Lincoln Electric Holdings (LECO) Q1 FY2023 earnings: revenue $1.0 billion, up 12.3% on the year

Lincoln Electric Holdings Inc. (LECO) reported revenue of $1.0 billion for Q1 FY2023, the quarter ended 31 March 2023, up 12.3% on the same quarter a year earlier. Net income was $122 million, down 3.3% on the year, and diluted earnings per share $2.09. The figures are the company's own, from the 10-Q it filed with the SEC on 27 April 2023.

Revenue$1.0 billionup 12.3%

Net income$122 milliondown 3.3%

Diluted EPS$2.09

QuarterQ1 FY2023ended 31 March 2023

The quarter, against the one before and a year earlier

Line	Q1 FY2023	Q4 FY2022	Q1 FY2022	Change on the year
Revenue	1,039	931	925	+12.3%
Cost of revenue	684	623	596	+14.8%
Gross profit	355	308	330	+7.8%
Gross margin	34.2%	33.1%	35.6%
Selling, general and administrative	190	164	167	+14.1%
Operating income	164	141	161	+2.0%
Operating margin	15.8%	15.2%	17.4%
Interest expense	14.1	9.3	6.6	+113.8%
Pre-tax income	155	136	160	-2.7%
Income tax	33.4	26.6	33.6	-0.6%
Effective tax rate	21.5%	19.6%	21.1%
Net income	122	109	126	-3.3%
Net margin	11.7%	11.7%	13.6%
Diluted EPS	$2.09	$1.87	$2.13	-1.9%

$ 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	Q1 FY2023	Q4 FY2022	Q1 FY2022	Change on the year
Operating cash flow	124	112	43.1	+187.6%
Capital expenditure	18.8	19.6	18.7	+0.6%
Free cash flow	105	92.2	24.4	+330.6%
Free cash flow margin	10.1%	9.9%	2.6%
Cash from investing	-16.0	-432	-40.1	n/a
Cash from financing	-111	371	-40.6	n/a
Depreciation and amortisation	21.3	19.1	19.9	+7.1%
Share-based compensation	11.6	4.3	11.1	+4.4%
Buybacks	32.2	25.1	105	-69.3%
Dividends paid	37.6	32.3	33.4	+12.7%
Dividend per share	$0.64	n/a	$0.56	+14.3%
Diluted shares, weighted	58m	58m	59m	-1.4%
Shares outstanding at period end	58m	58m	58m	-0.9%

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	Q1 FY2023	Q4 FY2022	Q1 FY2022	Change on the year
Shareholders' equity	1,125	1,034	863	+30.4%
Non-controlling interest	-0.1	-0.1	-0.1	n/a
Debt	1,160	1,204	866	+34.0%
Operating lease liabilities	36.6	35.9	40.4	-9.4%
Other liabilities	931	907	967	-3.7%
Total liabilities and equity	3,253	3,181	2,736	+18.9%
Fixed assets	553	545	512	+8.1%
Goodwill	679	665	437	+55.4%
Intangible assets	n/a	203	n/a	n/a
Cash and equivalents	199	197	154	+28.8%
Receivables	573	542	516	+11.1%
Inventory	665	665	600	+10.8%
Other assets	584	364	517	+12.9%
Total assets	3,253	3,181	2,736	+18.9%

Questions

What was Lincoln Electric Holdings' revenue in Q1 FY2023?

Lincoln Electric Holdings (LECO) reported revenue of $1.0 billion for Q1 FY2023, the quarter ended 31 March 2023, up 12.3% on the same quarter a year earlier.

How much did Lincoln Electric Holdings earn in Q1 FY2023?

Net income for Q1 FY2023 was $122 million, down 3.3% on the year, and diluted earnings per share $2.09.

When did Lincoln Electric Holdings report Q1 FY2023 results?

Lincoln Electric Holdings filed its 10-Q for the quarter ended 31 March 2023 with the SEC on 27 April 2023.

Quarterly results, the last 20 quarters

	Q3 FY2021	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	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	806	844	925	970	935	931	1,039	1,061	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	538	572	596	636	626	623	684	687	668	687	613	638	632	653	639	683	672	705	722	771
Gross profit	268	273	330	333	310	308	355	373	366	371	368	384	352	369	365	406	389	374	399	449
Gross margin	33%	32%	36%	34%	33%	33%	34%	35%	35%	35%	38%	38%	36%	36%	36%	37%	37%	35%	36%	37%
SG&A	149	151	167	167	159	164	190	193	187	189	199	208	186	187	197	211	207	184	211	225
Operating income	116	120	161	168	142	141	164	178	171	204	165	149	146	177	165	192	177	184	186	221
Operating margin	14%	14%	17%	17%	15%	15%	16%	17%	17%	19%	17%	15%	15%	17%	16%	18%	17%	17%	17%	18%
Interest expense	6.0	5.9	6.6	6.7	8.6	9.3	14.1	12.5	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	38.4	71.6	160	160	137	136	155	173	161	197	159	137	132	167	153	184	166	173	173	208
Tax rate	17%	-4%	21%	20%	21%	20%	22%	21%	20%	21%	22%	26%	24%	16%	23%	22%	26%	21%	21%	24%
Net income	31.8	74.4	126	128	109	109	122	137	129	157	123	102	101	140	118	143	123	136	136	159
Net margin	4%	9%	14%	13%	12%	12%	12%	13%	13%	15%	13%	10%	10%	14%	12%	13%	12%	13%	12%	13%
Diluted EPS	$0.53	$1.24	$2.13	$2.18	$1.87	$1.87	$2.09	$2.36	$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	110	110	43.1	98.2	130	112	124	199	223	122	133	171	199	95.8	186	144	237	95.0	102	254
Capital expenditure	18.7	16.1	18.7	15.9	17.7	19.6	18.8	21.8	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	91.2	93.8	24.4	82.3	113	92.2	105	177	197	97.1	107	148	163	64.3	159	118	205	52.0	63.0	222
Buybacks	50.2	60.7	105	25.1	26.5	25.1	32.2	53.1	45.4	68.2	110	50.4	50.4	52.5	107	127	52.7	51.8	56.7	76.1
Dividends paid	30.3	30.1	33.4	32.6	32.5	32.3	37.6	36.9	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	59m	59m	58m	58m	58m	58m	58m	57m	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	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 its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. 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.

10-Q for the period ended 31 March 2023, filed 27 April 2023: the filing.