FULLTEXT DEL 1 AV 1
10-Q – 2026-04-30 – leco-20260331x10q.htm
LINCOLN ELECTRIC HOLDINGS INC_March 31, 2026
0000059527 --12-31 2026 Q1 http://fasb.org/us-gaap/2024#OtherAssetsNoncurrent http://fasb.org/us-gaap/2024#OtherLiabilitiesCurrent http://fasb.org/us-gaap/2024#OtherLiabilitiesNoncurrent http://fasb.org/us-gaap/2024#AccountsPayableCurrent http://fasb.org/us-gaap/2024#AccountsPayableCurrent LINCOLN ELECTRIC HOLDINGS INC http://fasb.org/us-gaap/2024#RestructuringSettlementAndImpairmentProvisions http://fasb.org/us-gaap/2024#OtherAssetsNoncurrent http://fasb.org/us-gaap/2024#OtherLiabilitiesCurrent http://fasb.org/us-gaap/2024#OtherLiabilitiesNoncurrent http://fasb.org/us-gaap/2024#SecuredOvernightFinancingRateSofrMember false 0000059527 us-gaap:TreasuryStockCommonMember 2026-01-01 2026-03-31 0000059527 us-gaap:TreasuryStockCommonMember 2025-01-01 2025-03-31 0000059527 us-gaap:CommonStockMember 2026-01-01 2026-03-31 0000059527 us-gaap:CommonStockMember 2025-01-01 2025-03-31 0000059527 us-gaap:AdditionalPaidInCapitalMember 2026-01-01 2026-03-31 0000059527 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-03-31 0000059527 us-gaap:TreasuryStockCommonMember 2026-03-31 0000059527 us-gaap:RetainedEarningsMember 2026-03-31 0000059527 us-gaap:AdditionalPaidInCapitalMember 2026-03-31 0000059527 us-gaap:AccumulatedTranslationAdjustmentMember 2026-03-31 0000059527 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2026-03-31 0000059527 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2026-03-31 0000059527 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2026-03-31 0000059527 us-gaap:TreasuryStockCommonMember 2025-12-31 0000059527 us-gaap:RetainedEarningsMember 2025-12-31 0000059527 us-gaap:AdditionalPaidInCapitalMember 2025-12-31 0000059527 us-gaap:AccumulatedTranslationAdjustmentMember 2025-12-31 0000059527 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-12-31 0000059527 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2025-12-31 0000059527 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2025-12-31 0000059527 us-gaap:TreasuryStockCommonMember 2025-03-31 0000059527 us-gaap:RetainedEarningsMember 2025-03-31 0000059527 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0000059527 us-gaap:AccumulatedTranslationAdjustmentMember 2025-03-31 0000059527 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-31 0000059527 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2025-03-31 0000059527 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2025-03-31 0000059527 us-gaap:TreasuryStockCommonMember 2024-12-31 0000059527 us-gaap:RetainedEarningsMember 2024-12-31 0000059527 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0000059527 us-gaap:AccumulatedTranslationAdjustmentMember 2024-12-31 0000059527 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-12-31 0000059527 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2024-12-31 0000059527 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2024-12-31 0000059527 us-gaap:LineOfCreditMember 2025-12-31 0000059527 leco:UsGaap_OtherLinesOfCreditMember 2025-12-31 0000059527 us-gaap:OperatingSegmentsMember us-gaap:ReportableSegmentAggregationBeforeOtherOperatingSegmentMember 2026-01-01 2026-03-31 0000059527 us-gaap:IntersegmentEliminationMember us-gaap:ReportableSegmentAggregationBeforeOtherOperatingSegmentMember 2026-01-01 2026-03-31 0000059527 us-gaap:IntersegmentEliminationMember leco:InternationalWeldingMember 2026-01-01 2026-03-31 0000059527 us-gaap:IntersegmentEliminationMember leco:HarrisProductsGroupMember 2026-01-01 2026-03-31 0000059527 us-gaap:IntersegmentEliminationMember leco:AmericasWeldingMember 2026-01-01 2026-03-31 0000059527 us-gaap:ReportableSegmentAggregationBeforeOtherOperatingSegmentMember 2026-01-01 2026-03-31 0000059527 leco:WeldingEquipmentMember 2026-01-01 2026-03-31 0000059527 leco:WeldingConsumablesMember 2026-01-01 2026-03-31 0000059527 leco:WeldingAutomationMember 2026-01-01 2026-03-31 0000059527 us-gaap:OperatingSegmentsMember us-gaap:ReportableSegmentAggregationBeforeOtherOperatingSegmentMember 2025-01-01 2025-03-31 0000059527 us-gaap:IntersegmentEliminationMember us-gaap:ReportableSegmentAggregationBeforeOtherOperatingSegmentMember 2025-01-01 2025-03-31 0000059527 us-gaap:IntersegmentEliminationMember leco:InternationalWeldingMember 2025-01-01 2025-03-31 0000059527 us-gaap:IntersegmentEliminationMember leco:HarrisProductsGroupMember 2025-01-01 2025-03-31 0000059527 us-gaap:IntersegmentEliminationMember leco:AmericasWeldingMember 2025-01-01 2025-03-31 0000059527 us-gaap:ReportableSegmentAggregationBeforeOtherOperatingSegmentMember 2025-01-01 2025-03-31 0000059527 leco:WeldingEquipmentMember 2025-01-01 2025-03-31 0000059527 leco:WeldingConsumablesMember 2025-01-01 2025-03-31 0000059527 leco:WeldingAutomationMember 2025-01-01 2025-03-31 0000059527 leco:InternationalWeldingMember 2025-01-01 2025-03-31 0000059527 leco:HarrisProductsGroupMember 2025-01-01 2025-03-31 0000059527 leco:AmericasWeldingMember 2025-01-01 2025-03-31 0000059527 leco:InternationalWeldingMember 2026-03-31 0000059527 leco:HarrisProductsGroupMember 2026-03-31 0000059527 leco:AmericasWeldingMember 2026-03-31 0000059527 leco:InternationalWeldingMember 2025-12-31 0000059527 leco:HarrisProductsGroupMember 2025-12-31 0000059527 leco:AmericasWeldingMember 2025-12-31 0000059527 us-gaap:ForwardContractsMember us-gaap:InterestExpenseMember 2026-01-01 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:SalesMember 2026-01-01 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:CostOfSalesMember 2026-01-01 2026-03-31 0000059527 us-gaap:ForwardContractsMember us-gaap:InterestExpenseMember 2025-01-01 2025-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:SalesMember 2025-01-01 2025-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:CostOfSalesMember 2025-01-01 2025-03-31 0000059527 leco:InternationalWeldingMember 2026-01-01 2026-03-31 0000059527 leco:HarrisProductsGroupMember 2026-01-01 2026-03-31 0000059527 leco:AmericasWeldingMember 2026-01-01 2026-03-31 0000059527 us-gaap:NetInvestmentHedgingMember 2026-01-01 2026-03-31 0000059527 us-gaap:ForwardContractsMember 2026-01-01 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember 2026-01-01 2026-03-31 0000059527 us-gaap:NetInvestmentHedgingMember 2025-01-01 2025-12-31 0000059527 us-gaap:ForwardContractsMember 2025-01-01 2025-12-31 0000059527 us-gaap:ForeignExchangeContractMember 2025-01-01 2025-12-31 0000059527 us-gaap:AccumulatedTranslationAdjustmentMember 2026-01-01 2026-03-31 0000059527 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2026-01-01 2026-03-31 0000059527 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2026-01-01 2026-03-31 0000059527 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2026-01-01 2026-03-31 0000059527 us-gaap:AccumulatedTranslationAdjustmentMember 2025-01-01 2025-03-31 0000059527 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-01-01 2025-03-31 0000059527 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2025-01-01 2025-03-31 0000059527 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2025-01-01 2025-03-31 0000059527 us-gaap:LineOfCreditMember 2026-03-31 0000059527 leco:UsGaap_OtherLinesOfCreditMember 2026-03-31 0000059527 us-gaap:LineOfCreditMember 2026-01-01 2026-03-31 0000059527 leco:UsGaap_OtherLinesOfCreditMember 2026-01-01 2026-03-31 0000059527 us-gaap:IntersegmentEliminationMember 2026-01-01 2026-03-31 0000059527 us-gaap:IntersegmentEliminationMember 2025-01-01 2025-03-31 0000059527 us-gaap:RetainedEarningsMember 2026-01-01 2026-03-31 0000059527 us-gaap:RetainedEarningsMember 2025-01-01 2025-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2026-01-01 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2025-01-01 2025-03-31 0000059527 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2026-03-31 0000059527 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2026-03-31 0000059527 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2026-03-31 0000059527 us-gaap:OtherCurrentLiabilitiesMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2026-03-31 0000059527 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2026-03-31 0000059527 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2026-03-31 0000059527 us-gaap:OtherNoncurrentLiabilitiesMember 2026-03-31 0000059527 us-gaap:OtherCurrentLiabilitiesMember 2026-03-31 0000059527 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-12-31 0000059527 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2025-12-31 0000059527 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-12-31 0000059527 us-gaap:OtherCurrentLiabilitiesMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-12-31 0000059527 