# LINCOLN ELECTRIC HOLDINGS INC (LECO)

Informational only - not investment advice.

CIK: 0000059527
SIC: 3540 Metalworkg Machinery & Equipment
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3540 Metalworkg Machinery & Equipment](/industry/3540/)
Latest 10-K filed: 2026-02-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=59527
Filing source: https://www.sec.gov/Archives/edgar/data/59527/000005952726000006/leco-20251231x10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0000059527-26-000006 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000059527.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 4,233,003,000 USD | 2025 | verified |
| Net income | 520,533,000 USD | 2025 | verified |
| Assets | 3,777,577,000 USD | 2025 | verified |
| Free cash flow | 534,199,000 USD | 2025 | computed |
| Net margin | 12.30% | 2025 | computed |
| Operating margin | 16.96% | 2025 | computed |
| Revenue YoY | +5.60% | 2025 | computed |
| ROE | 35.42% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | LECO | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 12.3% | 7.7% | 70 | 110 |
| Operating margin | 17.0% | 13.1% | 71 | 104 |
| Revenue growth | 5.6% | 5.8% | 46 | 111 |
| FCF margin | 12.6% | 9.6% | 59 | 103 |
| ROE | 35.4% | 11.7% | 89 | 108 |
| ROA | 13.8% | 5.6% | 91 | 111 |
| Liabilities / equity | 1.57 | 1.10 | 64 | 108 |
| Current ratio | 1.82 | 2.02 | 44 | 110 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 4233003000 | USD | 2025 | 2026-02-25 |
| Net income | 520533000 | USD | 2025 | 2026-02-25 |
| Assets | 3777577000 | USD | 2025 | 2026-02-25 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000059527.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2009 | 2010 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  |  |  | 3,003,272,000 | 2,655,400,000 | 3,234,180,000 | 3,761,211,000 | 4,191,636,000 | 4,008,670,000 | 4,233,003,000 |
| Net income | 48,576,000 | 130,244,000 |  |  | 287,066,000 | 293,109,000 | 206,115,000 | 276,580,000 | 472,224,000 | 545,248,000 | 466,108,000 | 520,533,000 |
| Operating income |  |  | 283,614,000 | 376,942,000 | 375,539,000 | 370,910,000 | 282,071,000 | 461,669,000 | 612,336,000 | 717,849,000 | 636,462,000 | 718,059,000 |
| Gross profit |  |  | 786,559,000 | 875,107,000 | 1,028,521,000 | 1,007,587,000 | 871,341,000 | 1,068,605,000 | 1,280,760,000 | 1,465,445,000 | 1,472,912,000 | 1,534,252,000 |
| Diluted EPS |  |  | 2.91 | 3.71 | 4.37 | 4.68 | 3.42 | 4.60 | 8.04 | 9.37 | 8.15 | 9.32 |
| Operating cash flow |  | 156,978,000 |  | 334,845,000 | 329,152,000 | 403,185,000 | 351,362,000 | 365,063,000 | 383,386,000 | 667,542,000 | 598,977,000 | 661,173,000 |
| Capital expenditures |  |  | 49,877,000 | 61,656,000 | 71,246,000 | 69,615,000 | 59,201,000 | 62,531,000 | 71,883,000 | 90,987,000 | 116,603,000 | 126,974,000 |
| Dividends paid |  |  | 87,330,000 | 92,452,000 | 102,058,000 | 117,920,000 | 118,118,000 | 121,851,000 | 130,724,000 | 148,010,000 | 162,143,000 | 168,240,000 |
| Share buybacks |  |  | 342,003,000 | 43,164,000 | 201,650,000 | 292,693,000 | 113,455,000 | 164,526,000 | 181,293,000 | 198,765,000 | 263,751,000 | 338,308,000 |
| Assets |  |  | 1,943,437,000 | 2,406,547,000 | 2,349,825,000 | 2,371,213,000 | 2,314,453,000 | 2,592,307,000 | 3,180,546,000 | 3,377,297,000 | 3,520,142,000 | 3,777,577,000 |
