10-QPeriod: Q2 FY2026

LINDE PLC Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 31, 2026For Securities:LIN

Summary

Linde plc reported a strong second quarter and first half of 2026, demonstrating robust top-line growth and improved profitability. Sales increased by 9% for both the quarter and the year-to-date period, driven by a combination of higher pricing, volume growth in key end markets such as electronics, manufacturing, and chemicals & energy, and favorable currency translations. The company also saw a positive contribution from acquisitions and cost pass-through mechanisms. Profitability metrics, both reported and adjusted, showed significant year-over-year improvements, underscoring the effectiveness of productivity initiatives and pricing strategies in offsetting cost inflation. Management's discussion highlights the ongoing effectiveness of productivity initiatives and pricing strategies in driving performance, even amidst cost inflation. The company continues to benefit from favorable currency movements, particularly against the Euro and Chinese Yuan. The Americas and APAC regions were notable performers, with strong sales growth and improved operating profit. Linde's commitment to shareholder returns is evident through its continued share repurchase program and dividend payments. Overall, the financial results indicate a healthy business with strong operational execution and positive momentum heading into the second half of the year.

Key Highlights

  • 1Total sales increased by 9% in Q2 2026 ($9,289 million) and by 9% for the six months ended June 30, 2026 ($18,070 million) compared to the prior year periods.
  • 2Operating profit increased by 8% to $2,554 million in Q2 2026 and by 10% to $4,993 million for the six months ended June 30, 2026, on a reported GAAP basis.
  • 3Adjusted diluted EPS grew by 10% to $4.50 in Q2 2026 and by 10% to $8.82 for the six months ended June 30, 2026.
  • 4The Americas segment showed strong sales growth of 7% in Q2 2026 and 8% year-to-date, with operating profit up 5% and 8% respectively.
  • 5The APAC segment experienced robust sales growth of 13% in Q2 2026 and 12% year-to-date, with operating profit increasing by 8% and 7% respectively.
  • 6Capital expenditures increased by 8% to $3,042 million for the six months ended June 30, 2026, indicating continued investment in new plant and production equipment.
  • 7The company repurchased shares totaling $1,732 million in Q2 2026, with $5.6 billion remaining authorized under its current share repurchase program.

Frequently Asked Questions

Linde's sales growth in the second quarter of 2026 was driven by a combination of factors. Higher pricing contributed 2% to sales growth, while volumes in key end markets like electronics, manufacturing, and chemicals & energy also increased sales by 2%. Currency translations had a positive impact of 2%, driven by the strengthening of currencies like the Brazilian real, Chinese yuan, and Euro against the U.S. dollar. Acquisitions contributed 1% to sales growth, along with a 1% increase from cost pass-through and engineering sales.

On a reported GAAP basis, operating profit increased by 8% to $2,554 million, and diluted EPS grew by 11% to $4.15. On an adjusted basis, which excludes certain non-recurring items, operating profit increased by 7% to $2,744 million, and adjusted diluted EPS rose by 10% to $4.50. These increases reflect the company's ability to manage costs and leverage pricing strategies effectively.

Linde provides quarterly updates on its operating results, material trends affecting financial performance, and financial guidance through its quarterly earnings releases and investor teleconferences. These updates are made available on the company's website, www.linde.com, and are not incorporated into this filing.

For the first six months of 2026, Linde reported net cash provided by operating activities of $4,511 million, an increase of 3% year-over-year, primarily due to higher net income. Capital expenditures for the same period were $2,780 million, an increase of $253 million, mainly for investments in new plant and production equipment to support backlog growth. The company also noted a significant backlog of large projects under construction totaling approximately $8.1 billion at June 30, 2026.