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2025-12-31 0000059527 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-12-31 0000059527 us-gaap:OtherNoncurrentLiabilitiesMember 2025-12-31 0000059527 us-gaap:OtherCurrentLiabilitiesMember 2025-12-31 0000059527 us-gaap:OtherNoncurrentAssetsMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2026-03-31 0000059527 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2026-03-31 0000059527 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2026-03-31 0000059527 us-gaap:OtherCurrentAssetsMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2026-03-31 0000059527 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2026-03-31 0000059527 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2026-03-31 0000059527 us-gaap:OtherNoncurrentAssetsMember 2026-03-31 0000059527 us-gaap:OtherCurrentAssetsMember 2026-03-31 0000059527 us-gaap:OtherNoncurrentAssetsMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-12-31 0000059527 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2025-12-31 0000059527 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-12-31 0000059527 us-gaap:OtherCurrentAssetsMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-12-31 0000059527 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2025-12-31 0000059527 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-12-31 0000059527 us-gaap:OtherNoncurrentAssetsMember 2025-12-31 0000059527 us-gaap:OtherCurrentAssetsMember 2025-12-31 0000059527 us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 leco:PensionSurplusMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 leco:PensionSurplusMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 leco:PensionSurplusMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:NetInvestmentHedgingMember us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 leco:PensionSurplusMember us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:NetInvestmentHedgingMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 leco:PensionSurplusMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 leco:PensionSurplusMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 leco:PensionSurplusMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:NetInvestmentHedgingMember us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 leco:PensionSurplusMember us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2026-03-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-12-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-12-31 0000059527 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2025-12-31 0000059527 us-gaap:MaterialReconcilingItemsMember 2026-01-01 2026-03-31 0000059527 us-gaap:MaterialReconcilingItemsMember 2025-01-01 2025-03-31 0000059527 leco:TotalSeniorUnsecuredNotesMember 2026-03-31 0000059527 leco:TotalSeniorUnsecuredNotesMember 2026-01-01 2026-03-31 0000059527 leco:SeniorNotesSeriesDMember leco:SeniorNotes2016Member 2026-03-31 0000059527 leco:SeniorNotesSeriesDMember leco:SeniorNotes2015Member 2026-03-31 0000059527 leco:SeniorNotesSeriesCMember leco:SeniorNotes2024Member 2026-03-31 0000059527 leco:SeniorNotesSeriesCMember leco:SeniorNotes2016Member 2026-03-31 0000059527 leco:SeniorNotesSeriesCMember leco:SeniorNotes2015Member 2026-03-31 0000059527 leco:SeniorNotesSeriesBMember leco:SeniorNotes2024Member 2026-03-31 0000059527 leco:SeniorNotesSeriesBMember leco:SeniorNotes2016Member 2026-03-31 0000059527 leco:SeniorNotesSeriesBMember leco:SeniorNotes2015Member 2026-03-31 0000059527 leco:SeniorNotesSeriesAMember leco:SeniorNotes2024Member 2026-03-31 0000059527 leco:SeniorNotesSeriesAMember leco:SeniorNotes2016Member 2026-03-31 0000059527 leco:SeniorNotesSeriesDMember leco:SeniorNotes2016Member 2025-12-31 0000059527 leco:SeniorNotesSeriesDMember leco:SeniorNotes2015Member 2025-12-31 0000059527 leco:SeniorNotesSeriesCMember leco:SeniorNotes2024Member 2025-12-31 0000059527 leco:SeniorNotesSeriesCMember leco:SeniorNotes2016Member 2025-12-31 0000059527 leco:SeniorNotesSeriesCMember leco:SeniorNotes2015Member 2025-12-31 0000059527 leco:SeniorNotesSeriesBMember leco:SeniorNotes2024Member 2025-12-31 0000059527 leco:SeniorNotesSeriesBMember leco:SeniorNotes2016Member 2025-12-31 0000059527 leco:SeniorNotesSeriesBMember leco:SeniorNotes2015Member 2025-12-31 0000059527 leco:SeniorNotesSeriesAMember leco:SeniorNotes2024Member 2025-12-31 0000059527 leco:SeniorNotesSeriesAMember leco:SeniorNotes2016Member 2025-12-31 0000059527 us-gaap:NotesPayableOtherPayablesMember 2025-12-31 0000059527 srt:MinimumMember us-gaap:LineOfCreditMember 2024-06-20 2024-06-20 0000059527 srt:MaximumMember us-gaap:LineOfCreditMember 2024-06-20 2024-06-20 0000059527 leco:BillingsInExcessOfRevenueRecognizedMember 2026-03-31 0000059527 leco:AdvanceCustomerPaymentsMember 2026-03-31 0000059527 leco:BillingsInExcessOfRevenueRecognizedMember 2025-12-31 0000059527 leco:AdvanceCustomerPaymentsMember 2025-12-31 0000059527 us-gaap:CommonStockMember 2026-03-31 0000059527 us-gaap:CommonStockMember 2025-12-31 0000059527 us-gaap:CommonStockMember 2025-03-31 0000059527 us-gaap:CommonStockMember 2024-12-31 0000059527 2025-03-31 0000059527 2024-12-31 0000059527 leco:AlloySteelAustraliaIntPtyLtdMember 2025-08-01 2025-08-01 0000059527 leco:AlloySteelAustraliaIntPtyLtdMember 2026-01-01 2026-03-31 0000059527 leco:AlloySteelAustraliaIntPtyLtdMember 2025-01-01 2025-03-31 0000059527 leco:AlloySteelAustraliaIntPtyLtdMember 2025-08-01 0000059527 leco:AlloySteelAustraliaIntPtyLtdMember 2025-04-01 0000059527 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000059527 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000059527 us-gaap:OperatingSegmentsMember leco:InternationalWeldingMember 2026-03-31 0000059527 us-gaap:OperatingSegmentsMember leco:HarrisProductsGroupMember 2026-03-31 0000059527 us-gaap:OperatingSegmentsMember leco:AmericasWeldingMember 2026-03-31 0000059527 us-gaap:OperatingSegmentsMember 2026-03-31 0000059527 us-gaap:MaterialReconcilingItemsMember 2026-03-31 0000059527 us-gaap:CorporateNonSegmentMember 2026-03-31 0000059527 leco:EliminationsAndReconcilingItemsMember 2026-03-31 0000059527 us-gaap:OperatingSegmentsMember leco:InternationalWeldingMember 2025-12-31 0000059527 us-gaap:OperatingSegmentsMember leco:HarrisProductsGroupMember 2025-12-31 0000059527 us-gaap:OperatingSegmentsMember leco:AmericasWeldingMember 2025-12-31 0000059527 us-gaap:OperatingSegmentsMember 2025-12-31 0000059527 us-gaap:MaterialReconcilingItemsMember 2025-12-31 0000059527 us-gaap:CorporateNonSegmentMember 2025-12-31 0000059527 leco:EliminationsAndReconcilingItemsMember 2025-12-31 0000059527 2025-01-01 2025-03-31 0000059527 2025-12-31 0000059527 us-gaap:CorporateNonSegmentMember 2026-01-01 2026-03-31 0000059527 us-gaap:CorporateNonSegmentMember 2025-01-01 2025-03-31 0000059527 us-gaap:LineOfCreditMember 2024-06-20 0000059527 us-gaap:LineOfCreditMember 2024-06-20 2024-06-20 0000059527 us-gaap:OperatingSegmentsMember leco:InternationalWeldingMember 2026-01-01 2026-03-31 0000059527 us-gaap:OperatingSegmentsMember leco:HarrisProductsGroupMember 2026-01-01 2026-03-31 0000059527 us-gaap:OperatingSegmentsMember leco:AmericasWeldingMember 2026-01-01 2026-03-31 0000059527 us-gaap:OperatingSegmentsMember 2026-01-01 2026-03-31 0000059527 us-gaap:OperatingSegmentsMember leco:InternationalWeldingMember 2025-01-01 2025-03-31 0000059527 us-gaap:OperatingSegmentsMember leco:HarrisProductsGroupMember 2025-01-01 2025-03-31 0000059527 us-gaap:OperatingSegmentsMember leco:AmericasWeldingMember 2025-01-01 2025-03-31 0000059527 us-gaap:OperatingSegmentsMember 2025-01-01 2025-03-31 0000059527 srt:WeightedAverageMember leco:TotalSeniorUnsecuredNotesMember 2026-01-01 2026-03-31 0000059527 2026-03-31 0000059527 2026-01-01 2026-03-31 xbrli:shares iso4217:USD xbrli:pure iso4217:USD xbrli:shares leco:segment
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2026
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
Commission File Number: 0-1402
LINCOLN ELECTRIC HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Ohio
34-1860551
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
22801 St. Clair Avenue , Cleveland , Ohio
44117
(Address of principal executive offices)
(Zip Code)
( 216 ) 481-8100
(Registrant’s telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of exchange on which registered
Common Shares, without par value
LECO
The NASDAQ Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ⌧ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ⌧ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “small reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ⌧
The number of shares outstanding of the registrant’s common shares as of March 31, 2026 was 54,787,110 .
