Latest news with #LincolnElectricHoldings
Yahoo
17-05-2025
- Business
- Yahoo
Lincoln Electric Holdings (NASDAQ:LECO) Looks To Prolong Its Impressive Returns
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. That's why when we briefly looked at Lincoln Electric Holdings' (NASDAQ:LECO) ROCE trend, we were very happy with what we saw. We've discovered 1 warning sign about Lincoln Electric Holdings. View them for free. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Lincoln Electric Holdings, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.26 = US$700m ÷ (US$3.6b - US$970m) (Based on the trailing twelve months to March 2025). So, Lincoln Electric Holdings has an ROCE of 26%. That's a fantastic return and not only that, it outpaces the average of 11% earned by companies in a similar industry. Check out our latest analysis for Lincoln Electric Holdings In the above chart we have measured Lincoln Electric Holdings' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Lincoln Electric Holdings . In terms of Lincoln Electric Holdings' history of ROCE, it's quite impressive. Over the past five years, ROCE has remained relatively flat at around 26% and the business has deployed 61% more capital into its operations. With returns that high, it's great that the business can continually reinvest its money at such appealing rates of return. If these trends can continue, it wouldn't surprise us if the company became a multi-bagger. In short, we'd argue Lincoln Electric Holdings has the makings of a multi-bagger since its been able to compound its capital at very profitable rates of return. And the stock has done incredibly well with a 176% return over the last five years, so long term investors are no doubt ecstatic with that result. So while investors seem to be recognizing these promising trends, we still believe the stock deserves further research. If you'd like to know about the risks facing Lincoln Electric Holdings, we've discovered 1 warning sign that you should be aware of. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-04-2025
- Business
- Yahoo
Lincoln Electric Holdings, Inc. (LECO): One of the Overlooked Dividend Stocks to Buy Now
We recently published a list of the 10 Overlooked Dividend Stocks to Buy Now. In this article, we are going to take a look at where Lincoln Electric Holdings, Inc. (NASDAQ:LECO) stands against other overlooked dividend stocks. In recent times, dividend investing—also known as equity income—has fallen out of favor. Once a widely followed and dependable strategy, it has gradually been overshadowed. The strong capital gains delivered by growth stocks appear to have shifted investors' attention away from the more stable and consistent returns that come with dividend-paying stocks. However, the recent market downturn, combined with the economic impact of Trump's trade policies, has brought renewed attention and appeal to these types of stocks. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 2% since the start of 2025, compared with a 6% fall in the broader market. Dividend stocks have seen mixed results over different economic cycles—performing well in some downturns and falling behind in others. They generally outpaced the broader market during the recessions starting in July 1981, March 2001, and December 2007. However, their performance lagged during the shorter recessions in 1980 and 2020. This was mainly due to dividend cuts from major firms, along with limited exposure to fast-growing tech names. For context, the steepest drop in dividends came during the 2008–09 financial crisis, when S&P dividend payouts declined by 24%, though investors still received 76% of their income. That said, while the possibility of dividend reductions is a valid concern and a potential drawback of this strategy, it shouldn't be a reason to overlook dividend stocks altogether. When incorporated thoughtfully, they can still play a valuable role in a well-rounded investment portfolio. M&G Investments noted that dividends serve as more than just income—they also signal a company's financial health and management's confidence. While short-term market returns often hinge on stock valuations, dividends play a much more substantial role in driving equity returns over longer periods, such as 10 or 20 years. The report also mentioned, citing Bloomberg's data, that