Linde plc(LIN)2025-02-26 15:17Financial Performance - Linde's sales for 2024 were 33,364 million in 2022, indicating a year-over-year decline of approximately 1.1%[16]. - Sales for 2024 were 8,635 million, driven by higher pricing and productivity savings[124]. - Net income for Linde plc rose to 6,199 million in 2023[124]. - Adjusted net income was 6,989 million in 2023[127]. - Cash flow from operations was 118 million from 2023, influenced by higher net income[124]. - Cost of sales decreased by 2% to 3,337 million, accounting for 10.1% of sales[132]. - Reported interest expense rose by 28% to 1.03, or 8%, in 2024 compared to 2023, with adjusted diluted EPS at 1.31[147]. - EBITDA rose to 12,007 million in 2023, while adjusted EBITDA increased to 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 2,655 million[124]. - Acquisitions in 2024 were 636 million from 2023, primarily related to packaged gas businesses in the Americas[203]. - Linde's backlog of large projects under construction was approximately 4,850 million, an increase of 4,359 million in 2024 from 16,773 million at December 31, 2024, an increase of 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 3.1 billion already repurchased by December 31, 2024[107]. - As of December 31, 2024, Linde has 2,655 million in 2024, reflecting a 9% increase in dividends per share to 5.10[208]. - Net purchases of ordinary shares were 3,925 million in 2023[207].