Lincoln Electric Sees Automation Surge, Prepares Physical AI Debut at FABTECH

Industrial demand is improving , with mid-single-digit consumables growth and rising demand for standard welding equipment and automation. Automotive remains weak, while automation growth is broadening across general industry, heavy industry and structural fabrication. Lincoln Electric plans to launch its first Physical AI offering at FABTECH in October and begin taking orders in the fourth quarter. The system combines vision technology, welding intelligence and collaborative robots to handle less-structured welding environments. The company expects pricing actions to restore price-cost neutrality in the fourth quarter , while Asia remains strong and Europe faces pressure. Lincoln is also continuing internal investment and bolt-on acquisitions, targeting 300–400 basis points of annual growth from M&A.

Lincoln Electric NASDAQ: LECO is seeing broad-based improvement in industrial demand, led by consumables, standard welding equipment and automation investments, while automotive remains the company’s principal weak end market, Executive Vice President, CFO and Treasurer Gabriel Bruno said during an investor discussion. Bruno said the company entered 2026 with strong order and quoting activity in automation, along with backlog visibility that supported expectations for volume growth in the second half of the year. Lincoln Electric typically has visibility into six to nine months of automation business through its backlog, he said.

Consumables, which account for more than half of Lincoln Electric’s business, provide an indicator of welding, fabrication and production activity across industrial markets. Bruno said consumable volumes in the Americas Welding segment rose by the mid-single digits in the second quarter, signaling that industrial activity was “holding and growing.” “Typically, after you’ve seen some consistent production activity, then you see conviction of capital investment,” Bruno said. He added that the company has seen an inflection in standard welding equipment demand as well as continued automation investment.

Automation demand has been strongest outside automotive, according to Bruno. The company has seen broad growth across general industries, heavy industries and structural fabrication, while automotive activity remained down by the mid-single digits in the second quarter. Lincoln Electric has seen significant automotive quoting activity but has not yet seen those opportunities convert into orders, Bruno said. He cited uncertainty around electric vehicles and internal-combustion vehicles, elections and other market dynamics as factors that have delayed investment and extended the life of existing vehicle platforms. The company is watching for orders associated with vehicle programs expected to launch in 2028 and 2029. Bruno said the next several months will be important in determining whether quoting activity translates into meaningful industry investment.

Automotive now represents about 40% of Lincoln Electric’s automation business, down from nearly half after the company acquired Fori Automation, which had been entirely automotive-focused. Bruno said Lincoln Electric would prefer a more balanced automation mix, with roughly one-third tied to general industry, one-third to heavy industry and structural fabrication, and one-third to automotive. The company views automation as a long-term growth driver rather than solely a cyclical capital-spending exposure. Bruno said Lincoln Electric expects high-single-digit organic growth in automation and believes industrial adoption remains in its early stages.