LINCOLN ELECTRIC HOLDINGS INC 10-Q

ITEM 1. FINANCIAL STATEMENTS LINCOLN ELECTRIC HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2025 2024 Net sales (Note 2) $ 1,004,388 $ 981,197 Cost of goods sold ​ 638,940 ​ 612,798 Gross profit ​ 365,448 ​ 368,399 Selling, general & administrative expenses ​ 196,665 ​ 198,747 Rationalization and asset impairment net charges (Note 6) ​ 3,865 ​ 4,605 Operating income ​ 164,918 ​ 165,047 Interest expense, net ​ 12,127 ​ 8,779 Other income ​ 444 ​ 2,262 Income before income taxes ​ 153,235 ​ 158,530 Income taxes (Note 11) ​ 34,748 ​ 35,115 Net income ​ $ 118,487 ​ $ 123,415 ​ ​ ​ ​ ​ ​ ​ Basic earnings per share (Note 3) ​ $ 2.11 ​ $ 2.17 Diluted earnings per share (Note 3) ​ $ 2.10 ​ $ 2.14 Cash dividends declared per share ​ $ 0.75 ​ $ 0.71 ​ 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 March 31, ​ ​ 2025 2024 Net income $ 118,487 $ 123,415 Other comprehensive income (loss), net of tax: ​ ​ ​ Unrealized gain on derivatives designated and qualifying as cash flow hedges ​ 829 ​ 3,715 ​ Defined benefit pension plan activity ​ ( 1,285 ) ​ 73 ​ Currency translation adjustment ​ 29,679 ​ ( 13,395 ) ​ Other comprehensive income (loss): ​ 29,223 ​ ( 9,607 ) ​ Comprehensive income ​ $ 147,710 ​ $ 113,808 ​ ​ See notes to these consolidated financial statements. ​ ​ 4 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 ​ December 31, 2024 ​ ​ (UNAUDITED) ​ (NOTE 1) ASSETS ​ ​ Current Assets ​ ​ Cash and cash equivalents ​ $ 394,705 ​ $ 377,262 Accounts receivable (less allowance for doubtful accounts of $ 15,112 in 2025; $ 12,674 in 2024) ​ 522,721 ​ 481,979 Inventories (Note 8) ​ 574,329 ​ 544,037 Other current assets ​ 237,872 ​ 242,003 Total Current Assets ​ 1,729,627 ​ 1,645,281 Property, plant and equipment (less accumulated depreciation of $ 884,856 in 2025; $ 865,634 in 2024) ​ ​ 636,158 ​ ​ 619,181 Goodwill ​ 813,698 ​ 804,927 Other assets ​ 445,591 ​ 450,753 TOTAL ASSETS ​ $ 3,625,074 ​ $ 3,520,142 LIABILITIES AND EQUITY ​ ​ ​ Current Liabilities ​ ​ ​ Short-term debt (Note 10) ​ $ 109,620 ​ $ 110,524 Trade accounts payable ​ 365,267 ​ 296,590 Accrued employee compensation and benefits ​ 113,767 ​ 104,374 Other current liabilities ​ 381,200 ​ 367,314 Total Current Liabilities ​ 969,854 ​ 878,802 Long-term debt, less current portion (Note 10) ​ 1,150,473 ​ 1,150,551 Other liabilities ​ 164,577 ​ 163,356 Total Liabilities ​ 2,284,904 ​ 2,192,709 Shareholders' Equity ​ ​ ​ Common shares, without par value - at stated capital amount; authorized 240,000,000 shares; issued 98,581,434 shares in 2025 and 2024; outstanding 55,826,284 shares in 2025 and 56,211,219 in 2024 ​ 9,858 ​ 9,858 Additional paid-in capital ​ 581,250 ​ 566,740 Retained earnings ​ 4,067,213 ​ 3,993,016 Accumulated other comprehensive loss ​ ( 270,912 ) ​ ( 300,135 ) Treasury shares, at cost - 42,755,150 shares in 2025 and 42,370,215 shares in 2024 ​ ( 3,047,239 ) ​ ( 2,942,046 ) Total Equity ​ 1,340,170 ​ 1,327,433 TOTAL LIABILITIES AND TOTAL EQUITY ​ $ 3,625,074 ​ $ 3,520,142 ​ 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, 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ Common ​ ​ ​ ​ Additional ​ ​ ​ ​ Other ​ ​ ​ ​ ​ ​ ​ ​ Shares ​ Common ​ Paid-In ​ Retained ​ Comprehensive ​ Treasury ​ ​ ​ ​ Outstanding Shares Capital Earnings Income (Loss) Shares Total Balance at December 31, 2023 56,977 ​ $ 9,858 ​ $ 523,357 ​ $ 3,688,038 ​ $ ( 229,847 ) ​ $ ( 2,682,554 ) ​ $ 1,308,852 Net income ​ ​ ​ ​ ​ ​ ​ ​ ​ 123,415 ​ ​ ​ ​ ​ ​ ​ 123,415 Unrecognized amounts from defined benefit pension plans, net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 73 ​ ​ ​ ​ 73 Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3,715 ​ ​ ​ ​ 3,715 Currency translation adjustment, net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 13,395 ) ​ ​ ​ ​ ( 13,395 ) Cash dividends declared – $ 0.71 per share ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 