Linde plc(LIN) - 2025 Q2 - Quarterly Results

Executive Summary & Business Outlook Linde plc reported strong Q2 2025 financial results, with increased EPS and operating margins, supported by a robust project backlog and positive future guidance Second-Quarter 2025 Financial Highlights Linde plc reported strong second-quarter 2025 results, with sales up 3% year-over-year to $8,495 million and adjusted diluted EPS increasing 6% to $4.09. Operating profit margins expanded by 80 basis points, and operating cash flow grew 15% Second-Quarter 2025 Key Financial Highlights | Metric | Q2 2025 (Millions $) | YoY Change (%) | | :-------------------------------- | :------------------- | :--------- | | Sales | $8,495 | +3 | | Underlying Sales | | +1 | | Net Income (GAAP) | $1,766 | +6 | | Diluted EPS (GAAP) | $3.73 | +8 | | Adjusted Net Income | $1,937 | +4 | | Adjusted EPS | $4.09 | +6 | | Operating Profit (GAAP) | $2,354 | | | Adjusted Operating Profit | $2,556 | +6 | | Adjusted Operating Profit Margin | 30.1% | +80 bps | | Operating Cash Flow | $2,211 | +15 | | Capital Expenditures | $1,257 | | | Free Cash Flow | $954 | | | Shareholder Returns (Dividends & Repurchases) | $1,811 | | CEO Commentary & Strategic Outlook CEO Sanjiv Lamba highlighted Linde's strong resiliency and high-quality results despite a muted industrial economy, emphasizing EPS growth and operating margin expansion. The company continues to secure future contractual growth, particularly in electronic and clean energy markets, with a $7.1 billion sale-of-gas backlog - Linde demonstrated strong resiliency, delivering high-quality results against a muted industrial economy[5] - Secured future, contractual growth with new wins added to the project backlog, including a long-term agreement for a world-scale low-carbon ammonia facility in the U.S. Gulf Coast[5] - Current $7.1 billion sale-of-gas backlog ensures attractive growth for years to come, with confidence in adding more high-quality projects in electronic and clean energy end markets[5] Financial Guidance for Q3 and Full-Year 2025 Linde provided adjusted diluted EPS guidance for Q3 2025 and the full-year 2025, projecting continued growth. Full-year capital expenditures are expected to be between $5.0 billion and $5.5 billion to support growth and maintenance 2025 Adjusted Diluted EPS Guidance | Period | Range (USD) | YoY Growth (%) | YoY Growth (ex. FX) (%) | | :---------------- | :---------- | :--------- | :------------------ | | Third Quarter 2025 | $4.10 - $4.20 | 4 - 7 | 3 - 6 | | Full-Year 2025 | $16.30 - $16.50 | 5 - 6 | 4 - 5 | - Full-year 2025 capital expenditures are expected to be in the range of $5.0 billion to $5.5 billion to support growth and maintenance requirements, including the $7.1 billion contractual sale of gas project backlog[6] Company Overview Linde is a leading global industrial gases and engineering company, with this section detailing its mission, non-GAAP financial measures, and forward-looking statement disclaimers About Linde Linde is a leading global industrial gases and engineering company with $33 billion in sales in 2024. The company provides high-quality solutions, technologies, and services across diverse end markets, focusing on productivity, sustainability, decarbonization, and planet protection - Linde is a leading global industrial gases and engineering company with 2024 sales of $33 billion[14] - Mission: Making the world more productive every day by providing solutions, technologies, and services that enhance customer success and help sustain, decarbonize, and protect the planet[14] - Serves end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals, and mining, with applications including clean hydrogen production, carbon capture, medical oxygen, and high-purity gases[15] Non-GAAP Financial Measures The report utilizes non-GAAP measures like adjusted amounts, free cash flow, and return on capital to supplement investors' understanding of the company's operating performance and liquidity. These measures exclude items not indicative of ongoing business trends, such as purchase accounting impacts from the Linde AG merger and certain cost reduction charges, to provide a consistent basis for evaluation - Adjusted amounts, free cash flow, and return on capital are non-GAAP measures intended to supplement investors' understanding of the company's financial statements[16][21][32] - Non-GAAP measures exclude items not indicative of ongoing business trends, such as cost reduction and other charges, and purchase accounting impacts from the Linde AG merger, to allow for better evaluation of historical and future