 $304 104% cash conversion1 18.4% in H1-2025 18.0% $171 16.9% $144 Q2-24 Q2-25 H1-24 H1-25 June 30, 2024 Dec 31, 2024 June 30, 2025 9 1Cash conversio
Slide 10: Capital Allocation
Capital Allocation1 ($ in Millions) $445 Q2 Capital Allocation & Returns $403 161 • Growth: $57 million • Return to Shareholders: $169 million $266 234 • Return on Invested Capital2: 21.7% 50 $226 82 40 Capital Allocation Strategy 127 153 85 153 Prioritized uses of cash: 42 32 32 • Growth investment
Slide 11: Full Year 2025 Assumptions
Full Year 2025 Assumptions Raising assumptions to reflect first half performance and Alloy Steel Assumptions Risks LSD% organic sales growth Net impact of trade & regulatory policies (price partially offset by volumes) Economic and geopolitical headwinds Neutral price/cost Inflation (raw materials &
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 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 charges primarily relate to rationalization plans initiated in Americas W
Slide 16: Non-GAAP Financial Measures: Adjusted 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 June 30, 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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