Slides
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Overview Lincoln Electric Holdings, Inc.
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Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Statements made during this presentation which are not historical facts may be considered forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied. Forward-looking statements generally can be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “forecast,” “guidance” or words of similar meaning. For further information concerning issues that could materially affect financial performance related to forward-looking statements, please refer to Lincoln Electric’s quarterly earnings releases and periodic filings with the Securities and Exchange Commission, which can be found on www.sec.gov or on www.lincolnelectric.com. Non-GAAP Measures: Our management uses non-GAAP financial measures in assessing and evaluating the Company’s performance, which exclude items we consider unusual or special items. We believe the use of such financial measures and information may be useful to investors. Non-GAAP financial measures should be read in conjunction with the GAAP financial measures, as non- GAAP measures are a supplement to, and not a replacement for, GAAP financial measures. Please refer to the attached schedule for a reconciliation of non-GAAP financial measures to the related GAAP financial measures. 2
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High-Performance Industrial Machinery & Technology Leader Generating superior value through the cycle #1 Leader HSD% Sales Growth Accelerated by Acquisitions Operational Excellence +200 bps in Average Operating Profit Margin per Cycle Earnings Compounder Through The Cycle with Average +DD% Growth Strong Cash Generation Through the Cycle with 100% Cash Conversion Predictable Model Generates Annual Dividend Increases Superior Returns Top Quartile ROIC & DD% TSR 3 Our Track Record
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Leader in Arc Welding & Automated Fabrication Systems Differentiated portfolio of products and technologies 4 CONSUMABLES (Welding Filler Metals, Brazing & Solder Alloys) ARC WELDING EQUIPMENT ACCESSORIES (PPE, Fume Management, Guns, Tools) CUTTING SOLUTIONS (Oxy-fuel, Plasma, Laser) DIGITAL SOLUTIONS ENGINEERING (Pre-Engineered, Designed, or Build-to-Print & Integration) PREPARATION (Cutting, Bending, Hydroforming) JOINING (Welding, Brazing & Fume Systems) FABRICATION SERVICES (3D-Printing, Precision Machining, Fabricated Parts, Die Casting) EDUCATION PRODUCTS, CURRICULUMS & WELD SCHOOL GAS MANAGEMENT SOLUTIONS (Industrial & Life Sciences) The essential LINC keeping the essential economy running since 1895 Vertically-integrated industrial machinery and technology company Engineering & manufacturing of arc welding technologies and automated fabrication systems Broad expertise in materials science, automation, power electronics, and intelligent software Renowned business model with high-performance culture 1 Diagram does not represent net sales mix by product area POWER SOLUTIONS (EV Chargers, Mobile Power and Upfitting for Utility Trucks) MATERIAL HANDLING (AGVs, AMRs, Conveyors) AFTER MARKET (MES and Diagnostic Software, Parts, Service, Training) PRE-PRODUCTION (Tooling, Positioners, Molding) ASSEMBLY SYSTEMS (Product Assembly & Integration) FINISHING (Testing Systems, Grinding, Polishing) WEAR SOLUTIONS (Cladding, Wear Plate & Wear Services)
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Industry’s Broadest Portfolio of Solutions Serving fabricators, OEMs & contractors across diverse applications 1. Arc & Laser Welding Solutions 2. Cobot Fabrication Solutions 3. Brazing/Soldering & Fabricated Parts 4. Precision Fabrication & Machining 5. Personal Protective Equipment & Environmental 6. Filler Metals & Wear Solutions 7. System Design & Integration 8. Specialty Gas Solutions 9. Mobile Power Solutions 10. AGVs & AMRs 11. Plasma, Oxyfuel & Laser Cutting Solutions 12. DC Fast Chargers 1 2 3 4 5 6 7 8 10 11 12 5 9
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Mission-Driven. Vision and Values-Led. 6
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Global Footprint With Local Presence ~12,000 Team ~235 Global Technical Sales Team 44-Country Team Presence Serving Customers in 160+ Countries 71 Facility Footprint (Manufacturing & Automation) 20-Country Facility Presence 7 38 Application Resource Centers
