LINCOLN ELECTRIC HOLDINGS INC 10-Q

ITEM 1. FINANCIAL STATEMENTS LINCOLN ELECTRIC HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Net sales (Note 2) ​ ​ ​ $ 1,121,434 ​ ​ ​ $ 1,004,388 Cost of goods sold ​ 722,302 ​ 638,940 Gross profit ​ 399,132 ​ 365,448 Selling, general & administrative expenses ​ 210,811 ​ 196,665 Rationalization and asset impairment net charges (Note 6) ​ 2,163 ​ 3,865 Operating income ​ 186,158 ​ 164,918 Interest expense, net ​ 13,374 ​ 12,127 Other income ​ 570 ​ 444 Income before income taxes ​ 173,354 ​ 153,235 Income taxes (Note 11) ​ 36,972 ​ 34,748 Net income ​ $ 136,382 ​ $ 118,487 ​ ​ ​ ​ ​ ​ ​ Basic earnings per share (Note 3) ​ $ 2.49 ​ $ 2.11 Diluted earnings per share (Note 3) ​ $ 2.47 ​ $ 2.10 Cash dividends declared per share ​ $ 0.79 ​ $ 0.75 ​ See notes to these consolidated financial statements. ​ 3 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Net income ​ ​ ​ $ 136,382 ​ ​ ​ $ 118,487 Other comprehensive (loss) income, net of tax: ​ ​ ​ ​ Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges ​ ​ ( 1,323 ) ​ ​ 829 Defined benefit pension plan activity ​ ​ ( 56 ) ​ ​ ( 1,285 ) Currency translation adjustment ​ ( 6,459 ) ​ 29,679 Other comprehensive (loss) income: ​ ( 7,838 ) ​ 29,223 Comprehensive income ​ $ 128,544 ​ $ 147,710 ​ See notes to these consolidated financial statements. ​ ​ 4 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ December 31, 2025 ​ ​ (UNAUDITED) ​ (NOTE 1) ASSETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current Assets ​ ​ ​ ​ Cash and cash equivalents ​ $ 298,903 ​ $ 308,789 Accounts receivable (less allowance for doubtful accounts of $ 10,662 in 2026; $ 11,326 in 2025) ​ 598,315 ​ 538,791 Inventories (Note 8) ​ 693,938 ​ 633,364 Other current assets ​ 272,288 ​ 258,568 Total Current Assets ​ 1,863,444 ​ 1,739,512 Property, plant and equipment (less accumulated depreciation of $ 954,195 in 2026; $ 942,806 in 2025) ​ ​ 720,836 ​ ​ 702,762 Goodwill ​ 886,373 ​ 886,686 Other assets ​ 429,742 ​ 448,617 TOTAL ASSETS ​ $ 3,900,395 ​ $ 3,777,577 LIABILITIES AND EQUITY ​ ​ ​ ​ Current Liabilities ​ ​ ​ ​ Short-term debt (Note 10) ​ $ 163,502 ​ $ 143,780 Trade accounts payable ​ 448,138 ​ 364,934 Accrued employee compensation and benefits ​ 110,861 ​ 116,158 Other current liabilities ​ 297,856 ​ 331,819 Total Current Liabilities ​ 1,020,357 ​ 956,691 Long-term debt, less current portion (Note 10) ​ 1,150,138 ​ 1,150,228 Other liabilities ​ 218,640 ​ 200,864 Total Liabilities ​ 2,389,135 ​ 2,307,783 Shareholders' Equity ​ ​ ​ ​ Common shares, without par value - at stated capital amount; authorized 240,000,000 shares; issued 98,581,434 shares in 2026 and 2025; outstanding 54,787,110 shares in 2026 and 54,845,950 in 2025 ​ 9,858 ​ 9,858 Additional paid-in capital ​ 612,391 ​ 601,566 Retained earnings ​ 4,435,760 ​ 4,342,080 Accumulated other comprehensive loss ​ ( 213,769 ) ​ ( 205,931 ) Treasury shares, at cost - 43,794,324 shares in 2026 and 43,735,484 shares in 2025 ​ ( 3,332,980 ) ​ ( 3,277,779 ) Total Equity ​ 1,511,260 ​ 1,469,794 TOTAL LIABILITIES AND TOTAL EQUITY ​ $ 3,900,395 ​ $ 3,777,577 ​ See notes to these consolidated financial statements. ​ ​ ​ 5 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common ​ ​ ​ ​ Additional ​ ​ ​ ​ Other ​ ​ ​ ​ ​ ​ ​ ​ Shares ​ Common ​ Paid-In ​ Retained ​ Comprehensive ​ Treasury ​ ​ ​ ​ ​ ​ ​ Outstanding ​ ​ ​ Shares ​ ​ ​ Capital ​ ​ ​ Earnings ​ ​ ​ Income (Loss) ​ ​ ​ Shares ​ ​ ​ Total Balance at December 31, 2025 54,846 ​ $ 9,858 ​ $ 601,566 ​ $ 4,342,080 ​ $ ( 205,931 ) ​ $ ( 3,277,779 ) ​ $ 1,469,794 Net income ​ ​ ​ ​ ​ ​ ​ ​ ​ 136,382 ​ ​ ​ ​ ​ ​ ​ 136,382 Defined benefit pension plan activity, net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 56 ) ​ ​ ​ ​ ( 56 ) Unrealized loss on derivatives designated and qualifying as cash flow