Lincoln Electric Reports Second Quarter 2025 Results
'I am pleased to report solid second quarter results, which demonstrate how we are effectively managing the business in a dynamic operating environment while positioning for long-term growth and margin expansion,' said Steven B. Hedlund, Chair & CEO.
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Second quarter 2025 sales increased 6.6% to $1,088.7 million reflecting a 2.9% increase in organic sales and 3.0% benefit from acquisitions. Operating income for the second quarter 2025 was $192.1 million, or 17.6% of sales. This compares with operating income of $148.8 million, or 14.6% of sales, in the prior year period. Excluding special items, adjusted operating income was $195.1 million, or 17.9% of sales, as compared with $177.6 million, or 17.4% of sales, in the prior year period.
'I am pleased to report solid second quarter results, which demonstrate how we are effectively managing the business in a dynamic operating environment while positioning for long-term growth and margin expansion,' said Steven B. Hedlund, Chair, President and Chief Executive Officer. 'With the progression of the business, our operating agility and strong cash generation, we are well positioned to continue to create value for our shareholders through the cycle.'
Six Months 2025 Summary
Net income for the six months ended June 30, 2025 was $261.9 million, or $4.66 EPS, which includes special item after-tax net charges of $5.6 million, or $0.10 EPS. This compares with prior year period net income of $225.1 million, or $3.91 EPS, which included special item after-tax net charges of $37.8 million, or $0.66 EPS. Excluding special items, adjusted net income for the six months ended June 30, 2025 was $267.5 million, or $4.76 EPS. This compares with adjusted net income of $262.9 million, or $4.57 adjusted EPS, in the prior year period.
Sales increased 4.5% to $2,093.1 million in the six months ended June 30, 2025 primarily reflecting a 0.8% increase in organic sales and 3.9% benefit from acquisitions. Operating income for the six months ended June 30, 2025 was $357.1 million, or 17.1% of sales. This compares with operating income of $313.9 million, or 15.7% of sales, in the prior year period. Excluding special items, adjusted operating income was $364.6 million, or 17.4% of sales, as compared with $349.0 million, or 17.4% of sales, in the prior year period.
Other Matters
The Company has entered into an agreement to acquire the remaining 65% of Alloy Steel Australia (Int) Pty Ltd. ('Alloy Steel'), for approximately $90 million, which is expected to close on August 1, 2025, subject to the satisfaction of customary closing conditions. This transaction will result in the full ownership of Alloy Steel following the Company's April 1, 2025, acquisition of a 35% ownership interest. Alloy Steel supplies proprietary technology, engineering services and digital monitoring to the mining sector. Alloy Steel has annual revenues of approximately $50 million and their results will be reported in the International Welding segment. The acquisition is expected to be accretive to Company earnings, excluding transaction costs, at approximately $0.13 to $0.15 per diluted common share on an annual basis.
Webcast Information
A conference call to discuss second quarter 2025 financial results will be webcast live today, July 31, 2025, at 10:00 a.m., Eastern Time. Those interested in participating via webcast in listen-only mode can access the event here or on the Company's Investor Relations home page at https://ir.lincolnelectric.com. For participants who would like to participate via telephone, please dial (888) 440-4368 (domestic) or (646) 960-0856 (international) and use confirmation code 6709091. A replay of the earnings call will be available via webcast on the Company's website.
About Lincoln Electric
Lincoln Electric is the world leader in the engineering, design, and manufacturing of advanced arc welding solutions, automated joining, assembly and cutting systems, plasma and oxy-fuel cutting equipment, and has a leading global position in brazing and soldering alloys. Lincoln is recognized as the Welding Expert™ for its leading materials science, software development, automation engineering, and application expertise, which advance customers' fabrication capabilities to help them build a better world. Headquartered in Cleveland, Ohio, Lincoln operates 71 manufacturing and automation system integration locations across 20 countries and maintains a worldwide network of distributors and sales offices serving customers in over 160 countries. For more information about Lincoln Electric and its products and services, visit the Company's website at https://www.lincolnelectric.com.
Non-GAAP Information
Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate, adjusted diluted earnings per share ('adjusted EPS'), Organic sales, Cash conversion, adjusted net operating profit after taxes and adjusted return on invested capital ('adjusted ROIC') 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.
