LINCOLN ELECTRIC HOLDINGS, INC. Lincoln Electric Holdings, Inc. Q4 & FullYear 2025 Earnings & 2030 Targets Q4 & FY2025 Earnings & 2030 Targets February 12, 2026 February 12, 2026 Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Statements made during this presentation which are not historical facts may be considered forward-looking statements. Forward- looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or ...

Core Insights - Lincoln Electric Holdings (LECO) reported quarterly earnings of $2.65 per share, exceeding the Zacks Consensus Estimate of $2.53 per share, and showing an increase from $2.57 per share a year ago [1] - The company achieved an earnings surprise of +4.67% for the quarter, having surpassed consensus EPS estimates three times in the last four quarters [2] - Revenues for the quarter were $1.08 billion, slightly missing the Zacks Consensus Estimate by 0.94%, but up from $1.02 billion year-over-year [3] Financial Performance - The earnings surprise of +4.67% indicates strong performance relative to expectations, with a previous quarter surprise of +3.35% [2] - The company has consistently outperformed revenue estimates, achieving this three times in the last four quarters [3] - Year-to-date, Lincoln Electric shares have increased by approximately 21.2%, significantly outperforming the S&P 500's gain of 1.4% [4] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook for upcoming quarters [4][5] - Current consensus EPS estimate for the next quarter is $2.45, with expected revenues of $1.07 billion, and for the current fiscal year, the EPS estimate is $10.70 on revenues of $4.49 billion [8] - The Zacks Rank for Lincoln Electric is currently 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [7] Industry Context - The Manufacturing - Tools & Related Products industry, to which Lincoln Electric belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable industry outlook [9] - Historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1, suggesting potential for growth in this sector [9]

Financial Performance - Fourth quarter 2025 net income was $136.0 million, or diluted EPS of $2.45, compared to $140.2 million, or $2.47 EPS in the prior year[2] - Full year 2025 net income increased to $520.5 million, or $9.32 EPS, from $466.1 million, or $8.15 EPS in the prior year, reflecting an increase of 11.7%[5] - Adjusted net income for the year ended December 31, 2025, reached $551,331, up from $531,265, marking a growth of 3.8%[22] - Diluted earnings per share as reported for 2025 was $9.32, compared to $8.15 in 2024, representing a growth of 14.4%[18] - Net income for the year ended December 31, 2025, increased to $520,533, up from $466,108 in 2024, representing an increase of 11.6%[26] Sales and Revenue - Fourth quarter 2025 sales rose 5.5% to $1,078.7 million, driven by a 2.5% increase in organic sales and a 1.1% contribution from acquisitions[3] - Full year 2025 sales increased 5.6% to $4,233.0 million, with organic sales growth of 2.5% and a 2.7% benefit from acquisitions[6] - Total net sales for the year ended December 31, 2025, reached $4,233,003, compared to $4,008,670 in 2024, reflecting a growth of 5.6%[33] - The Americas Welding segment achieved net sales of $2,723,561 for the year ended December 31, 2025, up from $2,564,847 in 2024, reflecting a growth of 6.2%[33] - The International Welding segment's net sales for 2025 were $930,865, slightly down from $933,722 in 2024, indicating a marginal decrease of 0.3%[33] - The Harris Products Group reported net sales of $578,577 for 2025, an increase from $510,101 in 2024, representing a growth of 13.4%[33] Operating Income and Expenses - Adjusted operating income for the fourth quarter was $193.8 million, or 18.0% of sales, compared to $185.6 million, or 18.2% of sales in the prior year[3] - Operating income for the year ended December 31, 2025, was reported at $718,059, an increase of 12.8% compared to $636,462 in 2024[18] - Adjusted EBIT for the year ended December 31, 2025, was $752,632, an increase from $713,605 in 2024, indicating a rise of 5.5%[34] Cash Flow and Capital Management - Cash flows from operations for 2025 totaled $661 million, with $507 million returned to shareholders through dividends and share repurchases[7] - Free cash flow for the year was $534,199, compared to $482,374 in the previous year, indicating an increase of 10.8%[22] - The consolidated net cash provided by operating activities for 2025 was $661,173, compared to $598,977 in 2024, marking an increase of 10.4%[26] - Capital expenditures for 2025 totaled $126,974, up from $116,603 in 2024, representing an increase of 8.5%[26] Balance Sheet and Financial Ratios - Cash and cash equivalents decreased to $308,789, down from $377,262 in the previous year, representing a decline of 18.2%[24] - Total assets increased to $3,777,577, up from $3,520,142, reflecting a growth of 7.3% year-over-year[15] - The total debt to invested capital ratio improved to 46.8%, down from 48.7% in the previous year, showing a reduction in leverage[15] - Average operating working capital to net sales increased to 17.9%, up from 16.9% in the previous year, indicating a higher capital requirement relative to sales[15] - The return on invested capital as reported for 2025 was 20.2%, an increase from 19.2% in 2024, reflecting improved efficiency[20] Dividends - Cash dividends paid per share increased to $0.75 from $0.71, reflecting a growth of 5.6% year-over-year[24] - Cash dividends paid per share increased to $3.00 in 2025, compared to $2.84 in 2024, reflecting a growth of 5.6%[26] Strategic Initiatives - The company aims to drive growth and higher profitability through its new RISE strategy and achieve its 2030 targets[4] Special Items and Tax - The effective tax rate for the fourth quarter was 21.2%, up from 16.1% in the prior year[13] - Special item after-tax net charges for the fourth quarter were $10.6 million, impacting EPS by $0.20[2] Operational Footprint - The company operates 71 manufacturing and automation facilities across 20 countries, serving customers in over 160 countries[9]

