LINCOLN ELECTRIC HOLDINGS INC
For the period ended Sep 30, 2026. Filed Oct 27, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 27, 2026
LECO$275.35+1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0000059527-26-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-27.
0000059527-26-000027
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 55 previous paragraphs and 55 current paragraphs.
43 unchanged; 12 reworded; 0 added; 0 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 40 previous and 40 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Reworded paragraphs (12)
Previous wording
Net sales increased for the three and six months ended June 30, 2026 due to an increase in organic sales and a benefit from acquisitions and foreign exchange. The increase in organic sales for the three months ended June 30, 2026 is driven by an increase in pricing, primarily due to higher input costs, as well as higher volumes. The increase in organic sales for the six months ended June 30, 2026 is driven by an increase in pricing, primarily due to higher input costs.
Current wording
Net sales increased for the three and nine months ended September 30, 2026 due to an increase in organic sales and a benefit from acquisitions and foreign exchange. The increase in organic sales for the three and nine months ended September 30, 2026 is primarily driven by higher volumes and an increase in pricing due to higher input costs.
Previous wording
Gross profit as a percentage of sales decreased 0.5% and 0.6% for the three and six months ended June 30, 2026, respectively, as compared to the same 2025 periods, driven byunfavorable impacts from product mix and higher input costs. This includes last-in, first-out (“LIFO”) charges of $4,186 and $5,024 for the three and six months ended June 30, 2026 and LIFO charges of $8,523 and $10,284 for the three and six months ended June 30, 2025, respectively, which are primarily due to rising input costs.
Current wording
Gross profit as a percentage of sales decreased 1.9% and 1.1% for the three and nine months ended September 30, 2026, respectively, as compared to the same 2025 periods, driven byhigher input costs. The three and nine months ended September 30, 2026 includes last-in, first-out (“LIFO”) charges of $1,888 and $6,912, respectively, which are primarily due to rising input costs. This compares with charges of $4,804 and $15,088, respectively, in the comparable 2025 periods.
Previous wording
Selling, general & administrative expenses increased in the three and six months ended June 30,2026 as compared to the same 2025 periods, primarily due to increases in spend related to the Company’s RISE strategic initiatives, acquisitions and the unfavorable impact of foreign currency translation. Selling, general & administrative expenses as a percentage of sales decreased primarily due to higher organic sales.
Current wording
Selling, general & administrative expenses increased in the nine months ended September 30, 2026 as compared to the same 2025 period, primarily due to increases in spend related to the Company’s RISE strategic initiatives, acquisitions and the unfavorable impact of foreign currency translation. Selling, general & administrative expenses as a percentage of sales decreased primarily due to higher operating leverage from increased organic sales.
Previous wording
Operating income as a percentage of sales was 18.1% for the three months ended June 30, 2026 as compared to 17.6% in the prior year period. Excluding special items, Operating income as a percentage of sales was 18.4% for the three months ended June 30, 2026 as compared with 17.9% in the prior year period. Operating income as a percentage of sales was 17.4% for the six months ended June 30, 2026 as compared to 17.1% in the prior year period. Excluding special items, Operating income as a percentage of sales was 17.6% in the six months ended June 30, 2026 as compared with 17.4% in the prior year period. Refer to explanations above for additional details. Also refer to Non-GAAP Financial Measures for a reconciliation of Adjusted operating income.
Current wording
Operating income as a percentage of sales was 17.3% for the three months ended September 30, 2026 as compared to 16.6% in the prior year period. Excluding special items, Operating income as a percentage of sales was 18.0% for the three months ended September 30, 2026 as compared with 17.4% in the prior year period. Operating income as a percentage of sales was 17.4% for the nine months ended September 30, 2026 as compared to 16.9% in the prior year period. Excluding special items, Operating income as a percentage of sales was 17.8% in the nine months ended September 30, 2026 as compared with 17.4% in the prior year period. Refer to explanations above for additional details. Also refer to Non-GAAP Financial Measures for a reconciliation of Adjusted operating income.
