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Lincoln Electric Holdings
(NASDAQ:LECO)
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Rating:70Outperform
Price Target:
$275.00
▲(9.36% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by strong underlying financial performance (healthy margins and solid free cash flow) and a constructive earnings update (raised sales guidance and defined pricing actions to improve margins). Offsetting these positives are weak technical positioning (trading below key moving averages) and a relatively premium valuation, with additional near-term risks from volume softness and working-capital/inventory drag discussed on the call.
Positive Factors
Stable high margins
Consistently healthy EBIT and net margins reflect durable pricing power, efficient manufacturing and a profitable product mix (equipment plus consumables). Sustained margins support reinvestment, dividends and resilience through industry cycles over the next several months.
Negative Factors
Notable leverage
Debt roughly equals equity, leaving less financial flexibility in a downturn. Elevated leverage increases interest and refinancing risk, limits optionality for large acquisitions or buybacks, and can amplify earnings volatility if margins or cash flow weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable high margins
Consistently healthy EBIT and net margins reflect durable pricing power, efficient manufacturing and a profitable product mix (equipment plus consumables). Sustained margins support reinvestment, dividends and resilience through industry cycles over the next several months.
Read all positive factors
Lincoln Electric Holdings Key Performance Indicators (KPIs)
Any
Net Sales by Segment
Shows how much revenue each business unit generates, highlighting which lines—such as consumables, welding equipment, or automation—are driving growth or lagging. Shifts in segment sales reveal where demand is rising or falling, the company’s diversification across end markets, and potential concentration or cyclical risks tied to construction, automotive, and industrial activity.
Shows how much revenue each business unit generates, highlighting which lines—such as consumables, welding equipment, or automation—are driving growth or lagging. Shifts in segment sales reveal where demand is rising or falling, the company’s diversification across end markets, and potential concentration or cyclical risks tied to construction, automotive, and industrial activity.
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The Fly
The FlyLincoln Electric Holdings (LECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.24B
Dividend Yield1.19%
Average Volume (3M)339.73K
Price to Earnings (P/E)25.9
Beta (1Y)1.08
Revenue Growth9.14%
EPS Growth12.52%
CountryUS
Employees12,000
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)10.10
Shares Outstanding54,505,756
10 Day Avg. Volume279,120
30 Day Avg. Volume339,733
Financial Highlights & Ratios
PEG Ratio1.81
Price to Book (P/B)9.03
Price to Sales (P/S)3.14
P/FCF Ratio24.86
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$303.33Price Target Upside20.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)11.17
Revenue Forecast (FY)$4.69B
Lincoln Electric Holdings Business Overview & Revenue Model
Company Description
Lincoln Electric Holdings, Inc., an enterprise established in Cleveland, Ohio, in 1895, operates globally, focusing on the innovation, production, and sale of equipment and materials for welding, cutting, and brazing applications. The company is o...
How the Company Makes Money
Lincoln Electric primarily makes money by selling products and services used in welding, cutting, and automated fabrication. Key revenue streams include: (1) Welding equipment: revenue from the sale of welding power sources, wire feeders, torches,...
Lincoln Electric Holdings Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operating quarter with record sales, double-digit EPS growth, strong performance from Harris, improving order trends in the Americas and a top‑quartile ROIC. However, notable headwinds include consolidated volume declines (especially in international automation), near-term price/cost timing gaps that compressed gross margin, a modest cash flow impact from higher inventories and regional uncertainty from the Middle East. Management has taken proactive pricing actions, is raising its sales guidance range (driven by price), and is cautiously optimistic about volume recovery in the back half of the year.Positive Updates
Record Quarterly Sales and Strong EPS Growth
Net sales increased ~12% to $1.121 billion (driven by ~10% higher price, ~2% FX translation and ~1.6% Alloy Steel acquisition benefit; offset by ~2.6% lower volumes). Reported diluted EPS rose 18% to $2.47 and adjusted EPS increased 16% to $2.50.
Negative Updates
Volume Declines and Automation Headwinds
Consolidated volumes declined ~2.6% in Q1. International Welding volumes were down ~10% (primarily due to automation project timing), and the automation portfolio had $210 million in sales versus $215 million prior year. Automation had margin pressure and was a dilutive factor in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Sales and Strong EPS Growth
Net sales increased ~12% to $1.121 billion (driven by ~10% higher price, ~2% FX translation and ~1.6% Alloy Steel acquisition benefit; offset by ~2.6% lower volumes). Reported diluted EPS rose 18% to $2.47 and adjusted EPS increased 16% to $2.50.
