Earnings release
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L I N C O L N E L E C T R I C H O L D I N G S , I N C . 22801 Saint Clair Avenue • Cleveland, Ohio 44117 • U.S.A. N E W S • R E L E A S E 1 LINCOLN ELECTRIC REPORTS THIRD QUARTER 2026 RESULTS Third Quarter 2026 Highlights ▪ Net sales increase 15.1% to $1,221 million; organic sales increase 14.5% led by volume growth ▪ Operating income margin increases to 17.3% and adjusted operating income margin increases to 18.0% ▪ EPS increases 19% to $2.63 and adjusted EPS increases 21% to $2.98 ▪ Cash flows from operations of $216 million; 107% cash conversion ▪ Returned $143 million to shareholders through dividends and share repurchases CLEVELAND, Tuesday, October 27, 2026 - Lincoln Electric Holdings, Inc. (the “Company”) (Nasdaq: LECO) today reported third quarter 2026 net income of $144.3 million, or diluted earnings per share (EPS) of $2.63, which includes special item after-tax net charges of $19.3 million, or $0.35 EPS. This compares with prior year period net income of $122.6 million, or $2.21 EPS, which included special item after-tax net charges of $14.6 million, or $0.26 EPS. Excluding special items, third quarter 2026 adjusted net income was $ 163.6 million, or $2.98 adjusted EPS. This compares with adjusted net income of $137.2 million, or $2.47 adjusted EPS, in the prior year period. Third quarter 2026 sales increased 15.1% to $1,221.3 million reflecting a 14.5% increase in organic sales, a 0.5% benefit from acquisitions and a 0.1% favorable foreign exchange. Operating income for the third quarter 2026 was $211.4 million, or 17.3% of sales. This compares with operating income of $176.7 million, or 16.6% of sales, in the prior year period. Excluding special items, adjusted operating income was $220.0 million, or 18.0% of sales, as compared with $184.6 million, or 17.4% of sales, in the prior year period. “We achieved strong third quarter results led by higher volumes, an increase in our adjusted operating income margin, and record adjusted earnings per share,” said Steven B. Hedlund, Chairman and Chief Executive Officer. “Our performance underscores the agility of our global team who are focused on supporting customers, diligently managing inflationary headwinds, and accelerating RISE strategy initiatives and investments to optimize long -term value for all our stakeholders.” Nine Month 2026 Summary Net income for the nine months ended September 30, 2026 was $439.2 million, or $7.97 EPS, which includes special item after-tax net charges of $24.1 million, or $0.44 EPS. This compares with prior year period net income of $384.5 million, or $6.86 EPS, which included special item after-tax net charges of $20.2 million, or $0.36 EPS. Excluding special items, adjusted net income for the nine months ended September 30, 2026 wa s $463.3 million, or $8.41 EPS. This compares with adjusted net income of $404.7 million, or $7.22 adjusted EPS, in the prior year period. Sales increased 12.9% to $3,562.4 million in the nine months ended September 30, 2026 primarily reflecting a 10.9% increase in organic sales, a 1.2% benefit from acquisitions, and 0.8% f avorable foreign exchange. Operating income for the nine months ended September 30, 2026 was $618.2 million, or 17.4% of sales. This compares with operating income of $533.7 million, or 16.9% of sales, in the prior year period. Excluding special items, adjusted operating income was $633.1 million, or 17.8% of sales, as compared with $549.1 million, or 17.4% of sales, in the prior year period.
