Linde (LIN) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales reached $8.5B, up 3% year-over-year, with adjusted EPS of $4.09, up 6%, and operating margin at a record 30.1% despite macroeconomic headwinds.

• Operating cash flow grew 15% year-over-year to $2.2B, with free cash flow at $954M and $1.8B returned to shareholders via dividends and buybacks in Q2.

• Project backlog stands at $10.3B, including $7.1B in sale-of-gas contracts, supporting future growth, with a focus on electronics and clean energy in the Americas.

• Base CapEx investments, bolt-on acquisitions, and sustainability initiatives contributed to incremental growth and reduced GHG emissions intensity.

• Significant events include new long-term clean energy contracts, the Bluepoint JV in Louisiana, and major supply agreements in the U.S. Gulf Coast.

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 adjusted EBITDA: $3.35B (39.2% margin).

• Free cash flow for Q2: $954M; net debt at quarter-end: $21.1B.

• Capex for Q2: $1.26B (+11% YoY), with $614M in project capex.

• Return on capital: 25.1%, industry-leading.

• 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%, with a 1% currency tailwind.

• Full-year capex expected at $5.0–$5.5B, supporting a $7.1B project backlog.

• Guidance reflects improved FX assumptions but offsets with a more negative economic outlook.

• Management remains confident in returning to double-digit EPS growth as volume headwinds abate.