Lincoln Electric Holdings, Inc. · NASDAQ:LECO
Lincoln Electric — Q3 2026 Earnings Presentation
20 slides from Lincoln Electric's earnings presentation, Oct 27, 2026
Slide 1: Q3 2026 Earnings
LINCOLN ELECTRIC HOLDINGS, INC. Lincoln Electric Holdings, Inc. Q3 2026 Q3 2026 Earnings Earnings October 27, 2026 October 27, 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: Third Quarter 2026 Highlights
Third Quarter 2026 $1.2B 23.9% Highlights Record Net Sales performance Adjusted ROIC performance +15.1% vs. prior year; +170 bps vs. prior year Organic sales +14.5% Record net sales with 14.5% organic growth led by volumes Adjusted operating income margin +60 bps primarily on sales leverage 18.0% $2
Slide 4: Q3 organic sales driven by volume growth in all product groups
Q3 organic sales driven by volume growth in all 3 product groups, led by increased capital spending Q3 Organic sales by product area Q3 global end sector performance1 Solid Americas & HPG momentum All end markets growing DD% YoY Consumables increase mid-teens percent General Fabrication up mid-20 pe
Slide 5: New solutions launched at FABTECH addressing customers' pain points
New solutions launched at FABTECH addressing customers’ productivity, skilled welder shortage & quality pain points Arc Tracker Air is a Hot Wire Submerged InstructArc XR XpertLINC physical AI technology wireless, on-premise data Arc Welding (SAW) (Extended Reality) platform eliminates programming a
Slide 6: Income Statement Highlights Q3-2026
Income Statement Highlights Q3-2026 ($ in Millions) Q3 2026 Q3 2025 % YoY Change Favorable / (Unfavorable) Net Sales $ 1,221.3 $ 1,061.2 15.1% Gross Profit $ 425.0 $ 389.3 9.2% Gross Profit Margin 34.8% 36.7% (190) bps SG&A as % of net sales 16.9% 19.5% 260 bps Adjusted Operating Income $ 220.0 $ 18
Slide 7: Americas Welding Segment Highlights
Americas Welding Segment Segment Highlights % YoY ($ in Millions) Q3 2026 Q3 2025 13% volume growth led by high- Change teens percent growth in Equipment Net Sales $ 801.3 $ 691.8 15.8% and Automation Price contribution reflects the May Adjusted EBIT $ 166.5 $ 131.6 26.5% price action Adjusted EBIT
Slide 8: International Welding Segment Highlights
International Welding Segment Segment Highlights % YoY ($ in Millions) Q3 2026 Q3 2025 Organic sales increased 1%, as Change higher price and Asia Pacific Net Sales $ 226.9 $ 219.6 3.3% growth offset lower EMEA volumes Adjusted EBIT $ 24.0 $ 25.8 (7.2)% Acquisitions (Alloy Steel) contributed 2.3% to
Slide 9: The Harris Products Group Segment Highlights
The Harris Products Group Segment Highlights % YoY ($ in Millions) Q3 2026 Q3 2025 Volume growth led by HVAC Change demand and gas equipment Net Sales $ 193.1 $ 149.8 28.9% Price reflects higher YoY metal costs, primarily silver Adjusted EBIT $ 34.1 $ 28.1 21.4% Adjusted EBIT increased on SG&A Adjus
Slide 10: Cash Flows & Improved Working Capital
Cash Flows & Improved Working Capital Cash Flows from Operations Average Operating Working ($ in Millions) Capital to Net Sales Ratio $566 $572 18.6% 17.9% 16.6% $237 $216 Q3-25 Q3-26 9M-25 9M-26 Sept 30, 2025 Dec 31, 2025 Sept 30, 2026 107% Cash conversion in Q3; working capital ratio improved to 1
Slide 11: Capital Allocation
Capital Allocation1 ($ in Millions) $634 Q3 Capital Allocation & Returns $475 • Growth: $41 million 286 • Return to Shareholders: $143 million 232 • Return on Invested Capital2: 23.9% 126 $230 53 $184 Capital Allocation Strategy 131 42 137 99 104 43 Prioritized uses of cash: 84 112 32 41 • Growth in
Slide 12: Increasing Full Year Sales & Cap-Ex Assumptions
Increasing Full Year Sales & Cap-Ex Assumptions Reflecting stronger demand trends 2026 Assumptions Risks Full year Net sales growth at low-teens % Net impact of trade & regulatory policies (Organic sales mix: 40% volume; 60% price) Commodity prices Neutral price/cost in Q4-2026 Economic and geopolit
Slide 13: Contact
Contact: Amanda Butler Vice President, Investor Relations & Communications Amanda_Butler@lincolnelectric.com 216.383.2534 13
Slide 14: 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 15: Non-GAAP Financial Measures
Non-GAAP Financial Three months ended Sept. 30 Nine months ended Sept. 30 2026 2025 2026 2025 Operating income as reported $211,376 $176,657 $618,178 $533,719 Measures Special items (pre-tax): Rationalization and asset impairment net charges (2) 7,853 5,831 13,497 12,238 Transaction costs (3) 765 45
Slide 16: 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 17: Non-GAAP Financial Measures: Return on Invested Capital
Non-GAAP Return on Invested Capital Twelve months ended Sept. 30 Financial Net income as reported $ 2026 575,269 2025 $ 524,740 Measures Plus: Interest expense (after-tax) Less: Interest income (after-tax) Net operating profit after taxes $ 42,191 4,405 613,055 43,488 6,181 $ 562,047 Special items:
Slide 18: Non-GAAP Financial Measures: Cash Conversion
Non-GAAP Financial Measures Cash Conversion Three months ended Sept. 30 Nine months ended Sept. 30 2026 2025 2026 2025 Net cash provided by operating activities $215,757 $236,687 $571,691 $566,208 Capital expenditures (41,219) (31,636) (111,819) (84,028) Cash Conversion Free cash flow (1) $174,538 $
Slide 19: Segment EBIT and Adjusted EBIT Reconciliation
Segment EBIT Americas International The Harris Corporate / Consolidated Welding Welding Products Group Eliminations EBIT and Adjusted EBIT Three months ended September 30, 2026 Net sales $801,264 $226,904 $193,113 $ — $1,221,281 Reconciliation – Three Months Inter-segment sales 25,959 6,502 3,977 (3
Slide 20: 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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