Generac vs Lincoln Electric
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KIRA’s take AI analyst
I put Generac and Lincoln Electric side by side, using each one’s latest annual report. Here is what stands out:
- Lincoln Electric is the larger business, with $4.2B of revenue in fiscal 2025 against $4.2B for Generac.
- Lincoln Electric grew revenue faster (5.6%, against −2.0%).
- Lincoln Electric kept more of each dollar of sales as operating profit (17.0% operating margin, against 6.9%).
- Lincoln Electric turned more of its sales into free cash flow (12.6% FCF margin, against 6.4%).
- Lincoln Electric earned a higher return on the capital invested in it (24.5%, against 6.5%).
- Investors pay more for each dollar of Generac’s earnings: a P/E of 43.5x against 25.8x for Lincoln Electric.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Generac
GNRC
2/11
5-year growthGross margin
Lincoln Electric
LECO
9/11
Revenue growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | GNRC FY25 | LECO FY25 |
|---|---|---|
| Size | ||
| Market cap | $11.3B | $14.3B |
| Revenue | $4.2B | $4.2B |
| Free cash flow | $268M | $534M |
| Net income | $160M | $521M |
| Growth | ||
| Revenue growth | −2.0% | 5.6% |
| 5-year growth | 11.1% | 9.8% |
| Share count change | −1.8% | −2.3% |
| Profitability | ||
| Gross margin | 38.3% | 36.3% |
| Operating margin | 6.9% | 17.0% |
| Net margin | 3.8% | 12.3% |
| FCF margin | 6.4% | 12.6% |
| Return on capital | 6.5% | 24.5% |
| Return on equity | 6.2% | 37.2% |
| Balance sheet | ||
| Net debt | $1.0B | $841M |
| Net debt / EBITDA | 2.1x | 1.0x |
| Dividends and buybacks | $148M | $507M |
| Valuation & quality | ||
| P/E | 43.5x | 25.8x |
| Piotroski F-score | 6 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.