Earnings Surge and Share Buyback Completion Could Be a Game Changer for Lincoln Electric (LECO)

• Lincoln Electric Holdings reported third-quarter 2025 results, with sales rising to US$1,061.23 million and net income reaching US$122.63 million, along with the completion of a US$862.22 million share buyback program started in 2020.
• This combination of strong earnings growth and substantial share repurchases highlights the company’s ongoing commitment to shareholder returns and operational momentum.
• We’ll examine how Lincoln Electric’s marked earnings growth and capital return through buybacks may influence its future investment narrative.

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Lincoln Electric Holdings Investment Narrative Recap

To hold shares of Lincoln Electric Holdings, an investor needs to believe in the company's ability to capture long-term demand shifts in automation and infrastructure, while navigating cyclical industrial headwinds. The latest news of robust third-quarter results and the completion of an US$862.22 million share buyback program signals ongoing capital returns but does not materially shift the near-term catalyst, which continues to be a potential rebound in automation investment; the biggest risk remains exposure to cyclical slowdowns in core industrial end markets.

Among recent announcements, the third-quarter earnings release stands out: sales and net income both climbed compared to the prior year, reflecting operational strength. This earnings growth, paired with the full execution of a multi-year buyback plan, may reinforce confidence among investors looking for steady capital returns, but does not offset the core risks tied to market cyclicality.

However, investors should be aware that despite positive headlines, the company's reliance on price increases rather than true volume growth continues to present a risk if...

Read the full narrative on Lincoln Electric Holdings (it's free!)

Lincoln Electric Holdings' outlook anticipates $4.8 billion in revenue and $664.5 million in earnings by 2028. This scenario is based on a 5.4% annual revenue growth rate and a $161.6 million increase in earnings from the current $502.9 million.

Uncover how Lincoln Electric Holdings' forecasts yield a $260.60 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community users value Lincoln Electric anywhere between US$219.00 and US$260.60, based on 2 unique estimates. While fair value views diverge, many are closely watching the company's reliance on higher prices over real demand expansion, which could shape longer-term outcome and reward. Compare for yourself and see which scenarios you find compelling.

Explore 2 other fair value estimates on Lincoln Electric Holdings - why the stock might be worth 7% less than the current price!

Build Your Own Lincoln Electric Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lincoln Electric Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Lincoln Electric Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lincoln Electric Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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