What changed in this filing

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Item 1. Financial Statements

2025-10-30 compared with 2025-07-31 · 202 added, 138 removed, 458 unchanged (43% of the section changed)

3 unchanged sentences

(In thousands, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended

Nine Months Ended

September 30,

Net sales (Note 2)

14 unchanged sentences

(In thousands)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Other comprehensive income (loss), net of tax:

8 unchanged sentences

(Dollars in thousands)

June 30, 2025

September 30, 2025

December 31, 2024

54 unchanged sentences

( 3,174,289 )

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 September 30, 2025

( 3,226,314 )

LINCOLN ELECTRIC HOLDINGS, INC.

21 unchanged sentences

( 2,839,641 )

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 September 30, 2024

( 2,889,873 )

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

(In thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES

4 unchanged sentences

Stock-based compensation

Pension settlement net charges

Changes in operating assets and liabilities, net of effects from acquisitions:

Increase in accounts receivable

Decrease in accounts receivable

Increase in inventories

Increase in other current assets

Increase in trade accounts payable

Increase (decrease) in other current liabilities

Increase (decrease) in trade accounts payable

Increase in other current liabilities

Net change in other assets and liabilities

6 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES

Payments on short-term borrowings

Proceeds from short-term borrowings

Proceeds from long-term borrowings

5 unchanged sentences

Effect of exchange rate changes on Cash and cash equivalents

DECREASE IN CASH AND CASH EQUIVALENTS

(DECREASE) INCREASE 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 six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025.

Operating results for the nine months ended September 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.

3 unchanged sentences

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:

The following ASU was adopted as of January 1, 2025:

2023-09, Income Taxes (Topic 740), issued December 2023.

5 unchanged sentences

The Company is currently evaluating the impact on its financial statements of the following ASUs:

2025-06, Intangibles—Goodwill and Other—Internal-Use Software, issued September 2025

Updates requirements for capitalization of internal-use software costs.

The amendments are effective for annual periods beginning after December 15, 2027 and interim periods within those annual reporting periods.

Early adoption is permitted .

2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, issued November 2024

2 unchanged sentences

Early adoption is permitted.

2023-06, Disclosure Improvement s , issued October 2023

2023-06, Disclosure Improvements, issued October 2023

Requires amending certain disclosure and presentation requirements for a variety of topics within the ASC.

3 unchanged sentences

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

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

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

At September 30, 2025, the Company recorded $ 49,608 related to advance customer payments and $ 43,427 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 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.

At September 30, 2025 and December 31, 2024, the Company recorded $ 109,078 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 June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Denominator (shares in 000's):

4 unchanged sentences

Diluted earnings per share

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.

For the three months ended September 30, 2025 and 2024, common shares subject to equity-based awards of 19,416 and 43,250 , respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.

For the nine months ended September 30, 2025 and 2024, common shares subject to equity-based awards of 2,089 and 38,665 , 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 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.

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.

1 unchanged sentence

as such, pro forma information related to these acquisitions has not been presented.

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 headquartered in Perth, Australia.

On August 1, 2025, the Company acquired the remaining 65 % ownership of Alloy Steel.

In total, the Company acquired 100 % ownership of Alloy Steel for a total purchase price of $ 131,238 , net of cash acquired and certain debt-like items.

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

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 $ 108,651 , net of cash acquired and certain debt-like items.

10 unchanged sentences

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.

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.

The Company recognized acquisition costs of $ 452 and $ 1,683 during the three and nine months ended September 30, 2025, respectively, and $ 610 and $ 4,551 during the three and nine months ended September 30, 2024, respectively.

Acquisition costs are included in Selling, general & administrative expenses on the Consolidated Statements of Income and are expensed as incurred.

10 unchanged sentences

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.

Adjusted EBIT is defined as Operating income plus Other income (expense), 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.

