🇺🇸 SECLINCOLN ELECTRIC HOLDINGS INCDoubao · 实盘不做把握 8/10不做原因:无增量信息
北京时间·🕒 发布 01:16:06·⟳ 抓取 01:17:05 +59s·⚡ 决策 10-28 01:19:29 +2m24s·2.3 小时前
林肯电气提交2026Q3 10-Q季报：销售12.21亿美元、调整后EPS 2.98美元，与盘前8-K财报完全一致，无新增事实
本信号是Q3财报的法定10-Q备案，内容与同日盘前已通过IR新闻稿及SEC 8-K（Item 2.02）发布、并已由本臂12:55 UTC据一手源ENTER LONG的Q3业绩完全同一事件；10-Q未提供新闻稿之外的新增业绩、指引或重大事项（石棉诉讼367名原告、1,298万美元回流税项均已在财报/电话会覆盖），且股价盘中已涨约7%，无新增edge。
📄 原文LINCOLN ELECTRIC HOLDINGS INC↗ 原文
----- leco-20260930x10q.htm ----- Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.…
不做 Lincoln Electric Holdings, Inc.（LECO.US）
同一Q3财报催化已于2026-10-27盘前经IR新闻稿首发并由本臂ENTER LONG（在仓），8-K与多则转述均已判定重复；本10-Q为程序性法定备案、无新增事实，且盘中股价已涨约7%，再入构成同催化追高与双重敞口。
展开详情(成交明细 / 研究档案 / 原文全文 / 决策记录链)
研究档案
结论摘要
林肯电气10-Q为同日盘前Q3财报（销售+15.1%、调整后EPS 2.98美元超预期、股息上调10%）的法定备案，所有数字与已处理的8-K/IR新闻稿一致，无新增事实，股价已重定价约7%，不重复建仓。
🔎 新鲜度:最早出现 2026-10-27 · 扩散 high · price-in 风险 high ↗
主要风险
- 若10-Q附注中存在新闻稿未覆盖的重大表外事项（本次未见），结论需重估
- 已持仓的同一催化多头敞口应按原决策止损/止盈管理，本条不新增仓位
先例如何影响了这次决策
对本次决策的影响:未改变标的或方向；确认不重复建仓、不追高
方向:同一催化已有在仓多头决策，本条为重复法定备案，无需再用先例校准
涨幅量级:不适用：不产生新交易
形态:10-K/10-Q相对先行8-K新闻稿通常无新增信息，属程序性备案
工具执行结果 · 成功 1 · 降级 0 · 失败 0 · 取消 0
- search_processed_events 成功 stock_tools HTTP · 1,294 ms
{"result": "search_processed_events:agent query=`lincoln electric leco 10-q third quarter 2026 earnings | lincoln electric q3 2026 results net sales eps | 林肯电气 2026 三季报 业绩`；结构化索引覆盖完整 72 小时；旧记录兼容扫描近 62.9/72 小时、7114 条本臂决策(完整)，返回 5 条候选。\n• 10-27 12:55 UTC(北京 20:55) [bm25:72%] 值得做 LECO.US (ir_page) — Li
原文全文
展开原文 · 106,650 字
----- leco-20260930x10q.htm -----
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
September 30, 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 September 30, 2026 was
54,156,967
.
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)
8
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
24
Item 3. Quantitative and Qualitative Disclosures About Market Risk
35
Item 4. Controls and Procedures
35
PART II. OTHER INFORMATION
35
Item 1. Legal Proceedings
35
Item 1A. Risk Factors
35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
36
Item 4. Mine Safety Disclosures
36
Item 5. Other Information
36
Item 6. Exhibits
37
Signatures
38
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
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
Net sales (Note 2)
$
1,221,281
$
1,061,227
$
3,562,378
$
3,154,288
Cost of goods sold
796,250
671,916
2,289,219
1,993,982
Gross profit
425,031
389,311
1,273,159
1,160,306
Selling, general & administrative expenses
205,802
206,823
641,484
614,349
Rationalization and asset impairment net charges (Note 6)
7,853
5,831
13,497
12,238
Operating income
211,376
176,657
618,178
533,719
Interest expense, net
11,346
13,648
37,241
38,394
Other income
3
2,986
332
7,464
Income before income taxes
200,033
165,995
581,269
502,789
Income taxes (Note 11)
55,687
43,367
142,022
118,278
Net income
$
144,346
$
122,628
$
439,247
$
384,511
Basic earnings per share (Note 3)
$
2.65
$
2.23
$
8.04
$
6.92
Diluted earnings per share (Note 3)
$
2.63
$
2.21
$
7.97
$
6.86
Cash dividends declared per share
$
0.79
$
0.75
$
2.37
$
2.25
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 September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Net income
$
144,346
$
122,628
$
439,247
$
384,511
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges
(
1,627
)
83
(
3,126
)
1,085
Defined benefit pension plan activity
56
(
685
)
13
(
2,007
)
Currency translation adjustment
(
7,373
)
(
651
)
(
13,396
)
89,147
Other comprehensive (loss) income:
(
8,944
)
(
1,253
)
(
16,509
)
88,225
Comprehensive income
$
135,402
$
121,375
$
422,738
$
472,736
See notes to these consolidated financial statements.
4
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, 2026
December 31, 2025
(UNAUDITED)
(NOTE 1)
ASSETS
Current Assets
Cash and cash equivalents
$
283,237
$
308,789
Accounts receivable (less allowance for doubtful accounts of $
7,406
in 2026; $
11,326
in 2025)
603,307
538,791
Inventories (Note 8)
699,380
633,364
Other current assets
240,263
258,568
Total Current Assets
1,826,187
1,739,512
Property, plant and equipment (less accumulated depreciation of $
974,738
in 2026; $
942,806
in 2025)
747,619
702,762
Goodwill
885,966
886,686
Other assets
433,858
448,617
TOTAL ASSETS
$
3,893,630
$
3,777,577
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt (Note 10)
$
—
$
143,780
Trade accounts payable
463,738
364,934
Accrued employee compensation and benefits
184,909
116,158
Other current liabilities
307,066
331,819
Total Current Liabilities
955,713
956,691
Long-term debt, less current portion (Note 10)
1,149,969
1,150,228
Other liabilities
233,227
200,864
Total Liabilities
2,338,909
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
54,156,967
shares in 2026 and
54,845,950
in 2025
9,858
9,858
Additional paid-in capital
625,270
601,566
Retained earnings
4,650,206
4,342,080
Accumulated other comprehensive loss
(
222,440
)
(
205,931
)
Treasury shares, at cost -
44,424,467
shares in 2026 and
43,735,484
shares in 2025
(
3,508,173
)
(
3,277,779
)
Total Equity
1,554,721
1,469,794
TOTAL LIABILITIES AND TOTAL EQUITY
$
3,893,630
$
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
Net income
158,519
158,519
Defined benefit pension plan activity, net of tax
13
13
Unrealized loss on derivatives designated and qualifying as cash flow hedges, net of tax
(
176
)
(
176
)
Currency translation adjustment, net of tax
436
436
Cash dividends declared – $
0.79
per share
(
43,591
)
(
43,591
)
Stock-based compensation activity
6
4,812
62
4,874
Purchase of shares for treasury
(
287
)
(
76,121
)
(
76,121
)
Other
676
(
1,710
)
(
1,034
)
Balance at June 30, 2026
54,506
$
9,858
$
617,879
$
4,548,978
$
(
213,496
)
$
(
3,409,039
)
$
1,554,180
Net income
144,346
144,346
Defined benefit pension plan activity, net of tax
56
56
Unrealized loss on derivatives designated and qualifying as cash flow hedges, net of tax
(
1,627
)
(
1,627
)
Currency translation adjustment, net of tax
(
7,373
)
(
7,373
)
Cash dividends declared – $
0.79
per share
(
43,057
)
(
43,057
)
Stock-based compensation activity
24
7,310
264
7,574
Purchase of shares for treasury
(
373
)
(
99,398
)
(
99,398
)
Other
81
(
61
)
20
Balance at September 30, 2026
54,157
$
9,858
$
625,270
$
4,650,206
$
(
222,440
)
$
(
3,508,173
)
$
1,554,721
6
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, 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
Net income
143,396
143,396
Defined benefit pension plan activity, net of tax
(
37
)
(
37
)
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax
173
173
Currency translation adjustment, net of tax
60,119
60,119
Cash dividends declared – $
0.75
per share
(
41,080
)
(
41,080
)
Stock-based compensation activity
8
3,985
80
4,065
Purchase of shares for treasury
(
648
)
(
127,130
)
(
127,130
)
Other
999
(
1,062
)
(
63
)
Balance at June 30, 2025
55,186
$
9,858
$
586,234
$
4,168,467
$
(
210,657
)
$
(
3,174,289
)
$
1,379,613
Net income
122,628
122,628
Defined benefit pension plan activity, net of tax
(
685
)
(
685
)
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax
83
83
Currency translation adjustment, net of tax
(
651
)
(
651
)
Cash dividends declared – $
0.75
per share
(
41,449
)
(
41,449
)
Stock-based compensation activity
66
6,661
639
7,300
Purchase of shares for treasury
(
226
)
(
52,664
)
(
52,664
)
Other
2,749
(
2,291
)
458
Balance at September 30, 2025
55,026
$
9,858
$
595,644
$
4,247,355
$
(
211,910
)
$
(
3,226,314
)
$
1,414,633
7
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
Nine Months Ended September 30,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
439,247
$
384,511
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization
78,409
72,990
Deferred income taxes
32,516
71,395
Stock-based compensation
19,724
15,910
Other, net
(
3,994
)
(
1,908
)
Changes in operating assets and liabilities, net of effects from acquisitions:
(Increase) decrease in accounts receivable
(
66,620
)
9,430
Increase in inventories
(
71,007
)
(
87,222
)
Decrease (increase) in other current assets
18,242
(
66,050
)
Increase in trade accounts payable
100,106
90,555
Increase in other current liabilities
36,242
78,458
Net change in other assets and liabilities
(
11,174
)
(
1,861
)
NET CASH PROVIDED BY OPERATING ACTIVITIES
571,691
566,208
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(
111,819
)
(
84,028
)
Acquisition of businesses, net of cash acquired
140
(
136,655
)
Proceeds from sale of property, plant and equipment
5,851
6,408
NET CASH USED BY INVESTING ACTIVITIES
(
105,828
)
(
214,275
)
CASH FLOWS FROM FINANCING ACTIVITIES
(Payments on) proceeds from short-term borrowings
(
143,889
)
77,678
Payments on long-term borrowings
—
(
100,169
)
Proceeds from exercise of stock options
10,863
10,061
Purchase of shares for treasury
(
232,189
)
(
286,488
)
Cash dividends paid to shareholders
(
130,689
)
(
126,476
)
NET CASH USED BY FINANCING ACTIVITIES
(
495,904
)
(
425,394
)
Effect of exchange rate changes on Cash and cash equivalents
4,489
(
10,804
)
DECREASE IN CASH AND CASH EQUIVALENTS
(
25,552
)
(
84,265
)
Cash and cash equivalents at beginning of period
308,789
377,262
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
283,237
$
292,997
See notes to these consolidated financial statements.
8
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 nine months ended September 30, 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.
9
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 fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is prohibited.
NOTE 2 — REVENUE RECOGNITION
The following table presents the Company’s Net sales disaggregated by product line:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Consumables
$
683,100
$
590,873
$
2,007,118
$
1,706,122
Equipment
305,908
271,692
883,646
817,810
Automation
232,273
198,662
671,614
630,356
Net sales
$
1,221,281
$
1,061,227
$
3,562,378
$
3,154,288
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 September 30, 2026, the Company recorded $
54,762
related to advance customer payments and $
51,341
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.
