Linde (LIN) Q4 2025 earnings summary

Executive summary

• Achieved record annual and adjusted EPS, operating cash flow, and margins despite challenging industrial markets, with strong progress in sustainability and diversity initiatives.

• Maintained industry-leading 24.2% return on capital and returned over $7 billion to shareholders.

• Project backlog at a record $10 billion, with significant investments in clean energy and advanced electronics.

• Delivered YoY sales growth in all end-markets, led by Electronics and project startups, and closed over 20 bolt-on acquisitions globally.

• Initiated restructuring actions in Q4 to align resources for 2026, expecting benefits mainly in the second half.

Financial highlights

• Full-year 2025 sales reached $34.0 billion, up 3% YoY; operating profit $10.1 billion, up 4%; net income $7.77 billion, up 4%.

• Diluted/adjusted EPS for 2025 was $16.46, up 6% YoY; Q4 2025 EPS was $4.20, up 6% YoY.

• Operating cash flow for 2025 was $10.4 billion, up 10% YoY; capex increased 17% to $5.3 billion.

• EBIT margin for 2025 was 29.8%, up 30 bps YoY; ROC at 24.2%.

• Returned $7.4 billion to shareholders in 2025 through dividends and buybacks.

Outlook and guidance

• 2026 adjusted EPS guidance: $17.40–$17.90, representing 6–9% growth over 2025; Q1 2026 EPS guidance: $4.20–$4.30, up 6–9% YoY.

• Estimated YoY currency tailwind of 1% for full year and 3% for Q1 2026; capex expected at $5.0–$5.5 billion.

• Guidance midpoint assumes no economic improvement; management remains prudent due to macroeconomic uncertainty.

• Margin expansion in 2026 expected to exceed the long-term 30–50 basis point range due to restructuring and productivity actions.