What changed in this filing

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Item 1. Financial Statements

2026-07-30 compared with 2026-04-30 · 158 added, 74 removed, 461 unchanged (33% of the section changed)

4 unchanged sentences

Three Months Ended

Six Months Ended

Net sales (Note 2)

4 unchanged sentences

Interest expense, net

Other (expense) income

Income before income taxes

7 unchanged sentences

(In thousands)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Other comprehensive (loss) income, net of tax:

2 unchanged sentences

Currency translation adjustment

Other comprehensive (loss) income:

Other comprehensive income (loss):

Comprehensive income

3 unchanged sentences

(Dollars in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

46 unchanged sentences

( 3,332,980 )

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 – $ 0.79 per share

Stock-based compensation activity

Purchase of shares for treasury

Balance at June 30, 2026

( 3,409,039 )

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

Currency translation adjustment, net of tax

Cash dividends declared – $ 0.75 per share

Stock-based compensation activity

Purchase of shares for treasury

Balance at June 30, 2025

( 3,174,289 )

LINCOLN ELECTRIC HOLDINGS, INC.

1 unchanged sentence

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES

6 unchanged sentences

Increase in inventories

(Increase) decrease in other current assets

Decrease (increase) in other current assets

Increase in trade accounts payable

8 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES

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

Payments on short-term borrowings, net

Payments on long-term borrowings

4 unchanged sentences

Effect of exchange rate changes on Cash and cash equivalents

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

DECREASE IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents at beginning of period

11 unchanged sentences

However, in the opinion of management, these unaudited consolidated financial statements contain all the adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position, results of operations and cash flows for the interim periods.

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

Operating results for the six months ended June 30, 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.

21 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

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

7 unchanged sentences

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.

At June 30, 2026, the Company recorded $ 41,105 related to advance customer payments and $ 41,855 related to billings in excess of revenue recognized.

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

5 unchanged sentences

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.

At June 30, 2026 and December 31, 2025, the Company recorded $ 77,035 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.

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Denominator (shares in 000's):

4 unchanged sentences

Diluted earnings per share

For the three months ended March 31, 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.

For the three months ended June 30, 2026 and 2025, common shares subject to equity-based awards of 37,641 and 27,376 , 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, 2026 and 2025, common shares subject to equity-based awards of 50,156 and 33,692 , respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.

NOTE 4 — ACQUISITIONS

7 unchanged sentences

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.

The Company recognized acquisition costs of $ 356 during the six months ended June 30, 2026 , and $ 429 and $ 1,231 during the three and six months ended June 30, 2025, 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

1 unchanged sentence

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

handling, module assembly, and end of line testing.

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 handling, module assembly, and end of line testing.

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

14 unchanged sentences

International

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Inter-segment sales

3 unchanged sentences

Other segment expenses (1) (3)

Special items (charges) gain (1)

Special items charge (1)

Segment Adjusted EBIT

2 unchanged sentences

Depreciation and amortization

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Inter-segment sales

8 unchanged sentences

Depreciation and amortization

(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.

(1) In the three months ended June 30, 2026, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of $ 1,012 , $ 2,282 , and $ 187 in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6.

(2) In the three months ended June 30, 2025, special items within Other segment expenses 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.

(3) Other segment expenses primarily include:

4 unchanged sentences

Dollars in thousands, except per share amounts

International

Six Months Ended June 30, 2026

Inter-segment sales

Reconciliation to Consolidated Net sales

Elimination of inter-segment sales

Cost of goods sold

Other segment expenses (1) (3)

Special items charge (1)

Segment Adjusted EBIT

Other Segment Information

Capital expenditures

Depreciation and amortization

Six Months Ended June 30, 2025

Inter-segment sales

Reconciliation to Consolidated Net sales

Elimination of inter-segment sales

Cost of goods sold

Other segment expenses (2) (3)

Special items charge (2)

Segment Adjusted EBIT

Other Segment Information

Capital expenditures

Depreciation and amortization

(1) In the six months ended June 30, 2026, special items within Other segment expenses primarily include Rationalization and asset impairment net charges of $ 1,585 , $ 4,054 , and $ 5 in Americas Welding, International Welding, and The Harris Products Group, respectively, as discussed in Note 6.

(2) In the six months ended June 30, 2025, special items within Other segment expenses 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.

(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

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Reconciliation of Segment Adjusted EBIT to Consolidated Income before income taxes

2 unchanged sentences

Corporate special items charge (1)

Elimination of inter-segment loss (profit)

Elimination of inter-segment profit

Unallocated corporate expenses, net

10 unchanged sentences

(1) Corporate special items primarily include transaction costs.

March 31, 2026

June 30, 2026

December 31, 2025

11 unchanged sentences

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

Three Months Ended March 31,

Six Months Ended June 30,

Americas Welding

1 unchanged sentence

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.

At June 30, 2026 and December 31, 2025, rationalization liabilities of $ 3,533 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.

