Lincoln Electric Organic Sales Growth Reaccelerates to 14.5%

The Tip Desk · November 8, 2026 · 3 min read

Third-quarter net sales reached $1.22 billion as organic volume growth lifted adjusted EPS to a record $2.98.

Lincoln Electric Holdings (LECO), the Cleveland-based industrial machinery and technology company, reported third-quarter 2026 net sales of $1,221.3 million, up 15.1% from a year earlier, as organic sales rose 14.5% on volume growth.

That organic pace was faster than the 10.1% organic increase in the second quarter and the 7.8% in the first quarter. Total sales growth also stepped up to 15.1% from 12.0% and 11.7% in those earlier periods. Acquisitions added 0.5% and foreign exchange 0.1%.

Net income was $144.3 million, or $2.63 a share, including special-item after-tax net charges of $19.3 million, or $0.35 a share. A year earlier, net income was $122.6 million, or $2.21 a share, with $14.6 million of special-item charges. Excluding those items, adjusted net income was $163.6 million, or $2.98 a share, a record, versus $137.2 million, or $2.47 a share, a year earlier.

Operating income was $211.4 million, or 17.3% of sales, compared with $176.7 million, or 16.6% of sales, a year earlier. Adjusted operating income was $220.0 million, or 18.0% of sales, versus $184.6 million, or 17.4% of sales. That adjusted margin was below the 18.4% recorded in the second quarter.

Gross profit was $425.0 million, or 34.8% of sales, versus $389.3 million, or 36.7% of sales, a year earlier. Cost of goods sold rose 18.5%. Selling, general and administrative expenses were $205.8 million, or 16.9% of sales. Rationalization and asset impairment net charges were $7.9 million, related primarily to Americas Welding and International Welding. The effective tax rate was 27.8%, including about $13.0 million of income tax expense on certain foreign earnings the company said may be repatriated.

Americas Welding net sales were $801.3 million, up from $691.8 million a year earlier. International Welding sales were $226.9 million. The Harris Products Group sales were $193.1 million. Americas Welding adjusted EBIT margin was 20.1%, International Welding 10.3%, and The Harris Products Group 17.3%.

Chairman and Chief Executive Officer Steven B. Hedlund said the company achieved strong results led by higher volumes, an increase in the adjusted operating income margin, and record adjusted earnings per share. He said the global team was focused on supporting customers, managing inflationary headwinds, and accelerating RISE strategy initiatives.

Cash flows from operations were $215.8 million, with 107% cash conversion, down from $254 million and 138% conversion in the second quarter. Capital expenditures were $41.2 million. The company returned $143 million to shareholders through dividends and share repurchases. Cash and cash equivalents were $283.2 million at September 30.

The board declared a quarterly cash dividend of $0.87 a share, a 10.1% increase from the prior quarterly dividend, payable January 15, 2027.