Lincoln Electric Reports Fourth Quarter and Full Year 2025 Results

CLEVELAND--( BUSINESS WIRE)-- Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported fourth quarter 2025 net income of $136.0 million, or diluted earnings per share (EPS) of $2.45, which includes special item after-tax net charges of $10.6 million, or $0.20 EPS. This compares with prior year period net income of $140.2 million, or $2.47 EPS, which included special item after-tax net charges of $5.8 million, or $0.10 EPS. Excluding special items, fourth quarter 2025 adjusted net income was $146.6 million, or $2.65 adjusted EPS. This compares with adjusted net income of $146.0 million, or $2.57 adjusted EPS, in the prior year period.

“We finished the year with strong results and record sales, adjusted EPS and cash returns to shareholders in 2025,” said Steven B. Hedlund, Chairman and Chief Executive Officer

Fourth quarter 2025 sales increased 5.5% to $1,078.7 million reflecting a 2.5% increase in organic sales, a 1.1% benefit from acquisitions and a 1.9% favorable foreign exchange. Operating income for the fourth quarter 2025 was $184.3 million, or 17.1% of sales. This compares with operating income of $177.0 million, or 17.3% of sales, in the prior year period. Excluding special items, adjusted operating income was $193.8 million, or 18.0% of sales, as compared with $185.6 million, or 18.2% of sales, in the prior year period.

“We finished the year with strong results and record sales, adjusted EPS and cash returns to shareholders in 2025,” said Steven B. Hedlund, Chairman and Chief Executive Officer. “We are effectively navigating a dynamic operating environment by capitalizing on growth opportunities, mitigating costs, and reshaping the business to extend our leadership position,” Hedlund commented. “We are looking ahead to driving growth, higher profitability and returns as we execute on our new RISE strategy and achieve our 2030 targets.”

Twelve Months 2025 Summary

Net income for the twelve months ended December 31, 2025 was $520.5 million, or $9.32 EPS, which includes special item after-tax net charges of $30.8 million, or $0.55 EPS. This compares with prior year period net income of $466.1 million, or $8.15 EPS, which included special item after-tax net charges of $65.2 million, or $1.14 EPS. Excluding special items, adjusted net income for the twelve months ended December 31, 2025 was $551.3 million, or $9.87 EPS. This compares with adjusted net income of $531.3 million, or $9.29 adjusted EPS, in the prior year period.

Sales increased 5.6% to $4,233.0 million in the twelve months ended December 31, 2025 primarily reflecting a 2.5% increase in organic sales and a 2.7% benefit from acquisitions. Operating income for the twelve months ended December 31, 2025 was $718.1 million, or 17.0% of sales. This compares with operating income of $636.5 million, or 15.9% of sales, in the prior year period. Excluding special items, adjusted operating income was $743.0 million, or 17.6% of sales, as compared with $704.4 million, or 17.6% of sales, in the prior year period.

Webcast Information

A conference call to discuss fourth quarter and full year 2025 financial results as well as new strategic 2030 targets will be webcast live today, February 12, 2026, at 10:00 a.m., Eastern Time. Those interested in participating via webcast in listen-only mode can access the event here or on the Company's Investor Relations home page at https://ir.lincolnelectric.com. For participants who would like to participate via telephone, please dial (888) 440-4368 (domestic) or (646) 960-0856 (international) and use confirmation code 6709091. A replay of the earnings call will be available via webcast on the Company's website.

About Lincoln Electric

Lincoln Electric is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. Lincoln Electric’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 leverages proprietary technologies and expertise in materials science, power electronics, automation and intelligent software to help customers build better and achieve resilience in their operations. Headquartered in Cleveland, Ohio, Lincoln Electric is the essential ‘Linc’ that keeps the economy running. The Company operates 71 manufacturing and automation facilities across 20 countries and serves customers in over 160 countries. For more information about Lincoln Electric and its products and services, visit the Company’s website at https://www.lincolnelectric.com.

Non-GAAP Information

Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate, adjusted diluted earnings per share (“adjusted EPS”), Organic sales, Free cash flow, Cash conversion, adjusted net operating profit after taxes and adjusted return on invested capital (“adjusted ROIC”) are non-GAAP financial measures. Management uses non-GAAP measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of the Company's core business. Management believes that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against other companies in its industry more meaningfully. Furthermore, management believes that non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently.

