LECO

Lincoln Electric Holdings, Inc. LECO shares have gained 8% since it reported second-quarter 2026 results on July 30.  Adjusted earnings came in at $2.93 per share, up 12.7% year over year. The figure surpassed the Zacks Consensus Estimate of $2.81 by 4.27%. Including one-time items, the bottom line was $2.88 per share compared with $2.56 in the year-ago quarter. Revenues increased 12% to a record $1.22 billion and beat the consensus estimate of $1.17 billion by 4.45%. Results benefited from 10.1% organic sales growth, with volumes contributing 2.4% and pricing at 7.7%. Acquisitions contributed 1.5%, primarily reflecting the Alloy Steel acquisition, and favorable foreign currency translation added 0.4%. Lincoln Electric Holdings, Inc. price-consensus-eps-surprise-chart | Lincoln Electric Holdings, Inc. Quote Consumables sales increased in the low-teens percentage range, equipment sales rose by a high-single-digit percentage and automation sales advanced by a mid-single-digit percentage. Four of the company’s five major end markets grew, led by a mid-30% increase in general fabrication. However, transportation declined by a mid-single-digit percentage. The cost of goods sold increased 12.8% year over year to $770.7 million. Gross profit rose 10.7% to $449 million, while the gross margin contracted 50 basis points to 36.8%. Selling, general and administrative expenses increased 6.6% to $224.9 million. However, SG&A expenses, as a percentage of sales, declined 100 basis points to 18.4%. Adjusted operating income climbed 14.9% to $224.1 million, with the adjusted operating margin expanding 50 basis points to a record 18.4%. Americas Welding revenues increased 11.2% year over year to $774.4 million. Volume growth of 7.1% reflected gains across all product areas, led by accelerated capital spending. Pricing contributed 3.7%, while currency movements provided a 0.4% benefit. We expected the segment’s net sales to be $754 million in the quarter. Adjusted EBIT rose 14.6% to $158.1 million. The segment’s adjusted EBIT margin improved 110 basis points to 19.7%, aided by operating leverage from higher volumes and a narrower price-cost headwind. Tariff refunds also supported profitability. Our prediction for the segment’s adjusted operating income was $148 million. International Welding sales rose 4.5% to $243.3 million, as a 7% acquisition contribution and modest pricing and currency benefits offset a 4.7% volume decline. Organic sales were hurt by slowing demand in Europe, the Middle East and Africa, including a $2 million impact from the Middle East conflict. We expected the segment’s net sales to be $236 million in the quarter. Adjusted EBIT declined 12.9% to $26.6 million, while the adjusted EBIT margin contracted 210 basis points to 10.6%. Lower EMEA volumes weighed on the segment’s profitability despite growth in Asia Pacific and contributions from Alloy Steel. We predicted an adjusted operating profit of $28.8 million. The Harris Products Group’s sales increased 26.9% to $201.9 million. A 34.2% pricing benefit, reflecting higher year-over-year metal costs, primarily silver, more than offset an 8.2% volume decline. Volumes were down 8.2% as it faced difficult year-over-year comparisons in HVAC and the retail channel. Our projection for the segment’s net sales was $171 million. Adjusted EBIT advanced 32.5% to $42.3 million. The adjusted EBIT margin expanded 100 basis points to 20.4%, supported by SG&A leverage and a tariff refund. Our prediction for the segment’s adjusted operating income was $34.3 million. Cash flow from operations reached a record $253.8 million, up from $143.8 million a year earlier. Free cash flow totaled $222.3 million, resulting in cash conversion of 138%. LECO returned $120 million to shareholders, including $43.4 million in dividends and $76.1 million in share repurchases. Cash and cash equivalents were $242.4 million at quarter-end, while total debt declined to $1.15 billion from $1.29 billion at the end of 2025. Lincoln Electric raised its 2026 net sales growth assumption to the low-double-digit percentage range from the high-single-digit range. Management expects one-third of organic growth to come from volume and two-thirds from pricing. The company anticipates neutral price-cost conditions and a mid-20% incremental adjusted operating margin in the second half. It also projects capital expenditures of $110-$130 million, a low-to-mid-20% tax rate and full-year cash conversion of 100% for the full year. Lincoln Electric’s shares have gained 14.7% in the past year compared with the industry’s 12.3% growth. Image Source: Zacks Investment Research LECO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Stanley Black & Decker, Inc. SWK reported adjusted earnings of $1.57 per share for the second quarter of 2026, which beat the Zacks Consensus Estimate of $1.20 by 30.8%. The bottom line increased from adjusted earnings of $1.08 per share reported in the year-ago quarter. Stanley Black & Decker’s net sales of $3.96 billion surpassed the consensus estimate of $3.93 billion by 0.7% and increased 0.4% year over year. Higher organic sales, improved gross margins and strong cash generation supported the quarter. Stanley Black & Decker’s also raised its full-year adjusted earnings