hedges, net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 1,323 ) ​ ​ ​ ​ ( 1,323 ) Currency translation adjustment, net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 6,459 ) ​ ​ ​ ​ ( 6,459 ) Cash dividends declared – $ 0.79 per share ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 43,408 ) ​ ​ ​ ​ ​ ​ ​ ( 43,408 ) Stock-based compensation activity 151 ​ ​ ​ ​ ​ 16,670 ​ ​ ​ ​ ​ ​ ​ ​ 1,469 ​ 18,139 Purchase of shares for treasury ( 210 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 56,670 ) ​ ( 56,670 ) Other ​ ​ ​ ​ ​ ​ ( 5,845 ) ​ ​ 706 ​ ​ ​ ​ ​ ​ ​ ( 5,139 ) Balance at March 31, 2026 54,787 ​ $ 9,858 ​ $ 612,391 ​ $ 4,435,760 ​ $ ( 213,769 ) ​ $ ( 3,332,980 ) ​ $ 1,511,260 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common ​ ​ ​ ​ Additional ​ ​ ​ ​ Other ​ ​ ​ ​ ​ ​ ​ ​ Shares ​ Common ​ Paid-In ​ Retained ​ Comprehensive ​ Treasury ​ ​ ​ ​ ​ ​ ​ Outstanding ​ ​ ​ Shares ​ ​ ​ Capital ​ ​ ​ Earnings ​ ​ ​ Income (Loss) ​ ​ ​ Shares ​ ​ ​ Total Balance at December 31, 2024 56,211 ​ $ 9,858 ​ $ 566,740 ​ $ 3,993,016 ​ $ ( 300,135 ) ​ $ ( 2,942,046 ) ​ $ 1,327,433 Net income ​ ​ ​ ​ ​ ​ ​ ​ ​ 118,487 ​ ​ ​ ​ ​ ​ ​ 118,487 Defined benefit pension plan activity, net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 1,285 ) ​ ​ ​ ​ ( 1,285 ) Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 829 ​ ​ ​ ​ 829 Currency translation adjustment, net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 29,679 ​ ​ ​ ​ 29,679 Cash dividends declared – $ 0.75 per share ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 42,073 ) ​ ​ ​ ​ ​ ​ ​ ( 42,073 ) Stock-based compensation activity 157 ​ ​ ​ ​ ​ 13,105 ​ ​ ​ ​ ​ ​ ​ ​ 1,501 ​ 14,606 Purchase of shares for treasury ( 542 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 106,694 ) ​ ( 106,694 ) Other ​ ​ ​ ​ ​ ​ 1,405 ​ ​ ( 2,217 ) ​ ​ ​ ​ ​ ​ ​ ( 812 ) Balance at March 31, 2025 55,826 ​ $ 9,858 ​ $ 581,250 ​ $ 4,067,213 ​ $ ( 270,912 ) ​ $ ( 3,047,239 ) ​ $ 1,340,170 ​ ​ 6 Table of Contents ​ LINCOLN ELECTRIC HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 CASH FLOWS FROM OPERATING ACTIVITIES ​ ​ ​ ​ ​ Net income ​ $ 136,382 ​ $ 118,487 Adjustments to reconcile Net income to Net cash provided by operating activities: ​ ​ ​ ​ Depreciation and amortization ​ 26,009 ​ 23,784 Deferred income taxes ​ 22,533 ​ ( 5,838 ) Stock-based compensation ​ 9,580 ​ 8,352 Other, net ​ ( 1,516 ) ​ 282 Changes in operating assets and liabilities, net of effects from acquisitions: ​ ​ ​ ​ Increase in accounts receivable ​ ( 60,212 ) ​ ( 34,108 ) Increase in inventories ​ ( 61,876 ) ​ ( 20,167 ) (Increase) decrease in other current assets ​ ( 13,471 ) ​ 2,057 Increase in trade accounts payable ​ 83,784 ​ 64,884 (Decrease) increase in other current liabilities ​ ( 43,138 ) ​ 21,206 Net change in other assets and liabilities ​ 4,095 ​ 6,754 NET CASH PROVIDED BY OPERATING ACTIVITIES ​ 102,170 ​ 185,693 CASH FLOWS FROM INVESTING ACTIVITIES ​ ​ ​ ​ Capital expenditures ​ ( 39,163 ) ​ ( 26,949 ) Acquisition of businesses, net of cash acquired ​ 140 ​ — Proceeds from sale of property, plant and equipment ​ 308 ​ 4,646 NET CASH USED BY INVESTING ACTIVITIES ​ ( 38,715 ) ​ ( 22,303 ) CASH FLOWS FROM FINANCING ACTIVITIES ​ ​ ​ ​ Proceeds from (payments on) short-term borrowings, net ​ ​ 19,613 ​ ​ ( 904 ) Payments on long-term borrowings ​ — ​ ( 169 ) Proceeds from exercise of stock options ​ 8,559 ​ 6,254 Purchase of shares for treasury ​ ( 56,670 ) ​ ( 106,694 ) Cash dividends paid to shareholders ​ ( 44,071 ) ​ ( 42,975 ) NET CASH USED BY FINANCING ACTIVITIES ​ ( 72,569 ) ​ ( 144,488 ) Effect of exchange rate changes on Cash and cash equivalents ​ ( 772 ) ​ ( 1,459 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ​ ( 9,886 ) ​ 17,443 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at beginning of period ​ 308,789 ​ 377,262 CASH AND CASH EQUIVALENTS AT END OF PERIOD ​ $ 298,903 ​ $ 394,705 ​ See notes to these consolidated financial statements. ​ ​ 7 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Dollars in thousands, except per share amounts NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Lincoln Electric Holdings, Inc. and its wholly-owned and majority-owned subsidiaries for which it has a controlling interest (the “Company”) after elimination of all inter-company accounts, transactions and profits. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. However, in the opinion of management, these unaudited consolidated financial statements contain all the adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position, results of operations and cash flows for the interim periods. Operating results for the three months ended March 31, 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. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Certain reclassifications have been made to the prior period amounts to conform to the current period presentation, none of which are material. New Accounting Pronouncements: This section provides a description of new accounting pronouncements (“Accounting Standards Updates” or “ASUs”) issued by the Financial Accounting Standards Board (“FASB”) that are applicable to the Company. ​ ​ 8 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts The Company is currently evaluating the impact on its financial statements of the following ASUs: ​ Standard Description ASU No. 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. ASU No. 2025-06, 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. ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures , issued November 2024 Requires enhanced disclosures of specified information about certain costs and expenses. The amendments are effective for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028. Early adoption is prohibited. ​ ​ ​ ​ NOTE 2 — REVENUE RECOGNITION The following table presents the Company’s Net sales disaggregated by product line: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Consumables ​ $ 636,009 ​ $ 520,603 ​ Equipment ​ 275,157 ​ 268,507 ​ Automation ​ ​ 210,268 ​ ​ 215,278 ​ Net sales ​ $ 1,121,434 ​ $ 1,004,388 ​ ​ Consumable sales consist of welding, brazing and soldering filler metals. 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. 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 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. At December 31, 2025, the balances related to advance customer payments and billings in excess of revenue recognized were $ 49,451 and $ 62,778 , respectively. Substantially all of the Company’s contract liabilities are recognized within twelve months based on contract duration. The Company records an asset for contracts where it has recognized revenue, but has not yet invoiced the customer for goods or services. 9 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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 March 31, ​ 2026 2025 Numerator: ​ ​ ​ ​ Net income ​ $ 136,382 ​ $ 118,487 Denominator (shares in 000's): ​ ​ ​ ​ Basic weighted average shares outstanding ​ 54,822 ​ 56,058 Effect of dilutive securities - Stock options and awards ​ 495 ​ 469 Diluted weighted average shares outstanding ​ 55,317 ​ 56,527 Basic earnings per share ​ $ 2.49 ​ $ 2.11 Diluted earnings per share ​ $ 2.47 ​ $ 2.10 ​ 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 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 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. ​ 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 10 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts 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. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global cutting, soldering and brazing businesses, specialty gas equipment, as well as its retail business in the United States. ​ Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the adjusted earnings before interest and income taxes ("Adjusted EBIT") profit measure. 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. The CODM uses segment Adjusted EBIT to allocate resources for each segment predominantly in establishing the Company’s long-term strategy and in developing the annual budget. The CODM considers actual performance using Adjusted EBIT when making decisions about allocating capital and resources to the segments. 11 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts The following tables present Adjusted EBIT by segment and other segment information: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Harris ​ ​ ​ ​ ​ Americas ​ International ​ Products ​ ​ ​ ​ ​ ​ ​ Welding ​ ​ ​ Welding ​ ​ ​ Group ​ ​ ​ Total Three Months Ended March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 706,225 ​ $ 227,035 ​ $ 188,174 ​ $ 1,121,434 Inter-segment sales ​ 36,709 ​ 5,807 ​ 4,664 ​ ​ 47,180 ​ ​ ​ 742,934 ​ ​ 232,842 ​ ​ 192,838 ​ ​ 1,168,614 Reconciliation to Consolidated Net sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Elimination of inter-segment sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 47,180 ) Net sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,121,434 Cost of goods sold ​ ​ 464,890 ​ ​ 167,084 ​ ​ 137,600 ​ ​ ​ Other segment expenses (1) (3) ​ ​ 151,149 ​ ​ 44,868 ​ ​ 14,247 ​ ​ ​ Addback: Special items (charges) gain (1) ​ ( 573 ) ​ ( 1,772 ) ​ 182 ​ ​ ​ Segment Adjusted EBIT ​ $ 127,468 ​ $ 22,662 ​ $ 40,809 ​ $ 190,939 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Segment Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ $ ( 26,983 ) ​ $ ( 9,315 ) ​ $ ( 2,865 ) ​ $ ( 39,163 ) Depreciation and amortization ​ ​ 17,774 ​ ​ 6,682 ​ ​ 2,649 ​ ​ 27,105 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 653,107 ​ $ 219,061 ​ $ 132,220 ​ $ 1,004,388 Inter-segment sales ​ 30,372 ​ 6,832 ​ 3,984 ​ ​ 41,188 ​ ​ ​ 683,479 ​ ​ 225,893 ​ ​ 136,204 ​ ​ 1,045,576 Reconciliation to Consolidated Net sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Elimination of inter-segment sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 41,188 ) Net sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,004,388 Cost of goods sold ​ ​ 417,700 ​ ​ 163,442 ​ ​ 97,974 ​ ​ ​ Other segment expenses (2) (3) ​ ​ 143,716 ​ ​ 40,851 ​ ​ 14,079 ​ ​ ​ Addback: Special items charge (2) ​ ( 2,135 ) ​ ( 1,412 ) ​ ( 178 ) ​ ​ ​ Segment Adjusted EBIT ​ $ 124,198 ​ $ 23,012 ​ $ 24,329 ​ $ 171,539 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Segment Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ $ ( 21,766 ) ​ $ ( 3,608 ) ​ $ ( 1,575 ) ​ $ ( 26,949 ) Depreciation and amortization ​ ​ 16,114 ​ ​ 5,378 ​ ​ 2,663 ​ ​ 24,155 ​ (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: a. Selling, general & administrative expenses – including bonus and research and development expenses. b. Rationalization and asset impairment net charges – refer to Note 6 for further discussion. ​ 12 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts The following table presents reconciliations of segment information to the Company’s consolidated totals: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ 2026 ​ ​ 2025 Reconciliation of Segment Adjusted EBIT to Consolidated Income before income taxes ​ ​ ​ ​ ​ ​ Segment Adjusted EBIT ​ $ 190,939 ​ $ 171,539 Addback: Segment special items charge ​ ​ ( 2,163 ) ​ ​ ( 3,725 ) Corporate special items charge (1) ​ ​ ( 653 ) ​ ​ ( 802 ) Elimination of inter-segment loss (profit) ​ ​ 92 ​ ​ ( 1,012 ) Unallocated corporate expenses, net ​ ​ ( 1,487 ) ​ ​ ( 638 ) Interest income ​ 1,385 ​ 2,255 Interest expense ​ ( 14,759 ) ​ ( 14,382 ) Consolidated Income before income taxes ​ $ 173,354 ​ $ 153,235 ​ ​ ​ ​ ​ ​ ​ Reconciliation of Other Segment Information to Consolidated Information ​ ​ ​ ​ ​ ​ Capital expenditures ​ ​ ​ ​ ​ ​ Segment totals ​ $ ( 39,163 ) ​ $ ( 26,949 ) Adjustments ​ ​ — ​ ​ — Consolidated totals ​ $ ( 39,163 ) ​ $ ( 26,949 ) ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ ​ ​ ​ ​ ​ Segment totals ​ $ 27,105 ​ $ 24,155 Adjustments ​ ​ ( 1,096 ) ​ ​ ( 371 ) Consolidated totals ​ $ 26,009 ​ $ 23,784 ​ ​ ​ ​ ​ ​ ​ (1) Corporate special items primarily include transaction costs. ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ December 31, 2025 Reconciliation of Segment Assets to Consolidated Assets ​ ​ ​ ​ ​ ​ Americas Welding ​ $ 2,524,416 ​ $ 2,464,376 International Welding ​ ​ 1,233,435 ​ ​ 1,244,117 The Harris Products Group ​ ​ 494,690 ​ ​ 431,259 Total Segment Assets ​ ​ 4,252,541 ​ ​ 4,139,752 Corporate Assets ​ ​ 36,588 ​ ​ 41,033 LIFO reserve not allocated to segments ​ ​ ( 139,427 ) ​ ​ ( 138,589 ) Eliminations ​ ​ ( 249,307 ) ​ ​ ( 264,619 ) Total Consolidated Assets ​ $ 3,900,395 ​ $ 3,777,577 ​ ​ NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS 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. The following table presents Rationalization and asset impairment net charges by segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2026 ​ 2025 Americas Welding ​ $ 573 ​ $ 2,135 International Welding ​ 1,772 ​ 1,552 The Harris Products Group ​ ( 182 ) ​ 178 Total ​ $ 2,163 ​ $ 3,865 ​ 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. 13 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Americas ​ International ​ ​ ​ The Harris Products ​ ​ ​ ​ ​ ​ Welding ​ Welding ​ ​ ​ Group ​ ​ ​ Consolidated Balance at December 31, 2025 ​ $ 944 ​ $ 5,713 ​ $ 428 ​ $ 7,085 Payments and other adjustments ​ ( 1,030 ) ​ ( 4,048 ) ​ ( 30 ) ​ ( 5,108 ) Charged to expense ​ 573 ​ 1,772 ​ ( 182 ) ​ 2,163 Balance at March 31, 2026 ​ $ 487 ​ $ 3,437 ​ $ 216 ​ $ 4,140 ​ ​ 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, 2026 ​ ​ Unrealized gain ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (loss) on derivatives ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ designated and ​ Defined benefit ​ Currency ​ ​ ​ ​ ​ qualifying as cash ​ pension plan ​ translation ​ ​ ​ ​ ​ flow hedges ​ activity ​ adjustment ​ Total Balance at December 31, 2025 ​ $ 17,687 ​ $ ( 1,062 ) ​ $ ( 222,556 ) ​ $ ( 205,931 ) Other comprehensive income (loss) before reclassification ​ 1,079 ​ ​ — ​ ​ ( 6,459 ) ​ ​ ( 5,380 ) Amounts reclassified from AOCI ​ ( 2,402 ) ​ ​ ( 56 ) ​ ​ — ​ ​ ( 2,458 ) Net current-period other comprehensive loss ​ ( 1,323 ) ​ ( 56 ) ​ ( 6,459 ) ​ ( 7,838 ) Balance at March 31, 2026 ​ $ 16,364 ​ $ ( 1,118 ) ​ $ ( 229,015 ) ​ $ ( 213,769 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2025 ​ ​ Unrealized gain ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (loss) on derivatives ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ designated and ​ Defined benefit ​ Currency ​ ​ ​ ​ ​ qualifying as cash ​ pension plan ​ translation ​ ​ ​ ​ ​ flow hedges ​ activity ​ adjustment ​ Total Balance at December 31, 2024 ​ $ 17,255 ​ $ ( 1,048 ) ​ $ ( 316,342 ) ​ $ ( 300,135 ) Other comprehensive income before reclassification ​ 1,148 ​ ​ — ​ ​ 29,679 ​ 30,827 Amounts reclassified from AOCI ​ ( 319 ) ​ ​ ( 1,285 ) ​ ​ — ​ ( 1,604 ) Net current-period other comprehensive income (loss) ​ 829 ​ ( 1,285 ) ​ 29,679 ​ 29,223 Balance at March 31, 2025 ​ $ 18,084 ​ $ ( 2,333 ) ​ $ ( 286,663 ) ​ $ ( 270,912 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 14 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts ​ NOTE 8 — INVENTORIES Inventories in the Condensed Consolidated Balance Sheets are comprised of the following components: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 Raw materials ​ $ 155,206 ​ $ 164,440 Work-in-process ​ 157,943 ​ 124,351 Finished goods ​ 380,789 ​ 344,573 Total ​ $ 693,938 ​ $ 633,364 ​ 