Core Insights - Linde plc reported second-quarter 2025 adjusted EPS of $4.09, exceeding the Zacks Consensus Estimate of $4.03 and improving from $3.85 in the prior year [1][10] - Total revenues for the quarter reached $8,495 million, surpassing the Zacks Consensus Estimate of $8,353 million and increasing from $8,267 million year-over-year [1][10] Revenue and Profit Drivers - Strong quarterly results were driven by higher pricing and increased volumes, particularly from the Americas segment, with additional contributions from the EMEA segment [2] - The Americas segment's operating profit rose 4.3% to $1,209 million, aided by higher pricing and increased volumes in chemicals and energy markets, exceeding the Zacks Consensus Estimate of $1,188 million [3][10] - EMEA segment profit increased approximately 10.8% year-over-year to $780 million, driven by higher pricing despite lower volumes in metals and manufacturing, beating the Zacks Consensus Estimate of $726 million [4][10] - The APAC segment's profit grew from $474 million to $490 million, surpassing the Zacks Consensus Estimate of $475 million, supported by stable pricing [5] - Operating profit in the Engineering segment declined to $90 million from $96 million year-over-year, missing the Zacks Consensus Estimate of $100 million [5] Backlogs and Capital Investment - At the end of the second quarter, Linde's project backlog amounted to $10.3 billion, including a sale-of-gas backlog of $7.1 billion [6] - Capital expenditures for the second quarter were reported at $1.26 billion, with cash and cash equivalents of $4.8 billion and long-term debt of $19.7 billion [7] Future Guidance - For Q3 2025, Linde estimates adjusted EPS to be in the range of $4.10-$4.20, and for the full year 2025, it expects adjusted EPS to be between $16.30-$16.50 [8] - The company reiterated its full-year capital expenditure guidance to be between $5 billion and $5.5 billion [8]

Core Insights - Linde reported revenue of $8.5 billion for the quarter ended June 2025, reflecting a year-over-year increase of 2.8% and surpassing the Zacks Consensus Estimate of $8.35 billion by 1.7% [1] - The company's EPS for the quarter was $4.09, an increase from $3.85 in the same quarter last year, also exceeding the consensus EPS estimate of $4.03 by 1.49% [1] Revenue Breakdown - Sales in the Americas reached $3.81 billion, slightly above the estimated $3.8 billion, marking a year-over-year increase of 4.3% [4] - EMEA sales were reported at $2.16 billion, exceeding the average estimate of $2.12 billion, with a year-over-year change of 3.4% [4] - Sales from Other regions totaled $315 million, slightly below the estimated $317.93 million, representing a year-over-year decline of 1.6% [4] - Engineering sales amounted to $551 million, compared to the average estimate of $567.47 million, showing a year-over-year increase of 1.3% [4] - APAC sales were reported at $1.66 billion, slightly above the estimated $1.62 billion, with a year-over-year change of -0.1% [4] Stock Performance - Linde's shares have returned -3.2% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Linde plc's unaudited condensed consolidated financial statements for Q2 and H1 2025, including income, balance sheet, cash flow, and detailed notes [Consolidated Statement of Income](index=4&type=section&id=Consolidated%20Statement%20of%20Income) Linde reported Q2 2025 sales of $8.495 billion, up 3%, with net income of $1.766 billion and diluted EPS of $3.73, up 8% Q2 & H1 2025 Financial Performance Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Sales** | $8,495M | $8,267M | +2.8% | $16,607M | $16,367M | +1.5% | | **Operating Profit** | $2,354M | $2,184M | +7.8% | $4,538M | $4,279M | +6.1% | | **Net Income – Linde plc** | $1,766M | $1,663M | +6.2% | $3,439M | $3,290M | +4.5% | | **Diluted EPS** | $3.73 | $3.44 | +8.4% | $7.24 | $6.79 | +6.6% | [Condensed Consolidated Balance Sheet](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) Total assets grew to $86.1 billion by June 30, 2025, with liabilities increasing to $46.1 billion, while equity remained stable Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $13,627 | $12,945 | | **Total Assets** | $86,078 | $80,147 | | **Total Current Liabilities** | $14,714 | $14,544 | | **Long-term debt** | $19,701 | $15,343 | | **Total Liabilities** | $46,092 | $40,659 | | **Total Linde plc Shareholders' Equity** | $38,515 | $38,092 | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) H1 2025 net cash from operations increased to $4.37 billion, with $2.83 billion used in investing and $1.75 billion in financing Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $4,372 | $3,883 | | **Net cash used for investing activities** | $(2,826) | $(2,311) | | **Net cash used for financing activities** | $(1,754) | $(1,476) | | **Change in cash and cash equivalents** | $(64) | $(38) | | **Cash and cash equivalents, end-of-period** | $4,786 | $4,626 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail debt issuance, derivative hedging, $1.9 billion in Russian project legal contingencies, and segment performance across regions - **Linde issued €850 million, €750 million, and €650 million notes in February 2025, and CHF225 million and CHF275 million notes in June 2025**[32](index=32&type=chunk)[33](index=33&type=chunk) - **Contingent liabilities for suspended Russian projects total $1.9 billion** as of June 30, 2025, including **$1.2 billion for RCA** and **$0.7 billion for Amur GPP**[70](index=70&type=chunk)[74](index=74&type=chunk) Q2 2025 Sales & Operating Profit by Segment (in millions) | Segment | Sales | Operating Profit | | :--- | :--- | :--- | | **Americas** | $3,812 | $1,209 | | **EMEA** | $2,162 | $780 | | **APAC** | $1,655 | $490 | | **Engineering** | $551 | $90 | - **Remaining performance obligations are estimated at $61 billion**, with approximately **half expected to be recognized as revenue within six years**[99](index=99&type=chunk)[100](index=100&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 sales growth of 3%, adjusted operating profit up 6% to $2.6 billion, and strong H1 cash flow of $4.4 billion [Consolidated Results](index=26&type=section&id=Consolidated%20Results) Q2 