olivLaw · US equity research
Lincoln Electric Holdings, Inc. LECO
Metalworkg Machinery & Equipment · SIC 3540 · Vertical: Industrial machinery and computer equipment (SIC 35xx)
Lincoln Electric designs and sells welding equipment, consumables, cutting systems and industrial automation solutions, and as it says itself is the world's largest manufacturer of arc welding solutions. In the second quarter of 2026 net sales rose 12.0% to a record 1.22 billion USD, with organic growth of 10.1%, and these results show how industrial demand and higher pricing can support performance amid economic and trade uncertainty.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 30 Oct 2026, Lincoln Electric Holdings, Inc. (LECO) stock was 276.92 USD (−2.62% on the day), with market capitalisation 15.0 bn USD, P/E 26.5 on diluted EPS of 10.43 USD over the last 12 months, dividend yield 1.14%, beta 1.15, 52-week range 220.64–298.88 USD. Latest reported quarter (Q3 2026): revenue of 1.2 bn USD (+15.1% YoY), net income of 144.3 m USD (+17.7% YoY), diluted EPS 2.63 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 57.8
- strong (55–70)
- Bollinger (20, 2)
- 247.36 – 284.06
- in the upper half of the band · %B 0.81 · band width 13.8%
- SMA 50 / 200
- 267.96 / 266.03
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 2.70 / 0.11
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +4.7% | −0.9% | +5.6 pp | — |
| 3 months | +6.0% | +1.2% | +4.8 pp | — |
| 6 months | +4.0% | +4.8% | −0.8 pp | — |
| Year to date | +15.6% | +10.7% | +4.8 pp | — |
| 1 year | +17.3% | +11.1% | +6.2 pp | +27.5% |
| 3 years | +58.4% | +80.7% | −22.3 pp | +101.8% |
| 5 years | +94.5% | +64.6% | +29.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.0 bn | 1.0 bn | 1.1 bn | 1.1 bn | 1.1 bn | 1.1 bn | 1.2 bn | 1.2 bn |
| Cost of revenue | 653.4 m | 638.9 m | 683.1 m | 671.9 m | 704.8 m | 722.3 m | 770.7 m | 796.3 m |
| Gross profit | 368.6 m | 365.4 m | 405.5 m | 389.3 m | 373.9 m | 399.1 m | 449.0 m | 425.0 m |
| SG&A | 187.1 m | 196.7 m | 210.9 m | 206.8 m | 183.6 m | 210.8 m | 224.9 m | 205.8 m |
| Operating income | 177.0 m | 164.9 m | 192.1 m | 176.7 m | 184.3 m | 186.2 m | 220.6 m | 211.4 m |
| Depreciation & amortisation | 23.1 m | 23.8 m | 24.5 m | 24.7 m | 25.6 m | 26.0 m | 26.0 m | 26.4 m |
| Interest expense | 14.2 m | 14.4 m | 14.3 m | 15.1 m | 14.6 m | 14.8 m | 14.3 m | 12.6 m |
| Pre-tax income | 167.1 m | 153.2 m | 183.6 m | 166.0 m | 172.7 m | 173.4 m | 207.9 m | 200.0 m |
| Income tax | 26.8 m | 34.7 m | 40.2 m | 43.4 m | 36.6 m | 37.0 m | 49.4 m | 55.7 m |
| Net income | 140.2 m | 118.5 m | 143.4 m | 122.6 m | 136.0 m | 136.4 m | 158.5 m | 144.3 m |
| Diluted EPS | 2.47 ≈ | 2.10 | 2.56 | 2.21 | 2.45 ≈ | 2.47 | 2.88 | 2.63 |
| Operating cash flow | 95.8 m | 185.7 m | 143.8 m ≈ | 236.7 m ≈ | 95.0 m | 102.2 m | 253.8 m ≈ | 215.8 m ≈ |
| Capex | 31.5 m | 26.9 m | 25.4 m | 31.6 m ≈ | 42.9 m | 39.2 m | 31.4 m ≈ | 41.2 m ≈ |
| Dividends paid | 40.2 m | 43.0 m | 41.9 m ≈ | 41.6 m ≈ | 41.8 m | 44.1 m | 43.4 m ≈ | 43.2 m ≈ |
| Share repurchases | 52.5 m | 106.7 m | 127.1 m ≈ | 52.7 m ≈ | 51.8 m | 56.7 m | 76.1 m ≈ | 99.4 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 75 percentile of its own 40-quarter history (min 15.4, median 23.7, max 34.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.0 bn | 3.0 bn | 2.7 bn | 3.2 bn | 3.8 bn | 4.2 bn | 4.0 bn | 4.2 bn |
| Revenue YoY | +15.4% | −0.8% | −11.6% | +21.8% | +16.3% | +11.4% | −4.4% | +5.6% |
| Net income | 287.1 m | 293.1 m | 206.1 m | 276.6 m | 472.2 m | 545.2 m | 466.1 m | 520.5 m |
| Net income YoY | +16.0% | +2.1% | −29.7% | +34.2% | +70.7% | +15.5% | −14.5% | +11.7% |
