Lincoln Electric (LECO) Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 12, 2026 astatine 11:25 AM CST 44 min read

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Thursday, Feb. 12, 2026 astatine 10 a.m. ET

• President and Chief Executive Officer — Steven B. Hedlund

• Chief Financial Officer, Executive Vice President, and Treasurer — Gabriel Bruno

• Vice President, Investor Relations and Communications — Amanda H. Butler

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Steven B. Hedlund: Thank you, Amanda. Good morning, everyone. Turning to descent three, I americium arrogant to study grounds 2025 performance. Despite challenged extremity markets, our income accrued 6% to a grounds $4,200,000,000 from acquisitions and price. We maintained past year's grounds adjusted operating income margin, accrued adjusted EPS to a grounds $9.87, and generated beardown currency flows from operations. This resulted successful grounds currency returns to shareholders. Disciplined outgo absorption and the agility of our proviso concatenation squad mitigated unprecedented levels of inflation, finishing the twelvemonth astatine our neutral price-cost target. In addition, our savings programs generated an incremental $31,000,000 of imperishable savings.

These achievements, combined with coagulated commercialized and operational execution, culminated successful apical quartile ROIC and full shareholder instrumentality show versus our peers. On behalf of the committee and enactment team, I would similar to convey our planetary squad for delivering these superb results. Their commitment, focus, and agility proceed to presumption the institution to outperform successful the years to come. Turning to descent 4 to screen request trends successful the 4th quarter. Organic income grew 2.5% from terms which was mostly offset by weaker measurement performance. As discussed connected earlier calls, we faced a challenging anterior twelvemonth examination successful our automation portfolio which magnified measurement declines. Excluding automation, integrated income would person accrued astir 8%.

The maturation reflects terms contributions successful consumable and equipment, arsenic good arsenic comparatively dependable measurement show successful our welding consumables successful Americas and planetary welding. 2025 was a challenging twelvemonth for automation owed to little superior spending and project

Amanda H. Butler: deferrals.

Steven B. Hedlund: Automation income were $240,000,000 successful the quarter, 11% diminution versus a grounds anterior year. And connected a afloat twelvemonth basis, we achieved $870,000,000 which is simply a mid azygous digit percent decline. We are encouraged by beardown bid rates and a coagulated backmost successful our automation concern successful the 4th quarter. This is expected to thrust maturation successful 2026. Due to seasonality and the timing of gross recognition, we expect archetypal 4th income to beryllium dependable with anterior twelvemonth levels and past pivot to maturation starting successful the 2nd quarter. This follows the emblematic seasonality cadence of a 40-60% divided betwixt the archetypal and 2nd fractional of the year.