business trends on a consistent basis[17][21][32] - A reconciliation of non-GAAP adjusted EPS guidance to GAAP EPS is not provided due to the uncertainty of timing and magnitude of excluded items[17] Forward-Looking Statements This document contains forward-looking statements, identified by specific terms, which are based on management's expectations but involve inherent risks and uncertainties. These risks, detailed in the company's Form 10-K, could cause actual results to differ materially from projections, and Linde assumes no obligation to update these statements - The document contains forward-looking statements based on management's reasonable expectations and assumptions, identified by terms like 'anticipate,' 'expect,' 'will,' and 'potential'[18] - These statements involve risks and uncertainties, including market performance, economic developments, currency fluctuations, raw material costs, catastrophic events, regulatory changes, and competitive impacts[18] - Linde plc assumes no obligation to update or revise any forward-looking statement in response to changing circumstances, and risks are further described in the company's Form 10-K[19] Consolidated Financial Statements (GAAP) This section presents Linde's GAAP consolidated financial statements, including the statement of income, balance sheet, and cash flows, highlighting key financial movements Consolidated Statement of Income Linde's GAAP consolidated statement of income for Q2 2025 shows sales of $8,495 million, with net income attributable to Linde plc of $1,766 million, resulting in diluted EPS of $3.73. Year-to-date figures also reflect growth compared to 2024 Consolidated Statement of Income (GAAP) - Key Figures | Metric (Millions $) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------- | :------ | :------ | :------- | :------- | | Sales | $8,495 | $8,267 | $16,607 | $16,367 | | Operating Profit | $2,354 | $2,184 | $4,538 | $4,279 | | Income Before Income Taxes and Equity Investments | $2,346 | $2,163 | $4,526 | $4,243 | | Income Taxes | $573 | $508 | $1,084 | $971 | | Net Income - Linde plc | $1,766 | $1,663 | $3,439 | $3,290 | | Diluted Earnings Per Share | $3.73 | $3.44 | $7.24 | $6.79 | | Cash Dividends Per Share | $1.50 | $1.39 | $3.00 | $2.78 | Condensed Consolidated Balance Sheet As of June 30, 2025, Linde's total assets increased to $86,078 million from $80,147 million at year-end 2024, driven by increases in property, plant and equipment, and goodwill. Total liabilities also rose, with long-term debt seeing a significant increase Condensed Consolidated Balance Sheet (GAAP) - Key Figures | Metric (Millions $) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Assets | | | | Total Current Assets | $13,627 | $12,945 | | Property, plant and equipment - net | $26,928 | $24,775 | | Goodwill | $27,812 | $25,937 | | Total Assets | $86,078 | $80,147 | | Liabilities & Equity | | | | Total Current Liabilities | $14,714 | $14,544 | | Long-term debt | $19,701 | $15,343 | | Total Liabilities | $46,092 | $40,659 | | Total Linde plc Shareholders' Equity | $38,515 | $38,092 | | Total Equity | $39,973 | $39,475 | | Total Liabilities and Equity | $86,078 | $80,147 | Condensed Consolidated Statement of Cash Flows For Q2 2025, net cash provided by operating activities increased to $2,211 million, up 15% year-over-year. However, significant cash outflows for investing and financing activities, including capital expenditures and share repurchases, led to a decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (GAAP) - Key Figures | Metric (Millions $) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------------- | :------ | :------ | :------- | :------- | | Net cash provided by operating activities | $2,211 | $1,929 | $4,372 | $3,883 | | Net cash used for investing activities | $(1,457) | $(1,270) | $(2,826) | $(2,311) | | Net cash used for financing activities | $(1,366) | $(808) | $(1,754) | $(1,476) | | Change in cash and cash equivalents | $(508) | $(222) | $(64) | $(38) | | Cash and cash equivalents, end-of-period | $4,786 | $4,626 | $4,786 | $4,626 | Segment Performance This section details the financial performance of Linde's Americas, APAC, EMEA, and Engineering segments, including sales, operating profit, and key drivers Americas Segment Results The Americas segment reported a 4% increase in sales to $3,812 million in Q2 2025, driven by higher pricing and volumes, primarily in the chemicals & energy market. Operating profit margin remained flat year-over-year Americas Segment Performance (Q2 2025) | Metric | Value | | :---------------- | :------ | | Sales | $3,812 million | | YoY Sales Change | +4% | | Underlying Sales Change | +4% | | Drivers | 3% higher pricing, 1% higher volumes | | Primary End Market | Chemicals & energy | | Operating Profit | $1,209 million | | Operating Profit Margin | 31.7% | | YoY Operating Profit Margin Change | Flat | APAC Segment Results APAC sales were flat at $1,655 million in Q2 2025, with underlying sales decreasing 1% due to lower volumes in the manufacturing sector. Despite this, the segment achieved a 100 basis point improvement in operating profit margin APAC Segment Performance (Q2 2025) | Metric | Value | | :---------------- | :------ | | Sales | $1,655 million | | YoY Sales Change | Flat | | Underlying Sales Change | -1% | | Drivers | Stable pricing, 1% lower volumes | | Primary End Market | Manufacturing | | Operating Profit | $490 million | | Operating Profit Margin | 29.6% | | YoY Operating Profit Margin Change | +100 bps | EMEA Segment Results EMEA sales increased 3% to $2,162 million in Q2 2025, despite a 1% decrease in underlying sales due to lower volumes in metals & mining and manufacturing, which offset higher pricing. The segment significantly expanded its operating profit margin by 240 basis points EMEA Segment Performance (Q2 2025) | Metric | Value | | :---------------- | :------ | | Sales | $2,162 million | | YoY Sales Change | +3% | | Underlying Sales Change | -1% | | Drivers | 3% higher pricing, offset by 4% lower volumes | | Primary End Markets | Metals & mining, manufacturing | | Operating Profit | $780 million | | Operating Profit Margin | 36.1% | | YoY Operating Profit Margin Change | +240 bps | Linde Engineering Segment Results Linde Engineering sales grew 1% to $551 million in Q2 2025, with an operating profit of $90 million. The segment reported new order intake of $311 million and a third-party sale of equipment backlog of $3.2 billion Linde Engineering Segment Performance (Q2 2025) | Metric | Value | | :-------------------------- | :------ | | Sales | $551 million | | YoY Sales Change | +1% | | Operating Profit | $90 million | | Operating Profit Margin | 16.3% | | Order Intake (Q2) | $311 million | | Third-Party Sale of Equipment Backlog | $3.2 billion | Non-GAAP Reconciliations and Definitions This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including adjusted operating profit, EPS, EBITDA, free cash flow, net debt, and return on capital Summary of Non-GAAP Reconciliations This section provides a summary of non-GAAP adjustments for sales, net income, operating profit, and diluted EPS for Q2 and year-to-date 2025, primarily adjusting for purchase accounting impacts related to the Linde AG merger and cost reduction programs Summary of Non-GAAP Reconciliations (Q2 2025) | Metric (Millions $) | Reported GAAP | Adjustments | Adjusted Non-GAAP | | :------------------ | :------------ | :---------- | :---------------- | | Sales | $8,495 | $0 | $8,495 | | Operating Profit | $2,354 | $202 | $2,556 | | Net Income | $1,766 | $171 | $1,937 | | Diluted EPS | $3.73 | $0.36 | $4.09 | Summary of Non-GAAP Reconciliations (YTD June 30, 2025) | Metric (Millions $) | Reported GAAP | Adjustments | Adjusted Non-GAAP | | :------------------ | :------------ | :---------- | :---------------- | | Sales | $16,607 | $0 | $16,607 | | Operating Profit | $4,538 | $456 | $4,994 | | Net Income | $3,439 | $378 | $3,817 | | Diluted EPS | $7.24 | $0.80 | $8.04 | - Adjustments primarily relate to purchase accounting impacts from the Linde AG merger and cost reduction program charges[22][23] Adjusted Operating Profit and Operating Margin Adjusted operating profit for Q2 2025 was $2,556 million, up 6% year-over-year, with an adjusted operating margin of 30.1%. These adjustments primarily exclude depreciation and amortization related to the fair value step-up of assets from the Linde AG merger Adjusted Operating Profit and Operating Margin | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported Operating Profit | $4,538 | $2,354 | $4,279 | $2,184 | | Total Adjustments | $456 | $202 | $484 | $238 | | Adjusted Operating Profit | $4,994 | $2,556 | $4,763 | $2,422 | | Adjusted Percentage Change | +5% | +6% | | | | Reported Operating Margin | 27.3% | 27.7% | 26.1% | 26.4% | | Adjusted Operating Margin | 30.1% | 30.1% | 29.1% | 29.3% | - Adjustments primarily relate to depreciation and amortization from the fair value step-up of fixed and intangible assets acquired in the Linde AG merger[38] Adjusted Depreciation and Amortization Adjusted depreciation and amortization for Q2 2025 was $744 million, after excluding $198 million in purchase accounting impacts related to the Linde AG merger