2025 consolidated sales increased 3% to $8.5 billion, with adjusted operating profit up 6% to $2.6 billion and adjusted diluted EPS up 6% to $4.09 Q2 2025 vs Q2 2024 Performance Summary | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Sales** | $8,495M | $8,267M | 3% | | **Reported Operating Profit** | $2,354M | $2,184M | 8% | | **Adjusted Operating Profit** | $2,556M | $2,422M | 6% | | **Reported Diluted EPS** | $3.73 | $3.44 | 8% | | **Adjusted Diluted EPS** | $4.09 | $3.85 | 6% | - **Q2 2025 sales growth of 3%** was driven by **+2% Price/Mix**, **+1% Cost pass-through**, **+1% Acquisitions**, offset by **-1% Volume**[110](index=110&type=chunk) [Segment Discussion](index=30&type=section&id=Segment%20Discussion) Americas sales and profit grew 4%, EMEA profit rose 11% despite volume decline, APAC profit increased 3%, and Engineering profit fell 6% - **Americas Q2 sales rose 4% to $3.8 billion**, with **operating profit up 4% to $1.2 billion**, driven by price, volume, and acquisitions[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) - **EMEA Q2 sales increased 3% to $2.2 billion**, with **operating profit up 11% to $780 million**, driven by pricing and currency despite volume decline[142](index=142&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) - **APAC Q2 sales were flat at $1.7 billion**, while **operating profit grew 3% to $490 million**, due to productivity offsetting cost inflation and lower volumes[147](index=147&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) H1 2025 cash from operations increased 13% to $4.4 billion, with $2.5 billion in capex and $3.6 billion returned to shareholders - **H1 2025 cash flow from operations was $4.372 billion**, a **13% increase** from $3.883 billion in H1 2024[160](index=160&type=chunk)[161](index=161&type=chunk) - **Capital expenditures for H1 2025 were $2.527 billion**, an increase from $2.181 billion, supporting new projects[162](index=162&type=chunk) - **Sale of gas project backlog was approximately $7.1 billion** as of June 30, 2025[163](index=163&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the 2024 Annual Report on Form 10-K for market risk disclosures, with no material changes reported this quarter - The report refers to **Item 7A of Linde's 2024 Annual Report on Form 10-K** for market risk discussion[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Disclosure controls and procedures were concluded to be **effective as of June 30, 2025**, by principal executive and financial officers[191](index=191&type=chunk) - **No material changes to internal control over financial reporting** occurred during the quarter[191](index=191&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the condensed consolidated financial statements for details on current legal proceedings - Information on legal proceedings is available in **Note 8 of the condensed consolidated financial statements**[193](index=193&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the 2024 Annual Report on Form 10-K are reported - **No material changes to risk factors** disclosed in the company's **2024 Annual Report on Form 10-K** have occurred[194](index=194&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Linde repurchased **2.445 million shares for $1.11 billion** in Q2 2025, with **$9.7 billion remaining** under the $15 billion repurchase program Q2 2025 Share Repurchases | Period | Shares Purchased (Thousands) | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 693 | $442.80 | | May 2025 | 959 | $455.31 | | June 2025 | 793 | $466.44 | | **Q2 2025 Total** | **2,445** | **$455.38** | - **$9.7 billion of share repurchases remain authorized** under the **$15.0 billion program** approved in October 2023[200](index=200&type=chunk)

Financial Data and Key Metrics Changes - Earnings per share (EPS) reached $4.9, marking an all-time quarterly high, with an operating margin of 30.1%, also a record [6][19] - Operating cash flows increased by 15%, and return on capital employed (ROCE) stood at 25.1%, leading the industry [6][19] - Sales for Q2 were $8.5 billion, a 3% increase year-over-year and a 5% sequential increase [16] Business Line Data and Key Metrics Changes - The sale of gas project backlog grew from $3.6 billion to $7.1 billion over four years, with the number of projects increasing from 33 to 70 [9] - Operating profit for the quarter was $2.6 billion, a 6% increase year-over-year, with a 30.1% operating margin, up 80 basis points [19] - Volumes decreased by 1% year-over-year, primarily due to weaker base volumes in EMEA, despite contributions from the project backlog [18] Market Data and Key Metrics Changes - In The Americas, volumes are expected to be flat or slightly up, driven by resilient end markets, while Western Europe is anticipated to see a decline in demand [26][30] - Asia presents a mixed outlook, with India showing strong growth while China remains flat due to weaker metals and chemicals [32][34] - The overall trend indicates low to mid-single-digit growth in resilient end markets, offset by declines in the industrial sector, particularly in EMEA [34] Company Strategy and Development Direction - The company emphasizes disciplined project backlog management, focusing on high-quality contracts with fixed fees [8] - Investments in clean energy projects are highlighted, with a total of approximately $5 billion in low carbon contracts [10] - The company plans to continue its strategy of base volume growth through annual CapEx exceeding $1 billion [12] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic environment, particularly in Europe, where no immediate catalysts for improvement are seen [30][31] - The company expects to maintain positive pricing despite macroeconomic challenges, with a historical track record of achieving positive pricing through cycles [36] - Future growth is anticipated from the space sector, with significant investments planned to support this market [70][71] Other Important Information - The company issued bonds totaling CHF 5 billion with an average yield of less than 1%, indicating strong access to low-cost capital [21] - The guidance for Q3 EPS is projected to be between $4.1 and $4.2, reflecting a cautious outlook amid economic uncertainty [22][23] Q&A Session Summary Question: Insights on global business conditions - Management provided a geographical overview, indicating flat volumes in The Americas, a decline in Europe, and mixed signals from Asia, with India showing growth potential [26][30][32] Question: Risks of future price increases - Management expressed confidence in maintaining positive pricing, citing historical performance and alignment with global inflation trends, except for challenges in China [36][38] Question: Margin performance in The Americas - Management noted that margin performance can vary by quarter, with expectations for continued improvement in margins across segments [41][44] Question: Customer appetite for new projects - Management remains optimistic about maintaining a backlog above $7 billion, supported by ongoing project starts and a healthy pipeline [48] Question: EBIT growth in Europe - Management attributed EBIT growth to favorable currency effects and pricing opportunities, despite negative volume trends [53][54] Question: Long-term outlook for Europe - Management acknowledged short-term challenges in Europe but highlighted potential long-term improvements driven by infrastructure investments and recovery efforts [61][65] Question: Growth potential in the space sector - Management emphasized significant growth opportunities in the space sector, with substantial investments planned to support this market [70][71] Question: Energy transition investments - Management expects continued demand for low carbon products, with a focus on economically viable projects moving forward [93][95]

Financial Data and Key Metrics Changes - Earnings per share (EPS) reached $4.9, and operating margin was 30.1%, both representing all-time quarterly highs [2][3][18] - Operating cash flows grew by 15%, and return on capital employed (ROCE) was 25.1%, leading the industry [3][18] - Sales for the second quarter were $8.5 billion, a 3% increase year-over-year and a 5% sequential increase [15][18] - Operating profit increased by 6% year-over-year to $2.6 billion [18] Business Line Data and Key Metrics Changes - The sale of gas project backlog doubled from $3.6 billion to $7.1 billion over four years, with the number of projects increasing from 33 to 70 [6][9] - The backlog turnover was over 150% in 4.5 years, with $5.7 billion of new projects started [6][9] - Base volume growth investments totaled over $1 billion annually, supporting packaged and merchant supply modes [10][12] Market Data and Key Metrics Changes - In The Americas, volumes are expected to be flat, with growth in resilient end markets offset by a softer industrial sector [27][30] - Europe is expected to see a decline in demand, particularly in Western Europe, with negative volume trends anticipated in the second half of the year [31][32] - Asia presents a mixed outlook, with India showing growth while China remains flat due to weaker metals and chemicals [33][34] Company Strategy and Development Direction - The company emphasizes disciplined project backlog management, focusing on high-quality contracts with fixed fees [5][6] - Investments in clean energy projects are a priority, with a total of approximately $5 billion in low carbon contracts signed [8][9] - The company aims to leverage its strong position in the space market, with significant investments planned to support growth in this sector [29][75] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic environment, particularly in Europe, where no immediate catalysts for improvement are seen [32][66] - The company expects to maintain positive pricing despite macroeconomic challenges, with a historical track record of achieving positive pricing through cycles [39][40] - Future growth is anticipated from self-help initiatives and industrial recovery, with a goal of returning to double-digit EPS growth [24][25] Other Important Information - The company issued bonds totaling CHF 5 billion with an average yield of less than 1%, ensuring access to low-cost capital [21] - The guidance for the third quarter EPS is projected to be between $4.1 and $4.2, reflecting a cautious outlook amid economic uncertainty [22][23] Q&A Session Summary Question: Insights on global business conditions - Management provided a geographical overview, indicating flat volumes in The Americas, a decline in Europe, and mixed signals from Asia, particularly highlighting growth in India and challenges in China [27][30][34] Question: Future pricing risks - Management expressed confidence in maintaining positive pricing, citing historical performance and current pricing trends across most regions, with some exceptions in China [39][40] Question: Margin performance in The Americas - Management noted that margin performance can vary by quarter due to business mix, but overall margins are expected to improve [44][47] Question: Appetite for new projects - Management remains optimistic about maintaining a backlog above $7 billion, supported by ongoing project opportunities [51] Question: EBIT growth in Europe - Management attributed EBIT growth to favorable currency effects and pricing opportunities, despite negative volume trends [56][58] Question: Helium pricing impact - Management indicated that helium volumes remain flat, with pricing down due to market oversupply, but this exposure is smaller compared to competitors [60][61] Question: Long-term outlook for Europe - Management expressed cautious optimism about potential recovery in Europe driven by infrastructure investments and rebuilding efforts in Ukraine [69][70] Question: Space market growth potential - Management highlighted significant growth in the space sector, with plans for substantial investments to support this market [75][78] Question: Energy transition projects - Management expects continued demand for low carbon products, emphasizing that economic viability will drive future projects [99][100]

August 1, 2025 Linde plc Investor Teleconference Presentation Second Quarter 2025 Forward-Looking Statement This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. They are based on management's reasonable exp ...