Forward-Looking Statements
The Company's expectations and beliefs concerning the future contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of words such as 'may,' 'will,' 'expect,' 'intend,' 'estimate,' 'anticipate,' 'believe,' 'forecast,' 'guidance' or words of similar meaning. Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company's operating results. The factors include, but are not limited to: general economic, financial and market conditions; the effectiveness of commercial and operating initiatives; the effectiveness of information systems and cybersecurity programs; presence of artificial intelligence technologies; completion of planned divestitures; interest rates; disruptions, uncertainty or volatility in the credit markets that may limit our access to capital; currency exchange rates and devaluations; adverse outcome of pending or potential litigation; actual costs of the Company's rationalization plans; the Company's ability to complete acquisitions, including the Company's ability to successfully integrate acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity; the effects of changes in tax law, including any changes from the new legislation implemented in the One Big Beautiful Bill Act; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, the ongoing geopolitical conflicts, political unrest, acts of terror, natural disasters and pandemics on the Company or its customers, suppliers and the economy in general. For additional discussion, see 'Item 1A. Risk Factors' in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and on Form 10-Q for the quarter ended March 31, 2025.
Fav (Unfav) to
Six Months Ended June 30,
Prior Year
2025
% of Sales
2024
% of Sales
$
%
Net sales
$
2,093,061
100.0
%
$
2,002,880
100.0
%
$
90,181
4.5
%
Cost of goods sold
1,322,066
63.2
%
1,250,668
62.4
%
(71,398)
(5.7)
%
Gross profit
770,995
36.8
%
752,212
37.6
%
18,783
2.5
%
Selling, general & administrative expenses
407,526
19.5
%
407,232
20.3
%
(294)
(0.1)
%
Rationalization and asset impairment charges
6,407
0.3
%
31,095
1.6
%
24,688
79.4
%
Operating income
357,062
17.1
%
313,885
15.7
%
43,177
13.8
%
Interest expense, net
24,746
1.2
%
19,440
1.0
%
(5,306)
(27.3)
%
Other income
4,478
0.2
%
709
—
3,769
531.6
%
Income before income taxes
336,794
16.1
%
295,154
14.7
%
41,640
14.1
%
Income taxes
74,911
3.6
%
70,031
3.5
%
(4,880)
(7.0)
%
Effective tax rate
22.2
%
23.7
%
1.5
%
Net income
$
261,883
12.5
%
$
225,123
11.2
%
$
36,760
16.3
%
Basic earnings per share
$
4.69
$
3.96
$
0.73
18.4
%
Diluted earnings per share
$
4.66
$
3.91
$
0.75
19.2
%
Weighted average shares (basic)
55,801
56,841
Weighted average shares (diluted)
56,242
57,505
Expand
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands)
(Unaudited)
Balance Sheet Highlights
Selected Consolidated Balance Sheet Data
June 30, 2025
December 31, 2024
Cash and cash equivalents
$
299,481
$
377,262
Accounts receivable, net
554,277
481,979
Inventories
621,440
544,037
Total current assets
1,725,226
1,645,281
Property, plant and equipment, net
660,672
619,181
Total assets
3,727,369
3,520,142
Trade accounts payable
375,833
296,590
Total current liabilities (1)
1,025,239
878,802
Long-term debt, less current portion
1,150,395
1,150,551
Total equity
1,379,613
1,327,433
Operating Working Capital
June 30, 2025
December 31, 2024
Average operating working capital to Net sales (2)
18.4
%
16.9
%
Invested Capital
June 30, 2025
December 31, 2024
Short-term debt (1)
$
105,323
$
110,524
Long-term debt, less current portion
1,150,395
1,150,551
Total debt
1,255,718
1,261,075
Total equity
1,379,613
1,327,433
Invested capital
$
2,635,331
$
2,588,508
Total debt / invested capital
47.6
%
48.7
%
Expand
(1)
Includes current portion of long-term debt.
(2)
Average operating working capital to Net sales is defined as the sum of Accounts receivable, Inventories and contract assets less Trade accounts payable and contract liabilities as of period end divided by annualized rolling three months of Net sales.