Table of Contents
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
3
Item 1. Financial Statements
3
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
4
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
5
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
6
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
7
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
21
Item 3. Quantitative and Qualitative Disclosures About Market Risk
29
Item 4. Controls and Procedures
29
PART II. OTHER INFORMATION
29
Item 1. Legal Proceedings
29
Item 1A. Risk Factors
29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
30
Item 4. Mine Safety Disclosures
30
Item 5. Other Information
30
Item 6. Exhibits
31
Signatures
32
2
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended
March 31,
2026
2025
Net sales (Note 2)
$
1,121,434
$
1,004,388
Cost of goods sold
722,302
638,940
Gross profit
399,132
365,448
Selling, general & administrative expenses
210,811
196,665
Rationalization and asset impairment net charges (Note 6)
2,163
3,865
Operating income
186,158
164,918
Interest expense, net
13,374
12,127
Other income
570
444
Income before income taxes
173,354
153,235
Income taxes (Note 11)
36,972
34,748
Net income
$
136,382
$
118,487
Basic earnings per share (Note 3)
$
2.49
$
2.11
Diluted earnings per share (Note 3)
$
2.47
$
2.10
Cash dividends declared per share
$
0.79
$
0.75
See notes to these consolidated financial statements.
3
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(In thousands)
Three Months Ended March 31,
2026
2025
Net income
$
136,382
$
118,487
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges
( 1,323 )
829
Defined benefit pension plan activity
( 56 )
( 1,285 )
Currency translation adjustment
( 6,459 )
29,679
Other comprehensive (loss) income:
( 7,838 )
29,223
Comprehensive income
$
128,544
$
147,710
See notes to these consolidated financial statements.
4
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31, 2026
December 31, 2025
(UNAUDITED)
(NOTE 1)
ASSETS
Current Assets
Cash and cash equivalents
$
298,903
$
308,789
Accounts receivable (less allowance for doubtful accounts of $ 10,662 in 2026; $ 11,326 in 2025)
598,315
538,791
Inventories (Note 8)
693,938
633,364
Other current assets
272,288
258,568
Total Current Assets
1,863,444
1,739,512
Property, plant and equipment (less accumulated depreciation of $ 954,195 in 2026; $ 942,806 in 2025)
720,836
702,762
Goodwill
886,373
886,686
Other assets
429,742
448,617
TOTAL ASSETS
$
3,900,395
$
3,777,577
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt (Note 10)
$
163,502
$
143,780
Trade accounts payable
448,138
364,934
Accrued employee compensation and benefits
110,861
116,158
Other current liabilities
297,856
331,819
Total Current Liabilities
1,020,357
956,691
Long-term debt, less current portion (Note 10)
1,150,138
1,150,228
Other liabilities
218,640
200,864
Total Liabilities
2,389,135
2,307,783
Shareholders' Equity
Common shares, without par value - at stated capital amount; authorized 240,000,000 shares; issued 98,581,434 shares in 2026 and 2025; outstanding 54,787,110 shares in 2026 and 54,845,950 in 2025
9,858
9,858
Additional paid-in capital
612,391
601,566
Retained earnings
4,435,760
4,342,080
Accumulated other comprehensive loss
( 213,769 )
( 205,931 )
Treasury shares, at cost - 43,794,324 shares in 2026 and 43,735,484 shares in 2025
( 3,332,980 )
( 3,277,779 )
Total Equity
1,511,260
1,469,794
TOTAL LIABILITIES AND TOTAL EQUITY
$
3,900,395
$
3,777,577
See notes to these consolidated financial statements.
5
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EQUITY
(UNAUDITED)
(In thousands, except per share amounts)
Accumulated
Common
Additional
Other
Shares
Common
Paid-In
Retained
Comprehensive
Treasury
Outstanding
Shares
Capital
Earnings
Income (Loss)
Shares
Total
Balance at December 31, 2025
54,846
$
9,858
$
601,566
$
4,342,080
$
( 205,931 )
$
( 3,277,779 )
$
1,469,794
Net income
136,382
136,382
Defined benefit pension plan activity, net of tax
( 56 )
( 56 )
Unrealized loss on derivatives designated and qualifying as cash flow hedges, net of tax
( 1,323 )
( 1,323 )
Currency translation adjustment, net of tax
( 6,459 )
( 6,459 )
Cash dividends declared – $ 0.79 per share
( 43,408 )
( 43,408 )
Stock-based compensation activity
151
16,670
1,469
18,139
Purchase of shares for treasury
( 210 )
( 56,670 )
( 56,670 )
Other
( 5,845 )
706
( 5,139 )
Balance at March 31, 2026
54,787
$
9,858
$
612,391
$
4,435,760
$
( 213,769 )
$
( 3,332,980 )
$
1,511,260
Accumulated
Common
Additional
Other
Shares
Common
Paid-In
Retained
Comprehensive
Treasury
Outstanding
Shares
Capital
Earnings
Income (Loss)
Shares
Total
Balance at December 31, 2024
56,211
$
9,858
$
566,740
$
3,993,016
$
( 300,135 )
$
( 2,942,046 )
$
1,327,433
Net income
118,487
118,487
Defined benefit pension plan activity, net of tax
( 1,285 )
( 1,285 )
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax
829
829
Currency translation adjustment, net of tax
29,679
29,679
Cash dividends declared – $ 0.75 per share
( 42,073 )
( 42,073 )
Stock-based compensation activity
157
13,105
1,501
14,606
Purchase of shares for treasury
( 542 )
( 106,694 )
( 106,694 )
Other
1,405
( 2,217 )
( 812 )
Balance at March 31, 2025
55,826
$
9,858
$
581,250
$
4,067,213
$
( 270,912 )
$
( 3,047,239 )
$
1,340,170
6
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
Three Months Ended March 31,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
136,382
$
118,487
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization
26,009
23,784
Deferred income taxes
22,533
( 5,838 )
Stock-based compensation
9,580
8,352
Other, net
( 1,516 )
282
Changes in operating assets and liabilities, net of effects from acquisitions:
Increase in accounts receivable
( 60,212 )
( 34,108 )
Increase in inventories
( 61,876 )
( 20,167 )
(Increase) decrease in other current assets
( 13,471 )
2,057
Increase in trade accounts payable
83,784
64,884
(Decrease) increase in other current liabilities
( 43,138 )
21,206
Net change in other assets and liabilities
4,095
6,754
NET CASH PROVIDED BY OPERATING ACTIVITIES
102,170
185,693
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
( 39,163 )
( 26,949 )
Acquisition of businesses, net of cash acquired
140
—
Proceeds from sale of property, plant and equipment
308
4,646
NET CASH USED BY INVESTING ACTIVITIES
( 38,715 )
( 22,303 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (payments on) short-term borrowings, net
19,613
( 904 )
Payments on long-term borrowings
—
( 169 )
Proceeds from exercise of stock options
8,559
6,254
Purchase of shares for treasury
( 56,670 )
( 106,694 )
Cash dividends paid to shareholders
( 44,071 )
( 42,975 )
NET CASH USED BY FINANCING ACTIVITIES
( 72,569 )
( 144,488 )
Effect of exchange rate changes on Cash and cash equivalents
( 772 )
( 1,459 )
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
( 9,886 )
17,443
Cash and cash equivalents at beginning of period
308,789
377,262
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
298,903
$
394,705
See notes to these consolidated financial statements.
7
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Dollars in thousands, except per share amounts
NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The consolidated financial statements include the accounts of Lincoln Electric Holdings, Inc. and its wholly-owned and majority-owned subsidiaries for which it has a controlling interest (the “Company”) after elimination of all inter-company accounts, transactions and profits.
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. However, in the opinion of management, these unaudited consolidated financial statements contain all the adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position, results of operations and cash flows for the interim periods. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026.
The accompanying Condensed Consolidated Balance Sheet at December 31, 2025 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Certain reclassifications have been made to the prior period amounts to conform to the current period presentation, none of which are material.
New Accounting Pronouncements:
This section provides a description of new accounting pronouncements (“Accounting Standards Updates” or “ASUs”) issued by the Financial Accounting Standards Board (“FASB”) that are applicable to the Company.
8
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The Company is currently evaluating the impact on its financial statements of the following ASUs:
Standard
Description
ASU No. 2025-09, Derivatives and Hedging , issued November 2025
Updates hedge accounting guidance to better align financial reporting with risk management activities. The amendments are effective for annual periods beginning after December 15, 2026 and interim periods within those annual reporting periods. Early adoption is permitted.
ASU No. 2025-06, Goodwill and Other – Internal-Use Software , issued September 2025
Updates requirements for capitalization of internal-use software costs. The amendments are effective for annual periods beginning after December 15, 2027 and interim periods within those annual reporting periods. Early adoption is permitted.
ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures , issued November 2024
Requires enhanced disclosures of specified information about certain costs and expenses. The amendments are effective for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028. Early adoption is prohibited.
NOTE 2 — REVENUE RECOGNITION
The following table presents the Company’s Net sales disaggregated by product line:
Three Months Ended March 31,
2026
2025
Consumables
$
636,009
$
520,603
Equipment
275,157
268,507
Automation
210,268
215,278
Net sales
$
1,121,434
$
1,004,388
Consumable sales consist of welding, brazing and soldering filler metals. Equipment sales consist of arc welding equipment, laser, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, mobile power equipment, wear solutions, software and education solutions. Automation sales consist of a comprehensive portfolio of solutions for joining, cutting, material handling, module assembly, and end of line testing. Consumable and Equipment products are sold within each of the Company’s operating segments. Automation products are sold within the Company’s Americas Welding and International Welding operating segments.
