Lincoln Electric Holdings Inc 10-Q for FY2026 Q1

Lincoln Electric Holdings Inc (LECO)

10-Q 2026-04-30 For: 2026-03-31

Added on April 30, 2026

About this 10-Q

Lincoln Electric Holdings Inc filed this 10-Q on April 30, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.12B; up 11.7% from $1B a year earlier
Net income: $136.38M; up 15.1% from net income of $118.49M a year earlier
Diluted EPS: $2.47; up 17.6% from $2.10 a year earlier

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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)


Title of each class	Trading Symbol	Name of exchange on which registered
Common Shares, without par value	LECO	The NASDAQ Stock Market LLC


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

PART I. FINANCIAL INFORMATION		3
Item 1. Financial Statements		3
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)		3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)		4
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)		5
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)		6
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)		7
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS		8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
Item 3. Quantitative and Qualitative Disclosures About Market Risk		29
Item 4. Controls and Procedures		29

PART II. OTHER INFORMATION		29
Item 1. Legal Proceedings		29
Item 1A. Risk Factors		29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		30
Item 4. Mine Safety Disclosures		30
Item 5. Other Information		30
Item 6. Exhibits		31
Signatures		32


	Three Months Ended
	March 31,
	2026		2025
Net sales (Note 2)	$	1,121,434	$	1,004,388
Cost of goods sold		722,302		638,940
Gross profit		399,132		365,448
Selling, general & administrative expenses		210,811		196,665
Rationalization and asset impairment net charges (Note 6)		2,163		3,865
Operating income		186,158		164,918
Interest expense, net		13,374		12,127
Other income		570		444
Income before income taxes		173,354		153,235
Income taxes (Note 11)		36,972		34,748
Net income	$	136,382	$	118,487

Basic earnings per share (Note 3)	$	2.49	$	2.11
Diluted earnings per share (Note 3)	$	2.47	$	2.10
Cash dividends declared per share	$	0.79	$	0.75


	Three Months Ended March 31,
	2026		2025
Net income	$	136,382	$	118,487
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges		(1,323)		829
Defined benefit pension plan activity		(56)		(1,285)
Currency translation adjustment		(6,459)		29,679
Other comprehensive (loss) income:		(7,838)		29,223
Comprehensive income	$	128,544	$	147,710


	March 31, 2026		December 31, 2025
	(UNAUDITED)		(NOTE 1)
ASSETS
Current Assets
Cash and cash equivalents	$	298,903	$	308,789
Accounts receivable (less allowance for doubtful accounts of $10,662 in 2026; $11,326 in 2025)		598,315		538,791
Inventories (Note 8)		693,938		633,364
Other current assets		272,288		258,568
Total Current Assets		1,863,444		1,739,512
Property, plant and equipment (less accumulated depreciation of $954,195 in 2026; $942,806 in 2025)		720,836		702,762
Goodwill		886,373		886,686
Other assets		429,742		448,617
TOTAL ASSETS	$	3,900,395	$	3,777,577
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt (Note 10)	$	163,502	$	143,780
Trade accounts payable		448,138		364,934
Accrued employee compensation and benefits		110,861		116,158
Other current liabilities		297,856		331,819
Total Current Liabilities		1,020,357		956,691
Long-term debt, less current portion (Note 10)		1,150,138		1,150,228
Other liabilities		218,640		200,864
Total Liabilities		2,389,135		2,307,783
Shareholders' Equity
Common shares, without par value - at stated capital amount; authorized 240,000,000 shares; issued 98,581,434 shares in 2026 and 2025; outstanding 54,787,110 shares in 2026 and 54,845,950 in 2025		9,858		9,858
Additional paid-in capital		612,391		601,566
Retained earnings		4,435,760		4,342,080
Accumulated other comprehensive loss		(213,769)		(205,931)
Treasury shares, at cost - 43,794,324 shares in 2026 and 43,735,484 shares in 2025		(3,332,980)		(3,277,779)
Total Equity		1,511,260		1,469,794
TOTAL LIABILITIES AND TOTAL EQUITY	$	3,900,395	$	3,777,577