Previous wording
The effective tax rate was higher for the three and six months ended June 30, 2026 as compared to the same 2025 periods, primarily due to the mix of earnings and timing of discrete tax items.
Current wording
The effective tax rate was higher for the three and nine months ended September 30, 2026 as compared to the same 2025 periods, primarily due to the mix of earnings, the timing of discrete tax items, and the impact of the change in the Company's indefinite reinvestment assertion for certain foreign earnings, as discussed in Note 11. The effective tax rate for the three months ended September 30, 2025 included the impact of the One Big Beautiful Bill Act (“OBBBA”).
Previous wording
The following tables presents Adjusted EBIT by segment:
Current wording
The following tables present Adjusted EBIT by segment:
Previous wording
The Company’s primary sources of liquidity are operating cash flows and revolving credit facilities. As of June 30, 2026, the Company had $242,443 of cash and cash equivalents on hand and no outstanding borrowings under its $1,047,482 revolving credit facilities.
Current wording
The Company’s primary sources of liquidity are operating cash flows and revolving credit facilities. As of September 30, 2026, the Company had $283,237 of cash and cash equivalents on hand and no outstanding borrowings under its $1,050,065 revolving credit facilities.
Previous wording
As of June 30, 2026, the Company had cash of $242,443, of which $181,012 was held by international subsidiaries.
Current wording
As of September 30, 2026, the Company had cash of $283,237, of which $179,018 was held by international subsidiaries. During the third quarter 2026, the Company determined that certain foreign earnings may be repatriated and recognized approximately $12,977 of related income tax expense, as discussed in Note 11.
Previous wording
In July 2026, the Company paid a cash dividend of $0.79 per share, or $43,060, to shareholders of record on June 30, 2026.
Current wording
In October 2026, the Company paid a cash dividend of $0.79 per share, or $42,784, to shareholders of record on September 30, 2026.
Previous wording
The Company currently anticipates capital expenditures of $110,000 to $130,000 in 2026. Anticipated capital expenditures include investments to increase capacity, improve operational effectiveness and for general maintenance. Management critically evaluates all proposed capital expenditures and expects each project to increase efficiency, reduce costs, support sales growth or improve the overall safety and environmental conditions of the Company’s facilities.
Current wording
The Company currently anticipates capital expenditures of $140,000 to $150,000 in 2026. Anticipated capital expenditures include investments to increase capacity, improve operational effectiveness and for general maintenance. Management critically evaluates all proposed capital expenditures and expects each project to increase efficiency, reduce costs, support sales growth or improve the overall safety and environmental conditions of the Company’s facilities.
Previous wording
On June 20, 2024, the Company entered into a $1 billion revolving credit facility. The revolving credit facility matures on June 20, 2029. Additionally, the Company has other lines of credit with total availability of $47,482. As of June 30, 2026, the Company had total availability of $1,047,482 under its revolving credit facilities. Refer to Note 10 to the consolidated financial statements for further information on our revolving lines of credit.
Current wording
On June 20, 2024, the Company entered into a $1 billion revolving credit facility. The revolving credit facility matures on June 20, 2029. Additionally, the Company has other lines of credit with total availability of $50,065. As of September 30, 2026, the Company had total availability of $1,050,065 under its revolving credit facilities. Refer to Note 10 to the consolidated financial statements for further information on our revolving lines of credit.
Previous wording
On February 12, 2020, the Company’s Board authorized a share repurchase program for up to 10 million shares of the Company’s common stock. As of June 30, 2026, there were 4.6 million shares available under the authorization. The Company is not obligated to make any repurchases.
Current wording
On February 12, 2020, the Company’s Board authorized a share repurchase program for up to 10 million shares of the Company’s common stock. As of September 30, 2026, there were 4.3 million shares available under the authorization. The Company is not obligated to make any repurchases.