Lincoln Electric (LECO) 4th Annual London Industrials Conference summary

Market conditions and outlook

• Noted broad-based softening across most end markets, with particular weakness in agricultural equipment, general industries, and automotive due to lower production rates and EV market uncertainty.

• Organic growth estimates revised to mid to high single-digit declines if current trends persist through September.

• Destocking by customers, especially in construction and ag machinery, is causing production to run below demand, with recovery not expected until late 2025.

• Uncertainty from U.S. elections and interest rate policy is dampening capital investment and demand.

• Energy-related products and regions like the Middle East and India are performing better than other segments.

Automation and technology strategy

• Automation portfolio spans from entry-level systems to full factory lines, with a focus on making automation accessible for high-mix, low-volume fabricators.

• Integration of technologies from acquisitions (e.g., Inrotech, RedViking) is enabling self-programming robots and reducing setup times.

• Automation market is larger and growing faster than the core welding market, with technology reducing barriers to adoption.

• Cobots are a small but rapidly growing segment, with proprietary software (Cooper App) simplifying programming and adoption.

• Ongoing efforts to expand automation geographically, with a disciplined approach to acquisitions and focus on specialty applications in Europe.

EV charging and new product development

• Launched a modular, scalable DC fast charger designed for NEVI standards, but market adoption is delayed by slow government funding and evolving customer requirements.

• Next-generation products with higher power and dynamic load sharing are in development, with material revenue expected no earlier than late 2025.

• Infrastructure and permitting delays are significant barriers to faster rollout of EV charging solutions.