Forward-Looking Statements

The Company’s expectations and beliefs concerning the future contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current expectations and involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “forecast,” “guidance” or words of similar meaning. Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company’s operating results. The factors include, but are not limited to: general economic, financial and market conditions; the effectiveness of commercial and operating initiatives; the effectiveness of information systems and cybersecurity programs; presence of artificial intelligence technologies; completion of planned divestitures; interest rates; disruptions, uncertainty or volatility in the credit markets that may limit our access to capital; currency exchange rates and devaluations; adverse outcome of pending or potential litigation; actual costs of the Company’s rationalization plans; the Company’s ability to complete acquisitions, including the Company’s ability to successfully integrate acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity; the effects of changes in tax law, including any changes from the new legislation implemented in the One Big Beautiful Bill Act; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, the ongoing geopolitical conflicts, political unrest, acts of terror, natural disasters and pandemics on the Company or its customers, suppliers and the economy in general. For additional discussion, see “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and on Form 10-Q for the quarter ended March 31, 2025.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Consolidated Statements of Income

Fav (Unfav) to

Three Months Ended December 31,

Prior Year

2025

% of Sales

2024

% of Sales

Net sales

1,078,715

100.0

1,022,031

100.0

56,684

5.5

Cost of goods sold

704,769

65.3

653,409

63.9

(51,360

)

(7.9

)

Gross profit

373,946

34.7

368,622

36.1

5,324

1.4

Selling, general & administrative expenses

183,645

17.0

187,067

18.3

3,422

1.8

Rationalization and asset impairment net charges

5,961

0.6

4,538

0.4

(1,423

)

(31.4

)

Operating income

184,340

17.1

177,017

17.3

7,323

4.1

Interest expense, net

13,167

1.2

11,372

1.1

(1,795

)

(15.8

)

Other income

1,488

0.1

1,408

0.1

5.7

Income before income taxes

172,661

16.0

167,053

16.3

5,608

3.4

Income taxes

36,639

3.4

26,824

2.6

(9,815

)

(36.6

)

Effective tax rate

21.2

16.1

(5.1

)

Net income

136,022

12.6

140,229

13.7

(4,207

)

(3.0

)

Basic earnings per share

2.48

2.49

(0.01

)

(0.4

)

Diluted earnings per share

2.45

2.47

(0.02

)

(0.8

)

Weighted average shares (basic)

54,941

56,309

Weighted average shares (diluted)

55,412

56,818

Fav (Unfav) to

Year Ended December 31,

Prior Year

2025

% of Sales

2024

% of Sales

Net sales

4,233,003

100.0

4,008,670

100.0

224,333

5.6

Cost of goods sold

2,698,751

63.8

2,535,758

63.3

(162,993

)

(6.4

)

Gross profit

1,534,252

36.2

1,472,912

36.7

61,340

4.2

Selling, general & administrative expenses

797,994

18.9

780,590

19.5

(17,404

)

(2.2

)

Rationalization and asset impairment net charges

18,199

0.4

55,860

1.4

37,661

67.4

Operating income

718,059

17.0

636,462

15.9

81,597

12.8

Interest expense, net

51,561

1.2

42,786

1.1

(8,775

)

(20.5

)

Other income

8,952

0.2

473

—

8,479

1,792.6

Income before income taxes

675,450

16.0

594,149

14.8

81,301

13.7

Income taxes

154,917

3.7

128,041

3.2

(26,876

)

(21.0

)

Effective tax rate

22.9

21.6

(1.3

)

Net income

520,533

12.3

466,108

11.6

54,425

11.7

Basic earnings per share

9.39

8.23

1.16

14.1

Diluted earnings per share

9.32

8.15

1.17

14.4

Weighted average shares (basic)

55,410

56,639

Weighted average shares (diluted)

55,875

57,194

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands)

(Unaudited)