41,273 ) ​ ​ ​ ​ ​ ​ ​ ( 41,273 ) Stock-based compensation activity 397 ​ ​ ​ ​ ​ 34,981 ​ ​ ​ ​ ​ ​ ​ ​ 3,647 ​ 38,628 Purchase of shares for treasury ( 466 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 110,405 ) ​ ( 110,405 ) Other ​ ​ ​ ​ ​ ​ 2,101 ​ ​ ( 3,883 ) ​ ​ ​ ​ ​ ​ ​ ( 1,782 ) Balance at March 31, 2024 56,908 ​ $ 9,858 ​ $ 560,439 ​ $ 3,766,297 ​ $ ( 239,454 ) ​ $ ( 2,789,312 ) ​ $ 1,307,828 ​ ​ 6 Table of Contents ​ ​ LINCOLN ELECTRIC HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES ​ ​ ​ Net income ​ $ 118,487 ​ $ 123,415 Adjustments to reconcile Net income to Net cash provided by operating activities: ​ ​ ​ Rationalization and asset impairment net charges ​ — ​ 64 Depreciation and amortization ​ 23,784 ​ 21,586 Deferred income taxes ​ ( 5,838 ) ​ ( 7,348 ) Stock-based compensation ​ 8,352 ​ 14,190 Other, net ​ 282 ​ 5,104 Changes in operating assets and liabilities, net of effects from acquisitions: ​ ​ ​ Increase in accounts receivable ​ ( 34,108 ) ​ ( 9,603 ) Increase in inventories ​ ( 20,167 ) ​ ( 9,416 ) Decrease in other current assets ​ 2,057 ​ 3,331 Increase in trade accounts payable ​ 64,884 ​ 3,957 Increase (decrease) in other current liabilities ​ 21,206 ​ ( 8,121 ) Net change in other assets and liabilities ​ 6,754 ​ ( 3,865 ) NET CASH PROVIDED BY OPERATING ACTIVITIES ​ 185,693 ​ 133,294 CASH FLOWS FROM INVESTING ACTIVITIES ​ ​ ​ Capital expenditures ​ ( 26,949 ) ​ ( 26,256 ) Proceeds from sale of property, plant and equipment ​ 4,646 ​ 316 NET CASH USED BY INVESTING ACTIVITIES ​ ( 22,303 ) ​ ( 25,940 ) CASH FLOWS FROM FINANCING ACTIVITIES ​ ​ ​ (Payments on) proceeds from short-term borrowings ​ ​ ( 904 ) ​ ​ 2,016 Payments on long-term borrowings ​ ( 169 ) ​ ( 169 ) Proceeds from exercise of stock options ​ 6,254 ​ 24,438 Purchase of shares for treasury ​ ( 106,694 ) ​ ( 110,405 ) Cash dividends paid to shareholders ​ ( 42,975 ) ​ ( 41,280 ) NET CASH USED BY FINANCING ACTIVITIES ​ ( 144,488 ) ​ ( 125,400 ) Effect of exchange rate changes on Cash and cash equivalents ​ ( 1,459 ) ​ ( 763 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ​ 17,443 ​ ( 18,809 ) ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at beginning of period ​ 377,262 ​ 393,787 CASH AND CASH EQUIVALENTS AT END OF PERIOD ​ $ 394,705 ​ $ 374,978 ​ See notes to these consolidated financial statements. ​ ​ 7 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 three months ended March 31, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025. The accompanying Condensed Consolidated Balance Sheet at December 31, 2024 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, 2024. 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. The following ASUs were adopted as of January 1, 2025: Standard Description ASU No. 2023-09, Income Taxes (Topic 740), issued December 2023. Requires disclosure of specific categories in rate reconciliation and additional information for reconciling items that meet a quantitative threshold, additional information about income taxes paid, and disclosure of disaggregated income tax information. The Company will adopt the required disclosures for the 2025 annual period. ​ ​ 8 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. 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 permitted. ASU No. 2023-06, Disclosure Improvement s , issued October 2023 Requires amending certain disclosure and presentation requirements for a variety of topics within the ASC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or S-K becomes effective, or June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. ​ ​ ​ NOTE 2 — REVENUE RECOGNITION The following table presents the Company’s Net sales disaggregated by product line: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2025 2024 Consumables ​ $ 520,603 ​ $ 527,738 Equipment ​ 483,785 ​ 453,459 Net sales ​ $ 1,004,388 ​ $ 981,197 ​ Consumable sales consist of welding, brazing