Lincoln Electric Holdings, Inc. reported third-quarter sales rose 15.1% to $1.22 billion, with volume driving organic growth, while lower gross margin contrasted with higher net income and operating margin.
Organic sales were up 14.5%, with volume as the main contributor. Acquisitions contributed 0.5 percentage point to sales growth, while favorable currency movements contributed 0.1 point. Gross margin narrowed to 34.8% from 36.7% a year earlier.
Net income rose to $144.3 million from $122.6 million, while diluted earnings per share increased to $2.63 from $2.21. Operating income reached $211.4 million, or 17.3% of sales, compared with 16.6% a year earlier. Selling, general and administrative expenses accounted for 16.9% of sales, down from 19.5%.
Adjusted earnings per share, which excludes special items, were $2.98, versus $2.47 a year earlier. The quarter included $19.3 million in after-tax special-item charges, compared with $14.6 million in the prior-year quarter. Chairman and CEO Steven B. Hedlund said adjusted EPS reached a company record as adjusted operating margin improved.
Cash from operations was $215.8 million, compared with $236.7 million a year earlier. The company reported $143 million in combined dividend payments and share repurchases. Its release listed a quarterly dividend of $0.87 per share, payable Jan. 15, 2027, to shareholders of record Dec. 31, 2026.
Lincoln Electric filed a Form 8-K with the U.S. Securities and Exchange Commission on Oct. 27. The filing index lists 12 documents and identifies Item 2.02, Results of Operations and Financial Condition, and Item 9.01, Financial Statements and Exhibits. It lists Exhibit 99.1 as the earnings release and includes XBRL data files. The index gives Oct. 27 as both the filing date and the period of report.
Across the year-over-year comparisons, sales, net income and operating income were higher, while gross margin and cash from operations were lower.