| Liabilities |  |  | 1,231,231,000 | 1,474,094,000 | 1,462,233,000 | 1,552,136,000 | 1,524,203,000 | 1,728,398,000 | 2,146,505,000 | 2,068,445,000 | 2,192,709,000 | 2,307,783,000 |
| Stockholders' equity |  |  | 711,477,000 | 931,637,000 | 886,942,000 | 818,172,000 | 790,250,000 | 863,909,000 | 1,034,041,000 | 1,308,852,000 | 1,327,433,000 | 1,469,794,000 |
| Cash and cash equivalents |  |  | 379,179,000 | 326,701,000 | 358,849,000 | 199,563,000 | 257,279,000 | 192,958,000 | 197,150,000 | 393,787,000 | 377,262,000 | 308,789,000 |
| Free cash flow |  |  |  | 273,189,000 | 257,906,000 | 333,570,000 | 292,161,000 | 302,532,000 | 311,503,000 | 576,555,000 | 482,374,000 | 534,199,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2009 | 2010 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  |  |  | 9.76% | 7.76% | 8.55% | 12.56% | 13.01% | 11.63% | 12.30% |
| Operating margin |  |  |  |  |  | 12.35% | 10.62% | 14.27% | 16.28% | 17.13% | 15.88% | 16.96% |
| Return on equity |  |  |  |  | 32.37% | 35.82% | 26.08% | 32.01% | 45.67% | 41.66% | 35.11% | 35.42% |
| Return on assets |  |  |  |  | 12.22% | 12.36% | 8.91% | 10.67% | 14.85% | 16.14% | 13.24% | 13.78% |
| Liabilities / equity |  |  | 1.73 | 1.58 | 1.65 | 1.90 | 1.93 | 2.00 | 2.08 | 1.58 | 1.65 | 1.57 |
| Current ratio |  |  | 2.69 | 2.60 | 2.30 | 1.91 | 2.02 | 1.71 | 1.83 | 2.24 | 1.87 | 1.82 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/LECO/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000059527.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.87 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 2.09 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 2.36 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 137,331,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 1,033,214,000 |  | 2.22 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,058,514,000 | 156,643,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 981,197,000 | 123,415,000 | 2.14 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 1,021,683,000 | 101,708,000 | 1.77 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 983,759,000 | 100,756,000 | 1.77 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,022,031,000 | 140,229,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 1,004,388,000 | 118,487,000 | 2.10 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,088,673,000 | 143,396,000 | 2.56 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,061,227,000 | 122,628,000 | 2.21 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,078,715,000 | 136,022,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 1,121,434,000 | 136,382,000 | 2.47 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,219,663,000 | 158,519,000 | 2.88 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from LECO's latest 10-K: [/company/LECO/business/](/company/LECO/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from LECO's latest 10-K: [/company/LECO/risk-factors/](/company/LECO/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/59527/000005952726000022/leco-20260630x10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-30
Report date: 2026-06-30

