Linde plc: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 5 February 2026: press release. Guidance figures: 4 new, 1 kept. The quarter’s numbers.

Key takeaways

Fourth-quarter sales rose 6%: Fourth-quarter sales were $8.8 billion, up 6%. Underlying sales rose 3%: 2% from price and 1% from volume, mainly project startups. Acquisitions added 1%. Source
Full-year adjusted EPS rose 6%: Full-year diluted EPS was $14.61 and adjusted EPS $16.46, up 6%. Operating profit was $8.9 billion; adjusted operating profit was $10.1 billion, up 4%. Source
Total project backlog above $10 billion: Total project backlog stood at $10.0 billion. Management said operating profit, cash flow and backlog each exceeded $10 billion in 2025. Source
Fourth-quarter adjusted margin 40bp lower: Adjusted operating profit margin was 29.5% in the fourth quarter, 40 basis points below the prior year. Reported operating profit margin was 23.0%. Source
Operating cash flow rose 10%: Operating cash flow was $10.4 billion in 2025, up 10%. Capital expenditures were $5.3 billion. Fourth-quarter operating cash flow was $3.0 billion, up 8%. Source
Adjusted figures exclude purchase accounting: Adjusted figures exclude Linde AG purchase accounting impacts and restructuring charge impacts. Fourth-quarter adjusted net income was $2.0 billion, up 4%. Source

“These results underscore the strength of our operating model and the exceptional execution by the Linde team worldwide.”
Sanjiv Lamba, Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Adjusted diluted EPS Source	Full year 2026	$17.40 to $17.90	New
Adjusted EPS growth excluding currency Source	Full year 2026	5% to 8%	New
Capital expenditures Source	Full year 2026	$5.0 billion to $5.5 billion	Kept
Adjusted diluted EPS Source	First quarter 2026	$4.20 to $4.30	New
Adjusted EPS growth excluding currency Source	First quarter 2026	3% to 6%	New

What changed from last quarter

New guidance: Adjusted EPS guidance for full year 2026 of $17.40 to $17.90 is given in this release; the prior release covered 2025. Source
New guidance: First-quarter 2026 adjusted EPS guidance of $4.20 to $4.30 is given in this release. Source
Guidance kept: The 2026 capex range of $5.0 billion to $5.5 billion matches the range in the prior release, which covered 2025. Source

Results and growth drivers

Fourth-quarter sales rose 6%: Fourth-quarter sales were $8.8 billion, up 6%. Underlying sales rose 3%: 2% from price and 1% from volume, mainly project startups. Acquisitions added 1%. Source
Full-year sales up 3% on price: Full-year sales were $34.0 billion, up 3%. Price added 2% and bolt-on acquisitions 1%, while volumes were stable. Source
Fourth-quarter adjusted profit up 4%: Fourth-quarter adjusted operating profit was $2.6 billion, up 4%; reported operating profit was $2.0 billion. Source
Full-year adjusted EPS rose 6%: Full-year diluted EPS was $14.61 and adjusted EPS $16.46, up 6%. Operating profit was $8.9 billion; adjusted operating profit was $10.1 billion, up 4%. Source
Fourth-quarter reported EPS fell 9%: Fourth-quarter net income was $1.5 billion, down 11%, and diluted EPS was $3.26, down 9%. Source

Segments and regions

Americas sales up 8%: Americas sales were $3.9 billion, up 8%. Underlying sales rose 4%, from 3% pricing and 1% volume, mainly electronics. Operating profit was 30.9% of sales. Source
APAC volumes lifted underlying sales: APAC sales were $1.7 billion, up 3%. Underlying sales rose 2% on volumes, mainly electronics and chemicals & energy, including project start-ups. Operating profit was 29.1% of sales. Source
EMEA sales up, underlying sales down: EMEA sales were $2.2 billion, up 6%, while underlying sales fell 2%: 1% higher pricing was more than offset by 3% lower volumes. Operating profit was 35.4% of sales. Source
Linde Engineering sales fell 2%: Linde Engineering sales were $615 million, down 2%. Operating profit was $103 million, or 16.7% of sales. Source

“Linde is well positioned to capture high-quality wins in 2026 and continue to create shareholder value regardless of macroeconomic uncertainties.”
Sanjiv Lamba, Chief Executive Officer

Demand and order book

Engineering order intake reported: Linde Engineering order intake was $434 million in the quarter. Third-party sale of equipment backlog stood at $2.7 billion. Source
Total project backlog above $10 billion: Total project backlog stood at $10.0 billion. Management said operating profit, cash flow and backlog each exceeded $10 billion in 2025. Source
EMEA volumes fell in chemicals: Fourth-quarter EMEA volumes fell 3%, mainly in chemicals & energy. Pricing offset only part of that decline. Source

