Want to see LECO full AI Analyst Report?
Top Page
Lincoln Electric Holdings
(NASDAQ:LECO)
Select Model
Select Model
Rating:68Neutral
Price Target:
$274.00
â–¼(-5.43% Downside)
Action:Downgraded
Date:09/11/26
LECO’s score is anchored by strong underlying financial quality (healthy margins, solid free cash flow, and very strong ROE) and a constructive outlook from the latest earnings call with raised guidance. These positives are tempered by weak current technicals (price below key moving averages with bearish momentum) and only moderate valuation support (P/E ~24.9 and ~1.24% dividend yield), with leverage and international/margin headwinds as additional risks to monitor.
Positive Factors
Strong profitability and cash generation
Strong operating margins and substantial free cash flow show that LECO converts its industrial business into meaningful cash. This supports reinvestment, shareholder returns and resilience across demand cycles, while reducing reliance on external financing to fund ongoing operations.
Negative Factors
Notable leverage for a cyclical manufacturer
Debt roughly equal to equity leaves LECO less financial flexibility than a lightly leveraged industrial company when fabrication and capital-spending demand weakens. Interest and repayment obligations could constrain acquisitions, investment or shareholder returns during a cyclical downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Strong operating margins and substantial free cash flow show that LECO converts its industrial business into meaningful cash. This supports reinvestment, shareholder returns and resilience across demand cycles, while reducing reliance on external financing to fund ongoing operations.
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
$14.34B
Dividend Yield1.2%
Average Volume (3M)381.73K
Price to Earnings (P/E)26.1
Beta (1Y)1.06
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. Volume291,058
30 Day Avg. Volume381,733
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 Cap1.09
Enterprise Value/Revenue3.49
Enterprise Value/Gross Profit9.69
Enterprise Value/Ebitda17.61
Forecast
1Y Price Target
$311.29Price Target Upside7.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)11.2
Revenue Forecast (FY)$4.71B
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 and cutting products and related solutions to industrial customers worldwide. Key revenue streams include: (1) Welding consumables: recurring sales of consumables such as welding wire, elec...
Lincoln Electric Holdings Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial inflection: strong consolidated top-line growth, record cash generation, improved margins and EPS, robust Americas and automation momentum, and an upgraded full-year sales outlook. However, the positives are tempered by margin compression driven by inflation and LIFO, weakness in International/EMEA and Middle East exposure, transportation softness, and ongoing commodity/trade risks that could limit near-term upside. Overall, management is upbeat and has raised guidance while noting several region- and cost-related headwinds that merit monitoring.Positive Updates
Strong Consolidated Sales Growth
Second quarter sales increased 12% to $1.220 billion. Consolidated organic sales rose 10%, driven roughly by +8% price, +2% volume, a 1.5% benefit from the Alloy Steel acquisition and ~40 basis points of favorable FX translation.
Negative Updates
Gross Profit Margin Compression and LIFO Headwind
Gross profit margin compressed 50 basis points to 36.8% in Q2. A $4.2 million LIFO charge hit the quarter and management now expects LIFO to be a ~$10 million headwind for the full year. Persistent inflation, unfavorable mix and tariff/refund timing also pressured gross margin.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Consolidated Sales Growth
Second quarter sales increased 12% to $1.220 billion. Consolidated organic sales rose 10%, driven roughly by +8% price, +2% volume, a 1.5% benefit from the Alloy Steel acquisition and ~40 basis points of favorable FX translation.
Read all positive updates
Company Guidance
Management raised its 2026 outlook, now modeling full‑year net sales growth in the low double‑digit percent range and full‑year organic sales in the high‑single‑digit to low‑double‑digit range with an estimated mix of ~1/3 volume and ~2/3 price; they expect price/cost neutrality in the back half (after a ~10 bps headwind in Q2), a ~$10 million LIFO headwind for the year, and mid‑20% incremental margins for the balance of the year while overall adjusted operating income margin should improve versus prior year. Segment guidance calls for Americas Welding EBIT of 19%–20% for the remainder of the year, International Welding margin of 10%–11% (with an estimated $6–7M/quarter Middle East headwind), and Harris at 18%–19% in H2 at current metal prices. They are maintaining assumptions on interest expense, tax rate, CapEx and cash conversion (targeting 100% cash conversion; YTD 95%), and expect an SG&A run rate of $210–215M per quarter with corporate expense of $1–2M per quarter.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 | 887.30M | 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
Negative
289.73
Price Trends
268.58
Negative
265.06
Negative
263.95
Negative
Market Momentum
-2.05
Positive
42.54
Neutral
56.28
Neutral
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 289.73 is above the 20-day moving average (MA) of 264.75, above the 50-day MA of 268.58, and above the 200-day MA of 263.95, indicating a bearish trend. The MACD of -2.05 indicates Positive momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 56.28 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $15.68B | 49.61 | 9.66% | 3.96% | 17.31% | 27.05% | |
72 Outperform | $7.85B | 30.99 | 8.13% | 1.24% | 5.45% | -16.03% | |
70 Outperform | $18.95B | 18.52 | 17.41% | 2.65% | 4.02% | 4.39% | |
69 Neutral | $14.21B | 23.39 | 6.90% | 3.49% | 0.57% | 29.85% | |
68 Neutral | $14.34B | 26.05 | 37.21% | 1.20% | 9.14% | 12.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $2.38B | 6.93 | 24.79% | 2.57% | 19.82% | 272.31% |
* Industrials Sector Average
LECO
Lincoln Electric Holdings
263.13
23.91
9.99%
KMT
Kennametal
31.11
8.91
40.12%
RBC
RBC Bearings
504.49
97.19
23.86%
SNA
Snap-on
368.91
31.39
9.30%
SWK
Stanley Black & Decker
95.44
27.94
41.39%
TKR
Timken Company
114.97
38.30
49.96%
Lincoln Electric Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Lincoln Electric announces leadership transition in Americas Welding
Neutral
Aug 11, 2026
On August 10, 2026, Lincoln Electric Holdings, Inc. announced that Michael J. Whitehead, Executive Vice President and President of Americas Welding, will resign effective August 28, 2026 to pursue other opportunities, with the company noting his d...
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.