Linde (LIN) Q3 2025 earnings summary

Executive summary

• Adjusted diluted EPS for Q3 2025 was $4.21, up 7% year-over-year, with operating cash flow of $2.95 billion, up 8%, and operating margin at 29.7%.

• Sales reached $8.6 billion, up 3% year-over-year, driven by higher pricing, acquisitions, and favorable currency; backlog remains robust at $10 billion.

• Growth in Electronics and Food & Beverage offset by weaker Chemicals & Energy; Americas led segment gains, while Engineering declined.

• Net income attributable to shareholders was $1.93 billion for Q3 2025, up 24% year-over-year; adjusted net income was $1.99 billion, up 5%.

• Continued focus on sustainability, with GHG emissions intensity reduced by 49% since 2018 and nearly half of energy sourced from low-carbon sources.

Financial highlights

• Q3 2025 sales reached $8.615 billion, up 3% year-over-year; operating profit was $2.56 billion (29.7% margin), up 3% year-over-year.

• Adjusted EBITDA for Q3 2025 was $3.38 billion (39.2% of sales), up 4% year-over-year.

• Operating cash flow for Q3 was $2.95 billion, up 8% year-over-year; free cash flow was $1.67 billion.

• After-tax return on capital was 24.6% for Q3 2025.

• Cost of sales as a percentage of sales decreased to 50.8% in Q3 2025, reflecting higher pricing and productivity gains.

Outlook and guidance

• Q4 2025 adjusted EPS guidance is $4.10–$4.20, up 3–6% year-over-year; full-year 2025 adjusted EPS guidance is $16.35–$16.45, up 5–6% year-over-year.

• Full-year 2025 capex expected between $5.0 billion and $5.5 billion, supporting growth and maintenance.

• Management remains cautious on near-term industrial activity, with no clear catalysts for improvement in 2025.

• Guidance assumes potential economic contraction at the top end.

• The company expects to maintain sufficient liquidity and access to funding sources, with no anticipated limitations on capital markets access.