Lincoln Electric at 25th annual diversified industrials & services conference: growth plan

On Thursday, September 24, 2026, Lincoln Electric (LECO) presented its business strategy during the 25th Annual Diversified Industrials & Services Conference. The company noted that demand is improving in the Americas welding, automation, and standard equipment sectors, while the automotive market remains the only major end market not experiencing growth. LECO expects third-quarter incremental margins to be in the low 20s, with a return to price-cost neutrality in the fourth quarter after August price increases.

The company's growth plan focuses on automation, Physical AI, and global integration under the RISE strategy. This approach is expected to generate mid-to-high single-digit organic growth through 2030. Internationally, the situation is mixed, with Asia performing well, Europe facing structural challenges, and the Middle East dealing with conflict-related headwinds of about $67 million per quarter.

Management highlighted that the company is managing inflation in fuel, freight, and ocean container costs by raising prices. LECO's market capitalization stands at $14.4 billion, with a P/E ratio of 26.4. The company's gross profit margin remains healthy at 36% based on the last twelve months ending Q2 2026.

The pricing strategy is built around long-standing price-cost neutrality on a normalized basis, with pricing typically contributing 100 to 200 basis points to organic growth. The focus is on maintaining mid-to-high single-digit organic growth through 2030, with a target of 300 basis points of operating margin improvement under RISE.