Within the Automation product line, there are certain customer contracts related to automation products that may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines the standalone selling price based on the prices charged to customers or using expected cost plus margin. Approximately 10 % of the Company’s consolidated Net sales are recognized over time.
At March 31, 2026, the Company recorded $ 42,404 related to advance customer payments and $ 53,660 related to billings in excess of revenue recognized. These contract liabilities are included in Other current liabilities in the Condensed Consolidated Balance Sheets. At December 31, 2025, the balances related to advance customer payments and billings in excess of revenue recognized were $ 49,451 and $ 62,778 , respectively. Substantially all of the Company’s contract liabilities are recognized within twelve months based on contract duration. The Company records an asset for contracts where it has recognized revenue, but has not yet invoiced the customer for goods or services.
9
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
At March 31, 2026 and December 31, 2025, the Company recorded $ 86,576 and $ 78,211 , respectively, related to these contract assets which are included in Other current assets in the Condensed Consolidated Balance Sheets. Contract asset amounts are expected to be billed within the next twelve months.
NOTE 3 — EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended March 31,
2026
2025
Numerator:
Net income
$
136,382
$
118,487
Denominator (shares in 000's):
Basic weighted average shares outstanding
54,822
56,058
Effect of dilutive securities - Stock options and awards
495
469
Diluted weighted average shares outstanding
55,317
56,527
Basic earnings per share
$
2.49
$
2.11
Diluted earnings per share
$
2.47
$
2.10
For the three months ended March 31, 2026 and 2025, common shares subject to equity-based awards of 39,570 and 21,704 , respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.
NOTE 4 — ACQUISITIONS
The acquired company discussed below is accounted for as a business combination and is included in the consolidated financial statements as of the date of acquisition. The acquired company is not material to the actual or pro forma Consolidated Statements of Income or Consolidated Statements of Cash Flows; as such, pro forma information related to this acquisition has not been presented.
On April 1, 2025, the Company acquired a 35 % ownership interest in Alloy Steel Australia (Int) Pty Ltd. (“Alloy Steel”), a privately held manufacturer of maintenance and repair solutions headquartered in Perth, Australia. On August 1, 2025, the Company acquired the remaining 65 % ownership interest in Alloy Steel. In total, the Company acquired 100 % ownership of Alloy Steel for a total purchase price of $ 130,060 , net of cash acquired and certain debt-like items. Alloy Steel supplies proprietary technology, engineering services and digital monitoring to the mining sector.
During the three months ended March 31, 2026 and 2025, the Company recognized acquisition costs of $ 356 and $ 802 , respectively, which are included in Selling, general & administrative expenses on the Consolidated Statements of Income and are expensed as incurred.
NOTE 5 — SEGMENT INFORMATION
The Company is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. The Company’s innovative solutions enable higher quality and productivity across a variety of processes including welding, cutting, brazing, machining, process automation, and field repair.
The Company’s products include arc welding equipment, filler metals (welding, brazing and soldering consumables),cutting systems (laser, plasma and oxyfuel), wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, mobile power equipment, wear solutions, software, and education solutions; as well as a comprehensive portfolio of automated solutions and system integration services for joining, cutting, material
10
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
handling, module assembly, and end of line testing. Services include additive manufacturing, precision fabrication, wear services, upfitting, and training.
The Company has aligned its organizational and leadership structure into three operating segments to support growth strategies and enhance the utilization of the Company’s worldwide resources and global sourcing initiatives. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global cutting, soldering and brazing businesses, specialty gas equipment, as well as its retail business in the United States.
Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the adjusted earnings before interest and income taxes ("Adjusted EBIT") profit measure. Adjusted EBIT is defined as Operating income plus Other income (expense), adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM uses segment Adjusted EBIT to allocate resources for each segment predominantly in establishing the Company’s long-term strategy and in developing the annual budget. The CODM considers actual performance using Adjusted EBIT when making decisions about allocating capital and resources to the segments.
11
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The following tables present Adjusted EBIT by segment and other segment information:
The Harris
Americas
International
Products
Welding
Welding
Group
Total
Three Months Ended March 31, 2026
Net sales
$
706,225
$
227,035
$
188,174
$
1,121,434
Inter-segment sales
36,709
5,807
4,664
47,180
742,934
232,842
192,838
1,168,614
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales
( 47,180 )
Net sales
$
1,121,434
Cost of goods sold
464,890
167,084
137,600
Other segment expenses (1) (3)
151,149
44,868
14,247
Addback: Special items (charges) gain (1)
( 573 )
( 1,772 )
182
Segment Adjusted EBIT
$
127,468
$
22,662
$
40,809
$
190,939
Other Segment Information
Capital expenditures
$
( 26,983 )
$
( 9,315 )
$
( 2,865 )
$
( 39,163 )
Depreciation and amortization
17,774
6,682
2,649
27,105
Three Months Ended March 31, 2025
Net sales
$
653,107
$
219,061
$
132,220
$
1,004,388
Inter-segment sales
30,372
6,832
3,984
41,188
683,479
225,893
136,204
1,045,576
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales
( 41,188 )
Net sales
$
1,004,388
Cost of goods sold
417,700
163,442
97,974
Other segment expenses (2) (3)
143,716
40,851
14,079
Addback: Special items charge (2)
( 2,135 )
( 1,412 )
( 178 )
Segment Adjusted EBIT
$
124,198
$
23,012
$
24,329
$
171,539
Other Segment Information
Capital expenditures
$
( 21,766 )
$
( 3,608 )
$
( 1,575 )
$
( 26,949 )
Depreciation and amortization
16,114
5,378
2,663
24,155
(1) In the three months ended March 31, 2026, special items within Other Segment expenses primarily include Rationalization and asset impairment net charges of $ 573 in Americas Welding, $ 1,772 in International Welding, and a net gain of $ 182 in The Harris Products Group, as discussed in Note 6.
(2) In the three months ended March 31, 2025, special items within Other Segment expenses primarily include Rationalization and asset impairment net charges of $ 2,135 , $ 1,552 , and $ 178 in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6.
(3) Other segment expenses primarily include:
a. Selling, general & administrative expenses – including bonus and research and development expenses.
b. Rationalization and asset impairment net charges – refer to Note 6 for further discussion.
12
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The following table presents reconciliations of segment information to the Company’s consolidated totals:
Three Months Ended March 31,
2026
2025
Reconciliation of Segment Adjusted EBIT to Consolidated Income before income taxes
Segment Adjusted EBIT
$
190,939
$
171,539
Addback: Segment special items charge
( 2,163 )
( 3,725 )
Corporate special items charge (1)
( 653 )
( 802 )
Elimination of inter-segment loss (profit)
92
( 1,012 )
Unallocated corporate expenses, net
( 1,487 )
( 638 )
Interest income
1,385
2,255
Interest expense
( 14,759 )
( 14,382 )
Consolidated Income before income taxes
$
173,354
$
153,235
Reconciliation of Other Segment Information to Consolidated Information
Capital expenditures
Segment totals
$
( 39,163 )
$
( 26,949 )
Adjustments
—
—
Consolidated totals
$
( 39,163 )
$
( 26,949 )
Depreciation and amortization
Segment totals
$
27,105
$
24,155
Adjustments
( 1,096 )
( 371 )
Consolidated totals
$
26,009
$
23,784
(1) Corporate special items primarily include transaction costs.
March 31, 2026
December 31, 2025
Reconciliation of Segment Assets to Consolidated Assets
Americas Welding
$
2,524,416
$
2,464,376
International Welding
1,233,435
1,244,117
The Harris Products Group
494,690
431,259
Total Segment Assets
4,252,541
4,139,752
Corporate Assets
36,588
41,033
LIFO reserve not allocated to segments
( 139,427 )
( 138,589 )
Eliminations
( 249,307 )
( 264,619 )
Total Consolidated Assets
$
3,900,395
$
3,777,577
NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS
The Company has rationalization plans within all three of its reportable segments. The plans impacted headcount and included the consolidation of manufacturing facilities to better align with the cost structure, economic conditions and operating needs of the business.
The following table presents Rationalization and asset impairment net charges by segment:
Three Months Ended March 31,
2026
2025
Americas Welding
$
573
$
2,135
International Welding
1,772
1,552
The Harris Products Group
( 182 )
178
Total
$
2,163
$
3,865
At March 31, 2026 and December 31, 2025, rationalization liabilities of $ 4,140 and $ 7,085 , respectively, were recognized in Other current liabilities in the Company’s Condensed Consolidated Balance Sheet. The Company does not anticipate significant additional charges related to the completion of these plans.
13
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital. The Company continues to evaluate its cost structure and additional rationalization actions may result in charges in future periods.