Company Performance - Linde reported quarterly earnings of $4.09 per share, exceeding the Zacks Consensus Estimate of $4.03 per share, and up from $3.85 per share a year ago, representing an earnings surprise of +1.49% [1] - The company posted revenues of $8.5 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.70%, compared to revenues of $8.27 billion in the same quarter last year [2] - Linde has surpassed consensus EPS estimates in all four of the last quarters, but has only topped consensus revenue estimates once during the same period [2] Stock Performance - Linde shares have increased approximately 9.9% since the beginning of the year, outperforming the S&P 500's gain of 7.8% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.21 on revenues of $8.52 billion, and for the current fiscal year, it is $16.42 on revenues of $33.55 billion [7] - The estimate revisions trend for Linde was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Chemical - Specialty industry, to which Linde belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Executive Summary & Business Outlook](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Outlook) Linde plc reported strong Q2 2025 financial results, with increased EPS and operating margins, supported by a robust project backlog and positive future guidance [Second-Quarter 2025 Financial Highlights](index=1&type=section&id=Second-Quarter%202025%20Financial%20Highlights) Linde plc reported strong second-quarter 2025 results, with sales up 3% year-over-year to $8,495 million and adjusted diluted EPS increasing 6% to $4.09. Operating profit margins expanded by 80 basis points, and operating cash flow grew 15% Second-Quarter 2025 Key Financial Highlights | Metric | Q2 2025 (Millions $) | YoY Change (%) | | :-------------------------------- | :------------------- | :--------- | | Sales | $8,495 | +3 | | Underlying Sales | | +1 | | Net Income (GAAP) | $1,766 | +6 | | Diluted EPS (GAAP) | $3.73 | +8 | | Adjusted Net Income | $1,937 | +4 | | Adjusted EPS | $4.09 | +6 | | Operating Profit (GAAP) | $2,354 | | | Adjusted Operating Profit | $2,556 | +6 | | Adjusted Operating Profit Margin | 30.1% | +80 bps | | Operating Cash Flow | $2,211 | +15 | | Capital Expenditures | $1,257 | | | Free Cash Flow | $954 | | | Shareholder Returns (Dividends & Repurchases) | $1,811 | | [CEO Commentary & Strategic Outlook](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Outlook) CEO Sanjiv Lamba highlighted Linde's strong resiliency and high-quality results despite a muted industrial economy, emphasizing EPS growth and operating margin expansion. The company continues to secure future contractual growth, particularly in electronic and clean energy markets, with a $7.1 billion sale-of-gas backlog - Linde demonstrated strong resiliency, delivering high-quality results against a muted industrial economy[5](index=5&type=chunk) - Secured future, contractual growth with new wins added to the project backlog, including a long-term agreement for a world-scale low-carbon ammonia facility in the U.S. Gulf Coast[5](index=5&type=chunk) - Current **$7.1 billion** sale-of-gas backlog ensures attractive growth for years to come, with confidence in adding more high-quality projects in electronic and clean energy end markets[5](index=5&type=chunk) [Financial Guidance for Q3 and Full-Year 2025](index=1&type=section&id=Financial%20Guidance%20for%20Q3%20and%20Full-Year%202025) Linde provided adjusted diluted EPS guidance for Q3 2025 and the full-year 2025, projecting continued growth. Full-year capital expenditures are expected to be between $5.0 billion and $5.5 billion to support growth and maintenance 2025 Adjusted Diluted EPS Guidance | Period | Range (USD) | YoY Growth (%) | YoY Growth (ex. FX) (%) | | :---------------- | :---------- | :--------- | :------------------ | | Third Quarter 2025 | $4.10 - $4.20 | 4 - 7 | 3 - 6 | | Full-Year 2025 | $16.30 - $16.50 | 5 - 6 | 4 - 5 | - Full-year 2025 capital expenditures are expected to be in the range of **$5.0 billion to $5.5 billion** to support growth and maintenance requirements, including the **$7.1 billion** contractual sale of gas project backlog[6](index=6&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) Linde is a leading global industrial gases and engineering company, with this section detailing its mission, non-GAAP financial measures, and forward-looking statement disclaimers [About Linde](index=2&type=section&id=About%20Linde) Linde is a leading global industrial gases and engineering company with $33 billion in sales in 2024. The company provides high-quality solutions, technologies, and services across diverse end markets, focusing on productivity, sustainability, decarbonization, and planet protection - Linde is a leading global industrial gases and engineering company with 2024 sales of **$33 billion**[14](index=14&type=chunk) - Mission: Making the world more productive every day by providing solutions, technologies, and services that enhance customer success and help sustain, decarbonize, and protect the planet[14](index=14&type=chunk) - Serves end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals, and mining, with applications including clean hydrogen production, carbon capture, medical oxygen, and high-purity gases[15](index=15&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The report utilizes non-GAAP measures like adjusted amounts, free cash flow, and return on capital to supplement investors' understanding of the company's operating performance and liquidity. These measures exclude items not indicative of ongoing business trends, such as purchase accounting impacts from the Linde AG merger and certain cost reduction charges, to provide a consistent basis for evaluation - Adjusted amounts, free