Lincoln Electric(LECO) - 2025 Q1 - Quarterly Report

Financial Performance - Net sales for the three months ended March 31, 2025, were $1,004,388, representing a 2.4$981,197 in the same period of 2024[80]. - Gross profit decreased to $365,448, or 36.4$164,918, or 16.4% of sales, compared to 16.8% in the previous year, with adjusted operating income at 16.9%[80][84]. - Net income for the quarter was $118,487, a decrease of 4.0$123,415 in 2024, resulting in diluted earnings per share of $2.10[80][90]. - Adjusted EBIT for the consolidated company was$169,889, down 2.2% from $173,676 in the prior year[90]. - Operating income for Q1 2025 was reported at$164,918, a slight decrease from $165,047 in Q1 2024, with adjusted operating income at$169,445, down from $171,414[92]. - Net income for Q1 2025 was$118,487, compared to $123,415 in Q1 2024, while adjusted net income decreased to$121,856 from $128,656[92]. Segment Performance - The Americas Welding segment reported net sales of$653,107, a 4.6% increase, while International Welding saw a decline of 7.1% to $219,061[86][90]. - The Harris Products Group experienced a 9.0$132,220, driven by effective cost management[90]. Cash Flow and Capital Expenditures - Cash provided by operating activities increased to $185,693 in Q1 2025, up by$52,399 from $133,294 in Q1 2024[97]. - The company had$394,705 in cash and cash equivalents as of March 31, 2025, with $4,391 in outstanding borrowings under its$1,031,457 revolving credit facilities[93]. - Anticipated capital expenditures for 2025 are projected to be between $100,000 and$120,000, aimed at increasing capacity and improving operational effectiveness[98]. Tax and Financial Ratios - The effective tax rate increased to 22.7% for the three months ended March 31, 2025, compared to 22.2% in the same period of 2024[80][85]. - The effective tax rate as reported was 22.7% for Q1 2025, slightly higher than 22.2% in Q1 2024, with an adjusted effective tax rate of 22.8%[92]. - The company reported a return on invested capital (ROIC) of 19.1% for the twelve months ended March 31, 2025, down from 23.9% in the previous year[107]. - Average operating working capital to net sales ratio was 17.8% as of March 31, 2025, compared to 18.8% a year earlier[102]. Strategic Initiatives - The company faced a decrease in organic sales due to softer demand, partially offset by acquisitions[81]. - The company continues to monitor trade negotiations and their potential impact on business operations following U.S. tariffs on imported goods[78]. - The company continues to explore global expansion and acquisitions, with operational cash flow expected to fund these initiatives[96]. - The company has a share repurchase program authorized for up to 10 million shares, with 6.2 million shares available for repurchase as of March 31, 2025[103].