Expand
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Non-GAAP Financial Measures
Three Months Ended
June 30,
Six Months Ended
June 30,
Operating income as reported
$
192,144
$
148,838
$
357,062
$
313,885
Special items (pre-tax):
Rationalization and asset impairment charges (2)
2,542
26,490
6,407
31,095
Acquisition transaction costs (3)
429
2,182
1,231
3,944
Amortization of step up in value of acquired inventories (4)
—
112
(140)
112
Adjusted operating income (1)
$
195,115
$
177,622
$
364,560
$
349,036
As a percent of net sales
17.9
%
17.4
%
17.4
%
17.4
%
Net income as reported
$
143,396
$
101,708
$
261,883
$
225,123
Special items:
Rationalization and asset impairment charges (2)
2,542
26,490
6,407
31,095
Acquisition transaction costs (3)
429
2,182
1,231
3,944
Amortization of step up in value of acquired inventories (4)
—
112
(140)
112
Loss on asset disposal (5)
—
4,950
—
4,950
Tax effect of Special items (6)
(755)
(1,182)
(1,913)
(2,308)
Adjusted net income (1)
145,612
134,260
267,468
262,916
Interest expense, net
12,619
10,661
24,746
19,440
Income taxes as reported
40,163
34,916
74,911
70,031
Tax effect of Special items (6)
755
1,182
1,913
2,308
Adjusted EBIT (1)
$
199,149
$
181,019
$
369,038
$
354,695
Effective tax rate as reported
21.9
%
25.6
%
22.2
%
23.7
%
Net special item tax impact
0.0
%
(4.4)
%
0.1
%
(2.1)
%
Adjusted effective tax rate (1)
21.9
%
21.2
%
22.3
%
21.6
%
Diluted earnings per share as reported
$
2.56
$
1.77
$
4.66
$
3.91
Special items per share
0.04
0.57
0.10
0.66
Adjusted diluted earnings per share (1)
$
2.60
$
2.34
$
4.76
$
4.57
Weighted average shares (diluted)
55,968
57,366
56,242
57,505
Expand
(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.
(2)
2025 charges primarily relate to rationalization plans initiated in Americas Welding and International Welding. 2024 charges primarily relate to rationalization plans initiated within International Welding and the Harris Products Group.
(3)
Transaction costs related to acquisitions which are included in Selling, general & administrative expenses.
(4)
Costs related to acquisitions which are included in Cost of goods sold.
(5)
Loss on asset disposal included in Other income (expense).
(6)
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.
Expand
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Non-GAAP Financial Measures
Twelve Months Ended June 30,
Return on Invested Capital
2025
2024
Net income as reported
$
502,868
$
511,110
Plus: Interest expense (after-tax)
42,688
36,607
Less: Interest income (after-tax)
6,636
7,654
Net operating profit after taxes
$
538,920
$
540,063
Special Items:
Rationalization and asset impairment charges
31,172
16,237
Acquisition transaction costs
4,332
3,944
Pension settlement charges
3,792
845
Amortization of step up in value of acquired inventories
4,771
4,964
Loss on asset disposal
—
4,950
Tax effect of Special items (2)
(11,118)
2,357
Adjusted net operating profit after taxes (1)
$
571,869
$
573,360
Invested Capital
June 30, 2025
June 30, 2024
Short-term debt
$
105,323
$
6,254
Long-term debt, less current portion
1,150,395
1,098,430
Total debt
1,255,718
1,104,684
Total equity
1,379,613
1,312,906
Invested capital
$
2,635,331
$
2,417,590
Return on invested capital as reported
20.4
%
22.3
%
Adjusted return on invested capital (1)
21.7
%
23.7
%
Expand
(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 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.
Expand
Lincoln Electric Holdings, Inc.
Financial Highlights
(In thousands, except per share amounts)
(Unaudited)
Condensed Consolidated Statements of Cash Flows
Six Months Ended
June 30,
2025
2024
OPERATING ACTIVITIES:
Net income
$
261,883
$
225,123
Adjustments to reconcile Net income to Net cash provided by operating activities:
Rationalization and asset impairment net charges
675
23,751
Depreciation and amortization
48,246
42,451
Other non-cash items, net
(14,919
)
16,535
Changes in operating assets and liabilities, net of effects from acquisitions:
Increase in accounts receivable
(52,208
)
(14,484
)
Increase in inventories
(47,648
)
(27,626
)
Increase in other current assets
(3,408
)
(5,153
)
Increase in trade accounts payable
68,092
28,956
Increase (decrease) in other current liabilities
68,579
(5,092
)
Net change in other long-term assets and liabilities
229
19,520
NET CASH PROVIDED BY OPERATING ACTIVITIES
329,521
303,981
INVESTING ACTIVITIES:
Capital expenditures
(52,392
)
(49,395
)
Acquisition of businesses, net of cash acquired
(32,309
)
(152,654
)
Proceeds from sale of property, plant and equipment
5,231
1,303
NET CASH USED BY INVESTING ACTIVITIES
(79,470
)
(200,746
)
FINANCING ACTIVITIES:
Payments on short-term borrowings
(5,206
)
(578
)
Proceeds from long-term borrowings
—
400,000
Payments on long-term borrowings
(169
)
(400,339
)
Proceeds from exercise of stock options
6,394
24,981
Purchase of shares for treasury
(233,824
)
(160,820
)
Cash dividends paid to shareholders
(84,904
)
(81,696
)
NET CASH USED BY FINANCING ACTIVITIES
(317,709
)
(218,452
)
Effect of exchange rate changes on Cash and cash equivalents
(10,123
)
(5,898
)
Cash and cash equivalents at beginning of period
377,262
393,787
Cash and cash equivalents at end of period
$
299,481
$
272,672
Cash dividends paid per share
$
1.50
$
1.42
Expand
Lincoln Electric Holdings, Inc.