10
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
At September 30, 2026 and December 31, 2025, the Company recorded $
78,983
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 September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Numerator:
Net income
$
144,346
$
122,628
$
439,247
$
384,511
Denominator (shares in 000's):
Basic weighted average shares outstanding
54,408
55,097
54,630
55,567
Effect of dilutive securities - Stock options and awards
465
477
468
453
Diluted weighted average shares outstanding
54,873
55,574
55,098
56,020
Basic earnings per share
$
2.65
$
2.23
$
8.04
$
6.92
Diluted earnings per share
$
2.63
$
2.21
$
7.97
$
6.86
For the three months ended September 30, 2026 and 2025, common shares subject to equity-based awards of
9
and
19,416
, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. For the nine months ended September 30, 2026 and 2025, common shares subject to equity-based awards of
2,471
and
2,089
, 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
$
131,154
, net of cash acquired and certain debt-like items. Alloy Steel
supplies proprietary technology, engineering services and digital monitoring to the mining sector.
The Company recognized acquisition costs of
$
553
and $
909
during the three and nine months ended September 30, 2026
, respectively, and
$
452
and
$
1,683
during the three and nine months ended September 30, 2025, respectively. Acquisition costs 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.
11
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
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.
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.
12
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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 September 30, 2026
Net sales
$
801,264
$
226,904
$
193,113
$
1,221,281
Inter-segment sales
25,959
6,502
3,977
36,438
827,223
233,406
197,090
1,257,719
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales
(
36,438
)
Net sales
$
1,221,281
Cost of goods sold
516,658
166,357
149,086
Other segment expenses
(1) (3)
145,630
49,307
13,941
Addback: Special items charge
(1)
(
1,612
)
(
6,224
)
(
17
)
Segment Adjusted EBIT
$
166,547
$
23,966
$
34,080
$
224,593
Other Segment Information
Capital expenditures
$
(
31,991
)
$
(
5,825
)
$
(
3,403
)
$
(
41,219
)
Depreciation and amortization
18,111
6,922
2,527
27,560
Three Months Ended September 30, 2025
Net sales
$
691,794
$
219,629
$
149,804
$
1,061,227
Inter-segment sales
30,058
9,830
3,441
43,329
721,852
229,459
153,245
1,104,556
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales
(
43,329
)
Net sales
$
1,061,227
Cost of goods sold
(2)
438,400
164,747
111,126
Other segment expenses
(2) (3)
156,212
41,653
14,357
Addback: Special items charge
(2)
(
4,375
)
(
2,762
)
(
316
)
Segment Adjusted EBIT
$
131,615
$
25,821
$
28,078
$
185,514
Other Segment Information
Capital expenditures
$
(
27,037
)
$
(
3,697
)
$
(
902
)
$
(
31,636
)
Depreciation and amortization
17,176
6,119
2,576
25,871
(1)
In the three months ended September 30, 2026, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of
$
1,612
,
$
6,224
, and
$
17
in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6.
(2)
In the three months ended September 30, 2025, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of
$
4,150
,
$
1,365
, and
$
316
in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6. Special items within Cost of goods sold primarily include
an amortization of step up in value of acquired inventories of
$
1,397
in
International Welding.
(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.
13
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The Harris
Americas
International
Products
Welding
Welding
Group
Total
Nine Months Ended September 30, 2026
Net sales
$
2,281,927
$
697,231
$
583,220
$
3,562,378
Inter-segment sales
91,572
19,873
13,613
125,058
2,373,499
717,104
596,833
3,687,436
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales
(
125,058
)
Net sales
$
3,562,378
Cost of goods sold
1,468,025
509,230
435,624
Other segment expenses
(1) (3)
456,561
144,929
44,089
Addback: Special items charge
(1)
(
3,197
)
(
10,278
)
(
22
)
Segment Adjusted EBIT
$
452,110
$
73,223
$
117,142
$
642,475
Other Segment Information
Capital expenditures
$
(
80,932
)
$
(
21,510
)
$
(
9,377
)
$
(
111,819
)
Depreciation and amortization
53,753
20,275
7,766
81,794
Nine Months Ended September 30, 2025
Net sales
$
2,041,631
$
671,514
$
441,143
$
3,154,288
Inter-segment sales
103,821
24,303
12,535
140,659
2,145,452
695,817
453,678
3,294,947
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales
(
140,659
)
Net sales
$
3,154,288
Cost of goods sold
(2)
1,305,298
498,475
327,074
Other segment expenses
(2) (3)
453,841
123,684
42,893
Addback: Special items charge
(2)
(
7,415
)
(
5,725
)
(
580
)
Segment Adjusted EBIT
$
393,728
$
79,383
$
84,291
$
557,402
Other Segment Information
Capital expenditures
$
(
68,777
)
$
(
11,911
)
$
(
3,340
)
$
(
84,028
)
Depreciation and amortization
50,429
16,982
7,837
75,248
(1)
In the nine months ended September 30, 2026, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of
$
3,197
,
$
10,278
, and
$
22
in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6.
(2)
In the nine months ended September 30, 2025, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of
$
7,190
,
$
4,468
, and
$
580
in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6. Special items within Cost of goods sold primarily include
an amortization of step up in value of acquired inventories of
$
1,257
in
International Welding.
(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.
14
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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 September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Reconciliation of Segment Adjusted EBIT to Consolidated Income before income taxes
Segment Adjusted EBIT
$
224,593
$
185,514
$
642,475
$
557,402
Addback: Segment special items charge
(
7,853
)
(
7,453
)
(
13,497
)
(
13,720
)
Corporate special items charge
(1)
(
765
)
(
452
)
(
1,433
)
(
1,683
)
Elimination of inter-segment profit
(
587
)
(
972
)
(
1,398
)
(
3,794
)
Unallocated corporate expenses, net
(
4,009
)
3,006
(
7,637
)
2,978
Interest income
1,289
1,501
4,476
5,418
Interest expense
(
12,635
)
(
15,149
)
(
41,717
)
(
43,812
)
Consolidated Income before income taxes
$
200,033
$
165,995
$
581,269
$
502,789
Reconciliation of Other Segment Information to Consolidated Information
Capital expenditures
Segment totals
$
(
41,219
)
$
(
31,636
)
$
(
111,819
)
$
(
84,028
)
Adjustments
—
—
—
—
Consolidated totals
$
(
41,219
)
$
(
31,636
)
$
(
111,819
)
$
(
84,028
)
Depreciation and amortization
Segment totals
$
27,560
$
25,871
$
81,794
$
75,248
Adjustments
(
1,129
)
(
1,127
)
(
3,385
)
(
2,258
)
Consolidated totals
$
26,431
$
24,744
$
78,409
$
72,990
(1)
Corporate special items primarily include transaction costs.
September 30, 2026
December 31, 2025
Reconciliation of Segment Assets to Consolidated Assets
Americas Welding
$
2,629,479
$
2,464,376
International Welding
1,162,497
1,244,117
The Harris Products Group
477,562
431,259
Total Segment Assets
4,269,538
4,139,752
Corporate Assets
39,375
41,033
LIFO reserve not allocated to segments
(
145,501
)
(
138,589
)
Eliminations
(
269,782
)
(
264,619
)
Total Consolidated Assets
$
3,893,630
$
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:
Nine Months Ended September 30,
2026
2025
Americas Welding
$
3,197
$
7,190
International Welding
10,278
4,468
The Harris Products Group
22
580
Total
$
13,497
$
12,238
At September 30, 2026 and December 31, 2025, rationalization liabilities of $
6,740
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.
15
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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 nine months ended September 30, 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
(
1,884
)
(
9,929
)
(
449
)
(
12,262
)
Charged to expense
2,043
9,852
22
11,917
Balance at September 30, 2026
$
1,103
$
5,636
$
1
$
6,740
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 September 30, 2026
Unrealized gain
(loss) on derivatives
designated and
Defined benefit
Currency
qualifying as cash
pension plan
translation
flow hedges
activity
adjustment
Total
Balance at June 30, 2026
$
16,188
$
(
1,105
)
$
(
228,579
)
$
(
213,496
)
Other comprehensive income before reclassification
(
758
)
—
(
7,373
)
(
8,131
)
Amounts reclassified from AOCI
(
869
)
56
—
(
813
)
Net current-period other comprehensive (loss) income
(
1,627
)
56
(
7,373
)
(
8,944
)
Balance at September 30, 2026
$
14,561
$
(
1,049
)
$
(
235,952
)
$
(
222,440
)
Three Months Ended September 30, 2025
Unrealized gain
(loss) on derivatives
designated and
Defined benefit
Currency
qualifying as cash
pension plan
translation
flow hedges
activity
adjustment
Total
Balance at June 30, 2025
$
18,257
$
(
2,370
)
$
(
226,544
)
$
(
210,657
)
Other comprehensive income (loss) before reclassification
1,300
—
(
651
)
649
Amounts reclassified from AOCI
(
1,217
)
(
685
)
—
(
1,902
)
Net current-period other comprehensive income (loss)
83
(
685
)
(
651
)
(
1,253
)
Balance at September 30, 2025
$
18,340
$
(
3,055
)
$
(
227,195
)
$
(
211,910
)
16
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
Nine Months Ended September 30, 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
1,630
—
(
13,396
)
(
11,766
)
Amounts reclassified from AOCI
(
4,756
)
13
—
(
4,743
)
Net current-period other comprehensive (loss) income
(
3,126
)
13
(
13,396
)
(
16,509
)
Balance at September 30, 2026
$
14,561
$
(
1,049
)
$
(
235,952
)
$
(
222,440
)
Nine Months Ended September 30, 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
3,405
—
89,147
92,552
Amounts reclassified from AOCI
(
2,320
)
(
2,007
)
—
(
4,327
)
Net current-period other comprehensive income (loss)
1,085
(
2,007
)
89,147
88,225
Balance at September 30, 2025
$
18,340
$
(
3,055
)
$
(
227,195
)
$
(
211,910
)
NOTE 8 — INVENTORIES
Inventories in the Condensed Consolidated Balance Sheets are comprised of the following components:
September 30, 2026
December 31, 2025
Raw materials
$
157,837
$
164,440
Work-in-process
171,968
124,351
Finished goods
369,575
344,573
Total
$
699,380
$
633,364
At September 30, 2026 and December 31, 2025, approximately
37
% and
38
%, respectively, of total inventories were valued using the last-in, first-out ("LIFO") method. The excess of current cost over LIFO cost was $
145,501
and $
138,589
at September 30, 2026 and December 31, 2025, respectively.
17
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
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
September 30, 2026
December 31, 2025
Right-of-use assets
Other assets
$
57,664
$
52,989
Current liabilities
Other current liabilities
$
14,479
$
13,460
Noncurrent liabilities
Other liabilities
43,502
40,061
Total lease liabilities
$
57,981
$
53,521
The total future minimum lease payments for noncancelable operating leases were as follows:
September 30, 2026
2026
$
5,859
2027
15,876
2028
14,004
2029
9,406
2030
5,212
After 2030
16,482
Total lease payments
$
66,839
Less: Imputed interest
8,858
Operating lease liabilities
$
57,981
As of September 30, 2026 the weighted average remaining lease term is
6.1
years and the weighted average discount rate used to determine the operating lease liability is
3.9
%.
Other information related to leases was as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
Lease expense
(1)
$
5,726
$
7,964
$
20,467
$
20,298
Cash paid for amounts included in the measurement of lease liabilities
(2)
4,427
4,340
13,406
10,882
Right-of-use assets obtained in exchange for operating lease liabilities
9,870
6,981
15,940
11,634
(1)
Amounts are included in Costs of goods sold and Selling, general & 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.
18
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
NOTE 10 — DEBT
At September 30, 2026 and December 31, 2025, debt consisted of the following:
September 30, 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
2,169
2,678
Less current portion
—
—
Less debt issuance costs
2,200
2,460
Long-term debt, less current portion
1,149,969
1,150,228
Short-term debt
Amounts due to banks
Variable
(2)
—
143,780
Current portion long-term debt
—
—
Total short-term debt
—
143,780
Total debt
$
1,149,969
$
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 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.
19
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 September 30, 2026, the Company’s total weighted average effective interest rate and remaining weighted average tenure of the senior unsecured notes was
4.16
%, including the impact from terminated swap agreements, and
7.9
years, respectively. The senior unsecured notes contain certain affirmative and negative covenants.