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Diversification Extends Reach & Captures Growth Opportunities Net Sales1 by: Reportable Segment Product Consumables 54% Equipment 26% Automation 20% North America ~70% EMEA ~15% Asia Pacific ~10 South America <5% 1 Reflects mix of FY2025 Net sales of $4.2 billion 2 As defined by the International Monetary Fund’s World Economic Outlook report 8 Industrial Gas Distributors ~50% Direct ~45% Retail <5% Other <5% Market Channels Americas Welding 64% International Welding 22% Harris Products Group 14% Geographic Destination • Solutions often include consumables, equipment (with intelligent software) and application-specific processes • Automation is ~80% in AW & ~20% in IW • Automation revenue excludes ~$340M of after market consumable sales • IW: ~70% EMEA; ~30% Asia Pacific • HPG: ~60% HVAC (Resi & Commercial); ~20% Retail; ~20% Industrial & Gas Equip’t • ~60% USA • ~20% emerging and developing economies2 • Direct sales primarily reflects Automation and industrial applications
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Global Arc Welding & Brazing $23B-$25B (LSD% organic growth) Automation System Integration & Fabrication Technologies ~$35B (HSD% to LDD% organic growth) Mobile Power <$5B (MSD% to HSD% organic growth) Wear Solutions <$5B (MSD% to HSD% organic growth) Business Advances on a Growing TAM & Leading Positions LECO is one of only three global welding providers to offer a complete solution & is the leading Automation system integrator & technology provider in the welding industry Global Arc Welding & Brazing Market Share Estimates1 1 Company estimate of the 2025 market and average organic growth rates through a cycle 9 $65+B TAM Total Addressable Market (TAM) Estimate in Fragmented Markets to Support M&A1 Regional Competitors Others Global Competitors
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End Market Mix & Portfolio Captures Secular Tailwinds Lincoln Electric Revenue Mix by End Market Sector1 1 Company estimate of its 2025 revenue mix (direct & distribution channels) 2 General Fabrication includes HVAC, Appliances, Education and sales to small-to-medium sized customers 3 Transportation is primarily passenger vehicle, but includes truck and vocational vehicles, and to a lesser degree, aerospace 4 Heavy Industries includes off highway (construction, ag & mining equipment), ship building, rail, and maintenance & repair 5 Energy is approximately 66% Oil & Gas with applications in up-, mid- and down-stream (~50% Midstream); 33% Power Generation which includes wind, gas turbine, thermal, nuclear, battery & hydropower applications 6 Non-Resi Structural Steel includes civil infrastructure applications such as bridges and airports, as well as commercial and manufacturing facilities (hospitals, factories, distribution centers, data centers) 10 32% General Fabrication2 13% Non-Resi Structural Steel6 17% Energy5 20% Transportation3 18% Heavy Industries4 Aligned With Attractive Secular Growth Trends (End Market & Product Mix) Secular Growth Drivers End Markets We Serve Exposed to Growth Drivers Consumables Equipment Automation Wear Solutions 3D Printing Fabricated Parts EV Charger Mobile Power Training Productivity All ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ Labor Shortage All ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ Reshoring and/or Capacity Expansion All ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ Infrastructure Energy, Civil & AI Data Center Structural, Energy, Heavy Industries, General Industries (HVAC) ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ Defense Transportation (Aerospace) Heavy Industries ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ Electrification Transportation Heavy Industries ⚫ ⚫ ⚫ ⚫ ⚫ Extend Useful Life Energy, Heavy Industries, Transportation ⚫ ⚫ ⚫ ⚫ ⚫ ⚫
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AUTOMATION Our application expertise, advanced motion control and smart sensor technologies create robust, intuitive and differentiated automation solutions ENGINEERING Our diverse engineering team solves complex and unique challenges with creativity, speed and technical depth MATERIALS SCIENCE Our metallurgists and scientists develop solutions across a broad array of materials and alloys for joining, fabrication and coatings that meet rigorous standards POWER ELECTRONICS Our high-performance, highly-reliable power conversion solutions use advanced circuit design and in-house manufacturing to capitalize on electrification opportunities INTELLIGENT SOFTWARE Our smart, data-driven systems optimize operations with increased process control, productivity, monitoring and intuitive interfaces MANUFACTURING EXPERTISE We manufacture high-quality solutions with trusted reliability and consistency that withstand the rigors of factory and in-field use Our Innovation Engine is a Catalyst For Growth 11 ~500 R&D Team ~2,700 Automation Team Industry Application Experts 36% Vitality Index1 (Total Sales) Internal & Collaborative R&D (Academia, Gov’t, Customers) IP Leader with 2,250+ Active Patents 58% Vitality Index1 (Equipment Sales) 12025 Vitality Index reflects the percent of net sales from standard new products launched in the last five years; excludes customized solutions.