guidance to $5.20-$5.80 per share, up from the earlier outlook of $4.90-$5.70. Enerpac EPAC came out with quarterly earnings of 60 cents per share in the third quarter of fiscal 2026 (ended May 31, 2026), beating the Zacks Consensus Estimate of 49 cents per share. This compares with earnings of 51 cents per share a year ago. Enerpac posted revenues of $167.6 million for the quarter, surpassing the Zacks Consensus Estimate of $165 million. This marks a 6% increase from year-ago revenues of $158.7 million. Enerpac updated its earnings per share projection for fiscal 2026 to $1.84-$1.89 from the prior stated $1.85-$1.92. Dover Corporation DOV reported second-quarter 2026 adjusted earnings of $2.74 per share, up 12% year over year and beating the Zacks Consensus Estimate of $2.72. The improvement reflected broad-based revenue growth, stronger segmental margins and operational execution that more than offset input-cost inflation. Dover’s revenues rose 7% year over year to $2.19 billion but missed the consensus estimate of $2.21 billion. Organic revenues increased 4.8% in the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report Dover Corporation (DOV) : Free Stock Analysis Report Enerpac Tool Group Corp. (EPAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Lincoln Electric Holdings (LECO) reported revenue of $1.22 billion, up 12% over the same period last year. EPS came in at $2.93, compared to $2.60 in the year-ago quarter. The reported revenue represents a surprise of +4.45% over the Zacks Consensus Estimate of $1.17 billion. With the consensus EPS estimate being $2.81, the EPS surprise was +4.27%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Lincoln Electric performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total Sales- The Harris Products Group: $206.91 million compared to the $189.86 million average estimate based on five analysts. The reported number represents a change of +26% year over year. Total Sales- International Welding: $250.86 million versus $245.02 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +4.3% change. Total Sales- Americas Welding: $803.34 million versus $788.8 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.5% change. Net Sales- International Welding: $243.29 million versus $238.91 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +4.5% change. Net Sales- Americas Welding: $774.44 million versus the four-analyst average estimate of $750.78 million. The reported number represents a year-over-year change of +11.2%. Total Sales- Corporate and Elimination: $-41.44 million compared to the $-57.2 million average estimate based on four analysts. The reported number represents a change of -26.2% year over year. Net Sales- The Harris Products Group: $201.93 million versus the four-analyst average estimate of $176.24 million. The reported number represents a year-over-year change of +26.9%. Inter-segment sales- The Harris Products Group: $4.97 million versus $5.21 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -2.7% change. Inter-segment sales- Americas Welding: $28.9 million versus the three-analyst average estimate of $43.09 million. The reported number represents a year-over-year change of -33.4%. Inter-segment sales- International Welding: $7.56 million versus $7.8 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1% change. Adjusted EBIT- Americas Welding: $158.1 million compared to the $147.67 million average estimate based on five analysts. Adjusted EBIT- International Welding: $26.6 million versus $27.62 million estimated by five analysts on average. View all Key Company Metrics for Lincoln Electric here>>> Shares of Lincoln Electric have remained unchanged over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Lincoln Electric Holdings, Inc.? Here are five stocks we like better. Second-quarter results exceeded expectations: Sales rose 12% to $1.22 billion, adjusted EPS increased 13% to $2.93, and operating cash flow reached a record $254 million. Organic sales grew 10%, marking a return to volume growth after nine consecutive quarters of decline. Americas performance led the recovery: Americas Welding sales increased about 11%, supported by stronger equipment demand, customer capital spending, and industrial activity. In contrast, International Welding volumes and margins declined amid weak European conditions and Middle East-related disruptions. Lincoln Electric raised its full-year outlook: The company now expects low-double-digit net sales growth and high-single-digit to low-double-digit organic growth, with improving margins and a neutral price-cost position anticipated in the second half. Key risks include commodity costs, trade-policy changes, and the Middle East conflict. Lincoln Electric (NASDAQ:LECO) reported second-quarter results marked by a return to volume growth after nine quarters of compression, supported by stronger demand in its Americas Welding business, higher pricing and improved capital spending by customers. Chairman and Chief Executive Officer Steve Hedlund said consolidated organic sales increased 10%, with growth across equipment, automation and consumables. The company cited stronger activity in the Americas and parts of Asia-Pacific, including China, India and Vietnam, while Europe remained affected by weak industrial conditions. