林肯电气 2024年度报告

2024 ANNUAL REPORT & 2025 PROXY STATEMENT Sustainability Highlights 95.6% in 2024/DQG; OO$YRLGDQFH2025 Goal: 97% rate Operating to aHigher Standard toBuild a Better World —6WHYHQ%+HGOXQGChair, President and Chief Executive Officer DEAR LINCOLN ELECTRIC SHAREHOLDERS, new savings actions which will deliver over $60 million inannualized savings starting in 2024 and in 2025. These actionsresulted in a record adjusted operating income margin of 17.6%,our second highest adjusted earnings per share performance at$9.29 and cash flow generation of $599 million, and maintainedtop quartile return on invested capital of 21.8%. I am pleased to report another year of strong financialand operational performance while navigating achallenging demand environment. By maintainingoperational agility, diligently managing costs,launching savings actions, and investing in long-termgrowth, we delivered record profit margins, strongearnings, cash flow generation, and top quartilereturns. As we mark our 130th anniversary, we arebetter positioned to win than ever before. We invested $369 million in growth, from higher internalcapital investments to fund growth and productivity, aswell as $253 million to acquire three bolt-on acquisitions.These investments will support expanded growth acrossautomation, new industrial channels, and new AI-baseddigital solutions. We returned $426 million to shareholdersreflecting our 11% increase in the dividend payout rate and$264 million in share repurchases, or a 1.8% decline in ourfully diluted share count. FINANCIAL PERFORMANCE HIGHLIGHTS We achieved $4 billion in net sales in 2024 from acquisitionsand price actions, which were offset by broad volumecompression as our larger industrial customers loweredproduction levels and deferred capital spending. Despitepersistent industrial sector headwinds, we successfully offsetthe unfavorable volume impact with strong execution of ourstrategic commercial and operational initiatives and launched These achievements underscore our commitment to deliversustainable value to our shareholders and compound earningsthrough the cycle. 2024 Financial Highlights Adjusted earnings per share:$9.29 Top quartile Adjusted ROIC:21.8% Net Sales:$4.0 billion Cash flow generation:$599 million Returned to shareholders:$426 millionGLYLGHQGV VKDUHUHSXUFKDVHV Record Adjusted operating margin:+50bpsto17.6% THE YEAR AHEAD ACHIEVING OUR HIGHER STANDARD 2025 STRATEGY We are on track to achieve our Higher Standard 2025 strategytargets later this year. We are delivering accelerated salesgrowth within target range and I am confident we willattain our goal of increasing our average adjusted operatingincome margin by 200 basis points to an average 16% versusthe 13.7% average in the prior cycle. Our earnings per sharegrowth rate has compounded at the top end of our targetrange, and we have maintained top quartile ROIC and workingcapital performance. As we celebrate our 130th anniversary in 2025, we reflectupon the enduring legacy, resilience and ability to adapt andthrive for over a century. Our longevity is a testament to ourcommitment to excellence, innovation and delivering value toour shareholders. This year, we will maintain strong momentum in theorganization. Profitable growth remains our top priority, andwe will continue to position the Company to excel through thecycle with the most innovative portfolio and strong executionof our strategic operational and commercial initiatives. Wewill maintain a balanced capital allocation strategy and arefocused on delivering enhanced profit margin and earningsperformance in the year ahead. Innovation continues to differentiate our brand worldwide.We remain at the forefront of industry transformationwith our automation portfolio, which achieved $911 millionin net sales in 2024 and we have continued to expand itsoffering and technology capabilities. In addition, our productdevelopment teams accelerated new product launches in 2024with over 80 new launches. These innovations will supportour new product vitality index, which is a measure of returnon investment in R&D. In 2024, we achieved a strong 50%vitality index in our equipment sales – demonstrating that ourinnovations continue to deliver a compelling value propositionto customers. On behalf of the entire organization and our Board ofDirectors, thank you for your support and helping us achieveour purpose to Build a Better World. Operationally, our Higher Standard 2025 enterpriseinitiatives focused on streamlining core business processes,driving standardized operational best practices, maturingshared services, and improving safety and environmentalperformance. These efforts continue to reshape the businessto outperform in the next growth cycle. 6WHYHQ%+HGOXQG Chair, President and Chief Executive Officer 2024 Form 10-K UNITED STATESSECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ցANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECU