Lincoln Electric Holdings Stock Earnings Reports

Lincoln Electric reported solid Q3 2025 results: consolidated sales rose ~8% (organic +5.6%) driven by pricing, M&A and resilient short‑cycle demand in Americas Welding and Harris Products Group. Adjusted EPS was $2.47, up 15% year‑over‑year, gross margin expanded (36.7%) and adjusted operating margin was 17.4%. The company generated strong cash flow (management cited record quarterly cash conversion of 149% and year‑to‑date cash conversion ~119%) and improved adjusted ROIC to 22.2%. Key positives: pricing actions are holding, permanent cost savings ($8M incremental this quarter, several million saved in segments) and improving consumables and short‑cycle equipment volumes in the Americas. Key headwinds: automation (long‑cycle projects) remains depressed year‑over‑year due to deferred capital spending in automotive and heavy industry and Europe demand is sluggish. Management said automation order momentum improved in late September/October and they expect Q4 automation sales to be roughly 15%–20% higher sequentially (still below prior year), with the meaningful benefit to margins and revenue expected more into 2026 as long‑cycle projects ramp. Capital allocation highlights: completed Alloy Steel acquisition, invested $136M in the quarter, returned $94M to shareholders (including $53M buybacks), and announced a 30th consecutive dividend increase of 5.3% beginning next year. Management is maintaining full‑year top‑line and margin assumptions, increasing interest expense guidance modestly (to low $50M) due to recent borrowings, and increasing cash conversion guidance to above 100%.