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 The table below summarizes the right-of-use assets and lease liabilities in the Company’s Condensed Consolidated Balance sheets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Leases ​ ​ ​ Balance Sheet Classification ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 Right-of-use assets Other assets ​ $ 50,887 ​ $ 52,989 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities Other current liabilities ​ $ 13,205 ​ $ 13,460 Noncurrent liabilities Other liabilities ​ 37,996 ​ 40,061 Total lease liabilities ​ ​ $ 51,201 ​ $ 53,521 ​ The total future minimum lease payments for noncancelable operating leases were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 2026 ​ $ 15,376 2027 ​ 12,639 2028 ​ 10,612 2029 ​ 7,739 2030 ​ 4,076 After 2030 ​ 10,597 Total lease payments ​ $ 61,039 Less: Imputed interest ​ 9,838 Operating lease liabilities ​ $ 51,201 ​ 15 Table of Contents 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, ​ ​ ​ ​ ​ 2026 ​ ​ 2025 ​ Lease expense (1) ​ $ 6,624 ​ ​ $ 5,890 ​ Cash paid for amounts included in the measurement of lease liabilities (2) ​ ​ 4,671 ​ ​ ​ 2,552 ​ Right-of-use assets obtained in exchange for operating lease liabilities ​ ​ 1,516 ​ ​ ​ 254 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average discount rate ​ ​ 3.7 % ​ ​ 3.7 % Weighted average remaining lease term ​ ​ 6.0 years ​ ​ ​ 6.3 years ​ ​ (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 March 31, 2026 and December 31, 2025, debt consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 Long-term debt Interest Rate ​ ​ ​ ​ Senior Unsecured Notes ​ ​ ​ ​ ​ ​ ​ ​ ​ 2015 Notes - Series B due August 20, 2030 ​ 3.35 % ​ $ 100,000 ​ $ 100,000 2015 Notes - Series C due April 1, 2035 ​ 3.61 % ​ ​ 50,000 ​ ​ 50,000 2015 Notes - Series D due April 1, 2045 ​ 4.02 % ​ ​ 100,000 ​ ​ 100,000 2016 Notes - Series A due October 20, 2028 ​ 2.75 % ​ ​ 100,000 ​ ​ 100,000 2016 Notes - Series B due October 20, 2033 ​ 3.03 % ​ ​ 100,000 ​ ​ 100,000 2016 Notes - Series C due October 20, 2037 ​ 3.27 % ​ ​ 100,000 ​ ​ 100,000 2016 Notes - Series D due October 20, 2041 ​ 3.52 % ​ ​ 50,000 ​ ​ 50,000 2024 Notes - Series A due August 22, 2029 ​ 5.55 % ​ ​ 75,000 ​ ​ 75,000 2024 Notes - Series B due August 22, 2031 ​ 5.62 % ​ ​ 75,000 ​ ​ 75,000 2024 Notes - Series C due June 20, 2034 ​ 5.74 % ​ ​ 400,000 ​ ​ 400,000 Other borrowings due through 2030 ​ Variable (1) ​ ​ — ​ 10 ​ ​ ​ ​ ​ 1,150,000 ​ 1,150,010 Plus interest rate swap adjustment ​ ​ ​ ​ ​ 2,508 ​ ​ 2,678 Less current portion ​ ​ ​ ​ — ​ — Less debt issuance costs ​ ​ ​ ​ ​ 2,370 ​ ​ 2,460 Long-term debt, less current portion ​ ​ ​ ​ 1,150,138 ​ 1,150,228 Short-term debt ​ ​ ​ ​ ​ ​ ​ Amounts due to banks ​ Variable (2) ​ ​ 163,502 ​ 143,780 Current portion long-term debt ​ ​ ​ ​ — ​ — Total short-term debt ​ ​ ​ ​ 163,502 ​ 143,780 Total debt ​ ​ ​ ​ $ 1,313,640 ​ $ 1,294,008 ​ (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. 16 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts Senior Unsecured Notes As of March 31, 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 March 31, 2026, the Company was in compliance with all of its debt covenants relating to the senior unsecured notes. Revolving Credit Agreements On June 20, 2024, the Company entered into a $ 1 billion revolving credit facility, which may be increased, subject to certain conditions including the consent of its lenders, by an additional amount up to $ 300,000 . The revolving credit facility matures on June 20, 2029. The revolving credit facility will initially bear interest on outstanding borrowings at a per annum rate equal to secured overnight finance rate (“ SOFR ”) plus 1.10 % and could fluctuate based on the Company’s total net leverage ratio at a spread ranging from SOFR plus 1.10 % to SOFR plus 1.60 %. The financial covenants consist