24/7 Wall St. Quick Read Lincoln Electric (LECO) raised its quarterly dividend 5.3% to $0.79 per share. This marks 30 consecutive years of dividend increases. Lincoln Electric’s earnings payout ratio sits at 32.6% with Q3 free cash flow of $205M. Total debt rose 13.8% to $1.32B due to the Alloy Steel acquisition. If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn ...

Lincoln Electric Holdings (NASDAQ: LECO) declared a quarterly dividend of $0.79 per share, a 5.3% increase marking the company's 30th consecutive year of dividend growth. ...

Industry Overview - Robotics companies are leading innovation, enhancing efficiency and productivity in sectors like manufacturing, healthcare, and logistics, with the global robotics market expected to experience significant growth driven by technological advancements and increasing automation demand [1][2] - The integration of hardware, software, and AI in robotics allows for the development of intelligent machines capable of performing complex tasks autonomously or semi-autonomously [2] Investment Potential - The high growth potential in the robotics sector promises substantial returns for investors, while also addressing labor shortages and improving task precision, which can lead to reduced operational costs and enhanced quality [2] - Despite the promising landscape, the investment environment is fraught with risks, including high R&D costs, regulatory challenges, market volatility, and societal impacts of automation [3] Recommended Stocks - Five robotics stocks are recommended for investment in the last two months of 2025: UiPath Inc. (PATH), Emerson Electric Co. (EMR), Trimble Inc. (TRMB), Omnicell Inc. (OMCL), and Lincoln Electric Holdings Inc. (LECO), all carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [4][7] Company Highlights - **UiPath Inc. (PATH)**: Expected revenue growth of 10.1% and earnings growth of 22.6% for the current year, with an 18.1% improvement in earnings estimates over the past 60 days [9] - **Emerson Electric Co. (EMR)**: Anticipates revenue growth of 4.9% and earnings growth of 8.4% for the current year, with a slight 0.2% increase in earnings estimates over the last 60 days [11] - **Trimble Inc. (TRMB)**: Expected revenue decline of 4.4% but earnings growth of 4.9% for the current year, with a 3.1% improvement in earnings estimates over the last 60 days [13] - **Omnicell Inc. (OMCL)**: Projected revenue growth of 0.1% and earnings growth of 8.2% for the current year, with a 4.7% increase in earnings estimates over the last seven days [15] - **Lincoln Electric Holdings Inc. (LECO)**: Expected revenue growth of 5.2% and earnings growth of 4.5% for the current year, with a 0.6% improvement in earnings estimates over the last 30 days [18]