Balance Sheet Highlights

Selected Consolidated Balance Sheet Data

December 31, 2025

December 31, 2024

Cash and cash equivalents

308,789

377,262

Accounts receivable, net

538,791

481,979

Inventories

633,364

544,037

Total current assets

1,739,512

1,645,281

Property, plant and equipment, net

702,762

619,181

Total assets

3,777,577

3,520,142

Trade accounts payable

364,934

296,590

Total current liabilities (1)

956,691

878,802

Long-term debt, less current portion

1,150,228

1,150,551

Total equity

1,469,794

1,327,433

Operating Working Capital

December 31, 2025

December 31, 2024

Average operating working capital to Net sales (2)

17.9

16.9

Invested Capital

December 31, 2025

December 31, 2024

Short-term debt (1)

143,780

110,524

Long-term debt, less current portion

1,150,228

1,150,551

Total debt

1,294,008

1,261,075

Total equity

1,469,794

1,327,433

Invested capital

2,763,802

2,588,508

Total debt / invested capital

46.8

48.7

Includes current portion of long-term debt.

Average operating working capital to Net sales is defined as the sum of Accounts receivable, Inventories and contract assets less Trade accounts payable and contract liabilities as of period end divided by annualized rolling three months of Net sales.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Non-GAAP Financial Measures

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Operating income as reported

184,340

177,017

718,059

636,462

Special items (pre-tax):

Rationalization and asset impairment net charges (2)

5,961

4,538

18,199

55,860

Acquisition transaction costs (3)

1,056

2,491

2,739

7,042

Amortization of step up in value of acquired inventories (4)

2,482

1,552

3,964

5,026

Adjusted operating income (1)

193,839

185,598

742,961

704,390

As a percent of net sales

18.0

18.2

17.6

Net income as reported

136,022

140,229

520,533

466,108

Special items:

Rationalization and asset impairment net charges (2)

5,961

4,538

18,199

55,860

Acquisition transaction costs (3)

1,056

2,491

2,739

7,042

Amortization of step up in value of acquired inventories (4)

2,482

1,552

3,964

5,026

Pension settlement net charges (gains) (5)

719

(174

)

719

3,792

Loss on asset disposal (6)

—

4,950

Tax effect of Special items (7)(8)

405

(2,655

)

5,177

(11,513

)

Adjusted net income (1)

146,645

145,981

551,331

531,265

Interest expense, net

13,167

11,372

51,561

42,786

Income taxes as reported

36,639

26,824

154,917

128,041

Tax effect of Special items (7)(8)

(405

)

2,655

(5,177

)

11,513

Adjusted EBIT (1)

196,046

186,832

752,632

713,605

Effective tax rate as reported

21.2

16.1

22.9

21.6

Net special item tax impact (8)

(1.4

)

0.7

(1.5

)

(0.8

)

Adjusted effective tax rate (1)

19.8

16.8

21.4

20.8

Diluted earnings per share as reported

2.45

2.47

9.32

8.15

Special items per share

0.20

0.10

0.55

1.14

Adjusted diluted earnings per share (1)

2.65

2.57

9.87

9.29

Weighted average shares (diluted)

55,412

56,818

55,875

57,194

(1)

Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and adjusted diluted EPS are non-GAAP financial measures. Refer to Non-GAAP Information section.

2025 and 2024 net charges primarily relate to rationalization plans within all three segments. Year to date charges in 2024 include the impact of the Company’s disposition of its Russian entity.

Transaction costs related to acquisitions which are included in Selling, general & administrative expenses.

Costs related to acquisitions which are included in Cost of goods sold.

Pension settlement net charges are included in Other income. 2024 net charges are primarily related to the final settlement associated with the termination of a pension plan.

Loss on asset disposal included in Other income.

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.

