What Lincoln Electric Holdings, Inc. told the SEC could break it.

Lincoln Electric's welding/cutting and automation products depend on principal raw materials including steel, electronic components, engines, brass, copper, silver, aluminum alloys, robotic components and chemicals — generally available on the open market but exposed to price volatility.

“The principal raw materials essential to the Company's business are steel, electronic components, engines, brass, copper, silver, aluminum alloys, robotic components and various chemicals, all of which are normally available for purchase in the open market.”

Lincoln Electric's results are sensitive to general economic conditions — interest rates, inflation and FX — given its exposure to cyclical end markets (fabrication, energy, heavy industry, automotive, construction); a downturn or loss of a large customer could adversely affect results.

“However, the loss of a large customer could have an adverse effect on the Company's business. The Company's operating results are sensitive to changes in general economic conditions, including an increase in interest rates, inflationary pressures and fluctuations in foreign currency rates.”

2025 US tariffs on imports — and retaliatory tariffs by foreign governments — affect Lincoln Electric's costs and cross-border operations across its 20-country manufacturing footprint; its mitigating actions may not be successful and further trade actions are unpredictable.

“The U.S. presidential administration has imposed tariffs on foreign imports into the United States and, in response, many foreign countries have implemented or increased tariffs on imports into their countries. We have taken actions to address the impact of these initial trade policies and will continue to monitor evolving trade negotiations to determine if additional measures are warranted, although these actions may not be successful.”