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2 Dividend The Company’s Board of Directors declared a quarterly cash dividend of $0.87 per share, or $3.48 per share on an annualized basis, a 10.1% increase from the prior quarterly cash dividend. The declared quarterly ca sh dividend of $0.87 per share is payable January 15, 2027 to shareholders of record as of December 31, 2026. Webcast Information This earnings release and supplemental information is available under the Investor Relations section of our website. A call to discuss third quarter 2026 financial results will be webcast live today, October 27, 2026, at 10:00 a.m., Eastern Time. Participants can access the call in listen-only mode here and at https://ir.lincolnelectric.com. To participate via telephone, please dial (833) 461-5787 (domestic) or (626) 884-3620 (international) and use confirmation code 984927045. A replay of the earnings call will be available on the Company's website later today. About Lincoln Electric Lincoln Electric is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. Lincoln Electric’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 leverages proprietary technologies and expertise in materials science, power electronics, automation and intelligent software to help customers build better and achieve resilience in their operations. Headquartered in Cleveland, Ohio, Lincoln Electric is the essential ‘Linc’ that keeps the economy running. The Company operates 71 manufacturing and automation facilities across 20 countries and serves customers in over 160 countries. For more information about Lincoln Electric and its products and services, visit the Company’s website at https://www.lincolnelectric.com. Non-GAAP Information Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate, adjusted diluted earnings per share (“adjusted EPS”), Organic sales, Free cash flow, Cash conversion, adjusted net operating profit after taxes and adjusted return on invested capital (“adjusted ROIC”) 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. Forward-Looking Statements The Company’s expectations and beliefs concerning the future contained in this news release are forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current expectations and involve a number of risks and uncertainties. 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. Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company’s operating results. The factors include, but are not limited to: general economic, financial and market conditions; the effectiveness of commercial and operating initiatives; the effectiveness of information systems and cybersecurity programs; presence of artificial intelligence technologies; completion of planned divestitures; interest rates; disruptions, uncertainty or volatility in the credit markets that may limit our access to capital; currency exchange rates and devaluations; adverse outcome of pending or potential litigation; actual costs of the Company’s rationalization plans; the Company’s ability to complete acquisitions, including the Company’s ability to successfully integrate acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity ; the effects of changes in tax law; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, geopolitical conflicts, political unrest, acts of terror, natural disasters and pandemics on the Company or its customers, suppliers and the economy in general . For additional discussion, see “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
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3 Contact Amanda Butler Vice President, Investor Relations & Communications Tel: 216.383.2534 Email: Amanda_Butler@lincolnelectric.com
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4 Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Consolidated Statements of Income Fav (Unfav) to Three Months Ended September 30, Prior Year 2026 % of Sales 2025 % of Sales $ % Net sales $ 1,221,281 100.0 % $ 1,061,227 100.0 % $ 160,054 15.1 % Cost of goods sold 796,250 65.2 % 671,916 63.3 % (124,334) (18.5) % Gross profit 425,031 34.8 % 389,311 36.7 % 35,720 9.2 % Selling, general & administrative expenses 205,802 16.9 % 206,823 19.5 % 1,021 0.5 % Rationalization and asset impairment net charges 7,853 0.6 % 5,831 0.5 % (2,022) (34.7) % Operating income 211,376 17.3 % 176,657 16.6 % 34,719 19.7 % Interest expense, net 11,346 0.9 % 