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We Innovate to Solve Customers’ Pain Points Engineering solutions that deliver measurable value Key Customer Pain Points 12 Hyperfill® STT ® helps customers achieve faster weld speeds in root pass welding on deep groove joints without compromising quality or safety Precision Power Laser boosts productivity and weld quality while using the lowest heat input possible Our Long Stick Out Tandem Arc AC solution can save nearly 200 hours per tonne of deposited welding wire vs. a single arc DC
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Sustainability Through Innovation Designed for a positive impact Visit https://sustainability.lincolnelectric.com to view our sustainability report and additional information 13 Velion® DC Fast Charger delivers faster charge speeds and reliability for longer performance and uptime Additive Manufacturing technology 3D-prints large- scale, mission-critical metal parts fast with minimal waste Automation helps address labor shortages while minimizing negative environmental impacts on air quality, waste and energy consumption Accu-Pak® Box Packaging for bulk consumable packages was redesigned to eliminate 5.1-pounds of cardboard and 2.2-gallons of water used to manufacture each package Elevate SLi Battery Powered Cordless Welder is an energy efficient mobile welder weighing only 33lbs and optimizes space Linc-Cut Fiber Laser Automated Cutting System is designed to be safer and offer more repeatable, cost-effective cutting which reduces waste through precision We strive to improve product material, energy efficiency and safety to support the entire product lifecycle – helping customers build better and achieve their sustainability goals
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Automation Leadership Accelerates Growth Innovators at the forefront of industry transformation SALES1 by: Segment Mix International Welding End Market 23% 34% 43% Automotive / Transportation General Industries Heavy Industries, Energy & Structural 78% 22% Americas Welding ~2,700 Team 32 Automation Facilities 12-Country Presence 2.4 Million Ft2 Operating Space $870M 2025 Sales @ HSD% EBIT margin 40% 60% Application Joining Other Automation Solutions 1 Data reflects FY2025 Sales of $870M PREPARATION JOINING ASSEMBLYPREPRODUCTION MOVEMENT FINISHING Press automation, Cutting, Tube bending, Hydro- forming systems 3D Printing, Die casting, Tooling, Injection molding, Positioning equipment Welding (arc, laser, friction) & Brazing AGVs, AMRs, Conveyors Assembly systems, System integration Testing systems, Grinding & polishing, MES software, Precision machining 14 Project Type 40% 60% Pre-Engineered Systems (~55% short cycle w/ <60-day fulfillment) Custom & Build-to-Print Systems (~$340M of after sale consumables not in automation sales) Vertically-integrated system integrator Leading system integrator and automation OEM tech leader in fabrication systems Broadest array of automation solutions Solving customers’ productivity, quality and safety issues Solutions serve customers across their automation journey BREADTH OF SOLUTIONS Sales Grow 2x Core Business @ Mid-teens % EBIT margin
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Industry’s Most Comprehensive Portfolio of Solutions & Technologies We optimize fabrication up- and down-stream from the welding arc & beyond 15 Less Complex $$ Highly Complex $$$$ Other Automation Solutions (Non - Welding) Automated Cutting Automated Material Handling AGVs, AMRs & Conveyors Automated Testing, Alignment & Balancing Systems Automated Assembly and Chassis Marriage Systems Precision Machining & Fabrication Automated Joining / Welding Solutions
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Strong Governance & Employee Engagement Learn more about our governance and social programs at https://sustainability.lincolnelectric.com Board Diversity & Oversight • Diverse across gender, ethnicity, tenure, expertise & skills Sustainability Governance • Board oversight and extensive governance structure • Sustainability metrics integrated into annual goals & compensation • Sustainability strategy aligns with our RISE Strategy Committed to Employee Development & Engagement • Record engagement achieved in our 2025 employee survey • Focused on maximizing employee potential and engagement • Expanding employee resource group programming Committed to Our Communities • Broad programming to support workforce development • 90+ years of welding industry & community support by the James F. Lincoln Foundation & the Lincoln Electric Foundation • Employee matching and volunteer programs 16 Recognized For Our Leadership NEWSWEEK America’s Most Responsible Companies 2026 America’s Greatest Workplaces for Culture, Belonging & Community 2026 America’s Greatest Workplaces 2025 America’s Greatest Companies for Manufacturing Workplaces 2025 America’s Greenest Companies 2025 Most Trustworthy Companies in America 2025 ETHISPHERE® One of the World’s Most Ethical Companies (7x Honoree) USA TODAY® America’s Climate Leaders 2025 TIME America’s Best Mid-Size Company 2025 FORBES America’s Most Successful Mid-Cap Companies 2026 America’s Best Midsize Employers 2026 America’s Best Employers for Company Culture 2025 16 Trademarks are property of their respective owners