| Diluted EPS | 4.37 | 4.68 | 3.42 | 4.60 | 8.04 | 9.37 | 8.15 | 9.32 |
| Diluted EPS YoY | +17.8% | +7.1% | −26.9% | +34.5% | +74.8% | +16.5% | −13.0% | +14.4% |
| net % | 9.5% | 9.8% | 7.8% | 8.6% | 12.6% | 13.0% | 11.6% | 12.3% |
| Free cash flow | 257.9 m | 333.6 m | 292.2 m | 302.5 m | 311.5 m | 576.6 m | 482.4 m | 534.2 m |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 308.8 m USD
- Financial debt
- 1.3 bn USD
- Net debt
- 985.2 m USD
- Equity
- 1.5 bn USD
- Total assets
- 3.8 bn USD
- Debt / equity
- 0.88x
- Current ratio
- 1.82x
- ROE
- 37.2%
- ROA
- 14.3%
- FCF margin
- 12.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.7 bn | 3.2 bn | 3.8 bn | 4.2 bn | 4.0 bn | 4.2 bn | SEC (XBRL)· 25 Feb 2026verified |
| Cost of revenue | 1.8 bn | 2.2 bn | 2.5 bn | 2.7 bn | 2.5 bn | 2.7 bn | SEC (XBRL)· 25 Feb 2026verified |
| Gross profit | 871.3 m | 1.1 bn | 1.3 bn | 1.5 bn | 1.5 bn | 1.5 bn | SEC (XBRL)· 25 Feb 2026verified |
| Research & development | 51.4 m | 56.0 m | 63.2 m | 71.2 m | 81.8 m | 85.6 m | SEC (XBRL)· 25 Feb 2026verified |
| SG&A | 543.8 m | 597.1 m | 656.6 m | 758.9 m | 780.6 m | 798.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Operating income | 282.1 m | 461.7 m | 612.3 m | 717.8 m | 636.5 m | 718.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Depreciation & amortisation | 80.5 m | 81.1 m | 78.1 m | 86.7 m | 88.2 m | 98.5 m | SEC (XBRL)· 25 Feb 2026verified |
| EBITDA | 362.6 m ≈ | 542.8 m ≈ | 690.4 m ≈ | 804.5 m ≈ | 724.7 m ≈ | 816.6 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Interest expense | 24.0 m | 23.8 m | 31.1 m | 51.1 m | 52.9 m | 58.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Pre-tax income | 264.0 m | 325.0 m | 592.8 m | 686.9 m | 594.1 m | 675.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Income tax | 57.9 m | 48.4 m | 120.6 m | 141.6 m | 128.0 m | 154.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Net income | 206.1 m | 276.6 m | 472.2 m | 545.2 m | 466.1 m | 520.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Diluted EPS | 3.42 | 4.60 | 8.04 | 9.37 | 8.15 | 9.32 | SEC (XBRL)· 25 Feb 2026verified |
| Weighted average diluted shares | 60.2 m | 60.1 m | 58.7 m | 58.2 m | 57.2 m | 55.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Dividend per share | 1.98 | 2.09 | 2.32 | 2.63 | 2.88 | 3.04 | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 257.3 m | 193.0 m | 197.2 m | 393.8 m | 377.3 m | 308.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Receivables | 373.5 m | 429.1 m | 541.5 m | 538.8 m | 482.0 m | 538.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Inventories | 381.3 m | 539.9 m | 665.5 m | 562.9 m | 544.0 m | 633.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Current assets | 1.1 bn | 1.3 bn | 1.6 bn | 1.7 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 25 Feb 2026verified |
| Property, plant & equipment, net | 522.1 m | 511.7 m | 544.9 m | 575.3 m | 619.2 m | 702.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Goodwill | 335.6 m | 430.2 m | 665.3 m | 694.5 m | 804.9 m | 886.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Intangibles (excl. goodwill) | 134.5 m | 149.4 m | 202.7 m | 186.7 m | 221.0 m | 250.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Total assets | 2.3 bn | 2.6 bn | 3.2 bn | 3.4 bn | 3.5 bn | 3.8 bn | SEC (XBRL)· 25 Feb 2026verified |
| Accounts payable | 256.5 m | 330.2 m | 352.1 m | 325.4 m | 296.6 m | 364.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Short-term debt | 2.7 m | 52.7 m | 93.5 m | 2.4 m | 110.5 m | 143.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Long-term debt | 715.5 m | 717.1 m | 1.1 bn | 1.1 bn | 1.2 bn | 1.2 bn | SEC (XBRL)· 25 Feb 2026verified |