Segment Highlights (1)
(In thousands)
(Unaudited)
Net sales
$
696,730
$
232,824
$
159,119
$
—
$
1,088,673
Inter-segment sales
43,391
7,641
5,110
(56,142)
—
Total sales
$
740,121
$
240,465
$
164,229
$
(56,142)
$
1,088,673
Net income
$
143,396
As a percent of total sales
13.2
%
EBIT (1)
$
137,010
$
28,999
$
31,798
$
(1,629)
$
196,178
As a percent of total sales
18.5
%
12.1
%
19.4
%
18.0
%
Special items charges (3)
905
1,551
86
429
2,971
Adjusted EBIT (2)
$
137,915
$
30,550
$
31,884
$
(1,200)
$
199,149
As a percent of total sales
18.6
%
12.7
%
19.4
%
18.3
%
Three months ended June 30, 2024
Net sales
$
648,936
$
238,758
$
133,989
$
—
$
1,021,683
Inter-segment sales
37,800
8,849
3,272
(49,921)
—
Total sales
$
686,736
$
247,607
$
137,261
$
(49,921)
$
1,021,683
Net income
$
101,708
As a percent of total sales
10
%
EBIT (1)
$
136,297
$
(5,525)
$
25,063
$
(8,550)
$
147,285
As a percent of total sales
19.8
%
(2.2)
%
18.3
%
14.4
%
Special items charges (4)
354
31,234
(140)
2,286
33,734
Adjusted EBIT (2)
$
136,651
$
25,709
$
24,923
$
(6,264)
$
181,019
As a percent of total sales
19.9
%
10.4
%
18.2
%
17.7
%
Expand
(1)
EBIT is defined as Operating income plus Other income.
(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.
(3)
Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $905 in Americas Welding, $1,551 in International Welding and $86 in Harris Products Group, as well as acquisition transaction costs of $429 in Corporate/Eliminations.
Expand
Lincoln Electric Holdings, Inc.
Segment Highlights
(In thousands)
(Unaudited)
Six months ended June 30, 2025
Net sales
$
1,349,837
$
451,885
$
291,339
$
—
$
2,093,061
Inter-segment sales
73,763
14,473
9,094
(97,330)
—
Total sales
$
1,423,600
$
466,358
$
300,433
$
(97,330)
$
2,093,061
Net income
$
261,883
As a percent of total sales
12.5
%
EBIT (1)
$
259,073
$
50,599
$
55,949
$
(4,081)
$
361,540
As a percent of total sales
18.2
%
10.8
%
18.6
%
17.3
%
Special items charges (3)
3,040
2,963
264
1,231
7,498
Adjusted EBIT (2)
$
262,113
$
53,562
$
56,213
$
(2,850)
$
369,038
As a percent of total sales
18.4
%
11.5
%
18.7
%
17.6
%
Six months ended June 30, 2024
Net sales
$
1,273,035
$
474,519
$
255,326
$
—
$
2,002,880
Inter-segment sales
67,778
17,257
6,365
(91,400)
—
Total sales
$
1,340,813
$
491,776
$
261,691
$
(91,400)
$
2,002,880
Net income
$
225,123
As a percent of total sales
11.2
%
EBIT (1)
$
272,396
$
19,182
$
43,406
$
(20,390)
$
314,594
As a percent of total sales
20.3
%
3.9
%
16.6
%
15.7
%
Special items charges (4)
354
34,304
1,396
4,047
40,101
Adjusted EBIT (2)
$
272,750
$
53,486
$
44,802
$
(16,343)
$
354,695
As a percent of total sales
20.3
%
10.9
%
17.1
%
17.7
%
Expand
(1)
EBIT is defined as Operating income plus Other income.
