| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 39 | 25.2x | 17.8x | Bottom tier | |
Growth | 44 | 9.3% | 7.1% | Around median | |
Quality | 81 | 22.1% | 4.5% | Top tier | |
Safety | 77 | 1.1x | 2.6x | Top tier | |
Capital Return | 60 | 1.23% | 2.12% | Around median | |
Momentum | 47 | 13.2% | 2.9% | Around median | |
Sentiment | 63 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Lincoln Electric manufactures welding solutions, equipment, consumables, and automation systems, and divides its operations among Americas Welding, International Welding, and Harris Products Group. The company benefits from capital spending on standard welding equipment, automation cells, and larger projects, while consumables sales are linked to industrial production levels; in fiscal Q2 2026, automation sales reached $229 million, and equipment and automation volumes increased at mid-single-digit rates, compared with low-single-digit growth for consumables.
In fiscal Q2 2026, sales increased 12% to a record $1.220 billion, driven by a price increase of approximately 8%, volume growth of 2%, a 1.5% contribution from the Alloy Steel acquisition, and a positive 0.4% impact from currency translation. Gross profit according to EDGAR data was approximately $449.0 million, net income was $158.5 million, and diluted earnings per share were $2.88, while adjusted earnings per share increased 13% to $2.93. Gross margin declined 50 basis points to 36.8%, but adjusted operating income margin increased 50 basis points to a record 18.4%, with an incremental margin of 22%.
Americas Welding was the performance driver in fiscal Q2 2026; its sales increased approximately 11% and its adjusted EBIT margin reached 19.7%, compared with 4.5% sales growth for International Welding and a 210-basis-point decline in its margin to 10.6%. Harris Products Group increased its sales 27% due to a 34% price increase, and its adjusted EBIT margin reached 20.4%, although management expects it to return to a range of 18%–19% in the second half of fiscal 2026. On a last-twelve-month basis in 2026, the company recorded revenue of $4.5 billion, net income of $553.6 million, and earnings per share of approximately $10.05.
The analyst consensus on LECO is Neutral, with an average price target of $303.6 and a wide range of $275 to $340, while Morgan Stanley raised its target to $283 following the fiscal Q2 2026 results. The average target is close to the upper end of the 52-week range of $310, reflecting a high expectation that the recovery in the Americas will continue, but the breadth of the target range keeps the risks of European weakness and margin declines at International Welding and Harris within the valuation equation. The data does not include a valid price-to-earnings multiple that can be used as an additional anchor.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Sales increased 12% to $1.220 billion, driven by a price increase of approximately 8%, volume growth of 2%, and a 1.5% contribution from the Alloy Steel acquisition. Americas Welding led the improvement with 7% volume growth, while organic general fabrication sales growth exceeded 30%. Adjusted earnings per share increased 13% to $2.93, while adjusted operating income margin reached 18.4%.
Automation sales reached $229 million in fiscal Q2 2026, and volumes increased at a mid-single-digit rate. The company has a record backlog, with improving demand for pre-engineered cells and collaborative robots and accelerating quotation activity related to light-vehicle platforms for 2027 and beyond. Management expects annual automation sales growth within a high-single-digit to low-double-digit range, with 80% of this activity located in the Americas.
Management raised its net sales growth assumption to a low-double-digit rate after achieving low-double-digit growth since the beginning of fiscal 2026. It also expects organic growth between a high-single-digit and low-double-digit rate, with a mix consisting of approximately one-third volume and two-thirds price. The company is targeting a mid-twenties incremental margin for the second half, with price-cost neutrality in Q3 and Q4.
Automated analysis for informational purposes only — not investment advice.
Pressures are concentrated in International Welding, where volumes contracted by approximately 5% in fiscal Q2 2026 and adjusted EBIT margin declined to 10.6%. Management expects the segment's full-year margin to be between 10% and 11% due to weak EMEA demand and operational efficiency challenges, while the Middle East conflict could cause a negative impact of $6–7 million per quarter. In Harris Products Group, the company expects the margin to decline from 20.4% in Q2 to 18%–19% in the second half after the tariff refund benefit ends.
Net income according to EDGAR was approximately $158.5 million and diluted earnings per share were $2.88 in fiscal Q2 2026. The company generated record operating cash flow of $254 million, equivalent to cash conversion of 138% during the quarter and 95% since the beginning of the fiscal year. It also spent $31 million on capital expenditures, returned $120 million to shareholders, and achieved an adjusted return on invested capital of 23%.
The analyst consensus is Neutral, and the average price target is $303.6, with a low target of $275 and a high target of $340. Morgan Stanley raised its target to $283 after the announcement of the fiscal Q2 2026 results, but this target remains below the consensus average. The consensus average is close to the top of the 52-week range of $310, making continued volume growth and margin improvement essential factors in justifying higher valuations.