| Current liabilities | 549.4 m | 755.9 m | 852.9 m | 754.6 m | 878.8 m | 956.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Total liabilities | 1.5 bn | 1.7 bn | 2.1 bn | 2.1 bn | 2.2 bn | 2.3 bn | SEC (XBRL)· 25 Feb 2026verified |
| Equity | 790.3 m | 863.9 m | 1.0 bn | 1.3 bn | 1.3 bn | 1.5 bn | SEC (XBRL)· 25 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 351.4 m | 365.1 m | 383.4 m | 667.5 m | 599.0 m | 661.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Capex | 59.2 m | 62.5 m | 71.9 m | 91.0 m | 116.6 m | 127.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Free cash flow | 292.2 m ≈ | 302.5 m ≈ | 311.5 m ≈ | 576.6 m ≈ | 482.4 m ≈ | 534.2 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Investing cash flow | -49.2 m | -205.4 m | -504.7 m | -74.7 m | -361.2 m | -257.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Financing cash flow | -246.1 m | -221.9 m | 133.7 m | -412.4 m | -244.6 m | -461.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Dividends paid | 118.1 m | 121.9 m | 130.7 m | 148.0 m | 162.1 m | 168.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Share repurchases | 113.5 m | 164.5 m | 181.3 m | 198.8 m | 263.8 m | 338.3 m | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 58 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
30 Oct 2026Source: olivLaw, closing series
Market cap: 15.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Returns66
- Balance sheet71
- Valuation55
- Quality63
- Growth34
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 39.95 – 395.35 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)122.70 – 199.36 (Mid 152.20)WACC 9.0% · starting FCFF 554.8 m USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 30.5%
- Peers: EV/EBITDA213.61 – 395.35 (Mid 317.41)19 companies used · median multiple 19.9x · quartiles 13.7x – 24.6xAAPL, CMI, CSCO, CW, DELL, DOV, FTI, FTNT, HPE, HPQ, IR, ITT, LRCX, NDSN, NTAP, STX, WDC, XYL, ZBRA
- Peers: P/E228.37 – 342.69 (Mid 280.31)32 companies used · median multiple 26.9x · quartiles 21.9x – 32.8xAAPL, BKR, CAT, CMI, CSCO, CW, DE, DELL, DOV, ETN, FFIV, FTI, FTNT, HPE, HPQ, IBM, IEX, IR, ITT, ITW, JCI, LOGI, LRCX, NDSN, NTAP, NVT, SMCI, SNDK, STX, WDC, XYL, ZBRA
- Dividend discount (DDM)39.95 – 53.72 (Mid 45.82)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 58/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 25.6% | 62 (vs peers) | 10% |
| Net margin · Quality | 12.4% | 44 (vs peers) | 6% |
| FCF conversion · Quality | 89.0% | 84 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 4.0% | 33 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 5.0% | 34 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 1.0x | 45 (vs peers) | 10% |
| Interest coverage · Balance sheet | 14.3x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.9x | 93 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 26.5x | 61 (vs peers) | 10% |
| EV/EBITDA · Valuation | 17.5x | 60 (vs peers) | 10% |
| FCF yield · Valuation | 3.4% | 43 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 3.0% | 43 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 33.7% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet71/100 · 3/3 factors with a value
- Growth34/100 · 2/2 factors with a value
- Quality63/100 · 3/3 factors with a value
- Returns66/100 · 2/2 factors with a value
- Valuation55/100 · 3/3 factors with a value
Memo
LINCOLN ELECTRIC HOLDINGS INC (LECO). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 4.2 bn USD in 2025; YoY growth 5.6%; net margin 12.4%; ROE 38.7%; net debt/EBITDA 1.0x.
