Lincoln Electric Holdings Inc
NASDAQ:LECO
Lincoln Electric Holdings Inc
Lincoln Electric Holdings Inc. has carved out a prominent niche in the realm of welding products and related manufacturing solutions. Headquartered in Cleveland, Ohio, this stalwart in the industry traces its roots back to 1895 when John C. Lincoln, whose inventive spirit laid the foundation for a company that would revolutionize the crafting of metal. Over the years, Lincoln Electric has excelled by focusing on creating high-quality welding equipment, consumables, and automation solutions, catering to diverse industries including automotive, aerospace, and construction. It's a company that thrives on innovation and relentless optimization of its manufacturing processes, ensuring that its products consistently meet the demanding needs of clients across the globe.
At the heart of Lincoln Electric’s business model is its commitment to operational excellence and a unique compensation system that aligns employee incentives with company performance—a principle inspired by the founders' forward-thinking approach. This distinctive culture, encapsulated in their Employee Incentive Plan and its famous profit-sharing program, plays a crucial role in driving productivity and maintaining a loyal workforce. By investing in research and development, Lincoln Electric stays on the cutting edge, offering technologically advanced solutions that bolster efficiency and precision in welding tasks. The resulting revenue streams from equipment sales, service contracts, and a wide array of consumables feed into a robust financial structure, positioning Lincoln Electric as a leader and innovator in its field.
Lincoln Electric Holdings Inc. has carved out a prominent niche in the realm of welding products and related manufacturing solutions. Headquartered in Cleveland, Ohio, this stalwart in the industry traces its roots back to 1895 when John C. Lincoln, whose inventive spirit laid the foundation for a company that would revolutionize the crafting of metal. Over the years, Lincoln Electric has excelled by focusing on creating high-quality welding equipment, consumables, and automation solutions, catering to diverse industries including automotive, aerospace, and construction. It's a company that thrives on innovation and relentless optimization of its manufacturing processes, ensuring that its products consistently meet the demanding needs of clients across the globe.
At the heart of Lincoln Electric’s business model is its commitment to operational excellence and a unique compensation system that aligns employee incentives with company performance—a principle inspired by the founders' forward-thinking approach. This distinctive culture, encapsulated in their Employee Incentive Plan and its famous profit-sharing program, plays a crucial role in driving productivity and maintaining a loyal workforce. By investing in research and development, Lincoln Electric stays on the cutting edge, offering technologically advanced solutions that bolster efficiency and precision in welding tasks. The resulting revenue streams from equipment sales, service contracts, and a wide array of consumables feed into a robust financial structure, positioning Lincoln Electric as a leader and innovator in its field.
Record Results: Lincoln Electric posted record 2025 sales of $4.2 billion, up 6%, and record adjusted EPS of $9.87, despite tough end markets.
Margins & Cash Flow: Maintained last year’s record adjusted operating margin, generated strong cash flows, and delivered record cash returns to shareholders.
Automation Headwind: Automation sales declined 11% in Q4, but strong order rates and backlog signal expected growth in the second half of 2026.
2026 Outlook: Management expects mid-single-digit sales growth in 2026, with growth weighted to the second half, and a modest improvement in operating margin.
RISE Strategy & 2030 Targets: New RISE strategy targets sales above $6 billion and a 300 basis point improvement in average operating margin by 2030, aiming for over $3.7 billion in cash flows and mid-teens EPS CAGR.
Segment Performance: Americas Welding led with strong pricing, International saw growth from acquisitions and FX but lower volumes, and Harris Products Group benefited from pricing but faced HVAC sector weakness.
Balanced Capital Allocation: Company will continue to balance growth investments and shareholder returns, maintain elevated capital spending, and target top quartile ROIC.
