Financial Data and Key Metrics Changes - EPS for the third quarter was $4.21, representing a 7% increase year-over-year [4] - Operating cash flow grew by 8% to $2.9 billion, with free cash flow generation of $1.7 billion [4][14] - Sales reached $8.6 billion, up 3% from the previous year and 1% sequentially, with underlying sales increasing by 2% year-over-year [12][14] - The backlog remains strong at $10 billion, securing long-term EPS growth [4] Business Line Data and Key Metrics Changes - Consumer-related end markets, accounting for about one-third of global sales, showed stable growth, particularly in healthcare and food and beverage [5] - Electronics, representing 9% of sales, was the fastest-growing end market with 6% growth driven by high-end chip production [6] - Industrial end markets, which make up about two-thirds of sales, faced challenges, with chemicals and energy up 1% due to inflationary price increases, but base volumes were down [8][9] Market Data and Key Metrics Changes - The U.S. market showed resilience, particularly in metals and manufacturing, while Europe continued to face demand challenges [7][9] - In APAC, manufacturing volumes remained steady, with China leveling off and India showing strong growth [9] - The overall industrial activity in Europe remains soft, with no immediate catalysts for improvement [50] Company Strategy and Development Direction - The company is focused on maintaining a recession-resistant model, emphasizing productivity and efficiency while targeting high-quality growth [10] - There is a strong emphasis on capital management, with $4.2 billion invested in the business and $5.3 billion returned to shareholders [14] - The company anticipates continued growth in electronics and is exploring opportunities in steel and metals due to recent tariffs [23][44] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the outlook, noting the difficulty in identifying near-term catalysts for industrial activity improvement [15] - The company has navigated an industrial recession for over two years and is prepared to take mitigating actions if conditions worsen [16] - There is confidence in the competitiveness of customers and the potential for a rebound in the chemical sector over time [72] Other Important Information - The company expects fourth-quarter EPS guidance to be between $4.10 and $4.20, reflecting a 3% to 6% growth [15] - The tax rate for the fourth quarter is anticipated to be higher than the current run rate due to timing effects [15] Q&A Session Summary Question: Regarding the backlog and new projects - The backlog is at a record level of $7 billion, and the company is on track to maintain this by year-end despite project startups [19] Question: Opportunities in the U.S. steel market - The company is seeing potential expansion opportunities in the U.S. steel and metals sector due to tariffs [23] Question: Outlook for 2026 - The company will provide guidance for next year in February, but the backlog is expected to support continued EPS growth [28] Question: Pricing trends and macroeconomic conditions - Pricing has remained stable year-over-year, with helium and rare gases being a drag on overall pricing [33][34] Question: Impact of European capacity closures - The company does not expect significant impacts from European capacity rationalization due to strong contractual protections [78] Question: Growth in the electronics sector - The semiconductor industry is expected to grow at a rate of 9% to 11% over the next five years, with increased gas intensity in advanced nodes [93][95]

Financial Data and Key Metrics Changes - EPS for the third quarter was $4.21, representing a 7% increase year-over-year [4] - Operating cash flow grew by 8% to $2.9 billion, with free cash flow generation of $1.7 billion [4][14] - Sales reached $8.6 billion, up 3% year-over-year and 1% sequentially, with underlying sales increasing by 2% [12][14] - The backlog remains strong at $10 billion, securing long-term EPS growth [4] Business Line Data and Key Metrics Changes - Consumer-related end markets, accounting for about one-third of global sales, showed stable growth, particularly in healthcare and food and beverage [5] - Electronics, representing 9% of sales, was the fastest-growing segment with 6% growth driven by high-end chip production [6] - Industrial end markets, which make up about two-thirds of sales, faced challenges, with metals and mining slightly up due to inflation but overall base volumes down [7][8] - Manufacturing grew by 3% year-on-year, particularly in