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.

24

Table of Contents

Results of Operations

The following tables show the Company’s results of operations:

​

[[GREPCENT_TABLE]]
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[[/GREPCENT_TABLE]]

​

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","Six Months Ended June 30,"],["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","Favorable (Unfavorable)"],["\u200b","2026","\u200b","\u200b","2025","\u200b","\u200b","2026 vs. 2025","\u200b"],["\u200b","Amount","\u200b \u200b \u200b","% of Sales","\u200b \u200b \u200b","\u200b","Amount","\u200b \u200b \u200b","% of Sales","\u200b \u200b \u200b","\u200b","$","\u200b \u200b \u200b","%"],["Net sales","$","2,341,097","\u200b","\u200b","\u200b","\u200b","$","2,093,061","","\u200b","\u200b","\u200b","$","248,036","","11.9","%"],["Cost of goods sold","","1,492,969","\u200b","\u200b","\u200b","\u200b","","1,322,066","","\u200b","\u200b","\u200b","\u200b","(170,903)","","(12.9)","%"],["Gross profit","","848,128","\u200b","36.2","%","\u200b","","770,995","","36.8","%","\u200b","","77,133","","10.0","%"],["Selling, general & administrative expenses","","435,682","\u200b","18.6","%","\u200b","","407,526","","19.5","%","\u200b","","(28,156)","","(6.9)","%"],["Rationalization and asset impairment net charges","","5,644","\u200b","0.2","%","\u200b","","6,407","","0.3","%","\u200b","\u200b","763","","11.9","%"],["Operating income","","406,802","\u200b","17.4","%","\u200b","","357,062","","17.1","%","\u200b","","49,740","","13.9","%"],["Interest expense, net","","25,895","\u200b","\u200b","\u200b","\u200b","","24,746","","\u200b","\u200b","\u200b","","(1,149)","","(4.6)","%"],["Other income","","329","\u200b","\u200b","\u200b","\u200b","","4,478","","\u200b","\u200b","\u200b","\u200b","(4,149)","","(92.7)","%"],["Income before income taxes","","381,236","\u200b","16.3","%","\u200b","","336,794","","16.1","%","\u200b","","44,442","","13.2","%"],["Income taxes","","86,335","\u200b","\u200b","\u200b","\u200b","","74,911","","\u200b","\u200b","\u200b","","(11,424)","","(15.3)","%"],["Effective tax rate","","22.6","%","\u200b","\u200b","\u200b","","22.2","%","\u200b","\u200b","\u200b","\u200b","(0.4)","%","\u200b","\u200b"],["Net income","$","294,901","\u200b","12.6","%","\u200b","$","261,883","","12.5","%","\u200b","$","33,018","","12.6","%"],["Diluted earnings per share","$","5.34","\u200b","\u200b","\u200b","\u200b","$","4.66","","\u200b","\u200b","\u200b","$","0.68","","14.6","%"]]
[[/GREPCENT_TABLE]]

25

Table of Contents

Net Sales:

The following tables summarize the impact of volume, acquisitions, price and foreign currency exchange rates on Net sales on a consolidated basis:

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Three Months Ended June 30,","\u200b","\u200b \u200b \u200b","\u200b","\u200b \u200b \u200b","Change in Net Sales due to:","\u200b","\u200b \u200b \u200b","\u200b"],["\u200b","\u200b","Net Sales","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","Foreign","\u200b","Net Sales","\u200b"],["\u200b","\u200b \u200b \u200b","2025","\u200b \u200b \u200b","Volume","\u200b \u200b \u200b","Price","\u200b \u200b \u200b","Acquisitions","\u200b \u200b \u200b","Exchange","\u200b \u200b \u200b","2026"],["Lincoln Electric Holdings, Inc.","\u200b","$","1,088,673","\u200b","$","25,790","\u200b","$","83,911","\u200b","$","16,193","","$","5,096","\u200b","$","1,219,663","\u200b"],["% Change","\u200b","\u200b","\u200b","\u200b","","\u200b","\u200b","","\u200b","\u200b","","\u200b","","\u200b","\u200b","\u200b","","\u200b","\u200b"],["Lincoln Electric Holdings, Inc.","\u200b","\u200b","\u200b","\u200b","","2.4","%","","7.7","%","","1.5","%","\u200b","0.4","%","\u200b","12.0","%"]]
[[/GREPCENT_TABLE]]

​

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Six Months Ended June 30,","\u200b","\u200b \u200b \u200b","\u200b","\u200b \u200b \u200b","Change in Net Sales due to:","\u200b","\u200b \u200b \u200b","\u200b"],["\u200b","\u200b","Net Sales","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","Foreign","\u200b","Net Sales","\u200b"],["\u200b","\u200b \u200b \u200b","2025","\u200b \u200b \u200b","Volume","\u200b \u200b \u200b","Price","\u200b \u200b \u200b","Acquisitions","\u200b \u200b \u200b","Exchange","\u200b \u200b \u200b","2026"],["Lincoln Electric Holdings, Inc.","\u200b","$","2,093,061","\u200b","$","149","\u200b","$","188,469","\u200b","$","31,987","","$","27,431","\u200b","$","2,341,097","\u200b"],["% Change","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Lincoln Electric Holdings, Inc.","\u200b","\u200b","\u200b","\u200b","","\u2014","\u200b","","9.0","%","","1.5","%","\u200b","1.4","%","\u200b","11.9","%"]]
[[/GREPCENT_TABLE]]