As of September 30, 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 September 30, 2026 the Company was in compliance with all of its covenants
and had
no
outstanding borrowings under the revolving credit facility.
The Company has other lines of credit and debt agreements totaling $
50,065
.
As of September 30, 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 September 30, 2026 and December 31, 2025, the fair value of long-term debt, including the current portion, was approximately $
1,028,632
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 $
1,149,969
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 evaluates the extent to which earnings of its foreign subsidiaries are intended to be permanently reinvested outside the United States. As a result of its ongoing assessment of global cash strategy, the Company determined that a portion of previously indefinitely reinvested foreign earnings may be repatriated, resulting in a charge of approximately $
12,977
during the third quarter 2026. During the third quarter 2025, the Company recognized tax expense of approximately $
8,800
related to the cumulative impact of the One Big Beautiful Bill Act (“OBBBA”).
The Company recognized $
142,022
of tax expense on pre-tax income of $
581,269
, resulting in an effective income tax rate of
24.4
% for the nine months ended September 30, 2026. The effective income tax rate was
23.5
% for the nine months ended September 30, 2025. The effective tax rate was higher for the nine months ended September 30, 2026, as compared with the same period in 2025, primarily due to the mix of earnings and timing of discrete tax items and the change in the Company’s indefinite reinvestment assertion in foreign earnings as discussed above.
20
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
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 and nine months ended September 30, 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 was considered significant at September 30, 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 $
85,256
and $
88,555
at September 30, 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 $
279,192
and $
337,659
at September 30, 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 $
484,966
and $
370,668
at September 30, 2026 and December 31, 2025, respectively.
Fair values of derivative instruments in the Company’s Condensed Consolidated Balance Sheets consisted of the following:
September 30, 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
$
1,079
$
1,132
$
—
$
—
$
2,149
$
289
$
—
$
—
Net investment contracts
6,338
338
—
—
102
12,529
—
—
Not designated as hedging instruments:
Foreign exchange contracts
1,993
3,491
—
—
582
470
—
—
Total derivatives
$
9,410
$
4,961
$
—
$
—
$
2,833
$
13,288
$
—
$
—
21
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following:
Three Months Ended
Nine Months Ended
September 30,
September 30,
Derivatives by hedge designation
Classification of (loss) gain
2026
2025
2026
2025
Not designated as hedges:
Foreign exchange contracts
Selling, general & administrative expenses
$
(
3,350
)
$
113
$
(
5,064
)
$
22,071
The effects of designated hedges on AOCI consisted of the following:
Total (loss) gain recognized in AOCI, net of tax
September 30, 2026
December 31, 2025
Foreign exchange contracts
$
(
106
)
$
1,396
Forward starting swap agreements
14,668
16,291
Net investment contracts
(
233
)
(
5,721
)
The Company expects a charge of $
106
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:
Three Months Ended
Nine Months Ended
Gain (loss) recognized in the
September 30,
September 30,
Derivative type
Consolidated Statements of Income:
2026
2025
2026
2025
Foreign exchange contracts
Sales
$
599
$
1,387
$
3,112
$
1,052
Cost of goods sold
176
(
219
)
1,867
324
Forward starting swap agreements
Interest expense, net
689
689
2,755
2,066
NOTE 13 — FAIR VALUE
The following table provides a summary of assets and liabilities as of September 30, 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
September 30, 2026
(Level 1)
(Level 2)
Inputs (Level 3)
Assets:
Foreign exchange contracts
$
3,072
$
—
$
3,072
$
—
Net investment contracts
6,338
—
6,338
—
Pension surplus
2,751
2,751
—
—
Total assets
$
12,161
$
2,751
$
9,410
$
—
Liabilities:
Foreign exchange contracts
$
4,623
$
—
$
4,623
$
—
Net investment contracts
338
—
338
—
Deferred compensation
28,173
—
28,173
—
Total liabilities
$
33,134
$
—
$
33,134
$
—
22
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 September 30, 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 September 30, 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 September 30, 2026 and December 31, 2025, Trade accounts payable included $
31,695
and $
25,709
, respectively, payable to suppliers that have elected to participate in the supplier financing program.
(1)
23
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.
24
Table of Contents
Results of Operations
The following tables show the Company’s results of operations:
Three Months Ended September 30,
Favorable (Unfavorable)
2026
2025
2026 vs. 2025
Amount
% of Sales
Amount
% of Sales
$
%
Net sales
$
1,221,281
$
1,061,227
$
160,054
15.1
%
Cost of goods sold
796,250
671,916
(124,334)
(18.5)
%
Gross profit
425,031
34.8
%
389,311
36.7
%
35,720
9.2
%
Selling, general & administrative expenses
205,802
16.9
%
206,823
19.5
%
1,021
0.5
%
Rationalization and asset impairment net charges
7,853
0.6
%
5,831
0.5
%
(2,022)
(34.7)
%
Operating income
211,376
17.3
%
176,657
16.6
%
34,719
19.7
%
Interest expense, net
11,346
13,648
2,302
16.9
%
Other income
3
2,986
(2,983)
(99.9)
%
Income before income taxes
200,033
16.4
%
165,995
15.6
%
34,038
20.5
%
Income taxes
55,687
43,367
(12,320)
(28.4)
%
Effective tax rate
27.8
%
26.1
%
(1.7)
%
Net income
$
144,346
11.8
%
$
122,628
11.6
%
$
21,718
17.7
%
Diluted earnings per share
$
2.63
$
2.21
$
0.42
19.0
%
Nine Months Ended September 30,
Favorable (Unfavorable)
2026
2025
2026 vs. 2025
Amount
% of Sales
Amount
% of Sales
$
%
Net sales
$
3,562,378
$
3,154,288
$
408,090
12.9
%
Cost of goods sold
2,289,219
1,993,982
(295,237)
(14.8)
%
Gross profit
1,273,159
35.7
%
1,160,306
36.8
%
112,853
9.7
%
Selling, general & administrative expenses
641,484
18.0
%
614,349
19.5
%
(27,135)
(4.4)
%
Rationalization and asset impairment net charges
13,497
0.4
%
12,238
0.4
%
(1,259)
(10.3)
%
Operating income
618,178
17.4
%
533,719
16.9
%
84,459
15.8
%
Interest expense, net
37,241
38,394
1,153
3.0
%
Other income
332
7,464
(7,132)
(95.6)
%
Income before income taxes
581,269
16.3
%
502,789
15.9
%
78,480
15.6
%
Income taxes
142,022
118,278
(23,744)
(20.1)
%
Effective tax rate
24.4
%
23.5
%
(0.9)
%
Net income
$
439,247
12.3
%
$
384,511
12.2
%
$
54,736
14.2
%
Diluted earnings per share
$
7.97
$
6.86
$
1.11
16.2
%
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:
Three Months Ended September 30,
Change in Net Sales due to:
Net Sales
Foreign
Net Sales
2025
Volume
Price
Acquisitions
Exchange
2026
Lincoln Electric Holdings, Inc.
$
1,061,227
$
93,010
$
60,146
$
5,071
$
1,827
$
1,221,281
% Change
Lincoln Electric Holdings, Inc.
8.8
%
5.7
%
0.5
%
0.1
%
15.1
%
Nine Months Ended September 30,
Change in Net Sales due to:
Net Sales
Foreign
Net Sales
2025
Volume
Price
Acquisitions
Exchange
2026
Lincoln Electric Holdings, Inc.
$
3,154,288
$
93,159
$
248,615
$
37,058
$
29,258
$
3,562,378
% Change
Lincoln Electric Holdings, Inc.
3.0
%
7.9
%
1.2
%
0.8
%
12.9
%
Net sales increased for the three and nine months ended September 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 and nine months ended September 30, 2026 is primarily driven by higher volumes and an increase in pricing due to higher input costs.
Gross Profit:
Gross profit as a percentage of sales decreased 1.9% and 1.1% for the three and nine months ended September 30, 2026, respectively, as compared to the same 2025 periods, driven by
higher input costs. The three and nine months ended September 30, 2026 includes last-in, first-out (“LIFO”) charges of $1,888 and $6,912, respectively, which are primarily due to rising input costs. This compares with charges of $4,804 and $15,088, respectively, in the comparable 2025 periods.
Selling, General & Administrative Expenses:
Selling, general & administrative expenses increased in the nine months ended September 30, 2026 as compared to the same 2025 period, 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 operating leverage from increased organic sales.
Operating Income:
Operating income as a percentage of sales was 17.3% for the three months ended September 30, 2026 as compared to 16.6% in the prior year period. Excluding special items, Operating income as a percentage of sales was 18.0% for the three months ended September 30, 2026 as compared with 17.4% in the prior year period. Operating income as a percentage of sales was 17.4% for the nine months ended September 30, 2026 as compared to 16.9% in the prior year period. Excluding special items, Operating income as a percentage of sales was 17.8% in the nine months ended September 30, 2026 as compared with 17.4% in the prior year period. Refer to explanations above for additional details. Also refer to Non-GAAP Financial Measures for a reconciliation of Adjusted operating income.
26
Table of Contents
Income Taxes:
The effective tax rate was higher for the three and nine months ended September 30, 2026 as compared to the same 2025 periods, primarily due to the mix of earnings, the timing of discrete tax items, and the impact of the change in the Company's indefinite reinvestment assertion for certain foreign earnings, as discussed in Note 11. The effective tax rate for the three months ended September 30, 2025 included the impact of the One Big Beautiful Bill Act (“OBBBA”).
Segment Results
The following tables present components of Net sales by segment:
Three Months Ended September 30,
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
$
691,794
$
91,589
$
16,390
$
—
$
1,491
$
801,264
International Welding
219,629
(3,039)
5,287
5,071
(44)
226,904
The Harris Products Group
149,804
4,460
38,469
—
380
193,113
% Change
Americas Welding
13.2
%
2.4
%
—
0.2
%
15.8
%
International Welding
(1.4)
%
2.4
%
2.3
%
—
3.3
%
The Harris Products Group
3.0
%
25.7
%
—
0.2
%
28.9
%
Nine Months Ended September 30,
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
$
2,041,631
$
138,658
$
91,550
$
—
$
10,088
$
2,281,927
International Welding
671,514
(35,601)
9,360
37,058
14,900
697,231
The Harris Products Group
441,143
(9,898)
147,705
—
4,270
583,220
% Change
Americas Welding
6.8
%
4.5
%
—
0.5
%
11.8
%
International Welding
(5.3)
%
1.4
%
5.5
%
2.2
%
3.8
%
The Harris Products Group
(2.2)
%
33.5
%
—
0.9
%
32.2
%
(1)
Increase for the three and nine months ended September 30, 2026 in Americas Welding is primarily due to improved industrial demand and higher volumes across all three product lines. Decrease for the three and nine months ended September 30, 2026 in International Welding is primarily due to slow industrial activity in Europe and the Middle East conflict. Increase for the three months ended September 30, 2026 for The Harris Products Group primarily driven by improved industrial demand. Decrease for the nine months ended September 30, 2026 for The Harris Products Group due to a challenging prior year comparison resulting from expanded market presence in retail.
(2)
Increase in all segments 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 nine months ended September 30, 2026 for all three segments was primarily attributable to the favorable impact of a weaker U.S. dollar.
27
Table of Contents
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.
