Linde (LIN) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached $8.36–$8.4 billion, up 2% year-over-year, with adjusted operating profit up 7% to $2.48 billion and adjusted EPS up 9% to $3.94; productivity gains and price increases offset cost inflation and currency headwinds.

• Project backlog increased to $10–$10.1 billion, including the largest ever sale-of-gas project with Dow Chemical, and $2 billion+ in new clean hydrogen projects.

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

• Proactive cost reductions included $145–$150 million in restructuring charges, targeting 2% of the workforce.

• Ongoing share repurchases and increased dividends reflect strong capital returns to shareholders.

Financial highlights

• Q3 2024 sales: $8.36–$8.4 billion (+2% YoY, +1% QoQ); adjusted operating profit: $2.48 billion (+7% YoY); adjusted net income: $1.90 billion (+6% YoY).

• Adjusted operating margin: 29.6% (+130 bps YoY); adjusted EBITDA margin: 38.9%.

• CapEx: $1.07 billion in Q3 2024 (+12% YoY); base CapEx $573 million, project CapEx $493 million.

• Net debt at quarter-end: $17.1 billion; cash and equivalents: $5.2 billion.

• Free cash flow: $1.67 billion in Q3 2024.

Outlook and guidance

• Q4 2024 adjusted EPS guidance: $3.86–$3.96, up 8–10% year-over-year; full-year 2024 adjusted EPS: $15.40–$15.50, up 9–10% excluding FX.

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

• Guidance assumes continued macro weakness, economic contraction at midpoint, and ongoing cost inflation and currency volatility.