On this page of StockholderLetter.com we present the latest annual shareholder letter from LINCOLN ELECTRIC HOLDINGS INC — ticker symbol LECO. Reading current and past LECO letters to shareholders can bring important insights into the investment thesis.

 •  3/20/2025 Letter Continued (Full PDF)
 •  3/17/2023 LECO Stockholder Letter
 •  3/18/2024 LECO Stockholder Letter
 •  More "Industrial Machinery & Equipment" Category Stockholder Letters
 •  LECO Benford's Law Stock Score = 98

LECO Shareholder/Stockholder Letter Transcript:

Building a Better World
2024 ANNUAL REPORT & 2025 PROXY STATEMENT

Financial Highlights Years ended December 31 (dollars in millions, except per share)
NET SALES
OPERATING INCOME MARGIN*
Reported
$3,761
2022
$4,192
$4,009
16.3% 16.8%
17.1% 17.1%
2024
2022
2023
2023
RETURN ON INVESTED CAPITAL*
Reported
22.1% 22.7%
2022
Reported
24.0% 24.1%
19.2%
2023
21.8%
$8.04 $8.27
2022
2024
CASH FLOW FROM OPERATIONS
17.6%
2024
64%
2024
2022
$472
$486
2022
Adjusted
$545
$548
$466
2023
$531
2024
AVERAGE OPERATING WORKING CAPITAL RATIO*
Adjusted
$9.37 $9.41
$8.15
2023
$9.29
2024
91%
xx%
2023
20.9%
2022
17.1%
16.9%
2023
2024
ANNUAL CASH DIVIDEND PER COMMON SHARE
105%
$599
2023
15.9%
CASH CONVERSION RATIO*
$383
2022
Reported
EARNINGS PER COMMON SHARE*
Adjusted
$668
NET INCOME*
Adjusted
$2.24
$2.56
$2.84
xx%
2024
2022
2023
2024
* Please see Appendix A for definitions and reconciliation of adjusted results to the most comparable reported results.
Sustainability Highlights
Safety
GHG Emissions
Energy Intensity
38% TRCR REDUCTION
18% REDUCTION
10% REDUCTION
(2024 vs 2018)
(2024 vs 2018)
(2024 vs 2018)
Recycling
/DQG   OO $YRLGDQFH
Water Use
78.4% in 2024
95.6% in 2024
29% REDUCTION
2025 GOAL: 52% Reduction
2025 Goal: 80% rate
2025 Goal: 10% Reduction
2025 Goal: 97% rate
2025 Goal: 16% Reduction
2025 Goal: 14% Reduction
2024
(2024 vs 2018)
6
Please visit: https://sustainability.lincolnelectric.com for more details

LINCOLN ELECTRIC 2024 ANNUAL REPORT
Operating to a
Higher Standard to
Build a Better World
   6WHYHQ %  +HGOXQG Chair, President and Chief Executive Officer
DEAR LINCOLN ELECTRIC SHAREHOLDERS,
I am pleased to report another year of strong financial
and operational performance while navigating a
challenging demand environment. By maintaining
operational agility, diligently managing costs,
launching savings actions, and investing in long-term
growth, we delivered record profit margins, strong
earnings, cash flow generation, and top quartile
returns. As we mark our 130th anniversary, we are
better positioned to win than ever before.
new savings actions which will deliver over $60 million in
annualized savings starting in 2024 and in 2025. These actions
resulted in a record adjusted operating income margin of 17.6%,
our second highest adjusted earnings per share performance at
$9.29 and cash flow generation of $599 million, and maintained
top quartile return on invested capital of 21.8%.
We invested $369 million in growth, from higher internal
capital investments to fund growth and productivity, as
well as $253 million to acquire three bolt-on acquisitions.
These investments will support expanded growth across
automation, new industrial channels, and new AI-based
FINANCIAL PERFORMANCE HIGHLIGHTS
We achieved $4 billion in net sales in 2024 from acquisitions
and price actions, which were offset by broad volume
compression as our larger industrial customers lowered
production levels and deferred capital spending. Despite
digital solutions. We returned $426 million to shareholders
reflecting our 11% increase in the dividend payout rate and
$264 million in share repurchases, or a 1.8% decline in our
fully diluted share count.
persistent industrial sector headwinds, we successfully offset
These achievements underscore our commitment to deliver
the unfavorable volume impact with strong execution of our
sustainable value to our shareholders and compound earnings
strategic commercial and operational initiatives and launched
through the cycle.
2024 Financial Highlights
Net Sales:
Adjusted earnings per share:
Top quartile Adjusted ROIC:
$4.0 billion
$9.29
21.8%
Record Adjusted operating margin:
Cash flow generation:
Returned to shareholders:
+50bps to 17.6%
$599 million
$426 million
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LINCOLN ELECTRIC 2024 ANNUAL REPORT
1
FINANCIAL METRIC
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High single-digit to low double-digit %
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16.0% (+/- 150bps)
15.7% average
Americas Welding EBIT margin
17% to 19%
18.0% average
International Welding EBIT margin
12% to 14%
10.5% average
Harris Products Group EBIT margin
13% to 15%
14.7% average
Adjusted EPS CAGR
High-teens % Low-20%
22%
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18% to 20% (top quartile)
22.1% average
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15% at 12/31/2025 (top decile)
16.9%
A maximum of 2% price contribution is used in measuring 2020-2024 sales growth performance. Net Sales as reported increased 11% CAGR 2020-2024.
ACHIEVING OUR HIGHER STANDARD 2025 STRATEGY
THE YEAR AHEAD
We are on track to achieve our Higher Standard 2025 strategy
As we celebrate our 130th anniversary in 2025, we reflect
targets later this year. We are delivering accelerated sales
upon the enduring legacy, resilience and ability to adapt and
growth within target range and I am confident we will
thrive for over a century. Our longevity is a testament to our
attain our goal of increasing our average adjusted operating
commitment to excellence, innovation and delivering value to
income margin by 200 basis points to an average 16% versus
our shareholders.
the 13.7% average in the prior cycle. Our earnings per share
growth rate has compounded at the top end of our target
range, and we have maintained top quartile ROIC and working
capital performance.
This year, we will maintain strong momentum in the
organization. Profitable growth remains our top priority, and
we will continue to position the Company to excel through the
cycle with the most innovative portfolio and strong execution
Innovation continues to differentiate our brand worldwide.
of our strategic operational and commercial initiatives. We
We remain at the forefront of industry transformation
will maintain a balanced capital allocation strategy and are
with our automation portfolio, which achieved $911 million
focused on delivering enhanced profit margin and earnings
in net sales in 2024 and we have continued to expand its
performance in the year ahead.
offering and technology capabilities. In addition, our product
development teams accelerated new product launches in 2024
with over 80 new launches. These innovations will support
our new product vitality index, which is a measure of return
On behalf of the entire organization and our Board of
Directors, thank you for your support and helping us achieve
our purpose to Build a Better World.
on investment in R&D. In 2024, we achieved a strong 50%
vitality index in our equipment sales     demonstrating that our
innovations continue to deliver a compelling value proposition
to customers.
Operationally, our Higher Standard 2025 enterprise
initiatives focused on streamlining core business processes,
driving standardized operational best practices, maturing
shared services, and improving safety and environmental
performance. These efforts continue to reshape the business
to outperform in the next growth cycle.
6WHYHQ %  +HGOXQG
Chair, President and Chief Executive Officer

2024 Form 10-K



 3/20/2025 Letter Continued (Full PDF)