(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.
(3)
Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $3,040 in Americas Welding, $3,103 in International Welding and $264 in Harris Products Group, as well as acquisition transaction costs of $1,231 in Corporate/Eliminations.
(4)
Special items in 2024 primarily reflect rationalization net charges of $29,354 in International Welding, primarily due to the impact of the Company's disposition of its Russian entity, and $1,396 in the Harris Products Group, a loss on asset disposal of $4,950 recorded to Other income (expense) in International Welding, and acquisition transaction costs of $3,944 in Corporate/Eliminations.
Expand
Six Months Ended June 30 th Change in Net Sales by Segment
Operating Segments
Americas Welding
$
1,273,035
$
(47,086)
$
55,634
$
77,519
$
(9,265)
$
1,349,837
International Welding
474,519
(29,820)
1,680
1,130
4,376
451,885
The Harris Products Group
255,326
15,458
21,392
—
(837)
291,339
% Change
Americas Welding
(3.7)
%
4.4
%
6.1
%
(0.8)
%
6.0
%
International Welding
(6.3)
%
0.4
%
0.2
%
0.9
%
(4.8)
%
The Harris Products Group
6.1
%
8.4
%
—
(0.4)
%
14.1
%
Consolidated
(3.1)
%
3.9
%
3.9
%
(0.2)
%
4.5
%
Expand
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Streamex Exchange Corporation, a gold-tokenization platform integrating physical bullion into the digital economy, announced today its plan to integrate the stability of physical gold into the digital economy, introducing a regulated, blockchain-based asset designed to be programmable, liquid, and borderless. The company's leadership combines financial market strategy and mining industry expertise. Henry McPhee, Co-Founder and Chief Executive Officer, oversees the platform's macro-financial direction, while Morgan Lekstrom, Executive Chairman and Co-Founder, brings more than two decades of international mining experience. Together, their combined backgrounds in Wall Street strategy, global mining operations, and blockchain infrastructure provide Streamex with a foundation for advancing its gold-tokenization initiative. Henry McPhee – The Strategist Behind the Vision McPhee has established a reputation for anticipating macroeconomic turning points and building compliant, investor-ready platforms to address them. Under his leadership, Streamex has: Secured over $1.1 billion in financing commitments to build its gold-backed digital currency platform. Executed a strategic merger with BioSig Technologies, shifting the NASDAQ-listed company from biotech to digital asset infrastructure. Acquired a FINRA- and SEC-registered broker-dealer to ensure full regulatory compliance for issuance, trading, and custody of tokenized assets. 'Henry is building the foundation for a parallel financial system,' noted one market analyst. 'It's gold's return to center stage, but in a way that will integrate seamlessly into both existing financial networks and emerging digital economies.' Morgan Lekstrom – Mining Expertise Driving Digital Gold Mr. Lekstrom brings over 20 years of mining industry experience spanning executive leadership, project development, operations, and engineering. He has a proven track record of delivering growth and transformation, most recently building NexGold Mining Corp. into a near-term Canadian gold producer with a clear path to constructing two new Canadian gold mines. This was achieved through strategic deleveraging, debt restructuring, and a new corporate direction that included multiple back-to-back mergers and acquisitions, first of Blackwolf Copper and Gold Ltd., then Treasury Metals Inc., and later Signal Gold Inc. in 2024. His career also includes senior technical and leadership roles at major international projects: Contributing to operations at Freeport McMoran's Grasberg site in Indonesia. Supporting engineering and development at Rio Tinto's Oyu Tolgoi Project in Mongolia. Leading redevelopment efforts for an underground mine in Ghana, West Africa, with Golden Star Resources. Serving as Engineering Manager at Sabina Gold & Silver Corp. in Canada. Mr. Lekstrom's breadth of experience across continents and mining methods ensures Streamex's gold-backed tokens are supported by robust sourcing, operational integrity, and industry best practices. Advancing a New Monetary Instrument Streamex's gold-tokenization platform is designed to offer a programmable, liquid, and borderless store of value, backed by audited, vault-held physical gold. Tokens are fractionalized, instantly transferable, and built to integrate seamlessly with both decentralized finance (DeFi) networks and traditional financial markets. 'This is more than a technology initiative, it is a shift in how gold can participate in global capital flows,' said Henry McPhee, Co-Founder and CEO of Streamex. 