dividends play a vital role in long-term returns. Over the last 25 years, nearly half of the total gains from US stocks have come from reinvested dividends and the power of compounding. During this period, the broader market delivered an average annual return of 7.4%, with 55% attributed to rising stock prices and the remaining 45% coming from reinvested dividend income. The fact that dividends are not guaranteed highlights a deeper financial story behind corporate decisions. Companies must carefully weigh the trade-off between returning profits to shareholders and keeping enough earnings on hand to support future expansion. Getting this balance right is a strategic task. A particularly high dividend payout ratio—typically above 75%, though this varies by sector—can raise red flags about sustainability. When too much profit is paid out, there's little room left to increase dividends down the line. This could eventually lead a company to scale back or even stop its dividend payments altogether, which may hold back both business growth and long-term gains in share value. Given this, we will take a look at some overlooked stocks that pay dividends. A welder wearing protective gear, wearing a satisfied expression after completing his work. For this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron's, and Business Insider and searched for stocks that remain under the radar but have strong balance sheets and sound financials. In addition, these lesser-known dividend companies also boast dividend growth track records, which make them a reliable option for income investors. After compiling our data, we picked 10 companies with the highest number of hedge fund investors, as per Insider Monkey's Q4 2024 database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 36 Lincoln Electric Holdings, Inc. (NASDAQ:LECO) is an Ohio-based multinational company that specializes in welding products. The company is also known for its proficiency in industrial automation and cutting equipment. Recently, the company has focused on expanding its industrial automation segment, anticipating significant growth and nearly $1 billion in revenue. Lincoln Electric Holdings, Inc. (NASDAQ:LECO)'s strategy revolves around meeting customer demand and effectively managing costs. By delivering high-quality products and fostering strong brand loyalty, the company maintains a competitive edge in a mature industry. Its investment in technology and commitment to a skilled workforce further strengthen its market position. In the fourth quarter of 2024, Lincoln Electric Holdings, Inc. (NASDAQ:LECO) reported revenue of $1.02 billion, down 3.45% from the same period last year. However, the revenue surpassed analysts' estimates by over $26 million. Although enhanced operational efficiencies had a positive impact, macroeconomic challenges and fluctuations in industrial sector demand continued to pose potential risks. Special item charges and higher selling expenses led to a 10.5% year-over-year decline in net income, which totaled $140.2 million. Lincoln Electric Holdings, Inc. (NASDAQ:LECO) ended the year with over $377 million in cash and cash equivalents. The company reported an operating cash flow of $95.8 million. In FY24, it returned $426 million to shareholders through dividends and share repurchases, affirming its commitment to shareholder return. In addition, it has been growing its payouts for 29 consecutive years. Currently, it pays a quarterly dividend of $0.75 per share for a dividend yield of 1.61%, as of April 25. Overall, LECO ranks 3rd on our list of the best overlooked dividend stocks to invest in. While we acknowledge the potential of LECO as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than LECO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
06-03-2025
- Business
- Yahoo
What Does Lincoln Electric Holdings, Inc.'s (NASDAQ:LECO) Share Price Indicate?
