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LINCOLN ELECTRIC HOLDINGS, INC. Q3 2026 Earnings October 27, 2026 Lincoln Electric Holdings, Inc. Q3 2026 Earnings October 27, 2026
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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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Third Quarter 2026 Highlights Record net sales with 14.5% organic growth led by volumes Adjusted operating income margin +60 bps primarily on sales leverage Record Adjusted EPS of $2.98 Cash flows of $216 million with 107% cash conversion Strong Adj ROIC of 23.9% 3 $1.2B Record Net Sales performance +15.1% vs. prior year; Organic sales +14.5% 18.0% $2.98 23.9% $216M $143M Adjusted Operating Income Margin +60 bps vs. prior year Record Adjusted EPS +21% vs. prior year Adjusted ROIC performance +170 bps vs. prior year Cash flow from operations (9)% vs. prior year Returned to shareholders ($43M in dividends + $99M in share repurchases)
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Q3 Organic sales by product area Solid Americas & HPG momentum Consumables increase mid-teens percent Equipment increases low-teens percent Automation increases high-teens percent Q3 organic sales driven by volume growth in all 3 product groups, led by increased capital spending 1 End-sector trends reflect direct-channel organic sales. 4 Q3 global end sector performance1 All end markets growing DD% YoY General Fabrication up mid-20 percent Energy and Structural Steel up mid-teens percent Transportation and Heavy Industries up LDD%
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New solutions launched at FABTECH addressing customers’ productivity, skilled welder shortage & quality pain points 5 www.lincolnelectric.com/xpertlinc www.lincolnelectric.com/xpertlinc Hot Wire Submerged Arc Welding (SAW) increases single wire deposition rates by up to 50% by pre-heating a wire. It delivers higher efficiency at a lower investment cost vs. tandem-wire solutions. Arc Tracker Air is a wireless, on-premise data collection solution that tracks productivity and arc time. The sensor mounts onto the welding cable of any type or brand of welding equipment. XpertLINC physical AI technology platform eliminates programming and CAD files and instead scans the joint, determines the weld path and parameters, controls the robot, and dynamically adapts like a human welder would to variances while adhering to customers’ WPS. (welding procedure specifications) InstructArc XR (Extended Reality) Welding Trainer modernizes welding education with high-fidelity, augmented virtual simulations using real welding tools.
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Income Statement Highlights Q3-2026 6 ($ in Millions) Q3 2026 Q3 2025 % YoY Change Favorable / (Unfavorable) Net Sales $ 1,221.3 $ 1,061.2 15.1% Gross Profit $ 425.0 $ 389.3 9.2% Gross Profit Margin 34.8% 36.7% (190) bps SG&A as % of net sales 16.9% 19.5% 260 bps Adjusted Operating Income $ 220.0 $ 184.6 19.2% Adjusted Operating Income Margin1 18.0% 17.4% 60 bps EPS $ 2.63 $ 2.21 19.0% Adjusted EPS1 $ 2.98 $ 2.47 20.6% Q3 2026 CHANGE IN NET SALES MIX2 Volume 8.8% Price 5.7% Acq/Div 0.5% FX 0.1% TOTAL 15.1% 1 Refer to the appendix for reconciliation of non-GAAP financial measures to U.S. GAAP. 2 Figures may not sum due to rounding.
