2026 First Quarter Financial Results Slides (04/30/2026 00: 00

Published: 2026-04-30 07:46:26 ET LECO

Published on 04/30/2026 at 07:46 am EDT

LINCOLN ELECTRIC HOLDINGS, INC.

Q4 & Fu l Year 2025 Earnings & 2030 Targets

February 12, 2026

Lincoln Electric Holdings, Inc.

Q1 2026 Earnings

April 30, 2026

Net sales growth led by price, benefits of FX translation, and the Alloy Steel acquisition

Actions largely offset record commodity inflation, lower volumes, and higher employee costs

Maintained a 16.9% Adjusted operating income margin vs PY with 17% incremental margin

Record Adjusted EPS of $2.50 Maintained strong ROIC

Record Net Sales performance

+12% vs. prior year; Organic sales +8%

Adjusted Operating Income Margin

Steady vs. prior year

Record Adjusted EPS

+16% vs. prior year

Adjusted ROIC performance

Steady vs. prior year

Cash flow from operations

-45% vs. prior year on higher working capital

Returns to shareholders

($44M in dividends + $57M in share repurchases)

Q1 organic sales +8% led by price with improving volume performance in the AW and HPG segments

Q1 Organic sales by product area

Early-stage recovery in Americas

Consumables increase high-teens percent Equipment relatively steady

Automation decreases mid-single digit percent

Q1 global end sector performance1

3 of 5 end markets flat-to-up

General Fabrication up high-30 percent Heavy Industries up mid-single digit percent Energy steady

Non-Resi Structural Steel & Transportation down high-teens percent

1 End sector performance reflects only direct channel organic sales trends

($ 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

$ 169.4

11.5%

Adjusted Operating Income Margin1

16.9%

EPS

$ 2.47

$ 2.10

17.6%

Adjusted EPS1

$ 2.50

$ 2.16

15.7%

Q1 2026 CHANGE IN NET SALES MIX2

Volume

(2.6)%

Price

10.4%

Acq/Div

1.6%

2.3%

TOTAL

11.7%

1 Refer to the appendix for reconciliation of non-GAAP financial measures to U.S. GAAP.

2 Figures may not sum due to rounding.

Segment Highlights

($ in Millions)

Q1 2026

Q1 2025

% YoY

Change

Net Sales

$ 706.2

$ 653.1

8.1%

Adjusted EBIT

$ 127.5

$ 124.2

2.6%

Adjusted EBIT Margin2

17.2%

18.2%

(100) bps

Organic sales increase led by price while volume declines narrowed with modest volume growth in consumables and automation

Q1 2026 CHANGE IN NET SALES MIX1

Margin performance reflects timing of price/cost recovery, higher employee costs and corporate allocations

Volume

(0.4)%

Price

7.6%

Acq/Div

- FX

0.9%

TOTAL

8.1%

1 Figures may not sum due to rounding.

2 Segment Adjusted EBIT Margin is calculated using segment Total Sales, which includes Inter-segment sales. Refer to the earnings release for segment Total Sales.

($ in Millions)

Q1 2026

Q1 2025

% YoY

Change

Net Sales

$ 227.0

$ 219.1

3.6%

Adjusted EBIT

$ 22.7

$ 23.0

(1.5)%

Adjusted EBIT Margin2

9.7%

10.2%

(50) bps

Volume

(9.9)%

Price

0.1%

Acq/Div

7.2%

6.2%

TOTAL

3.6%

Q1 2026 CHANGE IN NET SALES MIX1

1 Figures may not sum due to rounding.

2 Segment Adjusted EBIT Margin is calculated using segment Total Sales, which includes Inter-segment sales. Refer to the earnings release for segment Total Sales.