13,648 1.3 % 2,302 16.9 % Other income 3 — 2,986 0.3 % (2,983) (99.9) % Income before income taxes 200,033 16.4 % 165,995 15.6 % 34,038 20.5 % Income taxes 55,687 4.6 % 43,367 4.1 % (12,320) (28.4) % Effective tax rate 27.8 % 26.1 % (1.7) % Net income $ 144,346 11.8 % $ 122,628 11.6 % $ 21,718 17.7 % Basic earnings per share $ 2.65 $ 2.23 $ 0.42 18.8 % Diluted earnings per share $ 2.63 $ 2.21 $ 0.42 19.0 % Weighted average shares (basic) 54,408 55,097 Weighted average shares (diluted) 54,873 55,574 Fav (Unfav) to Nine Months Ended September 30, Prior Year 2026 % of Sales 2025 % of Sales $ % Net sales $ 3,562,378 100.0 % $ 3,154,288 100.0 % $ 408,090 12.9 % Cost of goods sold 2,289,219 64.3 % 1,993,982 63.2 % (295,237) (14.8) % Gross profit 1,273,159 35.7 % 1,160,306 36.8 % 112,853 9.7 % Selling, general & administrative expenses 641,484 18.0 % 614,349 19.5 % (27,135) (4.4) % Rationalization and asset impairment net charges 13,497 0.4 % 12,238 0.4 % (1,259) (10.3) % Operating income 618,178 17.4 % 533,719 16.9 % 84,459 15.8 % Interest expense, net 37,241 1.0 % 38,394 1.2 % 1,153 3.0 % Other income 332 — 7,464 0.2 % (7,132) (95.6) % Income before income taxes 581,269 16.3 % 502,789 15.9 % 78,480 15.6 % Income taxes 142,022 4.0 % 118,278 3.7 % (23,744) (20.1) % Effective tax rate 24.4 % 23.5 % (0.9) % Net income $ 439,247 12.3 % $ 384,511 12.2 % $ 54,736 14.2 % Basic earnings per share $ 8.04 $ 6.92 $ 1.12 16.2 % Diluted earnings per share $ 7.97 $ 6.86 $ 1.11 16.2 % Weighted average shares (basic) 54,630 55,567 Weighted average shares (diluted) 55,098 56,020
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5 Lincoln Electric Holdings, Inc. Financial Highlights (In thousands) (Unaudited) Balance Sheet Highlights Selected Consolidated Balance Sheet Data September 30, 2026 December 31, 2025 Cash and cash equivalents $ 283,237 $ 308,789 Accounts receivable, net 603,307 538,791 Inventories 699,380 633,364 Total current assets 1,826,187 1,739,512 Property, plant and equipment, net 747,619 702,762 Total assets 3,893,630 3,777,577 Trade accounts payable 463,738 364,934 Total current liabilities (1) 955,713 956,691 Long-term debt, less current portion 1,149,969 1,150,228 Total equity 1,554,721 1,469,794 Operating Working Capital September 30, 2026 December 31, 2025 Average operating working capital to Net sales (2) 16.6 % 17.9 % Invested Capital September 30, 2026 December 31, 2025 Short-term debt (1) $ — $ 143,780 Long-term debt, less current portion 1,149,969 1,150,228 Total debt 1,149,969 1,294,008 Total equity 1,554,721 1,469,794 Invested capital $ 2,704,690 $ 2,763,802 Total debt / invested capital 42.5 % 46.8 % (1) Includes current portion of long-term debt. (2) Average operating working capital to Net sales is defined as the sum of Accounts receivable, Inventories and contract assets less Trade accounts payable and contract liabilities as of period end divided by annualized rolling three months of Net sales.
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6 Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Non-GAAP Financial Measures Three Months Ended Nine Months Ended September 30, September 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 value of 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 value of 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 (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) During the third quarter of 2026, the Company determined that certain foreign earnings may be repatriated and recognized approximately $12,977 of related income tax expense. During the third quarter of 2025, the Company recognized tax expense of approximately $8,800, reflecting the cumulative impact of the OBBBA provisions. (6) 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.
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7 Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Non-GAAP Financial Measures Twelve Months Ended September 30, Return on Invested Capital 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 September 30, 2026 September 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 % (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. Three Months Ended Nine Months Ended September 30, Cash Conversion 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 % (1) Free cash flow and cash conversion are non-GAAP financial measures. Refer to Non-GAAP Information section.
