10-QPeriod: Q2 FY2025

LINDE PLC Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 1, 2025For Securities:LIN

Summary

Linde plc reported solid financial results for the second quarter and first half of 2025, demonstrating continued growth and operational strength. Sales saw a healthy increase of 3% in the quarter and 1% year-to-date, driven primarily by higher pricing and strategic acquisitions, which helped offset a slight decline in volumes. The company's operating profit also showed robust growth, with a reported increase of 8% for the quarter and 6% year-to-date, reflecting effective pricing strategies and productivity initiatives that more than compensated for cost inflation. Adjusted metrics further underscore Linde's strong performance, with adjusted EPS rising by 6% for both the quarter and the year-to-date period. The company continues to manage its cost structure effectively, as evidenced by improvements in cost of sales as a percentage of sales and well-controlled SG&A expenses. Furthermore, Linde maintained significant capital allocation flexibility, with strong operating cash flow and substantial share repurchase activity, underscoring its commitment to shareholder returns and ongoing investment in growth opportunities.

Financial Highlights

51 data points
Beta

Revenue

$8.49B

Net Income

$1.77B

20.8% Net Margin

EPS (Diluted)

$3.73

Total Assets

$86.08B

Cash & Equivalents

$4.79B

Free Cash Flow

$954.00M

Financial Statements
Beta
Revenue$8.49B
R&D Expenses$38.00M
SG&A Expenses$870.00M
Operating Income$2.35B
Net Income$1.77B
EPS (Basic)$3.75
EPS (Diluted)$3.73
Shares Outstanding (Basic)470.87M
Shares Outstanding (Diluted)473.57M

Key Highlights

  • 1Linde plc reported a 3% increase in sales for the second quarter of 2025 to $8,495 million, driven by higher pricing (2%) and acquisitions (1%).
  • 2Reported operating profit increased by 8% year-over-year to $2,354 million in Q2 2025, with operating margin expanding to 27.7% from 26.4% in Q2 2024.
  • 3Adjusted diluted earnings per share (EPS) grew by 6% to $4.09 in Q2 2025 compared to $3.85 in the prior year, demonstrating effective operational management.
  • 4The Americas segment continues to be a strong performer, with sales up 4% and operating profit up 4% in Q2 2025, primarily driven by pricing and productivity.
  • 5Despite a slight decrease in overall volumes, the company successfully offset this with price increases and new project start-ups across key segments.
  • 6Linde continued its robust share repurchase program, with approximately $2.4 billion in shares repurchased in Q2 2025, underscoring a commitment to returning capital to shareholders.
  • 7Operating cash flow for the first six months of 2025 increased by 13% to $4,372 million, indicating strong cash generation capabilities.

Frequently Asked Questions

Linde's sales growth in the second quarter of 2025 was primarily driven by higher price attainment, which contributed 2% to sales growth. Acquisitions also played a role, adding 1% to sales. While volumes saw a slight decrease of 1%, this was offset by other factors and strategic pricing.

Linde effectively managed cost inflation and volume declines through strong pricing strategies and productivity initiatives. These measures, combined with cost pass-through mechanisms for energy costs, more than offset the adverse impacts of cost inflation and lower volumes on operating profit.

Linde utilizes adjusted financial metrics, such as adjusted operating profit and adjusted EPS, to provide a clearer view of the company's ongoing business performance by excluding items like cost reduction programs and merger-related purchase accounting impacts. These measures are intended to supplement GAAP results and are useful for evaluating operational trends and comparability.

While specific forward-looking guidance is not detailed in this 10-Q, the company's continued investment in capital expenditures for new projects and a strong share repurchase program indicate a strategy focused on both growth and shareholder returns. The company also highlighted its ample liquidity and access to funding sources, signaling financial flexibility.