LINCOLN ELECTRIC HOLDINGS (LECO) Company Report

Lincoln Electric reported Q3 2025 sales of $1,061 million, an increase of 7.9%, primarily driven by 7.8% higher price and acquisitions, despite 2.2% lower volumes.
Adjusted diluted earnings per share (EPS) grew 15% to $2.47, while adjusted operating income increased 9% to $185 million, with the margin expanding 10 basis points to 17.4%.
The company achieved record cash flows from operations in Q3 2025, resulting in a year-to-date cash conversion ratio of 119%, and returned $94 million to shareholders through dividends and $53 million in share repurchases.
Q3 2025 global automation sales were approximately $200 million, slightly below expectations, but are projected to be 15% to 20% higher sequentially in Q4 2025 following increased order rates in late September and October.
Management is maintaining its full-year top line and margin assumptions, anticipating traditional seasonality and a modest sequential improvement in operating income margin from Q3 to Q4.

Oct 30, 2025, 2:00 PM

Transcript

LECO Reports Strong Q3 2025 Earnings

LECO

Earnings

Guidance Update

Share Buyback

Lincoln Electric Holdings, Inc. reported Q3 2025 Net Sales of $1.06 billion, an 8% increase year-over-year, driven by 6% organic sales growth.
Adjusted EPS rose 15% to $2.47 in Q3 2025, with an Adjusted Operating Income Margin of 17.4%.
The company achieved record cash generation in Q3 2025, with $237 million in cash flow from operations (up 19% year-over-year) and 119% cash conversion year-to-date.
$94 million was returned to shareholders in Q3 2025 through $42 million in dividends and $53 million in share repurchases.
Full-year 2025 assumptions include low-single-digit percent organic sales growth, 100+% cash conversion, and $300 to $400 million in share repurchases.

Oct 30, 2025, 2:00 PM

Presentation

Lincoln Electric Reports Strong Q3 2025 Results with Increased Sales and EPS

LECO

Earnings

Guidance Update

Revenue Acceleration/Inflection

Lincoln Electric reported Q3 2025 sales of $1,061 million, an increase of 7.9%, driven by 7.8% higher price and 1.7% from acquisitions, partially offset by 2.2% lower volumes. Adjusted diluted earnings per share increased 15% to $2.47.
Organic sales increased 5.6% in Q3 2025, with resilient demand in short-cycle portions of the product portfolio. The automation portfolio, which generated approximately $200 million in Q3, is expected to be 15%-20% higher sequentially in Q4 2025 due to project timing and increased order rates, with an anticipated inflection to growth for auto capital spending in early to mid-2026.
The company generated record cash flows from operations in Q3 2025, with year-to-date cash flows increasing approximately 13% and a 119% cash conversion ratio. Lincoln Electric returned $94 million to shareholders through dividends and $53 million in share repurchases, and announced its 30th consecutive annual dividend payout rate increase of 5.3%.
Lincoln Electric is on track to achieve most targets of its "Higher Standard 2025" strategy, having increased operating income margin by 500 basis points and more than doubled earnings since 2020.

Oct 30, 2025, 2:00 PM

Transcript

Lincoln Electric Holdings, Inc. Reports Third Quarter 2025 Financial Results

LECO

Earnings

Dividends

Share Buyback

Net sales for the third quarter of 2025 increased by 7.9% to $1,061.2 million, with organic sales growing 5.6%.
Diluted earnings per share (EPS) for Q3 2025 was $2.21, and adjusted diluted EPS was $2.47.
The company reported an operating income margin of 16.6% and an adjusted operating income margin of 17.4% for the third quarter of 2025.
Cash flows from operations reached $237 million, with a 149% cash conversion in Q3 2025, and the company returned $94 million to shareholders through dividends and share repurchases.
The Board of Directors declared a quarterly cash dividend of $0.79 per share, marking a 5.3% increase.

