LINCOLN ELECTRIC HOLDINGS INC Segments Disclosure
NOTE 6 – SEGMENT INFORMATION
The Company is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. The Company’s innovative solutions enable higher quality and productivity across a variety of processes including welding, cutting, brazing, machining, process automation, and field repair.
The Company’s products include arc welding equipment, filler metals (welding, brazing and soldering consumables), cutting systems (laser, plasma and oxyfuel), wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, mobile power equipment, wear solutions, software, and education solutions; as well as a comprehensive portfolio of automated solutions and system integration services for joining, cutting, material handling, module assembly, and end of line testing. Services include additive manufacturing, precision fabrication, wear services, upfitting, and training.
The Company has aligned its organizational and leadership structure into three operating segments to support growth strategies and enhance the utilization of the Company’s worldwide resources and global sourcing initiatives. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global cutting, soldering and brazing businesses, specialty gas equipment, as well as its retail business in the United States.
Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the adjusted earnings before interest and income taxes ("Adjusted EBIT") profit measure. Adjusted EBIT is defined as Operating income plus Other income (expense), adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM uses segment Adjusted EBIT to allocate resources for each segment predominantly in establishing the Company’s long-term strategy and in developing the annual budget. The CODM considers actual performance using Adjusted EBIT when making decisions about allocating capital and resources to the segments.
The accounting principles applied at the operating segment level are generally the same as those applied at the consolidated financial statement level with the exception of LIFO. Segment assets include inventories measured on a FIFO basis while consolidated inventories include inventories reported on a LIFO basis. Segment and consolidated income before interest and income taxes include the effect of inventories reported on a LIFO basis. At December 31, 2025, 2024 and 2023 approximately 38%, 35% and 37%, respectively, of total inventories were valued using the LIFO method. LIFO is used for a substantial portion of U.S. inventories included in Americas Welding. Inter-segment sales are recorded at agreed upon prices that approximate arm’s length prices and are eliminated in consolidation. Corporate-level expenses are allocated to the operating segments.
The following tables present Adjusted EBIT by segment and other segment information:
The Harris | |||||||||||
Americas | International | Products | |||||||||
Welding | | Welding | | Group | | Total | |||||
For the Year Ended December 31, 2025 | |
| |
| |
| | ||||
Net sales | $ | 2,723,561 | $ | 930,865 | $ | 578,577 | $ | 4,233,003 | |||
Inter-segment sales |
| 128,922 |
| 30,160 |
| 15,084 | 174,166 | ||||
2,852,483 | 961,025 | 593,661 | 4,407,169 | ||||||||
Reconciliation to Consolidated Net sales | |||||||||||
Elimination of inter-segment sales | (174,166) | ||||||||||
Net sales | $ | 4,233,003 | |||||||||
Cost of goods sold (1) | 1,747,274 | 692,622 | 430,100 | ||||||||
Other segment expenses (1) (4) | 581,080 | 169,260 | 57,021 | ||||||||
Addback: Special items charge (1) | (10,710) |
| (11,442) |
| (1,068) | ||||||
Segment Adjusted EBIT | $ | 534,839 | $ | 110,585 | $ | 107,608 | $ | 753,032 | |||
Other Segment Information |
| ||||||||||
Total assets | $ | 2,464,376 | $ | 1,244,117 | $ | 431,259 | 4,139,752 | ||||
Capital expenditures | (93,333) | (20,509) | (13,132) | (126,974) | |||||||
Depreciation and amortization | 67,942 |
| 23,549 |
| 10,432 |
| 101,923 | ||||
For the Year Ended December 31, 2024 |
| |
| |
| |
| | |||
Net sales | $ | 2,564,847 | $ | 933,722 | $ | 510,101 | $ | 4,008,670 | |||
Inter-segment sales |
| 135,758 |
| 35,861 |
| 12,321 | 183,940 | ||||
2,700,605 | 969,583 | 522,422 | 4,192,610 | ||||||||
Reconciliation to Consolidated Net sales | |||||||||||
Elimination of inter-segment sales | (183,940) | ||||||||||
Net sales | $ | 4,008,670 | |||||||||
Cost of goods sold (2) | 1,638,568 | 700,428 | 378,292 | ||||||||
Other segment expenses (2) (4) | 559,670 | 200,785 | 59,757 | ||||||||
Addback: Special items charge (2) | (27,821) |
| (37,747) |
| (3,955) | ||||||
Segment Adjusted EBIT | $ | 530,188 | $ | 106,117 | $ | 88,328 | $ | 724,633 | |||
Other Segment Information |
| ||||||||||
Total assets | $ | 2,416,411 | $ | 1,050,327 | $ | 346,645 | $ | 3,813,383 | |||
Capital expenditures | (94,528) | (17,814) | (4,144) | (116,486) | |||||||
Depreciation and amortization | 57,016 |
| 21,735 |
| 10,091 |
| 88,842 | ||||
For the Year Ended December 31, 2023 |
|
| | ||||||||
Net sales | $ | 2,655,546 | $ | 1,040,006 | $ | 496,084 | $ | 4,191,636 | |||
Inter-segment sales |
| 127,536 |
| 31,498 |
| 10,641 | 169,675 | ||||
2,783,082 | 1,071,504 | 506,725 | 4,361,311 | ||||||||
Reconciliation to Consolidated Net sales | |||||||||||
Elimination of inter-segment sales | (169,675) | ||||||||||
Net sales | $ | 4,191,636 | |||||||||
Cost of goods sold (3) | 1,739,850 | 776,982 | 377,748 | ||||||||
Other segment expenses (3) (4) | 514,821 | 148,304 | 54,833 | ||||||||