4 unchanged sentences

Dollars in thousands, except per share amounts

The following table presents Adjusted EBIT by segment:

The following tables present Adjusted EBIT by segment and other segment information:

International

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Inter-segment sales

Reconciliation to Consolidated Net sales

Elimination of inter-segment sales

Cost of goods sold (1)

1 unchanged sentence

Special items charge (1)

Adjusted EBIT

Special items charge (1)

Interest income

Interest expense

Income before income taxes

Segment Adjusted EBIT

Other Segment Information

Capital expenditures

Depreciation and amortization

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Inter-segment sales

Reconciliation to Consolidated Net sales

Elimination of inter-segment sales

Cost of goods sold (2)

1 unchanged sentence

Special items charge (2)

Adjusted EBIT

Special items charge (2)

Interest income

Interest expense

Income before income taxes

Segment Adjusted EBIT

Other Segment Information

Capital expenditures

Depreciation and amortization

(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.

(1) In the three months ended September 30, 2025, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of $ 4,150 , $ 1,365 and $ 316 in Americas Welding, International Welding and The Harris Products Group, respectively, as discussed in Note 6.

Special items within Cost of goods sold primarily include an amortization of step up in value of acquired inventories of $ 1,397 in International Welding.

(2) In the three months ended September 30, 2024, special items within Other segment expenses include Rationalization and asset impairment net charges of $ 16,282 , $ 2,676 and $ 1,269 in Americas Welding, International Welding and The Harris Products Group, respectively , and a pension settlement charge of $ 3,966 in Americas Welding.

Special items within Cost of goods sold primarily include an amortization of step up in value of acquired inventories of $ 3,109 and $ 250 in Americas Welding and International Welding, respectively.

(3) Other segment expenses primarily include:

5 unchanged sentences

International

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Inter-segment sales

Reconciliation to Consolidated Net sales

Elimination of inter-segment sales

Cost of goods sold (1)

1 unchanged sentence

Special items charge (1)

Adjusted EBIT

Special items charge (1)

Interest income

Interest expense

Income before income taxes

Segment Adjusted EBIT

Other Segment Information

Capital expenditures

Depreciation and amortization

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Inter-segment sales

Reconciliation to Consolidated Net sales

Elimination of inter-segment sales

Cost of goods sold (2)

1 unchanged sentence

Special items charge (2)

Adjusted EBIT

Special items charge (2)

Interest income

Interest expense

Income before income taxes

Segment Adjusted EBIT

Other Segment Information

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.

(1) In the nine months ended September 30, 2025, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of $ 7,190 , $ 4,468 and $ 580 in Americas Welding, International Welding and The Harris Products Group, respectively, as discussed in Note 6.

Special items within Cost of goods sold primarily include an amortization of step up in value of acquired inventories of $ 1,257 in International Welding.

(2) In the nine months ended September 30, 2024, special items within Other segment expenses include Rationalization and asset impairment net charges of $ 16,521 in Americas Welding, $ 32,030 in International Welding, including the impact of the Company’s disposition of its Russian entity, and $ 2,666 in The Harris Products.

In addition, there was a loss on asset disposal of $ 4,950 recorded to Other (expense) income in International Welding and a pension settlement charge of $ 3,966 in Americas Welding.

Special items within Cost of goods sold primarily include an amortization of step up in value of acquired inventories of $ 3,224 and $ 250 in Americas Welding and International Welding, respectively.

(3) Other segment expenses primarily include:

4 unchanged sentences

Dollars in thousands, except per share amounts

The following table presents reconciliations of segment information to the Company’s consolidated totals:

Three Months Ended September 30,

Nine Months Ended September 30,

Reconciliation of Segment Adjusted EBIT to Consolidated Income before income taxes

Segment Adjusted EBIT

Segment special items charge

Corporate special items charge (1)

Elimination of inter-segment profit

Unallocated corporate expenses, net

Interest income

Interest expense

Consolidated Income before income taxes

(1) Corporate special items primarily include acquisition transaction costs.

Reconciliation of Other Segment Information to Consolidated Information

Capital expenditures

Segment totals

Consolidated totals

Depreciation and amortization

Segment totals

Consolidated totals

Reconciliation of Segment Assets to Consolidated Assets

September 30, 2025

December 31, 2024

Total segment assets

Corporate assets

LIFO reserve not allocated to segments

Total consolidated assets

NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS

1 unchanged sentence

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 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.

As a result of these plans, in the nine months ended September 30, 2025, the Company recorded Rationalization and asset impairment net charges of $ 7,190 in Americas Welding, $ 4,468 in International Welding and $ 580 in The Harris Products Group.

In the nine months ended September 30, 2024, the Company recorded Rationalization and asset impairment net charges of $ 32,030 in International Welding, of which $ 22,566 is associated with the disposal of the Company’s Russian entity.

The Company also incurred Rationalization and asset impairment net charges of $ 16,521 in Americas Welding and $ 2,666 in The Harris Products Group in the same period.

At September 30, 2025 and December 31, 2024, rationalization liabilities of $ 5,731 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 six months ended June 30, 2025:

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

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

International

3 unchanged sentences

Charged to expense

Balance at June 30, 2025

Balance at September 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 June 30, 2025

Three Months Ended September 30, 2025

Unrealized gain

3 unchanged sentences

qualifying as cash

Balance at March 31, 2025

Other comprehensive income before reclassification

Balance at June 30, 2025

Other comprehensive income (loss) before reclassification

Amounts reclassified from AOCI

Net current-period other comprehensive income (loss)

Balance at June 30, 2025

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

Three Months Ended June 30, 2024

Balance at September 30, 2025

Three Months Ended September 30, 2024

Unrealized gain

3 unchanged sentences

qualifying as cash

Balance at March 31, 2024

Other comprehensive loss before reclassification

Balance at June 30, 2024

Other comprehensive (loss) income before reclassification

Amounts reclassified from AOCI

Net current-period other comprehensive (loss) income

Balance at June 30, 2024

Six Months Ended June 30, 2025

Balance at September 30, 2024

Nine Months Ended September 30, 2025

Unrealized gain

7 unchanged sentences

Net current-period other comprehensive income (loss)

Balance at June 30, 2025

Six Months Ended June 30, 2024

Balance at September 30, 2025

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

Nine Months Ended September 30, 2024

Unrealized gain

6 unchanged sentences

Amounts reclassified from AOCI

Net current-period other comprehensive income (loss)

Balance at June 30, 2024

Net current-period other comprehensive (loss) income

Balance at September 30, 2024

NOTE 8 — INVENTORIES

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

June 30, 2025

September 30, 2025

December 31, 2024

2 unchanged sentences

Finished goods

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

At both September 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 $ 135,721 and $ 120,633 at September 30, 2025 and December 31, 2024, respectively.

NOTE 9 — LEASES

2 unchanged sentences

Balance Sheet Classification

June 30, 2025

September 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 $ 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.

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 $ 7,964 and $ 20,298 in the three and nine months ended September 30, 2025 and $ 5,657 and $ 18,390 in the three and nine months ended September 30, 2024, respectively.

Cash paid for amounts included in the measurement of lease liabilities for the three and nine months ended September 30, 2025, respectively, were $ 4,340 and $ 10,882 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 nine months ended September 30, 2024, respectively, were $ 3,771 and $ 11,918 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 $ 6,981 and $ 11,634 during the three and nine months ended September 30, 2025 and $ 5,426 and $ 16,043 during the three and nine months ended September 30, 2024, respectively.

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:

June 30, 2025

September 30, 2025

Total lease payments

1 unchanged sentence

Operating lease liabilities

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

As of September 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 3.7 %.

N OTE 10 — DEBT

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

June 30, 2025

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

September 30, 2025

December 31, 2024

22 unchanged sentences

Total short-term debt

(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.

(1) On August 20, 2025, the Company repaid the Series A notes in full at maturity.

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

(3) Weighted average interest rate on the revolving credit facility was 5.2 % as of September 30, 2025.

Weighted average interest rate of other lines of credit related to liquidity needs in a hyperinflationary country was 44.7 % and 47.8 % as of September 30, 2025 and December 31, 2024, respectively.

LINCOLN ELECTRIC HOLDINGS, INC.

2 unchanged sentences

Senior Unsecured Notes

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.

As of September 30, 2025, the Company’s total weighted average effective interest rate and remaining weighted average tenure of the senior unsecured notes is 4.16 %, including the impact from terminated swap agreements, and 8.9 years, respectively.