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “Second quarter marked a solid inflection to volume growth in the business after nine quarters of compression,” Hedlund said. The company also reported record sales, adjusted operating income margin, adjusted earnings per share and operating cash flow for the quarter. Second-quarter sales increased 12% to $1.22 billion. Chief Financial Officer Gabe Bruno said the increase reflected approximately 8% higher pricing, 2% volume growth, a 1.5% contribution from the Alloy Steel acquisition and a 40-basis-point benefit from foreign exchange translation. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Gross profit rose about 11%, though gross margin declined 50 basis points to 36.8%. Bruno attributed the margin compression to persistent inflation, unfavorable sales mix and a $4.2 million LIFO charge, which offset the benefits of pricing actions and a tariff refund. The company now expects LIFO to be a $10 million headwind for the full year. Reported and adjusted operating income each increased 15%. Adjusted operating margin improved 50 basis points to 18.4%, with a 22% incremental margin. Diluted earnings per share rose 12.5% to $2.88, while adjusted EPS increased 13% to $2.93. Foreign exchange translation reduced EPS by $0.01, while share repurchases added $0.05, Bruno said. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Lincoln Electric generated record operating cash flow of $254 million in the quarter, resulting in cash conversion of 138%. Year-to-date cash conversion was 95%, and management said it remains on track to meet its 100% full-year target. The company spent $31 million on capital expenditures and returned $120 million to shareholders through dividends and share repurchases. Adjusted return on invested capital reached 23%. Americas Welding sales rose approximately 11%, driven by 7% volume growth, about 4% pricing and favorable foreign exchange. Equipment volumes grew at a low-double-digit rate, while Americas Welding equipment organic sales growth accelerated to the high teens. Consumables in the segment grew at a high-single-digit rate. Americas Welding adjusted EBIT increased 15% to $158 million, and its adjusted EBIT margin improved 110 basis points to 19.7%. Lincoln Electric expects the segment to operate within a 19% to 20% EBIT margin range for the remainder of 2026. Management said industrial gas distribution demand remained strong, while direct original equipment manufacturer and rental customers increased capital spending. On a consolidated basis, general fabrication sales grew more than 30%, aided by improved U.S. industrial production and commercial HVAC demand at Harris Products Group. Heavy industries and non-residential structural steel each grew at mid-single-digit rates, while energy demand held up well, including nearly 30% growth in oil and gas sales within Americas Welding. Transportation sales continued to decline at a mid-single-digit rate, although management said declines narrowed as equipment systems demand improved. The company expects transportation to improve during the remainder of the year as automation projects advance and customers invest in new lightweight vehicle platforms. International Welding sales increased 4.5%, supported by the Alloy Steel acquisition, pricing and favorable currency translation. However, volumes declined about 5% as demand slowed in Europe following first-quarter customer buy-ahead activity and continued weak industrial production. International Welding adjusted EBIT fell 13% to $27 million, with margin declining 210 basis points to 10.6%. Lincoln Electric expects the segment’s full-year EBIT margin to be in a 10% to 11% range as European demand and operating efficiency remain challenged. The company said the Middle East created a $2 million to $3 million consolidated sales headwind in the second quarter during a ceasefire. With fighting resuming, management expects the conflict to create a $6 million to $7 million quarterly sales headwind in International Welding, an improvement from its prior expectation of an $8 million to $10 million impact. Harris Products Group sales increased 27%, led by 34% higher pricing. Adjusted EBIT rose about 33% to $42 million, and adjusted EBIT margin improved 100 basis points to 20.4%, aided by SG&A leverage and a tariff refund. Management expects Harris to operate at an 18% to 19% margin in the second half at current metal prices. Lincoln Electric raised its full-year net sales growth outlook to a low-double-digit percentage rate. Organic sales are now expected to grow at a high-single-digit to low-double-digit rate, composed of roughly one-third volume growth and two-thirds price and mix. Bruno said the company expects to achieve a neutral price-cost position in the second half after reporting a 10-basis-point price-cost headwind in the second quarter. Lincoln Electric expects higher adjusted operating margin than in the prior year and a mid-20% incremental margin through the balance of 2026. Hedlund said six consecutive months of favorable macroeconomic data in the Americas, strong order rates and a record automation backlog support management’s confidence in an industrial recovery. He added that customers