What changed in this filing

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Item 1. Financial Statements

2025-07-31 compared with 2025-04-30 · 173 added, 80 removed, 423 unchanged (37% of the section changed)

3 unchanged sentences

(In thousands, except per share amounts)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Net sales (Note 2)

4 unchanged sentences

Interest expense, net

Other income (expense)

Income before income taxes

7 unchanged sentences

(In thousands)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Other comprehensive income (loss), net of tax:

Unrealized gain on derivatives designated and qualifying as cash flow hedges

Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges

Defined benefit pension plan activity

6 unchanged sentences

(Dollars in thousands)

March 31, 2025

June 30, 2025

December 31, 2024

46 unchanged sentences

( 3,047,239 )

Defined benefit pension plan activity, net of tax

Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax

Currency translation adjustment, net of tax

Cash dividends declared – $ 0.75 per share

Stock-based compensation activity

Purchase of shares for treasury

Balance at June 30, 2025

( 3,174,289 )

LINCOLN ELECTRIC HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(In thousands, except per share amounts)

Comprehensive

2 unchanged sentences

( 2,682,554 )

Unrecognized amounts from defined benefit pension plans, net of tax

Defined benefit pension plan activity, net of tax

Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax

5 unchanged sentences

( 2,789,312 )

Defined benefit pension plan activity, net of tax

Unrealized loss on derivatives designated and qualifying as cash flow hedges, net of tax

Currency translation adjustment, net of tax

Cash dividends declared – $ 0.71 per share

Stock-based compensation activity

Purchase of shares for treasury

Balance at June 30, 2024

( 2,839,641 )

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES

7 unchanged sentences

Increase in inventories

Decrease in other current assets

Increase in other current assets

Increase in trade accounts payable

4 unchanged sentences

Capital expenditures

Acquisition of businesses, net of cash acquired

Proceeds from sale of property, plant and equipment

1 unchanged sentence

CASH FLOWS FROM FINANCING ACTIVITIES

(Payments on) proceeds from short-term borrowings

Payments on short-term borrowings

Proceeds from long-term borrowings

Payments on long-term borrowings

4 unchanged sentences

Effect of exchange rate changes on Cash and cash equivalents

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

DECREASE IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents at beginning of period

11 unchanged sentences

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.

Operating results for the six months ended June 30, 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.

21 unchanged sentences

The following table presents the Company’s Net sales disaggregated by product line:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Consumable sales consist of welding, brazing and soldering filler metals.

6 unchanged sentences

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.

At June 30, 2025, the Company recorded $ 46,861 related to advance customer payments and $ 49,384 related to billings in excess of revenue recognized.

These contract liabilities are included in Other current liabilities in the Condensed Consolidated Balance Sheets.

2 unchanged sentences

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.

At June 30, 2025 and December 31, 2024, the Company recorded $ 98,319 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.

4 unchanged sentences

The following table sets forth the computation of basic and diluted earnings per share:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Denominator (shares in 000's):

4 unchanged sentences

Diluted earnings per share

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.

For the three months ended June 30, 2025 and 2024, common shares subject to equity-based awards of 27,376 and 25,472 , respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.

For the six months ended June 30, 2025 and 2024, common shares subject to equity-based awards of 33,692 and 18,008 , 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 .

On April 1, 2025, the Company acquired a 35 % ownership interest of Alloy Steel Australia (Int) Pty Ltd.

(“Alloy Steel”), a privately held manufacturer of maintenance and repair solutions, for an agreed upon purchase price of approximately $ 45,000 .

Subsequent to June 30, 2025, the Company entered into an agreement to acquire the remaining 65 % of Alloy Steel for approximately $ 90,000 , which is expected to close on August 1, 2025, subject to the satisfaction of customary closing conditions.

Alloy Steel supplies proprietary technology, engineering services and digital monitoring to the mining sector.

10 unchanged sentences

The purchase price was $ 107,447 , 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.

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

Dollars in thousands, except per share amounts

The Company recognized acquisition costs of $ 429 and $ 1,231 during the three and six months ended June 30, 2025, respectively, and $ 2,182 and $ 3,944 during the three and six months ended June 30, 2024, 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

19 unchanged sentences

International

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Inter-segment sales

9 unchanged sentences

Depreciation and amortization

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Inter-segment sales

9 unchanged sentences

Depreciation and amortization

(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.

(1) In the three months ended June 30, 2025, special items primarily include Rationalization and asset impairment net charges of $ 905 , $ 1,551 and $ 86 in Americas Welding, International Welding and The Harris Products Group, respectively, as discussed in Note 6 and Acquisition transaction costs of $ 429 in Corporate/Eliminations.

