Linde (LIN) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were $8.1 billion, flat year-over-year, with adjusted EPS up 5% to $3.95 and operating margin expanding 120 bps to 30.1%; underlying sales rose 1% from price increases, offset by lower volumes in manufacturing and metals & mining.

• Operating profit increased 4% to $2.44 billion, with all segments expanding margins; adjusted EBITDA margin reached 39.6%.

• Defensive business model with nearly two-thirds of sales from resilient end-markets, onsite contracts, and asset rentals, supporting stable revenues and cash flow.

• Project backlog exceeds $10 billion, with $7 billion in sale of gas projects secured by long-term contracts.

• Management remains confident in delivering high-quality growth despite macroeconomic volatility and industrial softness.

Financial highlights

• Adjusted net income for Q1 2025 was $1.88 billion, up 3% year-over-year; net income attributable to Linde plc was $1.67 billion.

• Operating cash flow rose 11% year-over-year to $2.2 billion; free cash flow was $891 million after $1.27 billion in capex.

• Capex increased 21% year-over-year to $1.27 billion, with project capex up 58%.

• Adjusted EBITDA margin was 39.6%; adjusted after-tax return on capital reached 25.7%.

• Adjusted effective tax rate was 23.5%.

Outlook and guidance

• Q2 2025 adjusted EPS guidance is $3.95–$4.05, up 3–5% year-over-year (5–7% ex-FX), assuming recessionary conditions.

• Full-year 2025 adjusted EPS guidance is $16.20–$16.50, up 4–6% (6–8% ex-FX); capex planned at $5.0–$5.5 billion.

• Management remains cautious on macroeconomic outlook but confident in business model resilience.