the U.S., while Europe continued to face softness [9] Market Data and Key Metrics Changes - The U.S. market showed resilience with mid-single-digit growth in the packaged gas business, while Europe remained weak with declining volumes [10][56] - In APAC, pricing was positive excluding helium and rare gases, but overall demand faced challenges due to deflation in China [66] - The chemical sector is currently under pressure, particularly in Europe, but there are expectations for a rebound as capacity rationalization occurs [72] Company Strategy and Development Direction - The company is focused on maintaining a recession-resistant model, emphasizing productivity and efficiency while targeting high-quality growth [10] - There is a strong emphasis on capital management, with $4.2 billion invested in the business and $5.3 billion returned to shareholders [14] - The company anticipates continued growth in electronics and is exploring opportunities in steel and metals due to recent tariffs [23][44] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment, noting that identifying near-term catalysts for improvement in industrial activity is challenging [15] - The company has been navigating an industrial recession for over two years and is prepared to take mitigating actions if conditions worsen [16] - There is optimism about the potential for recovery in the chemical sector, driven by rationalization actions in Europe [72] Other Important Information - The company expects fourth-quarter EPS guidance to be between $4.10 and $4.20, reflecting a cautious outlook [15] - The tax rate for the fourth quarter is anticipated to be higher than the current run rate due to timing effects [15] Q&A Session Summary Question: Backlog expectations for Q4 - Management confirmed that the backlog is expected to remain at a record level of $7 billion by year-end despite project startups [19] Question: Opportunities in U.S. steel projects - Management indicated that there are potential expansion opportunities in the U.S. steel sector due to tariffs, positioning the company favorably [23] Question: Outlook for 2026 - Management stated that a rigorous planning process will provide visibility for next year, with expectations for continued EPS growth driven by the project backlog [28] Question: Pricing trends and macroeconomic impact - Management noted that pricing is aligned with global inflation, and while helium pricing is a drag, overall pricing remains stable [33][34] Question: Chemical industry recovery - Management acknowledged structural challenges in the chemical sector but expressed confidence in a future rebound due to capacity rationalization [72] Question: European market conditions - Management indicated that the European market remains soft, with no immediate catalysts for change, but there is hope for future infrastructure spending to spur activity [50][51] Question: Manufacturing growth in the U.S. vs. Europe - Management highlighted that U.S. manufacturing is rebounding while Europe continues to struggle, with expectations for future growth tied to infrastructure investments [86][88]

Financial Data and Key Metrics Changes - EPS for the third quarter was $4.21, representing a 7% increase year-over-year [3] - Operating cash flow grew by 8% to $2.9 billion, with free cash flow generation of $1.7 billion [3][13] - Sales reached $8.6 billion, up 3% from the previous year, with a 1% sequential increase [11] - Underlying sales increased by 2% year-over-year, with price increases of 2% aligned with global inflation [11][12] Business Line Data and Key Metrics Changes - Consumer-related end markets, including healthcare and food & beverage, showed stable growth, with healthcare expected to remain steady [4] - Electronics was the fastest-growing end market, achieving 6% growth driven by high-end chip production [5] - Industrial end markets, which account for about two-thirds of sales, faced challenges, with metals and mining slightly up due to inflation but overall base volumes down [6][7] - Manufacturing grew by 3% year-on-year, particularly in the U.S., with strong volume growth noted [8] Market Data and Key Metrics Changes - The U.S. market showed resilience with mid-single-digit growth in the packaged gas business, while Europe continued to face negative volume trends [48][49] - China experienced a leveling off in manufacturing, while India remained on a strong growth trajectory [8] - The European market remains soft, with no immediate catalysts for improvement expected [42][44] Company Strategy and Development Direction - The company is focused on maintaining a recession-resistant model, emphasizing productivity and efficiency while targeting high-quality growth [9][16] - There is a strong emphasis on capital management, with $4.2 billion invested year-to-date and $5.3 billion returned to shareholders [13] - The company anticipates continued growth in the electronics sector, with a robust pipeline of projects expected to drive future EPS growth [36][84] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook, particularly in industrial activity, while remaining confident in the company's ability to generate shareholder value [15][16] - The company has been navigating an industrial recession for over two years and is prepared to take mitigating actions if conditions worsen [16] - There is optimism about the potential for recovery in the chemical industry, although it may take time [65] Other Important Information - The company expects fourth-quarter EPS guidance to be between $4.10 and $4.20, reflecting a cautious outlook [14] - The backlog remains strong at $10 billion, securing long-term EPS growth [3] Q&A Session Summary Question: Backlog expectations for new projects - Management confirmed that the backlog is at a record level of $7 billion and is on track to maintain this by year-end despite project startups [18] Question: Opportunities in the U.S. steel market - Management indicated that there are ongoing opportunities for expansion in the U.S. steel and metals sector due to tariffs and market positioning [20] Question: Pricing trends and macroeconomic conditions - Management noted that pricing has remained stable year-over-year, with helium and rare gases being a drag on overall pricing [28][29] Question: EPS growth algorithm and macroeconomic factors - Management explained that their EPS growth algorithm does not rely solely on macroeconomic conditions, with capital allocation and management actions being key drivers [32] Question: Future growth in electronics and industrial gas demand - Management expects robust growth in the electronics sector, driven by advancements in semiconductor technology and increased gas intensity [84] Question: Margins in EMEA and future outlook - Management indicated that margins are strong but may not expand further without volume recovery, with a focus on maintaining pricing aligned with inflation [88] Question: Demand trends in packaged gases - Management highlighted stable demand trends in the packaged gas sector, particularly in welding applications, while discussing regional consolidation opportunities [89]

Financial Performance - Third-quarter sales reached $8.615 billion, a 3% increase year-over-year and a 1% increase sequentially[5] - Operating profit for the third quarter was $2.558 billion, a 3% increase year-over-year[5] - Diluted EPS for the third quarter was $4.21, a 7% increase year-over-year[5] - Operating cash flow for the third quarter was $2.9 billion, an 8% increase year-over-year[5] - The company's backlog is $10 billion[6] Capital Management - Year-to-date capital reinvestment in the business totaled $4.2 billion, a 23% increase year-over-year[12] - Net share repurchases amounted to $3.2 billion year-to-date[10, 12] - Base capex is projected at $1.9 billion year-to-date[10] Guidance - The company anticipates fourth-quarter adjusted EPS to be in the range of $4.10 to $4.20, representing a 3% to 6% increase compared to 2024[15] - Full-year 2025 adjusted EPS is expected to be between $16.35 and $16.45, a 5% to 6% increase versus 2024[15] - Capital expenditure (CAPEX) for 2025 is projected to be in the range of $5.0 billion to $5.5 billion[15] Regional Performance - Sales in the Americas increased by 6% year-over-year to $3.846 billion[18] - Sales in APAC increased by 1% year-over-year to $1.741 billion[22] - Sales in EMEA increased by 3% year-over-year to $2.178 billion[27]

