Lincoln Electric Reports Record Sales as Organic Growth Accelerates
The welding equipment manufacturer posted record net sales of $1,219.7 million for the second quarter.
Lincoln Electric Holdings (LECO) reported record net sales for the second quarter, driven by an acceleration in organic growth and pricing gains.
The company saw organic sales growth rise to 10.1% in the second quarter, up from 7.8% in the first quarter and 2.9% in the same period last year. This trajectory coincided with an expansion in profitability, as adjusted operating income margins reached 18.4%, compared to 16.9% in the prior quarter and 17.9% a year ago.
Net sales for the quarter increased 12.0% year-over-year to $1,219.7 million, up from $1,088.7 million in the second quarter of 2024. Adjusted earnings per share rose to $2.93, an increase from $2.60 in the prior-year quarter and $2.50 in the first quarter of 2025.
Performance varied across business segments. The Harris Products Group experienced a 34.2% increase in price, which offset an 8.2% decline in volume. In International Welding, a 7.0% increase in price and 1.6% organic growth partially offset a 4.7% decline in volume. The Americas Welding segment saw organic growth supported by a 3.7% increase in volume and a 7.1% increase in net sales year-over-year.
Cash flow metrics improved as cash conversion rose to 138% in the second quarter, compared to 81% in the second quarter of 2024.
The company also reduced its leverage, with total debt as a percentage of invested capital falling to 42.5% as of June 30, 2025, from 46.8% on December 31, 2024. Adjusted return on invested capital for the twelve months ended June 30, 2025, increased to 23.0% from 21.7% in the prior-year period.