Lincoln Electric Holdings, Inc. LECO reported fourth-quarter 2024 adjusted earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.00. This marked a 4.9% year-over-year increase.

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Including one-time items, the bottom line was $2.47 per share compared with $2.70 in the year-ago quarter.

Total revenues fell 3.4% year over year to $1.02 billion. The downside in revenues can be attributed to a 7.5% fall in organic sales and a 1.1% unfavorable foreign exchange. This was partially offset by a 5.2% benefit from acquisitions. The top line surpassed the Zacks Consensus Estimate of $996 million.

LECO’s Q4 Costs & Margins

The cost of goods sold fell 5% year over year to $653 million. The gross profit declined 0.6% to $369 million. The gross margin was 36.1% compared with the year-ago quarter’s 35.1%.

Selling, general and administrative expenses decreased 1% year over year to $187 million. Adjusted operating profit increased 1.9% year over year to $186 million in the quarter. LECO delivered an adjusted operating margin of 18.2% for the quarter. The company had reported an operating margin of 17.2% in the year-ago quarter.

Lincoln Electric’s Q4 Segment Performances

Americas Welding: The segment’s total sales increased 0.2% to $692 million from $690 million in the year-earlier quarter. We expected the segment’s net sales to be $667 million in the quarter. Adjusted operating income totaled $132 million compared with $129.5 million in the year-ago quarter. Our prediction for the segment’s adjusted operating income was $105 million. 

International Welding: This segment’s revenues fell 16.3% year over year to $254 million in the reported quarter. We expected the segment’s net sales to be $269 million in the quarter. The segment reported an adjusted operating profit of $33 million compared with the year-ago quarter’s $43 million. We predicted an adjusted operating profit of $31 million. 

The Harris Products Group: The segment’s fourth-quarter total sales amounted to around $127 million, reflecting a year-over-year rise of 11.3%. We expected the segment’s net sales to be $107 million in the quarter. Adjusted operating profit was $22 million compared with the year-ago quarter’s $15 million. Our prediction for the segment’s adjusted operating income was $20 million.

LECO’s Cash Flow & Balance Sheet

Lincoln Electric had cash and cash equivalents of around $377 million at the end of 2024 compared with $394 million at 2023 end. The company generated a record $599 million in cash flow from operations in 2024 compared with $668 million in 2023. LECO returned $426 million to shareholders via dividends and share repurchases through the year.

The company’s debt to invested capital was 48.7% at the end of 2024 compared with 45.8% at the end of 2023.

Lincoln Electric’s 2024 Results

The company reported adjusted earnings of $9.29 per share in 2024, down 1.3% from $9.41 in 2023. The bottom-line figure surpassed the Zacks Consensus Estimate of earnings of $8.72 per share. Including one-time items, earnings were $8.15 per share for the year compared with $9.37 in 2023.

Total revenues fell 4.4% year over year to $4.01 billion. The top line beat the Zacks Consensus Estimate of $3.98 billion. The company witnessed a 6.5% decrease in organic sales. Acquisitions contributed 2.5% to sales improvement.

LECO Stock’s Price Performance

Lincoln Electric’s shares have lost 6.4% in the past year against the industry’s 1.6% growth.

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Lincoln’s Zacks Rank

LECO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Manufacturing Stocks

Caterpillar Inc. CAT reported adjusted earnings per share of $5.14 for the fourth quarter of 2024, which beat the Zacks Consensus Estimate of $4.97 by a margin of 3%. However, the bottom line was down 2% year over year due to volume declines across its segments. The drop in sales volume was due to the impacts of changes in dealer inventories and lower sales of CAT equipment to end users.

Caterpillar reported fourth-quarter revenues of $16.2 billion, which missed the Zacks Consensus Estimate of $16.64 billion by a margin of 2.6%. The top line declined 5% year over year due to an overall decline in volumes in its segments and unfavorable price realization.

Terex Corporation TEX reported adjusted earnings per share of 77 cents, which beat the Zacks Consensus Estimate of 76 cents. The bottom line plunged 45% from the prior-year quarter due to lower volumes.

Revenues rose 1.5% year over year to $1.24 billion, which surpassed the Zacks Consensus Estimate of $1.23 billion. In October 2024, Terex completed the acquisition of Environmental Solutions Group (“ESG”), adding a market leader in waste and recycling to its portfolio. It will also enhance the company's financial profile, including revenues, free cash flow, EBITDA margin and earnings per share.

Manufacturing Stock Awaiting Results

Hyster-Yale, Inc. HY, expected to release fourth-quarter 2024 results later this month, has a trailing four-quarter average earnings surprise of 10.3%. The Zacks Consensus Estimate for HY’s earnings is pegged at $1.38 per share, implying a year-over-year decline of 3.5%.

The consensus estimate for the company’s top line is pegged at $1.02 billion, indicating a 0.5% dip from the prior-year figure.

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