Linde plc(US:LIN)2025-05-01 14:21Financial Performance - For Q1 2025, Linde's sales were $8,112 million, flat compared to Q1 2024, with a 2% increase from higher price attainment and a 1% increase from acquisitions [103]. - Adjusted operating profit for Q1 2025 was $2,438 million, a 4% increase from Q1 2024, driven by higher pricing and productivity initiatives [106]. - Reported net income for Linde plc increased by $46 million, or 3%, in Q1 2025 compared to Q1 2024, driven by higher operating profit [123]. - Diluted earnings per share rose to $3.51 in Q1 2025, a 5% increase from $3.35 in Q1 2024, attributed to higher net income and lower diluted shares outstanding [124]. - EBITDA for Q1 2025 was $3,132 million, up from $3,092 million in Q1 2024, reflecting higher operating profit [126]. - Reported operating profit for Q1 2025 was $2,184 million, a 4% increase from $2,095 million in Q1 2024 [163]. - Adjusted net income for Q1 2025 was $1,880 million, compared to $1,821 million in Q1 2024, reflecting a 3% increase [164]. - Adjusted diluted EPS for Q1 2025 was $3.95, up from $3.75 in Q1 2024, representing a 5% increase [165]. - EBITDA for Q1 2025 was $3,132 million, with an adjusted EBITDA of $3,213 million, reflecting 39.6% of sales [165]. Expenses and Cost Management - Selling, general and administrative expenses decreased by $74 million, or 9%, in Q1 2025, representing 9.7% of sales compared to 10.6% in Q1 2024 [111]. - Cost of sales, exclusive of depreciation and amortization, decreased by $59 million, or 1%, for Q1 2025, with costs representing 51.2% of sales [110]. - The number of employees decreased to 65,069 in Q1 2025, down by 1,126 from the previous year, primarily due to ongoing cost reduction programs [125]. Taxation - The effective tax rate for Q1 2025 was 23.4%, up from 22.3% in Q1 2024, primarily due to lower tax benefits from share-based compensation [105]. Cash Flow and Investments - Net cash provided by operating activities for the first quarter was $2,161 million, compared to $1,954 million in 2024 [152]. - Capital expenditures for the first quarter were $1,270 million, an increase from $1,048 million in 2024 [152]. - Cash provided by operations for Q1 2025 was $2,161 million, an increase of $207 million or 11% compared to Q1 2024 [153]. - Net cash used for investing activities was $1,369 million in Q1 2025, up $328 million from the previous year, primarily due to higher capital expenditures of $1,270 million [154]. - The company reported a net cash decrease from financing activities of $388 million, an improvement from a decrease of $668 million in 2024 [152]. - Cash used for financing activities decreased to $388 million in Q1 2025 from $668 million in Q1 2024, with cash provided by debt increasing to $1,493 million [157]. Segment Performance - The Americas segment reported sales of $3,666 million, up 3% from $3,560 million in 2024, with operating profit increasing by 5% to $1,137 million [131][132]. - EMEA segment sales decreased by 3% to $2,031 million, while operating profit increased by 5% to $722 million, driven by higher pricing [134][138]. - APAC segment sales fell by 3% to $1,539 million, with operating profit increasing by 1% to $451 million, primarily due to productivity initiatives [139][142]. - Engineering segment sales rose by 5% to $565 million, with operating profit increasing by 14% to $114 million, attributed to project timing [143][145]. - Other segment sales decreased by 3% to $311 million, with operating profit declining by 26% to $14 million, impacted by higher helium costs [146][149]. Comprehensive Income and Backlog - Other comprehensive income for Q1 2025 was $131 million, mainly from currency translation adjustments of $134 million [128]. - As of March 31, 2025, Linde's gas backlog for large projects under construction was approximately $7.0 billion [155]. - Acquisitions net of cash acquired totaled $112 million in Q1 2025, mainly in the Americas and APAC regions [156]. Balance Sheet Highlights - Current assets increased to $8,561 million at the end of March 2025, up from $7,827 million at the end of December 2024 [181]. - Long-term liabilities rose to $68,980 million at the end of March 2025, compared to $64,848 million at the end of December 2024 [181]. - The amount due from non-guarantor subsidiaries in current assets was $4,542 million as of March 31, 2025 [181]. - The amount due to non-guarantor subsidiaries in current liabilities was $1,888 million as of March 31, 2025 [181]. - Transactions with non-guarantor subsidiaries amounted to $833 million for the three months ended March 31, 2025, and $7,177 million for the twelve months ended December 31, 2024 [181]. Future Outlook - The company is expected to provide further discussions on market risk in its 2024 Annual Report on Form 10-K [182].