The following table summarizes the activity related to rationalization liabilities for the three months ended March 31, 2026:
Americas
International
The Harris Products
Welding
Welding
Group
Consolidated
Balance at December 31, 2025
$
944
$
5,713
$
428
$
7,085
Payments and other adjustments
( 1,030 )
( 4,048 )
( 30 )
( 5,108 )
Charged to expense
573
1,772
( 182 )
2,163
Balance at March 31, 2026
$
487
$
3,437
$
216
$
4,140
NOTE 7 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ("AOCI")
The following tables set forth the total changes in AOCI by component, net of taxes:
Three Months Ended March 31, 2026
Unrealized gain
(loss) on derivatives
designated and
Defined benefit
Currency
qualifying as cash
pension plan
translation
flow hedges
activity
adjustment
Total
Balance at December 31, 2025
$
17,687
$
( 1,062 )
$
( 222,556 )
$
( 205,931 )
Other comprehensive income (loss) before reclassification
1,079
—
( 6,459 )
( 5,380 )
Amounts reclassified from AOCI
( 2,402 )
( 56 )
—
( 2,458 )
Net current-period other comprehensive loss
( 1,323 )
( 56 )
( 6,459 )
( 7,838 )
Balance at March 31, 2026
$
16,364
$
( 1,118 )
$
( 229,015 )
$
( 213,769 )
Three Months Ended March 31, 2025
Unrealized gain
(loss) on derivatives
designated and
Defined benefit
Currency
qualifying as cash
pension plan
translation
flow hedges
activity
adjustment
Total
Balance at December 31, 2024
$
17,255
$
( 1,048 )
$
( 316,342 )
$
( 300,135 )
Other comprehensive income before reclassification
1,148
—
29,679
30,827
Amounts reclassified from AOCI
( 319 )
( 1,285 )
—
( 1,604 )
Net current-period other comprehensive income (loss)
829
( 1,285 )
29,679
29,223
Balance at March 31, 2025
$
18,084
$
( 2,333 )
$
( 286,663 )
$
( 270,912 )
14
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
NOTE 8 — INVENTORIES
Inventories in the Condensed Consolidated Balance Sheets are comprised of the following components:
March 31, 2026
December 31, 2025
Raw materials
$
155,206
$
164,440
Work-in-process
157,943
124,351
Finished goods
380,789
344,573
Total
$
693,938
$
633,364
At both March 31, 2026 and December 31, 2025, approximately 38 % of total inventories were valued using the last-in, first-out ("LIFO") method. The excess of current cost over LIFO cost was $ 139,427 and $ 138,589 at March 31, 2026 and December 31, 2025, respectively.
NOTE 9 — LEASES
The table below summarizes the right-of-use assets and lease liabilities in the Company’s Condensed Consolidated Balance sheets:
Operating Leases
Balance Sheet Classification
March 31, 2026
December 31, 2025
Right-of-use assets
Other assets
$
50,887
$
52,989
Current liabilities
Other current liabilities
$
13,205
$
13,460
Noncurrent liabilities
Other liabilities
37,996
40,061
Total lease liabilities
$
51,201
$
53,521
The total future minimum lease payments for noncancelable operating leases were as follows:
March 31, 2026
2026
$
15,376
2027
12,639
2028
10,612
2029
7,739
2030
4,076
After 2030
10,597
Total lease payments
$
61,039
Less: Imputed interest
9,838
Operating lease liabilities
$
51,201
15
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
Other information related to leases was as follows:
Three Months Ended March 31,
2026
2025
Lease expense (1)
$
6,624
$
5,890
Cash paid for amounts included in the measurement of lease liabilities (2)
4,671
2,552
Right-of-use assets obtained in exchange for operating lease liabilities
1,516
254
Weighted average discount rate
3.7
%
3.7
%
Weighted average remaining lease term
6.0 years
6.3 years
(1) Amounts are included in Costs of goods sold and Selling, general and administrative expenses in the Company’s Consolidated Statement of Income.
(2) Amounts are included in Net Cash Provided by Operating Activities in the Company’s Consolidated Statement of Cash Flows.
N OTE 10 — DEBT
At March 31, 2026 and December 31, 2025, debt consisted of the following:
March 31, 2026
December 31, 2025
Long-term debt
Interest Rate
Senior Unsecured Notes
2015 Notes - Series B due August 20, 2030
3.35
%
$
100,000
$
100,000
2015 Notes - Series C due April 1, 2035
3.61
%
50,000
50,000
2015 Notes - Series D due April 1, 2045
4.02
%
100,000
100,000
2016 Notes - Series A due October 20, 2028
2.75
%
100,000
100,000
2016 Notes - Series B due October 20, 2033
3.03
%
100,000
100,000
2016 Notes - Series C due October 20, 2037
3.27
%
100,000
100,000
2016 Notes - Series D due October 20, 2041
3.52
%
50,000
50,000
2024 Notes - Series A due August 22, 2029
5.55
%
75,000
75,000
2024 Notes - Series B due August 22, 2031
5.62
%
75,000
75,000
2024 Notes - Series C due June 20, 2034
5.74
%
400,000
400,000
Other borrowings due through 2030
Variable (1)
—
10
1,150,000
1,150,010
Plus interest rate swap adjustment
2,508
2,678
Less current portion
—
—
Less debt issuance costs
2,370
2,460
Long-term debt, less current portion
1,150,138
1,150,228
Short-term debt
Amounts due to banks
Variable (2)
163,502
143,780
Current portion long-term debt
—
—
Total short-term debt
163,502
143,780
Total debt
$
1,313,640
$
1,294,008
(1) Interest rate was 7.97 % at December 31, 2025.
(2) Weighted average interest rate on the revolving credit facility was 4.7 % as of both March 31, 2026 and December 31, 2025. Weighted average interest rate of other lines of credit related to liquidity needs in a hyperinflationary country was 41.6 % as of December 31, 2025.
16
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
Senior Unsecured Notes
As of March 31, 2026, the Company’s total weighted average effective interest rate and remaining weighted average tenure of the senior unsecured notes is 4.16 %, including the impact from terminated swap agreements, and 8.4 years, respectively. The senior unsecured notes contain certain affirmative and negative covenants. As of March 31, 2026, the Company was in compliance with all of its debt covenants relating to the senior unsecured notes.
Revolving Credit Agreements
On June 20, 2024, the Company entered into a $ 1 billion revolving credit facility, which may be increased, subject to certain conditions including the consent of its lenders, by an additional amount up to $ 300,000 . The revolving credit facility matures on June 20, 2029. The revolving credit facility will initially bear interest on outstanding borrowings at a per annum rate equal to secured overnight finance rate (“ SOFR ”) plus 1.10 % and could fluctuate based on the Company’s total net leverage ratio at a spread ranging from SOFR plus 1.10 % to SOFR plus 1.60 %. The financial covenants consist of a maximum net leverage ratio of 3.5 x EBITDA and a minimum interest coverage ratio of 2.5 x EBITDA. The revolving credit facility contains customary representations and warranties, as well as customary affirmative, negative and financial covenants for credit facilities of this type (subject to negotiated baskets and exceptions), including limitations on the Company and its subsidiaries with respect to liens, investments, distributions, mergers and acquisitions, dispositions of assets and transactions with affiliates. As of March 31, 2026, the Company was in compliance with all of its covenants. The Company had borrowings under the revolving credit facility of $ 163,502 as of March 31, 2026.
The Company has other lines of credit and debt agreements totaling $ 24,982 . As of March 31, 2026, the Company was in compliance with all of its covenants and had no outstanding debt under short-term lines of credit.
Fair Value of Debt
At March 31, 2026 and December 31, 2025, the fair value of long-term debt, including the current portion, was approximately $ 1,075,384 and $ 1,125,338 , respectively. The approximate fair value of the Company’s long-term debt, including current maturities, was based on a valuation model using Level 2 observable inputs using available market information and methodologies requiring judgment. The carrying value of this debt at such dates was $ 1,150,138 and $ 1,150,232 , respectively. Since judgment is required in interpreting market information, the fair value of the debt is not necessarily the amount which could be realized in a current market exchange.
NOTE 11 — INCOME TAXES
The Company recognized $ 36,972 of tax expense on pre-tax income of $ 173,354 , resulting in an effective income tax rate of 21.3 % for the three months ended March 31, 2026. The effective income tax rate was 22.7 % for the three months ended March 31, 2025. The effective tax rate was lower for the three months ended March 31, 2026, as compared with the same period in 2025, primarily due to the mix of earnings and timing of discrete tax items.
NOTE 12 — DERIVATIVES
The Company uses derivative instruments to manage exposures to currency exchange rates, interest rates and commodity prices arising in the normal course of business. Both at inception and on an ongoing basis, the derivative instruments that qualify for hedge accounting are assessed as to their effectiveness, when applicable. Hedge ineffectiveness was immaterial in the three months ended March 31, 2026 and 2025.
The Company is subject to the credit risk of the counterparties to derivative instruments. Counterparties include a number of major banks and financial institutions. None of the concentrations of risk with any individual counterparty
17
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
was considered significant at March 31, 2026. The Company does not expect any counterparties to fail to meet their obligations.
Cash Flow Hedges
Certain foreign currency forward contracts are qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $ 76,794 and $ 88,555 at March 31, 2026 and December 31, 2025, respectively.