The OBBBA was enacted in the United States on July 4, 2025. The Company recognized tax expense of approximately $2,900 and $11,700 in the three months and twelve months ended December 31, 2025, respectively, reflecting the cumulative impact of the OBBBA provisions.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Non-GAAP Financial Measures

Twelve Months Ended December 31,

Return on Invested Capital

2025

2024

Net income as reported

520,533

466,108

Plus: Interest expense (after-tax)

43,762

39,665

Less: Interest income (after-tax)

5,118

7,593

Net operating profit after taxes

559,177

498,180

Special Items:

Rationalization and asset impairment net charges

18,199

55,860

Acquisition transaction costs

2,739

7,042

Pension settlement net charges

719

3,792

Amortization of step up in value of acquired inventories

3,964

5,026

Loss on asset disposal

—

4,950

Tax effect of Special items (2)

5,177

(11,513

)

Adjusted net operating profit after taxes (1)

589,975

563,337

Invested Capital

December 31, 2025

December 31, 2024

Short-term debt

143,780

110,524

Long-term debt, less current portion

1,150,228

1,150,551

Total debt

1,294,008

1,261,075

Total equity

1,469,794

1,327,433

Invested capital

2,763,802

2,588,508

Return on invested capital as reported

20.2

19.2

Adjusted return on invested capital (1)

21.3

21.8

(1)

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

Includes the net tax impact of Special items recorded during the respective periods, including the cumulative impact of the OBBBA provisions. 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.

Three Months Ended December 31,

Year Ended December 31,

Cash Conversion

2025

2024

2025

2024

Net cash provided by operating activities

94,965

95,795

661,173

598,977

Capital expenditures

(42,946

)

(31,486

)

(126,974

)

(116,603

)

Free cash flow (1)

52,019

64,309

534,199

482,374

Adjusted net income

146,645

145,981

551,331

531,265

Cash conversion (1)

Free cash flow and cash conversion are non-GAAP financial measures. Refer to Non-GAAP Information section.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Condensed Consolidated Statements of Cash Flows

Three Months Ended December 31,

2025

2024

OPERATING ACTIVITIES:

Net income

136,022

140,229

Adjustments to reconcile Net income to Net cash provided by operating activities:

Rationalization and asset impairment net charges

(70

)

(5,032

)

Depreciation and amortization

25,556

23,143

Deferred income taxes

11,349

(26,988

)

Pension settlement net charges

719

(174

)

Other non-cash items, net

10,212

(5,552

)

Changes in operating assets and liabilities, net of effects from acquisitions:

(Increase) decrease in accounts receivable

(35,863

)

16,663

Decrease in inventories

39,439

47,051

Decrease (increase) in other current assets

55,482

(21,647

)

Decrease in trade accounts payable

(34,298

)

(20,301

)

Decrease in other current liabilities

(104,548

)

(34,607

)

Net change in other long-term assets and liabilities

(9,035

)

(16,990

)

NET CASH PROVIDED BY OPERATING ACTIVITIES

94,965

95,795

INVESTING ACTIVITIES:

Capital expenditures

(42,946

)

(31,486

)

Acquisition of businesses, net of cash acquired

(875

)

—

Proceeds from sale of property, plant and equipment

770

5,292

Other investing activities

—

320

NET CASH USED BY INVESTING ACTIVITIES

(43,051

)

(25,874

)

FINANCING ACTIVITIES:

Proceeds from short-term borrowings, net

55,574

2,928

Payments on long-term borrowings

—

(169

)

Proceeds from exercise of stock options

1,517

1,524

Purchase of shares for treasury

(51,820

)

(52,539

)

Cash dividends paid to shareholders

(41,764

)

(40,164

)

Other financing activities

—

(3,922

)

NET CASH USED BY FINANCING ACTIVITIES

(36,493

)

(92,342

)

Effect of exchange rate changes on Cash and cash equivalents

371

(4,535

)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

15,792

(26,956

)

Cash and cash equivalents at beginning of period

292,997

404,218

Cash and cash equivalents at end of period

308,789

377,262

Cash dividends paid per share

0.75

0.71

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited)

Condensed Consolidated Statements of Cash Flows

Year Ended December 31,

2025

2024

OPERATING ACTIVITIES:

Net income

520,533

466,108

Adjustments to reconcile Net income to Net cash provided by operating activities:

Rationalization and asset impairment net charges

1,141

20,887

Depreciation and amortization

98,546

88,238

Deferred income taxes

82,744

(40,328

)

Pension settlement net charges

719

3,792

Other non-cash items, net

23,003

17,272

Changes in operating assets and liabilities, net of effects from acquisitions:

(Increase) decrease in accounts receivable

(26,433

)

