Lincoln Electric Holdings, Inc. Q3 2026 Earnings Recap

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.