Lincoln Electric Holdings Inc. has recently released its 10-Q report, revealing its position as the world's largest designer and manufacturer of arc welding and cutting products. The company operates in three segments: Americas Welding, International Welding, and The Harris Products Group. It offers a wide range of welding, cutting, and brazing products and serves various industries, including general fabrication, oil and gas, power generation, automotive, and construction.
In the three months ended June 30, 2025, Lincoln Electric reported net sales of $1,088,673, representing a 6.6% increase from the same period in 2024. The company's gross profit was $405,547, with a gross profit margin of 37.3%, slightly lower than the 37.6% margin in the prior year period. Operating income for the quarter was $192,144, reflecting a 29.1% increase from the previous year.
For the six months ended June 30, 2025, Lincoln Electric reported net sales of $2,093,061, a 4.5% increase from the same period in 2024. The gross profit was $770,995, with a gross profit margin of 36.8%, slightly lower than the 37.6% margin in the prior year period. The company's operating income for the six months was $357,062, reflecting a 13.8% increase from the previous year.
The company's effective tax rate was 21.9% for the three months ended June 30, 2025, compared to 25.6% in the same period in 2024. For the six months ended June 30, 2025, the effective tax rate was 22.2%, compared to 23.7% in the same period in 2024.
In terms of segment performance, the Americas Welding segment reported net sales of $696,730 for the three months ended June 30, 2025, representing a 7.4% increase from the same period in 2024. The International Welding segment reported net sales of $232,824, reflecting a 2.5% decrease from the previous year. The Harris Products Group reported net sales of $159,119, showing an 18.8% increase from the same period in 2024.
Adjusted EBIT for the three months ended June 30, 2025, was $199,149, representing a 10.0% increase from the same period in 2024. For the six months ended June 30, 2025, the adjusted EBIT was $369,038, reflecting a 4.0% increase from the same period in 2024.
These figures demonstrate Lincoln Electric's solid performance in the welding and cutting products market, with steady growth in net sales and improved operating income, despite some margin pressure and changes in effective tax rates. Following these announcements, the company's shares moved 9.16%, and are now trading at a price of $243.79. If you want to know more, read the company's complete 10-Q report here.
