GET DAILY SIGNALSLincoln Electric (LECO) Reports Record Q3 Sales and EPS Growth
Key Takeaways
- Lincoln Electric reported record third-quarter sales of $1.221 billion, up 15% year over year, led by 9% volume growth.
- Adjusted diluted earnings per share (EPS) rose 21% to a record $2.98, beating the consensus estimate of $2.81 by $0.17; revenue also topped the $1.17 billion consensus.
- Reported (GAAP) diluted EPS increased 19% to $2.63, while adjusted operating income climbed 19% to $220 million with an 18% margin.
- Gross margin compressed about 190 basis points to 34.8%, reflecting price-cost headwinds management expects to neutralize in the fourth quarter.
- The board raised the dividend 10% to an annualized $3.48 per share, marking the company's 31st consecutive annual increase.
- For more detail, explore Lincoln Electric's Major News, Today's Price Move, Price Targets, and Forecast.
- Discover automated trading ideas with Trending AI Robots.
Why These Results Matter
Lincoln Electric Holdings, Inc. is a leading global manufacturer of welding, cutting, and automation products, and its quarterly results offer a timely read on industrial and manufacturing demand worldwide. The third quarter of 2026 marked the first period in more than two and a half years in which volume growth outpaced price, a signal that underlying industrial activity is accelerating rather than relying on pricing to drive revenue. With strength concentrated in the Americas and Asia Pacific and a record automation backlog, this report matters to investors gauging the durability of a broad industrial upcycle, the health of capital spending, and the company's ability to convert demand into expanding margins. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Lincoln Electric posted record third-quarter net sales of $1.221 billion, a 15% increase from the prior-year period, reflecting roughly 9% higher volumes and 6% higher price. Adjusted diluted EPS reached a record $2.98, up approximately 21% year over year and ahead of the $2.81 analyst consensus, while revenue surpassed the $1.17 billion estimate. Reported diluted EPS rose 19% to $2.63.
Segment results were mixed but broadly constructive. Americas Welding sales grew about 16% to $801 million, with adjusted EBIT (earnings before interest and taxes) up 27% to $167 million and a 190-basis-point margin expansion to 20.1%. International Welding sales rose 3% to $227 million, but adjusted EBIT fell 7% to $24 million as weak European capital spending offset Asia Pacific strength. Harris Products Group sales jumped 29% to $193 million, driven largely by higher metal prices, with adjusted EBIT up 21% to $34 million. Company-wide adjusted operating margin improved 60 basis points to 18%.
Market Reaction and Investor Sentiment
Investors responded favorably to the results, with Lincoln Electric shares moving higher in the wake of the release as the company beat on both earnings and revenue while raising its full-year sales outlook. Sentiment was supported by evidence of broad-based volume growth across all five end markets, a record automation and equipment backlog, and a dividend increase that underscored management's confidence in cash generation. The primary points of caution centered on compressed gross margin and softer International Welding performance, which tempered enthusiasm in some corners of the market. Overall, the report reinforced a view that industrial demand momentum remains intact heading into the end of the year.
Forward Outlook and Key Factors to Monitor
Management raised its full-year 2026 net sales growth expectation to the low-teens percent range, citing stronger demand trends, and lifted its capital expenditure range to $140 million to $150 million to support growth and RISE strategy investments. Price-cost is expected to return to neutral in the fourth quarter after lagging by roughly 100 basis points during the third quarter, a key factor for gross margin recovery.
Investors will want to monitor whether Americas Welding sustains its 20% to 21% EBIT margin range and whether International Welding improves toward the 12% to 13% range as guided. Harris Products Group is expected to operate near an 18% margin at current metal prices, with HVAC demand remaining a positive driver.
Beyond the quarter, a record backlog in automation and equipment positions the company for 2027, while new product launches and physical-AI automation capabilities may broaden its addressable market. Continued cost pressures from energy, logistics, and electronic components—exacerbated by data-center-driven spot shortages—remain a watch item that could influence margin trajectories in the quarters ahead.
Exploring AI Tools for Stock Analysis
In my own research process, I often turn to Tickeron’s AI-powered tools to cross-check earnings data and spot patterns across the industrial sector. The AI Screener helps filter opportunities based on technicals and fundamentals, while the AI Trend Prediction Engine offers additional context on potential price movements. These resources have become a regular part of how I evaluate reports like this one, providing a broader view without replacing traditional analysis.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for LECO turns negative, indicating new downward trend
LECO saw its Momentum Indicator move below the 0 level on October 07, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 82 similar instances where the indicator turned negative. In 52 of the 82 cases, the stock moved further down in the following days. The odds of a decline are at 63%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for LECO turned negative on October 09, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In 26 of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at 62%.
LECO moved below its 50-day moving average on October 07, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LECO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 37 of 52 cases where LECO's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
Following a +1.52% 3-day Advance, the price is estimated to grow further. Considering data from situations where LECO advanced for three days, in 216 of 342 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 171 of 305 cases where LECO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 56%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 27 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 28 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 48 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 55 (best 1 - 100 worst), indicating fairly steady price growth. LECO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: LECO's P/B Ratio (9.071) is very high in comparison to the industry average of (3.100). P/E Ratio (25.634) is within average values for comparable stocks, (21.719). Projected Growth (PEG Ratio) (1.531) is also within normal values, averaging (1.020). Dividend Yield (0.012) settles around the average of (0.018) among similar stocks. P/S Ratio (3.155) is also within normal values, averaging (2.217).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a manufacturer of welding, cutting and brazing products
Industry ToolsHardware
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