Lincoln Electric Reports 6.6% Revenue Growth in Q2 2025, Net Income Up 41%

Lincoln Electric Holdings, Inc. reported a notable increase in financial performance for the second quarter of 2025, with net sales reaching $1,088.7 million, a 6.6% increase from $1,021.7 million in the same period of 2024. For the first half of 2025, net sales totaled $2,093.1 million, up 4.5% from $2,002.9 million year-over-year. The company's gross profit also improved, amounting to $405.5 million for the quarter and $771.0 million for the six months, reflecting a gross margin of 37.3% and 36.8%, respectively. Net income for the second quarter was $143.4 million, a 41.0% increase compared to $101.7 million in the prior year, while diluted earnings per share rose to $2.56 from $1.77.

The company experienced significant changes in its cost structure, with cost of goods sold increasing to $683.1 million for the quarter, up from $637.9 million in the previous year. This increase was attributed to higher input costs, which also impacted gross profit margins. Selling, general, and administrative expenses slightly increased to $210.9 million, reflecting higher employee costs and expenses related to acquisitions. Notably, rationalization and asset impairment charges decreased significantly to $2.5 million from $26.5 million in the prior year, indicating improved operational efficiency.

Strategically, Lincoln Electric made several acquisitions, including a 35% stake in Alloy Steel Australia for approximately $45 million, with plans to acquire the remaining 65% for an additional $90 million. The company also completed the acquisition of Vanair Manufacturing and Inrotech A/S in 2024, enhancing its portfolio in mobile power solutions and automated welding systems. These acquisitions are expected to bolster the company's capabilities in the mining and manufacturing sectors.

Operationally, Lincoln Electric reported an increase in customer engagement, with total assets rising to $3.73 billion as of June 30, 2025, compared to $3.52 billion at the end of 2024. The company’s employee headcount also increased, reflecting its growth strategy and expansion efforts. The company continues to focus on enhancing its market share in the welding and cutting products sector, with a strong emphasis on automation and digital solutions.

Looking ahead, Lincoln Electric anticipates continued growth driven by organic sales and strategic acquisitions. The company expects to maintain its focus on operational efficiency and cost management while navigating potential challenges from market conditions and trade policies. The effective tax rate for the first half of 2025 was reported at 22.2%, slightly lower than the previous year's rate, which may provide additional financial flexibility. Overall, Lincoln Electric remains optimistic about its growth trajectory and operational improvements in the coming quarters.