The estimated value range is 168.15–271.02 USD per share (median of 4 methods, agreement: low); assumptions are illustrative. Against the central value of 216.25 USD, the price of 276.92 USD leaves a potential of -21.9% (value / price − 1) and a margin of safety of -28.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 58/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 89.0%
- Interest coverage: 14.3x
- Current ratio: 1.9x
- Payout ratio (FCF): 33.7%
What contradicts it
- The price is above the estimated value range
- The valuation methods diverge
Versus the vertical median
Industrial machinery and computer equipment (SIC 35xx) · same major group (2-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AAPLApple Inc. | 5,029.6 bn | 39.5 | 148.8% | 27.6% | +6.4% | +27% / +102% |
| CSCOCisco Systems, Inc. | 412.0 bn | 31.4 | 27.3% | 21.0% | +11.8% | +43% / +100% |
| PANWPalo Alto Networks, Inc. | 299.3 bn | 914.7 | 1.7% | 2.7% | +24.5% | +66% / +201% |
| LRCXLam Research Corporation | 298.7 bn | 35.6 | 70.1% | 32.3% | +26.0% | +52% / +306% |
| CATCaterpillar Inc | 286.3 bn | 26.8 | 57.0% | 14.5% | +4.3% | +8% / +175% |
| DELLDell Technologies Inc. | 271.6 bn | 24.6 | — | 7.5% | +18.8% | +162% / +534% |
| IBMInternational Business Machines Corporation | 243.7 bn | 22.0 | 35.2% | 16.0% | +7.6% | −16% / +78% |
| ANETArista Networks, Inc. | 213.0 bn | 53.3 | 31.5% | 38.4% | +28.6% | +7% / +237% |
| DEDeere & Co | 182.1 bn | 37.5 | 18.3% | 10.2% | −11.7% | +46% / +85% |
| SNDKSandisk Corporation | 163.8 bn | 9.2 | 141.2% | 67.0% | +175.3% | +477% / unavailable |
| STXSeagate Technology Holdings plc | 148.0 bn | 33.9 | 259.4% | 31.9% | +34.1% | +152% / +844% |
| ETNEATON CORPORATION plc | 143.7 bn | 37.7 | 19.7% | 12.8% | +10.3% | −3% / +78% |
| WDCWestern Digital Corporation | 137.0 bn | 14.2 | 131.5% | 69.2% | +35.7% | +144% / +1,106% |
| FTNTFortinet, Inc. | 100.0 bn | 44.2 | 153.1% | 29.0% | +14.2% | +57% / +138% |
| JCIJohnson Controls International PLC | 90.9 bn | 26.6 | 24.1% | 14.5% | +2.8% | +30% / +204% |
| ITWIllinois Tool Works Inc | 79.2 bn | 24.8 | 101.7% | 19.4% | +0.9% | +14% / +24% |
| HPEHewlett Packard Enterprise Company | 73.1 bn | 28.4 | 11.0% | 6.7% | +13.8% | +126% / +258% |
| CMICummins Inc. | 68.8 bn | 25.3 | 23.0% | 8.1% | −1.3% | +14% / +131% |
| BKRBaker Hughes Company | 54.8 bn | 18.9 | 15.1% | 10.1% | −0.3% | +14% / +60% |
| CARRCarrier Global Corporation | 43.9 bn | — | -14.3% | -7.9% | −3.3% | −10% / +13% |
| PEverpure, Inc. | 42.3 bn | 174.6 | 17.7% | 5.9% | +15.6% | +29% / +276% |
| NTAPNetApp, Inc. | 39.1 bn | 28.1 | 114.8% | 21.8% | +5.6% | +69% / +174% |
| IRIngersoll Rand Inc. | 30.7 bn | 22.5 | 13.4% | 17.2% | +5.7% | +5% / +32% |
| DOVDOVER Corp | 27.6 bn | 24.2 | 15.2% | 13.6% | +4.5% | +14% / +60% |
| FTITechnipFMC plc | 26.7 bn | 21.6 | 38.6% | 12.0% | +9.4% | +66% / +220% |
1- and 3-year price returns: for LECO from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 165.84 Total return -39% · Per year -39% | 293.26 Total return 7% · Per year 7% | 441.83 Total return 61% · Per year 61% |
| 3 years | 159.39 Total return -40% · Per year -16% | 317.30 Total return 18% · Per year 6% | 525.11 Total return 94% · Per year 25% |