of a maximum net leverage ratio of 3.5 x EBITDA and a minimum interest coverage ratio of 2.5 x EBITDA. The revolving credit facility contains customary representations and warranties, as well as customary affirmative, negative and financial covenants for credit facilities of this type (subject to negotiated baskets and exceptions), including limitations on the Company and its subsidiaries with respect to liens, investments, distributions, mergers and acquisitions, dispositions of assets and transactions with affiliates. As of March 31, 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 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 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. The carrying value of this debt at such dates was $ 1,150,138 and $ 1,150,232 , respectively. Since judgment is required in interpreting market information, the fair value of the debt is not necessarily the amount which could be realized in a current market exchange. NOTE 11 — INCOME TAXES The Company recognized $ 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 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, 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 17 Table of Contents 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. Cash Flow Hedges Certain foreign currency forward contracts are qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $ 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 $ 269,566 and $ 337,659 at March 31, 2026 and December 31, 2025, respectively. Derivatives Not Designated as Hedging Instruments The Company has certain foreign exchange forward contracts that are not designated as hedges. These derivatives are held as economic hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ December 31, 2025 ​ Other ​ Other ​ ​ ​ ​ ​ ​ ​ Other ​ Other ​ ​ ​ ​ ​ ​ ​ Current ​ Current ​ Other ​ Other ​ Current ​ Current ​ Other ​ Other Derivatives by hedge designation Assets ​ ​ ​ Liabilities ​ ​ ​ Assets ​ ​ ​ Liabilities ​ ​ ​ Assets ​ ​ ​ Liabilities ​ ​ ​ Assets ​ ​ ​ Liabilities Designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts $ 1,507 ​ $ 482 ​ $ — ​ $ — ​ $ 2,149 ​ $ 289 ​ $ — ​ $ — Net investment contracts ​ 3,784 ​ ​ 1,255 ​ ​ — ​ ​ — ​ ​ 102 ​ ​ 12,529 ​ ​ — ​ ​ — Not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts 1,419 ​ ​ 1,587 ​ ​ — ​ ​ — ​ 582 ​ 470 ​ — ​ — Total derivatives $ 6,710 ​ $ 3,324 ​ $ — ​ $ — ​ $ 2,833 ​ $ 13,288 ​ $ — ​ $ — ​ The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, Derivatives by hedge designation ​ ​ ​ Classification of (loss) gain ​ ​ ​ 2026 ​ ​ ​ 2025 Not designated as hedges: ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ Selling, general & administrative expenses ​ $ ( 3,353 ) ​ $ 8,333 ​ 18 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts The effects of designated hedges on AOCI consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total gain (loss) recognized in AOCI, net of tax ​ ​ ​ March 31, 2026 ​ ​ ​ December 31, 2025 Foreign exchange contracts ​ $ 642 ​ $ 1,396 Forward starting swap agreements ​ ​ 15,722 ​ ​ 16,291 Net investment contracts ​ ​ ( 4,179 ) ​ ( 5,721 ) ​ The Company expects a gain of $ 642 related to existing contracts to be reclassified from AOCI, net of tax, to earnings over the next 12 months as the hedged transactions are realized. ​ The effects of designated hedges on the Company’s Consolidated Statements of Income consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (loss) recognized in the ​ Three Months Ended March 31, Derivative type ​ ​ ​ Consolidated Statements of Income: ​ ​ ​ 2026 ​ ​ ​ 2025 Foreign exchange contracts Sales ​ $ 1,472 ​ $ ( 713 ) ​ Cost of goods sold ​ 1,560 ​ 361 Forward starting swap agreements ​ Interest expense, net ​ ​ 689 ​ ​ 689 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NOTE 13 — FAIR VALUE ​ 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Active