and soldering filler metals. Equipment sales consist of arc welding equipment, welding accessories, wire feeding systems, fume control equipment, plasma and oxy-fuel cutting systems, specialty gas regulators, and education solutions; as well as a comprehensive portfolio of automated 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. Within the Equipment 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 Net sales are recognized over time. At March 31, 2025, the Company recorded $ 44,822 related to advance customer payments and $ 59,324 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, 2024, the balances related to advance customer payments and billings in excess of revenue recognized were $ 63,473 and $ 57,960 , 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. At March 31, 2025 and December 31, 2024, the Company recorded $ 87,263 and $ 81,781 , 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. 9 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts NOTE 3 — EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2025 2024 Numerator: ​ ​ ​ Net income ​ $ 118,487 ​ $ 123,415 ​ Denominator (shares in 000's): ​ ​ ​ ​ ​ Basic weighted average shares outstanding ​ 56,058 ​ 56,865 ​ Effect of dilutive securities - Stock options and awards ​ 469 ​ 776 ​ Diluted weighted average shares outstanding ​ 56,527 ​ 57,641 ​ Basic earnings per share ​ $ 2.11 ​ $ 2.17 ​ Diluted earnings per share ​ $ 2.10 ​ $ 2.14 ​ ​ For the three months ended March 31, 2025 and 2024, common shares subject to equity-based awards of 21,704 and 25,147 , respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. NOTE 4 — ACQUISITIONS ​ On April 1, 2025, the Company acquired an approximate 35 % ownership interest of Alloy Steel Australia (Int) Pty Ltd. (“Alloy Steel”), a privately held manufacturer of maintenance and repair solutions, for a purchase price of approximately $ 43,000 . Alloy Steel supplies proprietary technology, engineering services and digital monitoring to the mining sector. ​ The acquired companies discussed below are accounted for as business combinations and are included in the consolidated financial statements as of the date of acquisition. The acquired companies are not material individually, or in the aggregate, to the actual or pro forma Consolidated Statements of Income or Consolidated Statements of Cash Flows; as such, pro forma information related to these acquisitions has not been presented. ​ On July 30, 2024, the Company acquired 100 % ownership of Vanair Manufacturing, LLC (“Vanair”), a privately held, Michigan City, Indiana-based, manufacturer for a total purchase price of $ 109,993 , net of cash acquired and certain debt-like items. Vanair offers a comprehensive portfolio of mobile power solutions, including vehicle-mounted compressors, generators, welders, hydraulics, chargers/boosters and electrified power equipment. ​ On June 3, 2024, the Company acquired 100 % ownership of Inrotech A/S (“Inrotech”), a privately held automation system integration and technology firm headquartered in Odense, Denmark. The purchase price was $ 42,352 , net of cash acquired. Inrotech specializes in automated welding systems that are differentiated by proprietary adaptive intelligence software and computer vision which guides and optimizes the welding process without the need for programming or the use of computer aided design files. The state-of-the-art vision-based technology is used in the shipbuilding, energy, and heavy industry sectors, where welding accessibility can be challenging for traditional automated systems, but precision and quality are mission critical. ​ On April 1, 2024, the Company acquired 100 % ownership of Superior Controls, LLC (“RedViking”), a privately held automation system integrator based in Plymouth, Michigan. The purchase price was $ 108,844 , net of cash acquired. RedViking specializes in the development and integration of state-of-the-art autonomous guided vehicles and mobile robots, custom assembly and dynamic test systems, and proprietary manufacturing execution system software. ​ During the three months ended March 31, 2025 and 2024, the Company recognized acquisition costs of $ 802 and $ 1,762 , respectively, which are included in Selling, general & administrative expenses on the Consolidated Statements of Income and are expensed as incurred. 