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Americas Welding Segment 7 ($ in Millions) Q3 2026 Q3 2025 % YoY Change Net Sales $ 801.3 $ 691.8 15.8% Adjusted EBIT $ 166.5 $ 131.6 26.5% Adjusted EBIT Margin2 20.1% 18.2% 190 bps 1 Figures may not sum due to rounding. 2 Segment Adjusted EBIT Margin is calculated using segment Total Sales, which includes Inter-segment sales. Refer to the earnings release for segment Total Sales. Q3 2026 CHANGE IN NET SALES MIX1 Volume 13.2% Price 2.4% Acq/Div - FX 0.2% TOTAL 15.8% 13% volume growth led by high- teens percent growth in Equipment and Automation Price contribution reflects the May price action Adjusted EBIT increased 26.5% and margin expanded 190 bps to 20.1% on sales leverage and improved automation performance; partially offset by price/cost headwinds Segment Highlights
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International Welding Segment 8 ($ in Millions) Q3 2026 Q3 2025 % YoY Change Net Sales $ 226.9 $ 219.6 3.3% Adjusted EBIT $ 24.0 $ 25.8 (7.2)% Adjusted EBIT Margin2 10.3% 11.3% (100) bps Q3 2026 CHANGE IN NET SALES MIX1 Volume (1.4)% Price 2.4% Acq/Div 2.3% FX - TOTAL 3.3% 1 Figures may not sum due to rounding. 2 Segment Adjusted EBIT Margin is calculated using segment Total Sales, which includes Inter-segment sales. Refer to the earnings release for segment Total Sales. Segment Highlights Organic sales increased 1%, as higher price and Asia Pacific growth offset lower EMEA volumes Acquisitions (Alloy Steel) contributed 2.3% to net sales growth (anniversaried in August) Adjusted EBIT and margin decreased primarily on lower Automation performance
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Segment Highlights Volume growth led by HVAC demand and gas equipment Price reflects higher YoY metal costs, primarily silver Adjusted EBIT increased on SG&A leverage from higher sales; margin lower due to mix and operating inefficiencies The Harris Products Group 9 ($ in Millions) Q3 2026 Q3 2025 % YoY Change Net Sales $ 193.1 $ 149.8 28.9% Adjusted EBIT $ 34.1 $ 28.1 21.4% Adjusted EBIT Margin2 17.3% 18.3% (100) bps Q3 2026 CHANGE IN NET SALES MIX1 Volume 3.0% Price 25.7% Acq/Div - FX 0.2% TOTAL 28.9% 1 Figures may not sum due to rounding 2 Segment Adjusted EBIT Margin is calculated using segment Total Sales, which includes Inter-segment sales. Refer to the earnings release for segment Total Sales.
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Cash Flows & Improved Working Capital 10 Cash Flows from Operations ($ in Millions) Average Operating Working Capital to Net Sales Ratio 18.6% 17.9% 16.6% Sept 30, 2025 Dec 31, 2025 Sept 30, 2026 107% Cash conversion in Q3; working capital ratio improved to 16.6% $237 $216 $566 $572 Q3-25 Q3-26 9M-25 9M-26
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Q3 Capital Allocation & Returns • Growth: $41 million • Return to Shareholders: $143 million • Return on Invested Capital2: 23.9% Capital Allocation Strategy Prioritized uses of cash: • Growth investments (organic and M&A) • Return to shareholders • Dividend rate increase: +10% to $0.87/Qtr., payable January 2027 • Share repurchases Capital Allocation1 ($ in Millions) 11 1 Figures may not sum due to rounding 2 Adjusted Return on Invested Capital. Please refer to the appendix for reconciliation of Non-GAAP metrics. 32 41 84 112104 13742 43 126 13153 99 286 232 Q3-25 Q3-26 9M-2025 9M-2026 Cap Ex Acquisitions Dividend Share Repurchases $634 $475 $184 $230
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Increasing Full Year Sales & Cap-Ex Assumptions Reflecting stronger demand trends Risks Net impact of trade & regulatory policies Commodity prices Economic and geopolitical headwinds Inflation (raw materials & labor) Opportunities (not in assumptions) Acquisitions Middle East ceasefire 2026 Assumptions Full year Net sales growth at low-teens % (Organic sales mix: 40% volume; 60% price) Neutral price/cost in Q4-2026 Adj Op income margin improvement at a mid-20% incremental margin in Q4-2026 Full year Interest expense, net $50-55 million Full year low-to-mid 20% tax rate $140 to $150 million in cap-ex in 2026 100% cash conversion in 2026 Share repurchases (maintenance & opportunistic) 12