'Morgan's depth of mining expertise strengthens our ability to connect physical reserves with the transparency, efficiency, and accessibility of blockchain technology.' By securing a NASDAQ listing, Streamex operates under established U.S. regulatory oversight, positioning itself uniquely among tokenization initiatives. This structure provides institutional investors with a compliant pathway to engage in real-world asset tokenization, while reinforcing market confidence. Why the Timing Matters Global macroeconomic conditions, marked by inflationary pressures, currency volatility, and increasing demand for stable, asset-backed digital instruments, create a fertile environment for gold-based tokenization. Streamex's model addresses these conditions by delivering a compliant, scalable bridge between commodity markets and the blockchain economy. About Streamex Streamex Exchange Corporation is a real-world asset tokenization company specializing in commodities. The company's infrastructure supports the issuance, trading, and settlement of blockchain-based assets backed by physical reserves, beginning with gold. Led by a team of seasoned executives from the financial, commodities, and blockchain industries, Streamex's mission is to bring commodity markets on-chain, enhancing liquidity, accessibility, and transparency for investors and institutions worldwide. About Streamex Exchange Corporation Streamex is a real-world asset (RWA) tokenization company focused in the commodities space. With the goal to bring commodity markets on chain, Streamex has developed primary issuance and exchange infrastructure that will revolutionize commodity finance. Streamex is led by a group of highly successful and seasoned executives from financial, commodities and blockchain industries. Streamex believes the future of finance lies in tokenization, innovative investment strategies, and decentralized markets. By merging advanced financial technologies with blockchain transparency, Streamex has created infrastructure and solutions that enhance liquidity, accessibility, and efficiency. Streamex's goal is to bridge the gap between traditional finance and the digital economy, unlocking new opportunities for investors and institutions worldwide. Contact
3 minutes ago
Why the stock market shrugged off weak data, recession fears
Weak jobs data came out hours before President Donald Trump fired the head of labor statistics. A report on gross domestic product indicated a slowdown of growth over the first half of the year. A sweeping round of tariffs hit nearly 70 countries. These events -- all within the last last week -- prompted some analysts to warn of a recession and others to raise concerns about the political independence of gold-standard U.S. economic data. The stock market, however, hardly blinked. The tech-heavy Nasdaq has ticked up 0.4% since the end of trading last Tuesday, a day before the GDP report marked the first in a series of major developments. Over that same period, the S&P 500 has dropped 0.6%, while the Dow Jones Industrial Average has fallen 1.4%. Despite mixed results, the indexes remain well above where they stood three months ago. The Nasdaq has surged 20% since May, while the S&P 500 has jumped 13%. The Dow has climbed 7% over that period. Analysts who spoke to ABC News attributed investor optimism to robust corporate profits, the prospect of interest rate cuts at the Federal Reserve and an abiding expectation that Trump will not return to the steep tariffs initially rolled out in April. The resilient stock market has generated a momentum of its own, some analysts added. "The mindset of the market is to embrace risk because that brings rewards rather than losses -- keep shrugging it off," Steve Sosnick, chief strategist at trading firm Interactive Brokers, told ABC News. "That can paper over a lot of concerns." The economy added an average of about 35,000 jobs over three months ending in July, which marks a major slowdown from roughly 128,000 jobs added monthly over the prior three months, U.S. Bureau of Labor Statistics data on Friday showed. Employers are hiring at their slowest pace since 2020. Two days earlier, fresh GDP data indicated average annualized growth of 1.2% over the first half of 2025, well below 2.8% growth last year. Hours after the release of the jobs report on Friday, Trump fired BLS Commissioner Erika McEntarfer, an appointee of former President Joe Biden who was confirmed by a bipartisan vote in the Senate in 2024. In a social media post, Trump volleyed sharp criticism and baseless accusations at McEntarfer, claiming without evidence that the data had been "manipulated." The jobs report featured revisions of previous months' data, which is a routine practice. "Trump touted his economic performance in a social media post: "The Economy is BOOMING under 'TRUMP' despite a Fed that also plays games, this time with Interest Rates." McEntarfer did not immediately reply to ABC News' request for comment. "It has been the honor of my life to serve as Commissioner of BLS alongside the many dedicated civil servants tasked with measuring a vast and dynamic economy," McEntarfer said in a social media post after her dismissal. "It is vital and important work and I thank them for their service to this nation." The major stock indexes fell markedly last Friday, suggesting concern among traders about the weak jobs report. Within days, however, stocks had largely recovered the losses. Alongside mixed signals from the economy, a series of major companies have released strong earnings, indicating a resilient corporate bottom line. The list of high-performers includes tech giants like Meta and Microsoft, which