Adjusted Depreciation and Amortization | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported Depreciation and Amortization | $1,852 | $942 | $1,907 | $958 | | Less: Purchase accounting impacts - Linde AG | $(389) | $(198) | $(477) | $(237) | | Adjusted Depreciation and Amortization | $1,463 | $744 | $1,430 | $721 | Adjusted Other Income (Expense) - Net Adjusted other income (expense) - net for Q2 2025 was $19 million, reflecting an adjustment of $(4) million related to purchase accounting impacts from the Linde AG merger Adjusted Other Income (Expense) - Net | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported Other Income (Expense) - net | $33 | $15 | $60 | $2 | | Add: Purchase accounting impacts - Linde AG | $(12) | $(4) | $(7) | $(1) | | Adjusted Other Income (Expense) - net | $45 | $19 | $67 | $3 | - Adjustments for Other Income/(Expense) relate to the allocation of fair value step-up for ongoing Linde AG asset disposals[38] Adjusted Net Pension and OPEB Cost (Benefit) Adjusted net pension and OPEB cost (benefit), excluding service cost, for Q2 2025 was $(59) million, with no pension settlement charges in the current quarter Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :---------------------------------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported net pension and OPEB cost (benefit), excluding service cost | $(115) | $(59) | $(99) | $(49) | | Add: Pension settlement charges | $0 | $0 | $0 | $0 | | Adjusted Net Pension and OPEB cost (benefit), excluding service costs | $(115) | $(59) | $(99) | $(49) | Adjusted Interest Expense - Net Adjusted interest expense - net for Q2 2025 was $67 million, with no purchase accounting impacts from Linde AG affecting this metric in the current quarter Adjusted Interest Expense - Net | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported interest expense - net | $127 | $67 | $135 | $70 | | Add: Purchase accounting impacts - Linde AG | $0 | $0 | $3 | $1 | | Adjusted interest expense - net | $127 | $67 | $138 | $71 | - Adjustments for interest expense relate to the amortization of the fair value of debt acquired in the merger[39] Adjusted Income Taxes and Effective Tax Rate Adjusted income taxes for Q2 2025 were $573 million, with an adjusted effective tax rate of 23.5%. Adjustments include purchase accounting impacts and cost reduction program charges Adjusted Income Taxes and Effective Tax Rate | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported Income Taxes | $1,084 | $573 | $971 | $508 | | Total Adjustments | $108 | $46 | $82 | $62 | | Adjusted Income Taxes | $1,192 | $619 | $1,053 | $570 | | Reported Effective Tax Rate | 24.0% | 24.4% | 22.9% | 23.4% | | Adjusted Effective Tax Rate | 23.9% | 23.5% | 22.7% | 23.1% | - Adjustments relate to the current and deferred income tax impact on other non-GAAP adjustments, determined using applicable tax rates for relevant jurisdictions[40] Adjusted Income from Equity Investments Adjusted income from equity investments for Q2 2025 was $51 million, after adding $18 million for purchase accounting impacts related to the Linde AG merger Adjusted Income from Equity Investments | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported income from equity investments | $71 | $33 | $83 | $45 | | Add: Purchase accounting impacts - Linde AG | $36 | $18 | $36 | $18 | | Adjusted income from equity investments | $107 | $51 | $119 | $63 | - Adjustments represent the amortization of increased fair value on equity investments related to depreciable and amortizable assets[41] Adjusted Noncontrolling Interests Adjusted noncontrolling interests for Q2 2025 were $(40) million, reflecting adjustments for purchase accounting impacts and cost reduction programs Adjusted Noncontrolling Interests | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported noncontrolling interests | $(74) | $(40) | $(75) | $(37) | | Total Adjustments | $(6) | $(3) | $(6) | $(3) | | Adjusted noncontrolling interests | $(80) | $(43) | $(81) | $(40) | - Adjustments represent the noncontrolling interests' ownership portion of the other described adjustments, determined on an entity-by-entity basis[41] Adjusted Net Income - Linde plc Adjusted net income attributable to Linde plc for Q2 2025 was $1,937 million, an increase from the reported GAAP net income of $1,766 million, after accounting for purchase accounting impacts and cost reduction charges Adjusted Net Income - Linde plc | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported net income | $3,439 | $1,766 | $3,290 | $1,663 | | Total Adjustments | $378 | $171 | $390 | $196 | | Adjusted net income - Linde