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Contact: Amanda Butler Vice President, Investor Relations & Communications Amanda_Butler@lincolnelectric.com 216.383.2534 13
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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, Free Cash Flow, 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. 14
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Non-GAAP Financial Measures Non-GAAP Financial Measures: Reconciliation of Operating Income, Net Income, Effective Tax Rate, and EPS to Non-GAAP Adjusted Operating Income, Adjusted Net Income, Adjusted Effective Tax Rate, and Adjusted EPS (In thousands, except per share amounts) (Unaudited) 15 Please see the following slide for corresponding footnotes Three months ended Sept. 30 Nine months ended Sept. 30 2026 2025 2026 2025 Operating income as reported $211,376 $176,657 $618,178 $533,719 Special items (pre-tax): Rationalization and asset impairment net charges (2) 7,853 5,831 13,497 12,238 Transaction costs (3) 765 452 1,433 1,683 Amortization of step up in acquired inventories (4) — 1,622 — 1,482 Adjusted operating income (1) $219,994 $184,562 $633,108 $549,122 As a percent of net sales 18.0% 17.4% 17.8% 17.4% Net income as reported $144,346 $122,628 $439,247 $384,511 Special items: Rationalization and asset impairment net charges (2) 7,853 5,831 13,497 12,238 Transaction costs (3) 765 452 1,433 1,683 Amortization of step up in acquired inventories (4) — 1,622 — 1,482 Tax effect of Special items (5) (6) 10,669 6,685 9,134 4,772 Adjusted net income (1) 163,633 137,218 463,311 404,686 Interest expense, net 11,346 13,648 37,241 38,394 Income taxes as reported 55,687 43,367 142,022 118,278 Tax effect of Special items (5) (6) (10,669) (6,685) (9,134) (4,772) Adjusted EBIT (1) $219,997 $187,548 $633,440 $556,586 Effective tax rate as reported 27.8% 26.1% 24.4% 23.5% Net special item tax impact (6.2)% (5.0)% (2.1)% (1.6)% Adjusted effective tax rate (1) 21.6% 21.1% 22.3% 21.9% Diluted earnings per share as reported $2.63 $2.21 $7.97 $6.86 Special items per share 0.35 0.26 0.44 0.36 Adjusted diluted earnings per share (1) $2.98 $2.47 $8.41 $7.22 Weighted average shares (diluted) 54,873 55,574 55,098 56,020
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1) Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate and adjusted diluted EPS are non-GAAP financial measures. Refer to Non-GAAP Information section. 2) 2026 and 2025 net charges primarily relate to rationalization plans within Americas Welding and International Welding. 3) Transaction costs primarily relate to acquisitions and are included in Selling, general & administrative expenses. 4) Costs relate to acquisitions and are included in Cost of goods sold. 5) Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate. The applicable tax rates reflect the taxable jurisdiction and nature of each Special item. 6) During Q3 2026, the Company reassessed the future use of certain foreign earnings and recognized $12,977 of income tax expense on earnings that may be remitted to the United States. During Q3 2025, it recognized approximately $8,800 of tax expense reflecting the cumulative impact of OBBBA provisions. Non-GAAP Financial Measures (continued) Footnotes for Non-GAAP Financial Measures: Reconciliation of Operating Income, Net Income, Effective Tax Rate, and EPS to Non-GAAP Adjusted Operating Income, Adjusted Net Income, Adjusted Effective Tax Rate, and Adjusted EPS 16