The following tables present Adjusted EBIT by segment:
Favorable (Unfavorable)
Three Months Ended September 30,
2026 vs. 2025
2026
2025
$
%
Americas Welding:
Net sales
$
801,264
$
691,794
$
109,470
15.8
%
Inter-segment sales
25,959
30,058
(4,099)
(13.6)
%
Total Sales
$
827,223
$
721,852
105,371
14.6
%
Adjusted EBIT
(1) (4)
$
166,547
$
131,615
34,932
26.5
%
As a percent of total sales
(1)
20.1
%
18.2
%
1.9
%
International Welding:
Net sales
$
226,904
$
219,629
7,275
3.3
%
Inter-segment sales
6,502
9,830
(3,328)
(33.9)
%
Total Sales
$
233,406
$
229,459
3,947
1.7
%
Adjusted EBIT
(2) (5)
$
23,966
$
25,821
(1,855)
(7.2)
%
As a percent of total sales
(2)
10.3
%
11.3
%
(1.0)
%
The Harris Products Group:
Net sales
$
193,113
$
149,804
43,309
28.9
%
Inter-segment sales
3,977
3,441
536
15.6
%
Total Sales
$
197,090
$
153,245
43,845
28.6
%
Adjusted EBIT
(3) (6)
$
34,080
$
28,078
6,002
21.4
%
As a percent of total sales
(3)
17.3
%
18.3
%
(1.0)
%
Corporate / Eliminations:
Inter-segment sales
$
(36,438)
$
(43,329)
6,891
15.9
%
Adjusted EBIT
(7)
(4,596)
2,034
(6,630)
(326.0)
%
Consolidated:
Net sales
$
1,221,281
$
1,061,227
160,054
15.1
%
Net income
$
144,346
$
122,628
21,718
17.7
%
As a percent of total sales
11.8
%
11.6
%
0.2
%
Adjusted EBIT
(8)
$
219,997
$
187,548
32,449
17.3
%
As a percent of sales
18.0
%
17.7
%
0.3
%
(1)
Adjusted EBIT and Adjusted EBIT as a percent of sales increased for the three months ended September 30, 2026 as compared to September
30, 2025 primarily driven by the favorable impact of organic sales partially offset by rising input costs.
(2)
Adjusted EBIT and Adjusted EBIT as a percent of sales decreased
for the three months ended September
30
, 2026 as compared to September
30
, 2025 primarily driven by unfavorable impact of lower volumes and higher input costs, partially offset by the benefit of acquisitions.
(3)
Adjusted EBIT
increased for the three months ended September
30
, 2026 as compared to September
30
, 2025 primarily driven by the favorable impact of organic sales partially offset by higher input costs; Adjusted EBIT as a percent of sales decreased for the same period due to higher input costs.
(4)
The three months ended September
30
, 2026 and 2025 exclude Rationalization and asset impairment net charges of $1,612 and $4,150, respectively, as discussed in Note 6 to the consolidated financial statements.
28
Table of Contents
(5)
The three months ended September
30
, 2026 exclude Rationalization and asset impairment net charges of $6,224.
The three months ended September 30, 2025 exclude Rationalization and asset impairment net charges of $1,365 as discussed in Note 6 and the amortization of the step up in value of acquired inventories of $1,397.
(6)
The three months ended September
30
, 2026 and 2025 exclude Rationalization and asset impairment net charges of $17 and $316, respectively, as discussed in Note 6 to the consolidated financial statements.
(7)
The three months ended September
30
, 2026 and 2025 exclude transaction costs of $765 and $452, 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.
Favorable (Unfavorable)
Nine Months Ended September 30,
2026 vs. 2025
2026
2025
$
%
Americas Welding:
Net sales
$
2,281,927
$
2,041,631
$
240,296
11.8
%
Inter-segment sales
91,572
103,821
(12,249)
(11.8)
%
Total Sales
$
2,373,499
$
2,145,452
$
228,047
10.6
%
Adjusted EBIT
(1) (4)
$
452,110
$
393,728
$
58,382
14.8
%
As a percent of total sales
(1)
19.0
%
18.4
%
0.6
%
International Welding:
Net sales
$
697,231
$
671,514
$
25,717
3.8
%
Inter-segment sales
19,873
24,303
(4,430)
(18.2)
%
Total Sales
$
717,104
$
695,817
$
21,287
3.1
%
Adjusted EBIT
(2) (5)
$
73,223
$
79,383
$
(6,160)
(7.8)
%
As a percent of total sales
(2)
10.2
%
11.4
%
(1.2)
%
The Harris Products Group:
Net sales
$
583,220
$
441,143
$
142,077
32.2
%
Inter-segment sales
13,613
12,535
1,078
8.6
%
Total Sales
$
596,833
$
453,678
$
143,155
31.6
%
Adjusted EBIT
(3) (6)
$
117,142
$
84,291
$
32,851
39.0
%
As a percent of total sales
(3)
19.6
%
18.6
%
1.0
%
Corporate / Eliminations:
Inter-segment sales
$
(125,058)
$
(140,659)
$
15,601
11.1
%
Adjusted EBIT
(7)
(9,035)
(816)
(8,219)
(1,007.2)
%
Consolidated:
Net sales
$
3,562,378
$
3,154,288
$
408,090
12.9
%
Net income
$
439,247
$
384,511
$
54,736
14.2
%
As a percent of total sales
12.3
%
12.2
%
0.1
%
Adjusted EBIT
(8)
$
633,440
$
556,586
$
76,854
13.8
%
As a percent of sales
17.8
%
17.6
%
0.2
%
(1)
Adjusted EBIT and Adjusted EBIT as a percent of sales increased for the nine months ended September 30, 2026 as compared to September
30, 2025 driven by a favorable impact of organic sales, partially offset by rising input costs.
29
Table of Contents
(2)
Adjusted EBIT and Adjusted EBIT as a percent of sales decreased
for the nine months ended September
30
, 2026 as compared to September
30
, 2025 primarily driven by the unfavorable impact of lower volumes and higher input costs, partially offset by the benefit of acquisitions.
(3)
Adjusted EBIT and Adjusted EBIT as a percentage of sales
increased for the nine months ended September
30
, 2026 as compared to September
30
, 2025 primarily driven by
operating leverage from higher organic sales
.
(4)
The nine months ended September
30
, 2026 and 2025 exclude Rationalization and asset impairment net charges of $3,197 and $7,190, respectively, as discussed in Note 6 to the consolidated financial statements.
(5)
The nine months ended September
30
, 2026 exclude Rationalization and asset impairment net charges of $10,278.
The nine months ended September 30, 2025 exclude Rationalization and asset impairment net charges of $4,468 as discussed in Note 6 and the amortization of the step up in value of acquired inventories of $1,257.
(6)
The nine months ended September
30
, 2026 and 2025 exclude Rationalization and asset impairment net charges of $22 and $580, respectively, as discussed in Note 6 to the consolidated financial statements.
(7)
The nine months ended September
30
, 2026 and 2025 exclude transaction costs of $1,433 and $1,683, 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.
30
Table of Contents
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 September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Operating income as reported
$
211,376
$
176,657
$
618,178
$
533,719
Special items (pre-tax):
Rationalization and asset impairment net charges
(1)
7,853
5,831
13,497
12,238
Transaction costs
(2)
765
452
1,433
1,683
Amortization of step up in value of acquired inventories
(3)
—
1,622
—
1,482
Adjusted operating income
$
219,994
$
184,562
$
633,108
$
549,122
As a percentage of net sales
18.0
%
17.4
%
17.8
%
17.4
%
Net income as reported
$
144,346
$
122,628
$
439,247
$
384,511
Special items:
Rationalization and asset impairment net charges
(1)
7,853
5,831
13,497
12,238
Transaction costs
(2)
765
452
1,433
1,683
Amortization of step up in value of acquired inventories
(3)
—
1,622
—
1,482
Tax effect of Special items
(4)
(5)
10,669
6,685
9,134
4,772
Adjusted net income
163,633
137,218
463,311
404,686
Interest expense, net
11,346
13,648
37,241
38,394
Income taxes as reported
55,687
43,367
142,022
118,278
Tax effect of Special items
(4)
(5)
(10,669)
(6,685)
(9,134)
(4,772)
Adjusted EBIT
$
219,997
$
187,548
$
633,440
$
556,586
Effective tax rate as reported
27.8
%
26.1
%
24.4
%
23.5
%
Net special item tax impact
(6.2)
%
(5.0)
%
(2.1)
%
(1.6)
%
Adjusted effective tax rate
21.6
%
21.1
%
22.3
%
21.9
%
Diluted earnings per share as reported
$
2.63
$
2.21
$
7.97
$
6.86
Special items per share
0.35
0.26
0.44
0.36
Adjusted diluted earnings per share
$
2.98
$
2.47
$
8.41
$
7.22
(1)
Primarily related to restructuring activities as discussed in Note 6 to the consolidated financial statements.
(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)
During the third quarter of 2026, the Company determined that certain foreign earnings may be repatriated and recognized approximately $12,977 of related income tax expense, as discussed in Note 11. During the third quarter of 2025, the Company recognized tax expense of approximately $8,800, reflecting the cumulative impact of the OBBBA provisions.
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Table of Contents
(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.
Liquidity and Capital Resources
Overview
The Company’s primary sources of liquidity are operating cash flows and revolving credit facilities. As of September 30, 2026, the Company had $283,237 of cash and cash equivalents on hand and no outstanding borrowings under its $1,050,065 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:
Nine Months Ended September 30,
2026
2025
$ Change
Cash provided by operating activities
$
571,691
$
566,208
$
5,483
Cash used by investing activities
(105,828)
(214,275)
108,447
Capital expenditures
(111,819)
(84,028)
(27,791)
Acquisition of businesses, net of cash acquired
140
(136,655)
136,795
Cash used by financing activities
(495,904)
(425,394)
(70,510)
(Payments on) proceeds from short-term borrowings
(143,889)
77,678
(221,567)
Payments on long-term borrowings
—
(100,169)
100,169
Purchase of shares for treasury
(232,189)
(286,488)
54,299
Cash dividends paid to shareholders
(130,689)
(126,476)
(4,213)
Decrease in Cash and cash equivalents
(25,552)
(84,265)
58,713
As of September 30, 2026, the Company had cash of $283,237, of which $179,018 was held by international subsidiaries. During the third quarter 2026, the Company determined that certain foreign earnings may be repatriated and recognized approximately $12,977 of related income tax expense, as discussed in Note 11.
In October 2026, the Company paid a cash dividend of $0.79 per share, or $42,784, to shareholders of record on September 30, 2026.
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Table of Contents
The Company currently anticipates capital expenditures of $140,000 to $150,000 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 $50,065. As of September 30, 2026, the Company had total availability of $1,050,065 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
September 30, 2026
December 31, 2025
September 30, 2025
Average operating working capital to Net sales
(1)
16.6
%
17.9
%
18.6
%
Days sales in Inventories
110.7
116.4
127.1
Days sales in Accounts receivable
48.3
49.4
46.9
Average days in Trade accounts payable
59.0
53.4
60.8
(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.
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 September 30, 2026, there were 4.3 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.
33
Table of Contents
The following table presents the reconciliations of ROIC and Adjusted ROIC to net income:
\
Twelve Months Ended September 30,
2026
2025
Net income as reported
$
575,269
$
524,740
Plus: Interest expense (after-tax)
42,191
43,488
Less: Interest income (after-tax)
4,405
6,181
Net operating profit after taxes
$
613,055
$
562,047
Special items:
Rationalization and asset impairment net charges
19,458
16,776
Transaction costs
2,489
4,174
Pension settlement net charges (gains)
719
(174)
Amortization of step up in value of acquired inventories
2,482
3,034
Tax effect of Special items
(1)
9,539
2,117
Adjusted net operating profit after taxes
$
647,742
$
587,974
Invested Capital
September 30, 2026
September 30, 2025
Short-term debt
$
—
$
88,203
Long-term debt, less current portion
1,149,969
1,150,315
Total debt
1,149,969
1,238,518
Total equity
1,554,721
1,414,633
Invested capital
$
2,704,690
$
2,653,151
Return on invested capital as reported
22.7
%
21.2
%
Adjusted return on invested capital
23.9
%
22.2
%
(1)
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
.
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
34
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 September 30, 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 September 30, 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 September 30, 2026, the Company was a co-defendant in cases alleging asbestos induced illness involving claims by approximately 367 plaintiffs, which is a net decrease of 334 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: 58,032 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 1,026 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.
35
Table of Contents
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEED
S
Issuer purchases of its common shares during the third 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)
July 1 - 31, 2026
48,428
(1)
$
254.10
47,616
4,575,998
August 1 - 31, 2026
68,428
(1)
280.87
67,713
4,508,285
September 1 - 30, 2026
256,337
(1)
264.77
255,507
4,252,778
Total
373,193
$
266.34
370,836
(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 5.7 million shares at a total cost of $1,137 million for a weighted average cost of $197.78 per share through September 30, 2026.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the quarter ended September 30, 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.