Today we're going to take a look at the well-established Lincoln Electric Holdings, Inc. (NASDAQ:LECO). The company's stock received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$220 at one point, and dropping to the lows of US$181. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Lincoln Electric Holdings' current trading price of US$196 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Lincoln Electric Holdings's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Lincoln Electric Holdings The stock seems fairly valued at the moment according to our valuation model. It's trading around 5.6% below our intrinsic value, which means if you buy Lincoln Electric Holdings today, you'd be paying a reasonable price for it. And if you believe the company's true value is $207.52, then there's not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Lincoln Electric Holdings's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 36% over the next couple of years, the future seems bright for Lincoln Electric Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has already priced in LECO's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you've been keeping an eye on LECO, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Lincoln Electric Holdings. If you are no longer interested in Lincoln Electric Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Associated Press
13-02-2025
- Business
- Associated Press
Lincoln Electric Reports Fourth Quarter and Full Year 2024 Results
Lincoln Electric Holdings, Inc. (the 'Company') (Nasdaq: LECO) today reported fourth quarter 2024 net income of $140.2 million, or diluted earnings per share (EPS) of $2.47, which included special item after-tax net charges of $5.8 million, or $0.10 EPS. This compares with prior year period net income of $156.6 million, or $2.70 EPS, which included special item after-tax net gains of $14.6 million, or $0.25 EPS. Excluding special items, fourth quarter 2024 adjusted net income was $146.0 million, or $2.57 adjusted EPS. This compares with adjusted net income of $142.0 million, or $2.45 adjusted EPS, in the prior year period. Fourth quarter 2024 sales decreased 3.4% to $1,022.0 million reflecting a 7.5% decrease in organic sales and 1.1% unfavorable foreign exchange, partially offset by a 5.2% benefit from acquisitions. Operating income for the fourth quarter 2024 was $177.0 million, or 17.3% of sales, as compared with operating income of $204.0 million, or 19.3% of sales, in the prior year period. Excluding special items, adjusted operating income was $185.6 million, or 18.2% of sales, as compared with $182.1 million, or 17.2% of sales, in the prior year period. 'We are pleased with fourth quarter and full year operating profit margin and earnings performance despite challenging industrial sector demand as diligent price/cost management, strong execution of our cost saving actions and operational improvements advanced performance towards our 2025 Higher Standard Strategy goals,' stated Steven B. Hedlund, Chair, President and Chief Executive Officer. 'Our focus on serving customers, driving employee engagement, and investing in long-term growth positions us well to capitalize on the next growth cycle and deliver superior value for our stakeholders.' Twelve Months 2024 Summary Net income for the twelve months ended December 31, 2024 was $466.1 million, or $8.15 EPS, which included special item after-tax net charges of $65.2 million, or $1.14 EPS. This compares with prior year period net income of $545.2 million, or $9.37 EPS, which included special item after-tax net charges of $2.7 million, or $0.04 EPS. Excluding these items, adjusted net income for the twelve months ended December 31, 2024 decreased 3.0% to $531.3 million, or $9.29 EPS, compared with $547.9 million, or $9.41 EPS, in the prior year period. Sales decreased 4.4% to $4,008.7 million in the twelve months ended December 31, 2024 reflecting a 6.5% decrease in organic sales and a 2.5% benefit from acquisitions. Operating income for the twelve months ended December 31, 2024 was $636.5 million, or 15.9% of sales. This compares with operating income of $717.8 million, or 17.1% of sales, in the comparable 2023 period. Excluding special items, adjusted operating income was $704.4 million, or 17.6% of sales, as compared with $718.8 million, or 17.1% of sales, in the prior year period. Webcast Information A conference call to discuss fourth quarter 2024 financial results will be webcast live today, February 13, 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 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 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; 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 conflicts between Russia and Ukraine and in the Middle East, 