Lincoln Electric Holdings, Inc. (LECO) AI Stock Analysis

Lincoln Electric Holdings, Inc., founded in 1895 and headquartered in Cleveland, Ohio, is a global manufacturer of welding, cutting, and brazing products. Operating across three segments—Americas Welding, International Welding, and The Harris Products Group—the company provides arc welding power sources, plasma cutters, robotic welding packages, and automated systems. It also produces consumables like electrodes and fluxes, as well as CNC cutting systems, regulators, and brazing and soldering alloys. Lincoln Electric serves fabrication, automotive, energy, construction, infrastructure, shipbuilding, and repair markets worldwide through direct sales, industrial distributors, retailers, and agents.

Lincoln Electric delivered a 5-year revenue CAGR of 9.8% from FY2020 to FY2025. Annual revenue expanded from $3.23B in FY2021 to $4.19B in FY2023, before declining 4.4% to $4.01B in FY2024. In FY2025, revenue recovered with 5.5% growth to $4.23B, net income reached $520.5M, and diluted EPS rose to $9.88, supported by an operating margin of 16.9% and a gross margin of 36.3%. In the latest quarter ended June 30, 2026, quarterly revenue grew 12.0% year-over-year while quarterly earnings rose 12.5%, driving trailing twelve months revenue to $4.48B and EPS to $10.01.

As of June 30, 2026, Lincoln Electric carried $242.4M in cash and short-term investments alongside total debt of $1.15B, resulting in net debt of $907.6M. Total assets stood at $3.81B against shareholders' equity of $1.55B, yielding a debt-to-equity ratio of 0.74 and a current ratio of 1.98. In FY2025, the company produced $661.2M in operating cash flow and $534.2M in free cash flow. Capital allocation included $127.0M in capital expenditures, $338.3M in share buybacks, and $168.2M in dividends paid, contributing to a 5-year share count change of -7.6%.

Lincoln Electric trades at a trailing P/E of 26.2x and a forward P/E of 21.2x, both above the median of its US-listed Industrials peers (24.8x and 17.2x, respectively). Its EV to EBITDA ratio of 17.4x and price-to-sales multiple of 3.2x also exceed peer medians of 13.9x and 1.5x. However, Lincoln Electric's TTM operating margin of 18.2% outpaces the peer median of 11.7%. Over the past year, the stock returned 11.4% compared to 16.8% for the S&P 500, while its 5-year return of 103.1% outperformed the index's 83.0% gain.

Lincoln Electric pays a forward annual dividend of $3.48 per share, offering a dividend yield of 1.33%. The dividend payout ratio stands at 29.9%, supported by 32 consecutive years of dividend payments. Over the past five years, the company has delivered an annualized dividend growth rate of 9.0%, with its last ex-dividend date on December 31, 2026.

Consensus ratings feature 6 Strong Buys, 1 Buy, 4 Holds, and 1 Sell. The mean price target of $303.73 represents a 15.9% premium over the last close of $262.10. For the fiscal year ending December 31, 2026, analysts anticipate EPS of $11.19 on $4.71B in revenue, followed by $12.50 in EPS and $4.99B in revenue in FY2027. Lincoln Electric beat EPS estimates in each of the past 4 quarters, with its next earnings date scheduled for October 27, 2026.

This page is an AI-written research summary of Lincoln Electric Holdings, Inc. (LECO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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