LINCOLN ELECTRIC HOLDINGS INC (LECO)

Lincoln Electric Holdings, Inc. is the publicly held parent of The Lincoln Electric Company, which began operations in 1895, was incorporated in Ohio in 1906, and reorganized into a holding company structure in 1998. The company describes itself as the world leader in the design, development and manufacture of arc welding solutions, automated joining, assembly and cutting systems, and plasma and oxyfuel cutting equipment, with a leading global position in brazing and soldering alloys.

Its products include arc welding, brazing and soldering filler metals (consumables), arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators and education solutions. It also offers automated solutions for joining, cutting, material handling, module assembly and end of line testing. Its power sources and wire feeders range from basic units for light manufacturing and maintenance to sophisticated robotic systems for high-volume production welding. It makes three main types of consumables: coated stick electrodes, solid wire, and cored wire. The business is organized into three operating segments. Americas Welding covers North and South America. International Welding covers Europe, Africa, Asia and Australia. The Harris Products Group covers the global cutting, soldering and brazing businesses, specialty gas equipment, and the U.S. retail business.

Products are sold in domestic and international markets. In the Americas they are sold mainly through industrial distributors and retailers, and directly to users such as OEMs, manufacturers and integrators. Outside the Americas, a sales organization of employees and agents sells to distributors and product users. Major end-user markets are general fabrication, energy (oil and gas, power generation and process industries), heavy industries (heavy fabrication, shipbuilding, maintenance and repair), automotive and transportation, and construction and infrastructure. No single customer accounts for more than ten percent of net sales. Demand is cyclical, tied to economic cycles and capital spending in manufacturing and industrial sectors, and the industry is mature in developed markets such as North America and Western Europe.

The company has manufacturing facilities through wholly-owned subsidiaries in the United States, Australia, Austria, Brazil, Canada, China, Colombia, Denmark, France, Germany, India, Italy, Mexico, Poland, Portugal, Romania, South Korea, Spain, Turkey and the United Kingdom. Its main raw materials are steel, electronic components, engines, brass, copper, silver, aluminum alloys, robotic components and chemicals, generally available on the open market. Most products are standard commercial articles made for stock. The industry is highly competitive, with relatively few major broad-line competitors worldwide and many smaller regional ones. Competition is based on brand, quality, price, performance, warranty, delivery, service and technical support. The company cites its technical sales force, welding research staff and distributor relationships as advantages, and it holds patents mainly in arc welding. It employed approximately 12,000 people at December 31, 2024, and is ISO 9001 certified at 47 facilities.