Linde plc: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 31 July 2026: press release. Guidance figures: 2 raised, 1 new. The quarter’s numbers.

Key takeaways

Sales rose 9%, helped by currency: Sales were $9,289 million, up 9%. Currency added 2%, acquisitions added 1%, and underlying sales rose 4% from 2% price and 2% volume. Source
Adjusted EPS rose 10%: Adjusted diluted EPS was $4.50, against $4.09 in the prior-year quarter per the appendix. Adjusted figures exclude non-GAAP items. Source
APAC grew fastest on volumes: APAC sales rose 13%, with underlying growth of 8% from 6% volumes in electronics, chemicals & energy and project start-ups. Operating margin was 28.4%. Source
Gas sale backlog reached $8.1 billion: A further long-term U.S. electronics supply contract lifted the sale of gas backlog from $7.1 billion in the first-quarter release to a record $8.1 billion. Source
Cost inflation offset price gains: Operating margin was 60 basis points lower than a year earlier, as price and productivity gains were offset by cost inflation. Source
Free cash flow of $833 million: Capital expenditures were $1,438 million, leaving free cash flow of $833 million. The prior-year quarter free cash flow was $954 million per the appendix. Source

“Linde employees delivered another solid quarter, generating record sales and EPS while maintaining industry-leading profitability with 29.5% operating margin and 23.5% return on capital.”
Chief Executive Officer Sanjiv Lamba

Guidance

Area	Period	Figure	Against last quarter
Adjusted diluted EPS Source	Third quarter of 2026	$4.45 to $4.55	New
Adjusted diluted EPS Source	Full year 2026	$17.70 to $17.90	Raised from $17.60 to $17.90
Capital expenditures Source	Full year 2026	$5.5 billion to $6.0 billion	Raised from $5.0 billion to $5.5 billion

What changed from last quarter

Guidance raised: Full-year 2026 adjusted EPS range moved to $17.70 to $17.90 from $17.60 to $17.90, so the low end was raised. Source
Guidance raised: Full-year capex range moved to $5.5 billion to $6.0 billion from $5.0 billion to $5.5 billion in the first-quarter release. Source
New guidance: A third-quarter adjusted EPS range was given. The first-quarter release gave a range for the second quarter only. Source
New: A further long-term U.S. electronics supply contract was signed, lifting the sale of gas backlog from $7.1 billion to $8.1 billion. Source

Results and growth drivers

Sales rose 9%, helped by currency: Sales were $9,289 million, up 9%. Currency added 2%, acquisitions added 1%, and underlying sales rose 4% from 2% price and 2% volume. Source
Adjusted EPS rose 10%: Adjusted diluted EPS was $4.50, against $4.09 in the prior-year quarter per the appendix. Adjusted figures exclude non-GAAP items. Source
Underlying sales grew 4%: Underlying growth came from 2% price attainment and 2% volume, mainly in electronics, manufacturing and chemicals & energy end markets. Source
Reported net income and EPS rose: Reported net income was $1,928 million, up 9%, and diluted EPS was $4.15, up 11%. Operating profit was $2,554 million on a reported basis. Source

Segments and regions

Americas sales up 7%: Americas underlying sales rose 4%, with 2% higher pricing and 2% higher volumes, mainly in electronics and manufacturing. Operating margin was 31.2%. Source
APAC grew fastest on volumes: APAC sales rose 13%, with underlying growth of 8% from 6% volumes in electronics, chemicals & energy and project start-ups. Operating margin was 28.4%. Source
EMEA volumes lower, pricing higher: EMEA sales rose 7%, but underlying sales grew 1%, with 2% higher pricing and lower volumes mainly in manufacturing. Operating margin was 35.7%. Source
Engineering sales up 13%: Engineering operating profit was $100 million, 16.0% of sales, compared with 19.5% in the first quarter per the first-quarter release. Source

“Regardless of the economic climate, I’m confident the Linde team will continue to secure high-quality future growth projects while delivering long-term shareholder value.”
Chief Executive Officer Sanjiv Lamba

Demand and the order book

Gas sale backlog reached $8.1 billion: A further long-term U.S. electronics supply contract lifted the sale of gas backlog from $7.1 billion in the first-quarter release to a record $8.1 billion. Source
Proposal activity stays robust: Customer proposals remain robust, mainly in electronics. Management said this gives it confidence to grow the backlog further. Source
Engineering order intake rose: Linde Engineering order intake was $871 million in the quarter, up from $640 million in the first quarter, and third-party equipment backlog was $3.0 billion. Source

Costs, margins and pricing

Adjusted operating profit up 7%: Adjusted operating profit was $2,744 million, against $2,556 million a year earlier per the appendix. Adjusted margin was 29.5%, against 30.1%. Source
Cost inflation offset price gains: Operating margin was 60 basis points lower than a year earlier, as price and productivity gains were offset by cost inflation. Source
Adjusted net income excludes purchase accounting: Adjusted net income excludes Linde AG purchase accounting impacts, a non-GAAP measure. On that basis it was $2,089 million, up 8%. Source

Cash flow and shareholder returns

Operating cash flow up 3%: Operating cash flow was $2,271 million, up 3% from $2,211 million in the prior-year quarter per the appendix. Source
Free cash flow of $833 million: Capital expenditures were $1,438 million, leaving free cash flow of $833 million. The prior-year quarter free cash flow was $954 million per the appendix. Source
$1.59 billion returned to shareholders: Dividends and stock repurchases, net of issuances, totalled $1,590 million in the quarter. Source

Strategy and people

Confidence in future growth projects: Management said it remains confident in securing high-quality future growth projects and delivering long-term shareholder value, regardless of the economic climate. Source
Employees credited for results: Management credited employees for another solid quarter with record sales and EPS, alongside industry-leading profitability. Source
Return on capital at 23.5%: Management cited a 23.5% return on capital alongside the 29.5% adjusted operating margin. Source

