Lincoln Electric Holdings (LECO) Q3 2026 Earnings Report
MX:LECO Q3 2026 EPS Results
- Actual EPS
- MXN 55.68
- Consensus EPS
- MXN 52.41
- Beat/Miss
- Beat by +MXN 3.27
- One Year Ago EPS
- MXN 46.15
MX:LECO Q3 2026 Revenue Results
- Actual Revenue
- MXN 22.81B
- Expected Revenue
- MXN 21.92B
- Beat/Miss
- Beat by +MXN 886.16M
- YoY Revenue Growth
- +15.18%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- Before Open
- Conference Call
- Tuesday, October 27, 2026
MX:LECO Upcoming Earnings
Lincoln Electric Holdings's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:LECO Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Record sales and adjusted EPS, broad-based volume-led growth, record automation backlog, strong cash generation, raised full-year sales guidance, new product launches, and continued demand momentum significantly outweighed the stated challenges. The principal concerns were gross margin pressure from inflation and supply shortages, International Welding weakness and conflict-related headwinds, Harris margin pressure, soft retail and housing trends, and incremental margins that remain below the company's desired level.
Company Guidance
For 2026, Lincoln Electric expects net sales growth in the low teens percent range, price cost to be neutral in the fourth quarter, a mid 20% incremental adjusted operating income margin, and capital expenditures of $140 million to $150 million versus the initial assumption of $110 million to $130 million; quarterly SG&A is estimated at $210 million to $215 million, with corporate expenses likely in the $4 million to $5 million range, while Americas Welding price is expected in the low to mid single digit percent range and its EBIT margin in the 20% to 21% EBIT margin range, International Welding margin in the 12% to 13% range with a $6 million to $7 million sales headwind, and Harris at an approximately 18% margin at current metal prices. The company expects automation growth in the high single digits, mid to high single digit type organic growth into 2027, high 20s incremental margin over the long term, and cash conversion in line with its 100% target for the year.
- Record Sales and Adjusted EPSThird-quarter sales increased 15% to $1.221 billion, while adjusted EPS increased approximately 21% to a record $2.98. Reported diluted EPS increased 19% to $2.63.
- Broad-Based Organic GrowthOrganic sales growth was broad, with growth across all three reportable segments, product areas, and all five end markets. Organic sales growth was in the mid-teens percent range, led by 9% volume growth, and U.S. sales increased over 20%.
- Volume Growth MomentumVolume growth increased 9%, outpacing price growth for the first time in over 2.5 years. Management said volume momentum remained robust through October.
- Operating Income and ROIC ImprovementAdjusted operating income increased 19% to $220 million, adjusted operating income margin improved 60 basis points to 18%, and the company delivered a 22% incremental margin. Adjusted ROIC increased 170 basis points to 23.9%.
- Americas Welding StrengthAmericas Welding sales increased approximately 16% to $801 million, driven by 13% higher volume and 2.4% higher price. Adjusted EBIT increased approximately 27% to $167 million, and adjusted EBIT margin expanded 190 basis points to 20.1%.
- Strong Capital Spending and Automation DemandAutomation organic sales growth was in the high teens percent range, producing $232 million of automation sales in the quarter. Equipment organic sales growth accelerated to a low teens percent rate, and strong order rates in both automation and equipment elevated backlog to new record levels.
- Automation Growth OutlookManagement expects continued automation growth at a high single digits organic type growth rate, citing active and broad-based quoting activity, incoming orders, and record backlog. The company said it has confidence that automation momentum will carry into 2027.
- Growth Across End MarketsAll five end markets grew in the quarter. General fabrication organic sales grew mid-20%, energy and nonresidential structural steel increased mid-teens percent, and heavy industries and transportation both grew at a low double digit percent rate.
- Industrial, Infrastructure, and Energy DemandIndustrial and infrastructure activity supported consumable volume growth, particularly in the Americas and Asia Pacific. Energy outperformed in Americas Welding and oil and gas due to strong project activity, while heavy industries benefited from construction and mining activity supporting infrastructure, data center, and mineral investments.
- International Regional ExpansionAsia Pacific continued to expand, with growth in China, India, and North Asia. Core Europe was relatively steady versus the prior year, with the company beginning to see benefits from European import tariffs and some defense spending. The Middle East was more resilient than expected despite a $1 million sales headwind.
- Harris Products Group Sales GrowthHarris Products Group sales increased 29% to $193 million, driven by a 3% increase in volumes and approximately 26% higher price. HVAC and gas equipment demand supported volume growth.
- Harris Demand OutlookManagement expects HVAC demand to remain strong in the fourth quarter, further aided by an easier prior-year comparison. Harris estimates that between mid to high single digits of its segment is exposed to data center activity and expects good momentum to continue into the fourth quarter.
