Core Insights - The article discusses the perspective of Joseph Jones, a professor with over fifteen years of market study experience, focusing on portfolio construction from a dividend growth investor's viewpoint [1]. Group 1 - Joseph Jones emphasizes the importance of dividend growth in portfolio construction, which is a key strategy for long-term investors [1].

Collaboration with Linde - O-I Glass, Inc. has partnered with Linde plc to implement the OPTIMELTTM Thermochemical Regenerator technology at its Holzminden plant in Germany, aimed at enhancing efficiency and reducing emissions [1][2] - The OPTIMELTTM TCR technology can reduce fuel consumption in the melting process by approximately 30% and is adaptable to various fuels, including low-carbon hydrogen [2][5] - Linde will also install a Centrifugal VITRON Vacuum Pressure Swing Adsorption plant to produce oxygen for the furnace, improving power efficiency and lowering the environmental footprint [4][5] Financial Performance - O-I Glass reported a fourth-quarter 2024 adjusted loss per share of 5 cents, which was better than the Zacks Consensus Estimate of a loss of 11 cents, but down from earnings of 12 cents in the same quarter last year [6] - Revenues for the quarter were $1.53 billion, a decrease of 6.8% year-over-year, missing the Zacks Consensus Estimate of $1.61 billion, with flat sales volume in tons [7] Stock Performance - O-I Glass shares have declined by 23.6% over the past year, compared to a 21.8% decline in the industry [8]

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].

Core Viewpoint - Linde plc reported strong fourth-quarter earnings, with adjusted earnings per share surpassing estimates, although total revenues slightly missed expectations and declined year-over-year [1][2]. Financial Performance - Adjusted earnings were $3.97 per share, exceeding the Zacks Consensus Estimate of $3.93, and improved from $3.59 in the same quarter last year [2]. - Total quarterly revenues were $8.28 billion, missing the Zacks Consensus Estimate of $8.36 billion and declining from $8.30 billion in the previous year [2]. Segment Analysis - The strong quarterly earnings were primarily driven by higher pricing and volumes from the Americas segment [3]. - The Americas business unit, which includes operations in 20 countries such as the United States, Canada, Mexico, and Brazil, generated 46.4% of the total operating profit [4]. - Operating profit in the Americas segment increased nearly 7% year-over-year to $1.15 billion, while revenues from the segment were $3.6 billion, reflecting a modest increase of 0.7% [4][5].

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]