Research · Sep 3, 2026
[LECO] Lincoln Electric Thesis 2026: RISE 2030 Strategy Launches From Record Revenue Base
Lincoln Electric Holdings, Inc. FY25 revenue $4.23B (+6% to record); op income $744M (+17%); NI $521M (+12%); EPS $9.32 (+14% record); adjusted EPS record $9.87. FCF $534M (+11%). Adjusted operating income margin maintained. $31M permanent savings from disciplined cost management + supply chain agility. Q4 sales $1,079M (+5.5%); gross profit $374M (+~1%, margin compressed 140bp); SG&A expense -$3M; reported + adjusted operating income +4%. Q4 segment performance — Americas Welding: sales +4% (price +10.4%, FX +60bp); volumes -7%; adj EBIT +7% to $141M; margin +90bp to 20%. International Welding: alloy steel acquisition +7%, FX +5%, price +50bp; volumes -4%; adj EBIT -4% to $31M; margin -100bp to 11.8%. Harris Products: sales +11% (price +18%, FX +170bp); volumes -9% (HVAC); adj EBIT +8%; margin -30bp. Q4 automation sales $240M (-11%) but strong order rates. RISE strategy for 2030 introduced (Reimagining work, Innovating, Serving better, Investing in teams) — targets: sales >$6B, high 20% incremental operating income margin. FY26 guide: sales growth mid single digit; organic sales split 50-50 between volume + 2025 price actions; volume growth improving from Q2; price strongest in Q1 (Americas Welding); capex target $110-$130M. Risks: industrial capex cycle, automation cycle volatility, pricing power sustainability, competitive landscape (ESAB, Air Liquide, Fronius, ITW), HVAC market softness, FX, RISE 2030 execution.