36
Table of Contents
ITEM 6. EXHIBITS
(a)
Exhibits
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
37
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)
October 27, 2026
38
----- leco-ex31d1.htm -----
EX-31.1
2
leco-ex31d1.htm
EX-31.1
Exhibit 31.1
CERTIFICATION
I, Steven B. Hedlund, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Lincoln Electric Holdings, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Pril 2
Date: October 27, 2026
/s/ Steven B. Hedlund
Steven B. Hedlund
Chairman and Chief Executive Officer
----- leco-ex31d2.htm -----
EX-31.2
3
leco-ex31d2.htm
EX-31.2
Exhibit 31.2
CERTIFICATION
I, Gabriel Bruno, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Lincoln Electric Holdings, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: October 27, 2026
/s/ Gabriel Bruno
Gabriel Bruno
Executive Vice President, Chief Financial
Officer and Treasurer
----- leco-ex32d1.htm -----
EX-32.1
4
leco-ex32d1.htm
EX-32.1
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Lincoln Electric Holdings, Inc. (the "Company") for the three months ended September 30, 2026, as filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to such officer's knowledge:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
/
Date: October 27, 2026
/s/ Steven B. Hedlund
Steven B. Hedlund
Chairman and Chief Executive Officer
/s/ Gabriel Bruno
Gabriel Bruno
Executive Vice President, Chief Financial
Officer and Treasurer
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
September 30, 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 September 30, 2026 was
54,156,967
.
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)
8
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
24
Item 3. Quantitative and Qualitative Disclosures About Market Risk
35
Item 4. Controls and Procedures
35
PART II. OTHER INFORMATION
35
Item 1. Legal Proceedings
35
Item 1A. Risk Factors
35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
36
Item 4. Mine Safety Disclosures
36
Item 5. Other Information
36
Item 6. Exhibits
37
Signatures
38
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
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
Net sales (Note 2)
$
1,221,281
$
1,061,227
$
3,562,378
$
3,154,288
Cost of goods sold
796,250
671,916
2,289,219
1,993,982
Gross profit
425,031
389,311
1,273,159
1,160,306
Selling, general & administrative expenses
205,802
206,823
641,484
614,349
Rationalization and asset impairment net charges (Note 6)
7,853
5,831
13,497
12,238
Operating income
211,376
176,657
618,178
533,719
Interest expense, net
11,346
13,648
37,241
38,394
Other income
3
2,986
332
7,464
Income before income taxes
200,033
165,995
581,269
502,789
Income taxes (Note 11)
55,687
43,367
142,022
118,278
Net income
$
144,346
$
122,628
$
439,247
$
384,511
Basic earnings per share (Note 3)
$
2.65
$
2.23
$
8.04
$
6.92
Diluted earnings per share (Note 3)
$
2.63
$
2.21
$
7.97
$
6.86
Cash dividends declared per share
$
0.79
$
0.75
$
2.37
$
2.25
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 September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Net income
$
144,346
$
122,628
$
439,247
$
384,511
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges
(
1,627
)
83
(
3,126
)
1,085
Defined benefit pension plan activity
56
(
685
)
13
(
2,007
)
Currency translation adjustment
(
7,373
)
(
651
)
(
13,396
)
89,147
Other comprehensive (loss) income:
(
8,944
)
(
1,253
)
(
16,509
)
88,225
Comprehensive income
$
135,402
$
121,375
$
422,738
$
472,736
See notes to these consolidated financial statements.
4
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, 2026
December 31, 2025
(UNAUDITED)
(NOTE 1)
ASSETS
Current Assets
Cash and cash equivalents
$
283,237
$
308,789
Accounts receivable (less allowance for doubtful accounts of $
7,406
in 2026; $
11,326
in 2025)
603,307
538,791
Inventories (Note 8)
699,380
633,364
Other current assets
240,263
258,568
Total Current Assets
1,826,187
1,739,512
Property, plant and equipment (less accumulated depreciation of $
974,738
in 2026; $
942,806
in 2025)
747,619
702,762
Goodwill
885,966
886,686
Other assets
433,858
448,617
TOTAL ASSETS
$
3,893,630
$
3,777,577
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt (Note 10)
$
—
$
143,780
Trade accounts payable
463,738
364,934
Accrued employee compensation and benefits
184,909
116,158
Other current liabilities
307,066
331,819
Total Current Liabilities
955,713
956,691
Long-term debt, less current portion (Note 10)
1,149,969
1,150,228
Other liabilities
233,227
200,864
Total Liabilities
2,338,909
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
54,156,967
shares in 2026 and
54,845,950
in 2025
9,858
9,858
Additional paid-in capital
625,270
601,566
Retained earnings
4,650,206
4,342,080
Accumulated other comprehensive loss
(
222,440
)
(
205,931
)
Treasury shares, at cost -
44,424,467
shares in 2026 and
43,735,484
shares in 2025
(
3,508,173
)
(
3,277,779
)
Total Equity
1,554,721
1,469,794
TOTAL LIABILITIES AND TOTAL EQUITY
$
3,893,630
$
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
Net income
158,519
158,519
Defined benefit pension plan activity, net of tax
13
13
Unrealized loss on derivatives designated and qualifying as cash flow hedges, net of tax
(
176
)
(
176
)
Currency translation adjustment, net of tax
436
436
Cash dividends declared – $
0.79
per share
(
43,591
)
(
43,591
)
Stock-based compensation activity
6
4,812
62
4,874
Purchase of shares for treasury
(
287
)
(
76,121
)
(
76,121
)
Other
676
(
1,710
)
(
1,034
)
Balance at June 30, 2026
54,506
$
9,858
$
617,879
$
4,548,978
$
(
213,496
)
$
(
3,409,039
)
$
1,554,180
Net income
144,346
144,346
Defined benefit pension plan activity, net of tax
56
56
Unrealized loss on derivatives designated and qualifying as cash flow hedges, net of tax
(
1,627
)
(
1,627
)
Currency translation adjustment, net of tax
(
7,373
)
(
7,373
)
Cash dividends declared – $
0.79
per share
(
43,057
)
(
43,057
)
Stock-based compensation activity
24
7,310
264
7,574
Purchase of shares for treasury
(
373
)
(
99,398
)
(
99,398
)
Other
81
(
61
)
20
Balance at September 30, 2026
54,157
$
9,858
$
625,270
$
4,650,206
$
(
222,440
)
$
(
3,508,173
)
$
1,554,721
6
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, 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
Net income
143,396
143,396
Defined benefit pension plan activity, net of tax
(
37
)
(
37
)
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax
173
173
Currency translation adjustment, net of tax
60,119
60,119
Cash dividends declared – $
0.75
per share
(
41,080
)
(
41,080
)
Stock-based compensation activity
8
3,985
80
4,065
Purchase of shares for treasury
(
648
)
(
127,130
)
(
127,130
)
Other
999
(
1,062
)
(
63
)
Balance at June 30, 2025
55,186
$
9,858
$
586,234
$
4,168,467
$
(
210,657
)
$
(
3,174,289
)
$
1,379,613
Net income
122,628
122,628
Defined benefit pension plan activity, net of tax
(
685
)
(
685
)
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax
83
83
Currency translation adjustment, net of tax
(
651
)
(
651
)
Cash dividends declared – $
0.75
per share
(
41,449
)
(
41,449
)
Stock-based compensation activity
66
6,661
639
7,300
Purchase of shares for treasury
(
226
)
(
52,664
)
(
52,664
)
Other
2,749
(
2,291
)
458
Balance at September 30, 2025
55,026
$
9,858
$
595,644
$
4,247,355
$
(
211,910
)
$
(
3,226,314
)
$
1,414,633
7
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
Nine Months Ended September 30,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
439,247
$
384,511
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization
78,409
72,990
Deferred income taxes
32,516
71,395
Stock-based compensation
19,724
15,910
Other, net
(
3,994
)
(
1,908
)
Changes in operating assets and liabilities, net of effects from acquisitions:
(Increase) decrease in accounts receivable
(
66,620
)
9,430
Increase in inventories
(
71,007
)
(
87,222
)
Decrease (increase) in other current assets
18,242
(
66,050
)
Increase in trade accounts payable
100,106
90,555
Increase in other current liabilities
36,242
78,458
Net change in other assets and liabilities
(
11,174
)
(
1,861
)
NET CASH PROVIDED BY OPERATING ACTIVITIES
571,691
566,208
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(
111,819
)
(
84,028
)
Acquisition of businesses, net of cash acquired
140
(
136,655
)
Proceeds from sale of property, plant and equipment
5,851
6,408
NET CASH USED BY INVESTING ACTIVITIES
(
105,828
)
(
214,275
)
CASH FLOWS FROM FINANCING ACTIVITIES
(Payments on) proceeds from short-term borrowings
(
143,889
)
77,678
Payments on long-term borrowings
—
(
100,169
)
Proceeds from exercise of stock options
10,863
10,061
Purchase of shares for treasury
(
232,189
)
(
286,488
)
Cash dividends paid to shareholders
(
130,689
)
(
126,476
)
NET CASH USED BY FINANCING ACTIVITIES
(
495,904
)
(
425,394
)
Effect of exchange rate changes on Cash and cash equivalents
4,489
(
10,804
)
DECREASE IN CASH AND CASH EQUIVALENTS
(
25,552
)
(
84,265
)
Cash and cash equivalents at beginning of period
308,789
377,262
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
283,237
$
292,997
See notes to these consolidated financial statements.
8
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 nine months ended September 30, 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.
9
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 fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is prohibited.
NOTE 2 — REVENUE RECOGNITION
The following table presents the Company’s Net sales disaggregated by product line:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Consumables
$
683,100
$
590,873
$
2,007,118
$
1,706,122
Equipment
305,908
271,692
883,646
817,810
Automation
232,273
198,662
671,614
630,356
Net sales
$
1,221,281
$
1,061,227
$
3,562,378
$
3,154,288
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 September 30, 2026, the Company recorded $
54,762
related to advance customer payments and $
51,341
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.
10
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
At September 30, 2026 and December 31, 2025, the Company recorded $
78,983
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 September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Numerator:
Net income
$
144,346
$
122,628
$
439,247
$
384,511
Denominator (shares in 000's):
Basic weighted average shares outstanding
54,408
55,097
54,630
55,567
Effect of dilutive securities - Stock options and awards
465
477
468
453
Diluted weighted average shares outstanding
54,873
55,574
55,098
56,020
Basic earnings per share
$
2.65
$
2.23
$
8.04
$
6.92
Diluted earnings per share
$
2.63
$
2.21
$
7.97
$
6.86
For the three months ended September 30, 2026 and 2025, common shares subject to equity-based awards of
9
and
19,416
, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. For the nine months ended September 30, 2026 and 2025, common shares subject to equity-based awards of
2,471
and
2,089
, 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
$
131,154
, net of cash acquired and certain debt-like items. Alloy Steel
supplies proprietary technology, engineering services and digital monitoring to the mining sector.
The Company recognized acquisition costs of
$
553
and $
909
during the three and nine months ended September 30, 2026
, respectively, and
$
452
and
$
1,683
during the three and nine months ended September 30, 2025, respectively. Acquisition costs 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.
11
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
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.
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.