Costs, margins and pricing

Fourth-quarter adjusted margin 40bp lower: Adjusted operating profit margin was 29.5% in the fourth quarter, 40 basis points below the prior year. Reported operating profit margin was 23.0%. Source
Full-year margin up 30 basis points: Full-year adjusted operating profit margin was 29.8% of sales, 30 basis points higher than 2024. Reported operating profit margin was 26.3%. Source
Return on capital reached 24.2%: Return on capital (ROC) reached 24.2% in 2025, alongside the 29.8% adjusted margin and 6% adjusted EPS growth. Source

Cash, capital and shareholder returns

Operating cash flow rose 10%: Operating cash flow was $10.4 billion in 2025, up 10%. Capital expenditures were $5.3 billion. Fourth-quarter operating cash flow was $3.0 billion, up 8%. Source
Fourth-quarter free cash flow $1.6 billion: After $1,458 million of capital expenditures, fourth-quarter free cash flow was $1,572 million. Source

Strategy, operating model and positioning

Capital allocation framed as disciplined: Management said disciplined capital allocation and network density underpin Linde's position, citing an increasing project pipeline. Source
Operating model credited for results: The chief executive credited the operating model and the team's execution for the year's results. Source
Positioned for 2026 wins: Management said Linde is well positioned to capture high-quality wins in 2026. Source

Adjusted measures and guidance basis

Adjusted figures exclude purchase accounting: Adjusted figures exclude Linde AG purchase accounting impacts and restructuring charge impacts. Fourth-quarter adjusted net income was $2.0 billion, up 4%. Source
Currency adds to guided growth: Guided first-quarter growth includes an assumed 3% favorable currency effect; the full-year figure includes about 1 point. Source
Adjusted guidance lacks GAAP reconciliation: Adjusted 2026 EPS guidance excludes items such as cost reduction and other charges. The company cannot reconcile it to GAAP without unreasonable effort. Source

Coming up, as management said on 5 February 2026

First-quarter 2026 earnings: Management said first-quarter 2026 adjusted EPS is expected at $4.20 to $4.30, the next guided period. Source

Figures management reported

Figure	Reported
Total project backlog Source	$10.0 billion
Linde Engineering third-party sale of equipment backlog Source	$2.7 billion
Linde Engineering order intake, fourth quarter Source	$434 million

Risks management discussed

External: Management referred to macroeconomic uncertainties when describing Linde's ability to keep creating shareholder value. Source

Earlier plans management reported on

Not stated: Prior-release guidance for full-year 2025 adjusted EPS. This release does not state whether it was met.
Not stated: Prior-release guidance for fourth-quarter 2025 adjusted EPS. This release does not state whether it was met.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Linde Reports Full-Year and Fourth-Quarter 2025 Results

Full-Year Highlights

Sales $34.0 billion, up 3% YoY, underlying sales up 2%
Operating profit $8.9 billion, adjusted operating profit $10.1 billion, up 4%
Operating profit margin 26.3%; adjusted operating profit margin 29.8%
EPS $14.61; adjusted EPS $16.46, up 6% YoY
Operating cash flow of $10.4 billion, up 10% YoY
Total project backlog of $10.0 billion
Returned $7.4 billion to shareholders through dividends and share repurchases

Fourth-Quarter Highlights

Sales $8.8 billion, up 6% YoY, underlying sales up 3%
Operating profit $2.0 billion, adjusted operating profit $2.6 billion, up 4%
Operating profit margin 23.0%; adjusted operating profit margin 29.5%
EPS $3.26; adjusted EPS $4.20, up 6% YoY
Operating cash flow of $3.0 billion, up 8% YoY

2026 Guidance

First-quarter 2026 adjusted EPS guidance $4.20 - $4.30, represents 6%-9% growth or 3%-6% ex FX
Full-year 2026 adjusted EPS guidance $17.40 - $17.90, represents 6%-9% growth or 5%-8% ex FX

Woking, UK, February 5, 2026 - Linde plc (Nasdaq: LIN) today reported fourth-quarter 2025 net income of $1,530 million and diluted earnings per share of $3.26, down 11% and 9%, respectively. Excluding Linde AG purchase accounting impacts and restructuring charge impacts, adjusted net income was $1,968 million, up 4% versus prior year. Adjusted earnings per share was $4.20, 6% above prior year.

Linde’s sales for the fourth quarter were $8,764 million, up 6% versus prior year. Compared to prior year, underlying sales increased 3% from 2% price attainment and 1% volumes, primarily from project startups. In addition, acquisitions increased sales by 1%.

Fourth-quarter operating profit was $2,018 million. Adjusted operating profit of $2,585 million was up 4% versus prior year led by higher price and continued productivity initiatives across all segments. Adjusted operating profit margin of 29.5% was 40 basis points below prior year.

Fourth-quarter operating cash flow of $3,030 million increased 8% versus prior year. After capital expenditures of $1,458 million, free cash flow was $1,572 million. During the quarter, the company returned $2,085 million to shareholders through dividends and stock repurchases, net of issuances.