Lincoln Electric Holdings, Inc. Overview Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Statements made during this presentation which are not historical facts may be considered forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied. Forward-looking statements generally can be identified by the use of words such as "may," "will," "expect," "intend," "estimate," ...

Core Viewpoint - Wall Street analysts anticipate Lincoln Electric Holdings (LECO) to report quarterly earnings of $2.53 per share, reflecting a year-over-year decline of 1.6%, while revenues are expected to reach $1.09 billion, marking a 6.5% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 0.6% in the past 30 days, indicating a reassessment of initial estimates by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue and Sales Projections - Analysts project 'Net Sales- The Harris Products Group' to reach $135.44 million, indicating a 9% increase year-over-year, while 'Total Sales- The Harris Products Group' is expected to be $139.47 million, reflecting a 9.8% change [5]. - 'Total Sales- International Welding' is estimated at $259.81 million, a 2.2% increase from the prior year, with 'Net Sales- International Welding' projected at $253.68 million, showing a 4.4% year-over-year change [6]. - The consensus for 'Total Sales- Americas Welding' is $728.31 million, indicating a 5.3% increase from the previous year [6]. Segment Sales and EBIT Estimates - 'Net Sales- Americas Welding' is estimated at $694.31 million, reflecting a 6% increase year-over-year, while 'Inter-segment sales- International Welding' is expected to be $10.51 million, indicating a decline of 6.5% [7]. - 'Inter-segment sales- Americas Welding' is projected at $38.63 million, a 4% increase from the year-ago quarter [8]. - 'Adjusted EBIT- Americas Welding' is expected to be $139.00 million, compared to $131.92 million reported in the same quarter last year [8]. - 'Adjusted EBIT- International Welding' is anticipated at $32.89 million, slightly up from $32.53 million year-over-year, while 'Adjusted EBIT- The Harris Products Group' is projected at $24.08 million, compared to $21.57 million last year [9]. Stock Performance - Over the past month, shares of Lincoln Electric have returned +18.3%, contrasting with the Zacks S&P 500 composite's unchanged performance [9].