4 unchanged sentences

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:

The following table summarizes the activity related to rationalization liabilities for the six months ended June 30, 2026:

International

3 unchanged sentences

Charged to expense

Balance at March 31, 2026

Balance at June 30, 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 March 31, 2026

Three Months Ended June 30, 2026

Unrealized gain

3 unchanged sentences

qualifying as cash

Balance at March 31, 2026

Other comprehensive income before reclassification

Amounts reclassified from AOCI

Net current-period other comprehensive (loss) income

Balance at June 30, 2026

Three Months Ended June 30, 2025

Unrealized gain

(loss) on derivatives

designated and

Defined benefit

qualifying as cash

Balance at March 31, 2025

Other comprehensive income 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

Six Months Ended June 30, 2026

Unrealized gain

(loss) on derivatives

designated and

Defined benefit

qualifying as cash

Balance at December 31, 2025

2 unchanged sentences

Net current-period other comprehensive loss

Balance at March 31, 2026

Three Months Ended March 31, 2025

Balance at June 30, 2026

Six Months Ended June 30, 2025

Unrealized gain

7 unchanged sentences

Net current-period other comprehensive income (loss)

Balance at March 31, 2025

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

Balance at June 30, 2025

NOTE 8 — INVENTORIES

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

March 31, 2026

June 30, 2026

December 31, 2025

2 unchanged sentences

Finished goods

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.

At both June 30, 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 $ 143,613 and $ 138,589 at June 30, 2026 and December 31, 2025, respectively.

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

NOTE 9 — LEASES

2 unchanged sentences

Balance Sheet Classification

March 31, 2026

June 30, 2026

December 31, 2025

6 unchanged sentences

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

March 31, 2026

June 30, 2026

Total lease payments

1 unchanged sentence

Operating lease liabilities

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

As of June 30, 2026 the weighted average remaining lease term is 5.7 years and the weighted average discount rate used to determine the operating lease liability is 3.8 %.

Other information related to leases was as follows:

Three Months Ended March 31,

Three Months Ended

Six Months Ended

Lease expense (1)

1 unchanged sentence

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.

LINCOLN ELECTRIC HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dollars in thousands, except per share amounts

N OTE 10 — DEBT

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

March 31, 2026

At June 30, 2026 and December 31, 2025, debt consisted of the following:

June 30, 2026

December 31, 2025

22 unchanged sentences

(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.

(2) Weighted average interest rate on the revolving credit facility was 4.7 % as of 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.

3 unchanged sentences

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.

As of June 30, 2026, the Company’s total weighted average effective interest rate and remaining weighted average tenure of the senior unsecured notes was 4.16 %, including the impact from terminated swap agreements, and 8.2 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.

As of June 30, 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 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.

As of June 30, 2026 the Company was in compliance with all of its covenants and had no outstanding borrowings under the revolving credit facility.

The Company has other lines of credit and debt agreements totaling $ 47,482 .

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.

As of June 30, 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.

At June 30, 2026 and December 31, 2025, the fair value of long-term debt, including the current portion, was approximately $ 1,074,811 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 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.

The Company recognized $ 86,335 of tax expense on pre-tax income of $ 381,236 , resulting in an effective income tax rate of 22.6 % for the six months ended June 30, 2026.

The effective income tax rate was 22.2 % for the six months ended June 30, 2025.

The effective tax rate was higher for the six months ended June 30, 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 months ended March 31, 2026 and 2025.

Hedge ineffectiveness was immaterial in the three and six months ended June 30, 2026 and 2025.

The Company is subject to the credit risk of the counterparties to derivative instruments.

4 unchanged sentences

Dollars in thousands, except per share amounts

was considered significant at March 31, 2026.

was considered significant at June 30, 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 $ 76,794 and $ 88,555 at March 31, 2026 and December 31, 2025, respectively.

The dollar equivalent gross notional amount of these short-term contracts was $ 75,802 and $ 88,555 at June 30, 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.

The dollar equivalent gross notional amount of the foreign currency forward contracts and zero-cost collar contracts were $ 307,871 and $ 337,659 at June 30, 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 $ 409,689 and $ 370,668 at March 31, 2026 and December 31, 2025, respectively.

The dollar equivalent gross notional amount of these contracts was $ 577,777 and $ 370,668 at June 30, 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

June 30, 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 March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Derivatives by hedge designation

Classification of (loss) gain

Classification of gain (loss)

Not designated as hedges:

6 unchanged sentences

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

March 31, 2026

June 30, 2026

December 31, 2025

5 unchanged sentences

Gain (loss) recognized in the

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Derivative type

5 unchanged sentences

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:

The following table provides a summary of assets and liabilities as of June 30, 2026, measured at fair value on a recurring basis:

Quoted Prices in

4 unchanged sentences

Observable Inputs

March 31, 2026

June 30, 2026

Inputs (Level 3)

26 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 March 31, 2026 and December 31, 2025.

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

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.

4 unchanged sentences

The Company pays the financial institution the stated amount of the confirmed invoices from its designated suppliers on the original maturity dates of the invoices.

At March 31, 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.

At June 30, 2026 and December 31, 2025, Trade accounts payable included $ 32,229 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