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, 2023. (In thousands, except per share amounts) (Unaudited) Consolidated Statements of Income Fav (Unfav) to Three Months Ended December 31, Prior Year 2024 % of Sales 2023 % of Sales $ % Net sales $ 1,022,031 100.0 % $ 1,058,514 100.0 % $ (36,483) (3.4) % Cost of goods sold 653,409 63.9 % 687,484 64.9 % 34,075 5.0 % Gross profit 368,622 36.1 % 371,030 35.1 % (2,408) (0.6) % Selling, general & administrative expenses 187,067 18.3 % 188,931 17.8 % 1,864 1.0 % Rationalization and asset impairment net charges 4,538 0.4 % (21,932) (2.1) % (26,470) 120.7 % Operating income 177,017 17.3 % 204,031 19.3 % (27,014) (13.2) % Interest expense, net 11,372 1.1 % 8,663 0.8 % (2,709) (31.3) % Other income 1,408 0.1 % 1,662 0.2 % (254) (15.3) % Income before income taxes 167,053 16.3 % 197,030 18.6 % (29,977) (15.2) % Income taxes 26,824 2.6 % 40,386 3.8 % 13,562 33.6 % Effective tax rate 16.1 % 20.5 % 4.4 % Net income $ 140,229 13.7 % $ 156,644 14.8 % $ (16,415) (10.5) % Basic earnings per share $ 2.49 $ 2.75 $ (0.26) (9.5) % Diluted earnings per share $ 2.47 $ 2.70 $ (0.23) (8.5) % Weighted average shares (basic) 56,309 57,063 Weighted average shares (diluted) 56,818 57,911 Fav (Unfav) to Twelve Months Ended December 31, Prior Year 2024 % of Sales 2023 % of Sales $ % Net sales $ 4,008,670 100.0 % $ 4,191,636 100.0 % $ (182,966) (4.4) % Cost of goods sold 2,535,758 63.3 % 2,726,191 65.0 % 190,433 7.0 % Gross profit 1,472,912 36.7 % 1,465,445 35.0 % 7,467 0.5 % Selling, general & administrative expenses 780,590 19.5 % 758,910 18.1 % (21,680) (2.9) % Rationalization and asset impairment net charges 55,860 1.4 % (11,314) (0.3) % (67,174) 593.7 % Operating income 636,462 15.9 % 717,849 17.1 % (81,387) (11.3) % Interest expense, net 42,786 1.1 % 44,371 1.1 % 1,585 3.6 % Other income 473 0.0 % 13,388 0.3 % (12,915) (96.5) % Income before income taxes 594,149 14.8 % 686,866 16.4 % (92,717) (13.5) % Income taxes 128,041 3.2 % 141,618 3.4 % 13,577 9.6 % Effective tax rate 21.6 % 20.6 % (1.0) % Net income $ 466,108 11.6 % $ 545,248 13.0 % $ (79,140) (14.5) % Basic earnings per share $ 8.23 $ 9.50 $ (1.27) (13.4) % Diluted earnings per share $ 8.15 $ 9.37 $ (1.22) (13.0) % Weighted average shares (basic) 56,639 57,364 Weighted average shares (diluted) 57,194 58,221 Lincoln Electric Holdings, Inc. Financial Highlights (In thousands) (Unaudited) Balance Sheet Highlights Selected Consolidated Balance Sheet Data December 31, 2024 December 31, 2023 Cash and cash equivalents $ 377,262 $ 393,787 Accounts receivable, net 481,979 538,830 Inventories 544,037 562,864 Total current assets 1,645,281 1,693,111 Property, plant and equipment, net 619,181 575,316 Total assets 3,520,142 3,377,297 Trade accounts payable 296,590 325,435 Total current liabilities (1) 878,802 754,610 Long-term debt, less current portion 1,150,551 1,102,771 Total equity 1,327,433 1,308,852 Operating Working Capital December 31, 2024 December 31, 2023 Average operating working capital to Net sales (2) 16.9 % 17.1 % Invested Capital December 31, 2024 December 31, 2023 Short-term debt (1) $ 110,524 $ 2,439 Long-term debt, less current portion 1,150,551 1,102,771 Total debt 1,261,075 1,105,210 Total equity 1,327,433 1,308,852 Invested capital $ 2,588,508 $ 2,414,062 Total debt / invested capital 48.7 % 45.8 % (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. Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Non-GAAP Financial Measures Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Operating income as reported $ 177,017 $ 204,031 $ 636,462 $ 717,849 Special items (pre-tax): Rationalization and asset impairment net charges (2) 4,538 (21,932) 55,860 (11,314) Acquisition transaction costs (3) 2,491 — 7,042 — Amortization of step up in value of acquired inventories (5) 1,552 — 5,026 12,252 Adjusted operating income (1) $ 185,598 $ 182,099 $ 704,390 $ 718,787 As a percent of total sales 18.2 % 17.2 % 17.6 % 17.1 % Net income as reported $ 140,229 $ 156,644 $ 466,108 $ 545,248 Special items: Rationalization and asset impairment net charges (2) 4,538 (21,932) 55,860 (11,314) Acquisition transaction costs (3) 2,491 — 7,042 — Pension settlement net (gains) charges (4) (174) 845 3,792 845 Amortization of step up in value of acquired inventories (5) 1,552 — 5,026 12,252 Loss (gain) on asset disposal (6) — — 4,950 (1,646) Tax effect of Special items (7) (2,655) 6,445 (11,513) 2,537 Adjusted net income (1) 145,981 142,002 531,265 547,922 Interest expense, net 11,372 8,663 42,786 44,371 Income taxes as reported 26,824 40,386 128,041 141,618 Tax effect of Special items (7) 2,655 (6,445) 11,513 (2,537) Adjusted EBIT (1) $ 186,832 $ 184,606 $ 713,605 $ 731,374 Effective tax rate as reported 16.1 % 20.5 % 21.6 % 20.6 % Net special item tax impact 0.7 % (1.2) % (0.8) % (0.4) % Adjusted effective tax rate (1) 16.8 % 19.3 % 20.8 % 20.2 % Diluted earnings per share as reported $ 2.47 $ 2.70 $ 8.15 $ 9.37 Special items per share 0.10 (0.25) 1.14 0.04 Adjusted diluted earnings per share (1) $ 2.57 $ 2.45 $ 9.29 $ 9.41 Weighted average shares (diluted) 56,818 57,911 57,194 58,221 (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) 2024 charges primarily relate to rationalization plans initiated during the third quarter of 2024 in all three segments, as well as previously initiated plans and the disposition of the Company's Russian entity in International Welding. 2023 net gains primarily relates the gain on sale of a property, partially offset by charges within International Welding. (3) Transaction costs related to acquisitions which are included in Selling, general & administrative expenses. (4) Pension settlement net (gains) charges primarily due to the final settlement associated with the termination of pension plans and are included in Other income. (5) Costs related to acquisitions which are included in Cost of goods sold. (7) 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. Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Non-GAAP Financial Measures Twelve Months Ended December 31, Return on Invested Capital 2024 2023 Net income as reported $ 466,108 $ 545,248 Plus: Interest expense (after-tax) 39,665 38,050 Less: Interest income (after-tax) 7,593 5,033 Net operating profit after taxes $ 498,180 $ 578,265 Special items: Rationalization and asset impairment net charges 55,860 (11,314) Acquisition transaction costs 7,042 — Pension settlement net charges 3,792 845 Amortization of step up in value of acquired inventories 5,026 12,252 Loss (gain) on asset disposal 4,950 (1,646) Tax effect of Special items (2) (11,513) 2,537 Adjusted net operating profit after taxes (1) $ 563,337 $ 580,939 Invested Capital December 31, 2024 December 31, 2023 Short-term debt $ 110,524 $ 2,439 Long-term debt, less current portion 1,150,551 1,102,771 Total debt 1,261,075 1,105,210 Total equity 1,327,433 1,308,852 Invested capital $ 2,588,508 $ 2,414,062 Return on invested capital as reported 19.2 % 24.0 % Adjusted return on invested capital (1) 21.8 % 24.1 % (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. Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Condensed Consolidated Statements of Cash Flows Three Months Ended December 31, 2024 2023 OPERATING ACTIVITIES: Net income $ 140,229 $ 156,644 Adjustments to reconcile Net income to Net cash provided by operating activities: Rationalization and asset impairment net charges (5,032) 3,651 Depreciation and amortization 23,143 21,969 Gain on sale of property — (36,187) Pension settlement (gains) charges (174) 845 Other non-cash items, net (32,540) (34,431) Changes in operating assets and liabilities, net of effects from acquisitions: Decrease in accounts receivable 16,663 8,285 Decrease in inventories 47,051 64,313 Net change in other current assets (21,647) (20,879) Decrease in trade accounts payable (20,301) (7,356) Net change in other current liabilities (34,607) (47,919) Net change in other long-term assets and liabilities (16,990) 12,727 NET CASH PROVIDED BY OPERATING ACTIVITIES 95,795 121,662 INVESTING ACTIVITIES: Capital expenditures (31,486) (24,528) Proceeds from sale of property, plant and equipment 5,292 44,898 Other investing activities 320 6,010 NET CASH (USED BY) PROVIDED BY INVESTING ACTIVITIES (25,874) 26,380 FINANCING ACTIVITIES: Proceeds from (payments on) short-term borrowings 2,928 (5,057) Payments on long-term borrowings (169) (112) Proceeds from exercise of stock options 1,524 9,068 Purchase of shares for treasury (52,539) (68,176) Cash dividends paid to shareholders (40,164) (36,733) Other financing activities (3,922) — NET USED BY USED BY FINANCING ACTIVITIES (92,342) (101,010) Effect of exchange rate changes on Cash