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- **Revenue Growth**: 8% Q3 sales increase to $1.06 billion, driven by 9.6% price growth and M&A contributions. Automation sales lagged but 15-20% sequential growth expected in Q4.
- **Profitability**: 15% EPS growth to $2.47, 17.4% operating margin, and record $136 million cash flow. LIFO charges offset by $8 million savings.
- **Strategic Momentum**: 22.2% ROIC, $94 million shareholder returns, and 119% cash conversion. Harris Products Group EBIT up 28% to $28 million.
- **Automation Recovery**: 2026 capital spending outlook tied to 2029 model launches, with 15-20% Q4 growth.
- **Margin Resilience**: 18.2% Americas Welding margin, 11.3% International Welding margin, and 18.3% Harris Products Group margin.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 sales increased 8% year-over-year to $1.06 billion, driven by 9.6% price growth and 1.7% contribution from acquisitions. Americas Welding segment saw 5.6% organic growth, while automation sales were slightly below expectations due to project timing.
- **Profitability**: Adjusted EPS rose 15% to $2.47, with operating margin improving 10 basis points to 17.4%. Cash flow from operations hit a record $136 million, and cash conversion ratio reached 119%.
- **Strategic Focus**: Emphasized automation recovery (15-20% sequential growth expected in Q4) and AI investment to offset inflation and volume headwinds.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income of $420 million, 15% increase in adjusted EPS, and 119% cash conversion ratio. LIFO charges of $5 million were partially offset by $8 million in permanent savings.
- **Segment Performance**: Americas Welding EBIT margin held steady at 18.2%, while International Welding margin improved 230 basis points to 11.3%. Harris Products Group saw 28% EBIT growth to $28 million.
- **Capital Allocation**: $136 million invested in growth, $94 million returned to shareholders via dividends and buybacks, and 22.2% ROIC.

**【Q&A Key Highlights】**
- **Automation Recovery**: Q3 automation sales below expectations but 15-20% sequential growth forecast for Q4. 2026 capital spending outlook tied to 2029 model launches.
- **Pricing Resilience**: 10-15% of business exposed to HVAC seasonality, but 9% price growth offset 2% volume decline. Inelastic demand maintained margins despite inflation.
- **International Challenges**: Europe cautious on defense spending, but Asia-Pacific growth offset EMEA weakness. Harris Products Group margin expanded 190 basis points to 18.3%.
- **Incremental Margins**: High-teens incremental margins in Q3, with potential for mid-20s+ as volumes recover. LIFO charges expected to stabilize in Q4.

Lincoln Electric Holdings, Inc. (LECO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LECO

LECO fundamentals

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