O-I Glass, Inc. (OI) announced that it collaborated with Linde plc (LIN) to install its proprietary OPTIMELTTM Thermochemical Regenerator (TCR) technology at OI’s container glass plant in Holzminden, Germany. This move will help O-I Glass in improving efficiency and reducing emissions.Details of OI-LIN CollaborationLinde has been providing technologies to glass manufacturers to boost energy efficiency for more than three decades. The company's patented OPTIMELTTM TCR technology, adopted globally by glass pr ...

Financial Performance - Linde's sales for 2024 were $33,005 million, a slight decrease from $33,364 million in 2022, indicating a year-over-year decline of approximately 1.1%[16]. - Sales for 2024 were $33,005 million, flat compared to 2023, with a 2% increase from higher pricing in the Americas and EMEA segments[124]. - Reported operating profit increased by 8% to $8,635 million, driven by higher pricing and productivity savings[124]. - Net income for Linde plc rose to $6,565 million, a 6% increase from $6,199 million in 2023[124]. - Adjusted net income was $7,475 million, reflecting a 7% increase from $6,989 million in 2023[127]. - Cash flow from operations was $9,423 million, up $118 million from 2023, influenced by higher net income[124]. - Cost of sales decreased by 2% to $17,143 million, representing 51.9% of sales, down from 53.2% in 2023[127]. - Selling, general and administrative expenses increased by 1% to $3,337 million, accounting for 10.1% of sales[132]. - Reported interest expense rose by 28% to $256 million due to higher borrowings and interest rates[141]. - The effective tax rate for 2024 was 23.4%, up from 22.7% in 2023, primarily due to prior year benefits[143]. - Reported diluted earnings per share increased by $1.03, or 8%, in 2024 compared to 2023, with adjusted diluted EPS at $15.51, up $1.31[147]. - EBITDA rose to $12,585 million in 2024 from $12,007 million in 2023, while adjusted EBITDA increased to $12,819 million from $12,133 million[149]. Operational Highlights - Approximately 65% of Linde's 2024 sales were generated outside the United States, highlighting the company's significant international presence[28]. - Linde's Engineering business focuses on sustainable technologies, helping customers avoid and utilize carbon dioxide emissions, thus supporting the transition to clean energy[25]. - The company has a diverse customer base across various industries, including healthcare, chemicals, energy, and manufacturing, reducing dependency on any single customer[27]. - Linde's research and development efforts are directed towards gas processing, separation technologies, and clean energy, with facilities located in Germany, New York, Illinois, and China[30]. - The company operates in a highly competitive market, facing pressure from both global and regional players, which necessitates continuous innovation and efficiency improvements[36]. - Linde's international operations are subject to risks including currency exchange rate fluctuations, which could adversely affect financial results[59]. - The company serves a diverse group of industries across more than 80 countries, which generally leads to financial stability through various business cycles[54]. Workforce and Employment - As of December 31, 2024, Linde employed 65,289 individuals globally, with a workforce composition of approximately 28% women and 72% men[42]. - The number of employees decreased by 2%, or 1,034 employees, to 65,289 as of December 31, 2024, primarily due to cost reduction programs and a divestiture in APAC[148]. - Linde's ability to attract and retain qualified personnel is critical for successful business management and product development[63]. Capital and Investments - Capital expenditures totaled $4,497 million, with dividends paid amounting to $2,655 million[124]. - Acquisitions in 2024 were $317 million, a decrease of $636 million from 2023, primarily related to packaged gas businesses in the Americas[203]. - Linde's backlog of large projects under construction was approximately $7.1 billion at the end of 2024[202]. - Cash and cash equivalents at the end of the period were $4,850 million, an increase of $186 million from 2023[199]. - Cash used for financing activities decreased to $4,359 million in 2024 from $5,400 million in 2023[206]. - Total net debt outstanding rose to $16,773 million at December 31, 2024, an increase of $2,064 million from $14,709 million at December 31, 2023[209]. Risk Management - Linde is exposed to legal risks related to product liability, particularly in the U.S., where class action risks are historically significant[80]. - Changes in tax laws could adversely affect Linde's financial position, especially as it is currently treated as a U.K. tax resident[87]. - Cybersecurity is identified as a top enterprise risk, with Linde implementing advanced security technologies and mandatory training for employees[91]. - Linde's compliance with international laws and regulations is critical, as failure to do so may result in significant penalties and reputational damage[77]. - Catastrophic events such as natural disasters or pandemics could disrupt operations and significantly affect financial results[62]. - Macroeconomic factors may increase the cost of obtaining financing, adversely impacting financial results[60]. Shareholder Returns - Linde's share repurchase program approved on October 23, 2023, allows for the repurchase of up to $15 billion of ordinary shares, with $3.1 billion already repurchased by December 31, 2024[107]. - As of December 31, 2024, Linde has $11.9 billion remaining authorized for share repurchases under the 2023 program[108]. - Linde's ordinary shares have shown a cumulative return of 211% from December 31, 2019, to December 31, 2024, compared to 197% for the S&P 500 Index and 152% for the S5 Materials Index[109]. - Cash dividends increased to $2,655 million in 2024, reflecting a 9% increase in dividends per share to $5.56 from $5.10[208]. - Net purchases of ordinary shares were $4,451 million in 2024, up from $3,925 million in 2023[207].

Linde plc’s (LIN) shares have gained 1.5% since reporting strong fourth-quarter earnings on Feb. 6.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The leading industrial gas producer’s adjusted earnings were $3.97 per share, surpassing the Zacks Consensus Estimate of $3.93. The bottom line improved from the year-ago quarter’s profit of $3.59.Total quarterly revenues of $8.28 billion missed the Zacks Consensus Estimate of $8.36 billion and declined from the year-ago quarter’s $8.30 bil ...

Core Viewpoint - Linde plc reported fourth-quarter 2024 adjusted EPS of $3.97, exceeding estimates, while total revenues of $8.28 billion fell short of expectations and decreased year-over-year [1][2]. Financial Performance - Adjusted EPS of $3.97 surpassed the Zacks Consensus Estimate of $3.93 and improved from $3.59 in the prior year [1]. - Total quarterly revenues were $8.28 billion, missing the Zacks Consensus Estimate of $8.36 billion and down from $8.30 billion a year ago [1]. Segmental Highlights - The Americas segment's operating profit rose 6.98% to $1,150 million, slightly below the consensus estimate of $1,153 million, driven by higher pricing and increased volumes in manufacturing, electronics, and food & beverage [3]. - EMEA segment profit increased almost 11.5% year-over-year to $686 million but missed the consensus estimate of $699 million due to lower volumes [4]. - The APAC segment's profit grew from $452 million to $500 million, exceeding the consensus estimate of $482 million, supported by higher project start-up volumes in the electronics market [4]. - Operating profit in the Engineering segment decreased to $106 million from $119 million, aligning with the consensus estimate [5]. Backlogs - Linde's project backlog at the end of the fourth quarter was $10.4 billion, including a sale-of-gas backlog of $7.1 billion [6]. Capital Investment & Balance Sheet - Capital expenditures for the December quarter were $1.25 billion, with cash and cash equivalents of $4.85 billion and long-term debt of $15.3 billion [7]. Guidance - For Q1 2025, Linde projects adjusted EPS between $3.85 and $3.95, and for the full year 2025, adjusted EPS is expected to be in the range of $16.15 to $16.55 [8]. - Full-year capital expenditures are projected to be between $5 billion and $5.5 billion [8].

Linde plc Investor Teleconference Presentation Fourth Quarter 2024 February 6, 2025 2 Key Highlights - 2024 People and Communities Environment 6 – 5 Financials Positioning for the Future A successful year despite the challenges 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, conti ...

