Lincoln Electric (NASDAQ:LECO) Releases Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Lincoln Electric (NASDAQ:LECO) released its earnings results on Tuesday. The industrial products company reported $2.98 earnings per share for the quarter, beating the consensus estimate of $2.81 by $0.17, Zacks reports. The business had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.17 billion. Lincoln Electric had a return on equity of 39.23% and a net margin of 12.35%. The business’s quarterly revenue was up 15.1% compared to the same quarter last year. During the same quarter last year, the business 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 Stock Up 1.6%

LECO traded up $4.48 on Thursday, hitting $285.07. 95,882 shares of the company were exchanged, compared to its average volume of 383,890. The firm has a 50-day moving average price of $267.87 and a two-hundred day moving average price of $265.64. The company has a current ratio of 1.98, a quick ratio of 1.20 and a debt-to-equity ratio of 0.74. Lincoln Electric has a twelve month low of $216.22 and a twelve month high of $310.00. The company has a market cap of $15.54 billion, a price-to-earnings ratio of 28.48, a price-to-earnings-growth ratio of 1.53 and a beta of 1.21.

Lincoln Electric Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Thursday, December 31st will be paid a dividend of $0.87 per share. This represents a $3.48 annualized dividend 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%.

Lincoln Electric News Roundup

Here are the key news stories impacting Lincoln Electric this week:

• Positive Sentiment: Lincoln Electric reported third-quarter revenue of approximately $1.22 billion, up 15.1% year over year and above expectations of $1.17 billion. Adjusted earnings of $2.98 per share also exceeded the consensus estimate of $2.81. Lincoln Electric Shares Gap Up After Earnings Beat
• Positive Sentiment: Organic volume growth of 9% outpaced pricing gains across the company’s segments, suggesting that sales growth is being supported by underlying demand rather than pricing alone. Lincoln Electric: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Coverage after the results highlighted record earnings and a dividend increase, reinforcing the investment case for shareholders seeking both growth and income. Lincoln Electric Q3 2026: Record EPS and a Dividend Hike Signal Welding Comeback
• Positive Sentiment: Several analysts raised their price targets after the report: UBS increased its target to $360 while maintaining a Buy rating, and Robert W. Baird lifted its target to $322 with an Outperform rating. UBS Adjusts Price Target on Lincoln Electric
• Neutral Sentiment: Morgan Stanley raised its target from $283 to $293 but retained an Equal Weight rating, indicating more limited conviction despite the higher valuation estimate. Morgan Stanley Lincoln Electric Rating
• Negative Sentiment: Investors are still monitoring margin pressure, which could limit how much of the strong sales growth flows through to profits. Lincoln Electric Stock Jumps on Q3 Earnings as Margin Pressure Persists

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on LECO shares. Barclays boosted their target price on Lincoln Electric from $300.00 to $350.00 and gave the stock an “overweight” rating in a report on Thursday. Robert W. Baird lifted their target price on shares of Lincoln Electric from $317.00 to $322.00 and gave the stock an “outperform” rating in a research note on Wednesday. Wall Street Zen lowered shares of Lincoln Electric from a “buy” rating to a “hold” rating in a report on Saturday, October 10th. DA Davidson set a $340.00 price objective on Lincoln Electric in a research report on Thursday. Finally, Weiss Ratings downgraded shares of Lincoln Electric from a “buy (b)” rating to a “hold (c)” rating in a research note on Wednesday. Six investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $319.11.

Lincoln Electric Company Profile

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.