account for a disproportionately large share of the S&P 500. "The markets like to focus on earnings," Ed Yardeni, the president of market advisory firm Yardeni Research and former chief investment strategist at Deutsche Bank's U.S. equities division, told ABC News. "They've been pretty impressive considering some of the economic data has looked soft of late." The outlook for the economy remains uncertain, leaving open the possibility of continued growth and soaring stocks, some analysts said. The economy has largely averted the type of widespread job losses that often accompany a recession. Consumer spending, which accounts for about two-thirds of economic activity, ticked higher over three months ending in June. If the economy sours, the Federal Reserve will likely move forward with interest rate cuts, buoying the market, Sosnick said. "There's a belief that there's nothing better for the market than a rate cut," Sosick added. Still, the combination of elevated tariffs and sluggish hiring could hurtle the U.S. toward an economic double-whammy known as " stagflation," in which the economy slows while prices rise. Potential stagflation poses difficulty for the Fed. If the Fed raises interest rates as a means of protecting against tariff-induced inflation under such a scenario, it risks stifling borrowing and slowing the economy further. On the other hand, if the Fed lowers rates to stimulate the economy in the face of a potential slowdown, it threatens to boost spending and worsen inflation. "There's definitely a possibility the market is getting it wrong on inflation," Jay Ritter, a professor of finance at the University of Florida, told ABC News. For now, markets remain opportunistic about current gains, rather than wary of possible headwinds that may emerge in the coming weeks or months, Sosnick said. "This market is preferring to deal with the here and now than deal with the conceptual," Sosnick added.
Forbes
3 minutes ago
- Forbes
How Disney Stock Can Surge To $230
Disney (NYSE:DIS) Q3 results indicate that the streaming segment of the business is gaining significant momentum, assisting the company in alleviating certain pressures within its television segment. Nevertheless, Netflix (NASDAQ:NFLX) remains the leader in the streaming arena. Netflix shares have soared nearly 33% this year, far surpassing Disney's stock increase of 4%, and its market capitalization stands at a staggering $500 billion, nearly 2.5 times Disney's $200 billion. However, here's where it gets intriguing. Disney's direct-to-consumer operations are not too far behind Netflix in scale. Over the last 12 months, Disney's DTC operations generated approximately $24.15 billion in revenue, compared to Netflix's $41 billion in streaming revenue over the same timeframe. This leads us to believe that Disney's overall worth may be undervalued given its streaming capabilities. So, could streaming propel Disney's stock value by about 2x in the upcoming years? We genuinely think that this is feasible. Here's some mathematics. Disney's streaming revenues experienced an increase of approximately 8% year-over-year, reaching around $18.37 billion in the first nine months of this fiscal year; this growth figure would be higher if we adjusted for the sale of the Disney+ Hotstar operations that occurred late last year. Revenue is anticipated to reach roughly $25 billion this year. If revenue continues to grow at about 12% annually over the next two years, it could result in approximately $31.5 billion by FY'27. Should Disney manage to enhance its operating margins for streaming to about 25%, compared to the current level of around 5.5%, it would equate to operating profits of about $7.1 billion. We believe this is achievable, considering Netflix reported operating margins of approximately 34% in the most recent quarter, while Disney is still in the early stages of its monetization efforts. At present, Netflix trades at approximately 40 times its trailing operating income. If investors were to evaluate Disney's streaming operations at around 30 times operating earnings—about 25% less than the current valuation of Netflix's business—this would result in an enterprise value for Disney's streaming segment close to $213 billion. Surprisingly, that's equivalent to Disney's entire current market capitalization. Yet, there's much more to Disney's business, encompassing theme parks, television, and sports entertainment, which collectively generated $67 billion in revenue over the past year. Adding these elements into the equation, it's not hard to visualize Disney stock nearly doubling from its current price. Below, we outline how Disney's streaming segment is performing and how it stands in comparison to Netflix. Should you Buy or Fear Disney stock? Disney's Streaming Metrics Picking Up Disney has invested substantial resources into its streaming operations over the past few years, and it is finally beginning to yield results. In the most recent quarter, the direct-to-consumer segment secured $6.2 billion in revenue, marking a 6% increase despite the divestiture of the Hotstar operations last year. Operating income for this segment surged to $346 million, contrasting with a loss during the same quarter last