12
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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 September 30, 2026
Net sales
$
801,264
$
226,904
$
193,113
$
1,221,281
Inter-segment sales
25,959
6,502
3,977
36,438
827,223
233,406
197,090
1,257,719
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales
(
36,438
)
Net sales
$
1,221,281
Cost of goods sold
516,658
166,357
149,086
Other segment expenses
(1) (3)
145,630
49,307
13,941
Addback: Special items charge
(1)
(
1,612
)
(
6,224
)
(
17
)
Segment Adjusted EBIT
$
166,547
$
23,966
$
34,080
$
224,593
Other Segment Information
Capital expenditures
$
(
31,991
)
$
(
5,825
)
$
(
3,403
)
$
(
41,219
)
Depreciation and amortization
18,111
6,922
2,527
27,560
Three Months Ended September 30, 2025
Net sales
$
691,794
$
219,629
$
149,804
$
1,061,227
Inter-segment sales
30,058
9,830
3,441
43,329
721,852
229,459
153,245
1,104,556
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales
(
43,329
)
Net sales
$
1,061,227
Cost of goods sold
(2)
438,400
164,747
111,126
Other segment expenses
(2) (3)
156,212
41,653
14,357
Addback: Special items charge
(2)
(
4,375
)
(
2,762
)
(
316
)
Segment Adjusted EBIT
$
131,615
$
25,821
$
28,078
$
185,514
Other Segment Information
Capital expenditures
$
(
27,037
)
$
(
3,697
)
$
(
902
)
$
(
31,636
)
Depreciation and amortization
17,176
6,119
2,576
25,871
(1)
In the three months ended September 30, 2026, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of
$
1,612
,
$
6,224
, and
$
17
in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6.
(2)
In the three months ended September 30, 2025, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of
$
4,150
,
$
1,365
, and
$
316
in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6. Special items within Cost of goods sold primarily include
an amortization of step up in value of acquired inventories of
$
1,397
in
International Welding.
(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.
13
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The Harris
Americas
International
Products
Welding
Welding
Group
Total
Nine Months Ended September 30, 2026
Net sales
$
2,281,927
$
697,231
$
583,220
$
3,562,378
Inter-segment sales
91,572
19,873
13,613
125,058
2,373,499
717,104
596,833
3,687,436
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales
(
125,058
)
Net sales
$
3,562,378
Cost of goods sold
1,468,025
509,230
435,624
Other segment expenses
(1) (3)
456,561
144,929
44,089
Addback: Special items charge
(1)
(
3,197
)
(
10,278
)
(
22
)
Segment Adjusted EBIT
$
452,110
$
73,223
$
117,142
$
642,475
Other Segment Information
Capital expenditures
$
(
80,932
)
$
(
21,510
)
$
(
9,377
)
$
(
111,819
)
Depreciation and amortization
53,753
20,275
7,766
81,794
Nine Months Ended September 30, 2025
Net sales
$
2,041,631
$
671,514
$
441,143
$
3,154,288
Inter-segment sales
103,821
24,303
12,535
140,659
2,145,452
695,817
453,678
3,294,947
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales
(
140,659
)
Net sales
$
3,154,288
Cost of goods sold
(2)
1,305,298
498,475
327,074
Other segment expenses
(2) (3)
453,841
123,684
42,893
Addback: Special items charge
(2)
(
7,415
)
(
5,725
)
(
580
)
Segment Adjusted EBIT
$
393,728
$
79,383
$
84,291
$
557,402
Other Segment Information
Capital expenditures
$
(
68,777
)
$
(
11,911
)
$
(
3,340
)
$
(
84,028
)
Depreciation and amortization
50,429
16,982
7,837
75,248
(1)
In the nine months ended September 30, 2026, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of
$
3,197
,
$
10,278
, and
$
22
in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6.
(2)
In the nine months ended September 30, 2025, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of
$
7,190
,
$
4,468
, and
$
580
in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6. Special items within Cost of goods sold primarily include
an amortization of step up in value of acquired inventories of
$
1,257
in
International Welding.
(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.
14
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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 September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Reconciliation of Segment Adjusted EBIT to Consolidated Income before income taxes
Segment Adjusted EBIT
$
224,593
$
185,514
$
642,475
$
557,402
Addback: Segment special items charge
(
7,853
)
(
7,453
)
(
13,497
)
(
13,720
)
Corporate special items charge
(1)
(
765
)
(
452
)
(
1,433
)
(
1,683
)
Elimination of inter-segment profit
(
587
)
(
972
)
(
1,398
)
(
3,794
)
Unallocated corporate expenses, net
(
4,009
)
3,006
(
7,637
)
2,978
Interest income
1,289
1,501
4,476
5,418
Interest expense
(
12,635
)
(
15,149
)
(
41,717
)
(
43,812
)
Consolidated Income before income taxes
$
200,033
$
165,995
$
581,269
$
502,789
Reconciliation of Other Segment Information to Consolidated Information
Capital expenditures
Segment totals
$
(
41,219
)
$
(
31,636
)
$
(
111,819
)
$
(
84,028
)
Adjustments
—
—
—
—
Consolidated totals
$
(
41,219
)
$
(
31,636
)
$
(
111,819
)
$
(
84,028
)
Depreciation and amortization
Segment totals
$
27,560
$
25,871
$
81,794
$
75,248
Adjustments
(
1,129
)
(
1,127
)
(
3,385
)
(
2,258
)
Consolidated totals
$
26,431
$
24,744
$
78,409
$
72,990
(1)
Corporate special items primarily include transaction costs.
September 30, 2026
December 31, 2025
Reconciliation of Segment Assets to Consolidated Assets
Americas Welding
$
2,629,479
$
2,464,376
International Welding
1,162,497
1,244,117
The Harris Products Group
477,562
431,259
Total Segment Assets
4,269,538
4,139,752
Corporate Assets
39,375
41,033
LIFO reserve not allocated to segments
(
145,501
)
(
138,589
)
Eliminations
(
269,782
)
(
264,619
)
Total Consolidated Assets
$
3,893,630
$
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:
Nine Months Ended September 30,
2026
2025
Americas Welding
$
3,197
$
7,190
International Welding
10,278
4,468
The Harris Products Group
22
580
Total
$
13,497
$
12,238
At September 30, 2026 and December 31, 2025, rationalization liabilities of $
6,740
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.
15
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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 nine months ended September 30, 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
(
1,884
)
(
9,929
)
(
449
)
(
12,262
)
Charged to expense
2,043
9,852
22
11,917
Balance at September 30, 2026
$
1,103
$
5,636
$
1
$
6,740
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 September 30, 2026
Unrealized gain
(loss) on derivatives
designated and
Defined benefit
Currency
qualifying as cash
pension plan
translation
flow hedges
activity
adjustment
Total
Balance at June 30, 2026
$
16,188
$
(
1,105
)
$
(
228,579
)
$
(
213,496
)
Other comprehensive income before reclassification
(
758
)
—
(
7,373
)
(
8,131
)
Amounts reclassified from AOCI
(
869
)
56
—
(
813
)
Net current-period other comprehensive (loss) income
(
1,627
)
56
(
7,373
)
(
8,944
)
Balance at September 30, 2026
$
14,561
$
(
1,049
)
$
(
235,952
)
$
(
222,440
)
Three Months Ended September 30, 2025
Unrealized gain
(loss) on derivatives
designated and
Defined benefit
Currency
qualifying as cash
pension plan
translation
flow hedges
activity
adjustment
Total
Balance at June 30, 2025
$
18,257
$
(
2,370
)
$
(
226,544
)
$
(
210,657
)
Other comprehensive income (loss) before reclassification
1,300
—
(
651
)
649
Amounts reclassified from AOCI
(
1,217
)
(
685
)
—
(
1,902
)
Net current-period other comprehensive income (loss)
83
(
685
)
(
651
)
(
1,253
)
Balance at September 30, 2025
$
18,340
$
(
3,055
)
$
(
227,195
)
$
(
211,910
)
16
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
Nine Months Ended September 30, 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
1,630
—
(
13,396
)
(
11,766
)
Amounts reclassified from AOCI
(
4,756
)
13
—
(
4,743
)
Net current-period other comprehensive (loss) income
(
3,126
)
13
(
13,396
)
(
16,509
)
Balance at September 30, 2026
$
14,561
$
(
1,049
)
$
(
235,952
)
$
(
222,440
)
Nine Months Ended September 30, 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
3,405
—
89,147
92,552
Amounts reclassified from AOCI
(
2,320
)
(
2,007
)
—
(
4,327
)
Net current-period other comprehensive income (loss)
1,085
(
2,007
)
89,147
88,225
Balance at September 30, 2025
$
18,340
$
(
3,055
)
$
(
227,195
)
$
(
211,910
)
NOTE 8 — INVENTORIES
Inventories in the Condensed Consolidated Balance Sheets are comprised of the following components:
September 30, 2026
December 31, 2025
Raw materials
$
157,837
$
164,440
Work-in-process
171,968
124,351
Finished goods
369,575
344,573
Total
$
699,380
$
633,364
At September 30, 2026 and December 31, 2025, approximately
37
% and
38
%, respectively, of total inventories were valued using the last-in, first-out ("LIFO") method. The excess of current cost over LIFO cost was $
145,501
and $
138,589
at September 30, 2026 and December 31, 2025, respectively.
17
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
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
September 30, 2026
December 31, 2025
Right-of-use assets
Other assets
$
57,664
$
52,989
Current liabilities
Other current liabilities
$
14,479
$
13,460
Noncurrent liabilities
Other liabilities
43,502
40,061
Total lease liabilities
$
57,981
$
53,521
The total future minimum lease payments for noncancelable operating leases were as follows:
September 30, 2026
2026
$
5,859
2027
15,876
2028
14,004
2029
9,406
2030
5,212
After 2030
16,482
Total lease payments
$
66,839
Less: Imputed interest
8,858
Operating lease liabilities
$
57,981
As of September 30, 2026 the weighted average remaining lease term is
6.1
years and the weighted average discount rate used to determine the operating lease liability is
3.9
%.
Other information related to leases was as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
Lease expense
(1)
$
5,726
$
7,964
$
20,467
$
20,298
Cash paid for amounts included in the measurement of lease liabilities
(2)
4,427
4,340
13,406
10,882
Right-of-use assets obtained in exchange for operating lease liabilities
9,870
6,981
15,940
11,634
(1)
Amounts are included in Costs of goods sold and Selling, general & 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.
18
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LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
NOTE 10 — DEBT
At September 30, 2026 and December 31, 2025, debt consisted of the following:
September 30, 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
2,169
2,678
Less current portion
—
—
Less debt issuance costs
2,200
2,460
Long-term debt, less current portion
1,149,969
1,150,228
Short-term debt
Amounts due to banks
Variable
(2)
—
143,780
Current portion long-term debt
—
—
Total short-term debt
—
143,780
Total debt
$
1,149,969
$
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 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.
19
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 September 30, 2026, the Company’s total weighted average effective interest rate and remaining weighted average tenure of the senior unsecured notes was
4.16
%, including the impact from terminated swap agreements, and
7.9
years, respectively. The senior unsecured notes contain certain affirmative and negative covenants.
As of September 30, 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 September 30, 2026 the Company was in compliance with all of its covenants
and had
no
outstanding borrowings under the revolving credit facility.
The Company has other lines of credit and debt agreements totaling $
50,065
.
As of September 30, 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 September 30, 2026 and December 31, 2025, the fair value of long-term debt, including the current portion, was approximately $
1,028,632
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 $
1,149,969
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 evaluates the extent to which earnings of its foreign subsidiaries are intended to be permanently reinvested outside the United States. As a result of its ongoing assessment of global cash strategy, the Company determined that a portion of previously indefinitely reinvested foreign earnings may be repatriated, resulting in a charge of approximately $
12,977
during the third quarter 2026. During the third quarter 2025, the Company recognized tax expense of approximately $
8,800
related to the cumulative impact of the One Big Beautiful Bill Act (“OBBBA”).
The Company recognized $
142,022
of tax expense on pre-tax income of $
581,269
, resulting in an effective income tax rate of
24.4
% for the nine months ended September 30, 2026. The effective income tax rate was
23.5
% for the nine months ended September 30, 2025. The effective tax rate was higher for the nine months ended September 30, 2026, as compared with the same period in 2025, primarily due to the mix of earnings and timing of discrete tax items and the change in the Company’s indefinite reinvestment assertion in foreign earnings as discussed above.
20
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
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 and nine months ended September 30, 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 was considered significant at September 30, 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 $
85,256
and $
88,555
at September 30, 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 $
279,192
and $
337,659
at September 30, 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 $
484,966
and $
370,668
at September 30, 2026 and December 31, 2025, respectively.
