Linde plc(US:LIN)2026-02-25 15:13Financial Performance - Linde's sales for 2025 reached $33,986 million, showing an increase from $33,005 million in 2024 and $32,854 million in 2023[18]. - Reported operating profit for 2025 was $8,923 million, up 3% from $8,635 million in 2024, while adjusted operating profit increased 4% to $10,137 million from $9,720 million[130]. - Net income for Linde plc in 2025 was $6,898 million, a 5% increase from $6,565 million in 2024, with diluted earnings per share rising to $14.61 from $13.62[130]. - Cash flow from operations reached $10,350 million, an increase of $927 million compared to 2024, primarily due to higher net income and lower working capital requirements[130]. - Total sales increased by $981 million, or 3%, to $33,986 million in 2025 compared to 2024[181]. - Operating profit rose by $288 million, or 3.3%, to $8,923 million in 2025, driven by higher pricing and productivity initiatives[181]. - Adjusted EBITDA for 2025 was $13,351 million, a 4% increase from $12,819 million in 2024, with an adjusted EBITDA margin of 39.3%[133]. - Reported net income for Linde plc rose by $333 million, or 5%, while adjusted net income increased by $297 million, or 4%[153]. Sales and Market Presence - Approximately 64% of Linde's 2025 sales were generated outside the United States, indicating a strong international presence[30]. - Linde's industrial gas operations generated 90% of sales from the Americas, EMEA, and APAC segments, highlighting the company's strong market presence in these regions[122]. - Sales in the Americas segment increased by $766 million, or 5%, with higher pricing contributing 3% and volumes contributing 1%[183]. - EMEA segment sales grew by $197 million, or 2%, with currency translation increasing sales by 3%[187]. - APAC segment sales remained flat at $6,661 million, with acquisitions contributing 2% and volumes decreasing by 1%[190]. - Engineering segment sales decreased by $72 million, or 3%, primarily due to project timing, despite a 3% increase from currency translation[194]. Operational Efficiency and Costs - Energy costs represent the largest expense in Linde's production and distribution processes, with strategies in place to mitigate price fluctuations[34]. - Cost of sales, excluding depreciation and amortization, was $17,389 million, representing 51.2% of sales, a decrease from 51.9% in 2024 due to higher pricing and productivity gains[133]. - Selling, general and administrative expenses increased by 3% to $3,433 million, maintaining 10.1% of sales, influenced by acquisitions and cost inflation[138]. - The company is actively involved in developing proprietary technologies for gas production and distribution, enhancing operational efficiencies for customers[19]. Research and Development - Linde's research and development efforts are directed towards gas processing, clean energy technologies, and new industrial gas applications[32]. - The company is a leader in low-carbon hydrogen production, utilizing technologies such as steam methane reformation and electrolysis[21]. - Linde's research and development efforts focus on new technologies for industrial gases, which are crucial for maintaining competitive advantage[69]. Workforce and Employment - Linde's workforce consisted of 65,177 employees as of December 31, 2025, with approximately 28% being women[43]. - The number of employees decreased by 112 to 65,177 in 2025, mainly due to ongoing cost reduction programs[155]. Financial Position and Debt - Total net debt outstanding at December 31, 2025, was $21,933 million, an increase of $5,160 million from $16,773 million at the end of 2024[215]. - Linde's global effective borrowing rate was approximately 2.3% for 2025[215]. - The company maintains a $5 billion and a $1.5 billion unsecured and undrawn revolving credit agreement with no associated financial covenants[216]. Risks and Challenges - Linde's international operations are subject to risks including currency exchange rate fluctuations, which could adversely affect financial results[63]. - The company faces legal and compliance risks due to anti-corruption, trade, and economic sanctions laws, which could lead to significant penalties and affect its reputation[80]. - Catastrophic events, such as natural disasters and health epidemics, could disrupt Linde's operations and adversely affect financial results[66]. - Linde is exposed to risks from changes in regulations related to environmental protection and climate change, which may adversely impact its market behavior and operations[79]. - Integration challenges from acquisitions may divert management focus and lead to difficulties in achieving targeted synergies and retaining key employees[81]. - The company has significant pension obligations that may impact future results of operations and required pension contributions[70]. Capital Expenditures and Investments - Capital expenditures totaled $5,261 million, up from $4,497 million in 2024[203]. - Approximately 60% of capital expenditures were allocated to the Americas segment, with 21% in the APAC segment[208]. - Acquisitions in 2025 totaled $412 million, an increase of $95 million from 2024, mainly in the EMEA and APAC segments[209].