Lincoln Electric 10-Q Details Q3: Sales Up 15.1% to $1.22B, EPS $2.63, $13M Repatriation Tax
LECO sits 30% above its 52-week low of $216.22.
Summary
Lincoln Electric's Q3 10-Q shows sales up 15.1% to $1.22 billion with GAAP EPS of $2.63 versus $2.98 adjusted, held back by a $13.0 million tax charge on repatriated foreign earnings and a 1.9-point gross margin decline. Debt fell to $1.15 billion with the revolver undrawn.
Key Events · Earnings and Guidance · LECO
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Q3 Sales Up 15.1% to $1.22B
Net sales rose to $1,221,281 thousand from $1,061,227 thousand, driven by 8.8% volume, 5.7% price, 0.5% acquisitions and 0.1% foreign exchange.
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Gross Margin Slips on Input Costs
Gross profit was $425,031 thousand, or 34.8% of sales, down 1.9 points from 36.7% as higher input costs and $1,888 thousand of LIFO charges weighed; operating income still rose 19.7% to $211,376 thousand.
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Repatriation Tax Lifts Effective Rate
A charge of approximately $12,977 thousand on previously indefinitely reinvested foreign earnings pushed the quarterly effective tax rate to 27.8%, leaving GAAP diluted EPS at $2.63 versus $2.98 adjusted.
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Debt Cut, Revolver Undrawn
Total debt fell to $1,149,969 thousand from $1,294,008 thousand at December 31, 2025, with no borrowings outstanding on the $1,050,065 thousand of available revolving facilities and all covenants met.
Analysis · LECO · Technology
The 10-Q fills in the numbers behind this morning's earnings release. Sales rose 15.1% to $1.22 billion on 8.8% volume and 5.7% price, but gross margin slipped 1.9 points to 34.8% as input costs rose, so the profit growth came from operating leverage rather than pricing power. Americas Welding did the heavy lifting with Adjusted EBIT up 26.5%, while International Welding fell 7.2% on weak European demand and Middle East disruption. A $12,977 thousand tax charge on repatriating previously reinvested foreign earnings pushed the quarterly effective rate to 27.8% and is the main reason GAAP EPS of $2.63 trails the $2.98 adjusted figure. The balance sheet is the quiet positive: total debt is down to $1.15 billion from $1.29 billion at year-end with nothing drawn on the $1.05 billion revolver, and $571.7 million of nine-month operating cash flow comfortably funds $111.8 million of capex, $232.2 million of buybacks and $130.7 million of dividends.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, LECO was trading at $281.86 on NASDAQ in the Technology sector, with a market capitalization of approximately $15.4B. The 52-week trading range was $216.22 to $310.00. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.