Linde plc(US:LIN)2025-08-01 14:26PART I - FINANCIAL INFORMATION Item 1. Financial Statements This section presents Linde plc's unaudited condensed consolidated financial statements for Q2 and H1 2025, including income, balance sheet, cash flow, and detailed notes Consolidated Statement of Income Linde reported Q2 2025 sales of $8.495 billion, up 3%, with net income of $1.766 billion and diluted EPS of $3.73, up 8% Q2 & H1 2025 Financial Performance Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales | $8,495M | $8,267M | +2.8% | $16,607M | $16,367M | +1.5% | | Operating Profit | $2,354M | $2,184M | +7.8% | $4,538M | $4,279M | +6.1% | | Net Income – Linde plc | $1,766M | $1,663M | +6.2% | $3,439M | $3,290M | +4.5% | | Diluted EPS | $3.73 | $3.44 | +8.4% | $7.24 | $6.79 | +6.6% | Condensed Consolidated Balance Sheet Total assets grew to $86.1 billion by June 30, 2025, with liabilities increasing to $46.1 billion, while equity remained stable Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $13,627 | $12,945 | | Total Assets | $86,078 | $80,147 | | 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 | Condensed Consolidated Statement of Cash Flows H1 2025 net cash from operations increased to $4.37 billion, with $2.83 billion used in investing and $1.75 billion in financing Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,372 | $3,883 | | Net cash used for investing activities | $(2,826) | $(2,311) | | Net cash used for financing activities | $(1,754) | $(1,476) | | Change in cash and cash equivalents | $(64) | $(38) | | Cash and cash equivalents, end-of-period | $4,786 | $4,626 | Notes to Condensed Consolidated Financial Statements Notes detail debt issuance, derivative hedging, $1.9 billion in Russian project legal contingencies, and segment performance across regions - Linde issued €850 million, €750 million, and €650 million notes in February 2025, and CHF225 million and CHF275 million notes in June 20253233 - Contingent liabilities for suspended Russian projects total $1.9 billion as of June 30, 2025, including $1.2 billion for RCA and $0.7 billion for Amur GPP7074 Q2 2025 Sales & Operating Profit by Segment (in millions) | Segment | Sales | Operating Profit | | :--- | :--- | :--- | | Americas | $3,812 | $1,209 | | EMEA | $2,162 | $780 | | APAC | $1,655 | $490 | | Engineering | $551 | $90 | - Remaining performance obligations are estimated at $61 billion, with approximately half expected to be recognized as revenue within six years99100 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q2 2025 sales growth of 3%, adjusted operating profit up 6% to $2.6 billion, and strong H1 cash flow of $4.4 billion Consolidated Results Q2 2025 consolidated sales increased 3% to $8.5 billion, with adjusted operating profit up 6% to $2.6 billion and adjusted diluted EPS up 6% to $4.09 Q2 2025 vs Q2 2024 Performance Summary | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Sales | $8,495M | $8,267M | 3% | | Reported Operating Profit | $2,354M | $2,184M | 8% | | Adjusted Operating Profit | $2,556M | $2,422M | 6% | | Reported Diluted EPS | $3.73 | $3.44 | 8% | | Adjusted Diluted EPS | $4.09 | $3.85 | 6% | - Q2 2025 sales growth of 3% was driven by +2% Price/Mix, +1% Cost pass-through, +1% Acquisitions, offset by -1% Volume110 Segment Discussion Americas sales and profit grew 4%, EMEA profit rose 11% despite volume decline, APAC profit increased 3%, and Engineering profit fell 6% - Americas Q2 sales rose 4% to $3.8 billion, with operating profit up 4% to $1.2 billion, driven by price, volume, and acquisitions139140141 - EMEA Q2 sales increased 3% to $2.2 billion, with operating profit up 11% to $780 million, driven by pricing and currency despite volume decline142145146 - APAC Q2 sales were flat at $1.7 billion, while operating profit grew 3% to $490 million, due to productivity offsetting cost inflation and lower volumes147148150 Liquidity and Capital Resources H1 2025 cash from operations increased 13% to $4.4 billion, with $2.5 billion in capex and $3.6 billion returned to shareholders - H1 2025 cash flow from operations was $4.372 billion, a 13% increase from $3.883 billion in H1 2024160161 - Capital expenditures for H1 2025 were $2.527 billion, an increase from $2.181 billion, supporting new projects162 - Sale of gas project backlog was approximately $7.1 billion as of June 30, 2025163 Item 3. Quantitative and Qualitative Disclosures about Market Risk This section refers to the 2024 Annual Report on Form 10-K for market risk disclosures, with no material changes reported this quarter - The report refers to Item 7A of Linde's 2024 Annual Report on Form 10-K for market risk discussion190 Item 4. Controls and Procedures Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Disclosure controls and procedures were concluded to be effective as of June 30, 2025, by principal executive and financial officers191 - No material changes to internal control over financial reporting occurred during the quarter191 PART II - OTHER INFORMATION Item 1. Legal Proceedings This section refers to Note 8 of the condensed consolidated financial statements for details on current legal proceedings - Information on legal proceedings is available in Note 8 of the condensed consolidated financial statements193 Item 1A. Risk Factors No material changes to risk factors previously disclosed in the 2024 Annual Report on Form 10-K are reported - No material changes to risk factors disclosed in the company's 2024 Annual Report on Form 10-K have occurred194 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Linde repurchased 2.445 million shares for $1.11 billion in Q2 2025, with $9.7 billion remaining under the $15 billion repurchase program Q2 2025 Share Repurchases | Period | Shares Purchased (Thousands) | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 693 | $442.80 | | May 2025 | 959 | $455.31 | | June 2025 | 793 | $466.44 | | Q2 2025 Total | 2,445 | $455.38 | - $9.7 billion of share repurchases remain authorized under the $15.0 billion program approved in October 2023200