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Lincoln Electric Holdings
(NASDAQ:LECO)
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Rating:70Outperform
Price Target:
$283.00
▲(8.26% Upside)
Action:Upgraded
Date:04/30/26
LECO scores well on financial quality (strong margins and returns) and a constructive earnings outlook (raised sales guidance and expected pricing-driven margin recovery). The score is held back by softer recent cash flow trends and higher leverage, mixed technical positioning, and a valuation that looks demanding relative to the modest dividend yield.
Positive Factors
High profitability and ROE
Sustained high margins and a very strong ROE reflect durable pricing power, efficient operations and capital allocation. These characteristics support reinvestment, R&D, and shareholder returns, and provide a buffer through industry cycles, underpinning long-term cash generation and returns.
Negative Factors
Rising leverage
Higher debt relative to equity tightens financial flexibility and raises interest and covenant risk during slower demand. With elevated leverage, the company has less optionality to fund opportunistic investments or comfortably absorb cyclical downturns without constraining returns or capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and ROE
Sustained high margins and a very strong ROE reflect durable pricing power, efficient operations and capital allocation. These characteristics support reinvestment, R&D, and shareholder returns, and provide a buffer through industry cycles, underpinning long-term cash generation and returns.
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.
Data provided by:
The Fly
The FlyLincoln Electric Holdings (LECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.16B
Dividend Yield1.22%
Average Volume (3M)335.02K
Price to Earnings (P/E)26.4
Beta (1Y)1.05
Revenue Growth7.72%
EPS Growth19.51%
CountryUS
Employees12,000
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)9.78
Shares Outstanding54,787,110
10 Day Avg. Volume412,475
30 Day Avg. Volume335,022
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 Cap1.13
Enterprise Value/Revenue3.67
Enterprise Value/Gross Profit10.16
Enterprise Value/Ebitda18.62
Forecast
1Y Price Target
$294.80Price Target Upside12.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)10.96
Revenue Forecast (FY)$4.57B
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 welding-related products and solutions to industrial customers. Key revenue streams include: (1) Welding equipment sales: revenue from power sources, wire feeders, torches, cutting equipment, and o...
Lincoln Electric Holdings Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 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
82
Very Positive
Balance Sheet
73
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.35B | 4.23B | 4.01B | 4.19B | 3.76B | 3.23B |
| Gross Profit | 1.57B | 1.54B | 1.48B | 1.48B | 1.28B | 1.07B |
| EBITDA | 856.48M | 835.13M | 800.52M | 789.48M | 708.11M | 675.23M |
| Net Income | 538.43M | 520.53M | 466.11M | 545.25M | 472.22M | 276.58M |
Balance Sheet | ||||||
| Total Assets | 3.90B | 3.78B | 3.52B | 3.38B | 3.18B | 2.59B |
| Cash, Cash Equivalents and Short-Term Investments | 298.90M | 308.79M | 377.26M | 393.79M | 197.15M | 192.96M |
| Total Debt | 1.48B | 1.29B | 1.32B | 1.16B | 1.25B | 819.00M |
| Total Liabilities | 2.39B | 2.31B | 2.19B | 2.07B | 2.15B | 1.73B |
| Stockholders Equity | 1.51B | 1.47B | 1.33B | 1.31B | 1.03B | 864.10M |
Cash Flow | ||||||
| Free Cash Flow | 438.46M | 534.20M | 482.37M | 576.55M | 311.50M | 302.53M |
| Operating Cash Flow | 577.65M | 661.17M | 598.98M | 667.54M | 383.39M | 365.06M |
| Investing Cash Flow | -273.74M | -257.33M | -361.23M | -74.73M | -504.69M | -205.36M |
| Financing Cash Flow | -389.97M | -461.89M | -244.64M | -412.39M | 133.72M | -221.94M |
Lincoln Electric Holdings Technical Analysis
Negative
261.40
Price Trends
263.02
Negative
264.27
Negative
252.45
Positive
Market Momentum
0.33
Positive
44.65
Neutral
15.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LECO, the sentiment is Negative. The current price of 261.4 is below the 20-day moving average (MA) of 264.67, below the 50-day MA of 263.02, and above the 200-day MA of 252.45, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 15.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $19.13B | 66.22 | 8.90% | ― | 14.34% | 18.07% | |
78 Outperform | $21.35B | 20.94 | 17.48% | 2.52% | 2.99% | 1.23% | |
70 Outperform | $14.16B | 26.42 | 37.29% | 1.22% | 7.72% | 19.51% | |
66 Neutral | $9.89B | 32.13 | 9.77% | 1.61% | 3.31% | -5.18% | |
64 Neutral | $14.29B | 37.66 | 4.12% | 4.42% | -0.06% | 3.45% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $2.55B | 18.71 | 10.46% | 2.74% | 7.16% | 28.79% |
* Industrials Sector Average
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Lincoln Electric Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Lincoln Electric Shareholders Reaffirm Board, Auditors and Pay
Positive
Apr 21, 2026
Lincoln Electric Holdings reported the results of its April 17, 2026 Annual Meeting of Shareholders, where investors elected ten directors to serve until the 2027 annual meeting or until their successors are chosen. The vote totals showed broad su...
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.