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17 2026-2030 CENTER-LED, STANDARDIZED & SCALED ACCELERATE INNOVATION EXCEED EXPECTATIONS PERFORMANCE & COMMUNITY
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HSD% to LDD% Sales CAGR (2025-2030) +300-400 bps +400-600 bps Industrial Production Organic Growth1 Anticipated M&A Focused on Accelerating Sales Growth 1 Includes +100-200bps from price and organic Automation volume growth at HSD% 18 COMPONENTS OF ACCELERATED GROWTH • Faster secular & cyclical growth • Expand TAM & share • Automation adoption • Recurring consumable revenue • Strong price realization • New technologies • New applications or products • Market or channel access High-20% Operating Income Incremental margin through the strategy cycle
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Disciplined Acquisition Program Track record of generating value Mid-Teens $1.4B Cumulative M&A Investment 2016 - 2025 18 $65+B 4.8% Dedicated Acquisitions and integrations executed 2016 - 2025 Targeted addressable market (TAM) size; largely fragmented to support our acquisition strategy CAGR sales growth from $1.2B in acquisition revenue 2016 - 2025 Average EBIT margin and ROIC performance of acquisitions M&A team and experienced integration managers deploy Lincoln systems to optimize and align operations % 19 • Acquisitions are a core growth driver of our RISE Strategy targeting +300 to 400 bps sales CAGR through the cycle • Track record of acquisitions supporting all areas of the business (2020-2025 transactions below): CORE WELDING AUTOMATION TECHNOLOGY
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Standardize tools & processes to capture scale and drive efficiencies; Extend digitization, automation and AI bots in administrative areas Accelerate automation, equipment and safety investments to ensure safer and more productive operations Extend the adoption of “Spotlight” to improve supply and service levels for customers and increase our operational efficiency Continue to shape our manufacturing footprint as needed to optimize utilization, quality and service levels Reimagining How We Work Enterprise initiatives will unlock value CENTER-LED FUNCTIONS FACTORY AUTOMATION & INVESTMENTS SPOTLIGHT PROCESS OPTIMIZE FOOTPRINT ENTERPRISE INITIATIVES FOCUSED ON • Safer and more productive operations • Highly efficient core business processes • Leverage global scale & maintain local agility Operating efficiencies contribute 100-125bps to our historic average incremental operating margin 20
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Protecting the Environment at Every Step Operating to maximize safety & minimize waste Water Intensity 2030 Goal: 10% Reduction1 Renewable Energy 2030 Goal: 20% GHG Emissions (Scope 1 & 2) 2030 Goal: 30% Reduction Life Cycle Assessments 2030 Goal: 10 Product Family LCAs Waste Directed to Disposal 2030 Goal: 10% Reduction 1 Water Intensity of sites located in areas of high or very high-water scarcity per WRI Aqueduct Tool. Measured as water used per dollars of product manufactured. Visit https://sustainability.lincolnelectric.com to view our prior performance, additional data, and UN SDGs, SASB and TCFD indices Safety (TRCR) 2030 Goal: 34% Reduction 21 2030 SAFETY & ENVIRONMENTAL GOALS (vs. 2024 baseline)
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Targeting 20% Peak Operating Income Margin by 2030 With high-20% incremental margin 2025 Adj Op Margin (base year) Sales Leverage Enterprise Initiatives Peak Adj Op Margin (2030) 17.6% 20+% Average 19% Operating Income Margin (+/-150bps) Through the Cycle +150 to 200 bps +100 to 125 bps 22 Reportable Segment Adjusted EBIT Margin1 Target Ranges (2026-2030) 2020-2025 Avg. Adj. EBIT Margin 2026-2030 EBIT Margin Target Range Americas Welding 18.1% (18.7% in ‘25) 19% to 22% International Welding 10.7% (11.5% in ’25) 12% to 15% Harris Products Group 15.2% (18.1% in ‘25) 18% to 21% high-20% incremental margin 1Segment EBIT margins are defined as Operating income plus Other Income divided by Total Sales. Total sales includes inter-segment sales.
