Lincoln Electric Holdings, Inc. Earnings Recaps
Q3 2026
Oct 29, 2026
Lincoln Electric’s shares rose 9.2% after the company reported 15% sales growth and 21% adjusted EPS growth, supported by accelerating volume demand. The upside came alongside a 190-basis-point gross-margin decline, which management expects to offset with pricing in the fourth quarter.
Key takeaways
- Third-quarter sales increased 15% to $1.221 billion, with volume up approximately 9% and price up 6%; adjusted EPS rose 21% to $2.98.
- Gross profit increased 9% to $425 million, but gross margin contracted 190 basis points to 34.8%, reflecting late-quarter pricing actions and unfavorable mix. Management expects price-cost neutrality in Q4.
- Organic sales grew across all three segments and five end markets; U.S. sales increased more than 20%, while automation sales reached $232 million on high-teens organic growth.
- Adjusted operating margin improved 60 basis points to 18%, with a 22% incremental margin; ROIC was 23.9%, up 170 basis points year over year.
- Strong automation and equipment orders lifted backlog to a record level, which management said positions the company well for 2027.
Q3 2025
Oct 31, 2025
Lincoln Electric delivered solid third quarter results with an 8% sales increase driven by pricing strategies and strong demand in key segments, despite ongoing challenges in capital spending and regional performance.
Key takeaways
- Sales rose 8% to $1.061 billion, supported by an increase in pricing and contributions from acquisitions.
- Adjusted earnings per share improved by 15% year-over-year, reflecting effective cost management and operational efficiencies.
- Gross profit margin expanded by 90 basis points to 36.7%, aided by permanent savings and disciplined expense management.
- Organic sales increased 5.6%, indicating stabilization in demand for short-cycle products, particularly in the Americas.
- The automation portfolio remains pressured but is showing signs of recovery, with expected sequential sales growth of 15% to 20% in Q4.