													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

Standard	Description
ASU No. 2025-09, Derivatives and Hedging, issued November 2025	Updates hedge accounting guidance to better align financial reporting with risk management activities. The amendments are effective for annual periods beginning after December 15, 2026 and interim periods within those annual reporting periods. Early adoption is permitted.
ASU No. 2025-06, Goodwill and Other – Internal-Use Software, issued September 2025	Updates requirements for capitalization of internal-use software costs. The amendments are effective for annual periods beginning after December 15, 2027 and interim periods within those annual reporting periods. Early adoption is permitted.
ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures, issued November 2024	Requires enhanced disclosures of specified information about certain costs and expenses. The amendments are effective for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028. Early adoption is prohibited.


								The Harris
		Americas			International			Products
		Welding			Welding			Group			Total
Three Months Ended March 31, 2026
Net sales		$	706,225		$	227,035		$	188,174		$	1,121,434
Inter-segment sales			36,709			5,807			4,664			47,180
			742,934			232,842			192,838			1,168,614
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales												(47,180)
Net sales											$	1,121,434
Cost of goods sold			464,890			167,084			137,600
Other segment expenses^{(1) (3)}			151,149			44,868			14,247
Addback: Special items (charges) gain ⁽¹⁾			(573)			(1,772)			182
Segment Adjusted EBIT		$	127,468		$	22,662		$	40,809		$	190,939

Other Segment Information
Capital expenditures		$	(26,983)		$	(9,315)		$	(2,865)		$	(39,163)
Depreciation and amortization			17,774			6,682			2,649			27,105

Three Months Ended March 31, 2025
Net sales		$	653,107		$	219,061		$	132,220		$	1,004,388
Inter-segment sales			30,372			6,832			3,984			41,188
			683,479			225,893			136,204			1,045,576
Reconciliation to Consolidated Net sales
Elimination of inter-segment sales												(41,188)
Net sales											$	1,004,388
Cost of goods sold			417,700			163,442			97,974
Other segment expenses^{(2) (3)}			143,716			40,851			14,079
Addback: Special items charge ⁽²⁾			(2,135)			(1,412)			(178)
Segment Adjusted EBIT		$	124,198		$	23,012		$	24,329		$	171,539

Other Segment Information
Capital expenditures		$	(21,766)		$	(3,608)		$	(1,575)		$	(26,949)
Depreciation and amortization			16,114			5,378			2,663			24,155


	Three Months Ended March 31, 2026
	Unrealized gain
	(loss) on derivatives
	designated and		Defined benefit		Currency
	qualifying as cash		pension plan		translation
	flow hedges		activity		adjustment		Total
Balance at December 31, 2025	$	17,687	$	(1,062)	$	(222,556)	$	(205,931)
Other comprehensive income (loss) before reclassification		1,079		—		(6,459)		(5,380)
Amounts reclassified from AOCI		(2,402)		(56)		—		(2,458)
Net current-period other comprehensive loss		(1,323)		(56)		(6,459)		(7,838)
Balance at March 31, 2026	$	16,364	$	(1,118)	$	(229,015)	$	(213,769)


	Three Months Ended March 31, 2025
	Unrealized gain
	(loss) on derivatives
	designated and		Defined benefit		Currency
	qualifying as cash		pension plan		translation
	flow hedges		activity		adjustment		Total
Balance at December 31, 2024	$	17,255	$	(1,048)	$	(316,342)	$	(300,135)
Other comprehensive income before reclassification		1,148		—		29,679		30,827
Amounts reclassified from AOCI		(319)		(1,285)		—		(1,604)
Net current-period other comprehensive income (loss)		829		(1,285)		29,679		29,223
Balance at March 31, 2025	$	18,084	$	(2,333)	$	(286,663)	$	(270,912)


Operating Leases		Balance Sheet Classification		March 31, 2026			December 31, 2025
Right-of-use assets		Other assets		$	50,887		$	52,989

Current liabilities		Other current liabilities		$	13,205		$	13,460
Noncurrent liabilities		Other liabilities			37,996			40,061
Total lease liabilities				$	51,201		$	53,521


