Lincoln Electric Holdings, Inc. (LECO) Earnings
Lincoln Electric Holdings, Inc. is expected to report next earnings on October 29, 2026 (in NaN days), with a consensus EPS estimate of $2.79. LECO has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +3.9% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $2.81 | $2.93 | +4.2% | $1.2B | +4.3% |
| Apr 30, 2026 | $2.42 | $2.50 | +3.4% | $1.1B | +4.5% |
| Feb 12, 2026 | $2.53 | $2.65 | +4.6% | $1.1B | -0.5% |
| Oct 30, 2025 | $2.38 | $2.47 | +3.6% | $1.1B | -2.4% |
| Jul 31, 2025 | $2.31 | $2.60 | +12.6% | $1.1B | +4.7% |
| Apr 30, 2025 | $2.23 | $2.16 | -3.1% | $1.0B | +2.7% |
| Feb 13, 2025 | $2.04 | $2.57 | +26.0% | $1.0B | +2.3% |
| Oct 31, 2024 | $2.09 | $2.14 | +2.3% | $984M | -2.3% |
| Jul 31, 2024 | $2.31 | $2.34 | +1.3% | $1.0B | -0.3% |
| Apr 25, 2024 | $2.17 | $2.23 | +2.5% | $980M | -6.3% |
| Feb 15, 2024 | $2.18 | $2.45 | +12.4% | $1.1B | +2.3% |
| Oct 27, 2023 | $2.25 | $2.40 | +6.6% | $1.0B | -0.7% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · July 30, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Business Performance * Q2 2026 marked the first inflection to positive volume growth after nine quarters of contraction, led by strength in the Americas Welding segment * The quarter delivered record results for sales, adjusted operating income margin, adjusted earnings per share, and operating cash flow, with top-quartile return on invested capital (ROIC) of 23% * 10% consolidated organic sales growth was achieved across all three product segments, with volume growth in all product areas * $120 million was returned to shareholders via dividends and share repurchases during the quarter, and operating cash flow hit a record $254 million with 138% cash conversion - Demand and End Market Trends * Four out of five end markets achieved organic growth, representing 80% of total revenue exposure; general fabrication grew over 30%, heavy industries and non-residential structural steel grew mid-single-digit, and energy held up well with 30% growth in Americas Welding * Transportation sales declines narrowed to mid-single-digit, with improving demand for automation equipment offset by project timing delays * Geographically, organic growth was strongest in the Americas and pockets of Asia Pacific (China, India, Vietnam); Europe remained soft after Q1 buy-ahead activity, and the Middle East was resilient during the Q2 ceasefire * Capital spending improved in Q2, with equipment and automation volumes growing mid-single-digit to $229 million in automation sales, and the company now holds a record automation backlog - Cost and Pricing Actions * Price actions were implemented across all segments to offset inflation in energy, logistics, and metals; the price-cost gap narrowed to 10 bps negative in Q2, improved from prior levels * A $4.2 million LIFO charge in Q2 brought the full-year expected LIFO headwind to $10 million; a tariff refund partially offset inflationary pressures * SG&A expense increased 7% to $225 million, but SG&A as a percentage of sales improved 100 bps to 18.4% due to sales leverage
Guidance
- Full year 2026 net sales growth guidance is raised to a low double-digit percent rate, up from the prior initial outlook; full year organic sales growth is now expected to hit a high single-digit to low double-digit percent rate, with one-third of growth from volume and two-thirds from price/mix - Price-cost position is expected to reach neutral for the third and fourth quarters of 2026, a revision from the prior full-year neutral target - Americas Welding adjusted EBIT margin is expected to land in the 19% to 20% range for the remainder of 2026 - International Welding adjusted EBIT margin is expected to be in the 10% to 11% range for the full year 2026 - Harris Products Group adjusted EBIT margin is expected to fall to the 18% to 19% range in the second half of 2026 at current metal prices - Full year adjusted operating income margin is expected to be higher than 2025, with a mid-20% incremental margin for the second half of 2026 - Full year interest expense, tax rate, CapEx, and 100% full year cash conversion guidance are all maintained - Quarterly SG&A run rate is expected to be $210 to $215 million for the remainder of 2026, with corporate expense of $1 to $2 million per quarter
Segment performance
1. Americas Welding: Q2 2026 sales increased 11% year-over-year, driven by 7% higher volumes and 4% higher price, with 40 bps of favorable foreign exchange translation. Adjusted EBIT increased 15% to $158 million, with adjusted EBIT margin expanding 110 bps to 19.7%. This segment contributes approximately 66% of total consolidated sales. 2. International Welding: Q2 2026 sales increased 4.5% year-over-year, driven by the alloy steel acquisition, higher prices, and favorable foreign exchange. Volumes declined 5% due to weak European industrial demand. Adjusted EBIT decreased 13% to $27 million, with margin falling 210 bps to 10.6%. This segment contributes approximately 21% of total consolidated sales. 3. Harris Products Group: Q2 2026 sales increased 27% year-over-year, led by 34% higher price. Volumes were pressured by tough prior year comparisons. Adjusted EBIT increased 33% to $42 million, with margin improving 100 bps to 20.4%. This segment contributes approximately 17% of total consolidated sales. Total consolidated Q2 2026 sales were $1.22 billion, up 12% year-over-year.
