Christian Zilo's questions to Lincoln Electric Holdings Inc (LECO) leadership • Q1 2025
Question
Christian Zilo, sitting in for Steve Barger, asked if visibility in the automotive automation market has changed since Q4 and whether recent tariff news could impact the outlook. He also inquired if the current environment mirrors the 2018-2019 period of tariff-driven price hikes followed by volume weakness, and what the implications are for Americas margins.
Answer
CEO Steven Hedlund stated it was too early to assess the impact of very recent tariff policy changes. CFO Gabriel Bruno added that while long-lead-time auto projects provided some strength in Q1, they are closely monitoring the industry's response to tariffs. Regarding the 2018-2019 comparison, Bruno expressed confidence in the long-term improvement of Americas margins, which will be supported by an eventual recovery in automation volumes and contributions from acquisitions.