What changed in this filing

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Item 1. Financial Statements

2026-04-30 compared with 2025-10-30 · 128 added, 253 removed, 407 unchanged (48% of the section changed)

4 unchanged sentences

Three Months Ended

Nine Months Ended

September 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 September 30,

Nine Months Ended September 30,

Other comprehensive income (loss), net of tax:

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

Three Months Ended March 31,

Other comprehensive (loss) income, net of tax:

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

Defined benefit pension plan activity

Currency translation adjustment

Other comprehensive income (loss):

Other comprehensive (loss) income:

Comprehensive income

3 unchanged sentences

(Dollars in thousands)

September 30, 2025

March 31, 2026

December 31, 2025

39 unchanged sentences

Defined benefit pension plan activity, net of tax

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

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

Currency translation adjustment, net of tax

4 unchanged sentences

( 3,332,980 )

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 )

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.

CONSOLIDATED STATEMENTS OF EQUITY

(In thousands, except per share amounts)

Comprehensive

10 unchanged sentences

( 3,047,239 )

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 )

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)

Nine Months Ended September 30,

Three Months Ended March 31,

CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments to reconcile Net income to Net cash provided by operating activities:

Rationalization and asset impairment net charges

Depreciation and amortization

1 unchanged sentence

Stock-based compensation

Pension settlement net charges

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

Decrease in accounts receivable

Increase in accounts receivable

Increase in inventories

Increase in other current assets

Increase (decrease) in trade accounts payable

Increase in other current liabilities

(Increase) decrease in other current assets

Increase in trade accounts payable

(Decrease) increase in other current liabilities

Net change in other assets and liabilities

6 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from short-term borrowings

Proceeds from long-term borrowings

Proceeds from (payments on) short-term borrowings, net

Payments on long-term borrowings

18 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 nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025.

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026.

The accompanying Condensed Consolidated Balance Sheet at December 31, 2025 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 ASU was adopted as of January 1, 2025:

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.

LINCOLN ELECTRIC HOLDINGS, INC.

2 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

2025-09, Derivatives and Hedging , issued November 2025

Updates hedge accounting guidance to better align financial reporting with risk management activities.

The amendments are effective for annual periods beginning after December 15, 2026 and interim periods within those annual reporting periods.

Early adoption is permitted.

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

Updates requirements for capitalization of internal-use software costs.

4 unchanged sentences

The amendments are effective for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028.

Early adoption is permitted.

2023-06, Disclosure Improvements, 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.

1 unchanged sentence

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

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

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.

Equipment sales consist of arc welding equipment, laser, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, mobile power equipment, wear solutions, software and education solutions.

Automation sales consist of a comprehensive portfolio of 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.

Automation products are sold within the Company’s Americas Welding and International Welding operating segments.

Within the Automation 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 September 30, 2025, the Company recorded $ 49,608 related to advance customer payments and $ 43,427 related to billings in excess of revenue recognized.

Approximately 10 % of the Company’s consolidated Net sales are recognized over time.

At March 31, 2026, the Company recorded $ 42,404 related to advance customer payments and $ 53,660 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 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.

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

Dollars in thousands, except per share amounts

At March 31, 2026 and December 31, 2025, the Company recorded $ 86,576 and $ 78,211 , 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.

NOTE 3 — EARNINGS PER SHARE

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

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Denominator (shares in 000's):

4 unchanged sentences

Diluted earnings per share

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.

For the three months ended March 31, 2026 and 2025, common shares subject to equity-based awards of 39,570 and 21,704 , respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.

NOTE 4 — ACQUISITIONS

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

The acquired company discussed below is accounted for as a business combination and is included in the consolidated financial statements as of the date of acquisition.

The acquired company is not material to the actual or pro forma Consolidated Statements of Income or Consolidated Statements of Cash Flows;

as such, pro forma information related to this acquisition has not been presented.

On April 1, 2025, the Company acquired a 35 % ownership interest in 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.

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

In total, the Company acquired 100 % ownership of Alloy Steel for a total purchase price of $ 130,060 , 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.

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 $ 107,447 , net of cash acquired.

During the three months ended March 31, 2026 and 2025, the Company recognized acquisition costs of $ 356 and $ 802 , respectively, which are included in Selling, general & administrative expenses on the Consolidated Statements of Income and are expensed as incurred.

NOTE 5 — SEGMENT INFORMATION

The Company is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure.

The Company’s innovative solutions enable higher quality and productivity across a variety of processes including welding, cutting, brazing, machining, process automation, and field repair.