Net Investment Hedges
The Company has foreign currency forward contracts and zero-cost collar contracts that qualify and are designated as net investment hedges. The dollar equivalent gross notional amount of the foreign currency forward contracts and zero-cost collar contracts were $ 269,566 and $ 337,659 at March 31, 2026 and December 31, 2025, respectively.
Derivatives Not Designated as Hedging Instruments
The Company has certain foreign exchange forward contracts that are not designated as hedges. These derivatives are held as economic hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $ 409,689 and $ 370,668 at March 31, 2026 and December 31, 2025, respectively.
Fair values of derivative instruments in the Company’s Condensed Consolidated Balance Sheets consisted of the following:
March 31, 2026
December 31, 2025
Other
Other
Other
Other
Current
Current
Other
Other
Current
Current
Other
Other
Derivatives by hedge designation
Assets
Liabilities
Assets
Liabilities
Assets
Liabilities
Assets
Liabilities
Designated as hedging instruments:
Foreign exchange contracts
$
1,507
$
482
$
—
$
—
$
2,149
$
289
$
—
$
—
Net investment contracts
3,784
1,255
—
—
102
12,529
—
—
Not designated as hedging instruments:
Foreign exchange contracts
1,419
1,587
—
—
582
470
—
—
Total derivatives
$
6,710
$
3,324
$
—
$
—
$
2,833
$
13,288
$
—
$
—
The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following:
Three Months Ended March 31,
Derivatives by hedge designation
Classification of (loss) gain
2026
2025
Not designated as hedges:
Foreign exchange contracts
Selling, general & administrative expenses
$
( 3,353 )
$
8,333
18
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The effects of designated hedges on AOCI consisted of the following:
Total gain (loss) recognized in AOCI, net of tax
March 31, 2026
December 31, 2025
Foreign exchange contracts
$
642
$
1,396
Forward starting swap agreements
15,722
16,291
Net investment contracts
( 4,179 )
( 5,721 )
The Company expects a gain of $ 642 related to existing contracts to be reclassified from AOCI, net of tax, to earnings over the next 12 months as the hedged transactions are realized.
The effects of designated hedges on the Company’s Consolidated Statements of Income consisted of the following:
Gain (loss) recognized in the
Three Months Ended March 31,
Derivative type
Consolidated Statements of Income:
2026
2025
Foreign exchange contracts
Sales
$
1,472
$
( 713 )
Cost of goods sold
1,560
361
Forward starting swap agreements
Interest expense, net
689
689
NOTE 13 — FAIR VALUE
The following table provides a summary of assets and liabilities as of March 31, 2026, measured at fair value on a recurring basis:
Quoted Prices in
Active Markets for
Identical Assets or
Significant Other
Significant
Balance as of
Liabilities
Observable Inputs
Unobservable
Description
March 31, 2026
(Level 1)
(Level 2)
Inputs (Level 3)
Assets:
Foreign exchange contracts
$
2,926
$
—
$
2,926
$
—
Net investment contracts
3,784
—
3,784
—
Pension surplus
9,314
9,314
—
—
Total assets
$
16,024
$
9,314
$
6,710
$
—
Liabilities:
Foreign exchange contracts
$
2,069
$
—
$
2,069
$
—
Net investment contracts
1,255
—
1,255
—
Deferred compensation
27,867
—
27,867
—
Total liabilities
$
31,191
$
—
$
31,191
$
—
19
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The following table provides a summary of assets and liabilities as of December 31, 2025, measured at fair value on a recurring basis:
Quoted Prices in
Active Markets for
Identical Assets or
Significant Other
Significant
Balance as of
Liabilities
Observable Inputs
Unobservable
Description
December 31, 2025
(Level 1)
(Level 2)
Inputs (Level 3)
Assets:
Foreign exchange contracts
$
2,731
$
—
$
2,731
$
—
Net investment contracts
102
—
102
—
Pension surplus
12,082
12,082
—
—
Total assets
$
14,915
$
12,082
$
2,833
$
—
Liabilities:
Foreign exchange contracts
$
759
$
—
$
759
$
—
Net investment contracts
12,529
—
12,529
—
Deferred compensation
24,456
—
24,456
—
Total liabilities
$
37,744
$
—
$
37,744
$
—
The fair value of the Company’s pension surplus assets are based on quoted market prices in active markets and are included in the Level 1 fair value hierarchy. The pension surplus assets were invested in money market and short-term duration bond funds at both March 31, 2026 and December 31, 2025.
The Company’s derivative contracts are valued at fair value using the market approach. The Company measures the fair value of foreign exchange contracts and net investment contracts using Level 2 inputs based on observable spot and forward rates in active markets.
The deferred compensation liability is the Company’s obligation under its executive deferred compensation plan. The Company measures the fair value of the liability using the market values of the participants’ underlying investment fund elections.
The fair value of Cash and cash equivalents, Accounts receivable, Short-term debt excluding the current portion of Long-term debt and Trade accounts payable approximated book value due to the short-term nature of these instruments at both March 31, 2026 and December 31, 2025.
The Company has various financial instruments, including cash and cash equivalents, short and long-term debt and forward contracts. While these financial instruments are subject to concentrations of credit risk, the Company has minimized this risk by entering into arrangements with a number of major banks and financial institutions and investing in several high-quality instruments. The Company does not expect any counterparties to fail to meet their obligations.
NOTE 14 — SUPPLIER FINANCING PROGRAM
The Company’s suppliers, at the supplier’s sole discretion, are able to factor receivables due from the Company to a financial institution on terms directly negotiated with the financial institution without affecting the Company’s balance sheet classification of the corresponding payable. The Company pays the financial institution the stated amount of the confirmed invoices from its designated suppliers on the original maturity dates of the invoices. At March 31, 2026 and December 31, 2025, Trade accounts payable included $ 28,639 and $ 25,709 , respectively, payable to suppliers that have elected to participate in the supplier financing program.
(1)
20
Table of Contents
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Dollars in thousands, except per share amounts )
This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read together with the Company’s unaudited consolidated financial statements and other financial information included elsewhere in this Quarterly Report on Form 10-Q.
General
The Company is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. The Company’s innovative solutions enable higher quality and productivity across a variety of processes including welding, cutting, brazing, machining, process automation, and field repair.
The Company’s products include arc welding equipment, filler metals (welding, brazing and soldering consumables), cutting systems (laser, plasma and oxyfuel), wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, mobile power equipment, wear solutions, software, and education solutions; as well as a comprehensive portfolio of automated solutions and system integration services for joining, cutting, material handling, module assembly, and end of line testing. Services include additive manufacturing, precision fabrication, wear services, upfitting, and training.
Solutions range in technology and features from basic units used for personal, maintenance and light manufacturing use to highly sophisticated robotic solutions for complex fabrication and production activities.
The Company’s business units are aligned into three operating segments. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global cutting, soldering and brazing businesses, specialty gas equipment, as well as the retail business which is primarily in the United States.
21
Table of Contents
Results of Operations
The following table shows the Company’s results of operations:
Three Months Ended March 31,
Favorable (Unfavorable)
2026
2025
2026 vs. 2025
Amount
% of Sales
Amount
% of Sales
$
%
Net sales
$
1,121,434
$
1,004,388
$
117,046
11.7
%
Cost of goods sold
722,302
638,940
(83,362)
(13.0)
%
Gross profit
399,132
35.6
%
365,448
36.4
%
33,684
9.2
%
Selling, general & administrative expenses
210,811
18.8
%
196,665
19.6
%
(14,146)
(7.2)
%
Rationalization and asset impairment net charges
2,163
0.2
%
3,865
0.4
%
1,702
44.0
%
Operating income
186,158
16.6
%
164,918
16.4
%
21,240
12.9
%
Interest expense, net
13,374
12,127
(1,247)
(10.3)
%
Other income
570
444
126
28.4
%
Income before income taxes
173,354
15.5
%
153,235
15.3
%
20,119
13.1
%
Income taxes
36,972
34,748
(2,224)
(6.4)
%
Effective tax rate
21.3
%
22.7
%
1.4
%
Net income
$
136,382
12.2
%
$
118,487
11.8
%
$
17,895
15.1
%
Diluted earnings per share
$
2.47
$
2.10
$
0.37
17.6
%
Net Sales:
The following table summarizes the impact of volume, acquisitions, price and foreign currency exchange rates on Net sales on a consolidated basis:
Three Months Ended March 31,
Change in Net Sales due to:
Net Sales
Foreign
Net Sales
2025
Volume
Price
Acquisitions
Exchange
2026
Lincoln Electric Holdings, Inc.
$
1,004,388
$
(25,641)
$
104,558
$
15,794
$
22,335
$
1,121,434
% Change
Lincoln Electric Holdings, Inc.
(2.6)
%
10.4
%
1.6
%
2.3
%
11.7
%
Net sales increased for the three months ended March 31, 2026 due to an increase in organic sales and a benefit from acquisitions and foreign exchange. The increase in organic sales for the three months ended March 31, 2026 is driven by an increase in pricing primarily due to higher input costs, partially offset by lower volumes.
Gross Profit:
Gross profit as a percentage of sales decreased 0.8% for the three months ended March 31, 2026 as compared to the same 2025 period, driven by an unfavorable impacts from volumes and product mix. The three months ended March 31, 2026 and 2025 includes last-in, first-out (“LIFO”) charges of $838 and $1,761, respectively, which was primarily due to rising input costs.
