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Lincoln Electric Holdings, Inc. (LECO)

Fair Value
IndustrialsTools & AccessoriesUnited States

Fundamental

71

Price

$255.96

Market Cap

$14.29B

Part 1 · What the company is worth

Overview

Lincoln Electric makes the equipment and consumable materials used to weld and cut metal: arc welding machines, robotic welding cells, and the wire and electrodes that get used up with every weld. Customers range from individual fabrication shops to large manufacturers building cars, ships and pipelines, and from automotive plants to oxy-fuel and plasma cutting equipment sold through its Harris Products brands.

How it makes money

Revenue comes from selling welding machines and cutting equipment once, and then from repeat sales of the wire, electrodes and gases those machines consume with every use — a razor-and-blades pattern where the installed base of equipment drives recurring consumable demand. Automation and robotic welding systems add a growing, higher-value equipment line on top of that base.

Revenue by segment

Americas Welding64.3%

Welding equipment, consumables and robotic systems sold across North and South America, the company's largest and most profitable segment.

International Welding22%

The same welding equipment and consumables business run across Europe, the Middle East, Africa and Asia Pacific.

The Harris Products Group13.7%

Gas welding, cutting, brazing and soldering equipment and alloys, a distinct product line from arc welding.

Competitive moat

Brand · Narrow

Lincoln Electric has sold welding equipment under its own name for over a century and trains welders on it in its own educational programs, which builds habit and trust among tradespeople who choose equipment based on reliability in the field. The advantage is real but not unbreachable: welding equipment from established rivals performs comparably, and price competition is common outside premium industrial accounts.

What drives demand

Cyclical

Equipment sales follow industrial capital spending — construction, energy, shipbuilding and manufacturing capacity expansion — which slows in recessions and accelerates in upcycles. Consumables demand is steadier because welding continues on equipment already installed, but it too softens when factories run fewer shifts.

Key risks

  • Cyclicality of industrial capital spending — Demand for welding equipment tracks broader industrial and construction activity, and a downturn in end markets such as energy, automotive or heavy fabrication reduces both equipment and consumables volumes.
  • Raw material cost volatility — Steel, copper, nickel and other metals used in welding wire and equipment are subject to price swings that the company may not always be able to pass through to customers quickly.
  • International and currency exposure — Roughly a third of revenue is generated outside the Americas, exposing results to foreign currency translation and to economic and political conditions in the countries where the company operates.
  • Competition on price and technology — The company competes against both established global welding equipment makers and lower-cost regional manufacturers, particularly in commodity consumables where differentiation is harder to sustain.

The case for

Buyers argue that the recurring consumables business cushions the cycle, that the brand and its century of training relationships keep tradespeople loyal, and that growth in automation and robotic welding gives the company a higher-value line to sell into the same installed customer base.

The case against

Sellers fear that equipment sales remain tied to an industrial capital-spending cycle the company cannot control, that raw material cost swings can compress margins between price increases, and that regional low-cost competitors keep pressure on consumables pricing where brand loyalty matters least.

Segment figures from fiscal year 2025Sources: Lincoln Electric Reports Fourth Quarter and Full Year 2025 Results

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

Compare

Generated with artificial intelligence on September 19, 2026, shared with all users

P/E: 25.0Score: 65Market cap: $78.83B

ITW's welding segment (Miller Electric and Hobart) competes head-on with Lincoln Electric on welding machines and consumables, above all in North American general fabrication and heavy industry.

ESAB CorporationESAB

ESAB is the other global broad-line supplier of arc welding equipment, filler metals and cutting systems, selling to the same fabrication, energy and shipbuilding customers worldwide, and it names Lincoln Electric as a competitor in its own annual report.

Fronius International GmbHNot tracked

The Austrian family-owned group builds advanced arc welding power sources and robotic welding cells, competing for the same automotive and automation customers in Europe that Lincoln Electric's International Welding segment targets.

voestalpine Böhler Welding (voestalpine AG)Not tracked

voestalpine's welding division is one of the largest producers of welding consumables and filler metals, competing directly with Lincoln Electric's consumables business in energy, pipeline and heavy-industry applications.

Kemppi OyNot tracked

The privately held Finnish manufacturer sells arc welding equipment and welding-management software to industrial fabricators, the same equipment buyers Lincoln Electric serves in Europe and Asia.