| 5 years | 153.20 Total return -40% · Per year -10% | 343.31 Total return 31% · Per year 5% | 624.08 Total return 134% · Per year 19% |
- Exit P/E± 79.33
- Net margin± 55.53
- Annual revenue growth± 45.79
- Annual dilution± 4.67
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (27 Oct 2026 · results), 10-Q (27 Oct 2026).
In brief
Lincoln Electric designs and sells welding equipment, consumables, cutting systems and industrial automation solutions, and as it says itself is the world's largest manufacturer of arc welding solutions. In the second quarter of 2026 net sales rose 12.0% to a record 1.22 billion USD 3, with organic growth of 10.1% 3, and these results show how industrial demand and higher pricing can support performance amid economic and trade uncertainty.
SWOT
Strengths
- The company presents itself as the world's largest manufacturer of welding solutions and holds a leading position in several segments 1. It has a broad base of factories across many countries and the capacity to serve different markets 1.
- Research and development investment, the technical sales force and welding patents are treated as assets that support product differentiation 1.
- Recent results show the ability to generate cash and hold stable margins through cost discipline and better pricing 3.
Weaknesses
- Welding markets in developed economies are mature and cyclical, which makes revenue sensitive to falls in industrial investment 1.
- Sales growth has relied largely on higher prices, and volumes fell in some periods, which raises questions about underlying demand 12.
- Long-term debt remains significant, and financing costs could rise if interest rates stay high 2.
Opportunities
- If capital investment in the Americas and Asia Pacific keeps recovering, the automation segment could return to volume growth 32.
- Expansion in the retail channel through The Harris Products Group could add sales and diversify revenue sources 12.
- Acquisitions and their integration could complement the automation and services portfolio if executed well 1.
Threats
- Trade tariffs and retaliation by other countries could raise costs and reduce access to some markets 1.
- Volatile steel, copper and energy prices could reduce margins if they cannot be passed on to customers 1.
- Geopolitical risks, regional conflicts and slowing economies in Europe could affect demand and deliveries 12.
Risks
- Cyclical industrial demandhigh
Demand for welding and cutting depends on industrial investment, which can drop quickly when the economy slows 1.
- Tariffs and trade policyhigh
Changes in tariffs can alter import and export costs, and the company says it cannot predict the final impact 1.
- Raw material and energy costsmedium
Prices of steel, aluminum, copper and energy are volatile, and increases can squeeze margins if they are not passed on to customers 1.
- International operations riskmedium
Operations outside the United States expose the company to political instability, exchange controls and currency swings that can affect results 1.
- Cybersecurity and AI uselow
Cybersecurity incidents or misuse of AI technologies could lead to data loss, reputational harm and remediation costs 1.