Segment Highlights

Organic sales decline primarily from a challenging prior year comparison in automation and an estimated $5M impact from the Middle East conflict

Acquisition benefit from Alloy Steel

(ASI)

Margin performance reflects the benefit of ASI offset by lower volumes and higher corporate allocations

Segment Highlights

($ in Millions)

Q1 2026

Q1 2025

% YoY

Change

Net Sales

$ 188.2

$ 132.2

42.3%

Adjusted EBIT

$ 40.8

$ 24.3

67.7%

Adjusted EBIT Margin2

21.2%

17.9%

+330 bps

Organic sales increase on price with volume growth in the retail channel

Price primarily reflects changes in metal costs, primarily silver, with a neutral price/cost position

Q1 2026 CHANGE IN NET SALES MIX1

Margin increase is primarily due to SG&A leverage from higher sales dollars and mix

Volume

(1.0)%

Price

41.4%

Acq/Div

- FX

1.9%

TOTAL

42.3%

1 Figures may not sum due to rounding

2 Segment Adjusted EBIT Margin is calculated using segment Total Sales, which includes Inter-segment sales. Refer to the earnings release for segment Total Sales.

Cash Flow from Operations

($ in Millions)

Average Operating Working

Capital to Net Sales Ratio

$186

$102

18.6%

17.8%

17.9%

Q1-2025 Q1-2026

March 31, 2025 Dec 31, 2025 March 31, 2026

Higher working capital reflects a temporary increase in inventory investments to support customer service levels

Capital Allocation1

($ in Millions)

Q1 Capital Allocation & Returns

$177

107

$140

Growth: $39 million

Return to Shareholders: $101 million

Return on Invested Capital2: 21.5%

Capital Allocation Strategy

Q1-2025 Q1-2026

Prioritized uses of cash:

Growth investments (organic and M&A)

Return to shareholders

Dividend: +5.3% 2026 pay out rate

Share repurchases

1 Figures may not sum due to rounding

2 Adjusted Return on Invested Capital. Please refer to the appendix for reconciliation of Non-GAAP metrics.

Increasing Sales Assumption Due to Higher Price

Continue to expect demand trends to improve through the year

Assumptions

Raising to HSD% Net sales growth (from MSD%)

(Organic mix: ~25% volume & ~75% price)

Neutral price/cost

Adj Op income margin slight improvement on mid-20% incremental margin

Interest expense, net $50-55 million Low-to-mid 20% tax rate

$110 to $130 million in cap-ex 100% cash conversion

Share repurchases (maintenance & opportunistic)

Risks

Net impact of trade & regulatory policies Economic and geopolitical headwinds Inflation (raw materials & labor)

Opportunities

(not in assumptions)

Acquisitions

Contact:

Amanda Butler

LINOfliLN

ELECTRIC

V/ce President, Invector Relations & Communications

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 measures.

Management uses non-GAAP measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of the Company's core business. Management believes that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against other companies in its industry more meaningfully. Furthermore, management believes that non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently.

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)

Please see the following slide for corresponding footnotes

(continued)

Footnotes for 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

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.

2026 and 2025 net charges primarily relate to rationalization plans within all three segments.

Transaction costs primarily relate to acquisitions and are included in Selling, general & administrative expenses.

Costs relate to acquisitions and are included in Cost of goods sold.

Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate. The applicable tax rates reflect the taxable jurisdiction and nature of each Special item.

Adjusted net operating profit after taxes and Adjusted ROIC are non-GAAP financial measures. Refer to Non-GAAP Information section.

Adjusted Return on Invested

Capital (ROIC)

(In thousands) (Unaudited)

1) Free cash flow and cash conversion are non-GAAP financial measures. Refer to Non-GAAP

Information section.

Cash Conversion

(In thousands) (Unaudited)

EBIT and Adjusted EBIT Reconciliation - Three Months Ended March 31, 2026

(In thousands) (Unaudited)

Please see the following slide for corresponding footnotes

EBIT is defined as Operating income plus Other income.

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.

Special items in 2026 primarily reflect Rationalization and asset impairments net charges of $573 in Americas Welding and $1,772 in International Welding, and a net gain of $182 in Harris Products Group. In addition, there were transaction costs of $653 in Corporate/Eliminations.

Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $2,135 in Americas Welding, $1,552 in International Welding and $178 in Harris Products Group, as well as transaction costs of $802 in Corporate/Eliminations.

(continued)

Footnotes for EBIT and

Adjusted EBIT Reconciliation -

Three Months Ended March 31, 2026

Disclaimer

Lincoln Electric Holdings Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 11:44 UTC.