LECO Nasdaq Russell 1000 Earnings call
Lincoln Electric (LECO) · Q2 2026 results and valuation
Share price: $288.14 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income up 16.2% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+16.2%
Net income vs Q1 2026
Outlook given
Net income 158.5M vs 136.4M
Revenue +8.8%
Against the same quarter last year (Q2 2025) it is +10.5%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 77% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Figure
Four out of five end markets achieved organic growth in the quarter.
Valuation
Is Lincoln Electric undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.0% growth a year (3-year revenue growth), the model's fair value is $140.94 a share — the stock trades 104% above it. Today's price assumes 13.3% growth a year.
Current price
$288.14
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+13.3% for 10 yrs
Fair value / share
$140.94
Buy below
$105.71
Price vs fair value
Overvalued 104%
Price vs buy-below price
Overvalued 173%
Read between the lines
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Key theme
Growth accelerated within standard welding equipment, which was identified as the key momentum for the company this quarter.
Source quote
“We saw the key thing is the momentum that was accelerating within standard welding equipment.”
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Guidance
Lincoln Electric expects its quarterly SG&A run rate to be in the $210 million to $215 million range and corporate expense at $1 million to $2 million per quarter…
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Guidance
Americas organic growth will be led by higher volumes alongside low to mid-single-digit pricing through year-end.
Source quote
“We expect Americas to report low to mid-single-digit percent price for the balance of the year and the mix of organic growth will be led by higher volumes...”
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Fading
New price actions were announced to secure a neutral price/cost target, though a 10% price increase did not fully offset inflation.
Source quote
“To ensure we achieve our neutral price/cost target this year, we have already announced new price actions across our welding... While we targeted a slight margin improvement, our 10% higher price did not fully offset inflation in the quarter. Cash flows, while seasonally lower, were further affected by a temporary increase in inventory levels we put in place to maintain high fill rates and service levels while we pursue our Spotlight initiative and...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Equipment organic sales growth in Americas Welding accelerated high teens percent in the quarter and consumables grew high single-digit percent.”
“Gross profit increased approximately 11% on higher sales and an improved cost profile in the quarter.”
“Margin declined 210 basis points to 10.6% as the benefits from Alloy Steel and the narrowing of price/cost headwinds were offset by lower volumes.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.22B | 1.12B | +8.8% | 1.09B | +12.0% |
| Gross profit | 449.0M | 399.1M | +12.5% | 405.5M | +10.7% |
| Operating income | 220.6M | 186.2M | +18.5% | 192.1M | +14.8% |
| Net income | 158.5M | 136.4M | +16.2% | 143.4M | +10.5% |
| EPS | 2.88 | 2.47 | +16.6% | 2.56 | +12.5% |
| P/E today 27.5 | 26.6 | 25.7 | +0.9 | 23.3 | +3.3 |
Topics
Most discussed now
- New Lincoln Electric justs need to stay real close to it.
- Consolidated organic sales increased 10% with volume growth across all 3 product areas.
- Both equipment and automation volumes increased mid-single-digit percent, resulting in automation sales of $229 million in the quarter.
- Lincoln Electric was encouraged to see capital spending improve in the second quarter.
- Gross profit increased approximately 11% on higher sales and an improved cost profile in the quarter.
Faded since Q1 2026
- Dropped Lincoln Electric launched a new center-led process innovation function in welding consumables to accelerate its speed to market.
- Dropped Lincoln Electric was pleased to see a little bit of an uptick this quarter versus the prior quarters, but it is concerned...
- Fading Lincoln Electric commissioned a new automated manufacturing line in one of its Harris facilities that triples the line's productivity...
- Fading Launch of Lincoln Electric's elite customer program as part of its enterprise-wide Spotlight initiative, which raises the bar for customer…
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K