52,829

(Increase) decrease in inventories

(47,783

)

25,355

Increase in other current assets

(10,568

)

(41,558

)

Increase (decrease) in trade accounts payable

56,257

(27,189

)

(Decrease) increase in other current liabilities

(26,090

)

32,703

Net change in other assets and liabilities

(10,896

)

868

NET CASH PROVIDED BY OPERATING ACTIVITIES

661,173

598,977

INVESTING ACTIVITIES:

Capital expenditures

(126,974

)

(116,603

)

Acquisition of businesses, net of cash acquired

(137,530

)

(252,746

)

Proceeds from sale of property, plant and equipment

7,178

7,798

Other investing activities

—

320

NET CASH USED BY INVESTING ACTIVITIES

(257,326

)

(361,231

)

FINANCING ACTIVITIES:

Proceeds from short-term borrowings, net

133,252

8,449

Proceeds from long-term borrowings

—

550,000

Payments on long-term borrowings

(100,169

)

(400,677

)

Proceeds from exercise of stock options

11,578

27,404

Purchase of shares for treasury

(338,308

)

(263,751

)

Cash dividends paid to shareholders

(168,240

)

(162,143

)

Other financing activities

—

(3,922

)

NET CASH USED BY FINANCING ACTIVITIES

(461,887

)

(244,640

)

Effect of exchange rate changes on Cash and cash equivalents

(10,433

)

(9,631

)

DECREASE IN CASH AND CASH EQUIVALENTS

(68,473

)

(16,525

)

Cash and cash equivalents at beginning of period

377,262

393,787

Cash and cash equivalents at end of period

308,789

377,262

Cash dividends paid per share

3.00

2.84

Lincoln Electric Holdings, Inc.

Segment Highlights

(In thousands)

(Unaudited)

Americas

International

The Harris

Corporate /

Welding

Products Group

Eliminations

Consolidated

Three months ended December 31, 2025

Net sales

681,930

259,351

137,434

—

1,078,715

Inter-segment sales

25,101

5,857

2,549

(33,507

)

—

Total sales

707,031

265,208

139,983

(33,507

)

1,078,715

Net income

136,022

As a percent of total sales

12.6

EBIT (1)

137,816

25,485

22,829

(302

)

185,828

As a percent of total sales

19.5

9.6

16.3

17.2

Special items charges (3)

3,295

5,717

488

718

10,218

Adjusted EBIT (2)

141,111

31,202

23,317

416

196,046

As a percent of total sales

20.0

11.8

16.7

18.2

Three months ended December 31, 2024

Net sales

654,786

242,979

124,266

—

1,022,031

Inter-segment sales

37,134

11,233

2,801

(51,168

)

—

Total sales

691,920

254,212

127,067

(51,168

)

1,022,031

Net income

140,229

As a percent of total sales

13.7

EBIT (1)

127,813

32,013

20,278

(1,679

)

178,425

As a percent of total sales

18.5

12.6

16.0

17.5

Special items charges (4)

4,110

517

1,289

2,491

8,407

Adjusted EBIT (2)

131,923

32,530

21,567

812

186,832

As a percent of total sales

19.1

12.8

17.0

18.3

(1)

EBIT is defined as Operating income plus Other income.

The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT.

Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $2,648 in Americas Welding, $2,825 in International Welding and $488 in The Harris Products Group. In addition, there was amortization of the step up in value of acquired inventories of $2,482 in International Welding, a pension settlement net charge of $647 in Americas Welding and $72 in International Welding, and acquisition transaction costs of $718 in Corporate/Eliminations.

Special items in 2024 primarily reflect Rationalization and asset impairments net charges of $2,319 in Americas Welding, $930 in International Welding and $1,289 in Harris Products Group. In addition, there was amortization of the step up in value of acquired inventories of $1,552 in Americas Welding, pension settlement charge of $239 in Americas Welding and a gain of $413 in International Welding, and acquisition transaction costs of $2,491 in Corporate/Eliminations.

Lincoln Electric Holdings, Inc.