(2) In the three months ended June 30, 2024, special items include Rationalization and asset impairment net charges of $ 26,284 in International Welding, primarily due to the impact of the Company’s disposition of its Russian entity, as discussed in Note 6, a loss on asset disposal of $ 4,950 recorded to Other income (expense) in International Welding and acquisition transaction costs of $ 2,182 in Corporate/Eliminations.

(3) Other segment expenses primarily include:

4 unchanged sentences

Dollars in thousands, except per share amounts

International

Six Months Ended June 30, 2025

Inter-segment sales

Cost of goods sold

Other segment expenses (3)

Special items charge (1)

Adjusted EBIT

Special items charge (1)

Interest income

Interest expense

Income before income taxes

Capital expenditures

Depreciation and amortization

Six Months Ended June 30, 2024

Inter-segment sales

Cost of goods sold

Other segment expenses (3)

Special items charge (2)

Adjusted EBIT

Special items charge (2)

Interest income

Interest expense

Income before income taxes

Capital expenditures

Depreciation and amortization

(1) In the six months ended June 30, 2025, special items primarily include Rationalization and asset impairment net charges of $ 3,040 , $ 3,103 and $ 264 in Americas Welding, International Welding and The Harris Products Group, respectively, as discussed in Note 6 and Acquisition transaction costs of $ 1,231 in Corporate/Eliminations.

(2) In the six months ended June 30, 2024, special items include Rationalization and asset impairment net charges of $ 29,354 in International Welding , primarily due to the impact of the Company’s disposition of its Russian entity, and $ 1,396 in The Harris Products Group, as discussed in Note 6, a loss on asset disposal of $ 4,950 recorded to Other income (expense) in International Welding and acquisition transaction costs of $ 3,944 in Corporate/Eliminations.

(3) Other segment expenses primarily include:

Selling, general & administrative expenses – including bonus and research and development expenses.

Rationalization and asset impairment net charges – refer to Note 6 for further discussion .

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 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.

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.

As a result of these plans, in the six months ended June 30, 2025, the Company recorded Rationalization and asset impairment net charges of $ 3,040 in Americas Welding, $ 3,103 in International Welding and $ 264 in The Harris Products Group.

In the six months ended June 30, 2024, the Company recorded Rationalization and asset impairment net charges of $ 29,354 in International Welding, of which $ 22,566 is associated with the disposal of the Company’s Russian entity.

In addition, the Company incurred Rationalization and asset impairment net charges of $ 1,396 in The Harris Products Group in the six months ended June 30, 2024.

At June 30, 2025 and December 31, 2024, rationalization liabilities of $ 6,416 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.

1 unchanged sentence

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:

The following table summarizes the activity related to rationalization liabilities for the six months ended June 30, 2025:

International

3 unchanged sentences

Charged to expense

Balance at March 31, 2025

Balance at June 30, 2025

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

Three Months Ended June 30, 2025

Unrealized gain

3 unchanged sentences

qualifying as cash

Balance at December 31, 2024

Balance at March 31, 2025

Other comprehensive income before reclassification

1 unchanged sentence

Net current-period other comprehensive income (loss)

Balance at March 31, 2025

Balance at June 30, 2025

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

Dollars in thousands, except per share amounts

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Unrealized gain

3 unchanged sentences

qualifying as cash

Balance at March 31, 2024

Other comprehensive loss before reclassification

Amounts reclassified from AOCI

Net current-period other comprehensive (loss) income

Balance at June 30, 2024

Six Months Ended June 30, 2025

Unrealized gain

(loss) on derivatives

designated and

Defined benefit

qualifying as cash

Balance at December 31, 2024

Other comprehensive income before reclassification

Amounts reclassified from AOCI

Net current-period other comprehensive income (loss)

Balance at June 30, 2025

Six Months Ended June 30, 2024

Unrealized gain

(loss) on derivatives

designated and

Defined benefit

qualifying as cash

Balance at December 31, 2023

Other comprehensive income (loss) before reclassification

1 unchanged sentence

Net current-period other comprehensive income (loss)

Balance at March 31, 2024

Balance at June 30, 2024

NOTE 8 — INVENTORIES

Inventories in the Condensed Consolidated Balance Sheets are comprised of the following components:

March 31, 2025

June 30, 2025

December 31, 2024

2 unchanged sentences

Finished goods

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.

At both June 30, 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 $ 130,917 and $ 120,633 at June 30, 2025 and December 31, 2024, respectively.

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

NOTE 9 — LEASES

2 unchanged sentences

Balance Sheet Classification

March 31, 2025

June 30, 2025

December 31, 2024

5 unchanged sentences

Total lease liabilities

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.

