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SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2025
SEGMENT INFORMATION |
SEGMENT INFORMATION | NOTE 5 — SEGMENT INFORMATION The Company’s primary business is the design, development and manufacture of arc welding products, automated joining, assembly and cutting systems, plasma and oxy-fuel cutting equipment. The Company also has a leading global position in brazing and soldering alloys. The Company’s products include arc welding, brazing and soldering filler metals (consumables), arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, and education solutions; as well as a comprehensive portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing. The Company has aligned its organizational and leadership structure into three operating segments to support growth strategies and enhance the utilization of the Company’s worldwide resources and global sourcing initiatives. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global cutting, soldering and brazing businesses, specialty gas equipment, as well as its retail business in the United States. Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the adjusted earnings before interest and income taxes ("Adjusted EBIT") profit measure. EBIT is defined as Operating income plus Other income. Segment EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM uses segment Adjusted EBIT to allocate resources for each segment predominantly in establishing the Company’s long-term strategy and in developing the annual budget. The CODM considers actual performance using Adjusted EBIT when making decisions about allocating capital and resources to the segments. The following table presents Adjusted EBIT by segment: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | The Harris | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Americas | ​ | International | ​ | Products | ​ | Corporate / | ​ | ​ | ​
​ |  | Welding |  | Welding |  | Group |  | Eliminations |  | Consolidated
Three Months Ended March 31, 2025 |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Net sales | ​ | $ | 653,107 | ​ | $ | 219,061 | ​ | $ | 132,220 | ​ | $ | — | ​ | $ | 1,004,388
Inter-segment sales | ​ |  | 30,372 | ​ | ​ | 6,832 | ​ | ​ | 3,984 | ​ | ​ | (41,188) | ​ | ​ | —
Total | ​ | ​ | 683,479 | ​ | ​ | 225,893 | ​ | ​ | 136,204 | ​ | ​ | (41,188) | ​ | ​ | 1,004,388
Cost of goods sold | ​ | ​ | 417,700 | ​ | ​ | 163,442 | ​ | ​ | 97,974 | ​ | ​ | (40,176) | ​ | ​ | 638,940
Gross profit | ​ | ​ | 265,779 | ​ | ​ | 62,451 | ​ | ​ | 38,230 | ​ | ​ | (1,012) | ​ | ​ | 365,448
Other segment expenses (3) | ​ | ​ | 143,716 | ​ | ​ | 40,851 | ​ | ​ | 14,079 | ​ | ​ | 1,440 | ​ | ​ | 200,086
EBIT | ​ | ​ | 122,063 | ​ | ​ | 21,600 | ​ | ​ | 24,151 | ​ | ​ | (2,452) | ​ | ​ | 165,362
Special items charge (1) | ​ | ​ | 2,135 | ​ | ​ | 1,412 | ​ | ​ | 178 | ​ | ​ | 802 | ​ | ​ | 4,527
Adjusted EBIT | ​ | $ | 124,198 | ​ | $ | 23,012 | ​ | $ | 24,329 | ​ | $ | (1,650) | ​ | $ | 169,889
Special items charge (1) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,527)
Interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,255
Interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (14,382)
Income before income taxes | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | $ | 153,235
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total assets | ​ | $ | 2,445,066 | ​ | $ | 1,093,775 | ​ | $ | 388,804 | ​ | $ | (302,571) | ​ | $ | 3,625,074
Capital expenditures | ​ | ​ | 21,766 | ​ | ​ | 3,608 | ​ | ​ | 1,575 | ​ | ​ | — | ​ | ​ | 26,949
Depreciation and amortization | ​ | ​ | 16,114 | ​ | ​ | 5,378 | ​ | ​ | 2,663 | ​ | ​ | (371) | ​ | ​ | 23,784
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Three Months Ended March 31, 2024 | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Net sales | ​ | $ | 624,099 | ​ | $ | 235,761 | ​ | $ | 121,337 | ​ | $ | — | ​ | $ | 981,197
Inter-segment sales | ​ |  | 29,978 | ​ |  | 8,408 | ​ |  | 3,093 | ​ |  | (41,479) | ​ | ​ | —
Total | ​ | ​ | 654,077 | ​ | ​ | 244,169 | ​ | ​ | 124,430 | ​ | ​ | (41,479) | ​ | ​ | 981,197
Cost of goods sold | ​ | ​ | 388,605 | ​ | ​ | 175,047 | ​ | ​ | 90,730 | ​ | ​ | (41,584) | ​ | ​ | 612,798
Gross profit | ​ | ​ | 265,472 | ​ | ​ | 69,122 | ​ | ​ | 33,700 | ​ | ​ | 105 | ​ | ​ | 368,399
Other segment expenses (3) | ​ | ​ | 129,372 | ​ | ​ | 44,415 | ​ | ​ | 15,358 | ​ | ​ | 11,945 | ​ | ​ | 201,090
EBIT | ​ | $ | 136,100 | ​ | $ | 24,707 | ​ | $ | 18,342 | ​ | $ | (11,840) | ​ | $ | 167,309
Special items charge (2) | ​ |  | — | ​ |  | 3,069 | ​ |  | 1,536 | ​ |  | 1,762 | ​ | ​ | 6,367
Adjusted EBIT | ​ | $ | 136,100 | ​ | $ | 27,776 | ​ | $ | 19,878 | ​ | $ | (10,078) | ​ | $ | 173,676
Special items charge (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,367)
Interest income | ​ | ​ | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  | 3,221
Interest expense | ​ | ​ | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  | (12,000)
Income before income taxes | ​ | ​ | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ | $ | 158,530
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total assets | ​ | $ | 2,354,812 | ​ | $ | 987,321 | ​ | $ | 353,485 | ​ | $ | (315,901) | ​ | $ | 3,379,717
Capital expenditures | ​ | ​ | 21,853 | ​ | ​ | 3,423 | ​ | ​ | 980 | ​ | ​ | — | ​ | ​ | 26,256
Depreciation and amortization | ​ | ​ | 14,086 | ​ | ​ | 5,313 | ​ | ​ | 2,426 | ​ | ​ | (239) | ​ | ​ | 21,586
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​
| (1) | In the three months ended March 31, 2025, special items primarily include Rationalization and asset impairment net charges of $2,135, $1,552 and $178 in Americas Welding, International Welding and The Harris Products Group, respectively, as discussed in Note 6 and Acquisition transaction costs of $802 in Corporate/Eliminations.
| (2) | In the three months ended March 31, 2024, special items include Rationalization and asset impairment net charges of $3,069 and $1,536 in International Welding and The Harris Products Group, respectively, as discussed in Note 6 and Acquisition transaction costs of $1,762 in Corporate/Eliminations.
| (3) | Other segment expenses primarily include:
| a. | Selling, general & administrative expenses – including bonus and research and development expenses.
| b. | Rationalization and asset impairment net charges – refer to Note 6 for further discussion.

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