Linde plc(LIN) - 2024 Q4 - Annual Results

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].