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Strong Cash Generation and Top Quartile ROIC 23 $668 $599 $661 $0 $100 $200 $300 $400 $500 $600 $700 2023 2024 2025 24.1% 21.8% 21.3% 2023 2024 2025 Cash Flow From Operations ($M) & Cash Conversion (%) Return on Invested Capital (Adj. ROIC) Top Quartile vs. Peers 98% Average Cash Conversion1 2030 Target: 100% Cash Conversion 2030 Target: 16% to 17% AOWC ratio2 1 Cash Conversion is defined as Cash Flow from Operations less Capital Expenditures divided by Adjusted Net Income 2 Average Operating Working Capital to Sales ratio is defined as the sum of Accounts receivables, Inventories and contract assets less Trade accounts payable and contract liabilities as of period end divided by annualized rolling three months of Net sales 105% 91% 97% 22.4% Average Adjusted ROIC 2030 Target: 18% to 20% Adjusted ROIC Investment - grade balance sheet profile with 1.16x Net Debt:Adj. EBITDA ratio
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Targeting a Balanced Capital Allocation Strategy Funding growth & shareholder returns for superior performance CapEx $0.5 R&D $0.4 M&A $1.0 Dividends $0.9 Repurchases $1.2 Capital Allocation 2020-2025 ($B) Growth = 48% Returns to Shareholders = 52% $4B Deployed 24 MAINTAIN STRONG BALANCE SHEET DEPLOY CAPITAL FOR GROWTH RETURN CAPITAL TO SHAREHOLDERS Ample liquidity Investment Grade Profile • 1.16x Net Debt/Adj EBITDA • 1.52x Gross Debt/Adj EBITDA Optimized Balance Sheet • Target 1.75x Gross Debt/Adj EBITDA ratio • Maintain capital allocation strategy through the cycle Internal Investments • Yield highest returns • Capex ~3% of sales • R&D ~2% of sales Inorganic Growth (M&A) • Target 300-400bps sales CAGR at mid-teens % EBIT margin • Disciplined approach achieves mid-teens % ROIC by year-3 Dividend “Aristocrat” • 30-yrs of consecutive increases • Target the return of ~30% of Net Income via dividends • 10% CAGR in payout rate 2020-2025 Share Repurchases • ~$75M/yr maintenance spend to prevent dilution • Excess strategic cash used for buybacks
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Our Model Delivers Superior Performance Superior TSR Performance 2020-2025 Superior Returns (ROIC)2 2020-2024 Average 1Peers refers to 2025 Proxy Peers 2 ROIC data from FactSet and is defined as Net operating profit after tax divided by Average invested capital 25 122% 51% 96% 55% 91% LECO Peers Avg S&P500 S&P400 S&P400 Industrials 1 20% 10% 89% LECO Peers Avg LECO Percentile Rank1
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2030 Financial Framework Summary METRICS 2026-2030 (Through the Cycle) KEY DRIVERS Sales Growth (ex-FX) HSD% to LDD% to $6+B Cyclical and secular tailwinds Innovation Acquisitions Automation grows at 2x core business1 Operating Income Margin High-20% incremental margin Average 19% (+/- 150bps) Peak 20+% margin Average Op Income Margin target is +300 bps improvement vs. prior cycle AW Segment EBIT range: 19% to 22%1 IW Segment EBIT range: 12% to 15%1 HPG Segment EBIT range: 18% to 21% EPS CAGR Mid-Teens % CAGR Effective performance and capital deployment Cash Generation 100% Cash Conversion Effective performance and top decile working capital management (16% to 17% ratio) Capital Allocation Balanced Invest in growth (organic + M&A) and return cash to shareholders via dividend and share repurchases ROIC 18% to 20% (Top quartile) Effective execution of commercial and operational initiatives and disciplined allocation of capital Sales leverage Effective cost management Enterprise initiatives 26 1 Global Automation Portfolio 2025 Sales: $870M. Targeting a mid-teens % EBIT margin for the portfolio through the strategy cycle.