		March 31, 2026
2026		$	15,376
2027			12,639
2028			10,612
2029			7,739
2030			4,076
After 2030			10,597
Total lease payments		$	61,039
Less: Imputed interest			9,838
Operating lease liabilities		$	51,201


				Three Months Ended March 31,
Derivatives by hedge designation		Classification of (loss) gain		2026		2025
Not designated as hedges:
Foreign exchange contracts		Selling, general & administrative expenses		$	(3,353)	$	8,333


	Three Months Ended March 31,
	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	136,382	$	118,487
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization		26,009		23,784
Deferred income taxes		22,533		(5,838)
Stock-based compensation		9,580		8,352
Other, net		(1,516)		282
Changes in operating assets and liabilities, net of effects from acquisitions:
Increase in accounts receivable		(60,212)		(34,108)
Increase in inventories		(61,876)		(20,167)
(Increase) decrease in other current assets		(13,471)		2,057
Increase in trade accounts payable		83,784		64,884
(Decrease) increase in other current liabilities		(43,138)		21,206
Net change in other assets and liabilities		4,095		6,754
NET CASH PROVIDED BY OPERATING ACTIVITIES		102,170		185,693
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		(39,163)		(26,949)
Acquisition of businesses, net of cash acquired		140		—
Proceeds from sale of property, plant and equipment		308		4,646
NET CASH USED BY INVESTING ACTIVITIES		(38,715)		(22,303)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (payments on) short-term borrowings, net		19,613		(904)
Payments on long-term borrowings		—		(169)
Proceeds from exercise of stock options		8,559		6,254
Purchase of shares for treasury		(56,670)		(106,694)
Cash dividends paid to shareholders		(44,071)		(42,975)
NET CASH USED BY FINANCING ACTIVITIES		(72,569)		(144,488)
Effect of exchange rate changes on Cash and cash equivalents		(772)		(1,459)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(9,886)		17,443

Cash and cash equivalents at beginning of period		308,789		377,262
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	298,903	$	394,705


	Three Months Ended March 31,
		2026		2025
Reconciliation of Segment Adjusted EBIT to Consolidated Income before income taxes
Segment Adjusted EBIT	$	190,939	$	171,539
Addback: Segment special items charge		(2,163)		(3,725)
Corporate special items charge ⁽¹⁾		(653)		(802)
Elimination of inter-segment loss (profit)		92		(1,012)
Unallocated corporate expenses, net		(1,487)		(638)
Interest income		1,385		2,255
Interest expense		(14,759)		(14,382)
Consolidated Income before income taxes	$	173,354	$	153,235

Reconciliation of Other Segment Information to Consolidated Information
Capital expenditures
Segment totals	$	(39,163)	$	(26,949)
Adjustments		—		—
Consolidated totals	$	(39,163)	$	(26,949)

Depreciation and amortization
Segment totals	$	27,105	$	24,155
Adjustments		(1,096)		(371)
Consolidated totals	$	26,009	$	23,784

⁽¹⁾Corporate special items primarily include transaction costs.
	March 31, 2026		December 31, 2025
Reconciliation of Segment Assets to Consolidated Assets
Americas Welding	$	2,524,416	$	2,464,376
International Welding		1,233,435		1,244,117
The Harris Products Group		494,690		431,259
Total Segment Assets		4,252,541		4,139,752
Corporate Assets		36,588		41,033
LIFO reserve not allocated to segments		(139,427)		(138,589)
Eliminations		(249,307)		(264,619)
Total Consolidated Assets	$	3,900,395	$	3,777,577


		Three Months Ended March 31,
		2026		2025
Americas Welding		$	573	$	2,135
International Welding			1,772		1,552
The Harris Products Group			(182)		178
Total		$	2,163	$	3,865


		Americas		International			The Harris Products
		Welding		Welding			Group			Consolidated
Balance at December 31, 2025		$	944	$	5,713		$	428		$	7,085
Payments and other adjustments			(1,030)		(4,048)			(30)			(5,108)
Charged to expense			573		1,772			(182)			2,163
Balance at March 31, 2026		$	487	$	3,437		$	216		$	4,140