Fair values of derivative instruments in the Company’s Condensed Consolidated Balance Sheets consisted of the following:
September 30, 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
$
1,079
$
1,132
$
—
$
—
$
2,149
$
289
$
—
$
—
Net investment contracts
6,338
338
—
—
102
12,529
—
—
Not designated as hedging instruments:
Foreign exchange contracts
1,993
3,491
—
—
582
470
—
—
Total derivatives
$
9,410
$
4,961
$
—
$
—
$
2,833
$
13,288
$
—
$
—
21
Table of Contents
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts
The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following:
Three Months Ended
Nine Months Ended
September 30,
September 30,
Derivatives by hedge designation
Classification of (loss) gain
2026
2025
2026
2025
Not designated as hedges:
Foreign exchange contracts
Selling, general & administrative expenses
$
(
3,350
)
$
113
$
(
5,064
)
$
22,071
The effects of designated hedges on AOCI consisted of the following:
Total (loss) gain recognized in AOCI, net of tax
September 30, 2026
December 31, 2025
Foreign exchange contracts
$
(
106
)
$
1,396
Forward starting swap agreements
14,668
16,291
Net investment contracts
(
233
)
(
5,721
)
The Company expects a charge of $
106
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:
Three Months Ended
Nine Months Ended
Gain (loss) recognized in the
September 30,
September 30,
Derivative type
Consolidated Statements of Income:
2026
2025
2026
2025
Foreign exchange contracts
Sales
$
599
$
1,387
$
3,112
$
1,052
Cost of goods sold
176
(
219
)
1,867
324
Forward starting swap agreements
Interest expense, net
689
689
2,755
2,066
NOTE 13 — FAIR VALUE
The following table provides a summary of assets and liabilities as of September 30, 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
September 30, 2026
(Level 1)
(Level 2)
Inputs (Level 3)
Assets:
Foreign exchange contracts
$
3,072
$
—
$
3,072
$
—
Net investment contracts
6,338
—
6,338
—
Pension surplus
2,751
2,751
—
—
Total assets
$
12,161
$
2,751
$
9,410
$
—
Liabilities:
Foreign exchange contracts
$
4,623
$
—
$
4,623
$
—
Net investment contracts
338
—
338
—
Deferred compensation
28,173
—
28,173
—
Total liabilities
$
33,134
$
—
$
33,134
$
—
22
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 September 30, 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 September 30, 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 September 30, 2026 and December 31, 2025, Trade accounts payable included $
31,695
and $
25,709
, respectively, payable to suppliers that have elected to participate in the supplier financing program.
(1)
23
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.
24
Table of Contents
Results of Operations
The following tables show the Company’s results of operations:
Three Months Ended September 30,
Favorable (Unfavorable)
2026
2025
2026 vs. 2025
Amount
% of Sales
Amount
% of Sales
$
%
Net sales
$
1,221,281
$
1,061,227
$
160,054
15.1
%
Cost of goods sold
796,250
671,916
(124,334)
(18.5)
%
Gross profit
425,031
34.8
%
389,311
36.7
%
35,720
9.2
%
Selling, general & administrative expenses
205,802
16.9
%
206,823
19.5
%
1,021
0.5
%
Rationalization and asset impairment net charges
7,853
0.6
%
5,831
0.5
%
(2,022)
(34.7)
%
Operating income
211,376
17.3
%
176,657
16.6
%
34,719
19.7
%
Interest expense, net
11,346
13,648
2,302
16.9
%
Other income
3
2,986
(2,983)
(99.9)
%
Income before income taxes
200,033
16.4
%
165,995
15.6
%
34,038
20.5
%
Income taxes
55,687
43,367
(12,320)
(28.4)
%
Effective tax rate
27.8
%
26.1
%
(1.7)
%
Net income
$
144,346
11.8
%
$
122,628
11.6
%
$
21,718
17.7
%
Diluted earnings per share
$
2.63
$
2.21
$
0.42
19.0
%
Nine Months Ended September 30,
Favorable (Unfavorable)
2026
2025
2026 vs. 2025
Amount
% of Sales
Amount
% of Sales
$
%
Net sales
$
3,562,378
$
3,154,288
$
408,090
12.9
%
Cost of goods sold
2,289,219
1,993,982
(295,237)
(14.8)
%
Gross profit
1,273,159
35.7
%
1,160,306
36.8
%
112,853
9.7
%
Selling, general & administrative expenses
641,484
18.0
%
614,349
19.5
%
(27,135)
(4.4)
%
Rationalization and asset impairment net charges
13,497
0.4
%
12,238
0.4
%
(1,259)
(10.3)
%
Operating income
618,178
17.4
%
533,719
16.9
%
84,459
15.8
%
Interest expense, net
37,241
38,394
1,153
3.0
%
Other income
332
7,464
(7,132)
(95.6)
%
Income before income taxes
581,269
16.3
%
502,789
15.9
%
78,480
15.6
%
Income taxes
142,022
118,278
(23,744)
(20.1)
%
Effective tax rate
24.4
%
23.5
%
(0.9)
%
Net income
$
439,247
12.3
%
$
384,511
12.2
%
$
54,736
14.2
%
Diluted earnings per share
$
7.97
$
6.86
$
1.11
16.2
%
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:
Three Months Ended September 30,
Change in Net Sales due to:
Net Sales
Foreign
Net Sales
2025
Volume
Price
Acquisitions
Exchange
2026
Lincoln Electric Holdings, Inc.
$
1,061,227
$
93,010
$
60,146
$
5,071
$
1,827
$
1,221,281
% Change
Lincoln Electric Holdings, Inc.
8.8
%
5.7
%
0.5
%
0.1
%
15.1
%
Nine Months Ended September 30,
Change in Net Sales due to:
Net Sales
Foreign
Net Sales
2025
Volume
Price
Acquisitions
Exchange
2026
Lincoln Electric Holdings, Inc.
$
3,154,288
$
93,159
$
248,615
$
37,058
$
29,258
$
3,562,378
% Change
Lincoln Electric Holdings, Inc.
3.0
%
7.9
%
1.2
%
0.8
%
12.9
%
Net sales increased for the three and nine months ended September 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 and nine months ended September 30, 2026 is primarily driven by higher volumes and an increase in pricing due to higher input costs.
Gross Profit:
Gross profit as a percentage of sales decreased 1.9% and 1.1% for the three and nine months ended September 30, 2026, respectively, as compared to the same 2025 periods, driven by
higher input costs. The three and nine months ended September 30, 2026 includes last-in, first-out (“LIFO”) charges of $1,888 and $6,912, respectively, which are primarily due to rising input costs. This compares with charges of $4,804 and $15,088, respectively, in the comparable 2025 periods.
Selling, General & Administrative Expenses:
Selling, general & administrative expenses increased in the nine months ended September 30, 2026 as compared to the same 2025 period, 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 operating leverage from increased organic sales.
Operating Income:
Operating income as a percentage of sales was 17.3% for the three months ended September 30, 2026 as compared to 16.6% in the prior year period. Excluding special items, Operating income as a percentage of sales was 18.0% for the three months ended September 30, 2026 as compared with 17.4% in the prior year period. Operating income as a percentage of sales was 17.4% for the nine months ended September 30, 2026 as compared to 16.9% in the prior year period. Excluding special items, Operating income as a percentage of sales was 17.8% in the nine months ended September 30, 2026 as compared with 17.4% in the prior year period. Refer to explanations above for additional details. Also refer to Non-GAAP Financial Measures for a reconciliation of Adjusted operating income.
26
Table of Contents
Income Taxes:
The effective tax rate was higher for the three and nine months ended September 30, 2026 as compared to the same 2025 periods, primarily due to the mix of earnings, the timing of discrete tax items, and the impact of the change in the Company's indefinite reinvestment assertion for certain foreign earnings, as discussed in Note 11. The effective tax rate for the three months ended September 30, 2025 included the impact of the One Big Beautiful Bill Act (“OBBBA”).
Segment Results
The following tables present components of Net sales by segment:
Three Months Ended September 30,
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
$
691,794
$
91,589
$
16,390
$
—
$
1,491
$
801,264
International Welding
219,629
(3,039)
5,287
5,071
(44)
226,904
The Harris Products Group
149,804
4,460
38,469
—
380
193,113
% Change
Americas Welding
13.2
%
2.4
%
—
0.2
%
15.8
%
International Welding
(1.4)
%
2.4
%
2.3
%
—
3.3
%
The Harris Products Group
3.0
%
25.7
%
—
0.2
%
28.9
%
Nine Months Ended September 30,
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
$
2,041,631
$
138,658
$
91,550
$
—
$
10,088
$
2,281,927
International Welding
671,514
(35,601)
9,360
37,058
14,900
697,231
The Harris Products Group
441,143
(9,898)
147,705
—
4,270
583,220
% Change
Americas Welding
6.8
%
4.5
%
—
0.5
%
11.8
%
International Welding
(5.3)
%
1.4
%
5.5
%
2.2
%
3.8
%
The Harris Products Group
(2.2)
%
33.5
%
—
0.9
%
32.2
%
(1)
Increase for the three and nine months ended September 30, 2026 in Americas Welding is primarily due to improved industrial demand and higher volumes across all three product lines. Decrease for the three and nine months ended September 30, 2026 in International Welding is primarily due to slow industrial activity in Europe and the Middle East conflict. Increase for the three months ended September 30, 2026 for The Harris Products Group primarily driven by improved industrial demand. Decrease for the nine months ended September 30, 2026 for The Harris Products Group due to a challenging prior year comparison resulting from expanded market presence in retail.
(2)
Increase in all segments 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 nine months ended September 30, 2026 for all three segments was primarily attributable to the favorable impact of a weaker U.S. dollar.
27
Table of Contents
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.
The following tables present Adjusted EBIT by segment:
Favorable (Unfavorable)
Three Months Ended September 30,
2026 vs. 2025
2026
2025
$
%
Americas Welding:
Net sales
$
801,264
$
691,794
$
109,470
15.8
%
Inter-segment sales
25,959
30,058
(4,099)
(13.6)
%
Total Sales
$
827,223
$
721,852
105,371
14.6
%
Adjusted EBIT
(1) (4)
$
166,547
$
131,615
34,932
26.5
%
As a percent of total sales
(1)
20.1
%
18.2
%
1.9
%
International Welding:
Net sales
$
226,904
$
219,629
7,275
3.3
%
Inter-segment sales
6,502
9,830
(3,328)
(33.9)
%
Total Sales
$
233,406
$
229,459
3,947
1.7
%
Adjusted EBIT
(2) (5)
$
23,966
$
25,821
(1,855)
(7.2)
%
As a percent of total sales
(2)
10.3
%
11.3
%
(1.0)
%
The Harris Products Group:
Net sales
$
193,113
$
149,804
43,309
28.9
%
Inter-segment sales
3,977
3,441
536
15.6
%
Total Sales
$
197,090
$
153,245
43,845
28.6
%
Adjusted EBIT
(3) (6)
$
34,080
$
28,078
6,002
21.4
%
As a percent of total sales
(3)
17.3
%
18.3
%
(1.0)
%
Corporate / Eliminations:
Inter-segment sales
$
(36,438)
$
(43,329)
6,891
15.9
%
Adjusted EBIT
(7)
(4,596)
2,034
(6,630)
(326.0)
%
Consolidated:
Net sales
$
1,221,281
$
1,061,227
160,054
15.1
%
Net income
$
144,346
$
122,628
21,718
17.7
%
As a percent of total sales
11.8
%
11.6
%
0.2
%
Adjusted EBIT
(8)
$
219,997
$
187,548
32,449
17.3
%
As a percent of sales
18.0
%
17.7
%
0.3
%
(1)
Adjusted EBIT and Adjusted EBIT as a percent of sales increased for the three months ended September 30, 2026 as compared to September
30, 2025 primarily driven by the favorable impact of organic sales partially offset by rising input costs.
(2)
Adjusted EBIT and Adjusted EBIT as a percent of sales decreased
for the three months ended September
30
, 2026 as compared to September
30
, 2025 primarily driven by unfavorable impact of lower volumes and higher input costs, partially offset by the benefit of acquisitions.