10 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts ​ NOTE 5 — SEGMENT INFORMATION The Company’s primary business is the design, development and manufacture of arc welding products, automated joining, assembly and cutting systems, plasma and oxy-fuel cutting equipment. The Company also has a leading global position in brazing and soldering alloys. The Company’s products include arc welding, brazing and soldering filler metals (consumables), arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, and education solutions; as well as a comprehensive portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing. 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. EBIT is defined as Operating income plus Other income. Segment EBIT is 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. 11 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts The following table presents Adjusted EBIT by segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Harris ​ ​ ​ ​ ​ ​ ​ ​ Americas ​ International ​ Products ​ Corporate / ​ ​ ​ ​ Welding Welding Group Eliminations Consolidated Three Months Ended March 31, 2025 ​ ​ ​ ​ ​ Net sales ​ $ 653,107 ​ $ 219,061 ​ $ 132,220 ​ $ — ​ $ 1,004,388 Inter-segment sales ​ 30,372 ​ ​ 6,832 ​ ​ 3,984 ​ ​ ( 41,188 ) ​ ​ — Total ​ ​ 683,479 ​ ​ 225,893 ​ ​ 136,204 ​ ​ ( 41,188 ) ​ ​ 1,004,388 Cost of goods sold ​ ​ 417,700 ​ ​ 163,442 ​ ​ 97,974 ​ ​ ( 40,176 ) ​ ​ 638,940 Gross profit ​ ​ 265,779 ​ ​ 62,451 ​ ​ 38,230 ​ ​ ( 1,012 ) ​ ​ 365,448 Other segment expenses (3) ​ ​ 143,716 ​ ​ 40,851 ​ ​ 14,079 ​ ​ 1,440 ​ ​ 200,086 EBIT ​ ​ 122,063 ​ ​ 21,600 ​ ​ 24,151 ​ ​ ( 2,452 ) ​ ​ 165,362 Special items charge (1) ​ ​ 2,135 ​ ​ 1,412 ​ ​ 178 ​ ​ 802 ​ ​ 4,527 Adjusted EBIT ​ $ 124,198 ​ $ 23,012 ​ $ 24,329 ​ $ ( 1,650 ) ​ $ 169,889 Special items charge (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 4,527 ) Interest income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,255 Interest expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 14,382 ) Income before income taxes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 153,235 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 2,445,066 ​ $ 1,093,775 ​ $ 388,804 ​ $ ( 302,571 ) ​ $ 3,625,074 Capital expenditures ​ ​ 21,766 ​ ​ 3,608 ​ ​ 1,575 ​ ​ — ​ ​ 26,949 Depreciation and amortization ​ ​ 16,114 ​ ​ 5,378 ​ ​ 2,663 ​ ​ ( 371 ) ​ ​ 23,784 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ ​ ​ ​ ​ Net sales ​ $ 624,099 ​ $ 235,761 ​ $ 121,337 ​ $ — ​ $ 981,197 Inter-segment sales ​ 29,978 ​ 8,408 ​ 3,093 ​ ( 41,479 ) ​ ​ — Total ​ ​ 654,077 ​ ​ 244,169 ​ ​ 124,430 ​ ​ ( 41,479 ) ​ ​ 981,197 Cost of goods sold ​ ​ 388,605 ​ ​ 175,047 ​ ​ 90,730 ​ ​ ( 41,584 ) ​ ​ 612,798 Gross profit ​ ​ 265,472 ​ ​ 69,122 ​ ​ 33,700 ​ ​ 105 ​ ​ 368,399 Other segment expenses (3) ​ ​ 129,372 ​ ​ 44,415 ​ ​ 15,358 ​ ​ 11,945 ​ ​ 201,090 EBIT ​ $ 136,100 ​ $ 24,707 ​ $ 18,342 ​ $ ( 11,840 ) ​ $ 167,309 Special items charge (2) ​ — ​ 3,069 ​ 1,536 ​ 1,762 ​ ​ 6,367 Adjusted EBIT ​ $ 136,100 ​ $ 27,776 ​ $ 19,878 ​ $ ( 10,078 ) ​ $ 173,676 Special items charge (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 6,367 ) Interest income ​ ​ ​ ​ ​ ​ ​ 3,221 Interest expense ​ ​ ​ ​ ​ ​ ​ ( 12,000 ) Income before income taxes ​ ​ ​ ​ ​ ​ ​ $ 158,530 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 2,354,812 ​ $ 987,321 ​ $ 353,485 ​ $ ( 315,901 ) ​ $ 3,379,717 Capital expenditures ​ ​ 21,853 ​ ​ 3,423 ​ ​ 980 ​ ​ — ​ ​ 26,256 Depreciation and amortization ​ ​ 