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RISE Strategy Continues Our Track Record of Compounding Earnings & Generating Higher Returns 2003-2008 Commodity Super-Cycle 2009-2013 Post Great Recession 2015-2019 Mini Industrial Recessions 2020-2025 COVID & Trade Policy Uncertainty 2026-2030 • Locally operated • Market share strategy • BRIC-focused • Balance sheet positioned for large acquisitions • Regionally operated • ROIC and margin- focused strategy • Pruned $110M to richen mix • Invested in automation • Regionally operated w/ limited center-led & shared services • Automation accelerated • Raised HPG & IW margins • Pruned $275M to richen mix • Optimized balance sheet • Regionally operated w/ limited center-led & shared services • Doubled Automation sales • IW, HPG & Automation margin improvement • Incubated adjacencies • Expanded sustainability • Closed Russia ($24M sales) • Evolving to a fully center-led, standardized, scaled model • Accelerate sales growth via innovation, adjacencies & acquisitions • Expand margins via growth & enterprise initiatives • Advance sustainability Sales CAGR 19% 13%1 4%1 11% HSD% to LDD% Average Adj. Operating Margin 10% 12% 14% 16% Average 19%2 (+/- 150 bps) Adj. EPS CAGR 32% 45% 8% 19% Mid-Teens % Average Adj. ROIC 14.8% 14.6% 18.9% (top quartile) 21.9% (top quartile) 18% to 20% (top quartile) Average Operating Working Capital 24.8% 17.2% 16.9% 17.9% 16% to 17% (top decile) 27 1 Approximately $385 million of revenue decline from 2009 to 2019 from strategic pruning and the closure of our Venezuela business 2 Average 19% adjusted operating income margin (+/-150 bps) with a peak 20+% margin; driven by high-20% incremental margin 300+ bps
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Contact: Amanda Butler Vice President, Investor Relations & Communications Amanda_Butler@lincolnelectric.com 216.383.2534 28
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Non-GAAP Information Adjusted operating income, Adjusted net income, Adjusted EBIT, EBITDA, Adjusted EBITDA, Adjusted effective tax rate, Adjusted diluted earnings per share, Adjusted EPS, Organic sales, Cash conversion, and Adjusted Return on invested capital are non-GAAP financial measures. Management uses non-GAAP measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of the Company's core business. Management believes that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against other companies in its industry more meaningfully. Furthermore, management believes that non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently. 29
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($ in millions) Period Ended December 31, 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Operating income: $80.9 $108.1 $153.5 $232.2 $266.1 $283.5 $115.3 $200.2 $305.7 $376.8 $413.7 $367.1 $324.6 $283.6 $376.9 $375.5 $370.9 $282.1 $461.7 $612.3 $717.8 $636.5 $718.1 Special items: Rationalization and asset impairment charges / (gains) 1.7 2.4 1.8 3.5 (0.2) 19.4 29.9 (0.4) 0.3 9.4 8.5 30.1 20.0 - 6.6 25.3 15.2 45.5 9.8 11.8 (11.3) 55.9 18.2 (Gains) losses on sale of assets - - 1.9 (9.0) - - - - - - 0.7 - - - - - (3.0) - - - - - - Venezuelan devaluation and deconsolidation charges (gains) - - - - - - - 3.1 - 1.4 12.2 21.1 27.2 34.3 - - - - - - - - - Acquisition-related net charges (gains) (1) - - - - - - - - - - - - - - (30.1) 4.5 4.8 0.8 7.7 7.1 12.3 12.0 6.7 Retirement Costs - 4.5 - - - - - - - - - - - - - - - - - - - - - Adjusted operating income: $82.6 $115.1 $157.2 $226.7 $265.9 $302.9 $145.1 $202.9 $306.0 $387.5 $435.1 $418.3 $371.8 $318.0 $353.5 $405.3 $387.9 $328.3 $479.2 $631.2 $718.8 $704.4 $743.0 Net sales $1,040.6 $1,333.7 $1,601.2 $1,971.9 $2,280.8 $2,479.1 $1,729.3 $2,070.2 $2,694.6 $2,853.4 $2,852.7 $2,813.3 $2,535.8 $2,274.6 $2,624.4 $3,028.7 $3,003.3 $2,655.4 $3,234.2 $3,761.2 $4,191.6 $4,008.7 $4233.0 Op income margin 7.8% 8.1% 9.6% 11.8% 11.7% 11.4% 6.7% 9.7% 11.3% 13.2% 14.5% 13.0% 12.8% 12.5% 14.4% 12.4% 12.4% 10.6% 14.3% 16.3% 17.1% 15.9% 17.0% 7.9% 8.6% 9.8% 11.5% 11.7% 12.2% 8.4% 9.8% 11.4% 13.6% 15.3% 14.9% 14.7% 14.0% 13.5% 13.4% 12.9% 12.4% 14.8% 16.8% 17.1% 17.6% 17.6% Non-GAAP Financial Measures Reconciliation of Operating Income and Operating Income Margin to Non-GAAP Adjusted Operating Income and Adjusted Operating Income Margin (1) Acquisition-related net charges (gains) includes acquisition transaction and integration costs, amortization of step up in value of acquired inventories, gain on change in control and bargain purchase gain 30
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1 Return on Invested Capital is defined as rolling 12 months of Adjusted Net Income excluding tax-effected interest income and expense divided by Invested Capital. 2 Invested Capital is defined as Total Debt plus Total Equity. 3 EPS and Adjusted EPS have been adjusted to reflect stock splits. ($ in millions) Period Ended December 31, 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net income: $54.5 $80.6 $122.3 $175.0 $202.7 $212.3 $48.6 $130.2 $217.2 $257.4 $293.8 $254.7 $127.5 $198.4 $247.5 $287.1 $293.1 $206.1 $276.5 $472.2 $545.2 $466.1 $520.5 Special items: Rationalization and asset impairment charges / (gains) 1.7 2.4 1.8 3.5 (0.2) 19.4 29.9 (0.4) 0.3 9.4 8.5 30.1 20.0 - 6.6 25.3 15.2 45.5 9.8 11.8 (11.3) 55.9 18.2 (Gains) or losses on sale of assets - - 1.9 - - - (5.7) - - - 0.7 - - - - - (3.6) - - - (1.6) 5.0 - Acquisition-related net charges (gains) - - - - - - 7.9 - - - - - - - (30.1) 4.5 (2.8) 0.8 7.7 7.1 12.3 12.1 6.7 Loss on deconsolidation of Venezuela & devaluation charges - - - - - - - 3.1 - 1.4 12.2 21.1 27.2 34.3 - - - - - - - - - Pension settlement loss (gain) - - - - - - (2.1) - - - - - 142.7 - 8.2 6.7 - 8.1 126.5 (4.3) 0.8 3.8 0.7 Non-controlling interests - - - - - - 0.6 1.8 - - (1.1) (0.8) - - - - - - - - - - - Retirement costs - 4.5 - - - - - - - - - - - - - - - - - - - - - Settlement of legal disputes - - (1.4) - - - - - - - - - - - - - - - - - - - - Tax effect of Special items (0.4) (2.1) (11.8) 1.8 0.1 (1.1) (6.1) (5.2) (4.9) (2.4) (0.9) 0.8 (57.2) (8.3) 20.5 (6.9) (7.4) (10.6) (47.2) (1.2) (2.5) 11.5 (5.2) Adj. Net income: $55.9 $85.5 $112.7 $171.3 $202.6 $230.6 $ 73.1 $ 129.6 $ 212.6 $ 265.8 $ 313.2 $ 305.9 $ 260.2 $ 224.5 $252.7 $316.6 $294.6 $249.9 $373.3 $485.7 $547.9 $531.3 $551.3 Plus: Interest expense (after-tax) 4.9 3.7 4.9 6.3 7.1 7.6 5.3 4.2 4.2 2.6 1.8 6.4 13.5 11.8 14.9 18.4 19.5 17.9 17.8 23.3 38.0 39.7 43.8 Less: Interest income (after-tax) 1.9 1.8 2.5 3.6 5.1 5.5 2.2 1.5 1.9 2.5 2.0 1.9 1.7 1.3 3.0 5.2 1.9 1.5 1.2 1.2 5.0 7.6 5.1 Adjusted net operating profit after taxes 58.9 87.3 115.2 173.9 204.6 232.7 76.2 132.3 214.8 265.9 312.9 310.5 272.0 234.9 264.7 329.8 312.1 266.4 390.0 507.7 580.9 563.3 590.0 Invested Capital2 652.6 750.8 824.6 1,024.0 1,219.4 1,152.2 1,209.4 1,247.2 1,296.6 1,378.6 1,549.8 1,356.4 1,287.1 1,417.8 1,638.7 1,590.3 1,566.3 1,508.4 1,633.7 2,237.9 2,414.1 2,588.5 2,763.8 Adjusted ROIC: 9.0% 11.6% 14.0% 17.0% 16.8% 20.2% 6.3% 10.6% 16.6% 19.3% 20.2% 22.9% 21.1% 16.6% 16.2% 20.7% 19.9% 17.7% 23.9% 22.7% 24.1% 21.8% 21.3% Diluted EPS3 $0.66 $0.97 $1.45 $2.04 $2.34 $2.47 $0.57 $1.54 $2.56 $3.06 $3.54 $3.18 $1.70 $2.91 $3.71 $4.37 $4.68 $3.42 $4.60 $8.04 $9.37 $8.15 $9.32 Special Items Impact 0.01 0.06 (0.12) (0.05) (0.01) 0.21 0.29 (0.02) (0.05) 0.10 0.23 0.64 2.12 0.38 0.08 0.45 0.02 0.73 1.62 0.23 0.04 1.14 0.55 Adjusted Diluted EPS3 $0.67 $1.03 $1.33 $1.99 $2.33 $2.68 $0.86 $1.52 $2.51 $3.16 $3.77 $3.82 $3.48 $3.29 $3.79 $4.82 $4.70 $4.15 $6.22 $8.27 $9.41 $9.29 $9.87 Non-GAAP Financial Measures Return on Invested Capital1 & Reconciliation of Diluted EPS to Non-GAAP Diluted Adjusted EPS 31
