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Linde: Q4 Sales Flat, but Margins Widen
LINLinde plc(LIN) The Motley Fool·2025-02-06 16:10

Core Insights - Linde reported strong earnings per share (EPS) of 3.97,exceedinganalystexpectations,butrevenuefellshortat3.97, exceeding analyst expectations, but revenue fell short at 8.28 billion compared to the forecast of 8.42billionduetocurrencyfluctuations[1][2]FinancialPerformance−Q42024EPSwas8.42 billion due to currency fluctuations [1][2] Financial Performance - Q4 2024 EPS was 3.97, up 11.2% from 3.57inQ42023[2]−RevenueforQ42024was3.57 in Q4 2023 [2] - Revenue for Q4 2024 was 8.28 billion, a slight increase of 0.2% from 8.30billioninQ42023[2]−Adjustedoperatingprofitreached8.30 billion in Q4 2023 [2] - Adjusted operating profit reached 2.48 billion, reflecting a 9.3% increase from 2.27billioninQ42023[2]−Freecashflowwas2.27 billion in Q4 2023 [2] - Free cash flow was 1.56 billion, down 1.1% from 1.58billioninQ42023[2]BusinessOverview−Lindeistheworld′slargestindustrialgascompany,providingawiderangeofgasesessentialforvariousindustries,includinghealthcare,chemicals,manufacturing,andelectronics[3]−Thecompanyisaleaderininnovativegastechnologies,enhancingservicedelivery[3]StrategicFocus−Lindeisconcentratingonthecleanenergysectorandlong−termcustomeragreements,withadvancementsinhydrogensolutionsandgasprocessingtechniques[4]−Thecompany’sadjustedoperatingprofitmarginincreasedby2.5percentagepointsto29.91.58 billion in Q4 2023 [2] Business Overview - Linde is the world's largest industrial gas company, providing a wide range of gases essential for various industries, including healthcare, chemicals, manufacturing, and electronics [3] - The company is a leader in innovative gas technologies, enhancing service delivery [3] Strategic Focus - Linde is concentrating on the clean energy sector and long-term customer agreements, with advancements in hydrogen solutions and gas processing techniques [4] - The company’s adjusted operating profit margin increased by 2.5 percentage points to 29.9%, indicating effective cost management [5] Regional Performance - Sales in the Americas grew by 1%, driven by manufacturing, food, and electronics sectors [6] - The Asia-Pacific region saw a 2% sales increase, primarily due to growth in the electronics sector [6] - Conversely, sales in the Europe/Middle East/Africa region declined by 2% due to reduced manufacturing volumes, impacted by foreign currency fluctuations [6] Strategic Developments - Linde signed a significant 2 billion contract with Dow, showcasing its commitment to clean energy and strategic partnerships [7] - The company has a project backlog exceeding 10billion,indicatingstrongfutureearningsgrowthpotential[7]−Lindereturned10 billion, indicating strong future earnings growth potential [7] - Linde returned 1.99 billion to shareholders through dividends and stock repurchases during the quarter [7] Future Outlook - Linde projects its 2025 adjusted diluted EPS to be between 16.15and16.15 and 16.55, reflecting anticipated growth of 8% to 11% when excluding foreign currency impacts [8] - The guidance indicates Linde's confidence in navigating macroeconomic challenges while focusing on technological advancements and energy solutions [8] Investment Considerations - Investors should pay attention to Linde's initiatives in clean energy projects and its ability to secure long-term contracts, positioning the company for consistent growth [9]