Lincoln Electric Holdings, Inc. (LECO) Income Statement

Quarterly revenue has climbed from $983.8M at the 2024 trough to roughly $1.22B, an increase of about 19.5% in eight quarters, with the acceleration concentrated in the last three prints (11.6%, 12.1%, 15.2%). Given the three consecutive quarters of contraction that preceded this run (-3.7%, -4.8%, -3.4%), the pattern looks more like a cyclical rebound in fabrication and capital spending than a proven structural step-up in growth. Investors should treat the durability of double-digit growth as unproven until it survives at least one decelerating industrial production cycle.

Gross margin has oscillated within a 34.8%-37.6% band and the latest print sits at the floor of that range, which is notable because the mix shift toward automation and consumables pull-through would ordinarily be expected to lift, not compress, the gross line. The likely interpretation is that steel, copper and aluminum input movements have outpaced surcharge realization in the quarter, a lag effect management has historically flagged as reversible, but one that may also reflect more competitive equipment pricing as volumes recover. Against ITW's 44.1% gross margin, LECO's structural position remains meaningfully lower, so any claim of superior pricing power should be tested against the durability of the 34.8% figure rather than the 2024 highs.

Operating income rose to $211.4M from $148.8M over the same span, a 42% gain against roughly 19.5% revenue growth, which appears to confirm genuine operating leverage rather than a purely top-line-driven earnings recovery. However, part of this may be expense timing rather than permanent efficiency: SG&A jumped to $224.9M in 2026Q2 then fell back to $205.8M in Q3, a swing consistent with the variable incentive accrual pattern rather than a fixed-cost restructuring. Investors should monitor whether SG&A intensity holds near 17% of sales if volume growth decelerates, since the leverage case weakens considerably if that line reverts toward its 19% historical norm.