Total gain (loss) recognized in AOCI, net of tax		March 31, 2026			December 31, 2025
Foreign exchange contracts		$	642		$	1,396
Forward starting swap agreements			15,722			16,291
Net investment contracts			(4,179)			(5,721)


		Gain (loss) recognized in the		Three Months Ended March 31,
Derivative type		Consolidated Statements of Income:		2026			2025
Foreign exchange contracts		Sales		$	1,472		$	(713)
		Cost of goods sold			1,560			361
Forward starting swap agreements		Interest expense, net			689			689


					Quoted Prices in
					Active Markets for
					Identical Assets or			Significant Other			Significant
		Balance as of			Liabilities			Observable Inputs			Unobservable
Description		March 31, 2026			(Level 1)			(Level 2)			Inputs (Level 3)
Assets:
Foreign exchange contracts		$	2,926		$	—		$	2,926		$	—
Net investment contracts			3,784			—			3,784			—
Pension surplus			9,314			9,314			—			—
Total assets		$	16,024		$	9,314		$	6,710		$	—
Liabilities:
Foreign exchange contracts		$	2,069		$	—		$	2,069		$	—
Net investment contracts			1,255			—			1,255			—
Deferred compensation			27,867			—			27,867			—
Total liabilities		$	31,191		$	—		$	31,191		$	—


	Three Months Ended March 31,
											Favorable (Unfavorable)
	2026					2025					2026 vs. 2025
	Amount			% of Sales		Amount			% of Sales		$			%
Net sales	$	1,121,434				$	1,004,388				$	117,046		11.7	%
Cost of goods sold		722,302					638,940					(83,362)		(13.0)	%
Gross profit		399,132		35.6	%		365,448		36.4	%		33,684		9.2	%
Selling, general & administrative expenses		210,811		18.8	%		196,665		19.6	%		(14,146)		(7.2)	%
Rationalization and asset impairment net charges		2,163		0.2	%		3,865		0.4	%		1,702		44.0	%
Operating income		186,158		16.6	%		164,918		16.4	%		21,240		12.9	%
Interest expense, net		13,374					12,127					(1,247)		(10.3)	%
Other income		570					444					126		28.4	%
Income before income taxes		173,354		15.5	%		153,235		15.3	%		20,119		13.1	%
Income taxes		36,972					34,748					(2,224)		(6.4)	%
Effective tax rate		21.3	%				22.7	%				1.4	%
Net income	$	136,382		12.2	%	$	118,487		11.8	%	$	17,895		15.1	%
Diluted earnings per share	$	2.47				$	2.10				$	0.37		17.6	%


Three Months Ended March 31,			Change in Net Sales due to:
	Net Sales											Foreign			Net Sales
	2025		Volume			Price			Acquisitions			Exchange			2026
Lincoln Electric Holdings, Inc.	$	1,004,388	$	(25,641)		$	104,558		$	15,794		$	22,335		$	1,121,434
% Change
Lincoln Electric Holdings, Inc.				(2.6)	%		10.4	%		1.6	%		2.3	%		11.7	%


								Favorable
								(Unfavorable)
		March 31,						2026 vs. 2025
		2026			2025			$		%
Americas Welding:
Net sales		$	706,225		$	653,107		$	53,118	8.1	%
Inter-segment sales			36,709			30,372			6,337	20.9	%
Total Sales		$	742,934		$	683,479		$	59,455	8.7	%
Adjusted EBIT ^{(1) (4)}		$	127,468		$	124,198		$	3,270	2.6	%
As a percent of total sales ⁽¹⁾			17.2	%		18.2	%			(1.0)	%
International Welding:
Net sales		$	227,035		$	219,061		$	7,974	3.6	%
Inter-segment sales			5,807			6,832			(1,025)	(15.0)	%
Total Sales		$	232,842		$	225,893		$	6,949	3.1	%
Adjusted EBIT ^{(2) (5)}		$	22,662		$	23,012		$	(350)	(1.5)	%
As a percent of total sales ⁽²⁾			9.7	%		10.2	%			(0.5)	%
The Harris Products Group:
Net sales		$	188,174		$	132,220		$	55,954	42.3	%
Inter-segment sales			4,664			3,984			680	17.1	%
Total Sales		$	192,838		$	136,204		$	56,634	41.6	%
Adjusted EBIT ^{(3) (6)}		$	40,809		$	24,329		$	16,480	67.7	%
As a percent of total sales⁽³⁾			21.2	%		17.9	%			3.3	%
Corporate / Eliminations:
Inter-segment sales		$	(47,180)		$	(41,188)		$	(5,992)	(14.5)	%
Adjusted EBIT ⁽⁷⁾			(1,395)			(1,650)			255	15.5	%
Consolidated:
Net sales		$	1,121,434		$	1,004,388		$	117,046	11.7	%
Net income		$	136,382		$	118,487		$	17,895	15.1	%
As a percent of total sales			12.2	%		11.8	%			0.4	%
Adjusted EBIT ⁽⁸⁾		$	189,544		$	169,889		$	19,655	11.6	%
As a percent of sales			16.9	%		16.9	%			—	%


