Lincoln Electric (LECO) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly net sales of $1.121 billion, up 11.7%–12% year-over-year, with organic sales growth of 7.8%–8% and strong pricing, FX, and acquisition contributions.

• Adjusted EPS reached a record $2.50, up 15.7%–16% year-over-year; reported EPS up 17.6% to $2.47.

• Net income rose 15.1% to $136.4 million, with adjusted operating income margin steady at 16.9%.

• Launched the RISE strategy and new customer service initiatives, driving productivity gains and early wins.

• Maintained financial discipline, strong cash flows, and a solid balance sheet while investing in long-term growth.

Financial highlights

• Q1 net sales rose 11.7%–12% to $1.121 billion, driven by 10% higher price, 2% FX, and 1.6% from acquisition, offset by lower volumes.

• Gross profit increased to $399.1 million, with gross margin at 35.6%, down 80 bps year-over-year due to lower volumes and LIFO charge.

• Adjusted operating income up 11.5% to $189 million; adjusted operating margin steady at 16.9%.

• Cash flow from operations was $102 million, down from $185.7 million prior year due to higher working capital and inventory build.

• $101 million returned to shareholders via dividends and share repurchases.

Outlook and guidance

• Raised net sales growth outlook to high single digits for 2026, with organic mix ~75% price and ~25% volume.

• Price/cost neutrality targeted by Q3 as new price actions take effect; adjusted operating income margin expected to improve slightly.

• Capital expenditures for 2026 expected at $110–130 million, focused on capacity and operational effectiveness.

• Management remains focused on disciplined cost management and leveraging the RISE strategy for growth.

• Americas Welding volumes expected to inflect to growth in Q2, with further improvement in the second half.