Linde (LIN) investor relations material

Executive summary

• Q2 2026 sales reached $9.3 billion, up 9% year-over-year, with adjusted net income up 8% and adjusted diluted EPS up 10% compared to Q2 2025, driven by strong growth in electronics, manufacturing, and chemicals & energy.

• Project backlog reached $11.1 billion, supported by major electronics wins in the U.S. and Taiwan, and robust customer proposal activity.

• Margin performance was below expectations due to U.S. home care headwinds and cost inflation, but sequential improvement is anticipated.

• All regions posted profit growth, with APAC leading at 13% year-over-year sales growth.

• Returned $1.59 billion to shareholders via dividends and stock repurchases in Q2.

Financial highlights

• Q2 2026 sales: $9.29 billion (+9% YoY), operating profit: $2.74 billion (+7% YoY), adjusted diluted EPS: $4.50 (+10% YoY), and net income: $1.93 billion (+9% YoY).

• Adjusted operating margin was 29.5%; reported margin was 27.5% due to cost inflation.

• Operating cash flow for Q2 was $2.3 billion (+3% YoY); free cash flow was $833 million.

• Price increase was 2% year-over-year, broad-based across geographies.

• Project backlog included $8.1 billion in contractual sale of gas projects.

Outlook and guidance

• Q3 2026 adjusted EPS guidance is $4.45–$4.55 (+6% to +8% YoY); full-year 2026 adjusted EPS: $17.70–$17.90 (+8% to +9% YoY).

• Full-year capital expenditures projected at $5.5–$6.0 billion.

• Guidance assumes no economic improvement and a 1% FX headwind sequentially; base volumes showed some recovery but are not yet factored into future guidance.

• Management expects margin improvement in the second half, with actions underway to address cost and productivity.

• The company estimates $64 billion in future minimum purchase requirements and plant sales, with about half expected in the next six years.