Selling, General & Administrative Expenses:
Selling, general & administrative expenses increased in the three months ended March 31, 2026 as compared to the same 2025 period, primarily due to increases in discretionary spend, employee costs and the unfavorable impact of foreign currency translation. Selling, general & administrative expenses as a percentage of sales decreased primarily due to higher organic sales.
22
Table of Contents
Operating Income:
Operating income as a percentage of sales was 16.6% for the three months ended March 31, 2026 as compared to 16.4% in the prior year period. Excluding special items, Operating income as a percentage of sales was 16.9% for both the three months ended March 31, 2026 and 2025. Refer to explanations above for additional details. Also refer to Non-GAAP Financial Measures for a reconciliation of Adjusted operating income.
Income Taxes:
The effective tax rate was lower for the three months ended March 31, 2026 as compared to the same 2025 period, primarily due to the mix of earnings and timing of discrete tax items.
Segment Results
The following table presents components of Net sales by segment:
Three Months Ended March 31,
Change in Net Sales due to:
Net Sales
Foreign
Net Sales
2025
Volume (1)
Price (2)
Acquisitions (3)
Exchange (4)
2026
Operating Segments
Americas Welding
$
653,107
$
(2,635)
$
49,479
$
—
$
6,274
$
706,225
International Welding
219,061
(21,631)
297
15,794
13,514
227,035
The Harris Products Group
132,220
(1,375)
54,782
—
2,547
188,174
% Change
Americas Welding
(0.4)
%
7.6
%
—
0.9
%
8.1
%
International Welding
(9.9)
%
0.1
%
7.2
%
6.2
%
3.6
%
The Harris Products Group
(1.0)
%
41.4
%
—
1.9
%
42.3
%
(1) Decrease for the three months ended March 31, 2026 in International Welding is primarily related to lower project volumes within the Automation product line and the Middle East conflict.
(2) Increase in Americas Welding and The Harris Products Group due to price actions taken in response to higher input costs.
(3) Increase in International Welding due to the acquisition discussed in Note 4 to the consolidated financial statements.
(4) Increase for the three months ended March 31, 2026 for all three segments relates to the weaker U.S. dollar.
Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the Adjusted EBIT profit measure. Adjusted EBIT is defined as Operating income plus Other income, adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.
23
Table of Contents
The following table presents Adjusted EBIT by segment:
Favorable
(Unfavorable)
March 31,
2026 vs. 2025
2026
2025
$
%
Americas Welding:
Net sales
$
706,225
$
653,107
$
53,118
8.1
%
Inter-segment sales
36,709
30,372
6,337
20.9
%
Total Sales
$
742,934
$
683,479
$
59,455
8.7
%
Adjusted EBIT (1) (4)
$
127,468
$
124,198
$
3,270
2.6
%
As a percent of total sales (1)
17.2
%
18.2
%
(1.0)
%
International Welding:
Net sales
$
227,035
$
219,061
$
7,974
3.6
%
Inter-segment sales
5,807
6,832
(1,025)
(15.0)
%
Total Sales
$
232,842
$
225,893
$
6,949
3.1
%
Adjusted EBIT (2) (5)
$
22,662
$
23,012
$
(350)
(1.5)
%
As a percent of total sales (2)
9.7
%
10.2
%
(0.5)
%
The Harris Products Group:
Net sales
$
188,174
$
132,220
$
55,954
42.3
%
Inter-segment sales
4,664
3,984
680
17.1
%
Total Sales
$
192,838
$
136,204
$
56,634
41.6
%
Adjusted EBIT (3) (6)
$
40,809
$
24,329
$
16,480
67.7
%
As a percent of total sales (3)
21.2
%
17.9
%
3.3
%
Corporate / Eliminations:
Inter-segment sales
$
(47,180)
$
(41,188)
$
(5,992)
(14.5)
%
Adjusted EBIT (7)
(1,395)
(1,650)
255
15.5
%
Consolidated:
Net sales
$
1,121,434
$
1,004,388
$
117,046
11.7
%
Net income
$
136,382
$
118,487
$
17,895
15.1
%
As a percent of total sales
12.2
%
11.8
%
0.4
%
Adjusted EBIT (8)
$
189,544
$
169,889
$
19,655
11.6
%
As a percent of sales
16.9
%
16.9
%
—
%
(1) Adjusted EBIT increased for the three months ended March 31, 2026 as compared to March 31, 2025 driven by the favorable net impact of organic sales, partially offset by unfavorable impact of product mix; Adjusted EBIT as a percent of sales decreased for the same period due to the timing of pricing actions, higher employee costs and an increase in allocated corporate costs related to strategic initiatives.
(2) Adjusted EBIT and Adjusted EBIT as a percent of sales decreased for the three months ended March 31, 2026 as compared to March 31, 2025 primarily driven by the unfavorable impact of lower volumes and an increase in allocated corporate costs related to strategic initiatives, partially offset by the benefit of acquisitions.
(3) Adjusted EBIT and Adjusted EBIT as a percent of sales increased for the three months ended March 31, 2026 as compared to March 31, 2025 primarily driven by operating leverage from higher organic sales.
(4) The three months ended March 31, 2026 and 2025 exclude Rationalization and asset impairment net charges of $573 and $2,135, respectively, as discussed in Note 6 to the consolidated financial statements.
(5) The three months ended March 31, 2026 and 2025 exclude Rationalization and asset impairment net charges of $1,772 and $1,552, respectively, as discussed in Note 6 to the consolidated financial statements.
24
Table of Contents
(6) The three months ended March 31, 2026 and 2025 exclude Rationalization and asset impairment net gains of $182 and net charges of $178, respectively, as discussed in Note 6 to the consolidated financial statements.
(7) The three months ended March 31, 2026 and 2025 exclude transaction costs of $653 and $802, respectively, as discussed in Note 4 to the consolidated financial statements.
(8) See non-GAAP Financial Measures for a reconciliation of Net income as reported and Adjusted EBIT.
Non-GAAP Financial Measures
The Company reviews Adjusted operating income, Adjusted net income, Adjusted EBIT, Adjusted effective tax rate, Adjusted diluted earnings per share, Adjusted return on invested capital (“Adjusted ROIC”), Adjusted net operating profit after taxes, Free cash flow, Cash conversion and Organic sales, all non-GAAP financial measures, in assessing and evaluating the Company’s underlying operating performance. These non-GAAP financial measures exclude the impact of special items on the Company’s reported financial results. Non-GAAP financial measures should be read in conjunction with the generally accepted accounting principles in the United States ("GAAP") financial measures, as non-GAAP measures are a supplement to, and not a replacement for, GAAP financial measures.
The following table presents the reconciliations of Operating income as reported to Adjusted operating income, Net income as reported to Adjusted net income and Adjusted EBIT, Effective tax rate as reported to Adjusted effective tax rate and Diluted earnings per share as reported to Adjusted diluted earnings per share:
Three Months Ended March 31,
2026
2025
Operating income as reported
$
186,158
$
164,918
Special items (pre-tax):
Rationalization and asset impairment net charges (1)
2,163
3,865
Transaction costs (2)
653
802
Amortization of step up in value of acquired inventories (3)
—
(140)
Adjusted operating income
$
188,974
$
169,445
As a percentage of net sales
16.9
%
16.9
%
Net income as reported
$
136,382
$
118,487
Special items:
Rationalization and asset impairment net charges (1)
2,163
3,865
Transaction costs (2)
653
802
Amortization of step up in value of acquired inventories (3)
—
(140)
Tax effect of Special items (4)
(740)
(1,158)
Adjusted net income
138,458
121,856
Interest expense, net
13,374
12,127
Income taxes as reported
36,972
34,748
Tax effect of Special items (4)
740
1,158
Adjusted EBIT
$
189,544
$
169,889
Effective tax rate as reported
21.3
%
22.7
%
Net special item tax impact
0.1
%
0.1
%
Adjusted effective tax rate
21.4
%
22.8
%
Diluted earnings per share as reported
$
2.47
$
2.10
Special items per share
0.03
0.06
Adjusted diluted earnings per share
$
2.50
$
2.16
(1) Primarily related to restructuring activities as discussed in Note 6 to the consolidated financial statements.
25
Table of Contents
(2) Transaction costs primarily relate to acquisitions and are included in Selling, general & administrative expenses .
(3) Costs relate to acquisitions and are included in Cost of goods sold.
(4) 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.
Liquidity and Capital Resources
Overview
The Company’s primary sources of liquidity are operating cash flows and revolving credit facilities. As of March 31, 2026, the Company had $298,903 of cash and cash equivalents on hand and $163,502 of outstanding borrowings under its $1,024,982 revolving credit facilities .
The Company’s capital allocation priorities include internal investment to support existing operations and organic growth, investment in acquisitions to grow the business and then returning capital to shareholders through dividends and share repurchases.
The Company’s cash flow from operations can be cyclical. In assessing liquidity, the Company reviews working capital measurements to define areas for improvement. Management anticipates the Company will be able to satisfy cash requirements for its ongoing businesses for the foreseeable future primarily with cash generated by operations, existing cash balances, borrowings under its existing credit facilities and raising debt in capital markets.