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

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 $ 6,444 and $ 12,334 in the three and six months ended June 30, 2025 and $ 6,572 and $ 12,733 in the three and six months ended June 30, 2024, respectively.

Cash paid for amounts included in the measurement of lease liabilities for the three and six months ended June 30, 2025, respectively, were $ 3,990 and $ 6,542 and are included in Net cash provided by operating activities in the Company’s Consolidated Statements of Cash Flows.

Cash paid for amounts included in the measurement of lease liabilities for the three and six months ended June 30, 2024, respectively, were $ 4,098 and $ 8,147 and 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 were $ 4,399 and $ 4,653 during the three and six months ended June 30, 2025 and $ 7,071 and $ 10,617 during the three and six months ended June 30, 2024, respectively.

The total future minimum lease payments for noncancelable operating leases were as follows:

March 31, 2025

June 30, 2025

Total lease payments

1 unchanged sentence

Operating lease liabilities

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 %.

As of June 30, 2025 the weighted average remaining lease term is 6.2 years and the weighted average discount rate used to determine the operating lease liability is 3.6 %.

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

N OTE 10 — DEBT

At March 31, 2025 and December 31, 2024, debt consisted of the following:

March 31, 2025

At June 30, 2025 and December 31, 2024, debt consisted of the following:

June 30, 2025

December 31, 2024

22 unchanged sentences

Total short-term debt

(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.

(1) Interest rate was 7.97 % at both June 30, 2025 and December 31, 2024.

(2) Weighted average interest rate of other borrowings related to liquidity needs in a hyperinflationary country was 48.2 % and 47.8 % as of June 30, 2025 and December 31, 2024, respectively.

LINCOLN ELECTRIC HOLDINGS, INC.

2 unchanged sentences

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.

As of June 30, 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 8.5 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.

As of June 30, 2025, the Company was in compliance with all of its debt covenants relating to the senior unsecured notes.

Revolving Credit Agreements

4 unchanged sentences

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.

As of June 30, 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 $ 33,662 .

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 .

As of June 30, 2025, the Company was in compliance with all of its covenants and had outstanding debt under short-term lines of credit of $ 5,319 .

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.

At June 30, 2025 and December 31, 2024, the fair value of long-term debt, including the current portion, was approximately $ 1,209,952 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.

2 unchanged sentences

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.

The Company recognized $ 74,911 of tax expense on pre-tax income of $ 336,794 , resulting in an effective income tax rate of 22.2 % for the six months ended June 30, 2025.

The effective income tax rate was 23.7 % for the six months ended June 30, 2024.

The effective tax rate was lower for the six months ended June 30, 2025, as compared with the same period in 2024, primarily due to mix of earnings and timing of discrete tax items.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

The Company is currently assessing the impact on its consolidated financial statements.

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

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 six months ended June 30, 2025 and 2024.

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.

None of the concentrations of risk with any individual counterparty was considered significant at June 30, 2025.

The Company does not expect any counterparties to fail to meet their obligations.

1 unchanged sentence

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 dollar equivalent gross notional amount of these short-term contracts was $ 93,502 and $ 96,444 at June 30, 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.

2 unchanged sentences

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.

The dollar equivalent gross notional amount of these contracts was $ 380,099 and $ 319,450 at June 30, 2025 and December 31, 2024, respectively.

Derivatives Not Designated as Hedging Instruments

1 unchanged sentence

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.

The dollar equivalent gross notional amount of these contracts was $ 427,439 and $ 421,754 at June 30, 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

June 30, 2025

December 31, 2024

6 unchanged sentences

Total derivatives

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 March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Derivatives by hedge designation

4 unchanged sentences

& administrative expenses

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

June 30, 2025

December 31, 2024

4 unchanged sentences

The effects of designated hedges on the Company’s Consolidated Statements of Income consisted of the following:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(Loss) gain recognized in the

3 unchanged sentences

Cost of goods sold

Commodity contracts

Cost of goods sold

Forward starting swap agreements

1 unchanged sentence

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:

The following table provides a summary of assets and liabilities as of June 30, 2025, measured at fair value on a recurring basis:

Quoted Prices in

4 unchanged sentences

Observable Inputs

March 31, 2025

June 30, 2025

Inputs (Level 3)

24 unchanged sentences

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 pension surplus assets were invested in money market and short-term duration bond funds at both June 30, 2025 and December 31, 2024.

The Company’s derivative contracts are valued at fair value using the market approach.

2 unchanged sentences

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.

4 unchanged sentences

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.

At June 30, 2025 and December 31, 2024, Trade accounts payable included $ 36,865 and $ 29,164 , respectively, payable to suppliers that have elected to participate in the supplier financing program.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements