Lincoln Electric posts record adjusted EPS of $2.98 and raises dividend 10%

Lincoln Electric posted record adjusted earnings for the third quarter of 2026 as volume-led growth lifted sales 15.1%, and the company raised its quarterly dividend by about 10%.

The Cleveland-based company reported adjusted earnings of $2.98 per share, up 21% from $2.47 a year earlier, according to the earnings release attached to its 8-K on Tuesday. On a GAAP basis, net income rose to $144.3 million, or $2.63 per diluted share, from $122.6 million, or $2.21, including $0.35 a share of after-tax special charges.

Sales climbed to $1.221 billion. Organic sales rose 14.5%, acquisitions added 0.5% and currency contributed 0.1%, the company said.

Margins move higher

Operating income rose to $211.4 million, or 17.3% of sales, from $176.7 million, or 16.6%. Excluding special items, the adjusted operating margin improved to 18.0% from 17.4%.

Chairman and CEO Steven B. Hedlund credited "higher volumes" and a wider adjusted margin, and said the team was "diligently managing inflationary headwinds" while accelerating the company's RISE strategy initiatives.

Cash flow from operations was $216 million, a 107% cash conversion rate, and Lincoln Electric returned $143 million to shareholders through dividends and buybacks in the quarter.

Dividend raised

The board declared a quarterly dividend of $0.87 per share, or $3.48 annualized, a 10.1% increase from the prior payout. It is payable Jan. 15, 2027, to shareholders of record on Dec. 31, 2026, according to the release.

For the first nine months, sales rose 12.9% to $3.562 billion and adjusted EPS increased to $8.41 from $7.22.

By the numbers

• Q3 sales: $1.221 billion, up 15.1%
• Organic sales growth: 14.5%
• Adjusted EPS: $2.98, up 21%
• Adjusted operating margin: 18.0%
• New quarterly dividend: $0.87, up 10.1%

Sources

1. LINCOLN ELECTRIC HOLDINGS INC, Form 8-K with third quarter 2026 earnings release, filed Oct. 27, 2026 (accession 0000059527-26-000025)

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