Lincoln Electric (LECO) Q1 2025 Earnings
How Did LECO Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.88%.
Did LECO Beat Earnings? Q1 2025 Results
No. Lincoln Electric reported Q1 2025 earnings of $2.16 a share on Apr 30, 2025, missing the $2.23 consensus estimate by 3.2%. Revenue was $1.0B against a $980.0M estimate.
Lincoln Electric delivered a split verdict in Q1 2025, beating revenue expectations while falling short on earnings, as margin compression weighed on profitability despite solid top-line momentum. Net sales climbed 2.4% year-over-year to $1.00 billion, clearing the $979.96 million consensus estimate by 2.49%, yet adjusted EPS of $2.16 missed the $2.23 analyst estimate by 3.16%, slipping from $2.23 in the year-ago period. The earnings shortfall traced primarily to adjusted operating income margin contracting from 17.5% to 16.9%, a squeeze that overshadowed what was otherwise a constructive quarter. Notably, the company generated record first-quarter cash flow from operations of $185.69 million, reflecting 130% cash conversion, and returned $150.00 million to shareholders through buybacks and dividends. Growth was largely acquisition-driven, with organic sales declining 1.2% and foreign exchange creating an additional 1.3% headwind. CEO Steven Hedlund acknowledged the challenging environment, signaling the company is maintaining a cautious posture while integrating recent acquisitions to expand growth and margin performance over time.
- 4.9% benefit from acquisitions driving top-line growth
- Record first quarter cash flows from operations of $186 million with 130% cash conversion
- Price increases of 2.6% consolidated partially offsetting volume declines of 3.8%
- Harris Products Group delivered 9.5% price increases and 0.6% volume growth
- Americas Welding benefited from 7.6% acquisition contribution
“We continued to execute well in the quarter with solid core operating results. We are continuing to invest in the business and are focused on integrating our acquisitions to expand growth and margin performance, while diligently managing costs and maintaining a cautious posture during this portion of the cycle.”
Lincoln Electric CEO, on the earnings call
What Was Lincoln Electric's Outlook in Q1 2025?
Management indicated it is maintaining a cautious posture during this portion of the cycle while continuing to invest in the business and focusing on integrating acquisitions to expand growth and margin performance. The company highlighted its strong balance sheet and record cash flow generation as key assets to navigate the dynamic period.
LECO YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.0B | $981.2M | +2.4% |
| Gross Profit | $365.4M | $368.4M | −0.8% |
| Operating Income | $164.9M | $165.1M | −0.1% |
| Net Income | $118.5M | $123.4M | −4.0% |
LECO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.