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

Market conditions and outlook

• Broad-based softening observed across most end markets, with particular weakness in agriculture, general industry, and automotive due to lower production rates and EV-related pauses in investment.

• Organic growth estimates for the year have shifted to mid to high single-digit declines if current trends persist.

• 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, with expectations that clarity post-election could improve spending.

• Some regions, such as the Middle East and India, are performing better, but overall demand remains weak.

Automation and technology strategy

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

• Integration of acquired technologies (e.g., Inrotech, RedViking) is enabling development of self-programming welding robots, addressing skilled labor shortages and reshoring trends.

• The automation market is larger and growing faster than the core welding market, with flexible solutions expanding the addressable market.

• Cobots remain a small but rapidly growing segment, with proprietary software (Cooper App) simplifying adoption, though current economic conditions are slowing uptake.

• Ongoing efforts to expand automation geographically, with disciplined acquisition strategy and focus on specialty applications in Europe.

EV charging and new product development

• Launched a modular 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 growth expected no earlier than late 2025.

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