Risks & headwinds
- Persistent input cost inflation for energy, logistics, and metals remains a headwind, with the need for potential additional price actions if inflation continues - Weak industrial demand and soft end market activity in Europe continue to pressure International Welding segment performance - The resumption of conflict in the Middle East is expected to create a $6 to $7 million per quarter sales headwind for the International Welding segment - Volatility in commodity costs and evolving trade policies create uncertainty for full year results - Project timing and execution risk remains for large automation projects, particularly in the transportation sector - Soft consumer demand continues to pressure retail channel sales for the Harris Products Group
Analyst Q&A
Q: Analyst asks for clarification on the change to price-cost guidance, noting the shift from full-year neutral to H2 neutral, and asks if this implies a positive price-cost position in H2. /
A: CFO Gabe Bruno confirms this is a change from the prior full-year guidance. The company ended Q2 with a 10 bps negative price-cost gap, which was better than expected, and the company now targets achieving full neutral price-cost for the second half of 2026 via ongoing pricing strategy execution. /
Q: Analyst asks if there has been a mix shift in automation demand back to smaller pre-engineered projects, which are more favorable for margins, based on early July demand trends. /
A: CEO Steve Hedlund responds that broad-based demand strengthening is occurring across all automation categories, including the small pre-engineered collaborative robot segment that falls under general industrial end markets. Customer willingness to invest capital has improved notably, and management expects both higher overall demand and favorable mix shift toward higher-margin smaller projects. /
Q: Analyst asks for quantification of the recent tariff refund and clarity on how the $10 million full-year LIFO headwind will flow through H2 2026. /
A: CEO Steve Hedlund notes that the majority of the benefit from tariff refunds was already incorporated into prior pricing actions. The material visible impact was a 100 bps EBIT margin lift for Harris in Q2 2026, and H2 margins for Harris will not sustain the 20% Q2 level. CFO Gabe Bruno adds that the $10 million full-year LIFO headwind already incorporates all expected inflation, tariff, and price-cost impacts, aligned with the new H2 neutral price-cost target. /
Q: Analyst asks for context on the 30%+ organic growth rate in general fabrication, and what run rate management expects for H2 2026 and 2027. /
A: CFO Gabe Bruno explains that growth is driven by accelerating momentum in standard welding equipment capital investment that began in April and continued into July, paired with a record automation backlog (80% of which is in the Americas). CEO Steve Hedlund adds that customer confidence for capital investment in both equipment and automation has stepped up significantly, with steady gradual growth in consumable volumes as production activity rises. The combination of volume tailwinds and remaining year-over-year price increases drives the strong growth rate, which management expects to continue through H2. /
Q: Analyst asks for an update on transportation sector automation demand recovery, and whether customers are gearing up for new plant investment for lightweight vehicle platforms. /
A: CFO Gabe Bruno responds that quoting activity for large automation projects has accelerated significantly, particularly for 2027 and beyond new automotive lightweight vehicle programs. Transportation segment performance already improved in Q2 from Q1, and management expects automation to deliver high single-digit to low double-digit year-over-year sales growth, supported by the record backlog and broad-based customer investment confidence.