Core Insights - Linde reported quarterly earnings of $4.21 per share, exceeding the Zacks Consensus Estimate of $4.18 per share, and up from $3.94 per share a year ago, representing an earnings surprise of +0.72% [1] - The company achieved revenues of $8.62 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.17% and increasing from $8.36 billion year-over-year [2] - Linde has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Financial Performance - The earnings surprise for the previous quarter was +1.49%, with actual earnings of $4.09 per share compared to an expected $4.03 [1] - The current consensus EPS estimate for the upcoming quarter is $4.24, with expected revenues of $8.63 billion, and for the current fiscal year, the EPS estimate is $16.46 on revenues of $33.84 billion [7] Market Position - Linde shares have increased approximately 2.7% since the beginning of the year, while the S&P 500 has gained 16%, indicating underperformance relative to the broader market [3] - The Zacks Industry Rank for Chemical - Specialty is in the bottom 39% of over 250 Zacks industries, suggesting potential challenges for the sector [8] Future Outlook - The sustainability of Linde's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The trend of estimate revisions for Linde was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Financial Performance - Third-quarter 2025 net income was $1,929 million, up 24% year-over-year, with diluted earnings per share of $4.09, an increase of 27%[1] - Sales for the third quarter reached $8,615 million, a 3% increase compared to the prior year, with underlying sales up 2% from price attainment[2] - Adjusted operating profit was $2,558 million, up 3% year-over-year, with an adjusted operating profit margin of 29.7%, reflecting a 10 basis point increase[2] - Operating cash flow for the third quarter was $2,948 million, an 8% increase year-over-year, leading to free cash flow of $1,672 million after capital expenditures of $1,276 million[3] - For Q4 2025, the company expects adjusted diluted earnings per share in the range of $4.10 to $4.20, representing a 3% to 6% increase compared to the prior year[4] - Full-year 2025 adjusted diluted earnings per share guidance is projected to be between $16.35 and $16.45, indicating a 5% to 6% growth year-over-year[5] - Reported operating profit for the year to date September 30, 2025, is $6,905 million, reflecting an 8% increase compared to the same period in 2024[34] - Adjusted operating profit reached $7,552 million, with a 4% increase year-over-year[34] - Reported sales for the year to date September 30, 2025, totaled $25,222 million, up from $24,723 million in 2024, indicating a growth of 2%[34] - Adjusted net income for the year to date September 30, 2025, was $5,804 million, reflecting a 4% increase from $5,576 million in the same period of 2024[36] Segment Performance - Americas segment sales were $3,846 million, up 6% year-over-year, with operating profit margin at 31.2%[6] - APAC segment sales were $1,741 million, a 1% increase year-over-year, with operating profit margin at 28.1%[7] - EMEA segment sales reached $2,178 million, up 3% year-over-year, with operating profit margin at 35.9%[8] - Linde Engineering sales were $519 million, down 15% year-over-year, with an operating profit margin of 19.5%[9] - The Americas segment reported sales of $3.846 billion in Q3 2025, a 6.3% increase from $3.618 billion in Q3 2024[31] - The EMEA segment achieved sales of $2.178 billion in Q3 2025, up from $2.111 billion in Q3 2024[31] Cash Flow and Capital Expenditures - Capital expenditures for Q3 2025 were $1.276 billion, compared to $1.066 billion in Q3 2024[29] - Free cash flow for Q3 2025 was $1,672 million, significantly higher than $954 million in Q3 2024[46] Tax and Income Adjustments - Adjusted effective tax rate for Q3 2025 was 23.5%, compared to 22.7% in Q3 2024, indicating a slight increase in tax burden[35] - Reported effective tax rate for Q3 2025 was 21.9%, compared to 18.0% in Q3 2024, highlighting an increase in effective taxation[35] - Total adjustments for income taxes in Q3 2025 amounted to $264 million, compared to $46 million in Q3 2024, indicating higher adjustment costs[35] Earnings Per Share - Basic earnings per share for Q3 2025 were $4.11, an increase from $3.24 in Q3 2024[26] - Adjusted diluted EPS for Q3 2025 was $4.21, up 16% from $3.60 in Q3 2024[36] - Adjusted diluted EPS guidance for 2025 is projected between $16.35 and $16.45, indicating a 3% to 6% increase compared to 2024[36] Debt and Equity - Net debt as of September 30, 2025, was $21,416 million, an increase from $21,134 million in the previous quarter[48] - Total equity and redeemable noncontrolling interests increased to $40,086 million, compared to $39,986 million in the previous quarter[51] - Adjusted net debt rose to $21,412 million, up from $21,130 million in the prior quarter[51] Future Outlook - Future outlook indicates continued focus on market expansion and new product development strategies[34] - The company anticipates a currency headwind of approximately 2% impacting adjusted EPS for 2025[36]