are showing greater willingness to invest in productivity, capacity and automation, particularly in general industries. Management identified commodity-cost volatility, trade-policy changes and the duration of the Middle East conflict as risks to its outlook. Lincoln Electric Holdings, Inc (NASDAQ: LECO) is a global manufacturer and distributor of welding products, robotic welding systems, plasma and oxyfuel cutting equipment, and surface treatment systems. The company's portfolio encompasses welding consumables such as electrodes and wires, as well as power sources, torches, and automated welding cells. Lincoln Electric also offers software solutions and training services designed to optimize productivity and quality in fabrication and manufacturing operations. Founded in 1895 by John C. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Lincoln Electric Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Second Quarter 2026 Highlights Net sales increase 12.0% to a record $1,220 million; organic sales increase 10.1% Operating income margin of 18.1%; adjusted operating income margin of 18.4% EPS of $2.88; adjusted EPS of $2.93 Cash flows from operations of $254 million; 138% cash conversion Returned $120 million to shareholders through dividends and share repurchases CLEVELAND, July 30, 2026--(BUSINESS WIRE)--Lincoln Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today reported second quarter 2026 net income of $158.5 million, or diluted earnings per share (EPS) of $2.88, which includes special item after-tax net charges of $2.7 million, or $0.05 EPS. This compares with prior year period net income of $143.4 million, or $2.56 EPS, which included special item after-tax net charges of $2.2 million, or $0.04 EPS. Excluding special items, second quarter 2026 adjusted net income was $161.2 million, or $2.93 adjusted EPS. This compares with adjusted net income of $145.6 million, or $2.60 adjusted EPS, in the prior year period. Second quarter 2026 sales increased 12.0% to $1,219.7 million reflecting a 10.1% increase in organic sales, a 1.5% benefit from acquisitions and a 0.4% favorable foreign exchange. Operating income for the second quarter 2026 was $220.6 million, or 18.1% of sales. This compares with operating income of $192.1 million, or 17.6% of sales, in the prior year period. Excluding special items, adjusted operating income was $224.1 million, or 18.4% of sales, as compared with $195.1 million, or 17.9% of sales, in the prior year period. "We achieved record second quarter results across key metrics including sales, operating income profitability, earnings, and cash generation," stated Steven B. Hedlund, Chairman and Chief Executive Officer. "We are encouraged by improved demand and capital spending in the Americas and Asia Pacific, and strong execution of our RISE Strategy initiatives positions us well to generate superior returns for our shareholders." Six Month 2026 Summary Net income for the six months ended June 30, 2026 was $294.9 million, or $5.34 EPS, which includes special item after-tax net charges of $4.8 million, or $0.09 EPS. This compares with prior year period net income of $261.9 million, or $4.66 EPS, which included special item after-tax net charges of $5.6 million, or $0.10 EPS. Excluding special items, adjusted net income for the six months ended June 30, 2026 was $299.7 million, or $5.43 EPS. This compares with adjusted net income of $267.5 million, or $4.76 adjusted EPS, in the prior year period. Sales increased 11.9% to $2,341.1 million in the six months ended June 30, 2026 primarily reflecting a 9.0% increase in organic sales, a 1.5% benefit from acquisitions, and 1.4% favorable foreign exchange. Operating income for the six months ended June 30, 2026 was $406.8 million, or 17.4% of sales. This compares with operating income of $357.1 million, or 17.1% of sales, in the prior year period. Excluding special items, adjusted operating income was $413.1 million, or 17.6% of sales, as compared with $364.6 million, or 17.4% of sales, in the prior year period. Webcast Information This earnings release and supplemental information is available under the Investor Relations section of our website. A call to discuss second quarter 2026 financial results will be webcast live today, July 30, 2026, at 10:00 a.m., Eastern Time. Participants can access the call in listen-only mode here and at https://ir.lincolnelectric.com. To participate via telephone, please dial (888) 440-4368 (domestic) or (646) 960-0856 (international) and use confirmation code 6709091. A replay of the earnings call will be available on the Company's website later today. About Lincoln Electric Lincoln Electric is a high-performance industrial machinery and technology leader who helps customers manufacture and maintain vital equipment and infrastructure. Lincoln Electric’s innovative solutions enable higher quality and productivity across a variety of processes including welding, cutting, brazing, machining, process automation, and field repair. The Company leverages proprietary technologies and expertise in materials science, power electronics, automation, and intelligent software to help customers build better and achieve resilience in their operations. Headquartered in Cleveland, Ohio, Lincoln Electric