The Company’s products include arc welding equipment, filler metals (welding, brazing and soldering consumables),cutting systems (laser, plasma and oxyfuel), wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, mobile power equipment, wear solutions, software, and education solutions;

as well as a comprehensive portfolio of automated solutions and system integration services for joining, cutting, material

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

Dollars in thousands, except per share amounts

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 $ 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.

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.

handling, module assembly, and end of line testing.

Services include additive manufacturing, precision fabrication, wear services, upfitting, and training.

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.

13 unchanged sentences

International

Three Months Ended September 30, 2025

Inter-segment sales

Reconciliation to Consolidated Net sales

Elimination of inter-segment sales

Cost of goods sold (1)

Other segment expenses (1) (3)

Special items charge (1)

Segment Adjusted EBIT

Other Segment Information

Capital expenditures

Depreciation and amortization

Three Months Ended September 30, 2024

Inter-segment sales

Reconciliation to Consolidated Net sales

Elimination of inter-segment sales

Cost of goods sold (2)

Other segment expenses (2) (3)

Special items charge (2)

Segment Adjusted EBIT

Other Segment Information

Capital expenditures

Depreciation and amortization

(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:

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

International

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Inter-segment sales

3 unchanged sentences

Other segment expenses (1) (3)

Special items charge (1)

Special items (charges) gain (1)

Segment Adjusted EBIT

2 unchanged sentences

Depreciation and amortization

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Inter-segment sales

8 unchanged sentences

Depreciation and amortization

(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.

(1) In the three months ended March 31, 2026, special items within Other Segment expenses primarily include Rationalization and asset impairment net charges of $ 573 in Americas Welding, $ 1,772 in International Welding, and a net gain of $ 182 in The Harris Products Group, as discussed in Note 6.

(2) In the three months ended March 31, 2025, special items within Other Segment expenses 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.

(3) Other segment expenses primarily include:

5 unchanged sentences

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

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Reconciliation of Segment Adjusted EBIT to Consolidated Income before income taxes

2 unchanged sentences

Corporate special items charge (1)

Elimination of inter-segment profit

Elimination of inter-segment loss (profit)

Unallocated corporate expenses, net

2 unchanged sentences

Consolidated Income before income taxes

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

Reconciliation of Other Segment Information to Consolidated Information

5 unchanged sentences

Consolidated totals

Reconciliation of Segment Assets to Consolidated Assets

September 30, 2025

(1) Corporate special items primarily include transaction costs.

March 31, 2026

December 31, 2025

Reconciliation of Segment Assets to Consolidated Assets

Americas Welding

International Welding

The Harris Products Group

Total Segment Assets

5 unchanged sentences

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 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 following table presents Rationalization and asset impairment net charges by segment:

Three Months Ended March 31,

Americas Welding

International Welding

The Harris Products Group

At March 31, 2026 and December 31, 2025, rationalization liabilities of $ 4,140 and $ 7,085 , 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.

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

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:

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, 2026:

International

3 unchanged sentences

Charged to expense

Balance at September 30, 2025

Balance at March 31, 2026

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 September 30, 2025

Three Months Ended March 31, 2026

Unrealized gain

3 unchanged sentences

qualifying as cash

Balance at June 30, 2025

Balance at December 31, 2025

Other comprehensive income (loss) before reclassification

Amounts reclassified from AOCI

Net current-period other comprehensive income (loss)

Balance at September 30, 2025

Three Months Ended September 30, 2024

Unrealized gain

(loss) on derivatives

designated and

Defined benefit

qualifying as cash

Balance at June 30, 2024

Other comprehensive (loss) income before reclassification

Amounts reclassified from AOCI

Net current-period other comprehensive (loss) income

Balance at September 30, 2024

Nine Months Ended September 30, 2025

Net current-period other comprehensive loss

Balance at March 31, 2026

Three Months Ended March 31, 2025

Unrealized gain

7 unchanged sentences

Net current-period other comprehensive income (loss)

Balance at September 30, 2025

Balance at March 31, 2025

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

Dollars in thousands, except per share amounts

Nine Months Ended September 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

Amounts reclassified from AOCI

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:

September 30, 2025

March 31, 2026

December 31, 2025

2 unchanged sentences

Finished goods

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.

At both March 31, 2026 and December 31, 2025, approximately 38 % of total inventories were valued using the last-in, first-out ("LIFO") method.

The excess of current cost over LIFO cost was $ 139,427 and $ 138,589 at March 31, 2026 and December 31, 2025, respectively.

NOTE 9 — LEASES

2 unchanged sentences

Balance Sheet Classification

September 30, 2025

March 31, 2026

December 31, 2025

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 $ 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:

September 30, 2025

March 31, 2026

Total lease payments

1 unchanged sentence

Operating lease liabilities

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 %.