The senior unsecured notes contain certain affirmative and negative covenants.

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

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

On August 20, 2025, the Company repaid its $ 100,000 2015 Series A notes in full at maturity.

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 June 30, 2025, the Company was in compliance with all of its covenants and had no outstanding borrowings under the revolving credit facility.

As of September 30, 2025, the Company was in compliance with all of its covenants .

The Company had borrowings under the revolving credit facility of $ 85,000 as of September 30, 2025.

The Company has other lines of credit and debt agreements totaling $ 31,386 .

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 .

As of September 30, 2025, the Company was in compliance with all of its covenants and had outstanding debt under short-term lines of credit of $ 3,199 .

Fair Value of Debt

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.

At September 30, 2025 and December 31, 2024, the fair value of long-term debt, including the current portion, was approximately $ 1,124,349 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 $ 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.

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

Many of the tax provisions within the OBBBA are designed to accelerate tax deductions and could lead to lower tax payments.

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

During the third quarter of 2025, the Company recognized tax expense of approximately $ 8,800 related to the cumulative impact of the OBBBA provisions to date.

This tax expense primarily relates to restoration of immediate expensing for current and previously capitalized domestic research and development expenditures and the reinstatement of 100% bonus depreciation on qualified property both of which impact international tax provisions regarding foreign-derived intangible income.

While the ultimate impact the OBBBA will have on the Company’s financial position, results of operations, and cash flows remains to be determined, the Company expects to realize lower tax payments in the current year.

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

Dollars in thousands, except per share amounts

The Company recognized $ 118,278 of tax expense on pre-tax income of $ 502,789 , resulting in an effective income tax rate of 23.5 % for the nine months ended September 30, 2025.

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

The effective tax rate was lower for the nine months ended September 30, 2025, as compared with the same period in 2024, primarily due to the mix of earnings and timing of discrete tax items partially offset by the impact of the OBBBA as discussed above.

NOTE 12 — DERIVATIVES

1 unchanged sentence

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.

Hedge ineffectiveness was immaterial in the three and nine months ended September 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 June 30, 2025.

None of the concentrations of risk with any individual counterparty was considered significant at September 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 $ 93,502 and $ 96,444 at June 30, 2025 and December 31, 2024, respectively.

The dollar equivalent gross notional amount of these short-term contracts was $ 91,061 and $ 96,444 at September 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.

1 unchanged sentence

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 $ 380,099 and $ 319,450 at June 30, 2025 and December 31, 2024, respectively.

The Company has foreign currency forward contracts and zero-cost collar contracts that qualify and are designated as net investment hedges.

The dollar equivalent gross notional amount of the foreign currency forward contracts and zero-cost collar contracts were $ 376,744 and $ 319,450 at September 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 $ 427,439 and $ 421,754 at June 30, 2025 and December 31, 2024, respectively.

The dollar equivalent gross notional amount of these contracts was $ 479,502 and $ 421,754 at September 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

Fair values of derivative instruments in the Company’s Condensed Consolidated Balance Sheets consisted of the following:

June 30, 2025

September 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 June 30,

Six Months Ended June 30,

Three Months Ended

Nine Months Ended

September 30,

Derivatives by hedge designation

2 unchanged sentences

Foreign exchange contracts

Selling, general

& administrative expenses

Selling, general & administrative expenses

The effects of designated hedges on AOCI consisted of the following:

Total gain (loss) recognized in AOCI, net of tax

June 30, 2025

September 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 June 30,

Six Months Ended June 30,

(Loss) gain recognized in the

Three Months Ended

Nine Months Ended

Gain (loss) recognized in the

September 30,

Derivative type

4 unchanged sentences

Interest expense, net

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

NOTE 13 — FAIR VALUE

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

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

Quoted Prices in

4 unchanged sentences

Observable Inputs

June 30, 2025

September 30, 2025

Inputs (Level 3)

Foreign exchange contracts

Net investment contracts

Pension surplus

3 unchanged sentences

Total liabilities

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:

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

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

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

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 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.

At September 30, 2025 and December 31, 2024, Trade accounts payable included $ 36,599 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