- New Product Launches and InnovationAt FabTech, the company launched over a dozen new solutions, including ArcTracker AIR, a hot wire submerged arc welding solution offering up to 50% improvement in deposition rates using the existing installed base with only modest incremental investments, and the InstructArc extended reality welding trainer.
- ExpertLink Physical AI PlatformThe company launched ExpertLink, a Physical AI solution initially featured on the Cooper Cobot that enables welding robots to adapt to real-world conditions. Management said the technology is intended to reduce barriers to automation adoption, broaden the market for cutting and welding automation, and will be integrated into the automation portfolio over the next few years.
- Positive Customer Response to New ProductsManagement said customer reaction to the products highlighted at FabTech was extremely positive and encouraging. The products were described as being aimed directly at customer pain points involving productivity and quality.
- Automation Market Expansion OpportunityExpertLink is intended to address part variability, changeovers, and the need for welding expertise that have historically limited robotic automation adoption among high-mix, low-volume manufacturers. Management said the platform could support both existing automation customers and customers that previously decided cobots were not practical for their operations.
- ExpertLink Subscription ModelExpertLink includes a subscription element. The first-year subscription is included with the original purchase, followed by an ongoing subscription fee of about $3,000 per year per device.
- Strong Cash Generation and ConversionCash from operations was $216 million. Working capital improved to 16.6% of sales, cash conversion was 107% for the quarter and 99% year to date, in line with the 100% target for the year.
- Shareholder Returns and Dividend IncreaseThe company returned $143 million to shareholders, including $43 million in dividends and $99 million in share repurchases. The board announced the company's 31st consecutive annual increase in the dividend payout rate, raising the annualized rate by 10% to $3.48 per share.
- Raised Full-Year Sales GuidanceThe company raised its full-year sales growth expectation to the low teens percent range, consistent with performance year to date.
- Price-Cost Improvement Expected in Q4Price actions were implemented during the quarter across all three segments. Management expects price cost to be neutral in the fourth quarter, which is expected to support year-over-year gross margin expansion in the period.
- Increased Capital InvestmentThe company raised its 2026 capital expenditure range to $140 million to $150 million from the initial assumption of $110 million to $130 million. It invested $112 million in the first nine months and plans to continue investing to upgrade operating capacity and capabilities in the fourth quarter.
- Long-Term Margin Expansion ObjectiveManagement expects to exit the fourth quarter with mid-twenties incremental margins and said its line of sight is to drive toward a high 20s incremental margin. The company's 2030 objective implies approximately 60 basis points of annual improvement.
- Automotive Automation RecoveryManagement said automotive automation activity is returning to more normal levels after an unprecedented two-year period of delayed decision-making related to uncertainty around ICE, hybrid, and EV strategies. Quoting activity is increasing for long-lead-time automation systems, and planned 2029 and 2030 model launches are viewed positively.
- Additional Automation Opportunities Beyond AutomotiveThe company is seeing improvement in its historical automotive automation base as well as in heavy industries, including mining, construction, and agricultural equipment. Management also cited shorter-cycle opportunities in general industries and general fabrication, including standard weld cells and cobots that can ship in several weeks.
- Middle East Recovery OpportunityThe ongoing conflict reduced International Welding sales by approximately $5 million in the quarter, but management said the company is well positioned for volume opportunities as projects progress, rebuilding occurs, and the market returns to some basis of normal after the conflict is resolved.
MX:LECO Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 18, 2027 | 2026 (Q4) | 57.73- | 49.51 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 52.4155.68 | 46.15 | 20.65% (+9.53) | |
| Jul 30, 2026 | 2026 (Q2) | 52.4854.74 | 48.58 | 12.69% (+6.17) | |
| Apr 30, 2026 | 2026 (Q1) | 45.4046.71 | 40.36 | 15.74% (+6.35) | |
| Feb 12, 2026 | 2025 (Q4) | 47.5149.51 | 48.02 | 3.11% (+1.49) | |
| Oct 30, 2025 | 2025 (Q3) | 45.2946.15 | 39.98 | 15.42% (+6.17) | |
| Jul 31, 2025 | 2025 (Q2) | 43.2248.58 | 43.72 | 11.11% (+4.86) | |
| Apr 30, 2025 | 2025 (Q1) | 41.6840.36 | 41.66 | -3.14% (-1.31) | |
| Feb 13, 2025 | 2024 (Q4) | 37.2648.02 | 45.77 | 4.90% (+2.24) | |
| Oct 31, 2024 | 2024 (Q3) | 38.7939.98 | 44.84 | -10.83% (-4.86) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed