Linde plc(US:LIN)2025-10-31 14:41Financial Performance - In Q3 2025, Linde's sales reached $8,615 million, a 3% increase from the previous year, driven by a 2% rise in pricing and a 1% contribution from acquisitions [109]. - Reported operating profit for Q3 2025 was $2,367 million, representing a 13% year-over-year increase, with an operating margin of 27.5% [110]. - Adjusted operating profit for Q3 2025 was $2,558 million, up 3% from 2024, with an adjusted operating margin of 29.7% [111]. - Reported net income for Linde plc increased by $379 million, or 24%, in Q3 2025 compared to Q3 2024, and by $528 million, or 11%, for the nine months ended September 30, 2025 [130]. - Adjusted diluted earnings per share (EPS) increased by $0.27, or 7%, for Q3 2025, and by $0.72, or 6%, for the nine months ended September 30, 2025, driven by higher net income and lower diluted shares outstanding [133]. - Reported net income for Q3 2025 was $1,929 million, up from $1,550 million in Q3 2024, reflecting a 24% increase [177]. Tax and Earnings - The effective tax rate decreased to 18.0% in Q3 2025 from 24.1% in Q3 2024, contributing to a diluted EPS of $4.09, a 27% increase year-over-year [110]. - The effective tax rate (ETR) for Q3 2025 was 18.0%, down from 24.1% in Q3 2024, primarily due to a tax rate decrease in EMEA, resulting in a benefit of $156 million [125]. Sales and Segments - Total sales for the company increased by 3% to $8,615 million in Q3 2025, and by 2% to $25,222 million for the nine months ended September 30, 2025, compared to the respective 2024 periods [140]. - The Americas segment reported a sales increase of $228 million, or 6%, in Q3 2025, with higher pricing contributing 3% to sales [142]. - EMEA segment sales increased by $67 million, or 3%, in Q3 2025, with currency translation contributing a 5% increase due to the strengthening of the Euro and British pound [147]. - APAC segment sales increased by $25 million, or 1%, in Q3 2025, but decreased by $29 million, or 1%, for the nine months ended September 30, 2025, compared to 2024 [150]. - Engineering segment sales decreased by $92 million, or 15%, in Q3 2025, and by $59 million, or 3%, for the nine months ended September 30, 2025, driven by project timing [153]. - Other segment sales increased by $31 million, or 10%, in Q3 2025, and by $18 million, or 2%, for the nine months ended September 30, 2025, primarily due to higher volumes in Linde Advanced Material Technologies [158]. Expenses and Costs - Cost of sales, excluding depreciation and amortization, was 50.8% of sales in Q3 2025, down from 52.1% in Q3 2024, reflecting higher pricing and productivity gains [115]. - Selling, general and administrative expenses rose by 9% in Q3 2025, accounting for 10.4% of sales, compared to 9.8% in the same quarter of 2024 [116]. - Net pension and OPEB cost benefit was $57 million for Q3 2025, up from $45 million in Q3 2024, primarily due to lower interest costs [124]. Cash Flow and Investments - Cash provided by operations was $7,320 million for the nine months ended September 30, 2025, an increase of $706 million, or 11%, compared to 2024 [163]. - Net cash used for investing activities was $4,260 million for the nine months ended September 30, 2025, an increase of $992 million, or 30%, versus 2024, due to higher capital expenditures and acquisition spend [164]. - Capital expenditures for the nine months ended September 30, 2025, were $3,803 million, $556 million higher than the prior year, primarily for new plant and production equipment [164]. - Cash used for financing activities was $3,536 million for the nine months ended September 30, 2025, compared to $2,749 million for the same period in 2024 [169]. - Cash dividends increased by $117 million to $2,113 million, driven by an 8% increase in quarterly dividends per share from $1.39 to $1.50 [171]. Employee and Operational Metrics - The number of employees decreased by 107 to 65,489 as of September 30, 2025, primarily due to ongoing cost reduction programs [134]. - Other comprehensive loss for Q3 2025 was $165 million, primarily due to currency translation adjustments of $167 million [138]. - Noncontrolling interests income was reported at $43 million for Q3 2025, down from $53 million in Q3 2024, reflecting the impact of a divestiture in the APAC segment [129]. Balance Sheet and Assets - Current assets as of September 30, 2025, were $5,442 million, a decrease from $7,827 million at the end of December 31, 2024 [193]. - Long-term assets increased to $16,355 million as of September 30, 2025, compared to $14,481 million at the end of December 31, 2024 [193]. - Current liabilities rose to $12,190 million as of September 30, 2025, compared to $10,309 million at the end of December 31, 2024 [193]. - Long-term liabilities increased to $70,688 million as of September 30, 2025, from $64,848 million at the end of December 31, 2024 [193].