Financial Data and Key Metrics Changes - Linde reported fourth quarter sales of $8.3 billion, flat compared to the prior year and down 1% sequentially, with foreign currency translation being a 2% headwind [30][31] - Operating profit increased by 9% to $2.5 billion, resulting in a margin of 29.9%, driven by management actions around price, cost, and productivity [33] - EPS grew by 11% to $3.97, or 13% excluding foreign exchange impacts [33] Business Line Data and Key Metrics Changes - The volume growth was flat, with contributions from project backlog in the Americas and APAC offsetting lower base volumes in EMEA [32] - Linde signed 59 long-term agreements for small on-site projects, totaling 64 plants, which are expected to enhance reliability and network density [18][19] - The company also completed 18 acquisitions of small tuck-in packaged gas opportunities, generating annualized revenues of approximately $200 million [19] Market Data and Key Metrics Changes - The company anticipates low to mid-single-digit growth in resilient end markets, particularly driven by electronics and food and beverage sectors [68] - In the Americas, low single-digit growth is expected, while EMEA is projected to experience continued softening, particularly in Western Europe [71][72] - In Asia Pacific, particularly China, Linde does not expect significant improvements in 2025, with industrial volumes remaining stable but flat [74][80] Company Strategy and Development Direction - Linde emphasizes the importance of maintaining a disciplined capital allocation policy and focusing on core business areas to ensure long-term growth [15][21] - The company aims to achieve a 10% EPS growth annually through a combination of capital allocation and management actions, despite macroeconomic challenges [24][25] - Linde is committed to sustainability, with a goal to reduce greenhouse gas emissions by 35% by 2035 and has increased its low carbon and renewable energy consumption by 19% year-over-year [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that discussions with potential project partners have slowed down slightly due to increased rigor before final investment decisions (FID) [44] - The company remains confident in its ability to navigate macroeconomic challenges and create shareholder value through disciplined execution and capital allocation [29][41] - Management expects margin expansion across all segments in 2025, with a range of 20 to 50 basis points [55] Other Important Information - Linde's backlog at year-end exceeded $10 billion, including a record sale of gas backlog of $7 billion [16] - The company returned $7 billion to shareholders through dividends and stock repurchases, highlighting a strong commitment to shareholder returns [36] Q&A Session Summary Question: How have discussions with potential project partners evolved? - Management noted that discussions have slowed down slightly as partners are applying more rigor before reaching FID, which is seen as a positive development [44] Question: Will Americas margins gain ground in 2025? - Management expects margin expansion in both Americas and APAC, with no impediments to achieving higher margins across segments [55] Question: What is the leverage of industrial production (IP) on EPS? - Management indicated that base volumes are closely aligned with IP, with higher leverage seen in developing countries [62] Question: What are the concerns regarding market share? - Management emphasized that Linde is winning more than its fair share of large projects, with a focus on network density rather than traditional market share metrics [102][104] Question: What is the outlook for the healthcare segment? - Management expects long-term mid-single-digit growth in healthcare, with current numbers reflecting portfolio rationalization efforts [90] Question: How does the backlog break down between sale of gas and equipment? - Approximately $3.1 billion of the backlog is in the sale of equipment, with the remainder in the sale of gas, and management has protections in place against tariffs [126][128]