​

Net sales increased for the three and six months ended June 30, 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 June 30, 2026 is driven by an increase in pricing, primarily due to higher input costs, as well as higher volumes. The increase in organic sales for the six months ended June 30, 2026 is driven by an increase in pricing, primarily due to higher input costs.

Gross Profit:

Gross profit as a percentage of sales decreased 0.5% and 0.6% for the three and six months ended June 30, 2026, respectively, as compared to the same 2025 periods, driven by unfavorable impacts from product mix and higher input costs. This includes last-in, first-out (“LIFO”) charges of $4,186 and $5,024 for the three and six months ended June 30, 2026 and LIFO charges of $8,523 and $10,284 for the three and six months ended June 30, 2025, respectively, which are primarily due to rising input costs.

Selling, General & Administrative Expenses:

Selling, general & administrative expenses increased in the three and six months ended June 30, 2026 as compared to the same 2025 periods, primarily due to increases in spend related to the Company’s RISE strategic initiatives, acquisitions and the unfavorable impact of foreign currency translation. Selling, general & administrative expenses as a percentage of sales decreased primarily due to higher organic sales.

Operating Income:

Operating income as a percentage of sales was 18.1% for the three months ended June 30, 2026 as compared to 17.6% in the prior year period. Excluding special items, Operating income as a percentage of sales was 18.4% for the three months ended June 30, 2026 as compared with 17.9% in the prior year period. Operating income as a percentage of sales was 17.4% for the six months ended June 30, 2026 as compared to 17.1% in the prior year period. Excluding special items, Operating income as a percentage of sales was 17.6% in the six months ended June 30, 2026 as co

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/59527/000005952726000006/leco-20251231x10k.htm
Complete FY 2025 MD&A: /company/LECO/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-25
Report date: 2025-12-31

ITEM 7. 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 consolidated financial statements and other financial information included elsewhere in this Annual Report on Form 10-K. This Annual Report on Form 10-K contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those indicated in the forward-looking statements. See "Item 1A. Risk Factors" for more information regarding forward-looking statements.

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.

18

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​

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 invests in the research and development of its solutions in order to continue its market leading product offering and improve the quality, productivity and sustainability of its solutions. In addition, the Company actively protects its innovations with patents and trade secrets globally. The Company believes its significant investment in research and development, its highly trained technical sales force and its extensive distributor network provide a competitive advantage in the marketplace.

The Company’s products are sold globally through industrial distributors, direct to end users, retailers and wholesalers.

The Company’s major end-user markets include:

[[GREPCENT_TABLE]]
[["","\u25cf","general fabrication,"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","energy (oil and gas, power generation and process industries),"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","heavy industries (heavy fabrication, ship building and maintenance and repair),"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","automotive and transportation, and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","construction and infrastructure."]]
[[/GREPCENT_TABLE]]

The Company has, through wholly owned subsidiaries, manufacturing and automation facilities located in the United States, Australia, Austria, Brazil, Canada, China, Colombia, Denmark, France, Germany, India, Italy, Mexico, Poland, Portugal, Romania, South Korea, Spain, Turkey and the United Kingdom.

The principal raw materials essential to the Company’s business are steel, electronic components, engines, brass, copper, silver, aluminum alloys, robotic components and various chemicals, all of which are normally available for purchase in the open market.

In 2025, the U.S. government announced a series of tariffs on imported goods into the U.S., which prompted retaliatory actions from some of its trading partners. The Company has taken actions to address the impact of these trade policies and while the Company cannot predict the ultimate impact on its business, the Company will continue to monitor evolving trade negotiations to determine if additional measures are warranted.