cash flow, and return on capital are non-GAAP measures intended to supplement investors' understanding of the company's financial statements[16](index=16&type=chunk)[21](index=21&type=chunk)[32](index=32&type=chunk) - Non-GAAP measures exclude items not indicative of ongoing business trends, such as cost reduction and other charges, and purchase accounting impacts from the Linde AG merger, to allow for better evaluation of historical and future business trends on a consistent basis[17](index=17&type=chunk)[21](index=21&type=chunk)[32](index=32&type=chunk) - A reconciliation of non-GAAP adjusted EPS guidance to GAAP EPS is not provided due to the uncertainty of timing and magnitude of excluded items[17](index=17&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This document contains forward-looking statements, identified by specific terms, which are based on management's expectations but involve inherent risks and uncertainties. These risks, detailed in the company's Form 10-K, could cause actual results to differ materially from projections, and Linde assumes no obligation to update these statements - The document contains forward-looking statements based on management's reasonable expectations and assumptions, identified by terms like 'anticipate,' 'expect,' 'will,' and 'potential'[18](index=18&type=chunk) - These statements involve risks and uncertainties, including market performance, economic developments, currency fluctuations, raw material costs, catastrophic events, regulatory changes, and competitive impacts[18](index=18&type=chunk) - Linde plc assumes no obligation to update or revise any forward-looking statement in response to changing circumstances, and risks are further described in the company's Form 10-K[19](index=19&type=chunk) [Consolidated Financial Statements (GAAP)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(GAAP)) This section presents Linde's GAAP consolidated financial statements, including the statement of income, balance sheet, and cash flows, highlighting key financial movements [Consolidated Statement of Income](index=4&type=section&id=Consolidated%20Statement%20of%20Income) Linde's GAAP consolidated statement of income for Q2 2025 shows sales of $8,495 million, with net income attributable to Linde plc of $1,766 million, resulting in diluted EPS of $3.73. Year-to-date figures also reflect growth compared to 2024 Consolidated Statement of Income (GAAP) - Key Figures | Metric (Millions $) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------- | :------ | :------ | :------- | :------- | | Sales | $8,495 | $8,267 | $16,607 | $16,367 | | Operating Profit | $2,354 | $2,184 | $4,538 | $4,279 | | Income Before Income Taxes and Equity Investments | $2,346 | $2,163 | $4,526 | $4,243 | | Income Taxes | $573 | $508 | $1,084 | $971 | | Net Income - Linde plc | $1,766 | $1,663 | $3,439 | $3,290 | | Diluted Earnings Per Share | $3.73 | $3.44 | $7.24 | $6.79 | | Cash Dividends Per Share | $1.50 | $1.39 | $3.00 | $2.78 | [Condensed Consolidated Balance Sheet](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2025, Linde's total assets increased to $86,078 million from $80,147 million at year-end 2024, driven by increases in property, plant and equipment, and goodwill. Total liabilities also rose, with long-term debt seeing a significant increase Condensed Consolidated Balance Sheet (GAAP) - Key Figures | Metric (Millions $) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | **Assets** | | | | Total Current Assets | $13,627 | $12,945 | | Property, plant and equipment - net | $26,928 | $24,775 | | Goodwill | $27,812 | $25,937 | | Total Assets | $86,078 | $80,147 | | **Liabilities & Equity** | | | | Total Current Liabilities | $14,714 | $14,544 | | Long-term debt | $19,701 | $15,343 | | Total Liabilities | $46,092 | $40,659 | | Total Linde plc Shareholders' Equity | $38,515 | $38,092 | | Total Equity | $39,973 | $39,475 | | Total Liabilities and Equity | $86,078 | $80,147 | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For Q2 2025, net cash provided by operating activities increased to $2,211 million, up 15% year-over-year. However, significant cash outflows for investing and financing activities, including capital expenditures and share repurchases, led to a decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (GAAP) - Key Figures | Metric (Millions $) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------------- | :------ | :------ | :------- | :------- | | Net cash provided by operating activities | $2,211 | $1,929 | $4,372 | $3,883 | | Net cash used for investing activities | $(1,457) | $(1,270) | $(2,826) | $(2,311) | | Net cash used for financing activities | $(1,366) | $(808) | $(1,754) | $(1,476) | | Change in cash and cash equivalents | $(508) | $(222) | $(64) | $(38) | | Cash and cash equivalents, end-of-period | $4,786 | $4,626 | $4,786 | $4,626 | [Segment Performance](index=1&type=section&id=Segment%20Performance) This section details the financial performance of Linde's Americas, APAC, EMEA, and Engineering segments, including sales, operating profit, and key drivers [Americas Segment Results](index=1&type=section&id=Americas%20Segment%20Results) The Americas segment reported a 4% increase in sales to $3,812 million in Q2 2025, driven by higher pricing and volumes, primarily in the chemicals & energy market. Operating profit margin remained flat year-over-year Americas Segment Performance (Q2 2025) | Metric | Value | | :---------------- | :------ | | Sales | $3,812 million | | YoY Sales Change | +4% | | Underlying Sales Change | +4% | | Drivers | 3% higher pricing, 1% higher volumes | | Primary End Market | Chemicals & energy | | Operating Profit | $1,209 million | | Operating Profit Margin | 31.7% | | YoY Operating Profit