Core Insights - Linde reported strong earnings per share (EPS) of $3.97, exceeding analyst expectations, but revenue fell short at $8.28 billion compared to the forecast of $8.42 billion due to currency fluctuations [1][2] Financial Performance - Q4 2024 EPS was $3.97, up 11.2% from $3.57 in Q4 2023 [2] - Revenue for Q4 2024 was $8.28 billion, a slight increase of 0.2% from $8.30 billion in Q4 2023 [2] - Adjusted operating profit reached $2.48 billion, reflecting a 9.3% increase from $2.27 billion in Q4 2023 [2] - Free cash flow was $1.56 billion, down 1.1% from $1.58 billion in Q4 2023 [2] Business Overview - Linde is the world's largest industrial gas company, providing a wide range of gases essential for various industries, including healthcare, chemicals, manufacturing, and electronics [3] - The company is a leader in innovative gas technologies, enhancing service delivery [3] Strategic Focus - Linde is concentrating on the clean energy sector and long-term customer agreements, with advancements in hydrogen solutions and gas processing techniques [4] - The company’s adjusted operating profit margin increased by 2.5 percentage points to 29.9%, indicating effective cost management [5] Regional Performance - Sales in the Americas grew by 1%, driven by manufacturing, food, and electronics sectors [6] - The Asia-Pacific region saw a 2% sales increase, primarily due to growth in the electronics sector [6] - Conversely, sales in the Europe/Middle East/Africa region declined by 2% due to reduced manufacturing volumes, impacted by foreign currency fluctuations [6] Strategic Developments - Linde signed a significant $2 billion contract with Dow, showcasing its commitment to clean energy and strategic partnerships [7] - The company has a project backlog exceeding $10 billion, indicating strong future earnings growth potential [7] - Linde returned $1.99 billion to shareholders through dividends and stock repurchases during the quarter [7] Future Outlook - Linde projects its 2025 adjusted diluted EPS to be between $16.15 and $16.55, reflecting anticipated growth of 8% to 11% when excluding foreign currency impacts [8] - The guidance indicates Linde's confidence in navigating macroeconomic challenges while focusing on technological advancements and energy solutions [8] Investment Considerations - Investors should pay attention to Linde's initiatives in clean energy projects and its ability to secure long-term contracts, positioning the company for consistent growth [9]

Core Insights - Linde reported $8.28 billion in revenue for Q4 2024, a slight year-over-year decline of 0.2%, with an EPS of $3.97 compared to $3.59 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $8.36 billion, resulting in a surprise of -0.89%, while the EPS exceeded expectations by 1.02% [1] Financial Performance - Revenue by region: - EMEA: $2.06 billion, below the estimate of $2.13 billion, a year-over-year decline of 2% [4] - APAC: $1.67 billion, slightly below the estimate of $1.68 billion, with a year-over-year increase of 1.8% [4] - Other: $318 million, above the estimate of $307.95 million, a year-over-year decline of 1.2% [4] - Americas: $3.61 billion, below the estimate of $3.65 billion, with a year-over-year increase of 0.7% [4] - Engineering: $628 million, slightly above the estimate of $620.74 million, a year-over-year decline of 4.6% [4] Stock Performance - Linde's shares have returned +8% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Linde reported quarterly earnings of $3.97 per share, exceeding the Zacks Consensus Estimate of $3.93 per share, and showing an increase from $3.59 per share a year ago, indicating a positive earnings surprise of 1.02% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates for the last four quarters [2] - Linde's revenues for the quarter ended December 2024 were $8.28 billion, slightly missing the Zacks Consensus Estimate by 0.89%, and down from $8.3 billion year-over-year [2] - The company has not beaten consensus revenue estimates in the last four quarters [2] Group 2: Stock Performance and Outlook - Linde shares have increased approximately 8.4% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The future performance of Linde's stock will depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $4 on revenues of $8.47 billion, and for the current fiscal year, it is $16.73 on revenues of $34.42 billion [7] Group 3: Industry Context - The Chemical - Specialty industry, to which Linde belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Financial Performance - Fourth-quarter 2024 net income was $1,725 million, with diluted earnings per share of $3.60, representing increases of 12% and 14% respectively compared to the