Linde plc(US:LIN)2026-02-05 12:47Financial Performance - Fourth-quarter 2025 net income was $1,530 million, down 11% year-over-year, with diluted earnings per share of $3.26, down 9%[1] - Fourth-quarter sales reached $8,764 million, an increase of 6% compared to the prior year, driven by a 2% price increase and 1% volume growth[2] - Adjusted operating profit for the fourth quarter was $2,585 million, up 4% year-over-year, with an adjusted operating profit margin of 29.5%[3] - Operating profit for Q4 2025 was $2,018 million, down 11.1% from $2,270 million in Q4 2024[26] - Net income for Q4 2025 was $1,530 million, compared to $1,725 million in Q4 2024, reflecting a decrease of 11.3%[26] - Basic earnings per share for Q4 2025 were $3.28, down from $3.63 in Q4 2024, a decline of 9.6%[26] - Adjusted net income for Linde plc reached $1,725 million for the year to date, compared to $1,550 million in the previous year, reflecting a growth of approximately 11.3%[36] - Adjusted diluted EPS for the current period is $3.60, an increase from $3.26 in the same period last year, representing a year-over-year growth of 10.4%[36] Cash Flow and Capital Expenditures - Operating cash flow for the fourth quarter was $3,030 million, an increase of 8% year-over-year, resulting in free cash flow of $1,572 million after capital expenditures of $1,458 million[4] - Capital expenditures for the year 2025 totaled $5,261 million, compared to $4,497 million in 2024, an increase of 17%[29] - Capital expenditures for 2026 are projected to be between $5.0 billion and $5.5 billion to support operational growth[7] - Free cash flow for the year to date is reported at $1,572 million, slightly down from $1,672 million in the previous year[48] Sales and Revenue Growth - For full-year 2025, sales totaled $34.0 billion, up 3% year-over-year, with adjusted operating profit of $10.1 billion, a 4% increase from the previous year[5] - The Americas segment reported sales of $3,884 million, an 8% increase year-over-year, with an operating profit margin of 30.9%[8] - Sales for Q4 2025 reached $8,764 million, a 5.8% increase from $8,282 million in Q4 2024[26] - The Americas segment reported sales of $3,884 million in Q4 2025, up from $3,609 million in Q4 2024, a growth of 7.6%[31] - Reported sales for 2025 year to date are $8,923 million, showing a 3% increase from $8,764 million in 2024[34] - Reported sales for the year reached $33,986 million, with an EBITDA margin of 39.2%[36] Assets and Liabilities - Total assets increased to $86,817 million in 2025 from $80,147 million in 2024, representing a growth of 8.3%[28] - Total liabilities rose to $47,076 million in 2025 from $40,659 million in 2024, an increase of 15.5%[28] - Net debt stands at $21,933 million, an increase from $21,416 million year-over-year, indicating a rise in leverage[49] - Adjusted net debt increased to $21.930 billion from $21.412 billion in the prior quarter[52] Future Outlook - For 2026, adjusted diluted earnings per share is expected to be in the range of $17.40 to $17.90, representing a growth of 6% to 9% year-over-year[7] - The company expects adjusted diluted EPS guidance for 2026 to be between $4.20 and $4.30, indicating a projected increase of 6% to 9% compared to 2025[36] - The company has identified a currency headwind of approximately 3% impacting adjusted earnings for the upcoming periods[36] Cost Management - The company implemented a cost reduction program resulting in charges of $229 million in Q4 2025, compared to no charges in Q4 2024[31] - The company has implemented a cost reduction program contributing to improved margins and profitability[34] - The company continues to focus on market expansion and cost reduction strategies to enhance shareholder value[47] Shareholder Returns - The company returned $7.4 billion to shareholders in 2025 through dividends and share buybacks[6]