Financial Performance - Net sales for Q3 2025 reached $1,061,227, an increase of 7.9% compared to $983,759 in Q3 2024[94] - Gross profit for Q3 2025 was $389,311, representing 36.7% of sales, up from 35.8% in Q3 2024[94] - Operating income for Q3 2025 was $176,657, or 16.6% of sales, compared to 14.8% in the prior year[94] - Net income for Q3 2025 was $122,628, a 21.7% increase from $100,756 in Q3 2024[94] - Diluted earnings per share for Q3 2025 increased to $2.21, up 24.9% from $1.77 in Q3 2024[94] - For the nine months ended September 30, 2025, net sales totaled $3,154,288, a 5.6% increase from $2,986,639 in the same period of 2024[94] - Consolidated net sales for the three months ended September 30, 2025, reached $1,061,227, an increase of $77,468 (7.9%) from $983,759 in 2024[104] - Consolidated net income for the three months ended September 30, 2025, was $122,628, up $21,872 (21.7%) from $100,756 in 2024[104] Segment Performance - The Americas Welding segment reported net sales of $691,794 for Q3 2025, an 8.6% increase from Q3 2024[101] - The Harris Products Group saw a 14.8% increase in net sales for Q3 2025, reaching $149,804[101] - Americas Welding net sales increased by $54,768 (8.6%) to $691,794 for the three months ended September 30, 2025, compared to $637,026 in 2024[104] - International Welding adjusted EBIT rose by $5,720 (28.5%) to $25,821 for the three months ended September 30, 2025, compared to $20,101 in 2024[104] - The Harris Products Group net sales increased by $19,295 (14.8%) to $149,804 for the three months ended September 30, 2025, compared to $130,509 in 2024[104] Earnings and Adjusted Metrics - Adjusted EBIT for the nine months ended September 30, 2025, was $556,586, an increase of $29,813 (5.7%) compared to $526,773 in 2024[105] - Americas Welding adjusted EBIT decreased by $4,537 (1.1%) to $393,728 for the nine months ended September 30, 2025, compared to $398,265 in 2024[105] - The Harris Products Group adjusted EBIT increased by $17,530 (26.3%) to $84,291 for the nine months ended September 30, 2025, compared to $66,761 in 2024[105] - Consolidated adjusted EBIT as a percent of sales remained stable at 17.6% for the nine months ended September 30, 2025, compared to 17.6% in 2024[105] - Operating income for Q3 2025 was reported at $176,657 million, an increase from $145,560 million in Q3 2024, while adjusted operating income rose to $184,562 million from $169,756 million[110] - Net income for Q3 2025 was $122,628 million, compared to $100,756 million in Q3 2024, with adjusted net income increasing to $137,218 million from $122,368 million[110] Cash Flow and Capital Management - Cash provided by operating activities for the nine months ended September 30, 2025, was $566,208 million, up from $503,182 million in the same period of 2024, reflecting a $63,026 million increase[116] - The company had $292,997 million in cash and cash equivalents as of September 30, 2025, with $88,199 million in outstanding borrowings under its $1,031,386 million revolving credit facilities[112] - Anticipated capital expenditures for 2025 are projected to be between $100,000 million and $120,000 million, aimed at increasing capacity and improving operational effectiveness[120] - Cash used by financing activities increased to $425,394 million for the nine months ended September 30, 2025, from $152,298 million in the same period of 2024, primarily due to increased share repurchases[116] - The company has 5.3 million shares available for repurchase under its authorized program as of September 30, 2025[123] Tax and Risk Management - The effective tax rate for Q3 2025 was 26.1%, up from 23.6% in Q3 2024[94] - The effective tax rate as reported for Q3 2025 was 26.1%, with an adjusted effective tax rate of 21.1%[110] - The company reported a return on invested capital (ROIC) of 21.2% for the twelve months ended September 30, 2025, compared to 19.7% for the same period in 2024[127] - The average operating working capital to net sales ratio was 18.6% as of September 30, 2025, compared to 19.1% a year earlier[122] - The Company’s forward-looking statements involve risks and uncertainties that may affect operating results, including economic conditions and market volatility[129] - There have been no material changes in the Company's exposure to market risk since December 31, 2024[132] Impairment and Charges - Rationalization and asset impairment net charges decreased significantly to $5,831 in Q3 2025 from $20,227 in Q3 2024, a reduction of 71.2%[94]

Core Viewpoint - Lincoln Electric (NASDAQ: LECO) reported a modest earnings beat, but the initial stock reaction indicates that investors were expecting stronger results [1] Summary by Relevant Categories Earnings Performance - The company delivered earnings that exceeded expectations, although the magnitude of the beat was modest [1] Market Reaction - The stock's early reaction suggests that investor sentiment was not fully satisfied with the earnings report, indicating higher expectations from the market [1]

Financial Data and Key Metrics Changes - Sales increased by 8% to $1,061 million, driven by pricing benefits and resilient demand in certain segments [4][10] - Adjusted EPS performance rose by 15%, with record cash flow generation and a cash conversion rate of 149% [4][10] - Gross profit margin expanded by 90 basis points to 36.7%, with gross profit dollars increasing approximately 11% to $389 million [10] Business Line Data and Key Metrics Changes - Americas Welding sales increased approximately 9%, with a 9.6% price increase and a 1.4% contribution from acquisitions [12][14] - International Welding segment sales increased by 1.6%, with a 4% benefit from acquisitions and 2% favorable foreign exchange translation [15] - Harris Products Group sales increased by 15%, driven by 2% higher volumes and nearly 12% higher prices [16] Market Data and Key Metrics Changes - Organic sales increased by 5.6%, with stabilization in demand for short cycle consumables in the Americas [5][7] - Three of five end markets achieved steady to higher organic sales growth, with notable improvements in construction and agricultural equipment [8] - Automation sales were approximately $200 million, slightly below expectations due to project timing, but expected to increase by 15%-20% sequentially in Q4 [7][10] Company Strategy and Development Direction - The company is in the final quarter of its five-year Higher Standard 2025 strategy, focusing on long-term growth and shareholder returns [9] - Strategic investments and operational agility are aimed at offsetting inflation and volume headwinds [4][9] - The company is optimistic about future growth in capital spending, particularly in the automotive sector, expected to improve in early to mid-2026 [8] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges in capital spending, particularly in the automation portfolio, but expressed optimism about demand recovery [4][8] - The company expects traditional seasonality in sales performance moving into Q4, with modest sequential improvement in operating income margin [17] - Management highlighted a cautious optimism regarding European market recovery, although no immediate order intake was observed [54] Other Important Information - The company generated record cash flows from operations, with a year-to-date increase of approximately 13% [16] - A 5.3% increase in the annual dividend payout rate was announced, marking the 30th consecutive increase [17] - The effective tax rate was reported at 26.1%, primarily due to special item tax expenses [12] Q&A Session Summary Question: Demand trends in construction and infrastructure - Management noted continued strength in the Americas welding segment, with challenges in international markets [24] Question: Automation order rates and margin implications - Management indicated that while automation has higher fixed costs, an uptick in orders is expected to positively impact margins in the future [26][28] Question: Cycle positioning and demand recovery into 2026 - Management expressed cautious optimism about growth, particularly in consumables, but emphasized the need for consistent order activity before predicting a growth pattern [36][44] Question: European volume growth outlook - Management acknowledged encouraging commentary from European governments but remained cautious about actual order intake [54] Question: Volumes expected in Q4 and margin expectations - Management expects traditional seasonality in Q4, with Americas segment margins anticipated to be in the higher end of the 18%-19% range [58][59] Question: Pricing dynamics in the Harris Products Group - Management explained that pricing is largely driven by commodity prices and market adjustments, with expectations for continued pricing strength [67]