Core Insights - Linde reported Q3 2025 adjusted EPS of $4.21, reflecting a 7% year-over-year increase, with sales reaching $8.62 billion, up 3% [1][5] - The company maintained industry-leading margins and narrowed its full-year adjusted EPS guidance to $16.35–$16.45, indicating a 5%–6% growth [1][5] Financial Performance - Net income was $1.93 billion (GAAP), with diluted EPS of $4.09, a 27% increase [5] - Adjusted net income was $1.99 billion, with adjusted EPS at $4.21, marking a 7% rise [5] - Sales increased by 3% to $8.62 billion, driven by a 2% contribution from pricing and a 1% contribution from M&A [5] - Adjusted operating profit reached $2.56 billion, up 3%, yielding a 29.7% adjusted margin, which is a 10 basis points increase year-over-year [5] Cash Flow and Returns - Operating cash flow rose to $2.95 billion, while free cash flow was $1.67 billion after $1.28 billion of capital expenditures [5] - Linde returned $1.69 billion to shareholders through dividends and buybacks during the quarter [5] Guidance and Outlook - Q4 adjusted EPS is expected to be between $4.10 and $4.20, reflecting a 3%–6% year-over-year increase [5] - Full-year 2025 adjusted EPS guidance is set at $16.35–$16.45, with a flat foreign exchange impact [5] - Full-year capital expenditures are projected to remain between $5.0 billion and $5.5 billion, supporting growth and a $7.1 billion project backlog [5] Segment Performance - **Americas**: Sales of $3.85 billion, a 6% increase; underlying growth of 4% driven by a 3% price increase and 1% volume growth in electronics and manufacturing [5] - **EMEA**: Sales of $2.18 billion, up 3%; underlying performance down 1% due to a 2% price increase but a 3% decline in volumes [5] - **APAC**: Sales of $1.74 billion, a 1% increase; underlying performance down 1% due to stable volumes and lower helium pricing [5] - **Linde Engineering**: Sales decreased by 15% to $519 million, with an operating profit of $101 million and a margin of 19.5% [5]

Core Viewpoint - Linde, the world's largest industrial gases company, reported third-quarter results that exceeded market expectations, driven by higher pricing and ongoing productivity initiatives [1] Financial Performance - The company achieved third-quarter results above market expectations, indicating strong financial performance [1] - Higher pricing contributed significantly to the positive results, reflecting effective pricing strategies [1] - Continued productivity initiatives have played a crucial role in enhancing operational efficiency [1]

Core Insights - Linde plc reported strong financial results for Q3 2025, with net income of $1,929 million and diluted earnings per share (EPS) of $4.09, reflecting increases of 24% and 27% respectively compared to the previous year [2][3] - The company anticipates continued growth, projecting adjusted diluted EPS for Q4 2025 in the range of $4.10 to $4.20, which represents a year-over-year increase of 3% to 6% [5][6] Financial Performance - Total sales for Q3 2025 reached $8,615 million, a 3% increase year-over-year, with underlying sales up 2% driven by price increases, while volumes remained flat [3][8] - Adjusted operating profit for the quarter was $2,558 million, up 3% from the prior year, with an adjusted operating profit margin of 29.7%, which is 10 basis points higher than the previous year [3][8] - Operating cash flow for Q3 2025 was $2,948 million, an 8% increase year-over-year, leading to a free cash flow of $1,672 million after capital expenditures of $1,276 million [4][8] Segment Performance - In the Americas, sales were $3,846 million, up 6% year-over-year, with operating profit of $1,199 million, representing 31.2% of sales [7] - Asia Pacific (APAC) sales were $1,741 million, a 1% increase year-over-year, with operating profit of $490 million, accounting for 28.1% of sales [9] - EMEA (Europe, Middle East & Africa) sales reached $2,178 million, up 3% year-over-year, with an operating profit of $781 million, which is 35.9% of sales [10] - Linde Engineering reported sales of $519 million, down 15% year-over-year, with an operating profit of $101 million [11] Future Outlook - For the full year 2025, Linde expects adjusted diluted EPS to be in the range of $16.35 to $16.45, indicating a growth of 5% to 6% compared to the previous year [6][8] - Full-year capital expenditures are projected to be between $5.0 billion and $5.5 billion to support growth and maintenance, including a $7.1 billion contractual sale of gas project backlog [6]

Sanjiv Lamba, CEO of Linde, explains how he sees electricity demand changing and whether low-carbon hydrogen can ever become big business https://t.co/upg4StSMlc ...