Lincoln Electric Unveils RISE Strategy, Targets Higher Growth and Margins by 2030 at Conference

Key Points

• Lincoln Electric launched the RISE strategy with a target 2030 revenue CAGR in the high single‑digits to low double‑digits, planning 300–400 bps of CAGR from bolt‑on acquisitions and aiming for ~300 bps of operating margin improvement through the cycle with incremental margins moving into the high‑20s.
• Management is prioritizing technology, automation and acquisitions to drive growth — automation is expected to grow at about 2x the pace of core welding with a mid‑teens EBIT margin target, and recent deals like Alloy Steel Australia and Vanair expand higher‑margin materials and mobile‑power capabilities.
• Near term, Lincoln raised its 2026 sales outlook to high single‑digit growth supported by pricing actions (targeting price‑cost neutrality by Q3), is more bullish on the Americas and parts of Asia, and said the Middle East conflict reduced Q1 revenue by about $8M with a potential $8–10M quarterly impact if it continues.

Lincoln Electric NASDAQ: LECO is aiming to accelerate growth and expand profitability under a newly launched long-term plan called the RISE strategy, Chief Financial Officer Gabe Bruno said at the 21st Annual Oppenheimer Industrial Growth Conference.

Speaking with conference moderator Brian, Bruno outlined how the global welding and automation company is positioning its operating model and investment priorities through 2030, while also discussing recent end-market trends, pricing actions, and the impact of geopolitical conflict on results.

RISE strategy and 2030 objectives

Bruno described Lincoln Electric as a global leader in arc welding solutions and a major player in fabrication and automation technologies, emphasizing that the company differentiates through technology, including automation capabilities and a broad portfolio spanning metals, power sources, and software.

The RISE strategy, which Bruno said is anchored in the company’s 130-year operating history, is designed to “accelerate our growth as well as shaping the operating model for the long term.” He broke down the acronym as follows:

• R — Reimagining how work gets done, including “center-led opportunities” and leveraging best practices globally
• I — Innovation, with continued investment to differentiate products and offerings
• S — Serving customers, including changes to go-to-market execution and supply chain practices
• E — Elevating the team, focusing on organizational development and employee engagement

Bruno said the company has established new 2030 objectives tied to RISE, including top-line growth and margin expansion. On revenue, he said Lincoln Electric is targeting “CAGR into high single digits, low double digits,” driven by both organic and inorganic growth. He added that the company is planning for “300 to 400 basis points of CAGR through bolt-on strategies,” including acquisitions that expand technology, regional footprint, and end-market exposure.

On profitability, Bruno pointed to a long-term pattern of margin improvement and said the company’s 2030 goal is to accelerate operating margin gains to “300 basis points of improved margins through the cycle,” up from an average of 200 basis points per cycle historically. He also said Lincoln Electric is targeting “high 20s” incremental margins, compared with a historical level in the mid-20s, and expects enterprise initiatives to drive about one-third of the operating model improvement.

End-market performance and geographic outlook

Bruno discussed recent trends across Lincoln Electric’s end markets, beginning with general industries, which he said represent about one-third of the business. He said first-quarter performance in general industries showed “high 30s percent type of growth,” spanning capital investment, projects, equipment, and consumables. In the Americas, he noted consumable volumes in general industries were up “low double digits,” and said April turned positive for standard equipment volumes.

In heavy industries, Bruno said results were up “mid-single digits,” and that the company has been navigating destocking in agriculture and construction. He said Lincoln Electric believes it has “hit the trough” and is “positioned for growth,” pointing to expected growth in the back half of 2026, helped by easier comparisons.

Energy was described as “flattish” in the first quarter, though Bruno said he remains “bullish” and expects volumes to improve as the year progresses. He added that in the Americas portion of the energy market, Lincoln Electric was up “mid to high teens.”

Transportation and structural markets were down “mid-teens,” Bruno said, citing project timing and comparisons in automotive. He said the company expects continued “choppiness” in project activity and is aligning expectations with broader industry views calling for low single-digit declines in automotive production.

Regionally, Bruno said he is “more bullish on the Americas segment,” including automation, noting that roughly 80% of the company’s automation portfolio is in the Americas. He cited strength in backlog entering 2026 and longer-cycle projects that could support growth in the back half of the year. He also flagged tougher comparisons for the Harris Products Group business in the second quarter due to customer stocking last year, but said Lincoln Electric expects “progressively improving volumes” in the back half.