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Non-GAAP Financial Measures Adjusted Return on Invested Capital (ROIC) (In thousands) (Unaudited) 17 1) Adjusted net operating profit after taxes and Adjusted ROIC are non-GAAP financial measures. Refer to Non-GAAP Information section. 2) Includes the net tax impact of Special items recorded during the respective periods. The tax effect of Special items impacting pre-tax income was calculated as the pre-tax amount multiplied by the applicable tax rate. The applicable tax rates reflect the taxable jurisdiction and nature of each Special item. Return on Invested Capital Twelve months ended Sept. 30 2026 2025 Net income as reported $ 575,269 $ 524,740 Plus: Interest expense (after-tax) 42,191 43,488 Less: Interest income (after-tax) 4,405 6,181 Net operating profit after taxes $ 613,055 $ 562,047 Special items: Rationalization and asset impairment net charges 19,458 16,776 Transaction costs 2,489 4,174 Pension settlement net charges (gains) 719 (174) Amortization of step up in value of acquired inventories 2,482 3,034 Tax effect of Special items (2) 9,539 2,117 Adjusted net operating profit after taxes (1) $ 647,742 $ 587,974 Invested Capital Sept. 30, 2026 Sept. 30, 2025 Short-term debt $ — $ 88,203 Long-term debt, less current portion 1,149,969 1,150,315 Total debt 1,149,969 1,238,518 Total equity 1,554,721 1,414,633 Invested capital $2,704,690 $2,653,151 Return on invested capital as reported 22.7% 21.2% Adjusted return on invested capital (1) 23.9% 22.2%
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Non-GAAP Financial Measures Cash Conversion (In thousands) (Unaudited) 18 1) Free cash flow and cash conversion are non-GAAP financial measures. Refer to Non-GAAP Information section. Cash Conversion Three months ended Sept. 30 Nine months ended Sept. 30 2026 2025 2026 2025 Net cash provided by operating activities $215,757 $236,687 $571,691 $566,208 Capital expenditures (41,219) (31,636) (111,819) (84,028) Free cash flow (1) $174,538 $205,051 $459,872 $482,180 Adjusted net income $163,633 $137,218 $463,311 $404,686 Cash conversion (1) 107% 149% 99% 119%
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Segment EBIT EBIT and Adjusted EBIT Reconciliation – Three Months Ended September 30, 2026 (In thousands) (Unaudited) 19 Please see the following slide for corresponding footnotes Americas Welding International Welding The Harris Products Group Corporate / Eliminations Consolidated Three months ended September 30, 2026 Net sales $801,264 $226,904 $193,113 $ — $1,221,281 Inter-segment sales 25,959 6,502 3,977 (36,438) — Total sales $827,223 $233,406 $197,090 $ (36,438) $1,221,281 Net income $ 144,346 As a percent of total sales 11.8% EBIT (1) $164,935 $ 17,742 $ 34,063 $ (5,361) $ 211,379 As a percent of total sales 19.9% 7.6% 17.3% 17.3% Special items charges (3) 1,612 6,224 17 765 8,618 Adjusted EBIT (2) $166,547 $ 23,966 $ 34,080 $ (4,596) $ 219,997 As a percent of total sales 20.1% 10.3% 17.3% 18.0% Three months ended September 30, 2025 Net sales $691,794 $219,629 $149,804 $ — $1,061,227 Inter-segment sales 30,058 9,830 3,441 (43,329) — Total sales $721,852 $229,459 $153,245 $(43,329) $1,061,227 Net income $ 122,628 As a percent of total sales 11.6% EBIT (1) $127,240 $ 23,059 $ 27,762 $ 1,582 $ 179,643 As a percent of total sales 17.6% 10.0% 18.1% 16.9% Special items charges (4) 4,375 2,762 316 452 7,905 Adjusted EBIT (2) $131,615 $ 25,821 $ 28,078 $ 2,034 $ 187,548 As a percent of total sales 18.2% 11.3% 18.3% 17.7%
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Non-GAAP Financial Measures (continued) Footnotes for EBIT and Adjusted EBIT Reconciliation – Three Months Ended September 30, 2026 20 1) EBIT is defined as Operating income plus Other income. 2) The primary profit measure used by management to assess segment performance is adjusted EBIT. EBIT for each operating segment is adjusted for special items to derive adjusted EBIT. 3) Special items in 2026 primarily reflect Rationalization and asset impairment net charges of $1,612 in Americas Welding, $6,224 in International Welding and $17 in The Harris Products Group, as well as transaction costs of $765 in Corporate/Eliminations. 4) Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $4,150 in Americas Welding, $1,365 in International Welding and $316 in The Harris Products Group. In addition, there was an amortization of step up in value of acquired inventories of $1,397 in International Welding, as well as transaction costs of $452 in Corporate/Eliminations.