The Short Answer
Lincoln Electric stock (LECO) is generally considered halal by most Islamic scholars and Sharia screening criteria. Lincoln Electric is the global leader in the design, development, and manufacture of arc-welding products, automated-joining systems, and cutting equipment.
Welding-equipment manufacturing, cutting-equipment manufacturing, and welding-consumables manufacturing are unambiguously permissible at the activity level under standard Sharia methodology. The financial screen passes comfortably.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Lincoln Electric's Business Activity
Lincoln Electric operates through reporting segments including Americas Welding, International Welding, and The Harris Products Group:
- Arc-welding products: Welding machines, power sources, and consumables (electrodes and filler metals)
- Automation: Automated-joining, assembly-and-cutting systems and robotic-welding solutions
- Cutting: Plasma-and-oxy-fuel cutting equipment
- Harris Products Group: Cutting, soldering, and brazing products and gas-control equipment
Manufacturing physical welding, cutting, and joining equipment is a permissible general-purpose industrial activity.
Concerns to Be Aware Of
1. Minor Interest Income
Minor interest income on cash and short-term investment balances means purification of a small portion of dividends may be advisable.
2. Leverage Profile
The debt-to-market-cap ratio should be re-verified against the 33% Sharia threshold at the time of investment given Lincoln Electric's acquisition activity and share-repurchase program. It generally sits well below the threshold.
3. End-Market Mix
Welding-and-cutting products are sold into mixed end-markets (general-industrial, construction, energy, automotive, and shipbuilding) via distribution, and a portion may reach defense-and-shipbuilding customers. Under standard Sharia screening methodology, the relevant classification is general-purpose industrial-equipment manufacturing rather than the look-through end-customer mix.
Financial Ratios (2025)
Based on Lincoln Electric's most recent financial statements:
- Total Debt / Market Cap: Generally well under 33% — verify at time of investment ✅
- Interest Income / Revenue: Well under 5% ✅
- Haram Revenue: Negligible ✅
- Business Activity: Permissible industrial-equipment manufacturing ✅
Verdict from Major Screening Agencies
Lincoln Electric stock is generally screened as compliant (halal) with purification by:
- Zoya App — Compliant with purification ✅
- MSCI Islamic criteria — Generally included ✅
- Most major Sharia advisory boards — Compliant ✅
Bottom Line
Lincoln Electric Holdings (LECO) is generally halal with purification for Muslim investors. The core business — welding, cutting, and joining equipment manufacturing — is unambiguously permissible at the activity level, and the financial screen passes comfortably with low leverage.
For Muslim investors seeking industrial-equipment exposure, LECO sits alongside other halal-screened names like Dover (DOV) and Nordson (NDSN).
Want to check if another stock is halal? Use our free screener.
Open Halal Checker →