is the essential ‘Linc’ that keeps the economy running. The Company operates 71 manufacturing and automation facilities across 20 countries and serves customers in over 160 countries. For more information about Lincoln Electric and its products and services, visit the Company’s website at https://www.lincolnelectric.com. Non-GAAP Information Adjusted operating income, adjusted net income, adjusted EBIT, adjusted effective tax rate, adjusted diluted earnings per share ("adjusted EPS"), Organic sales, Free cash flow, Cash conversion, adjusted net operating profit after taxes and adjusted return on invested capital ("adjusted ROIC") are non-GAAP financial measures. Management uses non-GAAP measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of the Company's core business. Management believes that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against other companies in its industry more meaningfully. Furthermore, management believes that non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently. Forward-Looking Statements The Company’s expectations and beliefs concerning the future contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current expectations and involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "forecast," "guidance" or words of similar meaning. Actual results may differ materially from such statements due to a variety of factors that could adversely affect the Company’s operating results. The factors include, but are not limited to: general economic, financial and market conditions; the effectiveness of commercial and operating initiatives; the effectiveness of information systems and cybersecurity programs; presence of artificial intelligence technologies; completion of planned divestitures; interest rates; disruptions, uncertainty or volatility in the credit markets that may limit our access to capital; currency exchange rates and devaluations; adverse outcome of pending or potential litigation; actual costs of the Company’s rationalization plans; the Company’s ability to complete acquisitions, including the Company’s ability to successfully integrate acquisitions; market risks and price fluctuations related to the purchase of commodities and energy; global regulatory complexity; the effects of changes in tax law; tariff rates in the countries where the Company conducts business; and the possible effects of events beyond our control, including but not limited to, geopolitical conflicts, political unrest, acts of terror, natural disasters and pandemics on the Company or its customers, suppliers and the economy in general. For additional discussion, see "Item 1A. Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730129917/en/ Contacts Amanda ButlerVice President, Investor Relations & CommunicationsTel: 216.383.2534Email: [email protected]

Lincoln Electric Holdings (LECO) came out with quarterly earnings of $2.93 per share, beating the Zacks Consensus Estimate of $2.81 per share. This compares to earnings of $2.6 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.27%. A quarter ago, it was expected that this manufacturer of specialized welding products and other equipment would post earnings of $2.42 per share when it actually produced earnings of $2.5, delivering a surprise of +3.31%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Lincoln Electric, which belongs to the Zacks Manufacturing - Tools & Related Products industry, posted revenues of $1.22 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.45%. This compares to year-ago revenues of $1.09 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Lincoln Electric shares have added about 7.7% since the beginning of the year versus the S&P 500's gain of 6.9%. While Lincoln Electric has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Lincoln Electric was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.75 on $1.14 billion in revenues for the coming quarter and $10.85 on $4.58 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Tools & Related Products is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Kennametal (KMT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This engineered products maker is expected to post quarterly earnings of $2.31 per share in its upcoming report, which represents a year-over-year change of +579.4%. The consensus EPS estimate for the quarter has been revised 153.3% higher over the last 30 days to the current level. Kennametal's revenues are expected to be $719.89 million, up 39.