Lincoln Electric Reports First Quarter 2026 Results
Source: Morningstar / Business Wire — April 30, 2026
First Quarter 2026 Highlights
- Net sales increase 11.7% to $1,121 million; organic sales increase 7.8%
- Operating income margin of 16.6%; Adjusted operating income margin of 16.9%
- EPS of $2.47; Adjusted EPS of $2.50
- Returned $101 million to shareholders through dividends and share repurchases
Lincoln Electric Holdings, Inc. (Nasdaq: LECO) today reported first quarter 2026 net income of $136.4 million, or diluted earnings per share (EPS) of $2.47, which includes special item after-tax net charges of $2.1 million, or $0.03 EPS. This compares with prior year period net income of $118.5 million, or $2.10 EPS, which included special item after-tax net charges of $3.4 million, or $0.06 EPS. Excluding special items, first quarter 2026 adjusted net income was $138.5 million, or $2.50 adjusted EPS. This compares with adjusted net income of $121.9 million, or $2.16 adjusted EPS, in the prior year period.
First quarter 2026 sales increased 11.7% to $1,121.4 million reflecting a 7.8% increase in organic sales, a 1.6% benefit from acquisitions and a 2.3% favorable foreign exchange. Operating income for the first quarter 2026 was $186.2 million, or 16.6% of sales. This compares with operating income of $164.9 million, or 16.4% of sales, in the prior year period. Excluding special items, adjusted operating income was $189.0 million, or 16.9% of sales, as compared with $169.4 million, or 16.9% of sales, in the prior year period.
"We achieved solid first quarter performance driven by disciplined cost management and improving industrial activity in the Americas," said Steven B. Hedlund, Chairman and Chief Executive Officer. "Our team remains agile as we navigate evolving operating conditions and advance our new long-term RISE strategy. We are well positioned to capitalize on growth opportunities, increase profitability and compound earnings from our strategic initiatives and our capital allocation strategy."
Segment Performance
The Americas Welding segment delivered net sales of $706.2 million with adjusted EBIT of $127.5 million (17.2% of total sales). International Welding contributed $227.0 million in net sales with adjusted EBIT of $22.7 million (9.7% of total sales). The Harris Products Group posted net sales of $188.2 million with adjusted EBIT of $40.8 million (21.2% of total sales).
Balance Sheet & Capital Allocation
As of March 31, 2026, the Company held $298.9 million in cash and cash equivalents. Total debt was $1.31 billion, with total equity of $1.51 billion. The Company returned $101 million to shareholders during the quarter — $44.1 million in dividends ($0.79 per share) and $56.7 million in share repurchases.
Outlook
Lincoln Electric expects high single-digit percentage net sales growth for full year 2026, driven by recent price actions and improving industrial activity. The Company's new RISE strategy is expected to drive increased profitability and compound earnings going forward.
About Lincoln Electric
Lincoln Electric is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. The Company's innovative solutions enable higher quality and productivity across a variety of processes including welding, cutting, brazing, machining, process automation, and field repair. Headquartered in Cleveland, Ohio, Lincoln Electric operates 71 manufacturing and automation facilities across 20 countries and serves customers in over 160 countries.