Linde (LIN) investor relations material

Executive summary

• Q2 2025 sales reached $8.5B, up 3% year-over-year, with adjusted operating profit rising 6% to $2.6B and margin at 30.1%, supported by price attainment, productivity, and acquisitions.

• Adjusted EPS grew 6% to $4.09, with operating cash flow up 15% to $2.2B and free cash flow at $954M; $1.8B returned to shareholders in Q2.

• Project backlog stands at $7.1B for sale-of-gas and $3.2B for sale-of-plant contracts, supporting future growth.

• Growth strategy includes disciplined project backlog, base CapEx investments, bolt-on acquisitions, and sustainability initiatives reducing GHG emissions intensity.

• Significant events include new long-term contracts, U.S. space sector investments, and benefits from U.S. tax legislation.

Financial highlights

• Q2 2025 adjusted sales: $8.5B (+3% YoY), adjusted operating profit: $2.6B (+6% YoY), adjusted net income: $1.94B (+4% YoY), and net income: $1.77B (+6% YoY).

• Adjusted EBITDA for Q2: $3.35B (39.2% margin); free cash flow: $954M; capex: $1.26B (+11% YoY).

• After-tax return on capital: 25.1%; adjusted effective tax rate: 23.9–24.3%.

• Net debt at quarter-end: $21.1B; cash and equivalents: $4.8B.

• Cost of sales as a percent of sales decreased to 50.7% year-over-year.

Outlook and guidance

• Q3 2025 adjusted EPS guidance: $4.10–$4.20, up 4–7% year-over-year, with a 1% currency tailwind.

• Full-year 2025 adjusted EPS guidance: $16.30–$16.50, up 5–6%; capex expected at $5.0–$5.5B.

• Guidance remains cautious due to currency volatility, economic uncertainty, and assumes economic contraction at the top end.

• Expectation to return to double-digit EPS growth as volume headwinds ease and internal initiatives deliver.