For full-year 2025, sales were $34.0 billion, up 3% versus 2024. Compared to prior year, sales increased 3% from 2% price attainment and 1% bolt-on acquisitions, while volumes remained stable. Operating profit was $8.9 billion and adjusted operating profit was $10.1 billion, 4% above prior year. Adjusted operating profit margin was 29.8% of sales, 30 basis points higher than 2024. Diluted earnings per share was $14.61 and adjusted diluted earnings per share was $16.46, up 6% versus prior year.

In 2025, Linde generated strong operating cash flow of $10.4 billion. The company invested $5.3 billion in capital expenditures and returned $7.4 billion to shareholders in the form of dividends and share buybacks, net of issuances.

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Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, “Linde delivered another year of resilient performance, with operating profit, cash flow and backlog each exceeding $10 billion. Operating margins expanded to 29.8%, ROC reached 24.2% and EPS grew 6%. These results underscore the strength of our operating model and the exceptional execution by the Linde team worldwide.”

Lamba continued, “With disciplined capital allocation, strong network density and an increasing project pipeline, Linde is well positioned to capture high-quality wins in 2026 and continue to create shareholder value regardless of macroeconomic uncertainties.”

For the full year 2026, the company expects adjusted diluted earnings per share to be in the range of $17.40 to $17.90, up 6% to 9% versus prior year or 5% to 8% when excluding estimated currency tailwinds. Full-year capital expenditures are expected to be in the range of $5.0 billion to $5.5 billion to support operating growth requirements, including the contractual sale of gas backlog. For the first quarter of 2026, adjusted earnings per share is expected to be in the range of $4.20 to $4.30, up 6% to 9% above prior-year quarter or 3% to 6% when assumed estimated favorable currency of 3%.

Fourth-Quarter 2025 Results by Segment

Americas sales of $3,884 million were up 8% versus prior year. Compared with fourth quarter 2024, underlying sales increased 4%, driven by 3% higher pricing and 1% higher volumes, primarily in the electronics end market. Operating profit of $1,202 million was 30.9% of sales.

APAC (Asia Pacific) sales of $1,726 million were up 3% versus prior year. Compared with fourth quarter 2024, underlying sales increased 2%, driven by 2% higher volumes, primarily in the electronics and chemicals & energy end markets, including project start-ups. Operating profit of $502 million was 29.1% of sales.

EMEA (Europe, Middle East & Africa) sales of $2,178 million were up 6% versus prior year. Compared with fourth quarter 2024, underlying sales decreased 2%, as 1% higher pricing was more than offset by 3% lower volumes, mainly in the chemicals & energy end market. Operating profit of $772 million was 35.4% of sales.

Linde Engineering sales were $615 million, down 2% versus prior year, and operating profit was $103 million or 16.7% of sales. Order intake for the quarter was $434 million and third-party sale of equipment backlog was $2.7 billion.

Earnings Call

A teleconference on Linde’s fourth-quarter 2025 results is being held today at 9:00 am EDT.

Live conference call

US Toll-Free Dial-In Number: 1 888 770 7292 UK Toll-Free Dial-In Number: 0800 358 0970 Access code: 6877110

Live webcast (listen-only)

https://www.linde.com/investors/financial-reports

Materials to be used in the teleconference are also available on the website.

About Linde Linde is a leading global industrial gases and engineering company with 2025 sales of $34 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet. Linde serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde’s industrial gases and technologies are used in countless applications, enabling space exploration and launch technologies, delivering ultra-high-purity and specialty gases for semiconductor manufacturing, providing life-saving medical oxygen and enabling clean hydrogen production and carbon capture to reduce greenhouse gas emissions. Linde also delivers state-of-the-art gas processing solutions to support customer growth, efficiency improvements and emissions reductions.

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For more information about the company and its products and services, please visit www.linde.com

Adjusted amounts, free cash flow and return on capital are non-GAAP measures. See the attachments for a summary of non-GAAP reconciliations and calculations for adjusted amounts.

Attachments: Summary Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information and Appendix: Non-GAAP Measures and Reconciliations.

*Note: We are providing adjusted earnings per share (“EPS”) guidance for 2026. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.

Forward-looking Statements

Forward-looking statements notice

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. They are based on management’s reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances, including trade conflicts and tariffs; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics, pandemics such as COVID-19, and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of changes in pension plan liabilities; the impact of tax, environmental, healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of investigations, litigation and regulatory proceedings; the impact of potential unusual or non-recurring items; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; the impact of information technology system failures, network disruptions and breaches in data security; and the effectiveness and speed of integrating new acquisitions into the business. These risks and uncertainties may cause future results or circumstances to differ materially from adjusted projections, estimates or other forward-looking statements.

Linde plc assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A. Risk Factors in Linde plc’s Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on February 25, 2025 which should be reviewed carefully. Please consider Linde plc’s forward-looking statements in light of those risks.

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