Markets for ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Identical Assets or ​ Significant Other ​ Significant ​ ​ Balance as of ​ Liabilities ​ Observable Inputs ​ Unobservable Description ​ ​ ​ March 31, 2026 ​ ​ ​ (Level 1) ​ ​ ​ (Level 2) ​ ​ ​ Inputs (Level 3) Assets: ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ $ 2,926 ​ $ — ​ $ 2,926 ​ $ — Net investment contracts ​ ​ 3,784 ​ ​ — ​ ​ 3,784 ​ ​ — Pension surplus ​ ​ 9,314 ​ ​ 9,314 ​ ​ — ​ ​ — Total assets ​ $ 16,024 ​ $ 9,314 ​ $ 6,710 ​ $ — Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ $ 2,069 ​ $ — ​ $ 2,069 ​ $ — Net investment contracts ​ ​ 1,255 ​ ​ — ​ ​ 1,255 ​ ​ — Deferred compensation ​ 27,867 ​ — ​ 27,867 ​ — Total liabilities ​ $ 31,191 ​ $ — ​ $ 31,191 ​ $ — ​ 19 Table of Contents LINCOLN ELECTRIC HOLDINGS, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Dollars in thousands, except per share amounts The following table provides a summary of assets and liabilities as of December 31, 2025, measured at fair value on a recurring basis: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quoted Prices in ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Active Markets for ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Identical Assets or ​ Significant Other ​ Significant ​ ​ Balance as of ​ Liabilities ​ Observable Inputs ​ Unobservable Description ​ ​ ​ December 31, 2025 ​ ​ ​ (Level 1) ​ ​ ​ (Level 2) ​ ​ ​ Inputs (Level 3) Assets: ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ $ 2,731 ​ $ — ​ $ 2,731 ​ $ — Net investment contracts ​ ​ 102 ​ ​ — ​ ​ 102 ​ ​ — Pension surplus ​ 12,082 ​ 12,082 ​ — ​ — Total assets ​ $ 14,915 ​ $ 12,082 ​ $ 2,833 ​ $ — Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ $ 759 ​ $ — ​ $ 759 ​ $ — Net investment contracts ​ 12,529 ​ — ​ 12,529 ​ — Deferred compensation ​ 24,456 ​ — ​ 24,456 ​ — Total liabilities ​ $ 37,744 ​ $ — ​ $ 37,744 ​ $ — ​ 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 March 31, 2026 and December 31, 2025. The Company’s derivative contracts are valued at fair value using the market approach. The Company measures the fair value of foreign exchange contracts and net investment contracts using Level 2 inputs based on observable spot and forward rates in active markets. The deferred compensation liability is the Company’s obligation under its executive deferred compensation plan. The Company measures the fair value of the liability using the market values of the participants’ underlying investment fund elections. The fair value of Cash and cash equivalents, Accounts receivable, Short-term debt excluding the current portion of Long-term debt and Trade accounts payable approximated book value due to the short-term nature of these instruments at both March 31, 2026 and December 31, 2025. The Company has various financial instruments, including cash and cash equivalents, short and long-term debt and forward contracts. While these financial instruments are subject to concentrations of credit risk, the Company has minimized this risk by entering into arrangements with a number of major banks and financial institutions and investing in several high-quality instruments. The Company does not expect any counterparties to fail to meet their obligations. NOTE 14 — SUPPLIER FINANCING PROGRAM ​ The Company’s suppliers, at the supplier’s sole discretion, are able to factor receivables due from the Company to a financial institution on terms directly negotiated with the financial institution without affecting the Company’s balance sheet classification of the corresponding payable. The Company pays the financial institution the stated amount of the confirmed invoices from its designated suppliers on the original maturity dates of the invoices. At March 31, 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. (1) ​ ​ 20 Table of Contents