Core Insights - Lincoln Electric Holdings (LECO) reported revenue of $1.06 billion for the quarter ended September 2025, marking a year-over-year increase of 7.9% and an EPS of $2.47 compared to $2.14 a year ago, exceeding Zacks Consensus Estimates [1] Financial Performance - The revenue of $1.06 billion surpassed the Zacks Consensus Estimate of $1.04 billion by +1.91% [1] - The EPS of $2.47 also exceeded the consensus estimate of $2.39, resulting in a surprise of +3.35% [1] - The Harris Products Group net sales reached $149.8 million, exceeding the four-analyst average estimate of $140.54 million, with a year-over-year change of +14.8% [4] - Total sales for the Harris Products Group were $153.25 million, above the average estimate of $143.98 million, reflecting a year-over-year change of +14.7% [4] - International Welding total sales were $229.46 million, slightly above the average estimate of $229.27 million, with a year-over-year change of +2.6% [4] - Americas Welding total sales reached $721.85 million, surpassing the average estimate of $706.38 million, indicating a year-over-year change of +8.1% [4] Segment Performance - Net sales for Americas Welding were $691.79 million, exceeding the average estimate of $671.09 million, with a year-over-year change of +8.6% [4] - Inter-segment sales for International Welding were $9.83 million, above the average estimate of $7.69 million, representing a year-over-year change of +33.4% [4] - Adjusted EBIT for Americas Welding was $131.62 million, slightly below the five-analyst average estimate of $132.17 million [4] - Adjusted EBIT for International Welding was $25.82 million, exceeding the five-analyst average estimate of $25.27 million [4] Stock Performance - Lincoln Electric shares returned +1.1% over the past month, compared to the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential outperformance against the broader market in the near term [3]

