10-KPeriod: FY2021

LINDE PLC Annual Report, Year Ended Dec 31, 2021

Filed February 28, 2022For Securities:LIN

Summary

Linde plc, a global leader in industrial gases and engineering, reported robust financial performance for the fiscal year ending December 31, 2021. Sales increased by 13% to $30.8 billion, driven by strong volume growth across all key end markets and favorable pricing. The company also saw a significant improvement in profitability, with reported operating profit up 50% and adjusted operating profit up 24%, reflecting effective cost management, productivity initiatives, and the benefits of higher volumes. Operationally, Linde's global segments demonstrated strong performance. The Americas, EMEA, and APAC regions all experienced double-digit sales growth, highlighting broad-based demand. The company's Engineering segment also showed modest growth. Linde generated substantial cash flow from operations, exceeding $9.7 billion, which supported significant investments in capital expenditures, share repurchases totaling $4.6 billion, and dividend payments. The company also announced a new $10 billion share repurchase program for 2022, signaling confidence in its financial position and commitment to returning capital to shareholders.

Financial Highlights

57 data points
Beta

Revenue

$30.79B

Net Income

$3.83B

12.4% Net Margin

EPS (Diluted)

$7.33

Total Assets

$81.61B

Cash & Equivalents

$2.82B

Free Cash Flow

$6.64B

Financial Statements
Beta
Revenue$30.79B
R&D Expenses$143.00M
SG&A Expenses$3.19B
Operating Income$4.98B
Interest Expense$227.00M
Net Income$3.83B
EPS (Basic)$7.40
EPS (Diluted)$7.33
Shares Outstanding (Basic)516.90M
Shares Outstanding (Diluted)521.88M

Key Highlights

  • 1Sales increased 13% to $30.8 billion in 2021 compared to $27.2 billion in 2020, driven by volume growth (8%), higher pricing (3%), and favorable currency translation (2%).
  • 2Reported operating profit grew 50% to $4.98 billion, and adjusted operating profit increased 24% to $7.18 billion, indicating strong operational leverage and cost management.
  • 3Diluted EPS from continuing operations saw a substantial increase, with reported EPS rising 56% to $7.32 and adjusted EPS up 30% to $10.69.
  • 4Cash flow from operations reached $9.73 billion, a 31% increase year-over-year, enabling robust capital allocation.
  • 5The company repurchased $4.56 billion of its ordinary shares under its 2021 program and announced a new $10 billion share repurchase program for 2022.
  • 6Linde's global segments (Americas, EMEA, APAC) all reported strong sales growth, with Americas up 16%, EMEA up 19%, and APAC up 8% (though impacted by divestitures).
  • 7The company continues to focus on productivity initiatives and cost reduction programs, which contributed to margin expansion.

Frequently Asked Questions

Linde plc reported strong financial performance in 2021. Sales increased 13% to $30.8 billion, driven by volume growth and pricing. Operating profit saw significant improvements, with reported operating profit up 50% and adjusted operating profit up 24%. Diluted earnings per share also increased substantially on both reported and adjusted bases.

Linde generated $9.7 billion in cash flow from operations in 2021. This strong cash generation was used for capital expenditures of $3.1 billion, share repurchases of $4.6 billion, and dividend payments of $2.2 billion. The company also announced a significant new $10 billion share repurchase program for 2022.

Linde's sales growth in 2021 was primarily driven by an 8% increase in volume across its end markets, a 3% increase in pricing, and a 2% favorable impact from currency translation. Contractual cost pass-throughs also contributed 3% to sales.

The report highlights Linde's focus on clean energy, particularly hydrogen, as a growth opportunity. The company's Engineering business is developing technologies for hydrogen production and carbon capture, aligning with global efforts to reduce greenhouse gas emissions. Linde believes its business model and contracts are well-positioned to manage regulatory changes related to climate change and capitalize on opportunities in renewable energy and emission reduction technologies.