Balance Sheet & Liquidity

Revenue

$4.48B

Trailing 12 months (through 6/30/2026)

Net Income

$554M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$534M

Total Equity

$1.47B

Total Liabilities

$2.31B

Current Ratio

1.98

Interest Coverage

13.06

Debt/EBITDA

1.47

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$290.40

Current Price

$255.96

Margin of Safety

+11.9%

Fair Value Range

$201.08 - $379.72

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$303.73
Discounted cash flow (DCF):$351.83
Earnings multiple (P/E):$216.79
Graham growth formula:$465.46
Earnings power value (EPV):$98.54
Justified P/B:$124.15
Dividend discount (Gordon):$43.96
P/FFO, funds from operations:$181.73
Mid-cycle earnings:$235.48
Revenue multiple:$234.78
Last Earnings Surprise:+2.26%

Valuation Metrics

P/E Ratio

25.57

ROE

35.4%

P/B Ratio

8.98

P/FCF

25.72

Gross Margin

36.0%

ROIC

20.7%

Profitability Radar

Value Creation (Economic Moat)

ROIC

20.7%

WACC

10.6%

ROIC − WACC

+10.1 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • Price CAGR 13.22%
  • ROIC 20.7%
  • Gross margin 36.0%
  • P/FCF 25.72
  • Debt/equity ratio
  • Operating margin 17.1%
  • Positive free cash flow
  • Current ratio
  • Interest coverage
  • Debt/EBITDA
  • Return on tangible assets
  • ROE 37.2%
  • Revenue growth 5Y 9.8%
  • PEG ratio 1.16
  • Earnings quality (operating cash flow / net income) 1.24
  • Share dilution -2.3%
  • Net margin trend 12.4% vs 12.3%
  • Piotroski F-Score 6/9

Failed (7)

  • EPS CAGR 3.82%
  • P/B ratio 8.98
  • CapEx intensity
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings surprise, average 1.1%

Unavailable (1)

  • Dividend payout –

Piotroski F-Score

6/9

Mixed signals: some areas need attention

ROA > 0
Operating cash flow > 0
ΔROA > 0
Cash flow > net income
Leverage ↓
Current ratio ↑
No dilution
Gross margin ↑
Asset turnover ↑

Earnings Quality

1.24

High quality: earnings backed by cash

Share Dilution

-2.3%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Steven B. HedlundPresident, CEO & Chairman58
Mr. Gabriel BrunoExecutive VP, CFO & Treasurer57
Ms. Jennifer I. Ansberry J.D.Executive VP, General Counsel & Secretary51
Ms. Susan C. EdwardsExecutive VP & Chief Human Resources Officer62
Ms. Amanda H. ButlerVice President of Investor Relations & Communications-
Mr. Geoffrey P. AllmanSenior Vice President of Acquisition Integration54
Mr. Gregory D. DoriaExecutive VP & President of International48
Ms. Lisa A. DietrichExecutive VP & Chief Digital Information Officer52
Mr. Kevin J. WhaleyExecutive VP & President of Global Automation52
Ms. Lisa ShapiroVice President of Corporate Controller-

Audit Risk

2

Board Risk

3

Compensation Risk

3

Shareholder Rights Risk

7

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-25

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-30

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-11

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Part 2 · The price and its context

This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Market Reaction Profile

How much LECO moves, measured on its daily prices.

VolatilityMedium

More volatile than 37% of the tracked stocks (90-day volatility).

Volatility 30d
23.2%
Volatility 90d
31.4%
Beta vs S&P 500 (1y)
1.13Correlation 0.49
Max drawdown (12m)
-20.4%
ATR (14d, % of price)
2.86%

Earnings reactions

How LECO moved around its past quarterly results.

Next earnings release

Oct 27, 2026 · In 3 days · Before the open

EPS estimate: 2.81Revenue estimate: $1.2B

What usually happens

  • Over the last 12 releases the stock moved a median of 3.0% the next day, up or down.
  • Next-day moves: up 7, down 5 (out of 12).

Release history

DateWhen EPS est.EPS actualSurprise Gap 1 day5 days
Jul 30, 2026Before the open2.872.93+2.3% +3.2% -3.0% +8.3%
Apr 30, 2026Before the open2.502.50+0.2% -0.8% +2.9% +6.7%
Feb 12, 2026Before the open2.592.65+2.2% -3.4% +1.9% -0.8%
Oct 30, 2025Before the open2.472.47-0.1% -1.9% +0.7% -2.6%
Jul 31, 2025Before the openn/an/an/a+3.0% +9.0% +8.3%
Apr 30, 2025Before the openn/an/an/a-7.6% -4.2% -1.9%
Feb 13, 2025Before the openn/an/an/a+12.3% +10.2% +9.1%
Oct 31, 2024Before the openn/an/an/a+0.8% -2.4% +10.7%
Jul 31, 2024Before the openn/an/an/a-0.2% -2.9% -9.8%
Apr 25, 2024Before the openn/an/an/a-1.9% -4.1% -7.7%
Feb 15, 2024Before the openn/an/an/a+3.4% +7.9% +7.3%
Oct 27, 2023Before the openn/an/an/a+4.7% +2.7% +7.4%

Release dates from SEC 8-K filings.

Updated 10/24/2026

Historical statistics for educational purposes only. They are not forecasts and not investment advice.

Price reaction to the news

Latest news on LECO and what the price did next.

No positive or negative news on LECO has been archived yet.

Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.

Latest News

Recent headlines for LECO.

No recent news for LECO.