Segment Highlights

(In thousands)

(Unaudited)

Americas

International

The Harris

Corporate /

Welding

Products Group

Eliminations

Consolidated

Year ended December 31, 2025

Net sales

2,723,561

930,865

578,577

—

4,233,003

Inter-segment sales

128,922

30,160

15,084

(174,166

)

—

Total sales

2,852,483

961,025

593,661

(174,166

)

4,233,003

Net income

520,533

As a percent of total sales

12.3

EBIT (1)

524,129

99,143

106,540

(2,801

)

727,011

As a percent of total sales

18.4

10.3

17.9

17.2

Special items charges (3)

10,710

11,442

1,068

2,401

25,621

Adjusted EBIT (2)

534,839

110,585

107,608

(400

)

752,632

As a percent of total sales

18.7

11.5

18.1

17.8

Year ended December 31, 2024

Net sales

2,564,847

933,722

510,101

—

4,008,670

Inter-segment sales

135,758

35,861

12,321

(183,940

)

—

Total sales

2,700,605

969,583

522,422

(183,940

)

4,008,670

Net income

466,108

As a percent of total sales

11.6

EBIT (1)

502,367

68,370

84,373

(18,175

)

636,935

As a percent of total sales

18.6

7.1

16.2

15.9

Special items charges (4)

27,821

37,747

3,955

7,147

76,670

Adjusted EBIT (2)

530,188

106,117

88,328

(11,028

)

713,605

As a percent of total sales

19.6

10.9

16.9

17.8

(1)

EBIT is defined as Operating income plus Other income (expense).

The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT.

Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $9,838 in Americas Welding, $7,293 in International Welding and $1,068 in The Harris Products Group. In addition, there was amortization of the step up in value of acquired inventories of $3,739 in International Welding, a pension settlement net charge of $647 in Americas Welding and $72 in International Welding, and acquisition transaction costs of $2,401 in Corporate/Eliminations.

Special items in 2024 primarily reflect rationalization net charges of $18,840 in Americas Welding, $32,960 in International Welding, including the impact of the Company’s disposition of its Russian entity, and $3,955 in Harris Products Group. In addition, there was a loss on asset disposal of $4,950 recorded to Other income in International Welding, amortization of the step up in value of acquired inventories of $4,776 and $250 in Americas Welding and International Welding, respectively, pension settlement charge of $4,205 and gain of $413 in Americas Welding and International Welding, respectively, and acquisition transaction costs of $7,042 in Corporate/Eliminations.

Lincoln Electric Holdings, Inc.

Change in Net Sales by Segment

(In thousands)

(Unaudited)

Three Months Ended December 31 st Change in Net Sales by Segment

Change in Net Sales due to:

Net Sales

Foreign

Net Sales

2024

Volume

Price

Acquisitions

Exchange

2025

Operating Segments

Americas Welding

654,786

(45,383

)

67,964

—

4,563

681,930

International Welding

242,979

(8,635

)

1,289

11,119

12,599

259,351

The Harris Products Group

124,266

(11,029

)

22,171

—

2,026

137,434

Consolidated

1,022,031

(65,047

)

91,424

11,119

19,188

1,078,715

% Change

Americas Welding

(6.9

)

10.4

—

0.6

4.1

International Welding

(3.6

)

0.5

4.7

5.1

6.7

The Harris Products Group

(8.9

)

17.8

—

1.7

10.6

Consolidated

(6.4

)

8.9

1.1

1.9

5.5

Twelve Months Ended December 31 st Change in Net Sales by Segment

Change in Net Sales due to:

Net Sales

Foreign

Net Sales

2024

Volume

Price

Acquisitions

Exchange

2025

Operating Segments

Americas Welding

2,564,847

(107,480

)

184,483

86,361

(4,650

)

2,723,561

International Welding

933,722

(47,629

)

3,062

20,117

21,593

930,865

The Harris Products Group

510,101

7,427

58,995

—

2,054

578,577

Consolidated

4,008,670

(147,682

)

246,540

106,478

18,997

4,233,003

% Change

Americas Welding

(4.2

)

7.2

3.4

(0.2

)

6.2

International Welding

(5.1

)

0.3

2.2

2.3

(0.3

)

The Harris Products Group

1.5

11.6

—

0.3

13.4

Consolidated

(3.7

)

6.2

2.7

0.4

5.6