year. Disney+ saw an addition of 1.8 million core subscribers last quarter. Disney had approximately 128 million subscribers on its core Disney+ offerings, and Hulu boasted around 55 million subscribers. Beyond subscriber growth, Disney's strategy of increasing prices has also acted as a crucial driver for revenue enhancement. For example, the ad-free Disney+ plan experienced a $2 price increase in October 2024. Disney's ad-supported tier also shows signs of flourishing. Close to half of U.S. Disney+ subscribers are now opting for the ad-supported version, with 37% of active subscribers currently enrolled in these plans as of last year. In fact, Disney has been intentionally guiding users towards ad-supported options by raising the prices of ad-free plans, and there are valid reasons behind this strategy. The wider streaming sector has increasingly focused on ad-supported tiers, as they generate greater revenue per user by profiting both from subscription fees and advertisement income. Additionally, advertising rates could be beneficial for Disney, given the capacity to better target users and Disney's emphasis on high-quality, family-friendly content. Nevertheless, Netflix maintains a significant lead over Disney in the streaming competition. Although Netflix has ceased reporting its global subscriber numbers, it had a total of 301 million subscribers worldwide as of December 2024, thanks to its crackdown on account sharing and advertising initiatives. By contrast, Disney has approximately 183 million subscribers when combining Hulu and its core Disney+ services. Netflix's average revenue per user (ARPU) is also more appealing, exceeding $11.50 per month globally in 2024, as opposed to $8 for Disney+, although Hulu contributes higher average monthly revenues of around $12 per month. How Disney's Streaming Could Be Re-rated Higher While Netflix has exhibited stronger momentum compared to Disney, we believe that Disney showcases immense potential due to its extensive portfolio of intellectual properties, which includes renowned franchises like Marvel and Star Wars, in addition to Pixar and its traditional animation assets. To narrow the valuation disparity, Disney must persist in enhancing its streaming margins while increasing subscriber growth. We believe this is achievable for several reasons. In terms of subscriber and revenue growth, Disney has been pushing the paid sharing feature, which was rolled out in the United States last September. This allows members to add a user outside their household for an additional fee that begins at $7 per month. In contrast, Netflix introduced a similar option in the U.S. in May 2023, with successful outcomes. We could see comparable enhancements for Disney as well. Additionally, ESPN is set to debut a new direct-to-consumer streaming service on August 21, 2025, priced at $29.99 per month. This platform will provide access to all ESPN U.S. networks and approximately 47,000 live sporting events annually, along with features such as multiview, statistics, betting information, and fantasy tools. Beginning in 2026, ESPN will assume the exclusive U.S. partnership for all WWE Premium Live Events, including WrestleMania and Royal Rumble. The service will also integrate NFL Network and expanded NFL content, following a recent agreement that grants the NFL a 10% stake in ESPN. This initiative signifies a major advancement in Disney's sports streaming ambitions and, if executed successfully, could introduce a new growth catalyst for Disney's overarching streaming strategy and potentially attract increased attention from investors. On the margins front, Disney's marketing expenses related to its streaming business are also declining as the platform matures, and its bundled service offerings are likely aiding in keeping subscriber churn low. Providing Disney+, Hulu, and ESPN+ together for as little as $17 per month has enhanced the overall stickiness of the service, improving retention and decreasing churn. We also believe that the investments Disney is making into its streaming sector will yield long-term value. Differing from Netflix, which monetizes its content investments solely through monthly subscription fees, Disney boasts a significantly broader value chain due to its theatrical operations, theme parks, merchandise, and licensing activities. Disney's content investments are likely to prove far more sustainable given its iconic franchises, unlike Netflix, which often emphasizes standalone shows. For further insights into Disney's valuation, examine our analysis of what's driving our current price estimate for Disney. Additionally, explore our evaluation of Disney revenue for a detailed look at the company's primary revenue streams and their trend directions. While there might be potential upside for DIS stock, the Trefis Reinforced Value (RV) Portfolio has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to deliver robust returns for investors. So, why is that? The quarterly rebalanced composition of large-, mid-, and small-cap RV Portfolio stocks has provided a timely strategy to capitalize on positive market conditions while mitigating losses when markets decline, as outlined in RV Portfolio performance metrics.
