10-Q · April 30, 2026
Lincoln Electric Holdings, Inc. reported Q1 2026 results with revenues of $1.121 billion and an EPS of $2.47, surpassing both consensus estimates and demonstrating an 11.7% growth in revenue year-over-year. The…
Earnings analysis · 10-Q
LECO earnings analysis
Filed October 27, 2026 · Our reading of the company's report
The latest report
Lincoln Electric delivered strong top-line growth, with Q3 revenue of $1,221.3 million, up 15.1% year over year and above consensus. Profitability was mixed: operating margin improved to 17.3%, but gross margin fell to…
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Lincoln Electric delivered strong top-line growth, with Q3 revenue of $1,221.3 million, up 15.1% year over year and above consensus. Profitability was mixed: operating margin improved to 17.3%, but gross margin fell to 34.8% and GAAP EPS of $2.63 missed the $2.81 estimate and declined sequentially from $2.88. Free cash flow remained positive at $174.538 million, while the filing provided no quantitative forward guidance; asbestos claims declined to approximately 367 plaintiffs.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $2.63
What stood out
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Revenue grew 15.1% year over year
Third-quarter revenue increased 15.1% year over year to $1,221.3 million and exceeded the $1,172.6 million consensus estimate.
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Operating margin improved year over year
Operating margin was 17.3%, up from 16.6% in Q3 2025, despite gross margin declining to 34.8% from 36.7%.
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Positive free cash flow supported buybacks
Free cash flow was $174.538 million in the quarter, supporting shareholder returns; the company repurchased 373,193 shares at an average price of $266.34.
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Substantial buyback authorization remains
As of September 30, 2026, the company had 4,252,778 shares remaining available for repurchase under its authorized programs.
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Asbestos claims declined materially
Asbestos-related claims declined to approximately 367 plaintiffs, a net decrease of 334 claims from the previously reported level.
What to watch
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GAAP EPS missed consensus
GAAP diluted EPS was $2.63, below the $2.81 consensus estimate and down from $2.88 in Q2 2026, indicating sequential earnings pressure.
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Gross-margin compression
Gross margin contracted to 34.8% from 36.8% in Q2 2026 and 36.7% in Q3 2025, a 2.0-point sequential and 1.9-point year-over-year decline.
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Ongoing asbestos litigation exposure
The company remained a co-defendant in asbestos cases involving approximately 367 plaintiffs as of September 30, 2026; claimants seek compensatory and punitive damages, generally for unspecified amounts.
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Continued capital allocation to buybacks
The company repurchased 373,193 shares during Q3 2026 at an average price of $266.34, while 4,252,778 shares remained authorized for future repurchases; continued buybacks may compete with other uses of capital.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance; no change to prior outlook can be determined from the filing.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.