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Non-GAAP Financial Measures Segment EBIT & Reconciliation of EBIT Margin to Non-GAAP Adjusted EBIT Margin 32 ($ millions) 2020 2021 2022 2023 2024 2025 EBIT $210.7 $205.9 $465.9 $528.4 $502.4 $524.1 As a percent of Total Sales 13.0% 10.5% 19.3% 19.0% 18.6% 18.4% Special Item Charges 35.0 123.1 (3.1) 9.9 27.8 10.7 Adjusted EBIT $245.7 $329.0 $462.8 $538.3 $530.2 $534.8 As a Percent of Total Sales 15.2% 16.7% 19.2% 19.3% 19.6% 18.7% ($ millions) 2020 2021 2022 2023 2024 2025 EBIT $25.6 $91.0 $108.5 $146.2 $68.4 $99.1 As a percent of Total Sales 3.2% 9.3% 11.0% 13.6% 7.1% 10.3% Special Item Charges 19.4 15.2 11.7 (9.7) 37.7 11.4 Adjusted EBIT $45.0 $106.2 $120.2 $136.5 $106.1 $110.6 As a Percent of Total Sales 5.6% 10.9% 12.2% 12.7% 10.9% 11.5% ($ millions) 2020 2021 2022 2023 2024 2025 EBIT $55.2 $64.7 $64.0 $74.1 $84.4 $106.5 As a percent of Total Sales 15.1% 13.8% 12.1% 14.6% 16.2% 17.9% Special Item Charges - 3.8 - - 4.0 1.1 Adjusted EBIT $55.2 $68.4 $64.0 $74.1 $88.3 $107.6 As a Percent of Total Sales 15.1% 14.6% 12.1% 14.6% 16.9% 18.1% Americas Welding International Welding Harris Products Group Special Item Charges: 2025: Rationalization and asset impairments net charges of $9.8 million and a pension settlement net charge of $0.6 million 2024: Rationalization net charges of $18.8 million, amortization of the step up in value of acquired inventories of $4.8 million, and a pension settlement charge of $4.2 million 2023:Rationalization and asset impairment net charges of $0.5 million and amortization of step up in value of acquired inventories of $9.4 million 2022: Rationalization and asset impairment net gains of $0.4 million, amortization of step up in value of acquired inventories of $1.1 million, and a $3.7 million net gain related to the final settlement associated with the termination of a pension plan 2021: Pension settlement charges of $123.1 million 2020: Rationalization and asset impairment charges of $26.9 million and pension settlement charges of $8.1 million Special Item Charges: 2025: Rationalization and asset impairments net charges of $1.1 million 2024: Rationalization net charges of $4.0 million 2021: Pension settlement charges of $3.0 million and amortization of the step up in value of acquired inventories of $0.8 million Special Item Charges: 2025: Rationalization and asset impairments net charges of $7.3 million, amortization of the step up in value of acquired inventories of $3.7 million and a pension settlement net charge of $0.07million 2024: Rationalization net charges of $33.0 million, including the impact of the Company’s disposition of its Russian entity, a loss on asset disposal of $5.0 recorded to Other income, amortization of the step up in value of acquired inventories of $0.3 million, and a pension settlement gain of $0.4 million 2023:Rationalization and asset impairment net gains of $11.8 million, amortization of step up in value of acquired inventories of $2.9 million, pension settlement charges of $0.8 million and gain on asset disposal of $1.6 million 2022: Rationalization and asset impairment charges of $11.7 million 2021: Rationalization and asset impairment charges of $9.8million. amortization of step up in value of acquired inventories of $5.0 million and pension settlement charges of $0.4 million 2020: Rationalization and asset impairment charges of $18.6 million and amortization of step up in value of acquired inventories of $0.8 million
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Non-GAAP Financial Measures Cash Conversion 33 ($ in millions) 2023 2024 2025 Net cash provided by operating activities $667.5 $599.0 $661.2 Capital Expenditures (91.0) (116.6) (127.0) Free cash flow1 $576.6 $482.4 $534.2 Adjusted net income $547.9 $531.3 $551.3 Cash conversion1 105% 91% 97%