Lincoln Electric Reports First Quarter 2026 Results

First Quarter 2026 Highlights

Net sales increase 11.7% to $1,121 million; organic sales increase 7.8% Operating income margin of 16.6%; Adjusted operating income margin of 16.9% EPS of $2.47; Adjusted EPS of $2.50 Returned $101 million to shareholders through dividends and share repurchases

CLEVELAND, April 30, 2026--(BUSINESS WIRE)--Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported first quarter 2026 net income of $136.4 million, or diluted earnings per share (EPS) of $2.47, which includes special item after-tax net charges of $2.1 million, or $0.03 EPS. This compares with prior year period net income of $118.5 million, or $2.10 EPS, which included special item after-tax net charges of $3.4 million, or $0.06 EPS. Excluding special items, first quarter 2026 adjusted net income was $138.5 million, or $2.50 adjusted EPS. This compares with adjusted net income of $121.9 million, or $2.16 adjusted EPS, in the prior year period.

First quarter 2026 sales increased 11.7% to $1,121.4 million reflecting a 7.8% increase in organic sales, a 1.6% benefit from acquisitions and a 2.3% favorable foreign exchange. Operating income for the first quarter 2026 was $186.2 million, or 16.6% of sales. This compares with operating income of $164.9 million, or 16.4% of sales, in the prior year period. Excluding special items, adjusted operating income was $189.0 million, or 16.9% of sales, as compared with $169.4 million, or 16.9% of sales, in the prior year period.

"We achieved solid first quarter performance driven by disciplined cost management and improving industrial activity in the Americas," said Steven B. Hedlund, Chairman and Chief Executive Officer. "Our team remains agile as we navigate evolving operating conditions and advance our new long-term RISE strategy. We are well positioned to capitalize on growth opportunities, increase profitability and compound earnings from our strategic initiatives and our capital allocation strategy," Hedlund concluded.

Webcast Information

This earnings release and supplemental information is available under the Investor Relations section of our website. A call to discuss first quarter 2026 financial results will be webcast live today, April 30, 2026, at 10:00 a.m., Eastern Time. Participants can access the call in listen-only mode here and at https://ir.lincolnelectric.com. 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 on the Company's website later today.

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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; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, 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, 2025.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited) Consolidated Statements of Income Fav (Unfav) to Three Months Ended March 31, Prior Year 2026 % of Sales 2025 % of Sales $ % Net sales $ 1,121,434 100.0 % $ 1,004,388 100.0% $ 117,046 11.7 % Cost of goods sold 722,302 64.4 % 638,940 63.6% (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 1.2 % 12,127 1.2% (1,247) (10.3) % Other income 570 0.1 % 444 — 126 28.4 % Income before income taxes 173,354 15.5 % 153,235 15.3% 20,119 13.1 % Income taxes 36,972 3.3 % 34,748 3.5% (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 % Basic earnings per share $ 2.49 $ 2.11 $ 0.38 18.0 % Diluted earnings per share $ 2.47 $ 2.10 $ 0.37 17.6 % Weighted average shares (basic) 54,822 56,058 Weighted average shares (diluted) 55,317 56,527

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands)

(Unaudited) Balance Sheet Highlights Selected Consolidated Balance Sheet Data March 31, 2026 December 31, 2025 Cash and cash equivalents $ 298,903 $ 308,789 Accounts receivable, net 598,315 538,791 Inventories 693,938 633,364 Total current assets 1,863,444 1,739,512 Property, plant and equipment, net 720,836 702,762 Total assets 3,900,395 3,777,577 Trade accounts payable 448,138 364,934 Total current liabilities (1) 1,020,357 956,691 Long-term debt, less current portion 1,150,138 1,150,228 Total equity 1,511,260 1,469,794 Operating Working Capital March 31, 2026 December 31, 2025 Average operating working capital to Net sales (2) 18.6 % 17.9 % Invested Capital March 31, 2026 December 31, 2025 Short-term debt (1) $ 163,502 $ 143,780 Long-term debt, less current portion 1,150,138 1,150,228 Total debt 1,313,640 1,294,008 Total equity 1,511,260 1,469,794 Invested capital $ 2,824,900 $ 2,763,802 Total debt / invested capital 46.5 % 46.8 %