		Twelve Months Ended March 31,
		2026			2025
Net income as reported		$	538,428		$	461,180
Plus: Interest expense (after-tax)			44,044			41,450
Less: Interest income (after-tax)			4,459			6,868
Net operating profit after taxes		$	578,013		$	495,762
Special items:
Rationalization and asset impairment net charges			16,497			55,120
Transaction costs			2,590			6,085
Pension settlement net charges			719			3,792
Amortization of step up in value of acquired inventories			4,104			4,883
Loss on asset disposal			—			4,950
Tax effect of Special items ⁽¹⁾			5,595			(11,545)
Adjusted net operating profit after taxes		$	607,518		$	559,047

Invested Capital		March 31, 2026			March 31, 2025
Short-term debt		$	163,502		$	109,620
Long-term debt, less current portion			1,150,138			1,150,473
Total debt			1,313,640			1,260,093
Total equity			1,511,260			1,340,170
Invested capital		$	2,824,900		$	2,600,263

Return on invested capital as reported			20.5	%		19.1	%
Adjusted return on invested capital			21.5	%		21.5	%


							Total Number of
							Shares		Maximum Number
							Repurchased		of Shares that May
		Total Number of					as Part of Publicly		Yet be Purchased
		Shares		Average Price			Announced Plans or		Under the Plans or
Period		Repurchased		Paid Per Share			Programs		Programs ⁽²⁾
January 1 - 31, 2026		65,803	⁽¹⁾	$	253.98		64,535		5,032,096
February 1 - 28, 2026		68,316	⁽¹⁾		286.97		54,526		4,977,570
March 1 - 31, 2026		76,254	⁽¹⁾		266.91		68,586		4,908,984
Total		210,373	111	$	269.38		187,647



10.1*	Form of Stock Option Agreement for Executive Officers for awards granted in 2026 (filed herewith).
10.2*	Form of Restricted Stock Unit Agreement for Executive Officers for awards granted in 2026 (filed herewith).
10.3*	Form of Performance Share Award Agreement for Executive Officers for awards granted in 2026 (filed herewith).
31.1	Certification of the Chairman and Chief Executive Officer (Principal Executive Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 (filed herewith).
31.2	Certification of the Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 (filed herewith).
32.1	Certification of the Chairman and Chief Executive Officer (Principal Executive Officer) and Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
104	Cover page Interactive Data File (formatted as Inline XBRL and contained in the Exhibit 101 attachments)
	Inline XBRL Taxonomy Extension Label Linkbase Document

* Reflects management contract or other compensatory arrangement required to be filed as an exhibit pursuant to Item 15(b) of this report


		LINCOLN ELECTRIC HOLDINGS, INC.

		/s/ Gabriel Bruno
		Gabriel Bruno
		Executive Vice President, Chief Financial Officer and Treasurer
		(Principal Financial and Accounting Officer)
		April 30, 2026


	LINCOLN ELECTRIC HOLDINGS, INC.

	Steven B. Hedlund President and Chief Executive Officer

Pril 2
Date: April 30, 2026
	/s/ Steven B. Hedlund
	Steven B. Hedlund
	Chairman and Chief Executive Officer