Coming up, as management said on 31 July 2026

Third-quarter adjusted EPS range: The third-quarter adjusted EPS range is the next quarter-specific figure management gave in this release. Source
Further backlog growth expected: Management said proposal activity gives it confidence to grow the backlog further. Source

Figures management reported

Figure	Reported
Sale of gas backlog Source	$8.1 billion
Project backlog Source	$11 billion
Third-party sale of equipment backlog Source	$3.0 billion
Americas underlying volume growth Source	2% higher volumes
APAC underlying volume growth Source	6% higher volumes

Risks management discussed

Operational: Cost inflation offset price and productivity gains, reducing operating margin by 60 basis points year on year. Source
Demand: EMEA underlying sales grew only 1% because volumes fell, mainly in the manufacturing end market. Source
Operational: APAC operating margin fell 120 basis points, or 70 basis points excluding cost pass-through effects. Source

Earlier plans management reported on

Not stated: The first-quarter release gave this second-quarter range. The second-quarter release reports adjusted EPS of $4.50 and does not state whether the range was met.
Not stated: The first-quarter release set this capex range. The second-quarter release gives a higher full-year range and does not state the earlier plan's status.

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 Second-Quarter 2026 Results

Second-Quarter Highlights

Sales $9.3 billion, up 9% YoY, underlying sales up 4%
Operating profit $2.6 billion, adjusted operating profit $2.7 billion, up 7%
Operating profit margin 27.5%; adjusted operating profit margin 29.5%
EPS $4.15, up 11%; adjusted EPS $4.50, up 10% YoY
Second-quarter operating cash flow of $2.3 billion, up 3% YoY
Full-year 2026 adjusted EPS guidance of $17.70 - $17.90 representing 8% to 9% growth
Project backlog $11 billion

Woking, UK, July 31, 2026 - Linde plc (Nasdaq: LIN) today reported second-quarter 2026 net income of $1,928 million and diluted earnings per share of $4.15, up 9% and up 11%, respectively. Excluding Linde AG purchase accounting impacts, adjusted net income was $2,089 million, up 8% versus prior year. Adjusted diluted earnings per share was $4.50, 10% above prior year.

Linde’s sales for the second quarter were $9,289 million, up 9% versus prior year including 2% favorable currency impact. Compared to prior year, underlying sales increased 4% from 2% price attainment and 2% volumes, primarily in the electronics, manufacturing and chemicals & energy end markets. Acquisitions increased sales by 1%.

Second-quarter operating profit was $2,554 million. Adjusted operating profit of $2,744 million was up 7% versus prior year resulting in an adjusted operating profit margin of 29.5%. Operating margin was 60 basis points lower than the previous year as higher price and productivity initiatives were offset by cost inflation.

Second-quarter operating cash flow of $2,271 million increased 3% versus prior year. After capital expenditures of $1,438 million, free cash flow was $833 million. During the quarter, the company returned $1,590 million to shareholders through dividends and stock repurchases, net of issuances.

Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, “Linde employees delivered another solid quarter, generating record sales and EPS while maintaining industry-leading profitability with 29.5% operating margin and 23.5% return on capital. During the quarter, we also signed another long-term electronics supply contract in the U.S., increasing the sale of gas backlog to a record $8.1 billion.”

Lamba continued, “Customer proposal activity remains robust, primarily across the electronics end market, giving us confidence to further grow the backlog. Regardless of the economic climate, I’m confident the Linde team will continue to secure high-quality future growth projects while delivering long-term shareholder value.”

For the third quarter of 2026, Linde expects adjusted diluted earnings per share in the range of $4.45 to $4.55, up 6% to 8% versus prior-year quarter, with no expected impact from foreign currency translation.

For the full year 2026, the company expects adjusted diluted earnings per share to be in the range of $17.70 to $17.90, up 8% to 9% when assuming favorable currency of 1% versus prior year. Full-year capital expenditures are expected to be in the range of $5.5 billion to $6.0 billion to support growth and maintenance requirements including the $8.1 billion contractual sale of gas project backlog.

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Second-Quarter 2026 Results by Segment

Americas sales of $4,083 million were up 7% versus prior year. Compared with second quarter 2025, underlying sales increased 4%, driven by 2% higher pricing and 2% higher volumes, primarily in the electronics and manufacturing end markets. Operating profit of $1,272 million was 31.2% of sales, 50 basis points below prior year.

APAC (Asia Pacific) sales of $1,870 million were up 13% versus prior year. Compared with second quarter 2025, underlying sales increased 8%, driven by 6% volumes primarily in the electronics and chemicals & energy end markets and project start-ups and 2% higher pricing. Operating profit of $531 million was 28.4% of sales, 120 basis points below prior year or 70 basis points when excluding the effects of cost pass-through.

EMEA (Europe, Middle East & Africa) sales of $2,303 million were up 7% versus prior year. Compared with second quarter 2025, underlying sales increased 1%, driven by 2% higher pricing and lower volumes, primarily in the manufacturing end market. Operating profit of $823 million was 35.7% of sales, 40 basis points below prior year or 10 basis points higher when excluding the effects of cost pass-through.

Linde Engineering sales were $625 million, up 13% versus prior year, and operating profit was $100 million or 16.0% of sales. Order intake for the quarter was $871 million and third-party sale of equipment backlog was $3.0 billion.

Earnings Call

A teleconference on Linde’s second-quarter 2026 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.

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.

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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, and the impact of 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, 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 cybersecurity breaches; 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, 2025 filed with the SEC on February 25, 2026 which should be reviewed carefully. Please consider Linde plc’s forward-looking statements in light of those risks.

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