(3)
Adjusted EBIT
increased for the three months ended September
30
, 2026 as compared to September
30
, 2025 primarily driven by the favorable impact of organic sales partially offset by higher input costs; Adjusted EBIT as a percent of sales decreased for the same period due to higher input costs.
(4)
The three months ended September
30
, 2026 and 2025 exclude Rationalization and asset impairment net charges of $1,612 and $4,150, respectively, as discussed in Note 6 to the consolidated financial statements.
28
Table of Contents
(5)
The three months ended September
30
, 2026 exclude Rationalization and asset impairment net charges of $6,224.
The three months ended September 30, 2025 exclude Rationalization and asset impairment net charges of $1,365 as discussed in Note 6 and the amortization of the step up in value of acquired inventories of $1,397.
(6)
The three months ended September
30
, 2026 and 2025 exclude Rationalization and asset impairment net charges of $17 and $316, respectively, as discussed in Note 6 to the consolidated financial statements.
(7)
The three months ended September
30
, 2026 and 2025 exclude transaction costs of $765 and $452, 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.
Favorable (Unfavorable)
Nine Months Ended September 30,
2026 vs. 2025
2026
2025
$
%
Americas Welding:
Net sales
$
2,281,927
$
2,041,631
$
240,296
11.8
%
Inter-segment sales
91,572
103,821
(12,249)
(11.8)
%
Total Sales
$
2,373,499
$
2,145,452
$
228,047
10.6
%
Adjusted EBIT
(1) (4)
$
452,110
$
393,728
$
58,382
14.8
%
As a percent of total sales
(1)
19.0
%
18.4
%
0.6
%
International Welding:
Net sales
$
697,231
$
671,514
$
25,717
3.8
%
Inter-segment sales
19,873
24,303
(4,430)
(18.2)
%
Total Sales
$
717,104
$
695,817
$
21,287
3.1
%
Adjusted EBIT
(2) (5)
$
73,223
$
79,383
$
(6,160)
(7.8)
%
As a percent of total sales
(2)
10.2
%
11.4
%
(1.2)
%
The Harris Products Group:
Net sales
$
583,220
$
441,143
$
142,077
32.2
%
Inter-segment sales
13,613
12,535
1,078
8.6
%
Total Sales
$
596,833
$
453,678
$
143,155
31.6
%
Adjusted EBIT
(3) (6)
$
117,142
$
84,291
$
32,851
39.0
%
As a percent of total sales
(3)
19.6
%
18.6
%
1.0
%
Corporate / Eliminations:
Inter-segment sales
$
(125,058)
$
(140,659)
$
15,601
11.1
%
Adjusted EBIT
(7)
(9,035)
(816)
(8,219)
(1,007.2)
%
Consolidated:
Net sales
$
3,562,378
$
3,154,288
$
408,090
12.9
%
Net income
$
439,247
$
384,511
$
54,736
14.2
%
As a percent of total sales
12.3
%
12.2
%
0.1
%
Adjusted EBIT
(8)
$
633,440
$
556,586
$
76,854
13.8
%
As a percent of sales
17.8
%
17.6
%
0.2
%
(1)
Adjusted EBIT and Adjusted EBIT as a percent of sales increased for the nine months ended September 30, 2026 as compared to September
30, 2025 driven by a favorable impact of organic sales, partially offset by rising input costs.
29
Table of Contents
(2)
Adjusted EBIT and Adjusted EBIT as a percent of sales decreased
for the nine months ended September
30
, 2026 as compared to September
30
, 2025 primarily driven by the unfavorable impact of lower volumes and higher input costs, partially offset by the benefit of acquisitions.
(3)
Adjusted EBIT and Adjusted EBIT as a percentage of sales
increased for the nine months ended September
30
, 2026 as compared to September
30
, 2025 primarily driven by
operating leverage from higher organic sales
.
(4)
The nine months ended September
30
, 2026 and 2025 exclude Rationalization and asset impairment net charges of $3,197 and $7,190, respectively, as discussed in Note 6 to the consolidated financial statements.
(5)
The nine months ended September
30
, 2026 exclude Rationalization and asset impairment net charges of $10,278.
The nine months ended September 30, 2025 exclude Rationalization and asset impairment net charges of $4,468 as discussed in Note 6 and the amortization of the step up in value of acquired inventories of $1,257.
(6)
The nine months ended September
30
, 2026 and 2025 exclude Rationalization and asset impairment net charges of $22 and $580, respectively, as discussed in Note 6 to the consolidated financial statements.
(7)
The nine months ended September
30
, 2026 and 2025 exclude transaction costs of $1,433 and $1,683, 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.
30
Table of Contents
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 September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Operating income as reported
$
211,376
$
176,657
$
618,178
$
533,719
Special items (pre-tax):
Rationalization and asset impairment net charges
(1)
7,853
5,831
13,497
12,238
Transaction costs
(2)
765
452
1,433
1,683
Amortization of step up in value of acquired inventories
(3)
—
1,622
—
1,482
Adjusted operating income
$
219,994
$
184,562
$
633,108
$
549,122
As a percentage of net sales
18.0
%
17.4
%
17.8
%
17.4
%
Net income as reported
$
144,346
$
122,628
$
439,247
$
384,511
Special items:
Rationalization and asset impairment net charges
(1)
7,853
5,831
13,497
12,238
Transaction costs
(2)
765
452
1,433
1,683
Amortization of step up in value of acquired inventories
(3)
—
1,622
—
1,482
Tax effect of Special items
(4)
(5)
10,669
6,685
9,134
4,772
Adjusted net income
163,633
137,218
463,311
404,686
Interest expense, net
11,346
13,648
37,241
38,394
Income taxes as reported
55,687
43,367
142,022
118,278
Tax effect of Special items
(4)
(5)
(10,669)
(6,685)
(9,134)
(4,772)
Adjusted EBIT
$
219,997
$
187,548
$
633,440
$
556,586
Effective tax rate as reported
27.8
%
26.1
%
24.4
%
23.5
%
Net special item tax impact
(6.2)
%
(5.0)
%
(2.1)
%
(1.6)
%
Adjusted effective tax rate
21.6
%
21.1
%
22.3
%
21.9
%
Diluted earnings per share as reported
$
2.63
$
2.21
$
7.97
$
6.86
Special items per share
0.35
0.26
0.44
0.36
Adjusted diluted earnings per share
$
2.98
$
2.47
$
8.41
$
7.22
(1)
Primarily related to restructuring activities as discussed in Note 6 to the consolidated financial statements.
(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)
During the third quarter of 2026, the Company determined that certain foreign earnings may be repatriated and recognized approximately $12,977 of related income tax expense, as discussed in Note 11. During the third quarter of 2025, the Company recognized tax expense of approximately $8,800, reflecting the cumulative impact of the OBBBA provisions.
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Table of Contents
(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.
Liquidity and Capital Resources
Overview
The Company’s primary sources of liquidity are operating cash flows and revolving credit facilities. As of September 30, 2026, the Company had $283,237 of cash and cash equivalents on hand and no outstanding borrowings under its $1,050,065 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:
Nine Months Ended September 30,
2026
2025
$ Change
Cash provided by operating activities
$
571,691
$
566,208
$
5,483
Cash used by investing activities
(105,828)
(214,275)
108,447
Capital expenditures
(111,819)
(84,028)
(27,791)
Acquisition of businesses, net of cash acquired
140
(136,655)
136,795
Cash used by financing activities
(495,904)
(425,394)
(70,510)
(Payments on) proceeds from short-term borrowings
(143,889)
77,678
(221,567)
Payments on long-term borrowings
—
(100,169)
100,169
Purchase of shares for treasury
(232,189)
(286,488)
54,299
Cash dividends paid to shareholders
(130,689)
(126,476)
(4,213)
Decrease in Cash and cash equivalents
(25,552)
(84,265)
58,713
As of September 30, 2026, the Company had cash of $283,237, of which $179,018 was held by international subsidiaries. During the third quarter 2026, the Company determined that certain foreign earnings may be repatriated and recognized approximately $12,977 of related income tax expense, as discussed in Note 11.
In October 2026, the Company paid a cash dividend of $0.79 per share, or $42,784, to shareholders of record on September 30, 2026.
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Table of Contents
The Company currently anticipates capital expenditures of $140,000 to $150,000 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 $50,065. As of September 30, 2026, the Company had total availability of $1,050,065 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
September 30, 2026
December 31, 2025
September 30, 2025
Average operating working capital to Net sales
(1)
16.6
%
17.9
%
18.6
%
Days sales in Inventories
110.7
116.4
127.1
Days sales in Accounts receivable
48.3
49.4
46.9
Average days in Trade accounts payable
59.0
53.4
60.8
(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.
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 September 30, 2026, there were 4.3 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.
33
Table of Contents
The following table presents the reconciliations of ROIC and Adjusted ROIC to net income:
\
Twelve Months Ended September 30,
2026
2025
Net income as reported
$
575,269
$
524,740
Plus: Interest expense (after-tax)
42,191
43,488
Less: Interest income (after-tax)
4,405
6,181
Net operating profit after taxes
$
613,055
$
562,047
Special items:
Rationalization and asset impairment net charges
19,458
16,776
Transaction costs
2,489
4,174
Pension settlement net charges (gains)
719
(174)
Amortization of step up in value of acquired inventories
2,482
3,034
Tax effect of Special items
(1)
9,539
2,117
Adjusted net operating profit after taxes
$
647,742
$
587,974
Invested Capital
September 30, 2026
September 30, 2025
Short-term debt
$
—
$
88,203
Long-term debt, less current portion
1,149,969
1,150,315
Total debt
1,149,969
1,238,518
Total equity
1,554,721
1,414,633
Invested capital
$
2,704,690
$
2,653,151
Return on invested capital as reported
22.7
%
21.2
%
Adjusted return on invested capital
23.9
%
22.2
%
(1)
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
.
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
34
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 September 30, 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 September 30, 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 September 30, 2026, the Company was a co-defendant in cases alleging asbestos induced illness involving claims by approximately 367 plaintiffs, which is a net decrease of 334 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: 58,032 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 1,026 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.
35
Table of Contents
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEED
S
Issuer purchases of its common shares during the third 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)
July 1 - 31, 2026
48,428
(1)
$
254.10
47,616
4,575,998
August 1 - 31, 2026
68,428
(1)
280.87
67,713
4,508,285
September 1 - 30, 2026
256,337
(1)
264.77
255,507
4,252,778
Total
373,193
$
266.34
370,836
(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 5.7 million shares at a total cost of $1,137 million for a weighted average cost of $197.78 per share through September 30, 2026.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the quarter ended September 30, 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.
36
Table of Contents
ITEM 6. EXHIBITS
(a)
Exhibits
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
37
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)
October 27, 2026
38
----- leco-ex31d1.htm -----
EX-31.1
2
leco-ex31d1.htm
EX-31.1
Exhibit 31.1
CERTIFICATION
I, Steven B. Hedlund, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Lincoln Electric Holdings, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Pril 2
Date: October 27, 2026
/s/ Steven B. Hedlund
Steven B. Hedlund
Chairman and Chief Executive Officer
----- leco-ex31d2.htm -----
EX-31.2
3
leco-ex31d2.htm
EX-31.2
Exhibit 31.2
CERTIFICATION
I, Gabriel Bruno, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Lincoln Electric Holdings, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: October 27, 2026
/s/ Gabriel Bruno
Gabriel Bruno
Executive Vice President, Chief Financial
Officer and Treasurer
----- leco-ex32d1.htm -----
EX-32.1
4
leco-ex32d1.htm
EX-32.1
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Lincoln Electric Holdings, Inc. (the "Company") for the three months ended September 30, 2026, as filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to such officer's knowledge:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
/
Date: October 27, 2026
/s/ Steven B. Hedlund
Steven B. Hedlund
Chairman and Chief Executive Officer
/s/ Gabriel Bruno
Gabriel Bruno
Executive Vice President, Chief Financial
Officer and Treasurer
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