01—Abstract
Summary
Summary of the 8-K filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Linde plc (Nasdaq: LIN) reported first-quarter 2026 results on May 1, 2026, with sales of $8.78 billiona, up 8% year over year, though only 3% on an underlying basis after adding 5 points of favorable currency and 1 point from acquisitions.
Underlying growth came from 2% price attainment and 1% volume, with Americas driving the gains and EMEA volumes declining. Reported GAAP diluted EPS was $3.98b, up 13%, while adjusted diluted EPS (excluding Linde AG merger purchase accounting impacts) was $4.33, up 10%. Adjusted operating margin held at 30.0%, down 10 basis points year over year, and the company highlighted a 24% return on capital in the quarter.
Cash generation was solid but seasonally softer, with operating cash flow of $2.24 billionc (up 4%) and free cash flow of $898 million after $1.34 billion of capex. Linde returned $1.545 billion to shareholders through dividends and net buybacks during the quarter. Cash and equivalents fell to $3.96 billion from $5.06 billion at year-end, and total debt was $26.3 billion, so net debt rose to about $22.4 billion from $21.9 billion.
Management guided second-quarter 2026 adjusted diluted EPS to $4.40 to $4.50d (up 8% to 10%) and reaffirmed full-year adjusted EPS of $17.60 to $17.90 (up 7% to 9%, including roughly 1% favorable currency). Full-year capex is expected at $5.0 to $5.5 billion, including growth investment tied to a $7.1 billion contracted sale-of-gas project backlog. Investors should weigh the strong EPS growth and steady margins against the modest underlying volume growth, weak EMEA trends, and rising leverage.
02—Key points
Key Highlights
- Reported sales of $8,781 million, up 8% YoY, but underlying sales up only 3% (2% price, 1% volume), with currency adding 5 points and acquisitions 1 point
- GAAP diluted EPS of $3.98 (up 13%); adjusted diluted EPS of $4.33 (up 10%), excluding Linde AG purchase accounting impacts of $0.35 per share
- Adjusted operating margin of 30.0%, down 10 basis points YoY; reported operating margin of 27.8%, up from 26.9%
- Operating cash flow of $2,240 million (up 4%) and free cash flow of $898 million after $1,342 million of capex
- Returned $1,545 million to shareholders through dividends and net repurchases; cash fell to $3,959 million and net debt rose to about $22.4 billion
- Full-year 2026 adjusted EPS guidance of $17.60 to $17.90 (up 7% to 9%) and Q2 2026 guidance of $4.40 to $4.50, with capex of $5.0 to $5.5 billion
- Segment mix: Americas sales up 10% with 31.6% margin; EMEA underlying sales down 2% on 3% lower volumes; APAC up 11% with margin down 130 bps; Linde Engineering sales down 8%
03—Questions
Frequently Asked Questions
How much of Linde's first-quarter sales growth came from underlying business performance?
Reported sales rose 8% to $8.78 billion, but only about 3 points came from underlying growth (2% pricing and 1% volume). Roughly 5 points came from favorable currency and 1 point from acquisitions, so investors should view the underlying growth rate as the more relevant measure of organic momentum.
Why do GAAP and adjusted EPS differ, and how large is the gap?
The gap is driven by non-cash purchase accounting impacts from the 2018 Linde AG merger, mainly depreciation and amortization of fair-value step-ups on fixed and intangible assets. These reduced diluted EPS by $0.35 in Q1 2026, with no cost reduction charges in the quarter. Management treats adjusted EPS as the better gauge of operating performance, while GAAP EPS of $3.98 remains the reported figure.
Is Linde's guidance for 2026 changing?
The filing presents full-year 2026 adjusted EPS guidance of $17.60 to $17.90, representing 7% to 9% growth and including about 1% favorable currency. The release does not describe a revision, but it is presented as the company's current outlook. Q2 2026 adjusted EPS is guided to $4.40 to $4.50, up 8% to 10%. Forward-looking statements carry risks including trade tariffs, currency and interest rate moves, and energy costs.
What are the main concerns in the quarter's results?
Underlying volume growth was modest at 1% overall, and EMEA underlying sales fell 2% on 3% lower volumes. APAC operating margin fell 130 basis points to 28.0%, and Linde Engineering sales declined 8%. Free cash flow of $898 million did not fully cover shareholder returns of $1.5 billion, and net debt rose to about $22.4 billion.
04—Continue