Record EPS and Operating Margin Amidst …

Written by

admin

in

  • EPS: $4.09, representing a 6% increase from the prior year.

  • Operating Margin: 30.1%, an all-time quarterly high, increased by 80 basis points year-over-year.

  • Operating Cash Flow: Grew 15% year-over-year.

  • Return on Capital (ROC): 25.1%, leading the industry.

  • Sales: $8.5 billion, a 3% increase over the prior year and 5% sequentially.

  • Underlying Sales Growth: 1% over the prior year and 3% sequentially, excluding acquisitions and FX impacts.

  • Volume Change: Down 1% from last year, with a 2% sequential increase.

  • Acquisitions Impact: Lifted sales by 1% over the prior year.

  • Capital Allocation: $6.5 billion deployed year-to-date, with $2.8 billion in investments meeting risk-reward criteria.

  • Guidance for Q3 EPS: $4.10 to $4.20, representing 4% to 7% growth over last year.

  • Full Year EPS Guidance: $16.30 to $16.50, indicating 5% to 6% growth, including a 1% currency tailwind.

Release Date: August 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • Linde PLC (NASDAQ:LIN) achieved record quarterly EPS of $4.09 and an operating margin of 30.1%, despite a challenging macro environment.

  • Operating cash flows grew by 15%, and the return on capital (ROC) of 25.1% continues to lead the industry.

  • The sale of gas project backlog has doubled over four years, reaching $7.1 billion, with significant turnover and execution.

  • Linde PLC (NASDAQ:LIN) has strong customer commitments in the space sector, supporting double-digit growth in commercial space launches.

  • The company maintains a disciplined capital allocation policy, deploying $6.5 billion year-to-date, with a focus on investments that meet risk-reward criteria.

  • Volumes are down 1% from last year, primarily due to weaker base volumes in EMEA, offsetting contributions from the project backlog.

  • Europe is expected to continue experiencing softening demand, particularly in Western Europe, with no catalyst for economic improvement this year.

  • The electronics end market faces challenges, with helium pricing down high single digits due to oversupply, particularly in Asia.

  • Linde PLC (NASDAQ:LIN) remains cautious about the economic outlook, with guidance reflecting potential economic contraction and currency volatility.

  • The company faces challenges in Europe due to de-industrialization and potential plant closures, impacting long-term growth prospects.

Q: Can you provide insights into the geographical and end-market performance expectations for the rest of the year? A: Sanjiv Lamba, CEO, explained that in the Americas, volumes are expected to be flat or slightly up, driven by resilient end markets like space launches, while Europe is likely to see continued demand softening, particularly in Western Europe. In Asia, China is expected to remain flat, with growth in EVs and electronics offset by weaker metals and chemicals. India shows strong growth potential, while the overall APAC region is expected to be flat.

Continue Reading

More posts