What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Lincoln Electric Holdings (LECO) revenue becomes net income?

For TTM through Q1 2026, Lincoln Electric Holdings turned $4.35B of revenue into $538M of net income — a net margin of 12.4%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Lincoln Electric Holdings (LECO) gross, operating, and net margins?

For TTM through Q1 2026, Lincoln Electric Holdings reported a gross margin of 36.1%, an operating margin of 17.1%, and a net margin of 12.4%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Lincoln Electric Holdings (LECO) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Lincoln Electric Holdings (LECO) Income Statement Waterfall

Revenue

$4.35B

Gross Margin

+36.1%

Operating Margin

+17.1%

Net Margin

+12.4%

Income statement waterfall for Lincoln Electric Holdings (LECO) — TTM through Q1 2026

Net income: $538M

Margin breakdown for Lincoln Electric Holdings (LECO) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$4.35B	$4.35B
Cost of Revenue	-$2.78B	$1.57B
Gross Profit	$1.57B	$1.57B
Operating Expenses	-$825M	$744M
Operating Income	$744M	$744M
Other Income / Expense	-$48.6M	$696M
Pre-tax Income	$696M	$696M
Income Tax	-$157M	$538M
Net Income	$538M	$538M

Revenue$4.35B
Cost of Revenue-$2.78B
Gross Profit$1.57B
Operating Expenses-$825M
Operating Income$744M
Other Income / Expense-$48.6M
Pre-tax Income$696M
Income Tax-$157M
Net Income$538M

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