Lincoln Electric Delivers 15% Net Sales Growth and Hikes Quarterly Dividend 10%

Financial Performance Summary

Lincoln Electric Holdings, Inc. reported third-quarter 2026 financial results showing strong top- and bottom-line expansion:

• Revenue: Net sales rose 15.1% year-over-year to $1,221.3 million, driven by a 14.5% increase in organic sales led by volume growth, along with a 0.5% contribution from acquisitions and 0.1% foreign exchange tailwinds.
• Profitability: Operating income reached $211.4 million (17.3% margin), up from $176.7 million (16.6% margin) in Q3 2025. Adjusted operating income was $220.0 million, representing an adjusted margin of 18.0% (up 60 bps YoY).
• Net Income & EPS: Net income increased to $144.3 million ($2.63 per diluted share) compared to $122.6 million ($2.21 per share) in the prior-year period. Excluding $19.3 million in after-tax net special item charges ($0.35 per share), adjusted net income stood at $163.6 million ($2.98 adjusted EPS, +21% YoY).

Capital Allocation & Shareholder Returns

• Cash Generation: Generated operating cash flow of $216 million during the quarter, reflecting a 107% cash conversion rate.
• Capital Returns: Returned $143 million to shareholders in Q3 through dividends and share repurchases.
• Dividend Increase: The Board of Directors declared a quarterly cash dividend of $0.87 per share ($3.48 annualized), representing a 10.1% increase over the previous quarterly dividend, payable January 15, 2027 to shareholders of record as of December 31, 2026.

Year-to-Date Performance

For the nine months ended September 30, 2026, net sales climbed 12.9% to $3,562.4 million with operating income of $618.2 million (17.4% margin). Adjusted EPS reached $8.41 compared to $7.22 in the prior-year period.