Internationally, Bruno said the company is more constructive on Asia due to project activity in Southeast Asia, India, and Australia. He was “less constructive” on EMEA, though he noted “pockets of improving order trends” in core Europe while cautioning it is unclear whether that reflects “pre-buying” amid inflation or supply chain concerns. He also said Middle East conflict affected first-quarter results and remains an area the company is monitoring.

What management is watching: orders, volumes, and macro signals

Bruno said Lincoln Electric is monitoring daily order rates, shipments, and the balance between pricing and underlying volume. He said daily order activity increased as the company exited the first quarter, particularly in the Americas and into April. He added that consumables volume strength typically leads standard equipment investment, and noted equipment volumes improved in April.

For capital investment and automation-related demand, Bruno said the company is watching whether quoting activity translates into orders, while also following macro indicators such as CEO and consumer confidence, automotive production trends, PMI data, and industrial production measures.

Tariffs, pricing, and the Middle East conflict impact

Asked about tariffs under the current framework, Bruno said the impact is “very modest” and not a key driver of pricing. Instead, he said pricing decisions have been driven by broader inflationary pressures, which accelerated exiting the first quarter.

Bruno said Lincoln Electric raised its 2026 sales growth assumptions from mid-single-digit to high single-digit growth, driven by pricing that he characterized as 300 to 400 basis points of top-line benefit. He said roughly three-quarters of the pricing impact relates to the Harris business, citing metals inputs including silver and copper. Bruno said the company exited the first quarter “behind price cost by about 90 basis points,” took pricing actions that began taking hold in May, and expects actions to mature through the second quarter with an aim to return to a neutral price-cost position by the third quarter.

Bruno also quantified the impact of Middle East conflict on results, saying first-quarter revenue was reduced by about $8 million, including $5 million within the International segment and the remainder tied to exports from the Americas. He said Lincoln Electric expects an $8 million to $10 million per quarter top-line impact if the conflict persists, while also monitoring secondary effects such as supply chain disruption and inflation.

Technology investment, automation, and acquisition focus

Bruno emphasized Lincoln Electric’s focus on innovation, including its “Vitality Index” for equipment. He said the equipment Vitality Index in 2025 was 58%, meaning products introduced over the last five years represented 58% of equipment sales that year.

He also highlighted adjacent growth efforts and acquisitions. Bruno cited the company’s acquisition of Alloy Steel Australia as an example of leveraging its materials and metals expertise into wear solutions, which he said carries a “mid-20s” EBIT profile. He also pointed to the acquisition of Vanair in mobile power, noting prior joint development work between the companies.

On automation, Bruno said Lincoln Electric remains committed to growing the segment and believes automation can grow at “2x” the pace of core welding over time. He said the company has expanded its automation offering beyond welding fabrication—now about 40% of the portfolio—into areas including material handling, AGVs, and end-of-line testing. He also noted the introduction of cobots with proprietary software aimed at making automation easier for small and mid-sized fabricators, as well as the integration of vision and AI capabilities under what he called “LEAP,” stemming from prior “techquisition” activity.

Regarding automation profitability, Bruno said the company’s target is a mid-teens EBIT margin. He outlined three primary levers to reach that goal: volume leverage on a fixed cost base built for $1 billion-plus of sales, strategic positioning toward higher-margin pockets and mix improvement (including through acquisitions), and tighter execution using the Lincoln Business System and stronger project management from quote to delivery.

In closing remarks, Bruno said Lincoln Electric is focused on value creation through growth, margin expansion, and disciplined capital allocation. He added that the RISE strategy launch in the first quarter has been “well-received” both externally and internally, and said the company remains committed to delivering a compounding earnings profile over time.

About Lincoln Electric NASDAQ: LECO

Lincoln Electric Holdings, Inc NASDAQ: LECO is a global manufacturer and distributor of welding products, robotic welding systems, plasma and oxyfuel cutting equipment, and surface treatment systems. The company's portfolio encompasses welding consumables such as electrodes and wires, as well as power sources, torches, and automated welding cells. Lincoln Electric also offers software solutions and training services designed to optimize productivity and quality in fabrication and manufacturing operations.

Founded in 1895 by John C.

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