plc | $3,817 | $1,937 | $3,680 | $1,859 | Adjusted Diluted EPS Adjusted diluted EPS for Q2 2025 was $4.09, representing a 6% year-over-year increase. This figure excludes purchase accounting impacts and cost reduction program charges to provide a clearer view of underlying business performance Adjusted Diluted EPS | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Reported diluted EPS | $7.24 | $3.73 | $6.79 | $3.44 | | Total Adjustments | $0.80 | $0.36 | $0.81 | $0.41 | | Adjusted diluted EPS | $8.04 | $4.09 | $7.60 | $3.85 | | Adjusted Percentage Change | +6% | +6% | | | - Adjusted EPS guidance for 2025 is a non-GAAP measure that excludes impacts of certain items not representative of underlying business performance, such as cost reduction charges and potential divestitures[42] Adjusted EBITDA and % of Sales Adjusted EBITDA for Q2 2025 was $3,351 million, with an adjusted EBITDA as a percentage of sales of 39.4%. Adjustments primarily include cost reduction program charges and purchase accounting impacts Adjusted EBITDA and % of Sales | Metric | YTD June 30, 2025 | Q2 2025 | YTD June 30, 2024 | Q2 2024 | | :-------------------------- | :---------------- | :------ | :---------------- | :------ | | Net Income - Linde plc | $3,439 | $1,766 | $3,290 | $1,663 | | EBITDA | $6,461 | $3,329 | $6,279 | $3,187 | | Total Adjustments | $103 | $22 | $43 | $19 | | Adjusted EBITDA | $6,564 | $3,351 | $6,322 | $3,206 | | Reported Sales | $16,607 | $8,495 | $16,367 | $8,267 | | EBITDA % of Sales | 38.9% | 39.2% | 38.4% | 38.6% | | Adjusted EBITDA as a % of Sales | 39.5% | 39.4% | 38.6% | 38.8% | Free Cash Flow (FCF) Free cash flow for Q2 2025 was $954 million, calculated as operating cash flow less capital expenditures. This metric is used by investors and management to evaluate the company's ability to pursue shareholder value-enhancing opportunities Free Cash Flow (FCF) | Metric (Millions $) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------ | :------ | :------ | :------ | :------ | :------ | :------ | | Operating Cash Flow | $2,211 | $2,161 | $2,809 | $2,731 | $1,929 | $1,954 | | Less: Capital Expenditures | $(1,257) | $(1,270) | $(1,250) | $(1,066) | $(1,133) | $(1,048) | | Free Cash Flow | $954 | $891 | $1,559 | $1,665 | $796 | $906 | - Free Cash Flow (FCF) is a measure used to evaluate a company's ability to pursue opportunities that enhance shareholder value[44] Net Debt Net debt as of Q2 2025 was $21,134 million, calculated as total debt less cash and cash equivalents. Adjusted net debt, excluding purchase accounting impacts, was $21,130 million Net Debt (Millions $) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Debt | $25,920 | $23,897 | $21,623 | $22,262 | $21,518 | $20,319 | | Less: Cash and cash equivalents | $(4,786) | $(5,294) | $(4,850) | $(5,187) | $(4,626) | $(4,848) | | Net debt | $21,134 | $18,603 | $16,773 | $17,075 | $16,892 | $15,471 | | Less: Purchase accounting impacts - Linde AG | $(5) | $(4) | $(4) | $(4) | $(4) | $(5) | | Adjusted net debt | $21,130 | $18,599 | $16,769 | $17,071 | $16,888 | $15,466 | - Net debt is a financial liquidity metric used to evaluate a company's ability to repay its debt[46] After-tax Return on Capital (ROC) The adjusted after-tax return on capital (ROC) for Q2 2025 was 25.1%, indicating the return generated on net assets employed in the business. This metric is adjusted for non-GAAP items to provide a clearer view of operational efficiency After-tax Return on Capital (ROC) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :---------------------------------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Reported NOPAT (Q2) | $1,857 | $1,753 | $1,809 | $1,655 | $1,753 | $1,714 | | Adjusted NOPAT (Q2) | $2,031 | $1,963 | $1,986 | $1,988 | $1,953 | $1,912 | | 4-quarter trailing reported NOPAT | $7,074 | $6,970 | $6,931 | $6,753 | $6,727 | $6,626 | | 4-quarter trailing adjusted NOPAT | $7,968 | $7,890 | $7,839 | $7,697 | $7,560 | $7,450 | | 5-quarter average ending capital | $57,914 | $56,830 | $56,377 | $55,994 | $55,535 | $55,277 | | 5-quarter average ending adjusted capital | $31,786 | $30,701 | $30,248 | $29,865 | $29,404 | $29,144 | | After-tax ROC (4-quarter reported NOPAT / 5-quarter average ending capital) | 12.2% | 12.3% | 12.3% | 12.1% | 12.1% | 12.0% | | Adjusted after-tax ROC (4-quarter trailing adjusted NOPAT / 5-quarter average ending adjusted capital) | 25.1% | 25.7% | 25.9% | 25.8% | 25.7% | 25.6% | - After-tax return on capital (ROC) evaluates the return on net assets employed in the business, measuring after-tax operating profit generated from investments by all parties[46]