prior year[1]. - Fourth-quarter sales were $8,282 million, flat year-over-year, but underlying sales increased by 2% when excluding negative currency impact[2]. - Adjusted operating profit for the fourth quarter was $2,480 million, up 9% year-over-year, with an adjusted operating profit margin of 29.9%, an increase of 250 basis points[3]. - For the full year 2024, sales totaled $33.0 billion, flat compared to 2023, while adjusted operating profit was $9.7 billion, a 7% increase year-over-year[5]. - Operating profit for Q4 2024 rose to $2,270 million, a 12% increase from $2,028 million in Q4 2023, with year-to-date operating profit at $8,635 million compared to $8,024 million in the previous year[27]. - Net income for Q4 2024 was $1,725 million, up from $1,543 million in Q4 2023, resulting in a year-to-date net income of $6,565 million compared to $6,199 million[30]. - Basic earnings per share for Q4 2024 increased to $3.63 from $3.19 in Q4 2023, with year-to-date earnings per share rising to $13.71 from $12.70[27]. - Reported diluted EPS for 2024 was $13.62, an increase of 8% compared to 2023[38]. - Adjusted diluted EPS for 2024 reached $15.51, reflecting a 9% increase from the previous year[38]. Cash Flow and Shareholder Returns - The company generated operating cash flow of $9.4 billion in 2024 and returned $7.1 billion to shareholders through dividends and share buybacks[6]. - Cash dividends per share for Q4 2024 were $1.39, up from $1.275 in Q4 2023, with year-to-date dividends increasing to $5.56 from $5.10[27]. - Free Cash Flow (FCF) for 2024 was $1,559 million, slightly down from $1,665 million in 2023[46]. Segment Performance - Americas segment sales for the fourth quarter were $3,609 million, a 1% increase year-over-year, with operating profit margin at 31.9%[8]. - EMEA segment sales were $2,059 million, down 2% year-over-year, but operating profit margin improved to 33.3%, up 400 basis points[11]. - The Americas segment reported sales of $3,609 million in Q4 2024, up from $3,583 million in Q4 2023, contributing to a year-to-date total of $14,442 million compared to $14,304 million[32]. Balance Sheet and Capital Expenditures - Total assets as of December 31, 2024, were $80,147 million, a slight decrease from $80,811 million in 2023[29]. - Total liabilities increased to $40,659 million in 2024 from $39,716 million in 2023, while total equity decreased to $39,475 million from $41,082 million[29]. - Capital expenditures for Q4 2024 were $1,250 million, compared to $1,151 million in Q4 2023, with year-to-date capital expenditures at $4,497 million versus $3,787 million[30]. Future Outlook - For 2025, the company expects adjusted diluted earnings per share to be in the range of $16.15 to $16.55, indicating a growth of 4% to 7% compared to the prior year[7]. - First-quarter 2025 adjusted earnings per share guidance is projected to be between $3.85 and $3.95, representing a growth of 3% to 5% year-over-year[7]. - The company anticipates further growth in the upcoming quarters, supported by strategic initiatives and market expansion efforts[36]. - The estimated currency headwind for 2025 is projected to be around 4%[38]. Cost Management - The company implemented a cost reduction program, resulting in charges of $145 million for the year ended December 31, 2024, compared to $40 million in 2023[30]. - The company has implemented a cost reduction program, contributing an additional $145 million to the operating profit[36]. Adjusted Metrics - Adjusted net income for the year to date is $7.475 billion, with a reported net income of $6.565 billion[37]. - Adjusted operating margin improved to 29.5%, up from 27.6% in the previous year[36]. - Adjusted EBITDA for 2024 was $12,819 million, representing 38.8% of sales[38]. - Reported sales for 2024 totaled $33,005 million, with an adjusted EBITDA margin of 38.8%[38]. - Adjusted income from equity investments is reported at $242 million, reflecting a significant increase[37]. Capital Structure - Net debt as of December 31, 2024, was $16,773 million, a decrease from $17,075 million in 2023[48]. - Adjusted net debt increased to $16.769 billion in Q4 2024 from $15.466 billion in Q1 2024[50]. - Total reported capital decreased from $55.804 billion in Q3 2023 to $55.700 billion in Q1 2024[50]. - Linde plc shareholders' equity was $38.092 billion in Q4 2024, down from $39.720 billion in Q3 2023[50].