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report Kennametal Inc. (KMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Second quarter marked a solid inflection in growth after nine quarters of compression, led by record performance in the Americas welding segment. Consolidated organic sales increased 10% with volume growth across all three product areas, driven by higher demand in the Americas. Record adjusted operating income margin, adjusted earnings per share, and cash flows were achieved in the quarter. Capital spending improved, with equipment and automation volumes increasing mid single-digit percent, and automation sales reaching $29 million. Strong cash generation with $254 million from operations, 138% cash conversion, and $120 million returned to shareholders. International welding segment volumes compressed approximately 5% due to slowing demand in Europe and the Middle East conflict. Gross profit margin compressed 50 basis points to 36.8% due to persistent inflation, unfavorable mix, and a $4.2 million LIFO charge. The Middle East conflict is expected to create a $6-7 million quarterly sales headwind in the international segment. Transportation sales declines narrowed but remained in the mid single-digit percent range due to lower factory production activity. Europe remained challenged with persistently soft industrial trends, impacting overall international performance. Here are the key highlights from the Lincoln Electric Holdings Inc (NASDAQ:LECO) Q2 2026 earnings call. Warning! GuruFocus has detected 9 Warning Signs with BAX. Is LECO fairly valued? Test your thesis with our free DCF calculator. Q: Can you unpack the change in your price/cost assumptions from neutral for the full year to neutral in the second half? A: (Gabe Bruno, CFO) Yes, that is a change. We ended the second quarter at a 10 basis point headwind, which is better than expected. We are now pointing to a price/cost neutral position for the back half of the year as we execute on our pricing strategies. Q: Can you provide more insight into the magnitude of the general fabrication segment's mid-30% growth rate and the expected run rate for the back half of 2026? A: (Steve Hedlund, CEO) The key is the accelerating momentum in standard welding equipment, which progressed through Q2 and into July. This reflects increased customer confidence in capital investment, translating to both automation and standard equipment growth. We have record levels of backlog in automation, and the broad-based strength gives us confidence to raise our sales and organic growth guidance. Q: What is the current situation in the Middle East, and what is the expected financial headwind? A: (Steve Hedlund, CEO) We entered Q2 expecting an $8-10 million headwind per quarter, but the actual impact was much more favorable at $2-3 million. We have now reduced our expected headwind estimate to $6-7 million per quarter. Our local team is actively engaged in monitoring projects and supporting the region's needs. Q: What are the biggest self-help margin contributors from the "RISE 2030" strategy for the back half of 2026 and into 2027, independent of volume? A: (Steve Hedlund, CEO) The RISE strategy focuses on a range of initiatives to improve factory productivity, SG&A efficiency, and commercial effectiveness. It's hard to point to one single initiative as most important. We have guided towards a steady progression of 100 to 125 basis points of margin improvement over the five-year plan. Q: Can you provide an update on expectations for the automation and transportation sectors in the back half of the year? A: (Steve Hedlund, CEO) We are seeing significant quoting activity and a record backlog, which is broad-based. We are starting to see more acceleration in engagement on the automotive side for program years 2027 and beyond. We look for automation to push high single to double-digit year-over-year sales improvement. Q: Can you provide more color on the capital spending environment in the Asia Pacific (APAC) region? A: (Gabe Bruno, CFO) We are seeing growth in China, India, Vietnam, and other parts of Southeast Asia. The general trajectory of growth and investment points to a continued bullish outlook for Asia, in contrast to the continued challenges in core European markets. Q: Can you quantify the tariff refund and how the $10 million LIFO reserve will flow through in the second half? A: (Gabe Bruno, CFO) The tariff impact was primarily from Section 232, and refunds were incorporated into our pricing actions. The only place we called out the impact was on Harris, which saw a 100 basis point margin improvement. For the back half, we expect Harris EBIT margins in the 19-20% range. The $10 million LIFO charge is based on inflation seen through June. Q: What drove the inflection to growth in the Americas Welding segment, and what are the margin expectations for the rest of the year? A: (Steve Hedlund, CEO) The inflection was led by low double-digit percent volume growth in equipment, driven by improved capital spending from direct OEM and rental customers. Consumable volumes also grew at a low single-digit rate. We expect the Americas Welding margin to operate in the 19-20% range for the remainder of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Welding equipment manufacturer Lincoln Electric (NASDAQ:LECO) will be announcing earnings results this Thursday before market open. Here’s what to look for. Lincoln Electric beat analysts’ revenue expectations last quarter, reporting revenues of $1.12 billion, up 11.7% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ organic revenue estimates. Is Lincoln Electric a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Lincoln Electric’s revenue to grow 7.1% year on year, in line with the 6.6% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Lincoln Electric rarely misses Wall Street’s revenue estimates. Looking at Lincoln Electric’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Snap-on delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 1.1%, and GE Aerospace reported revenues up 24.5%, topping estimates by 6%. Snap-on’s stock price was unchanged after the resultswhile GE Aerospace was down 3.2%. Read our full analysis of Snap-on’s results here and GE Aerospace’s results here. Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Lincoln Electric is up 1.2% during the same time and is heading into earnings with an average analyst price target of $297 (compared to the current share price of $267.23). WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

