Lincoln Electric Holdings, Inc. (NASDAQ:LECO) is included among Billionaire Mario Gabelli’s Top 12 Dividend Stocks.
On June 16, DA Davidson initiated coverage of Lincoln Electric Holdings, Inc. (NASDAQ:LECO) with a Buy rating. It also set a $320 price target on the stock. Analyst Chris Dankert said the company is well-positioned to benefit from long-term industry trends, including reshoring, an aging technical workforce, and growing Industry 4.0 investments. More than 20% of Lincoln Electric’s sales come from automation solutions, which the firm views as a key advantage. DA Davidson also pointed to the company’s strong free cash flow generation and disciplined capital deployment. The firm believes these factors could support earnings growth, while improving business momentum may lead to a higher valuation multiple.
During the company’s Q1 2026 earnings call, President, CEO, and Chairman Steven Hedlund said a 10% price increase was not enough to fully offset inflation during the quarter. He noted that Lincoln Electric had already announced additional pricing actions across its welding segments, with those increases set to take effect in early May.
Hedlund also said cash flow, which is typically lower in the first quarter because of seasonal patterns, was further affected by a temporary increase in inventory. According to him, higher inventory levels were tied to efforts to maintain service levels under the Spotlight initiative and ongoing product migrations. Despite these headwinds, the company delivered a return on invested capital of 21.5%, which he said remained within top-quartile performance levels.
Executive Vice President, CFO, and Treasurer Gabriel Bruno reported that first-quarter sales increased about 12% year over year to $1.121 billion. He also noted that gross profit margin fell by 80 basis points to 35.6%, mainly because pricing and cost dynamics created an unfavorable impact of 90 basis points during the quarter.
Lincoln Electric Holdings, Inc. (NASDAQ:LECO) operates in welding, cutting, brazing, machining, process automation, and field repair. The company conducts business through its Americas Welding, International Welding, and Harris Products Group segments.
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