Lincoln Electric (NASDAQ:LECO – Get Free Report) released its earnings results on Tuesday. The industrial products company reported $2.98 EPS for the quarter, topping the consensus estimate of $2.81 by $0.17, Zacks reports. The firm had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.17 billion. The firm’s revenue was up 15.1% on a year-over-year basis. During the same period in the previous year, the firm posted $2.47 earnings per share.
Here are the key takeaways from Lincoln Electric’s conference call:
- Record third-quarter results included 15% sales growth to $1.221 billion and adjusted EPS growth of 21% to $2.98, supported by 9% volume growth and operating leverage.
- Demand was broad-based across all segments and end markets, with strong U.S. and Asia-Pacific activity, record automation and equipment backlogs, and management raising full-year sales growth expectations to the low-teens percentage range.
- Automation momentum remains strong, with high-teens sales growth in the quarter and high-single-digit organic growth expected into 2027; new XpertLINC physical-AI technology could expand adoption among customers with variable, high-mix production.
- Gross margin declined 190 basis points to 34.8% as energy, logistics, electronic-component costs and unfavorable mix outpaced pricing, although management expects price-cost neutrality in the fourth quarter.
- Cash generation remained strong, with 107% quarterly cash conversion, $99 million of share repurchases, and a 10% dividend increase marking the company’s 31st consecutive annual payout increase; higher capital spending is intended to support capacity and RISE-related growth investments.
Lincoln Electric Price Performance
Shares of Lincoln Electric stock traded up $1.47 during midday trading on Wednesday, reaching $283.84. The company had a trading volume of 18,929 shares, compared to its average volume of 382,667. The stock has a fifty day moving average price of $267.89 and a 200 day moving average price of $265.49. Lincoln Electric has a fifty-two week low of $216.22 and a fifty-two week high of $310.00. The firm has a market cap of $15.47 billion, a PE ratio of 28.36 and a beta of 1.21.
Lincoln Electric Increases Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be issued a dividend of $0.87 per share. This represents a $3.48 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Thursday, December 31st. This is a positive change from Lincoln Electric’s previous quarterly dividend of $0.79. Lincoln Electric’s payout ratio is presently 34.77%.
More Lincoln Electric News
Here are the key news stories impacting Lincoln Electric this week:
- Positive Sentiment: Q3 earnings and revenue exceeded expectations. Lincoln Electric reported adjusted EPS of $2.98, up 21% from $2.47 a year earlier and above the $2.81 consensus estimate. Revenue increased 15.1% to $1.221 billion, topping the $1.17 billion forecast. Lincoln Electric Reports Third Quarter 2026 Results
- Positive Sentiment: Underlying demand was strong. Organic volume growth reached 9%, outpacing pricing gains across the company’s segments and suggesting that sales growth was driven by improving industrial demand rather than pricing alone. Lincoln Electric: 3 Key Takeaways for Long-Term Investors
- Positive Sentiment: Analyst support improved. Robert W. Baird raised its price target from $317 to $322 and reaffirmed an “outperform” rating, implying additional upside from the referenced $282.37 price. The stock also moved above its 200-day moving average, reinforcing bullish technical momentum.
- Neutral Sentiment: The valuation leaves less room for disappointment. LECO trades at approximately 28 times earnings, while its shares remain below the 52-week high of $310. Investors may continue weighing strong growth against an elevated valuation.
- Negative Sentiment: Margin pressure persists. Coverage of the earnings release indicates that profitability remains constrained despite the revenue and EPS beats. Sustained cost or input pressures could limit the benefit of continued sales growth and temper further upside.
Analyst Ratings Changes
Several equities research analysts recently issued reports on the company. Weiss Ratings raised Lincoln Electric from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Morgan Stanley upgraded shares of Lincoln Electric from an “underweight” rating to an “equal weight” rating and increased their target price for the stock from $257.00 to $283.00 in a research report on Monday, August 10th. Stifel Nicolaus set a $290.00 target price on Lincoln Electric in a research note on Wednesday. Wall Street Zen cut shares of Lincoln Electric from a “buy” rating to a “hold” rating in a research note on Saturday, October 10th. Finally, UBS Group reaffirmed a “buy” rating on shares of Lincoln Electric in a report on Wednesday. Seven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $308.00.
Read Our Latest Report on LECO
About Lincoln Electric
Lincoln Electric Holdings, Inc (NASDAQ: LECO) is a global manufacturer of welding, cutting and industrial automation products. The company serves customers in industries including construction, manufacturing, energy, transportation and heavy equipment.
Its product portfolio includes arc-welding equipment, welding consumables such as electrodes and welding wire, plasma-cutting systems, welding accessories and personal protective equipment. Lincoln Electric also provides robotic and automated welding systems, industrial automation solutions, application engineering, training and maintenance services.
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