The Company’s facilities are subject to environmental regulations. To date, compliance with these environmental regulations has not had a material adverse effect on the Company’s earnings. The Company is ISO 14001 certified at most significant manufacturing facilities in North America and Europe and is progressing towards certification at its remaining facilities worldwide. In addition, the Company is ISO 9001 certified at 49 facilities worldwide.

The Company ensures compliance and the continuous improvement of the environmental performance of its products and operations through its global EHS&Q systems. The Company’s systems are guided by Corporate EHS&Q Policy, global directives and corporate standards that establish consistent guidelines for the management, measurement and reporting of environmental, health and safety activities, as well as quality across the Company’s global platform. The Company’s products support our customers' sustainable operations through enhanced worker safety, reduced emissions, improved energy efficiency, reduced waste and regulatory compliance.

19

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​

Key Indicators

Key economic measures relevant to the Company include industrial production trends, steel consumption, purchasing manager indices, capacity utilization within durable goods manufacturers and consumer confidence indicators. Key industries which provide a relative indication of demand drivers to the Company include steel, farm machinery and equipment, construction and transportation, fabricated metals, electrical equipment, ship and boat building, defense, truck manufacturing, energy and railroad equipment. Although these measures provide key information on trends relevant to the Company, the Company does not have available a more direct correlation of leading indicators which can provide a forward-looking view of demand levels in the markets which ultimately use the Company’s welding products.

Key financial measures utilized by the Company’s executive management and operating units in order to evaluate the results of its business and in understanding key variables impacting the current and future results of the Company include: sales; gross profit; selling, general and administrative expenses; operating income; earnings before interest and taxes; net income; adjusted operating income; adjusted earnings before interest and income taxes; adjusted net income; adjusted diluted earnings per share; operating cash flows; and capital expenditures, as well as applicable ratios such as return on invested capital, adjusted return on invested capital and average operating working capital to sales. These measures are reviewed at monthly, quarterly and annual intervals and are compared with historical periods, as well as objectives established by the Board of the Company.

​

The discussion that follows includes a comparison of our results of operations, liquidity and capital resources for fiscal years ended December 31, 2025 and 2024. For a comparison of the Company’s results of operations, liquidity and capital resources for the fiscal years ended December 31, 2024 and 2023, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 25, 2025.

Results of Operations

The following table shows the Company’s results of operations:

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","Year Ended December 31,"],["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","Favorable (Unfavorable)"],["\u200b","2025","\u200b","2024","\u200b","2025 vs. 2024","\u200b"],["\u200b","Amount","\u200b \u200b \u200b","% of Sales","\u200b \u200b \u200b","Amount","\u200b \u200b \u200b","% of Sales","\u200b \u200b \u200b","$","\u200b \u200b \u200b","%"],["Net sales","$","4,233,003","\u200b","\u200b","\u200b","\u200b","$","4,008,670","","\u200b","\u200b","$","224,333","","5.6","%"],["Cost of goods sold","","2,698,751","\u200b","","\u200b","\u200b","","2,535,758","","\u200b","\u200b","\u200b","(162,993)","","(6.4)","%"],["Gross profit","","1,534,252","\u200b","","36.2","%","","1,472,912","","36.7","%","","61,340","","4.2","%"],["Selling, general & administrative expenses","","797,994","\u200b","","18.9","%","","780,590","","19.5","%","","(17,404)","","(2.2)","%"],["Rationalization and asset impairment net charges","","18,199","\u200b","","0.4","%","","55,860","","1.4","%","\u200b","37,661","","67.4","%"],["Operating income","","718,059","\u200b","","17.0","%","","636,462","","15.9","%","","81,597","","12.8","%"],["Interest expense, net","","51,561","\u200b","","\u200b","\u200b","","42,786","","\u200b","\u200b","","(8,775)","","(20.5)","%"],["Other income","","8,952","\u200b","","\u200b","\u200b","","473","","\u200b","\u200b","\u200b","8,479","","1,792.6","%"],["Income before income taxes","","675,450","\u200b","","16.0","%","","594,149","","14.8","%","","81,301","","13.7","%"],["Income taxes","","154,917","\u200b","","\u200b","\u200b","","128,041","","\u200b","\u200b","","(26,876)","","(21.0)","%"],["Effective tax rate","","22.9","%","","\u200b","\u200b","","21.6","%","\u200b","\u200b","\u200b","(1.3)","%","\u200b","\u200b"],["Net income","$","520,533","\u200b","","12.3","%","$","466,108","","11.6","%","$","54,425","","11.7","%"],["Diluted earnings per share","$","9.32","\u200b","\u200b","\u200b","\u200b","$","8.15","","\u200b","\u200b","$","1.17","","14.4","%"]]
[[/GREPCENT_TABLE]]

​

20

Table of Contents

​

Net Sales:

The following table summarizes the impacts of volume, acquisitions, price and foreign currency exchange rates on Net sales for the year ended December 31, 2025 on a consolidated basis:

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","\u200b \u200b \u200b","\u200b","\u200b \u200b \u200b","Change in Net Sales due to:","\u200b","\u200b \u200b \u200b","\u200b"],["\u200b","\u200b","Net Sales","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","Foreign","\u200b","Net Sales","\u200b"],["\u200b","\u200b \u200b \u200b","2024","\u200b \u200b \u200b","Volume","\u200b \u200b \u200b","Price","\u200b \u200b \u200b","Acquisitions","\u200b \u200b \u200b","Exchange","\u200b \u200b \u200b","2025"],["Lincoln Electric Holdings, Inc.","\u200b","$","4,008,670","\u200b","$","(147,682)","\u200b","$","246,540","\u200b","$","106,478","","$","18,997","\u200b","$","4,233,003","\u200b"],["% Change","\u200b","\u200b","\u200b","\u200b","","\u200b","\u200b","","\u200b","\u200b","","\u200b","","\u200b","\u200b","\u200b","","\u200b","\u200b"],["Lincoln Electric Holdings, Inc.","\u200b","\u200b","\u200b","\u200b","","(3.7)","%","","6.2","%","","2.7","%","\u200b","0.4","%","\u200b","5.6","%"]]
[[/GREPCENT_TABLE]]

​

Net sales increased for the year ended December 31, 2025 primarily due to an increase in organic sales and a benefit from acquisitions. The increase in organic sales 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 0.5% for 2025 as compared to 2024 driven by lower volumes partially offset by effective cost management. The year ended December 31, 2025 includes a last-in, first-out (“LIFO”) charge of $17,956, which is primarily due to rising input costs. This compares with a LIFO benefit of $9,313 in 2024.

Selling, General & Administrative ("SG&A") Expenses:

SG&A expenses increased in 2025 as compared to 2024 prim

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/LECO/mda/fy2025/
All MD&A years: /company/LECO/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/LECO/mda/fy2024/): filed 2025-02-26; accession 0000059527-25-000006 (https://www.sec.gov/Archives/edgar/data/59527/000005952725000006/leco-20241231x10k.htm)
- [FY 2023 MD&A](/company/LECO/mda/fy2023/): filed 2024-02-27; accession 0000059527-24-000008 (https://www.sec.gov/Archives/edgar/data/59527/000005952724000008/leco-20231231x10k.htm)
- [FY 2022 MD&A](/company/LECO/mda/fy2022/): filed 2023-02-21; accession 0000059527-23-000004 (https://www.sec.gov/Archives/edgar/data/59527/000005952723000004/leco-20221231x10k.htm)
- [FY 2021 MD&A](/company/LECO/mda/fy2021/): filed 2022-02-18; accession 0000059527-22-000006 (https://www.sec.gov/Archives/edgar/data/59527/000005952722000006/leco-20211231x10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3540 Metalworkg Machinery & Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/LECO.md · JSON record: /company/LECO.json · verified financials: /company/LECO/financials.json / /company/LECO/financials.csv · machine TOC for the whole site: /llms.txt