Lincoln Electric Holdings Inc. Reports Fourth Quarter and Full Year 2024 Results

For the fourth quarter of 2024, Lincoln Electric reported a net income of $140.2 million, translating to diluted earnings per share (EPS) of $2.47. This figure includes after-tax special item charges amounting to $5.8 million, or $0.10 EPS. In comparison, the prior year's fourth quarter net income was $156.6 million, or $2.70 EPS, bolstered by after-tax special item gains of $14.6 million, or $0.25 EPS. Excluding these special items, the adjusted net income for Q4 2024 rose to $146.0 million, or $2.57 adjusted EPS, a modest increase from the adjusted net income of $142.0 million, or $2.45 adjusted EPS, in the same quarter of the previous year.

Sales for the fourth quarter fell by 3.4% to $1,022.0 million, primarily driven by a 7.5% decrease in organic sales and a 1.1% unfavorable foreign exchange impact. However, this decline was partially offset by a 5.2% increase attributable to acquisitions. Operating income for Q4 2024 amounted to $177.0 million, representing 17.3% of sales, a decrease from the previous year's operating income of $204.0 million, which constituted 19.3% of sales. Adjusted operating income, excluding special items, was $185.6 million, or 18.2% of sales, compared to $182.1 million, or 17.2% of sales, in Q4 2023.

In the twelve months ended December 31, 2024, Lincoln Electric reported a net income of $466.1 million, or $8.15 EPS. This figure reflects after-tax special item charges of $65.2 million, or $1.14 EPS, contrasting with the previous year's net income of $545.2 million or $9.37 EPS, which included negligible special item charges of $2.7 million, or $0.04 EPS. Adjusted net income for the full year showed a slight decline of 3.0%, amounting to $531.3 million, or $9.29 EPS, compared to $547.9 million, or $9.41 EPS, in 2023.

Sales for the full year decreased 4.4% to $4,008.7 million, influenced by a 6.5% drop in organic sales, while acquisitions contributed positively with a 2.5% increase. The operating income for 2024 was recorded at $636.5 million, or 15.9% of sales, down from $717.8 million, or 17.1% of sales, in 2023. When adjusted for special items, the operating income was $704.4 million, or 17.6% of sales, compared to $718.8 million, or 17.1% of sales, in the prior year.

Steven B. Hedlund, Chair, President, and CEO of Lincoln Electric, commented on the results: “We are pleased with fourth quarter and full year operating profit margin and earnings performance despite challenging industrial sector demand as diligent price/cost management, strong execution of our cost-saving actions and operational improvements advanced performance towards our 2025 Higher Standard Strategy goals. Our focus on serving customers, driving employee engagement, and investing in long-term growth positions us well to capitalize on the next growth cycle and deliver superior value for our stakeholders.”

Lincoln Electric will host a conference call on February 13, 2025, at 10:00 a.m. Eastern Time to discuss these financial results in greater detail. Investors and analysts can access the call via a live webcast from the company’s Investor Relations homepage.

Founded in 1895 and headquartered in Cleveland, Ohio, Lincoln Electric is a global leader in the engineering, design, and manufacturing of advanced welding solutions, automated joining, assembly and cutting systems. The company operates in 20 countries with 71 manufacturing and automation system integration facilities, providing a wide array of products and services to customers in over 160 countries.

For more information, visit Lincoln Electric's official website at lincolnelectric.com.

This report reflects the company's commitment to transparency and performance, even in the face of industry challenges, while setting the stage for future growth as it pursues its strategic goals.