and cash equivalents (4,535) 4,088 (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (26,956) 51,120 Cash and cash equivalents at beginning of period 404,218 342,667 Cash and cash equivalents at end of period $ 377,262 $ 393,787 Cash dividends paid per share $ 0.71 $ 0.64 Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Condensed Consolidated Statements of Cash Flows Year Ended December 31, 2024 2023 OPERATING ACTIVITIES: Net income $ 466,108 $ 545,248 Adjustments to reconcile Net income to Net cash provided by operating activities: Rationalization and asset impairment net charges 20,887 4,779 Depreciation and amortization 88,238 86,670 Gain on sale of property — (36,187) Pension settlement charges 3,792 845 Other non-cash items, net (23,056) (13,004) Changes in operating assets and liabilities, net of effects from acquisitions: Decrease in accounts receivable 52,829 14,980 Decrease in inventories 25,355 122,094 Net change in other current assets (41,558) (35,608) Decrease in trade accounts payable (27,189) (32,028) Net change in other current liabilities 32,703 10,056 Net change in other long-term assets and liabilities 868 (303) NET CASH PROVIDED BY OPERATING ACTIVITIES 598,977 667,542 INVESTING ACTIVITIES: Capital expenditures (116,603) (90,987) Acquisition of businesses, net of cash acquired (252,746) (32,685) Proceeds from sale of property, plant and equipment 7,798 49,494 Other investing activities 320 (551) NET CASH USED BY INVESTING ACTIVITIES (361,231) (74,729) FINANCING ACTIVITIES: Proceeds from (payments on) short-term borrowings 8,449 (79,873) Proceeds from long-term borrowings 550,000 — Payments on long-term borrowings (400,677) (8,109) Proceeds from exercise of stock options 27,404 22,365 Purchase of shares for treasury (263,751) (198,765) Cash dividends paid to shareholders (162,143) (148,010) Other financing activities (3,922) — NET CASH USED BY FINANCING ACTIVITIES (244,640) (412,392) Effect of exchange rate changes on Cash and cash equivalents (9,631) 16,216 (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (16,525) 196,637 Cash and cash equivalents at beginning of period 393,787 197,150 Cash and cash equivalents at end of period $ 377,262 $ 393,787 Cash dividends paid per share $ 2.84 $ 2.56 Lincoln Electric Holdings, Inc. Segment Highlights (1) (In thousands) (Unaudited) Americas International The Harris Corporate / Welding Welding Products Group Eliminations Consolidated Three months ended December 31, 2024 Net sales $ 654,786 $ 242,979 $ 124,266 $ — $ 1,022,031 Inter-segment sales 37,134 11,233 2,801 (51,168) — Total sales $ 691,920 $ 254,212 $ 127,067 $ (51,168) $ 1,022,031 Net income $ 140,229 As a percent of total sales 13.7 % EBIT (1) $ 127,813 $ 32,013 $ 20,278 $ (1,679) $ 178,425 As a percent of total sales 18.5 % 12.6 % 16.0 % 17.5 % Special items charges (3) 4,110 517 1,289 2,491 8,407 Adjusted EBIT (2) $ 131,923 $ 32,530 $ 21,567 $ 812 $ 186,832 As a percent of total sales 19.1 % 12.8 % 17.0 % 18.3 % Three months ended December 31, 2023 Net sales $ 654,707 $ 292,177 $ 111,630 $ — $ 1,058,514 Inter-segment sales 35,493 11,557 2,578 (49,628) — Total sales $ 690,200 $ 303,734 $ 114,208 $ (49,628) $ 1,058,514 Net income $ 156,644 As a percent of total sales 14.8 % EBIT (1) $ 129,409 $ 64,035 $ 15,246 $ (2,997) $ 205,693 As a percent of total sales 18.7 % 21.1 % 13.3 % 19.4 % Special items charges (gains) (4) 60 (21,147) — — (21,087) Adjusted EBIT (2) $ 129,469 $ 42,888 $ 15,246 $ (2,997) $ 184,606 As a percent of total sales 18.8 % 14.1 % 13.3 % 17.4 % (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 2024 primarily reflect Rationalization and asset impairments net charges of $2,319 in Americas Welding, $930 in International Welding and $1,289 in Harris Products Group. In addition, there was an amortization of step up in value of acquired inventories of $1,552 in Americas Welding, pension settlement charge of $239 in Americas Welding and a gain of $413 in International Welding, and acquisition transaction costs of $2,491 in Corporate/Eliminations. (4) Special items in 2023 primarily reflect a net gain of $21,992 related to the sale of a property, partially offset by rationalization and asset impairment charges, and pension settlement charges of $845 in International Welding. Lincoln Electric Holdings, Inc. Segment Highlights (In thousands) (Unaudited) Americas International The Harris Corporate / Welding Welding Products Group Eliminations Consolidated Year ended December 31, 2024 Net sales $ 2,564,847 $ 933,722 $ 510,101 $ — $ 4,008,670 Inter-segment sales 135,758 35,861 12,321 (183,940) — Total sales $ 2,700,605 $ 969,583 $ 522,422 $ (183,940) $ 4,008,670 Net income $ 466,108 As a percent of total sales 11.6 % EBIT (1) $ 502,367 $ 68,370 $ 84,373 $ (18,175) $ 636,935 As a percent of total sales 18.6 % 7.1 % 16.2 % 15.9 % Special items charges (3) 27,821 37,747 3,955 7,147 76,670 Adjusted EBIT (2) $ 530,188 $ 106,117 $ 88,328 $ (11,028) $ 713,605 As a percent of total sales 19.6 % 10.9 % 16.9 % 17.8 % Year ended December 31, 2023 Net sales $ 2,655,546 $ 1,040,006 $ 496,084 $ — $ 4,191,636 Inter-segment sales 127,536 31,498 10,641 (169,675) — Total sales $ 2,783,082 $ 1,071,504 $ 506,725 $ (169,675) $ 4,191,636 Net income $ 545,248 As a percent of total sales 13.0 % EBIT (1) $ 528,411 $ 146,218 $ 74,144 $ (17,536) $ 731,237 As a percent of total sales 19.0 % 13.6 % 14.6 % 17.4 % Special items charges (gain) (4) 9,858 (9,721) — 137 Adjusted EBIT (2) $ 538,269 $ 136,497 $ 74,144 $ (17,536) $ 731,374 As a percent of total sales 19.3 % 12.7 % 14.6 % 17.4 % (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 2024 primarily reflect rationalization net charges of $18,840 in Americas Welding, $32,960 in International Welding, including the impact of the Company's disposition of its Russian entity, and $3,955 in Harris Products Group. In addition, there was a loss on asset disposal of $4,950 recorded to Other income in International Welding, an amortization of step up in value of acquired inventories of $4,776 and $250 in Americas Welding and International Welding, respectively, pension settlement charge of $4,205 and gain of $413 in Americas Welding and International Welding, respectively, and acquisition transaction costs of $7,042 in Corporate/Eliminations. (4) Special items in 2023 primarily reflect amortization of step up in value of acquired inventories of $9,390 and $2,862 in Americas and International Welding, respectively, Rationalization and asset impairment net charges of $468 and net gains of $11,782 in Americas and International Welding, respectively, pension settlement charges of $845 in International Welding and gain on asset disposal of $1,646 in International Welding. Lincoln Electric Holdings, Inc. Change in Net Sales by Segment (In thousands) (Unaudited) Three Months Ended December 31 st Change in Net Sales by Segment Change in Net Sales due to: Net Sales Foreign Net Sales 2023 Volume Acquisitions Price Exchange 2024 Operating Segments Americas Welding $ 654,707 $ (46,844) $ 54,301 $ (541) $ (6,837) $ 654,786 International Welding 292,177 (45,930) 539 95 (3,902) 242,979 The Harris Products Group 111,630 3,057 — 10,972 (1,393) 124,266 Consolidated $ 1,058,514 $ (89,717) $ 54,840 $ 10,526 $ (12,132) $ 1,022,031 % Change Americas Welding (7.2) % 8.3 % (0.1) % (1.0) % 0.0 % International Welding (15.7) % 0.2 % 0.0 % (1.3) % (16.8) % The Harris Products Group 2.7 % — 9.8 % (1.2) % 11.3 % Consolidated (8.5) % 5.2 % 1.0 % (1.1) % (3.4) % Twelve Months Ended December 31 st Change in Net Sales by Segment Change in Net Sales due to: Net Sales Foreign Net Sales 2023 Volume Acquisitions Price Exchange 2024 Operating Segments Americas Welding $ 2,655,546 $ (192,454) $ 101,097 $ 10,770 $ (10,112) $ 2,564,847 International Welding 1,040,006 (96,658) 1,660 (8,413) (2,873) 933,722 The Harris Products Group 496,084 (12,049) — 28,041 (1,975) 510,101 Consolidated $ 4,191,636 $ (301,161) $ 102,757 $ 30,398 $ (14,960) $ 4,008,670 % Change Americas Welding (7.2) % 3.8 % 0.4 % (0.4) % (3.4) % International Welding (9.3) % 0.2 % (0.8) % (0.3) % (10.2) % The Harris Products Group (2.4) % — 5.7 % (0.4) % 2.8 % Consolidated (7.2) % 2.5 % 0.7 % (0.4) % (4.4) % View source version on CONTACT: Amanda Butler Vice President, Investor Relations & Communications Tel: 216.383.2534 Email: [email protected] KEYWORD: UNITED STATES NORTH AMERICA OHIO INDUSTRY KEYWORD: OTHER MANUFACTURING TECHNOLOGY STEEL ENGINEERING MANUFACTURING SOFTWARE MACHINERY MACHINE TOOLS, METALWORKING & METALLURGY ELECTRONIC DESIGN AUTOMATION SOURCE: Lincoln Electric Holdings, Inc. Copyright Business Wire 2025. PUB: 02/13/2025 07:30 AM/DISC: 02/13/2025 07:32 AM