Financial Data and Key Metrics Changes - Sales increased by 8% driven by pricing benefits and resilient demand in the Americas Welding and Harris Products Group segments [6][12] - Adjusted EPS performance rose by 15% with record cash flow generation and a cash conversion rate of 149% [6][12] - Gross profit margin expanded by 90 basis points to 36.7% despite lower volumes [12] Business Line Data and Key Metrics Changes - Americas Welding sales increased by approximately 9% due to higher prices and a contribution from acquisitions, with volume declines narrowing to about 2% [14][15] - International Welding segment sales rose by 1.6%, with a 4% benefit from acquisitions and 2% from favorable foreign exchange, but volumes decreased by 4% [16] - Harris Products Group sales increased by 15%, driven by 2% higher volumes and nearly 12% higher prices [17] Market Data and Key Metrics Changes - Organic sales in the Americas increased by a high single-digit percentage, while international heavy industries faced challenges [9][10] - The automation portfolio faced deferred capital spending, particularly in the automotive sector, but showed signs of improvement in order rates [8][10] Company Strategy and Development Direction - The company is in the final quarter of its five-year Higher Standard 2025 strategy, focusing on long-term growth and balanced capital allocation [10][11] - Strategic investments and operational agility are aimed at offsetting inflation and volume headwinds while maintaining a neutral price-cost position [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand trends in construction and infrastructure, with expectations for a gradual recovery in capital investment [22][36] - The company anticipates a modest sequential improvement in operating income margin and is maintaining its top-line and margin assumptions for the year [19][20] Other Important Information - The company generated record cash flows from operations, with a year-to-date increase of approximately 13% [18] - A 5.3% increase in the annual dividend payout rate was announced, marking the 30th consecutive increase [19] Q&A Session Summary Question: Demand trends in construction and infrastructure - Management noted continued strength in the Americas welding segment, with challenges in international markets [26] Question: Automation order rates and margin implications - Management indicated that while automation has higher fixed costs, an uptick in orders is expected to improve margins in the future [27][30] Question: Cycle positioning and demand recovery into 2026 - Management is cautiously optimistic about growth, emphasizing the need for consistent order activity before predicting a recovery [36][45] Question: Pricing dynamics and demand elasticity - Management observed that demand has been more resilient than expected, with volume trends starting to improve [42][43] Question: Volume expectations for the fourth quarter - Management expects traditional seasonality in the fourth quarter, with a modest sequential improvement in operating margins [55][56] Question: LIFO charges and accounting dynamics - Management clarified that LIFO accounting resets annually and that temporary cost savings will revert as volumes improve [59] Question: Harris Products Group pricing dynamics - Management explained that pricing is largely driven by commodity prices and market adjustments, with expectations for continued pricing strength [65]

Financial Performance Highlights - Net sales reached $1061.2 million, an increase of 7.9% year-over-year[8, 16] - Organic sales grew by 6%[8] - Adjusted EPS increased by 15% to $2.47[9, 16] - Cash flow from operations increased by 19% to $237 million, with a 149% cash conversion rate[8] - Returns to shareholders totaled $94 million, including $42 million in dividends and $53 million in share repurchases[11] Margin and Profitability - Adjusted operating income margin increased slightly by 10 bps to 17.4%[8, 16] - Adjusted ROIC performance increased by 80 bps to 22.2%[8] - Gross profit margin increased by 90 bps to 36.7%[16] Segment Performance - Americas Welding segment net sales increased by 8.6% year-over-year to $691.8 million[18] - International Welding segment net sales increased by 1.6% year-over-year to $219.6 million, with adjusted EBIT margin increasing by 230 bps to 11.3%[21] - The Harris Products Group net sales increased by 14.8% year-over-year to $149.8 million, with adjusted EBIT margin increasing by 190 bps to 18.3%[24] Sales Mix and End Sector Performance - Overall sales growth was driven by price increases of 7.8%, partially offset by a volume decrease of 2.2%[17] - Consumables sales increased by low-teens percent, while equipment sales increased by mid-single-digit percent[14] - Automation sales decreased by low double-digit percent[14] Full Year 2025 Assumptions - The company anticipates low-single-digit organic sales growth[37] - Expects a neutral price/cost environment[37] - Projects adjusted operating income margin to be steady to up slightly[37]

Core Insights - Lincoln Electric Holdings (LECO) reported quarterly earnings of $2.47 per share, exceeding the Zacks Consensus Estimate of $2.39 per share, and up from $2.14 per share a year ago [1][2] - The company achieved revenues of $1.06 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.91%, compared to $983.76 million in the same quarter last year [3] - The stock has increased approximately 25.1% year-to-date, outperforming the S&P 500's gain of 17.2% [4] Earnings Performance - The earnings surprise for the recent quarter was +3.35%, following a previous quarter surprise of +12.07% [2] - Over the last four quarters, Lincoln Electric has exceeded consensus EPS estimates three times [2] Revenue Performance - The company has topped consensus revenue estimates four times over the last four quarters [3] - Current consensus EPS estimate for the upcoming quarter is $2.56 on revenues of $1.08 billion, and for the current fiscal year, it is $9.71 on revenues of $4.22 billion [8] Industry Outlook - Lincoln Electric operates within the Manufacturing - Tools & Related Products industry, which is currently ranked in the top 30% of over 250 Zacks industries [9] - The industry has shown a strong correlation between near-term stock movements and trends in earnings estimate revisions [6] Future Expectations - The company's favorable estimate revisions trend prior to the earnings release has resulted in a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [7] - The upcoming earnings report for Stanley Black & Decker (SWK), another company in the same industry, is anticipated to provide further context for industry performance [10][11]