Lincoln Electric Holdings (LECO) Q4 FY2023 earnings: revenue $1.1 billion, up 13.7% on the year

Lincoln Electric Holdings Inc. (LECO) reported revenue of $1.1 billion for Q4 FY2023, the quarter ended 31 December 2023, up 13.7% on the same quarter a year earlier. Net income was $157 million, up 43.5% on the year, and diluted earnings per share $2.70. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2024.

Revenue$1.1 billionup 13.7%

Net income$157 millionup 43.5%

Diluted EPS$2.70

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	1,059	1,033	n/a	n/a
Cost of revenue	687	668	n/a	n/a
Gross profit	371	366	n/a	n/a
Gross margin	35.1%	35.4%	n/a
Selling, general and administrative	189	187	n/a	n/a
Operating income	204	171	n/a	n/a
Operating margin	19.3%	16.6%	n/a
Interest expense	11.9	12.7	n/a	n/a
Pre-tax income	197	161	n/a	n/a
Income tax	40.4	32.1	n/a	n/a
Effective tax rate	20.5%	19.9%	n/a
Net income	157	129	n/a	n/a
Net margin	14.8%	12.5%	n/a
Diluted EPS	$2.70	$2.22	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	122	223	n/a	n/a
Capital expenditure	24.5	25.9	n/a	n/a
Free cash flow	97.1	197	n/a	n/a
Free cash flow margin	9.2%	19.1%	n/a
Cash from investing	26.4	-24.8	n/a	n/a
Cash from financing	-101	-84.5	n/a	n/a
Depreciation and amortisation	22.0	21.5	n/a	n/a
Share-based compensation	4.1	5.5	n/a	n/a
Buybacks	68.2	45.4	n/a	n/a
Dividends paid	36.7	36.8	n/a	n/a
Dividend per share	n/a	$0.64	n/a	n/a
Diluted shares, weighted	58m	58m	n/a	n/a
Shares outstanding at period end	57m	57m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Shareholders' equity	1,309	1,226	n/a	n/a
Debt	1,105	1,103	n/a	n/a
Operating lease liabilities	41.6	41.8	n/a	n/a
Other liabilities	922	956	n/a	n/a
Total liabilities and equity	3,377	3,326	n/a	n/a
Fixed assets	575	566	n/a	n/a
Goodwill	694	687	n/a	n/a
Intangible assets	187	n/a	n/a	n/a
Cash and equivalents	394	343	n/a	n/a
Receivables	539	538	n/a	n/a
Inventory	563	612	n/a	n/a
Other assets	425	581	n/a	n/a
Total assets	3,377	3,326	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,033	1,059	981	1,022	984	1,022	1,004	1,089	1,061	1,079	1,121	1,220
Cost of revenue	668	687	613	638	632	653	639	683	672	705	722	771
Gross profit	366	371	368	384	352	369	365	406	389	374	399	449
Gross margin	35%	35%	38%	38%	36%	36%	36%	37%	37%	35%	36%	37%
SG&A	187	189	199	208	186	187	197	211	207	184	211	225
Operating income	171	204	165	149	146	177	165	192	177	184	186	221
Operating margin	17%	19%	17%	15%	15%	17%	16%	18%	17%	17%	17%	18%
Interest expense	12.7	11.9	12.0	12.6	14.1	14.2	14.4	14.3	15.1	14.6	14.8	14.3
Pre-tax income	161	197	159	137	132	167	153	184	166	173	173	208
Tax rate	20%	21%	22%	26%	24%	16%	23%	22%	26%	21%	21%	24%
Net income	129	157	123	102	101	140	118	143	123	136	136	159
Net margin	13%	15%	13%	10%	10%	14%	12%	13%	12%	13%	12%	13%
Diluted EPS	$2.22	$2.70	$2.14	$1.77	$1.77	$2.47	$2.10	$2.56	$2.21	$2.45	$2.47	$2.88
Operating cash flow	223	122	133	171	199	95.8	186	144	237	95.0	102	254
Capital expenditure	25.9	24.5	26.3	23.1	35.7	31.5	26.9	25.4	31.6	42.9	39.2	31.4
Free cash flow	197	97.1	107	148	163	64.3	159	118	205	52.0	63.0	222
Buybacks	45.4	68.2	110	50.4	50.4	52.5	107	127	52.7	51.8	56.7	76.1
Dividends paid	36.8	36.7	41.3	40.4	40.3	40.2	43.0	41.9	41.6	41.8	44.1	43.4
Shares outstanding	57m	57m	57m	57m	56m	56m	56m	55m	55m	55m	55m	55m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 27 February 2024, accession 0000059527-24-000008: the filing on EDGAR. All of Lincoln Electric Holdings Inc.'s filings: EDGAR company page.

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