Strong Earnings and Completed Buybacks Might Change the Case for Investing in Lincoln Electric (LECO)

• In the past week, Lincoln Electric Holdings reported third quarter 2025 earnings with sales of US$1,061.23 million and net income of US$122.63 million, both higher than the prior year, and announced the completion of a share repurchase program, having bought back a total of 4,692,047 shares since February 2020 for US$862.22 million.
• The combination of increased earnings and steady share buybacks highlights the company's continued focus on returning value to shareholders through both business performance and capital allocation.
• We'll now explore how Lincoln Electric's strong net income growth during the quarter could shape its updated investment outlook.

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Lincoln Electric Holdings Investment Narrative Recap

Shareholders in Lincoln Electric need to believe in the company’s ability to deliver consistent profit growth and return capital, even as order volumes are pressured by shaky trends in its key end markets like automotive and heavy industry. While the recent quarter’s strong earnings and the completion of a substantial buyback support confidence, these don’t materially change the main short-term catalyst, customers potentially resuming capex spending, and do little to offset the ongoing risk of persistent volume softness if that rebound stalls.

The most relevant recent announcement is the completion of the multi-year buyback program, totaling US$862.22 million, which signals an ongoing commitment to capital returns and may provide some support to earnings per share as market conditions fluctuate. This capital allocation decision ties closely to current catalysts, as management is emphasizing shareholder value while patiently awaiting a recovery in true end market demand.

However, investors should be aware that if volume growth fails to recover as pricing power wanes...

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 expected annual revenue growth of 5.4% and an earnings increase of $161.6 million from the current $502.9 million.

Uncover how Lincoln Electric Holdings' forecasts yield a $260.60 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community span US$218.67 to US$260.60, based on two individual analyses. While opinions vary widely, the continued reliance on price rather than volume growth raises bigger questions for future performance. Consider these perspectives as you weigh your own outlook.

Explore 2 other fair value estimates on Lincoln Electric Holdings - why the stock might be worth just $218.67!

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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