Core Viewpoint - Lincoln Electric Holdings, Inc. will participate in the Barclays 43rd Annual Industrial Select Conference on February 17, 2026, at 10:25 a.m. Eastern Time, where key executives will present [1] Group 1 - Steve Hedlund, Chairman and CEO, and Gabriel Bruno, Executive Vice President and CFO, will represent the company at the conference [1] - The presentation will be available via webcast on the company's Investor Relations website [1] - A replay of the presentation will also be accessible [1]

Core Viewpoint - Lincoln Electric Holdings, Inc. will participate in the Barclays 43rd Annual Industrial Select Conference on February 17, 2026, where key executives will present [1] Group 1 - Steve Hedlund, Chairman and CEO, and Gabriel Bruno, Executive Vice President and CFO, will be speaking at the conference [1] - The presentation will be available via webcast on the company's Investor Relations website [1] - A replay of the presentation will also be accessible [1]

Company Overview - Lincoln Electric Holdings (LECO) shares increased by 5.4% to close at $285.82, with notable trading volume compared to typical sessions, and a total gain of 7.8% over the past four weeks [1] - The company specializes in manufacturing welding products and related equipment [3] Analyst Ratings - A Roth MKM analyst reiterated a Buy rating on Lincoln Electric and raised the price target from $285.00 to $297.00 [2] - Barclays also maintained a Buy rating with a price target of $280.00 [2] Earnings Expectations - The upcoming quarterly earnings are expected to be $2.52 per share, reflecting a year-over-year decrease of 2% [3] - Revenue is projected to be $1.08 billion, which is an increase of 6.1% compared to the same quarter last year [3] Earnings Estimate Revisions - The consensus EPS estimate for the quarter has been revised 0.6% higher in the last 30 days [5] - Positive trends in earnings estimate revisions are typically associated with stock price appreciation, indicating potential for further strength in Lincoln Electric's stock [4][5] Industry Context - Lincoln Electric is part of the Zacks Manufacturing - Tools & Related Products industry, which includes other companies like Enerpac (EPAC) [6] - Enerpac's consensus EPS estimate has increased by 3.4% over the past month, with a current estimate of $0.4, representing a year-over-year change of 2.6% [7]

Core Insights - The article compares Stanley Black & Decker (SWK) and Lincoln Electric Holdings (LECO) to identify which stock presents a better value opportunity for investors in the Manufacturing - Tools & Related Products sector [1] Group 1: Zacks Rank and Earnings Outlook - Stanley Black & Decker has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Lincoln Electric Holdings has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank suggests that SWK has an improving earnings outlook, which is a critical factor for value investors [3] Group 2: Valuation Metrics - SWK has a forward P/E ratio of 14.99, significantly lower than LECO's forward P/E of 24.12, indicating that SWK may be undervalued [5] - The PEG ratio for SWK is 1.12, while LECO's PEG ratio is 1.61, suggesting that SWK offers better value when considering expected earnings growth [5] - SWK's P/B ratio is 1.41 compared to LECO's P/B of 10.02, further supporting the notion that SWK is undervalued relative to its book value [6] Group 3: Value Grades - Based on the valuation metrics, SWK has a Value grade of B, while LECO has a Value grade of D, indicating that SWK is the superior value option at this time [6]

Company Overview - Lincoln Electric Holdings is headquartered in Cleveland, OH, with 56 manufacturing locations and operations in 19 countries, supported by a global network of distributors and sales offices in over 160 countries [11] - The company is a full-line manufacturer and reseller of welding and cutting products, offering a wide range of products including welding power sources, wire feeding systems, robotic welding packages, and fume extraction equipment [11] Investment Analysis - Lincoln Electric is currently rated as a 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a moderate investment outlook [12] - The company has a Momentum Style Score of B, with shares increasing by 8.2% over the past four weeks, suggesting positive short-term performance [12] - An analyst has revised the earnings estimate upwards for fiscal 2025, with the Zacks Consensus Estimate increasing to $9.75 per share, reflecting a positive earnings outlook [12] - Lincoln Electric has an average earnings surprise of +10.3%, indicating that the company has historically exceeded earnings expectations [12] Conclusion - With a solid Zacks Rank and strong Momentum and VGM Style Scores, Lincoln Electric is positioned as a potential investment opportunity for investors [13]