Lincoln Electric
Maker of welding and cutting equipment, consumables, and robotic welding systems.
On the record
Checkpoint: Q2 2026 earnings, first real test of RISE 2030 organic growth targets
The call
Lincoln Electric's consumables and distribution setup keeps rivals at bay while organic growth slows and welding automation advances.
Lincoln Electric sells welding machines and the wire and materials that go with them, mostly to factories and construction sites around the world. It is hard to replace because factories buy its wire and supplies over and over, and switching to a rival like ESAB or Miller costs them time and money; also, factories trust Lincoln's equipment for safety-critical jobs, which takes years to earn. The big question is whether its new automation business will start helping sales grow in the next year or two, because regular sales growth has slowed to 2.5 percent, and that slowdown is making investors nervous even though the company just reported record profits.
Why
01
AI pressure: Path Robotics (AI-guided welding robots). AI vision robots from startups like Path Robotics could automate welding cells and cut demand for manual consumables over time. Could AI do the core job? Unlikely.
02
Bigger players: ITW (Miller Electric) and ESAB Corporation. ESAB and Miller Electric already sell competing consumables and automation lines in the same markets Lincoln serves. Could a giant copy it? No, they are blocked.
03
What protects it. Consumables lock-in, 71 plants across 20 countries, and OEM safety certifications make switching costly and slow.
What would change this call
Q2 2026 organic volume growth turns positive vs. FY2025's 2.5%. Shows demand and RISE 2030 plan are on track, not softening.
Inrotech automation revenue contributes positively to organic growth by Q3 2026. Shows automation is adding growth, not lagging behind ESAB or Fanuc/ABB offerings.
New rulings or trust filings in Adams v. Lincoln or Piety v. Lincoln asbestos cases. Shows whether asbestos litigation tail is escalating into a material financial risk.
Inrotech automation revenue contributes positively to organic growth by Q3 2026. Shows automation is adding growth, not lagging behind ESAB or Fanuc/ABB offerings.
New rulings or trust filings in Adams v. Lincoln or Piety v. Lincoln asbestos cases. Shows whether asbestos litigation tail is escalating into a material financial risk.
Key numbers
- FY2025 record net sales of $4.2B, up ~6% YoY
- Organic sales growth only 2.5% in FY2025
- RISE 2030 plan targets sales above $6B
Named risks
- Open-ended asbestos litigation with 57,000+ claims filed since 1995, no trust established.
- Soft organic volume growth (2.5% in FY2025) amid weak industrial capex cycle.
- Stock fell 3.61% on Feb 12, 2026 despite record results, signaling investor skepticism.
- Ambitious RISE 2030 targets ($6B+ sales, 20%+ margin) carry execution risk.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| ESAB Corporation | contesting | Described as Lincoln's primary global peer with no visible share shift as of Feb 2026 |
| ITW (Miller Electric) | contesting | ITW's Welding segment named as major rival; no share loss reported through FY2025 |
Questions people ask
- Is Lincoln Electric profitable in 2025?
- Yes. Lincoln Electric reported record FY2025 net sales of $4.2 billion, up about 6% year over year, and record adjusted EPS of $9.87, per its February 12, 2026 earnings release, despite organic volume growth of only 2.5%.
- Who is Lincoln Electric's biggest competitor?
- ESAB Corporation is Lincoln Electric's closest global peer in arc welding equipment, with ITW's Miller Electric division also a major rival. Industry commentary describes an entrenched top-tier rivalry with no visible share loss by Lincoln as of 2026.
- Could AI replace Lincoln Electric's welding automation business?
- Unlikely soon. Lincoln bought Inrotech in June 2024 for vision-guided adaptive welding AI, using it to strengthen its own product line rather than being displaced, aiming to solve customer labor scarcity in industrial welding.
- Is Lincoln Electric a safe company to join?
- Lincoln Electric reports about 12,000 employees worldwide as of August 4, 2025, record FY2025 sales of $4.2 billion, and a new RISE 2030 plan targeting over $6 billion in sales, indicating financial stability as of early 2026.
- Does Lincoln Electric face asbestos litigation?
- Yes. More than 57,000 asbestos claims have been filed against Lincoln Electric since 1995 over legacy welding-rod products, with roughly 1,300 pending as of December 2024; no bankruptcy or asbestos trust has been established.
- Who owns Lincoln Electric?
- Lincoln Electric Holdings is publicly traded with no controlling parent, listing on the NYSE in 1995 after a near-bankruptcy in the late 1980s/early 1990s; it now trades on Nasdaq under ticker LECO.
Timeline
- 2026-02-12Reports record FY2025 sales of $4.2B and launches RISE 2030 plan targeting $6B+ sales
- 2025-10-30Q3 2025 sales rise 7.9% to $1.061B, organic growth +5.6%
- 2025-08-04Completes acquisition of remaining 65% stake in Alloy Steel Australia
- 2025-07-31Q2 2025 results disclose 71 manufacturing sites across ~20 countries
- 2024-06-02Acquires Inrotech A/S, adding vision-based adaptive welding AI
- 1995Lists on the NYSE after near-bankruptcy in late 1980s/early 1990s
- 1895Founded by John C. Lincoln
Revision history
24 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Lincoln Electric Reports Fourth Quarter and Full Year 2025 Results (2026-02-12)
- Lincoln Electric Q4 Earnings Call Highlights (2026-02-12)
- Lincoln Electric Acquires Remaining Interest in Alloy Steel (2025-08-04)
- Lincoln Electric Reports Second Quarter 2025 Results (2025-07-31)
- Lincoln Electric Acquires Inrotech (2024-06-02)
- Lincoln Electric Reports Third Quarter 2025 Results (2025-10-30)
- Asbestos Products, Lawsuits & History (2026-02-12)
- Solid results and ambitious 2030 targets unveiled (2026-02-12)
- Lincoln Electric Holdings Number of Employees 2026 (2026-06-29)