Lincoln Electric’s second quarter results were met with a notably positive market reaction, as the company’s performance surpassed Wall Street’s expectations on both revenue and earnings. Management cited diligent price management and improved volume performance in the Americas Welding and Harris Products Group segments as key contributors. CEO Steven Hedlund noted, “Our team has done an excellent job managing inflationary headwinds and navigating supply chain complexities while maintaining our neutral price/cost position.” The company also benefited from operational efficiencies and targeted cost savings, which helped offset ongoing volume pressures and inflation.
Is now the time to buy LECO? Find out in our full research report (it’s free).
Lincoln Electric (LECO) Q2 CY2025 Highlights:
- Revenue: $1.09 billion vs analyst estimates of $1.04 billion (6.6% year-on-year growth, 5.1% beat)
- Adjusted EPS: $2.60 vs analyst estimates of $2.31 (12.4% beat)
- Adjusted EBITDA: $219.6 million vs analyst estimates of $203.2 million (20.2% margin, 8.1% beat)
- Operating Margin: 17.6%, up from 14.6% in the same quarter last year
- Organic Revenue rose 2.9% year on year vs analyst estimates of 1.2% declines (400.4 basis point beat)
- Market Capitalization: $13.36 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lincoln Electric’s Q2 Earnings Call
-
Angel Castillo (Morgan Stanley) asked about July order trends and customer demand progression. CFO Gabriel Bruno indicated that order trends held steady into July, with general industries showing improvement and heavy industries remaining cautious.
-
Saree Emily Boroditsky (Jefferies) questioned the impact of tariff clarity on customer investment. CEO Steven Hedlund explained that clearer trade policy would help customers commit to capital projects, particularly in automation and equipment.
-
Bryan Francis Blair (Oppenheimer) inquired about automation quoting activity and potential demand inflection. CEO Hedlund responded that quoting remains strong, but management remains conservative on when those quotes will translate to orders.
-
Mircea Dobre (Baird) asked about automation mix and general industries growth. Bruno clarified that automation is expected to be flat for the year, and noted that general industries, including HVAC and consumables, showed steadier trends than anticipated.
-
Nathan Hardie Jones (Stifel) sought detail on pricing versus volume in consumables. Bruno explained that pricing was higher on consumables than equipment, with volumes holding flat and pricing actions already taken to address steel and aluminum tariffs.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) whether automation and equipment order rates accelerate as trade policy uncertainty diminishes, (2) the realization of permanent structural cost savings supporting operating margins, and (3) demand trends in key end markets like HVAC, data centers, and general industries. The integration of the Alloy Steel acquisition and further progress in automation adoption will also be important indicators of Lincoln Electric’s execution.
Lincoln Electric currently trades at $242.11, up from $223.49 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
