10-QPeriod: Q2 FY2024

LINDE PLC Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 2, 2024For Securities:LIN

Summary

Linde plc reported solid results for the second quarter and first half of 2024, demonstrating resilience and strategic execution. Total sales saw a modest 1% increase year-over-year for the quarter, driven primarily by higher pricing, which more than offset slight volume declines and negative currency translation impacts. The company continued to benefit from productivity initiatives. Reported operating profit increased by 9% for the quarter and 8% for the six-month period, with adjusted operating profit showing similar strength at 6% growth for both periods, underscoring effective cost management and pricing power. Diluted Earnings Per Share (EPS) also showed positive momentum, with reported EPS up 8% in the quarter and 9% year-to-date. The company's robust cash flow generation is evident, with cash provided by operations totaling $3,883 million for the first six months. Linde also continued its commitment to shareholder returns through significant share repurchases and dividend payments, underscoring a focus on both operational efficiency and capital allocation.

Financial Highlights

51 data points
Beta

Revenue

$8.27B

Net Income

$1.66B

20.1% Net Margin

EPS (Diluted)

$3.44

Total Assets

$80.22B

Cash & Equivalents

$4.63B

Free Cash Flow

$796.00M

Financial Statements
Beta
Revenue$8.27B
R&D Expenses$36.00M
SG&A Expenses$840.00M
Operating Income$2.18B
Net Income$1.66B
EPS (Basic)$3.46
EPS (Diluted)$3.44
Shares Outstanding (Basic)479.97M
Shares Outstanding (Diluted)483.18M

Key Highlights

  • 1Reported sales increased by 1% to $8,267 million in Q2 2024, primarily driven by a 3% increase in pricing.
  • 2Operating profit rose 9% year-over-year to $2,184 million in Q2 2024, with adjusted operating profit increasing 6% to $2,422 million, highlighting strong pricing and productivity gains.
  • 3Diluted EPS grew by 8% to $3.44 in Q2 2024 on a reported basis and 8% to $3.85 on an adjusted basis.
  • 4The Americas segment showed strong performance with sales up 3% and operating profit up 8% in Q2 2024, driven by pricing and productivity.
  • 5Cash provided by operating activities was $3,883 million for the first six months of 2024, demonstrating healthy cash generation.
  • 6The company repurchased $3,223 million of its ordinary shares in the second quarter of 2024 as part of its ongoing share repurchase programs.
  • 7Despite currency headwinds (2% sales decrease in Q2) and some cost inflation, Linde effectively managed its cost of sales, which decreased by 2% in the quarter.

Frequently Asked Questions

Linde's sales grew primarily due to a 3% increase in pricing, which offset flat volumes and a 2% negative impact from currency translation. Productivity initiatives also played a role in maintaining operational efficiency.

Linde demonstrated strong profitability growth. Reported operating profit increased by 9% year-over-year to $2,184 million, and adjusted operating profit increased by 6% to $2,422 million. This was driven by higher pricing and productivity initiatives, which more than compensated for cost inflation and currency translation effects.

Linde actively returned capital to shareholders. In the second quarter of 2024, the company repurchased $3,223 million of its ordinary shares. Cash dividends paid to Linde plc shareholders increased by $88 million for the first six months of 2024 compared to the prior year, reflecting a 9% increase in the quarterly dividend per share.

Currency translation had a negative impact on sales, decreasing them by 2% in the second quarter and 1% year-to-date, primarily due to the weakening of the Brazilian real, Chinese yuan, and Euro against the U.S. Dollar. However, the company's strong pricing and productivity measures helped to mitigate these impacts on overall profitability.