(1) Includes current portion of long-term debt. (2) Average operating working capital to Net sales is defined as the sum of Accounts receivable, Inventories and contract assets less Trade accounts payable and contract liabilities as of period end divided by annualized rolling three months of Net sales.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited) Non-GAAP Financial Measures Three Months Ended March 31, 2026 2025 Operating income as reported $ 186,158 $ 164,918 Special items (pre-tax): Rationalization and asset impairment net charges (2) 2,163 3,865 Transaction costs (3) 653 802 Amortization of step up in value of acquired inventories (4) — (140) Adjusted operating income (1) $ 188,974 $ 169,445 As a percent of net sales 16.9 % 16.9 % Net income as reported $ 136,382 $ 118,487 Special items: Rationalization and asset impairment net charges (2) 2,163 3,865 Transaction costs (3) 653 802 Amortization of step up in value of acquired inventories (4) — (140) Tax effect of Special items (5) (740) (1,158) Adjusted net income (1) 138,458 121,856 Interest expense, net 13,374 12,127 Income taxes as reported 36,972 34,748 Tax effect of Special items (5) 740 1,158 Adjusted EBIT (1) $ 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 (1) 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 (1) $ 2.50 $ 2.16 Weighted average shares (diluted) 55,317 56,527

(1) Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and adjusted diluted EPS are non-GAAP financial measures. Refer to Non-GAAP Information section. (2) 2026 and 2025 net charges primarily relate to rationalization plans within all three segments. (3) Transaction costs primarily relate to acquisitions and are included in Selling, general & administrative expenses. (4) Costs relate to acquisitions and are included in Cost of goods sold. (5) Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate. The applicable tax rates reflect the taxable jurisdiction and nature of each Special item.

Lincoln Electric Holdings, Inc.

Financial Highlights

(In thousands, except per share amounts)

(Unaudited) Non-GAAP Financial Measures Twelve Months Ended March 31, Return on Invested Capital 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 (2) 5,595 (11,545) Adjusted net operating profit after taxes (1) $ 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 (1) 21.5 % 21.5 %

(1) Adjusted net operating profit after taxes and adjusted ROIC are non-GAAP financial measures. Refer to Non-GAAP Information section. (2) Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate. The applicable tax rates reflect the taxable jurisdiction and nature of each Special item.

Three Months Ended March 31, Cash Conversion 2026 2025 Net cash provided by operating activities $ 102,170 $ 185,693 Capital expenditures (39,163 ) (26,949 ) Free cash flow (1) $ 63,007 $ 158,744 Adjusted net income $ 138,458 $ 121,856 Cash conversion (1) 46 % 130 % 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 March 31, 2026 2025 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 ) Other non-cash items, net 8,064 8,634 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 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 ) 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 Cash dividends paid per share $ 0.79 $ 0.75

Lincoln Electric Holdings, Inc.

Segment Highlights

(In thousands)

(Unaudited) Americas International The Harris Corporate / Welding Welding Products Group Eliminations Consolidated 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 ) — Total sales $ 742,934 $ 232,842 $ 192,838 $ (47,180 ) $ 1,121,434 Net income $ 136,382 As a percent of total sales 12.2 % EBIT (1) $ 126,895 $ 20,890 $ 40,991 $ (2,048 ) $ 186,728 As a percent of total sales 17.1 % 9.0 % 21.3 % 16.7 % Special items charges (gain) (3) 573 1,772 (182 ) 653 2,816 Adjusted EBIT (2) $ 127,468 $ 22,662 $ 40,809 $ (1,395 ) $ 189,544 As a percent of total sales 17.2 % 9.7 % 21.2 % 16.9 % 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 ) — Total sales $ 683,479 $ 225,893 $ 136,204 $ (41,188 ) $ 1,004,388 Net income $ 118,487 As a percent of total sales 11.8 % EBIT (1) $ 122,063 $ 21,600 $ 24,151 $ (2,452 ) $ 165,362 As a percent of total sales 17.9 % 9.6 % 17.7 % 16.5 % Special items charges (4) 2,135 1,412 178 802 4,527 Adjusted EBIT (2) $ 124,198 $ 23,012 $ 24,329 $ (1,650 ) $ 169,889 As a percent of total sales 18.2 % 10.2 % 17.9 % 16.9 %

(1) EBIT is defined as Operating income plus Other income. (2) The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT. (3) Special items in 2026 primarily reflect Rationalization and asset impairments net charges of $573 in Americas Welding and $1,772 in International Welding, and a net gain of $182 in Harris Products Group. In addition, there were transaction costs of $653 in Corporate/Eliminations. (4) Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $2,135 in Americas Welding, $1,552 in International Welding and $178 in Harris Products Group, as well as transaction costs of $802 in Corporate/Eliminations.

Lincoln Electric Holdings, Inc.

Change in Net Sales by Segment

(In thousands)

(Unaudited) Three Months Ended March 31st Change in Net Sales by Segment Change in Net Sales due to: Net Sales Foreign Net Sales 2025 Volume Price Acquisitions Exchange 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 Consolidated $ 1,004,388 $ (25,641) $ 104,558 $ 15,794 $ 22,335 $ 1,121,434 % 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 % Consolidated (2.6) % 10.4 % 1.6 % 2.3 % 11.7 %

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Contacts

Amanda Butler
Vice President, Investor Relations & Communications
Tel: 216.383.2534
Email: [email protected]

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