01—Abstract
Summary
Summary of the 8-K filed February 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Linde plc (Nasdaq: LIN) reported full-year and fourth-quarter 2024 results on February 6, 2025, furnished under Item 2.02 of this 8-K.
Full-year 2024 sales were $33.0 billiona, flat year over year, with underlying sales up 2% driven by price attainment and stable volumes. Adjusted operating profit rose 7% to $9.7 billion, lifting the adjusted operating margin to 29.5%, up 190 basis points. Diluted EPS was $13.62 (up 8%), and adjusted EPS was $15.51 (up 9%, or 10% excluding currency).
Fourth-quarter adjusted operating margin expanded 250 basis points to 29.9%, and adjusted EPS of $3.97b rose 11%, or 13% excluding currency headwinds. Operating cash flow was $9.4 billion for the year, with $4.5 billion of capex, leaving substantial free cash flow that funded $7.1 billion of dividends and net buybacks. Management's 2025 guidance calls for adjusted EPS of $16.15 to $16.55, representing 4% to 7% growth reported, or 8% to 11% excluding estimated currency headwinds.
Q1 2025 adjusted EPS guidance is $3.85 to $3.95c, which includes an assumed 4% unfavorable currency impact. Capital expenditures are expected to be $5.0 billion to $5.5 billion, including the contractual sale of gas backlog. The company ended 2024 with a total project backlog of $10.4 billion, including a largest-ever product supply agreement tied to clean energy projects.
The main risk to the outlook is currency translation, which management has flagged as weakening macro conditions persist. For investors, the filing shows steady pricing-driven margin expansion and disciplined capital returns, with the currency headwind the key variable for the 2025 earnings trajectory. The filing itself is a routine earnings disclosure; the detailed financials appear in the attached press release exhibit, which should be reviewed alongside the Form 10-K risk factors.
02—Key points
Key Highlights
- FY2024 sales of $33.0 billion were flat reported and up 2% underlying, driven by 2% price attainment and stable volumes.
- FY2024 adjusted operating margin reached 29.5%, up 190 basis points, with adjusted operating profit of $9.7 billion up 7%.
- FY2024 diluted EPS was $13.62 (up 8%); adjusted EPS was $15.51 (up 9%, or 10% ex-FX).
- Q4 2024 adjusted operating margin of 29.9% expanded 250 basis points; Q4 adjusted EPS of $3.97 rose 11% (13% ex-FX).
- 2025 adjusted EPS guidance of $16.15 to $16.55 implies 8% to 11% growth excluding estimated currency headwinds (4% to 7% reported).
- 2025 capex guidance of $5.0 to $5.5 billion; 2024 operating cash flow was $9.4 billion and $7.1 billion was returned to shareholders.
- Total project backlog stood at $10.4 billion at year-end, including the company's largest-ever clean energy product supply agreement.
03—Questions
Frequently Asked Questions
How did Linde perform in 2024 on an underlying basis?
Linde's 2024 sales were flat at $33.0 billion reported, but underlying sales grew 2% from price attainment and stable volumes. Currency translation was the main drag on reported results. Adjusted operating profit grew 7% and adjusted operating margin expanded 190 basis points to 29.5%, showing that pricing and productivity drove profitability gains.
What is the 2025 earnings outlook?
Management guided full-year 2025 adjusted diluted EPS to $16.15 to $16.55, which is 4% to 7% growth as reported and 8% to 11% excluding estimated currency headwinds. For Q1 2025, adjusted EPS guidance is $3.85 to $3.95, including an assumed 4% unfavorable currency impact.
How much is Linde investing and returning to shareholders?
In 2024 Linde invested $4.5 billion in capital expenditures and returned $7.1 billion to shareholders through dividends and share repurchases, net of issuances. For 2025, capex is expected between $5.0 billion and $5.5 billion, including the contractual sale of gas backlog.
What are the key risks to the outlook?
Management highlighted weakening global macro conditions, especially foreign currency translation, as a headwind. The filing notes that results may differ materially from forward-looking statements due to factors including trade conflicts and tariffs, input cost changes, and currency and interest rate movements. Investors should review Item 1A of the 2023 Form 10-K referenced in the filing.
What does the project backlog signal for future growth?
Linde ended 2024 with a total project backlog of $10.4 billion, and Linde Engineering's third-party equipment backlog was $3.3 billion. Management pointed to its largest-ever product supply agreement with a high-quality customer, tied to clean energy, as supporting earnings growth in the years ahead.
04—Continue