Oct 30, 2025, 1:14 PM

8-K

LINCOLN ELECTRIC HOLDINGS Discusses Strategic Growth, Margin Performance, and Market Outlook

LECO

Guidance Update

M&A

Share Buyback

LECO's 2025 strategy targets high single-digit, low double-digit growth, with acquisitions contributing 300-400 basis points. The company has exceeded its operating profit target, achieving over 17% for nearly three years, compared to a 16% average in the current strategy period.
The company maintains a price-cost neutral strategy and is evaluating the impact of expanded Section 232 tariffs, planning pricing actions accordingly.
Volumes have shown more resilience and steadiness than anticipated, particularly in consumables, which account for over half of the business.
Heavy industries (nearly 20% of business) are not expected to see growth until 2026. Automation sales are projected to be down mid-single digits for the full year, with a flattish trend.
The company prioritizes internal capital investment for growth, followed by inorganic growth, and has already completed over $200 million in share repurchases in the first half of the year, targeting $300-400 million for the full year.

Sep 11, 2025, 4:15 PM

Transcript

Lincoln Electric Holdings Discusses Growth Strategy, Margins, and Capital Allocation

LECO

Guidance Update

M&A

Demand Weakening

Lincoln Electric plans to unveil its 2030 strategy in early 2026, building on its 2025 strategy focused on high single-digit, low double-digit growth driven by innovation, automation, and acquisitions, which contribute 300-400 basis points of growth.
The company has consistently expanded operating margins by 200 basis points per cycle and has exceeded its 16% average target for the current strategy period, achieving over 17% for nearly three years, with expectations for continued improvements.
While consumables show stability, heavy industries are challenged with no growth expected until 2026. Automation sales are projected to be down mid-single digits for the full year 2025, maintaining a steady run rate of $250 million per quarter.
Capital allocation prioritizes internal growth and inorganic opportunities in both automation (estimated $35 billion Total Addressable Market) and core welding (estimated $25 billion TAM), with recent acquisitions including a core welding business in August and a business in Australia.
Lincoln Electric aims to return $300 million-$400 million to shareholders in 2025, having already completed over $200 million by Q2, and has increased its dividend for 29 consecutive years.

Sep 11, 2025, 4:15 PM

Transcript

Lincoln Electric Discusses Strategic Outlook, Market Conditions, and Capital Allocation

LECO

Guidance Update

New Projects/Investments

Share Buyback

Lincoln Electric's operating margins have consistently exceeded their 16% average, remaining above 17% for the past three years. While automation sales were $911 million in 2024, they are projected to be down mid-single digits for the full year 2025, maintaining a steady run rate of $250 million per quarter.
The company's strategy focuses on innovation, automation, and acquisitions for growth, with expectations for continued operating model improvements. Lincoln Electric is targeting $10 million to $15 million in permanent cost savings in the second half of 2025 and is actively seeking alternative suppliers to mitigate cost impacts, including tariffs.
Consumable volumes show resilience and steadiness, but heavy industries are expected to remain challenged until 2026. Capital allocation prioritizes internal growth investments and inorganic opportunities, with a 2025 share repurchase target of $300 million to $400 million, of which over $200 million was completed in the first half.

Sep 11, 2025, 4:15 PM

Transcript

Lincoln Electric Holdings Discusses Strategy, Market Dynamics, and Capital Allocation

LECO

Guidance Update

New Projects/Investments

Demand Weakening

Lincoln Electric's 2025 Higher Standard strategy targets high single-digit to low double-digit growth, driven by innovation, automation, and acquisitions, with operating margins consistently exceeding 17%.
The company maintains a price-cost neutral strategy amidst resilient volumes in consumables, which constitute about half of its business, while heavy industries (nearly 20% of business) are expected to remain challenged until 2026.
Automation sales are projected to decline mid-single digits for the full year from $911 million in 2024, due to customer deferrals on capital investments.
Lincoln Electric plans $300 million to $400 million in share repurchases for the year, having already completed over $200 million in the first half, and has increased its dividend for 29 consecutive years.

Sep 11, 2025, 4:15 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for LINCOLN ELECTRIC HOLDINGS.

Ask Fintool AI Agent

Get instant answers from SEC filings, earnings calls & more

What did Steven Hedlund say about margins?What are LINCOLN ELECTRIC HOLDINGS's strategic priorities?How is LINCOLN ELECTRIC HOLDINGS positioned vs competitors?How did LINCOLN ELECTRIC HOLDINGS do last quarter?

Let Fintool AI Agent track LINCOLN ELECTRIC HOLDINGS's earnings for you

Get instant analysis when filings drop