Read all positive updates
Company Guidance
Lincoln updated 2026 guidance, raising expected net sales growth to the high single-digit percent range (from mid-single-digit) with an organic mix they expect to be roughly 3/4 price (mid-single-digit) and 1/4 volume, while retaining a low single-digit volume growth assumption; they estimate a $8–$10 million sales headwind per quarter from the Middle East conflict, expect a ~70 bps M&A benefit from the Alloy Steel acquisition, and have implemented May pricing actions that should drive price/cost neutrality by Q3 (Americas Welding to see ~150 bps/quarter run-rate benefit beginning in Q3). Management reiterated targets for operating income margin improvement and mid-20% incremental margins (Q1 adjusted operating margin was 16.9% with a 17% incremental margin), and provided segment outlooks including Americas Welding mid-18% to mid-19% EBIT margins for the year, International Welding around 11% near-term, and Harris at ~19–20% (Q1 Harris margin 21.2%); they also maintained other assumptions on interest, tax, CapEx and cash conversion (100% target), while forecasting SG&A run-rate ≈$250M/quarter and corporate expense of ~$1–2M/quarter. For context, Q1 results included sales of $1.121B, gross profit $399M (35.6%), adjusted operating income $189M, adjusted EPS $2.50, cash from operations $102M, CapEx $39M, ROIC 21.5%, inventories that raised operating working capital to 18.6% of sales, and $101M returned to shareholders.Lincoln Electric Holdings Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.48B | 4.23B | 4.01B | 4.19B | 3.76B | 3.23B |
| Gross Profit | 1.61B | 1.54B | 1.48B | 1.48B | 1.28B | 1.07B |
| EBITDA | 887.34M | 835.13M | 800.52M | 789.48M | 708.11M | 675.23M |
| Net Income | 553.55M | 520.53M | 466.11M | 545.25M | 472.22M | 276.58M |
Balance Sheet | ||||||
| Total Assets | 3.81B | 3.78B | 3.52B | 3.38B | 3.18B | 2.59B |
| Cash, Cash Equivalents and Short-Term Investments | 242.44M | 308.79M | 377.26M | 393.79M | 197.15M | 192.96M |
| Total Debt | 1.15B | 1.29B | 1.32B | 1.16B | 1.25B | 819.00M |
| Total Liabilities | 2.26B | 2.31B | 2.19B | 2.07B | 2.15B | 1.73B |
| Stockholders Equity | 1.55B | 1.47B | 1.33B | 1.31B | 1.03B | 864.10M |
Cash Flow | ||||||
| Free Cash Flow | 516.86M | 534.20M | 482.37M | 576.55M | 311.50M | 302.53M |
| Operating Cash Flow | 662.04M | 661.17M | 598.98M | 667.54M | 383.39M | 365.06M |
| Investing Cash Flow | -247.06M | -257.33M | -361.23M | -74.73M | -504.69M | -205.36M |
| Financing Cash Flow | -451.65M | -461.89M | -244.64M | -412.39M | 133.72M | -221.94M |
Lincoln Electric Holdings Technical Analysis
Positive
251.47
Price Trends
259.99
Positive
258.69
Positive
255.11
Positive
Market Momentum
3.26
Negative
63.89
Neutral
96.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LECO, the sentiment is Positive. The current price of 251.47 is below the 20-day moving average (MA) of 256.51, below the 50-day MA of 259.99, and below the 200-day MA of 255.11, indicating a bullish trend. The MACD of 3.26 indicates Negative momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 96.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LECO.
Lincoln Electric Holdings Risk Analysis
Lincoln Electric Holdings disclosed 19 risk factors in its most recent earnings report. Lincoln Electric Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lincoln Electric Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.23B | 20.60 | 17.41% | 2.34% | 4.02% | 4.39% | |
72 Outperform | $9.56B | 31.12 | 8.29% | 1.00% | 3.31% | -5.18% | |
70 Outperform | $14.24B | 25.87 | 37.21% | 1.24% | 9.14% | 12.52% | |
70 Outperform | $17.44B | 54.21 | 9.66% | ― | 17.31% | 27.05% | |
68 Neutral | $14.28B | 23.18 | 6.90% | 3.64% | 0.57% | 29.85% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $2.59B | 18.98 | 10.46% | 2.27% | 7.16% | 28.79% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.