14,086 ​ ​ 5,313 ​ ​ 2,426 ​ ​ ( 239 ) ​ ​ 21,586 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) In the three months ended March 31, 2025, special items primarily include Rationalization and asset impairment net charges of $ 2,135 , $ 1,552 and $ 178 in Americas Welding, International Welding and The Harris Products Group, respectively, as discussed in Note 6 and Acquisition transaction costs of $ 802 in Corporate/Eliminations. (2) In the three months ended March 31, 2024, special items include Rationalization and asset impairment net charges of $ 3,069 and $ 1,536 in International Welding and The Harris Products Group, respectively, as discussed in Note 6 and Acquisition transaction costs of $ 1,762 in Corporate/Eliminations. (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. ​ 12 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS The Company has rationalization plans within International Welding, Americas Welding and The Harris Products Group. 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. As a result of these plans, in the three months ended March 31, 2025, the Company recorded Rationalization and asset impairment net charges of $ 2,135 in Americas Welding, $ 1,552 in International Welding and $ 178 in The Harris Products Group. In the three months ended March 31, 2024, the Company recorded Rationalization and asset impairment net charges of $ 3,069 in International Welding and $ 1,536 in The Harris Products Group. At March 31, 2025 and December 31, 2024, rationalization liabilities of $ 7,598 and $ 14,146 , 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. 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 three months ended March 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Americas ​ International The Harris Products ​ ​ ​ Welding ​ Welding Group Consolidated Balance at December 31, 2024 ​ $ 5,628 ​ $ 7,562 ​ $ 956 ​ $ 14,146 Payments and other adjustments ​ ( 6,693 ) ​ ( 2,974 ) ​ ( 746 ) ​ ( 10,413 ) Charged to expense ​ 2,135 ​ 1,552 ​ 178 ​ 3,865 Balance at March 31, 2025 ​ $ 1,070 ​ $ 6,140 ​ $ 388 ​ $ 7,598 ​ ​ 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 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 ) ​ ​ ​ ​ 13 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ ​ 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, 2023 ​ $ 16,536 ​ $ ( 1,996 ) ​ $ ( 244,387 ) ​ $ ( 229,847 ) Other comprehensive income (loss) before reclassification ​ 4,528 ​ — ​ ( 13,395 ) ​ ( 8,867 ) Amounts reclassified from AOCI ​ ( 813 ) ​ 73 ​ — ​ ( 740 ) Net current-period other comprehensive income (loss) ​ 3,715 ​ 73 ​ ( 13,395 ) ​ ( 9,607 ) Balance at March 31, 2024 ​ $ 20,251 ​ $ ( 1,923 ) ​ $ ( 257,782 ) ​ $ ( 239,454 ) ​ ​ ​ NOTE 8 — INVENTORIES Inventories in the Condensed Consolidated Balance Sheets are comprised of the following components: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 December 31, 2024 Raw materials ​ $ 162,629 ​ $ 153,596 Work-in-process ​ 120,963 ​ 123,406 Finished goods ​ 290,737 ​ 267,035 Total ​ $ 574,329 ​ $ 544,037 ​ At both March 31, 2025 and December 31, 2024, approximately 35 % of total inventories were valued using the last-in, first-out ("LIFO") method. The excess of current cost over LIFO cost was $ 122,394 and $ 120,633 at March 31, 2025 and December 31, 2024, respectively. 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 March 31, 2025 December 31, 2024 Right-of-use assets Other assets ​ $ 51,324 ​ $ 54,276 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities Other current liabilities ​ $ 12,833 ​ $ 13,110 Noncurrent liabilities Other liabilities ​ 39,445 ​ 42,124 Total lease liabilities ​ $ 52,278 ​ $ 55,234 ​ Total lease expense, which is included in Cost of goods sold and Selling, general & administrative expenses in the Company’s Consolidated Statements of Income, was $ 5,890 and $ 6,161 in the three months ended March 31, 2025 and 2024, respectively. Cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2025 and 2024, was $ 2,552 and $ 4,049 , respectively, are included in Net cash provided by operating activities in the Company’s Consolidated Statements of Cash Flows. Right-of-use assets obtained in exchange for operating lease liabilities during the three months ended March 31, 2025 and 2024 were $ 254 and $ 3,546 , respectively. 