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8 Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Condensed Consolidated Statements of Cash Flows Three Months Ended September 30, 2026 2025 OPERATING ACTIVITIES: Net income $ 144,346 $ 122,628 Adjustments to reconcile Net income to Net cash provided by operating activities: Depreciation and amortization 26,431 24,744 Deferred income taxes 14,024 97,737 Other non-cash items, net 3,011 1,904 Changes in operating assets and liabilities, net of effects from acquisitions: (Increase) decrease in accounts receivable (18,011) 61,638 Increase in inventories (10,854) (39,574) Decrease (increase) in other current assets 93 (62,642) Increase in trade accounts payable 16,890 22,463 Increase in other current liabilities 47,530 9,879 Net change in other long-term assets and liabilities (7,703) (2,090) NET CASH PROVIDED BY OPERATING ACTIVITIES 215,757 236,687 INVESTING ACTIVITIES: Capital expenditures (41,219) (31,636) Acquisition of businesses, net of cash acquired — (104,346) Proceeds from sale of property, plant and equipment 4,595 1,177 NET CASH USED BY INVESTING ACTIVITIES (36,624) (134,805) FINANCING ACTIVITIES: Proceeds from short-term borrowings — 82,884 Payments on long-term borrowings — (100,000) Proceeds from exercise of stock options 2,304 3,667 Purchase of shares for treasury (99,397) (52,664) Cash dividends paid to shareholders (43,223) (41,572) NET CASH USED BY FINANCING ACTIVITIES (140,316) (107,685) Effect of exchange rate changes on Cash and cash equivalents 1,977 (681) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 40,794 (6,484) Cash and cash equivalents at beginning of period 242,443 299,481 Cash and cash equivalents at end of period $ 283,237 $ 292,997 Cash dividends paid per share $ 0.79 $ 0.75
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9 Lincoln Electric Holdings, Inc. Financial Highlights (In thousands, except per share amounts) (Unaudited) Condensed Consolidated Statements of Cash Flows Nine Months Ended September 30, 2026 2025 OPERATING ACTIVITIES: Net income $ 439,247 $ 384,511 Adjustments to reconcile Net income to Net cash provided by operating activities: Depreciation and amortization 78,409 72,990 Deferred income taxes 32,516 71,395 Other non-cash items, net 15,730 14,002 Changes in operating assets and liabilities, net of effects from acquisitions: (Increase) decrease in accounts receivable (66,620) 9,430 Increase in inventories (71,007) (87,222) Decrease (increase) in other current assets 18,242 (66,050) Increase in trade accounts payable 100,106 90,555 Increase in other current liabilities 36,242 78,458 Net change in other assets and liabilities (11,174) (1,861) NET CASH PROVIDED BY OPERATING ACTIVITIES 571,691 566,208 INVESTING ACTIVITIES: Capital expenditures (111,819) (84,028) Acquisition of businesses, net of cash acquired 140 (136,655) Proceeds from sale of property, plant and equipment 5,851 6,408 NET CASH USED BY INVESTING ACTIVITIES (105,828) (214,275) FINANCING ACTIVITIES: (Payments on) proceeds from short-term borrowings (143,889) 77,678 Payments on long-term borrowings — (100,169) Proceeds from exercise of stock options 10,863 10,061 Purchase of shares for treasury (232,189) (286,488) Cash dividends paid to shareholders (130,689) (126,476) NET CASH USED BY FINANCING ACTIVITIES (495,904) (425,394) Effect of exchange rate changes on Cash and cash equivalents 4,489 (10,804) DECREASE IN CASH AND CASH EQUIVALENTS (25,552) (84,265) Cash and cash equivalents at beginning of period 308,789 377,262 Cash and cash equivalents at end of period $ 283,237 $ 292,997 Cash dividends paid per share $ 2.37 $ 2.25
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10 Lincoln Electric Holdings, Inc. Segment Highlights (In thousands) (Unaudited) Americas International The Harris Corporate / Welding Welding Products Group 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 % (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 impairments 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.