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

Other information related to leases was as follows:

Three Months Ended March 31,

Lease expense (1)

Cash paid for amounts included in the measurement of lease liabilities (2)

Right-of-use assets obtained in exchange for operating lease liabilities

Weighted average discount rate

Weighted average remaining lease term

(1) Amounts are included in Costs of goods sold and Selling, general and administrative expenses in the Company’s Consolidated Statement of Income.

(2) Amounts are included in Net Cash Provided by Operating Activities in the Company’s Consolidated Statement of Cash Flows.

N OTE 10 — DEBT

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

September 30, 2025

At March 31, 2026 and December 31, 2025, debt consisted of the following:

March 31, 2026

December 31, 2025

2 unchanged sentences

Senior Unsecured Notes

2015 Notes - Series A due August 20, 2025 (1)

2015 Notes - Series B due August 20, 2030

17 unchanged sentences

Total short-term debt

(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.

(1) Interest rate was 7.97 % at December 31, 2025.

(2) Weighted average interest rate on the revolving credit facility was 4.7 % as of both March 31, 2026 and December 31, 2025.

Weighted average interest rate of other lines of credit related to liquidity needs in a hyperinflationary country was 41.6 % as of December 31, 2025.

LINCOLN ELECTRIC HOLDINGS, INC.

2 unchanged sentences

Senior Unsecured Notes

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.

As of March 31, 2026, 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 8.4 years, respectively.

The senior unsecured notes contain certain affirmative and negative covenants.

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.

As of March 31, 2026, 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 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.

As of March 31, 2026, the Company was in compliance with all of its covenants.

The Company had borrowings under the revolving credit facility of $ 163,502 as of March 31, 2026.

The Company has other lines of credit and debt agreements totaling $ 24,982 .

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 .

As of March 31, 2026, the Company was in compliance with all of its covenants and had no outstanding debt under short-term lines of credit.

Fair Value of Debt

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.

At March 31, 2026 and December 31, 2025, the fair value of long-term debt, including the current portion, was approximately $ 1,075,384 and $ 1,125,338 , 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 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.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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.

The Company recognized $ 36,972 of tax expense on pre-tax income of $ 173,354 , resulting in an effective income tax rate of 21.3 % for the three months ended March 31, 2026.

The effective income tax rate was 22.7 % for the three months ended March 31, 2025.

The effective tax rate was lower for the three months ended March 31, 2026, as compared with the same period in 2025, primarily due to the mix of earnings and timing of discrete tax items.

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 nine months ended September 30, 2025 and 2024.

Hedge ineffectiveness was immaterial in the three months ended March 31, 2026 and 2025.

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 September 30, 2025.

None of the concentrations of risk with any individual counterparty

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

was considered significant at March 31, 2026.

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 $ 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.

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.

The dollar equivalent gross notional amount of these short-term contracts was $ 76,794 and $ 88,555 at March 31, 2026 and December 31, 2025, respectively.

Net Investment Hedges

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.

The dollar equivalent gross notional amount of the foreign currency forward contracts and zero-cost collar contracts were $ 269,566 and $ 337,659 at March 31, 2026 and December 31, 2025, 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 $ 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

The dollar equivalent gross notional amount of these contracts was $ 409,689 and $ 370,668 at March 31, 2026 and December 31, 2025, respectively.

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

September 30, 2025

March 31, 2026

December 31, 2025

7 unchanged sentences

The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following:

Three Months Ended

Nine Months Ended

September 30,

Three Months Ended March 31,

Derivatives by hedge designation

Classification of gain (loss)

Classification of (loss) gain

Not designated as hedges:

1 unchanged sentence

Selling, general & 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

September 30, 2025

March 31, 2026

December 31, 2025

4 unchanged sentences

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

Three Months Ended

Nine Months Ended

Gain (loss) recognized in the

September 30,

Three Months Ended March 31,

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 September 30, 2025, measured at fair value on a recurring basis:

The following table provides a summary of assets and liabilities as of March 31, 2026, measured at fair value on a recurring basis:

Quoted Prices in

4 unchanged sentences

Observable Inputs

September 30, 2025

March 31, 2026

Inputs (Level 3)

6 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, 2025, measured at fair value on a recurring basis:

11 unchanged sentences

Foreign exchange contracts

Net investment contracts

Deferred compensation

1 unchanged sentence

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 September 30, 2025 and December 31, 2024.

The pension surplus assets were invested in money market and short-term duration bond funds at both March 31, 2026 and December 31, 2025.

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.

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

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 September 30, 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 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.

At March 31, 2026 and December 31, 2025, Trade accounts payable included $ 28,639 and $ 25,709 , 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