The Company continues to expand globally and periodically consider acquisitions that would involve significant investments. The Company can fund its global expansion plans with operational cash flow, but a significant acquisition may require access to capital markets, in particular, the long-term debt market, as well as the syndicated bank loan market. The Company’s financing strategy is to fund itself at the lowest after-tax cost of funding. Where possible, the Company utilizes operational cash flows and raises capital in the most efficient market, usually the United States, and then lends funds to the specific subsidiary needing or requiring funding. If additional acquisitions providing appropriate financial benefits become available, additional expenditures may be made.
Cash Flow
The following table reflects changes in key cash flow measures:
Three Months Ended March 31,
2026
2025
$ Change
Cash provided by operating activities (1)
$
102,170
$
185,693
$
(83,523)
Cash used by investing activities
(38,715)
(22,303)
(16,412)
Capital expenditures
(39,163)
(26,949)
(12,214)
Cash used by financing activities
(72,569)
(144,488)
71,919
Proceeds from (payments on) short-term borrowings, net
19,613
(904)
20,517
Purchase of shares for treasury
(56,670)
(106,694)
50,024
Cash dividends paid to shareholders
(44,071)
(42,975)
(1,096)
(Decrease) increase in Cash and cash equivalents
(9,886)
17,443
(27,329)
(1) Cash provided by operating activities decreased for the three months ended March 31, 2026, compared with the three months ended March 31, 2025 primarily due to unfavorable working capital.
As of March 31, 2026, the Company had cash of $298,903, of which $281,612 was held by international subsidiaries.
In April 2026, the Company paid a cash dividend of $0.79 per share, or $43,282, to shareholders of record on March 31, 2026.
26
Table of Contents
The Company currently anticipates capital expenditures of $110,000 to $130,000 in 2026. Anticipated capital expenditures include investments to increase capacity, improve operational effectiveness and for general maintenance. Management critically evaluates all proposed capital expenditures and expects each project to increase efficiency, reduce costs, support sales growth or improve the overall safety and environmental conditions of the Company’s facilities.
Revolving Credit Agreements
On June 20, 2024, the Company entered into a $1 billion revolving credit facility. The revolving credit facility matures on June 20, 2029. Additionally, the Company has other lines of credit with total availability of $24,982. As of March 31, 2026, the Company had total availability of $861,480 under its revolving credit facilities. Refer to Note 10 to the consolidated financial statements for further information on our revolving lines of credit.
Working Capital Ratios
March 31, 2026
December 31, 2025
March 31, 2025
Average operating working capital to Net sales (1) (2)
18.6
%
17.9
%
17.8
%
Days sales in Inventories (2)
120.8
116.4
115.7
Days sales in Accounts receivable
51.2
49.4
50.5
Average days in Trade accounts payable
63.0
53.4
58.6
(1) 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.
(2) Due to the strategic increase of inventory to serve customers, the Company had higher inventories relative to expected Net sales resulting in higher Days sales in Inventories and Average operating working capital to Net sales.
Stock Repurchase Program
On February 12, 2020, the Company’s Board authorized a share repurchase program for up to 10 million shares of the Company’s common stock. As of March 31, 2026, there were 4.9 million shares available under the authorization. The Company is not obligated to make any repurchases.
Rationalization and Asset Impairments
Refer to Note 6 to the consolidated financial statements for a discussion of the Company’s rationalization plans. The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital.
Acquisitions
Refer to Note 4 to the consolidated financial statements for a discussion of the Company’s recent acquisitions.
Return on Invested Capital
The Company reviews ROIC in assessing and evaluating the Company’s underlying operating performance. As discussed in the Non-GAAP Financial Measures section above, Adjusted ROIC is a non-GAAP financial measure that the Company believes is a meaningful metric to investors in evaluating the Company’s financial performance. The calculation may be different than the method used by other companies to calculate ROIC. Adjusted ROIC is defined as rolling 12 months of Adjusted net income excluding tax-effected interest income and expense divided by invested capital. Invested capital is defined as total debt, which includes Short-term debt and Long-term debt, less current portions, plus Total equity.
27
Table of Contents
The following table presents the reconciliations of ROIC and Adjusted ROIC to net income:
\
Twelve Months Ended March 31,
2026
2025
Net income as reported
$
538,428
$
461,180
Plus: Interest expense (after-tax)
44,044
41,450
Less: Interest income (after-tax)
4,459
6,868
Net operating profit after taxes
$
578,013
$
495,762
Special items:
Rationalization and asset impairment net charges
16,497
55,120
Transaction costs
2,590
6,085
Pension settlement net charges
719
3,792
Amortization of step up in value of acquired inventories
4,104
4,883
Loss on asset disposal
—
4,950
Tax effect of Special items (1)
5,595
(11,545)
Adjusted net operating profit after taxes
$
607,518
$
559,047
Invested Capital
March 31, 2026
March 31, 2025
Short-term debt
$
163,502
$
109,620
Long-term debt, less current portion
1,150,138
1,150,473
Total debt
1,313,640
1,260,093
Total equity
1,511,260
1,340,170
Invested capital
$
2,824,900
$
2,600,263
Return on invested capital as reported
20.5
%
19.1
%
Adjusted return on invested capital
21.5
%
21.5
%
(1) I ncludes 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.
New Accounting Pronouncements
Refer to Note 1 to the consolidated financial statements for a discussion of new accounting pronouncements.
Forward-looking Statements
The Company’s expectations and beliefs concerning the future contained in this report 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 systems; 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; possible 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 geopolitical conflicts, political unrest, acts of terror, natural disasters and pandemics on the Company or its customers, suppliers and the economy in
28
Table of Contents
general. For additional discussion, see “Item 1A. Risk Factors” presented herein, as well as in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in the Company’s exposure to market risk since December 31, 2025. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The Company carried out an evaluation under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the Company’s management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2026.
Changes in Internal Control Over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting that occurred during the quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is subject, from time to time, to a variety of civil and administrative proceedings arising out of its normal operations, including, without limitation, product liability claims, regulatory claims and health, safety and environmental claims. Among such proceedings are the cases described below.
As of March 31, 2026, the Company was a co-defendant in cases alleging asbestos induced illness involving claims by approximately 1,052 plaintiffs, which is a net decrease of 74 claims from those previously reported. In each instance, the Company is one of a large number of defendants. The asbestos claimants seek compensatory and punitive damages, in most cases for unspecified sums. Since January 1, 1995, the Company has been a co-defendant in asbestos cases that have been resolved as follows: 57,346 of those claims were dismissed, 23 were tried to defense verdicts, 7 were tried to plaintiff verdicts (which were reversed or resolved after appeal), 2 were resolved by agreement for an immaterial amount and 1,023 were decided in favor of the Company following summary judgment motions.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this Quarterly Report on Form 10-Q, the reader should carefully consider the factors discussed in “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
29
Table of Contents
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEED S
Issuer purchases of its common shares during the first quarter of 2026 were as follows:
Total Number of
Shares
Maximum Number
Repurchased
of Shares that May
Total Number of
as Part of Publicly
Yet be Purchased
Shares
Average Price
Announced Plans or
Under the Plans or
Period
Repurchased
Paid Per Share
Programs
Programs (2)
January 1 - 31, 2026
65,803
(1)
$
253.98
64,535
5,032,096
February 1 - 28, 2026
68,316
(1)
286.97
54,526
4,977,570
March 1 - 31, 2026
76,254
(1)
266.91
68,586
4,908,984
Total
210,373
111
$
269.38
187,647
(1) The above share repurchases include the surrender of the Company’s common shares in connection with the vesting of restricted awards.
(2) On February 12, 2020, the Company’s Board of Directors authorized a new share repurchase program for up to an additional 10 million shares of the Company’s common stock. Total shares purchased through the share repurchase programs were 5.1 million shares at a total cost of $968.7 million for a weighted average cost of $189.44 per share through March 31, 2026.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the quarter ended March 31, 2026, none of the Company’s directors or officers adopted , modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Item 408(a) of Regulation S-K.
30
Table of Contents
ITEM 6. EXHIBITS
(a) Exhibits
10.1*
Form of Stock Option Agreement for Executive Officers for awards granted in 2026 (filed herewith).
10.2*
Form of Restricted Stock Unit Agreement for Executive Officers for awards granted in 2026 (filed herewith).
10.3*
Form of Performance Share Award Agreement for Executive Officers for awards granted in 2026 (filed herewith).
31.1
Certification of the Chairman and Chief Executive Officer (Principal Executive Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 (filed herewith).
31.2
Certification of the Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 (filed herewith).
32.1
Certification of the Chairman and Chief Executive Officer (Principal Executive Officer) and Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
104
Cover page Interactive Data File (formatted as Inline XBRL and contained in the Exhibit 101 attachments)
Inline XBRL Taxonomy Extension Label Linkbase Document
* Reflects management contract or other compensatory arrangement required to be filed as an exhibit pursuant to Item 15(b) of this report
31
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
LINCOLN ELECTRIC HOLDINGS, INC.
/s/ Gabriel Bruno
Gabriel Bruno
Executive Vice President, Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
April 30, 2026
32