Lincoln Electric Holdings (LECO) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This manufacturer of specialized welding products and other equipment is expected to post quarterly earnings of $2.81 per share in its upcoming report, which represents a year-over-year change of +8.1%. Revenues are expected to be $1.17 billion, up 7.3% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Lincoln Electric, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.17%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Lincoln Electric will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Lincoln Electric would post earnings of $2.42 per share when it actually produced earnings of $2.50, delivering a surprise of +3.31%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Lincoln Electric doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Manufacturing - Tools & Related Products industry, Stanley Black & Decker (SWK), is soon expected to post earnings of $1.2 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +11.1%. This quarter's revenue is expected to be $3.93 billion, down 0.3% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Stanley Black & Decker has been revised 0.4% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.18%, reflecting a lower Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Stanley Black & Decker will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lincoln Electric Holdings, Inc. (LECO) : Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lincoln Electric Holdings recently reported quarterly revenues of US$1.12 billion, an 11.7% year-on-year increase that exceeded analyst expectations by 4.2%, alongside a Board-approved cash dividend declared for payment in October 2026. While organic revenue growth lagged, disciplined cost management and improving industrial activity in the Americas underpinned stronger operating performance and reinforced confidence in the company’s earnings profile. With revenue beating expectations on the back of disciplined cost management, we’ll now examine how this update influences Lincoln Electric’s investment narrative. Find 47 companies with promising cash flow potential yet trading below their fair value. To own Lincoln Electric, you need to believe its welding and automation franchise can convert industrial activity and reshoring into steady earnings, despite cyclical end markets. The latest quarter’s revenue beat, helped by cost control and Americas strength, supports that earnings story, but the organic sales miss keeps the key short term catalyst a clear volume recovery and leaves demand softness and capital spending delays as the primary risk. The Board’s decision to declare a quarterly cash dividend payable in October 2026 fits into this picture, underscoring an ongoing commitment to returning cash to shareholders even as the company balances volume headwinds, cost discipline, and investment in automation. For investors watching near term catalysts, that dividend track record can matter when weighing earnings quality against exposure to cyclical sectors. Yet, beneath the strong headline revenue beat, one risk investors should be aware of is how much Lincoln Electric still relies on pricing rather than true volume growth... Read the full narrative on Lincoln Electric Holdings (it's free!) Lincoln Electric Holdings' narrative projects $5.2 billion revenue and $733.3 million earnings by 2029. This requires 6.0% yearly revenue growth and about a $195 million earnings increase from $538.4 million today. Uncover how Lincoln Electric Holdings' forecasts yield a $294.11 fair value, a 18% upside to its current price. Some of the lowest ranked analysts paint a tougher picture, assuming revenue of about US$4.9 billion and earnings near US$711 million by 2029, which contrasts with the recent revenue beat and reminds you that views on Lincoln Electric’s exposure to traditional welding cycles and automation opportunities can differ sharply and may shift again as this quarter’s mixed organic performance is digested. Explore 3 other fair value estimates on Lincoln Electric Holdings - why the stock might be worth just $294.11! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Lincoln Electric Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free Lincoln Electric Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lincoln Electric Holdings' overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: We've uncovered the 7 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Outshine the giants: these 16 early-stage AI stocks could fund your retirement. Uncover the next big thing with 21 elite penny stocks that balance risk and reward. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LECO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]