Linde (LIN) investor relations material

Executive summary

• Q2 2026 sales reached $9.3 billion, up 9% year-over-year, with adjusted diluted EPS up 10% and net income up 9%, driven by strong growth in electronics, manufacturing, and chemicals & energy.

• Project backlog reached $11.1 billion, with a major U.S. electronics contract contributing $1 billion and robust proposal activity supporting future growth.

• Margin performance was below expectations due to the U.S. home care business and cost inflation, but sequential improvement is anticipated.

• All regions posted profit growth, with APAC leading at 13% year-over-year sales growth.

• Returned $1.59 billion to shareholders via dividends and stock repurchases in Q2.

Financial highlights

• Q2 2026 sales: $9.3 billion (+9% YoY), adjusted operating profit: $2.74 billion (+7% YoY), adjusted diluted EPS: $4.50 (+10% YoY), net income: $1.93 billion (+9% YoY).

• Adjusted operating margin: 29.5%; reported margin: 27.5%, down 60 basis points year-over-year due to cost inflation.

• Adjusted EBITDA margin: 38.5%–39% of sales.

• Operating cash flow for Q2 was $2.3 billion (+3% YoY); free cash flow was $833 million.

• Net debt at Q2 end was $23.1 billion.

Outlook and guidance

• Q3 2026 adjusted EPS guidance: $4.45–$4.55 (+6% to +8% YoY); full-year 2026 adjusted EPS: $17.70–$17.90 (+8% to +9% YoY), with a 1% FX tailwind.

• Full-year capital expenditures projected at $5.5–$6.0 billion.

• Management expects margin improvement in the second half, with actions underway to address cost and productivity.