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11 Lincoln Electric Holdings, Inc. Segment Highlights (In thousands) (Unaudited) Americas International The Harris Corporate / Welding Welding Products Group Eliminations Consolidated Nine months ended September 30, 2026 Net sales $ 2,281,927 $ 697,231 $ 583,220 $ — $ 3,562,378 Inter-segment sales 91,572 19,873 13,613 (125,058) — Total sales $ 2,373,499 $ 717,104 $ 596,833 $ (125,058) $ 3,562,378 Net income $ 439,247 As a percent of total sales 12.3 % EBIT (1) $ 448,913 $ 62,945 $ 117,120 $ (10,468) $ 618,510 As a percent of total sales 18.9 % 8.8 % 19.6 % 17.4 % Special items charges (3) 3,197 10,278 22 1,433 14,930 Adjusted EBIT (2) $ 452,110 $ 73,223 $ 117,142 $ (9,035) $ 633,440 As a percent of total sales 19.0 % 10.2 % 19.6 % 17.8 % Nine months ended September 30, 2025 Net sales $ 2,041,631 $ 671,514 $ 441,143 $ — $ 3,154,288 Inter-segment sales 103,821 24,303 12,535 (140,659) — Total sales $ 2,145,452 $ 695,817 $ 453,678 $ (140,659) $ 3,154,288 Net income $ 384,511 As a percent of total sales 12.2 % EBIT (1) $ 386,313 $ 73,658 $ 83,711 $ (2,499) $ 541,183 As a percent of total sales 18.0 % 10.6 % 18.5 % 17.2 % Special items charges (4) 7,415 5,725 580 1,683 15,403 Adjusted EBIT (2) $ 393,728 $ 79,383 $ 84,291 $ (816) $ 556,586 As a percent of total sales 18.4 % 11.4 % 18.6 % 17.6 % (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 impairments net charges of $3,197 in Americas Welding, $10,278 in International Welding and $22 in The Harris Products Group. In addition, there were transaction costs of $1,433 in Corporate/Eliminations. (4) Special items in 2025 primarily reflect Rationalization and asset impairments net charges of $7,190 in Americas Welding, $4,468 in International Welding and $580 in The Harris Products Group. In addition, there was an amortization of step up in value of acquired inventories of $1,257 in International Welding, as well as transaction costs of $1,683 in Corporate/Eliminations.
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12 Lincoln Electric Holdings, Inc. Change in Net Sales by Segment (In thousands) (Unaudited) Three Months Ended September 30th Change in Net Sales by Segment Change in Net Sales due to: Net Sales Foreign Net Sales 2025 Volume Price Acquisitions Exchange 2026 Operating Segments Americas Welding $ 691,794 $ 91,589 $ 16,390 $ — $ 1,491 $ 801,264 International Welding 219,629 (3,039) 5,287 5,071 (44) 226,904 The Harris Products Group 149,804 4,460 38,469 — 380 193,113 Consolidated $ 1,061,227 $ 93,010 $ 60,146 $ 5,071 $ 1,827 $ 1,221,281 % Change Americas Welding 13.2 % 2.4 % — 0.2 % 15.8 % International Welding (1.4) % 2.4 % 2.3 % — 3.3 % The Harris Products Group 3.0 % 25.7 % — 0.2 % 28.9 % Consolidated 8.8 % 5.7 % 0.5 % 0.1 % 15.1 % Nine Months Ended September 30th Change in Net Sales by Segment Change in Net Sales due to: Net Sales Foreign Net Sales 2025 Volume Price Acquisitions Exchange 2026 Operating Segments Americas Welding $ 2,041,631 $ 138,658 $ 91,550 $ — $ 10,088 $ 2,281,927 International Welding 671,514 (35,601) 9,360 37,058 14,900 697,231 The Harris Products Group 441,143 (9,898) 147,705 — 4,270 583,220 Consolidated $ 3,154,288 $ 93,159 $ 248,615 $ 37,058 $ 29,258 $ 3,562,378 % Change Americas Welding 6.8 % 4.5 % — 0.5 % 11.8 % International Welding (5.3) % 1.4 % 5.5 % 2.2 % 3.8 % The Harris Products Group (2.2) % 33.5 % — 0.9 % 32.2 % Consolidated 3.0 % 7.9 % 1.2 % 0.8 % 12.9 %