In This Article:
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Net Sales: $4 billion for the full year 2024.
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Automation Portfolio Sales: $911 million, on track for $1 billion target in 2025.
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Adjusted Operating Income Margin: 17.6% for the full year.
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Adjusted Earnings Per Share: $9.29 for the full year.
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Cash Conversion: Over 90% cash conversion ratio.
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Shareholder Returns: 23% increase, including $264 million in share repurchases.
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Fourth Quarter Sales: $1.022 billion, a 3% decline.
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Gross Profit Margin: 36.1% in the fourth quarter, a 100 basis point increase.
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Adjusted Operating Income Margin (Q4): 18.2%, a record for the fourth quarter.
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Fourth Quarter Adjusted Diluted EPS: $2.57, a record for the quarter.
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Cost Savings Actions: Increased annualized savings rate to $60 million to $75 million.
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Americas Welding Adjusted EBIT Margin: 19.1% in the fourth quarter.
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International Welding Adjusted EBIT Margin: 12.8% in the fourth quarter.
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Harris Products Group Sales Growth: 11% increase in the fourth quarter.
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Harris Products Group Adjusted EBIT Margin: 17% in the fourth quarter.
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Full Year Cash Flow from Operations: $599 million.
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Return on Invested Capital: 21.8%.
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2025 Sales Growth Assumption: Low single-digit growth expected.
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2025 CapEx Budget: $100 million to $120 million.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lincoln Electric Holdings Inc (NASDAQ:LECO) reported strong full-year results across key financial metrics despite challenging demand trends.
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The company achieved $4 billion in net sales, with a significant contribution from its automation portfolio, which is on track to hit a $1 billion sales target by 2025.
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Record profitability was achieved with a 17.6% adjusted operating income margin, reflecting strong execution of strategic initiatives and diligent cost management.
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The company maintained strong cash flow generation with over 90% cash conversion, contributing to a 23% increase in returns to shareholders through dividends and share repurchases.
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Lincoln Electric Holdings Inc (NASDAQ:LECO) successfully added three acquisitions, expanding its engineering and application expertise and differentiating its technology platforms.
Negative Points
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Fourth quarter sales declined by 3% to $1.022 billion, primarily due to an 8.5% decrease in volumes.
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The company faced a 6.5% decline in organic sales, reflecting manufacturing weakness and deferred capital spending across most end markets and regions.
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International Welding sales declined approximately 17% due to industrial weakness in portions of Europe, Turkey, and Asia Pacific.
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The company anticipates a low single-digit percent decline in volumes for the full year 2025, with challenges expected in the first half.
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Potential impacts from pending tariffs and trade policies present uncertainties that could affect the company's operations and financial performance.