Addback: Special items charge (3) | (9,858) |
| 9,721 |
| — | ||||||
Segment Adjusted EBIT | $ | 538,269 | $ | 136,497 | $ | 74,144 | $ | 748,910 | |||
Other Segment Information |
| ||||||||||
Total assets | $ | 2,365,737 | $ | 1,046,369 | $ | 340,463 | $ | 3,752,569 | |||
Capital expenditures | (61,752) | (20,568) | (8,550) | (90,870) | |||||||
Depreciation and amortization | 55,821 |
| 22,023 |
| 9,611 |
| 87,455 | ||||
| (1) | 2025 special items within Other segment expenses primarily include Rationalization and asset impairment net charges of $9,838, $7,293 and $1,068 in Americas Welding, International Welding and The Harris Products Group, respectively, as discussed in Note 7. In addition, there was a pension settlement net charge of $647 in Americas Welding and $72 in International Welding. Special items within Cost of goods sold primarily include amortization of the step up in value of acquired inventories of $225 in Americas Welding and $3,739 in International Welding. |
| (2) | 2024 special items within Other segment expenses primarily include Rationalization and asset impairment net charges of $32,960 in International Welding, including the impact of the Company’s disposition of its Russian entity, $18,840 in Americas Welding and $3,955 in the Harris Products Group. In addition, there was a loss on asset disposal of $4,950 recorded to Other (expense) income in International Welding, a pension settlement net charge of $4,205 in Americas Welding and a pension settlement net gain of $413 in International Welding. Special items within Cost of goods sold primarily include amortization of the step up in value of acquired inventories of $4,776 and $250 in Americas Welding and International Welding, respectively. |
| (3) | 2023 special items within Other segment expenses primarily include Rationalization and asset impairment net charges of $468 in Americas Welding and net gains of $11,782 in International Welding. In addition, there was a gain on asset disposal of $1,646 and pension settlement net charges of $845 in International Welding. Special items within Cost of goods sold primarily include amortization of the step up in value of acquired inventories of $9,390 in Americas Welding and $2,862 in International Welding. |
| (4) | Other segment expenses primarily include: |
| a. | Selling, general and administrative expenses – including bonus and research and development expenses. |
| b. | Rationalization and asset impairment net charges – refer to Note 7 for further discussion. |
The following table presents reconciliations of segment information to the Company’s consolidated totals:
Year Ended December 31, | |||||||||||
2025 | 2024 | 2023 | |||||||||
Reconciliation of Segment Adjusted EBIT to Consolidated Income before income taxes | |||||||||||
Segment Adjusted EBIT | $ | 753,032 | $ | 724,633 | $ | 748,910 | |||||
Addback: Segment special items charge | (23,220) | (69,523) | (137) | ||||||||
Corporate special items charge (1) | (2,401) | (7,147) | — | ||||||||
Elimination of inter-segment profit | (2,923) | (2,410) | (1,286) | ||||||||
Unallocated corporate income (expense) | 2,523 | (8,618) | (16,250) | ||||||||
Interest income | 6,818 | 10,130 | 6,762 | ||||||||
Interest expense | (58,379) | (52,916) | (51,133) | ||||||||
Consolidated Income before income taxes | $ | 675,450 | $ | 594,149 | $ | 686,866 | |||||
(1) Corporate special items primarily include acquisition transaction costs. | |||||||||||
Reconciliation of Other Segment Information to Consolidated Information | |||||||||||
Capital expenditures | |||||||||||
Segment totals | $ | (126,974) | $ | (116,486) | $ | (90,870) | |||||
Adjustments | — | (117) | (117) | ||||||||
Consolidated totals | $ | (126,974) | $ | (116,603) | $ | (90,987) | |||||
Depreciation and amortization | |||||||||||
Segment totals | $ | 101,923 | $ | 88,842 | $ | 87,455 | |||||
Adjustments | (3,377) | (604) | (785) | ||||||||
Consolidated totals | $ | 98,546 | $ | 88,238 | $ | 86,670 | |||||
Reconciliation of Segment Assets to Consolidated Assets | December 31, 2025 | December 31, 2024 | |||||||||
Total segment assets | $ | 4,139,752 | $ | 3,813,383 | |||||||
Corporate assets | 41,033 | 20,745 | |||||||||
LIFO reserve not allocated to segments | (138,589) | (120,633) | |||||||||
Eliminations | (264,619) | (193,353) | |||||||||
Total consolidated assets | $ | 3,777,577 | $ | 3,520,142 | |||||||
Export sales (excluding inter-company sales) from the United States were $191,417 in 2025, $244,334 in 2024 and $238,704 in 2023. No individual customer comprised more than 10% of the Company’s total revenues in 2025, 2024 or 2023.
The geographic split of the Company’s Net sales, based on the location of the customer, and property, plant and equipment were as follows:
Year Ended December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
Net sales: |
| |
| |
| | |||
United States | $ | 2,632,122 | $ | 2,355,262 | $ | 2,398,560 | |||
Foreign countries |
| 1,600,881 |
| 1,653,408 |
| 1,793,076 | |||
Total | $ | 4,233,003 | $ | 4,008,670 | $ | 4,191,636 | |||
December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
Property, plant and equipment, net: |
| |
| |
| | |||
United States | $ | 403,122 | $ | 344,533 | $ | 293,172 | |||
Foreign countries |
| 299,640 |
| 274,648 |
| 282,144 | |||
Total | $ | 702,762 | $ | 619,181 | $ | 575,316 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.