Linde (LIN) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached $8.36–$8.4 billion, up 2% year-over-year, driven by pricing, productivity, and Engineering segment growth.

• Adjusted operating profit rose 7% to $2.48 billion, with adjusted EPS up 9% to $3.94 and operating margin expanding to 29.6%, up 130 basis points.

• Project backlog increased to $10–$10.1 billion, including the largest ever sale-of-gas project with Dow Chemical.

• Operating cash flow was $2.73 billion, up 8% year-over-year and 42% sequentially; free cash flow for the quarter was $1.67 billion.

• Proactive cost reductions, including workforce reduction charges, are underway to address economic weakness.

Financial highlights

• Q3 sales: $8.36–$8.4 billion (+2% YoY); adjusted operating profit: $2.48 billion (+7% YoY); adjusted net income: $1.90 billion (+6% YoY).

• Adjusted EBITDA margin: 38.9% in Q3 2024; adjusted EBITDA: $3.25 billion (+6% YoY).

• CapEx increased 12% year-over-year to $1.07 billion; project CapEx up 40%, base CapEx down 4%.

• Free cash flow: $1.67 billion in Q3 2024; net debt at quarter-end: $17.1 billion.

• Operating cash flow for nine months: $6.61 billion; capital expenditures: $3.25 billion.

Outlook and guidance

• Q4 2024 adjusted EPS guidance: $3.86–$3.96, up 8–10% year-over-year, assuming economic contraction.

• Full-year 2024 adjusted EPS guidance: $15.40–$15.50, up 9–10% excluding FX.

• Full-year capital expenditures projected at $4.0–$4.5 billion.

• Guidance reflects continued caution due to persistent global industrial softness.