Margin Change | Flat | [APAC Segment Results](index=1&type=section&id=APAC%20Segment%20Results) APAC sales were flat at $1,655 million in Q2 2025, with underlying sales decreasing 1% due to lower volumes in the manufacturing sector. Despite this, the segment achieved a 100 basis point improvement in operating profit margin APAC Segment Performance (Q2 2025) | Metric | Value | | :---------------- | :------ | | Sales | $1,655 million | | YoY Sales Change | Flat | | Underlying Sales Change | -1% | | Drivers | Stable pricing, 1% lower volumes | | Primary End Market | Manufacturing | | Operating Profit | $490 million | | Operating Profit Margin | 29.6% | | YoY Operating Profit Margin Change | +100 bps | [EMEA Segment Results](index=1&type=section&id=EMEA%20Segment%20Results) EMEA sales increased 3% to $2,162 million in Q2 2025, despite a 1% decrease in underlying sales due to lower volumes in metals & mining and manufacturing, which offset higher pricing. The segment significantly expanded its operating profit margin by 240 basis points EMEA Segment Performance (Q2 2025) | Metric | Value | | :---------------- | :------ | | Sales | $2,162 million | | YoY Sales Change | +3% | | Underlying Sales Change | -1% | | Drivers | 3% higher pricing, offset by 4% lower volumes | | Primary End Markets | Metals & mining, manufacturing | | Operating Profit | $780 million | | Operating Profit Margin | 36.1% | | YoY Operating Profit Margin Change | +240 bps | [Linde Engineering Segment Results](index=1&type=section&id=Linde%20Engineering%20Segment%20Results) Linde Engineering sales grew 1% to $551 million in Q2 2025, with an operating profit of $90 million. The segment reported new order intake of $311 million and a third-party sale of equipment backlog of $3.2 billion Linde Engineering Segment Performance (Q2 2025) | Metric | Value | | :-------------------------- | :------ | | Sales | $551 million | | YoY Sales Change | +1% | | Operating Profit | $90 million | | Operating Profit Margin | 16.3% | | Order Intake (Q2) | $311 million | | Third-Party Sale of Equipment Backlog | $3.2 billion | [Non-GAAP Reconciliations and Definitions](index=3&type=section&id=Non-GAAP%20Reconciliations%20and%20Definitions) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including adjusted operating profit, EPS, EBITDA, free cash flow, net debt, and return on capital [Summary of Non-GAAP Reconciliations](index=3&type=section&id=Summary%20of%20Non-GAAP%20Reconciliations) This section provides a summary of non-GAAP adjustments for sales, net income, operating profit, and diluted EPS for Q2 and year-to-date 2025, primarily adjusting for purchase accounting impacts related to the Linde AG merger and cost reduction programs Summary of Non-GAAP Reconciliations (Q2 2025) | Metric (Millions $) | Reported GAAP | Adjustments | Adjusted Non-GAAP | | :------------------ | :------------ | :---------- | :---------------- | | Sales | $8,495 | $0 | $8,495 | | Operating Profit | $2,354 | $202 | $2,556 | | Net Income | $1,766 | $171 | $1,937 | | Diluted EPS | $3.73 | $0.36 | $4.09 | Summary of Non-GAAP Reconciliations (YTD June 30, 2025) | Metric (Millions $) | Reported GAAP | Adjustments | Adjusted Non-GAAP | | :------------------ | :------------ | :---------- | :---------------- | | Sales | $16,607 | $0 | $16,607 | | Operating Profit | $4,538 | $456 | $4,994 | | Net Income | $3,439 | $378 | $3,817 | | Diluted EPS | $7.24 | $0.80 | $8.04 | - Adjustments primarily relate to purchase accounting impacts from the Linde AG merger and cost reduction program charges[22](index=22&type=chunk)[23](index=23&type=chunk) [Adjusted Operating Profit and Operating Margin](index=8&type=section&id=Adjusted%20Operating%20Profit%20and%20Operating%20Margin) Adjusted operating profit for Q2 2025 was $2,556 million, up 6% year-over-year, with an adjusted operating margin of 30.1%. These adjustments primarily exclude depreciation and amortization related to the fair value step-up of assets from the Linde AG merger Adjusted Operating Profit and Operating Margin | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported Operating Profit | $4,538 | $2,354 | $4,279 | $2,184 | | Total Adjustments | $456 | $202 | $484 | $238 | | Adjusted Operating Profit | $4,994 | $2,556 | $4,763 | $2,422 | | Adjusted Percentage Change | +5% | +6% | | | | Reported Operating Margin | 27.3% | 27.7% | 26.1% | 26.4% | | Adjusted Operating Margin | 30.1% | 30.1% | 29.1% | 29.3% | - Adjustments primarily relate to depreciation and amortization from the fair value step-up of fixed and intangible assets acquired in the Linde AG merger[38](index=38&type=chunk) [Adjusted Depreciation and Amortization](index=8&type=section&id=Adjusted%20Depreciation%20and%20Amortization) Adjusted depreciation and amortization for Q2 2025 was $744 million, after excluding $198 million in purchase accounting impacts related to the Linde AG merger Adjusted Depreciation and Amortization | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported Depreciation and Amortization | $1,852 | $942 | $1,907 | $958 | | Less: Purchase accounting impacts - Linde AG | $(389) | $(198) | $(477) | $(237) | | Adjusted Depreciation and Amortization | $1,463 | $744 | $1,430 | $721 | [Adjusted Other Income (Expense) - Net](index=8&type=section&id=Adjusted%20Other%20Income%20(Expense)%20-%20Net) Adjusted other income (expense) - net for Q2 2025 was $19 million, reflecting an adjustment of $(4) million related to purchase accounting impacts from the Linde AG merger Adjusted Other Income (Expense) - Net | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported Other Income (Expense) - net | $33 | $15 | $60 | $2 | | Add: Purchase accounting impacts - Linde AG | $(12) | $(4) | $(7) | $(1) | | Adjusted Other Income (Expense) - net | $45 | $19 | $67 | $3 | - Adjustments for Other Income/(Expense) relate to the allocation of fair value step-up for ongoing Linde AG asset disposals[38](index=38&type=chunk) [Adjusted Net Pension and OPEB Cost (Benefit)](index=8&type=section&id=Adjusted%20Net%20Pension%20and%20OPEB%20Cost%20(Benefit)) Adjusted net pension and OPEB cost (benefit), excluding service cost, for Q2 2025 was $(59) million, with no pension settlement charges in the current quarter Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :---------------------------------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported net pension and OPEB cost (benefit), excluding service cost | $(115) | $(59) | $(99) | $(49) | | Add: Pension settlement charges | $0 | $0 | $0 | $0 | | Adjusted Net Pension and OPEB cost (benefit), excluding service costs | $(115) | $(59) | $(99) | $(49) | [Adjusted Interest Expense - Net](index=8&type=section&id=Adjusted%20Interest%20Expense%20-%20Net) Adjusted interest expense - net for Q2 2025 was $67 million, with no purchase accounting impacts from Linde AG affecting this metric in the current quarter Adjusted Interest Expense - Net | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported interest expense - net | $127 | $67 | $135 | $70 | | Add: Purchase accounting impacts - Linde AG | $0 | $0 | $3 | $1 | | Adjusted interest expense - net | $127 | $67 | $138 | $71 | - Adjustments for interest expense relate to the amortization of the fair value of debt acquired in the merger[39](index=39&type=chunk) [Adjusted Income Taxes and Effective Tax Rate](index=9&type=section&id=Adjusted%20Income%20Taxes%20and%20Effective%20Tax%20Rate) Adjusted income taxes for Q2 2025 were $573 million, with an adjusted effective tax rate of 23.5%. Adjustments include purchase accounting impacts and cost reduction program charges Adjusted Income Taxes and Effective Tax Rate | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported Income Taxes | $1,084 | $573 | $971 | $508 | | Total Adjustments | $108 | $46 | $82 | $62 | | Adjusted Income Taxes | $1,192 | $619 | $1,053 | $570 | | Reported Effective Tax Rate | 24.0% | 24.4% | 22.9% | 23.4% | | Adjusted Effective Tax Rate | 23.9% | 23.5% | 22.7% | 23.1% | - Adjustments relate to the current and deferred income tax impact on other non-GAAP adjustments, determined using applicable tax rates for relevant jurisdictions[40](index=40&type=chunk) [Adjusted Income from Equity Investments](index=9&type=section&id=Adjusted%20Income%20from%20Equity%20Investments) Adjusted income from equity investments for Q2 2025 was $51 million, after adding $18 million for purchase accounting impacts related to the Linde AG merger Adjusted Income from Equity Investments | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported income from equity investments | $71 | $33 | $83 | $45 | | Add: Purchase accounting impacts - Linde AG | $36 | $18 | $36 | $18 | | Adjusted income from equity investments | $107 | $51 | $119 | $63 | - Adjustments represent the amortization of increased fair value on equity investments related to depreciable and amortizable assets[41](index=41&type=chunk) [Adjusted Noncontrolling Interests](index=9&type=section&id=Adjusted%20Noncontrolling%20Interests) Adjusted noncontrolling interests for Q2 2025 were $(40) million, reflecting adjustments for purchase accounting impacts and cost reduction programs Adjusted Noncontrolling Interests | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported noncontrolling interests | $(74) | $(40) | $(75) | $(37) | | Total Adjustments | $(6) | $(3) | $(6) | $(3) | | Adjusted noncontrolling interests | $(80) | $(43) | $(81) | $(40) | - Adjustments represent the noncontrolling interests' ownership portion of the other described adjustments, determined on an entity-by-entity basis[41](index=41&type=chunk) [Adjusted Net Income - Linde plc](index=9&type=section&id=Adjusted%20Net%20Income%20-%20Linde%20plc) Adjusted net income attributable to Linde plc for Q2 2025 was $1,937 million, an increase from the reported GAAP net income of $1,766 million, after accounting for purchase accounting impacts and cost reduction charges Adjusted Net Income - Linde plc | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported net income | $3,439 | $1,766 | $3,290 | $1,663 | | Total Adjustments | $378 | $171 | $390 | $196 | | Adjusted net income - Linde plc | $3,817 | $1,937 | $3,680 | $1,859 | [Adjusted Diluted EPS](index=10&type=section&id=Adjusted%20Diluted%20EPS) Adjusted diluted EPS for Q2 2025 was $4.09, representing a 6% year-over-year increase. This figure excludes purchase accounting impacts and cost reduction program charges to provide a clearer view of underlying business performance Adjusted Diluted EPS | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported diluted EPS | $7.24 | $3.73 | $6.79 | $3.44 | | Total Adjustments | $0.80 | $0.36 | $0.81 | $0.41 | | Adjusted diluted EPS | $8.04 | $4.09 | $7.60 | $3.85 | | Adjusted Percentage Change | +6% | +6% | | | - Adjusted EPS guidance for 2025 is a non-GAAP measure that excludes impacts of certain items not representative of underlying business performance, such as cost reduction charges and potential divestitures[42](index=42&type=chunk) [Adjusted EBITDA and % of Sales](index=10&type=section&id=Adjusted%20EBITDA%20and%20%25%20of%20Sales) Adjusted EBITDA for Q2 2025 was $3,351 million, with an adjusted EBITDA as a percentage of sales of 39.4%. Adjustments primarily include cost reduction program charges and purchase accounting impacts Adjusted EBITDA and % of Sales | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Net Income - Linde plc | $3,439 | $1,766 | $3,290 | $1,663 | | EBITDA | $6,461 | $3,329 | $6,279 | $3,187 | | Total Adjustments | $103 | $22 | $43 | $19 | | Adjusted EBITDA | $6,564 | $3,351 | $6,322 | $3,206 | | Reported Sales | $16,607 | $8,495 | $16,367 | $8,267 | | EBITDA % of Sales | 38.9% | 39.2% | 38.4% | 38.6% | | Adjusted EBITDA as a % of Sales | 39.5% | 39.4% | 38.6% | 38.8% | [Free Cash Flow (FCF)](index=12&type=section&id=Free%20Cash%20Flow%20(FCF)) Free cash flow for Q2 2025 was $954 million, calculated as operating cash flow less capital expenditures. This metric is used by investors and management to evaluate the company's ability to pursue shareholder value-enhancing opportunities Free Cash Flow (FCF) | Metric (Millions $) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------ | :------ | :------ | :------ | :------ | :------ | :------ | | Operating Cash Flow | $2,211 | $2,161 | $2,809 | $2,731 | $1,929 | $1,954 | | Less: Capital Expenditures | $(1,257) | $(1,270) | $(1,250) | $(1,066) | $(1,133) | $(1,048) | | Free Cash Flow | $954 | $891 | $1,559 | $1,665 | $796 | $906 | - Free Cash Flow (FCF) is a measure used to evaluate a company's ability to pursue opportunities that enhance shareholder value[44](index=44&type=chunk) [Net Debt](index=12&type=section&id=Net%20Debt) Net debt as of Q2 2025 was $21,134 million, calculated as total debt less cash and cash equivalents. Adjusted net debt, excluding purchase accounting impacts, was $21,130 million Net Debt (Millions $) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Debt | $25,920 | $23,897 | $21,623 | $22,262 | $21,518 | $20,319 | | Less: Cash and cash equivalents | $(4,786) | $(5,294) | $(4,850) | $(5,187) | $(4,626) | $(4,848) | | Net debt | $21,134 | $18,603 | $16,773 | $17,075 | $16,892 | $15,471 | | Less: Purchase accounting impacts - Linde AG | $(5) | $(4) | $(4) | $(4) | $(4) | $(5) | | Adjusted net debt | $21,130 | $18,599 | $16,769 | $17,071 | $16,888 | $15,466 | - Net debt is a financial liquidity metric used to evaluate a company's ability to repay its debt[46](index=46&type=chunk) [After-tax Return on Capital (ROC)](index=12&type=section&id=After-tax%20Return%20on%20Capital%20(ROC)) The adjusted after-tax return on capital (ROC) for Q2 2025 was 25.1%, indicating the return generated on net assets employed in the business. This metric is adjusted for non-GAAP items to provide a clearer view of operational efficiency After-tax Return on Capital (ROC) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :---------------------------------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Reported NOPAT (Q2) | $1,857 | $1,753 | $1,809 | $1,655 | $1,753 | $1,714 | | Adjusted NOPAT (Q2) | $2,031 | $1,963 | $1,986 | $1,988 | $1,953 | $1,912 | | 4-quarter trailing reported NOPAT | $7,074 | $6,970 | $6,931 | $6,753 | $6,727 | $6,626 | | 4-quarter trailing adjusted NOPAT | $7,968 | $7,890 | $7,839 | $7,697 | $7,560 | $7,450 | | 5-quarter average ending capital | $57,914 | $56,830 | $56,377 | $55,994 | $55,535 | $55,277 | | 5-quarter average ending adjusted capital | $31,786 | $30,701 | $30,248 | $29,865 | $29,404 | $29,144 | | After-tax ROC (4-quarter reported NOPAT / 5-quarter average ending capital) | 12.2% | 12.3% | 12.3% | 12.1% | 12.1% | 12.0% | | Adjusted after-tax ROC (4-quarter trailing adjusted NOPAT / 5-quarter average ending adjusted capital) | 25.1% | 25.7% | 25.9% | 25.8% | 25.7% | 25.6% | - After-tax return on capital (ROC) evaluates the return on net assets employed in the business, measuring after-tax operating profit generated from investments by all parties[46](index=46&type=chunk)

SOURCE Caliche Development Partners III About Caliche Caliche, in partnership with sponsor Sixth Street, is an acquisition and development company focused on the underground storage of natural gas, industrial gases like hydrogen and helium, and carbon sequestration. The Houston-based company's assets are in Jefferson County on the US Gulf Coast (Golden Triangle Storage, GTS and Caliche CO2 Sequestration) and in Colusa County, CA (Central Valley Gas Storage, CVGS). Caliche's management team previously develo ...

Core Viewpoint - Linde plc is expected to report its second-quarter 2025 results on August 1, with earnings per share estimated at $4.03 and revenues at $8.35 billion, reflecting a year-over-year improvement in earnings and revenues [1][3][9]. Group 1: Q1 Performance and Expectations - In the previous quarter, Linde's earnings were $3.95 per share, surpassing the Zacks Consensus Estimate of $3.93, driven by higher pricing and increased volumes from the Americas segment [2]. - The Zacks Consensus Estimate for second-quarter earnings per share is $4.03, indicating a 4.68% improvement from the prior-year quarter [2]. - The expected revenue for the second quarter is $8.35 billion, which represents a year-over-year increase of 1.04% [3]. Group 2: Market Position and Performance Factors - Linde is a global leader in industrial gas production, serving various end markets including healthcare, manufacturing, and chemicals & refining [4]. - The company is anticipated to maintain stable performance due to long-term contracts with major on-site clients and operations in resilient end markets such as healthcare and food and beverages [5]. - However, challenges may arise from tariffs and changes in trade policies, which could slow down industrial activity globally, particularly affecting demand in markets like China and Europe [6]. Group 3: Segment Performance Estimates - The Zacks Consensus Estimate for operating profit in the Americas segment is $1.19 billion, an increase from $1.16 billion in the second quarter of 2024 [7]. - The operating profit estimate for the Engineering business unit is $100 million, up from $96 million a year ago [7]. - These factors are expected to influence demand and pricing dynamics, potentially impacting Linde's quarterly performance [7].