14 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts The total future minimum lease payments for noncancelable operating leases were as follows: ​ ​ ​ ​ ​ ​ March 31, 2025 2025 ​ $ 12,241 2026 ​ 12,499 2027 ​ 9,909 2028 ​ 8,125 2029 ​ 5,411 After 2029 ​ 11,576 Total lease payments ​ $ 59,761 Less: Imputed interest ​ 7,483 Operating lease liabilities ​ $ 52,278 ​ As of March 31, 2025 the weighted average remaining lease term is 6.3 years and the weighted average discount rate used to determine the operating lease liability is 3.7 %. ​ ​ N OTE 10 — DEBT At March 31, 2025 and December 31, 2024, debt consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 December 31, 2024 Long-term debt Interest Rate ​ ​ Senior Unsecured Notes ​ ​ ​ ​ ​ ​ ​ ​ ​ 2015 Notes - Series A due August 20, 2025 ​ 3.15 % ​ $ 100,000 ​ $ 100,000 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) ​ ​ 9 ​ 10 ​ ​ ​ ​ ​ 1,250,009 ​ 1,250,010 Plus interest rate swap adjustment ​ ​ ​ ​ ​ 3,186 ​ ​ 3,355 Less current portion ​ ​ ​ ​ 100,004 ​ 100,004 Less debt issuance costs ​ ​ ​ ​ ​ 2,718 ​ 2,810 Long-term debt, less current portion ​ ​ ​ ​ 1,150,473 ​ 1,150,551 Short-term debt ​ ​ ​ ​ ​ ​ ​ ​ Amounts due to banks ​ Variable (2) ​ ​ 9,616 ​ 10,520 Current portion long-term debt ​ ​ ​ ​ 100,004 ​ 100,004 Total short-term debt ​ ​ ​ ​ 109,620 ​ 110,524 Total debt ​ ​ ​ ​ $ 1,260,093 ​ $ 1,261,075 ​ (1) Interest rate was 7.97 % at both March 31, 2025 and December 31, 2024. (2) Weighted average interest rate of other borrowings related to liquidity needs in a hyperinflationary country was 44.8 % and 47.8 % as of March 31, 2025 and December 31, 2024, respectively. ​ 15 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 March 31, 2025, the Company’s total weighted average effective interest rate and remaining weighted average tenure of the senior unsecured notes is 4.08 %, including the impact from terminated swap agreements, and 8.7 years, respectively. The senior unsecured notes contain certain affirmative and negative covenants. As of March 31, 2025, 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 March 31, 2025, 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 $ 31,457 . As of March 31, 2025, the Company was in compliance with all of its covenants and had outstanding debt under short-term lines of credit of $ 4,391 . Fair Value of Debt At March 31, 2025 and December 31, 2024, the fair value of long-term debt, including the current portion, was approximately $ 1,200,149 and $ 1,184,313 , 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 $ 1,250,477 and $ 1,250,555 , 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 recognized $ 34,748 of tax expense on pretax income of $ 153,235 , resulting in an effective income tax rate of 22.7 % for the three months ended March 31, 2025. The effective income tax rate was 22.2 % for the three months ended March 31, 2024. The effective tax rate was higher for the three months ended March 31, 2025, as compared with the same period in 2024, primarily due to mix of earnings and discrete tax items. 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 months ended March 31, 2025 and 2024. 16 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts 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 March 31, 2025. 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 $ 88,276 and $ 96,444 at March 31, 2025 and December 31, 2024, respectively. The Company had interest rate forward starting swap agreements that were qualified and designated as cash flow hedges that were terminated during 2024. Upon termination of the contracts in 2024, the company had a gain of $ 25,852 recorded in AOCI that will be amortized to Interest expense, net over the life of the associated debt. Net Investment Hedges The Company has foreign currency forward contracts that qualify and are designated as net investment hedges. The dollar equivalent gross notional amount of these contracts was $ 354,894 and $ 319,450 at March 31, 2025 and December 31, 2024, 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 $ 380,684 and $ 421,754 at March 31, 2025 and December 31, 2024, respectively. Fair values of derivative instruments in the Company’s Condensed Consolidated Balance Sheets consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 ​ December 31, 2024 ​ 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 $ 1,131 ​ $ 822 ​ $ — ​ $ — ​ $ 1,663 ​ $ 2,972 ​ $ — ​ $ — Net investment contracts ​ — ​ ​ 8,479 ​ ​ — ​ ​ — ​ ​ 10,276 ​ ​ — ​ ​ — ​ ​ — Not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts 893 ​ ​ 1,330 ​ ​ — ​ ​ — ​ 1,560 ​ 4,251 ​ — ​ — Total derivatives $ 2,024 ​ $ 10,631 ​ $ — ​ $ — ​ $ 13,499 ​ $ 7,223 ​ $ — ​ $ — ​ The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, Derivatives by hedge designation Classification of gain (loss) 2025 2024 Not designated as hedges: ​ ​ ​ ​ Foreign exchange contracts ​ Selling, general & administrative expenses ​ $ 8,333 ​ $ ( 1,615 ) ​ 17 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts The effects of designated hedges on AOCI consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total gain (loss) recognized in AOCI, net of tax March 31, 2025 December 31, 2024 Foreign exchange contracts ​ $ 394 ​ $ ( 812 ) ​ Forward starting swap agreements ​ ​ 17,690 ​ ​ 18,067 ​ Net investment contracts ​ ​ 13,583 ​ 20,403 ​ ​ The Company expects a gain of $ 394 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 March 31, ​ ​ (Loss) gain recognized in the ​ ​ ​ ​ ​ ​ Derivative type Consolidated Statements of Income: 2025 2024 Foreign exchange contracts Sales ​ $ ( 713 ) ​ $ 839 ​ Cost of goods sold ​ 361 ​ 232 Commodity contracts ​ Cost of goods sold ​ ​ — ​ ​ 2 Forward starting swap agreements ​ Interest expense, net ​ ​ 689 ​ ​ — ​ ​ ​ NOTE 13 - FAIR VALUE The following table provides a summary of assets and liabilities as of March 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 March 31, 2025 (Level 1) (Level 2) Inputs (Level 3) Assets: ​ ​ ​ ​ Foreign exchange contracts ​ $ 2,024 ​ $ — ​ $ 2,024 ​ $ — Pension surplus ​ ​ 23,691 ​ ​ 23,691 ​ ​ — ​ ​ — Total assets ​ $ 25,715 ​ $ 23,691 ​ $ 2,024 ​ $ — Liabilities: ​ ​ ​ ​ Foreign exchange contracts ​ $ 2,152 ​ $ — ​ $ 2,152 ​ $ — Net investment contracts ​ ​ 8,479 ​ ​ — ​ ​ 8,479 ​ ​ — Deferred compensation ​ 53,356 ​ — ​ 53,356 ​ — Total liabilities ​ $ 63,987 ​ $ — ​ $ 63,987 ​ $ — ​ 18 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, 2024, 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, 2024 (Level 1) (Level 2) Inputs (Level 3) Assets: ​ ​ ​ ​ Foreign exchange contracts ​ $ 3,223 ​ $ — ​ $ 3,223 ​ $ — Net investment contracts ​ ​ 10,276 ​ ​ — ​ ​ 10,276 ​ ​ — Pension Surplus ​ 27,059 ​ 27,059 ​ — ​ — Total assets ​ $ 40,558 ​ $ 27,059 ​ $ 13,499 ​ $ — Liabilities: ​ ​ ​ ​ Foreign exchange contracts ​ $ 7,223 ​ $ — ​ $ 7,223 ​ $ — Deferred compensation ​ 55,425 ​ — ​ 55,425 ​ — Total liabilities ​ $ 62,648 ​ $ — ​ $ 62,648 ​ $ — ​ 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 are invested in money market and short-term duration bond funds at March 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 March 31, 2025 and December 31, 2024. 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 March 31, 2025 and December 31, 2024, Trade accounts payable included $ 33,938 and $ 29,164 , respectively, payable to suppliers that have elected to participate in the supplier financing program. (1) ​ ​ 19 Table of Contents