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Sep 30, 2025
Lincoln Electric Q3 2025 Earnings Report
Lincoln Electric reported strong third quarter 2025 results with increased profit margins, solid adjusted earnings growth, and record cash flow generation.
Key Takeaways
Lincoln Electric delivered robust performance in the third quarter of 2025, with net sales increasing by 7.9% to $1,061.2 million, driven by strong organic sales growth and strategic acquisitions. The company achieved significant improvements in profitability, with operating income margin reaching 16.6% and adjusted operating income margin at 17.4%. Diluted EPS stood at $2.21, while adjusted diluted EPS rose to $2.47, reflecting effective cost management and operational efficiency. Cash flow from operations was exceptionally strong at $237 million, leading to a 149% cash conversion rate.
Net sales increased by 7.9% to $1,061.2 million, with organic sales growing by 5.6% and acquisitions contributing 1.7%.
Operating income margin improved to 16.6%, and adjusted operating income margin reached 17.4%, demonstrating enhanced profitability.
Diluted EPS was $2.21, and adjusted diluted EPS increased to $2.47, indicating strong earnings growth.
Cash flows from operations were $237 million, resulting in a robust 149% cash conversion rate, highlighting excellent liquidity.
Revenue by Segment
Forward Guidance
The report does not contain explicit forward-looking guidance for the next quarter or year. However, the company's Chairman and CEO expressed confidence in their positioning for future outperformance and value generation through focused execution, growth investments, and operating agility.
Positive Outlook
- Focused execution is expected to drive continued strong performance.
- Growth investments are anticipated to contribute to future success.
- Operating agility positions the company to outperform through various market cycles.
- The company aims to generate superior value for shareholders.
- The increase in quarterly cash dividend by 5.3% signals confidence in future financial health.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- General economic, financial, and market conditions could adversely affect operating results.
- Disruptions, uncertainty, or volatility in credit markets may limit access to capital.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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