LECO

Lincoln Electric Holdings, Inc.

HALAL — SCREEN DOES NOT PASSstock

Is LECO Halal?

Global manufacturer of welding, cutting, and joining products — a permissible industrial-equipment manufacturing business with a strong financial-screen profile.

What You Should Know

Lincoln Electric manufactures welding, cutting, joining and consumable products through its welding and Harris businesses. General-purpose industrial equipment is generally permissible, while defense, shipbuilding and end-market allocation remain qualitative. Its March 31, 2026 Form 10-Q reports assets of $3,900.395 million, conservative debt/leases of $1,364.841 million, cash of $298.903 million, receivables of $684.891 million and quarterly revenue of $1,121.434 million. Debt/assets is 34.99%, liquidity/assets is 7.66% and receivables plus cash/assets is 25.22%; the asset-based debt screen fails, while disclosed investment interest is $1.385 million, or 0.12% of revenue.

⚠️ Concerns

  • Known debt/assets is 34.99%, above examined 33.333% limits
  • Defense and shipbuilding end markets require qualified review
  • Disclosed investment interest is 0.12% of revenue; no fixed purification percentage asserted
  • Steel, copper and other metal input-cost exposure
  • Industrial production and capital-equipment cycles

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
34.99%Above limit
Below 33.333% under FTSE Yasaar

1,364.841 / 3,900.395

Cash + interest-bearing securities / assets
7.66%Within limit
Below 33.333% under FTSE Yasaar

298.903 / 3,900.395

Receivables + cash / assets
25.22%Within limit
Below 50% under FTSE Yasaar

983.794 / 3,900.395

Non-compliant income / revenue
0.12%Within limit
No more than 5% under FTSE Yasaar

1.385 / 1,121.434

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 34.99%, above the examined 33.333% limit; liquidity/assets is 7.66%, receivables-plus-cash/assets is 25.22% and disclosed investment interest is 0.12%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 34.99%, above the examined MSCI 33.33% limit; liquidity and receivables-plus-cash remain below their limits.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 34.99%, above the examined Malaysia limit; identifiable liquidity/assets is 7.66%. This is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A properly licensed and reproducible historical market-cap series is not stored; asset-based debt screening already fails.

Business-activity disclosure

Lincoln Electric manufactures welding, cutting, joining and consumable products. General-purpose industrial equipment is generally permissible, while defense, shipbuilding and end-customer allocation remain qualitative.

Limitation: The filing does not provide a universal prohibited-revenue numerator across industrial and defense end markets.

Purification

A small disclosed investment-interest amount is reported, but no universal prohibited-revenue numerator or scholar-specific purification instruction is provided.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Lincoln Electric's March 31, 2026 Form 10-Q for the quarter ended that date.
  • Conservative debt combines $1,313.640 million current and noncurrent debt with $51.201 million operating-lease liabilities.
  • Cash is $298.903 million; receivables combine $598.315 million net accounts receivable and $86.576 million unbilled contracts receivable.
  • Quarterly revenue is $1,121.434 million and disclosed investment interest income is $1.385 million, or 0.12% of revenue.
  • Welding and cutting products are generally permissible, while defense and shipbuilding end uses remain qualitative.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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