Investment thesis
What would need to be true (bull case)
- The company reported record second quarter 2026 sales with sustained organic growth and rising operating margins, suggesting that its pricing and cost strategy is working 3.
- If industrial investment in the Americas and Asia Pacific keeps recovering, the automation segment could generate higher volumes and more earnings power 32.
- Its leading position in welding, global factory network and existing patents could support a long-term competitive advantage 1.
What would break the thesis
- The welding market is mature and cyclical in developed economies, and a drop in industrial investment could quickly reduce sales 1.
- Recent growth has relied largely on higher prices, and if volume demand does not recover, margins could come under pressure 12.
- Tariffs, raw material costs and slowing demand in Europe could weigh on results, and long-term debt could become more costly if interest rates stay high 12.
What to watch
- Organic volume trends in Americas Welding and International WeldingQ3 2026
- Impact of tariffs and trade negotiations on costs2026
- Gross margin trend as raw material costs and LIFO effects evolveQ3 2026
- Results reported in the next 10-K and the sources it cites for 2026next 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (27 Oct 2026 · results), 10-Q (27 Oct 2026).
The business
The company presents itself as a high-performance industrial machinery and technology leader that helps customers manufacture and maintain vital equipment and infrastructure through processes such as welding, cutting, brazing, machining, process automation and field repair 1. The portfolio includes arc welding equipment, filler metals, laser, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, specialty gas regulators, mobile power equipment, wear solutions, software and education solutions, as well as automated solutions and system integration services 1. Standard products are made for stock, while automation solutions are mostly custom or build-to-print systems 1.
Manufacturing is spread globally: the company reports manufacturing and automation facilities in 20 countries, including the United States, Germany, China, Mexico, Brazil and Romania 1, and had approximately 12,000 employees at December 31, 2025 1. Sales go through industrial distributors, retailers and directly to users in the Americas, and through an international sales organization of employees and agents outside the Americas 1. Customers are not dependent on a single buyer, but the loss of a large customer could hurt results 1.
The company reports three operating segments: Americas Welding, covering welding in North and South America; International Welding, covering Europe, the Middle East, Africa, Asia and Australia; and The Harris Products Group, covering global cutting, soldering and brazing businesses, specialty gas equipment and the retail business mainly in the United States 1.
Segments
Market context
The arc welding and cutting industry is mature in developed markets such as North America and Western Europe and is cyclical, with demand largely determined by capital spending in manufacturing and other industrial sectors 1. Key end markets are general fabrication, energy, heavy industries, automotive and transportation, and construction and infrastructure 1. Regional markets remain fragmented, and the company says it has relatively few global broad-line competitors 1.
Recent sales growth has largely come from higher prices that offset higher input costs, while volumes were under pressure in 2025 1. In the first half of 2026 organic growth was 9.0%, almost entirely from pricing, and volumes turned slightly positive in the second quarter 23.
Trends
- US trade tariffsheadwind
The US government introduced tariffs on imports and some trading partners responded with their own measures. The company says it has taken steps to address the impact but cannot predict the final effect, and additional tariffs could affect costs and market access 1. Trade negotiations are a factor the company is monitoring.
- Recovering capital investment in the Americastailwind
Management says it has seen improved industrial demand and capital spending in the Americas and Asia Pacific, which supports sales in the automation business 32. If this trend holds it could support volume growth after a weaker 2025 1.
- Raw material and energy costsmixed
The company uses steel, electronic components, engines, brass, copper, silver and aluminum alloys, whose prices are volatile 1. Cost increases have been partly passed on to customers through higher prices, which supported sales but pressured gross margin and created LIFO charges 12.
- Slowing industrial activity in Europeheadwind
In the second quarter of 2026 volumes in International Welding fell due to slowing industrial activity in Europe and the Middle East conflict 2. If European weakness persists it could limit growth in the international segment.
Competitive position
Competition in welding, cutting and automation is intense, and regional markets are fragmented, with many smaller competitors in specific geographies 1. The company says it differentiates through product quality, brand, service, commercial programs, technical support and an extensive distributor network and regional factories 1.
The company says it is the leader in arc welding and in automation, cutting, mobile and power solutions, but the sources do not give competitors' market shares 1. The advantage depends on innovation, the technical sales force and welding patents 1.
- Global broad-line competitors
The company says it has relatively few global broad-line competitors, but numerous smaller competitors in regional markets 1. The sources do not name them.
- Regional welding and cutting manufacturers
Local competition is based on brand, price and service in each region, and there are many of them 1.
- Automation and system integration providers
Custom automation solutions face competition from integrators and system builders, making competition more fragmented 1.
- Distributors and retailers selling rival brands
The distribution network is essential to the company, but the same distributors may also sell other brands 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Navy airman recounts USS Lincoln leap: ‘If I was supposed to die then I would have just been dead’The Hill · 30 Oct 2026 · EN
- Fotbal: Andrei Coubiș, la primul său gol pentru Lincoln City, în ChampionshipAgerpres · 17 Oct 2026 · RO
- Cum a ajuns un portavion american să bifeze 10 submarine distruse în Iran: Detaliile din spatele celor 174 de trofee de luptă ale USS LincolnDefenseRomania.ro · 10 Oct 2026 · RO
- Portavionul USS Abraham Lincoln s-a întors în SUA după o misiune prelungită în Orientul MijlociuG4Media · 09 Oct 2026 · RO
- Imagini emoționante în San Diego. Ruginit, portavionul USS Abraham Lincoln s-a întors în port, după o misiune dramatică de 322 de zileAntena 3 CNN · 09 Oct 2026 · RO
- USS Abraham Lincoln back in home port after troubled Persian Gulf deploymentThe Japan Times · 09 Oct 2026 · EN
- USS Abraham Lincoln returns after record-breaking deploymentAl Jazeera English · 09 Oct 2026 · EN
- USS Lincoln returns to US after long deployment supporting war on IranAl Jazeera English · 09 Oct 2026 · EN
- The long-deployed USS Lincoln returns home to San Diego BayNPR News · 09 Oct 2026 · EN
- Авианосец Abraham Lincoln вернулся в США после 321-дневной миссииRBC News (RU business+politics) · 08 Oct 2026 · RU
- Portavionul Abraham Lincoln s-a întors în Statele Unite după o misiune agitată în Orientul Mijlociu (FOTO-VIDEO)Agerpres · 08 Oct 2026 · RO
- USS Lincoln docks in San Diego after 10-month missionBBC World News · 08 Oct 2026 · EN
- Экипаж авианосца USS Abraham Lincoln вернулся в США после почти года в мореKommersant (RU) · 08 Oct 2026 · RU
- Thousands turn out to welcome weary USS Lincoln sailors after fraught stretch at seaThe Guardian World · 08 Oct 2026 · EN
- USS Abraham Lincoln docks in San Diego after grueling deploymentThe Hill · 08 Oct 2026 · EN
- The long-deployed USS Lincoln is returning home to San DiegoNPR News · 08 Oct 2026 · EN
- USS Abraham Lincoln scheduled to dock in San Diego after harrowing stretch at seaThe Guardian World · 08 Oct 2026 · EN
- USS Lincoln carrier to return to port in San Diego after record-breaking deployment – US politics liveThe Guardian World · 08 Oct 2026 · EN
- Hegseth unveils Presidential Unit Citation to USS Abraham Lincoln crew after lengthy deploymentThe Hill · 07 Oct 2026 · EN
- Hegseth tells USS Lincoln sailors controversial deployment ‘wasn’t easy’The Guardian World · 07 Oct 2026 · EN
SEC filings
- Quarterly report27 Oct 2026
- Current report27 Oct 2026Results of operations · Financial statements and exhibits
- Current report11 Aug 2026Departure or appointment of officers
- Quarterly report30 Jul 2026
- Current report30 Jul 2026Results of operations · Financial statements and exhibits
- Quarterly report30 Apr 2026
- Current report30 Apr 2026Results of operations · Financial statements and exhibits
- Current report21 Apr 2026Shareholder vote
- Proxy statement19 Mar 2026
- Annual report25 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Lincoln Electric Holdings, Inc. · 25 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Lincoln Electric Holdings, Inc. · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Lincoln Electric Holdings, Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.