Lincoln Electric Holdings (LECO) AI Stock Analysis

Lincoln Electric Holdings

(BMV:LECO)

Rating:―N/A

Action:N/A

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Positive Factors

Broad-based growthGrowth is broad rather than concentrated in one product or customer group, with volume leading price and all major end markets expanding. That breadth supports more durable revenue momentum, improves operating leverage, and indicates the company is capturing demand across diverse industrial applications.

Negative Factors

Inflationary margin pressurePersistent input-cost inflation and supply shortages are pressuring gross profit before pricing actions fully catch up. If cost increases remain difficult to recover, margin expansion and incremental profitability could stay below management’s targets over the next several quarters.

Lincoln Electric Holdings (LECO) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 15.00B
Dividend Yield: 1.19%
Average Volume (3M): ―
Price to Earnings (P/E): 26.3
Beta (1Y): 0.08
Revenue Growth: -0.50%
EPS Growth: 0.11%
Country: Mexico
Employees: 12,000
Sector: Industrials
Sector Strength: 63
Industry: Manufacturing - Tools & Accessories

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 orga...

Lincoln Electric Holdings Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Feb 17, 2027

Earnings Call SentimentPositive

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.

Positive Updates

Record Sales and Adjusted EPS

Third-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.

Negative Updates

Gross Margin Compression from Cost Inflation and Timing

Gross profit margin compressed 190 basis points to 34.8%, primarily due to the timing of new price increases, which went into effect late in the quarter, and unfavorable mix. Energy, logistics, and electronic component costs continued to increase, while AI data center demand created spot shortages for some raw materials.

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.

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.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Lincoln Electric Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

MX:LECO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBC	75Outperform	$14.63B	41.12	10.39%	―	17.42%	36.26%
SNA	70Outperform	$18.35B	18.21	16.84%	2.74%	2.93%	0.65%
SWK	69Neutral	$15.62B	25.35	6.90%	3.22%	0.57%	29.85%
KMT	66Neutral	$2.22B	6.48	24.79%	2.75%	19.82%	272.31%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TKR	60Neutral	$7.69B	29.89	8.13%	1.28%	5.45%	-16.03%

* Industrials Sector Average

Performance Comparison

MX:LECO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:LECO	Lincoln Electric	4847.02	674.26	16.16%
KMT	Kennametal Inc	29.10	7.45	34.44%
RBC	Rbc Bearings	462.21	33.81	7.89%
SNA	Snap-on Inc	355.66	26.79	8.15%
SWK	Stanley Black & Decker	103.44	39.81	62.56%
TKR	Timken	110.90	34.00	44.21%

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.

Lincoln Electric Holdings AI Stock Analysis