Fiscal Fourth Quarter 2025 Earnings Results Teleconference November 6, 2025 Forward-Looking Statements This presentation contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about earnings and capital expenditure guidance, business outlook and investment opportunities. These forward-looking statements are based on management's expectations and assumptions as of the date of this presentation and are not guarantee ...

Core Viewpoint - Air Products forecasts 2026 adjusted profit exceeding Wall Street estimates after surpassing quarterly profit expectations due to strong sales in Europe and Asia [1] Group 1: Financial Performance - The company reported strong quarterly profits driven by robust sales in European and Asian markets [1] - Adjusted profit for 2026 is projected to be above Wall Street estimates, indicating positive growth expectations [1] Group 2: Market Dynamics - The strong sales performance in Europe and Asia highlights the company's effective market strategies and demand for industrial gases in these regions [1]

Core Insights - Linde reported Q3 2025 adjusted EPS of $4.21, reflecting a 7% year-over-year increase, with sales reaching $8.62 billion, up 3% [1][5] - The company maintained industry-leading margins and narrowed its full-year adjusted EPS guidance to $16.35–$16.45, indicating a 5%–6% growth [1][5] Financial Performance - Net income was $1.93 billion (GAAP), with diluted EPS of $4.09, a 27% increase [5] - Adjusted net income was $1.99 billion, with adjusted EPS at $4.21, marking a 7% rise [5] - Sales increased by 3% to $8.62 billion, driven by a 2% contribution from pricing and a 1% contribution from M&A [5] - Adjusted operating profit reached $2.56 billion, up 3%, yielding a 29.7% adjusted margin, which is a 10 basis points increase year-over-year [5] Cash Flow and Returns - Operating cash flow rose to $2.95 billion, while free cash flow was $1.67 billion after $1.28 billion of capital expenditures [5] - Linde returned $1.69 billion to shareholders through dividends and buybacks during the quarter [5] Guidance and Outlook - Q4 adjusted EPS is expected to be between $4.10 and $4.20, reflecting a 3%–6% year-over-year increase [5] - Full-year 2025 adjusted EPS guidance is set at $16.35–$16.45, with a flat foreign exchange impact [5] - Full-year capital expenditures are projected to remain between $5.0 billion and $5.5 billion, supporting growth and a $7.1 billion project backlog [5] Segment Performance - **Americas**: Sales of $3.85 billion, a 6% increase; underlying growth of 4% driven by a 3% price increase and 1% volume growth in electronics and manufacturing [5] - **EMEA**: Sales of $2.18 billion, up 3%; underlying performance down 1% due to a 2% price increase but a 3% decline in volumes [5] - **APAC**: Sales of $1.74 billion, a 1% increase; underlying performance down 1% due to stable volumes and lower helium pricing [5] - **Linde Engineering**: Sales decreased by 15% to $519 million, with an operating profit of $101 million and a margin of 19.5% [5]

Core Insights - The industrial-gas supplier reported a revenue increase of 1.9% on a comparable basis and reaffirmed its outlook for 2025 [1] Group 1 - Revenue rose by 1.9% on a comparable basis [1] - The company backed its outlook for 2025 [1]

Core Insights - Goldman Sachs has added four new stocks to its Conviction List, which are expected to have double-digit upside potential and three of which offer reliable dividends [4][5][6]. Group 1: Goldman Sachs Conviction List - The Conviction List is a curated selection of stocks that Goldman Sachs analysts believe will outperform the market, focusing on themes like artificial intelligence and sustainability [2][4]. - The four new stocks added in October are Abbott Laboratories, Air Products and Chemicals, Hershey, and Madison Square Garden Entertainment [5][6]. Group 2: Stock Details - **Abbott Laboratories**: Offers a 1.74% dividend with a target price of $157, indicating a potential 17% gain [7][8]. - **Air Products and Chemicals**: Provides a 2.63% dividend and has a target price of $335, suggesting a 23% upside [9][15]. - **Hershey**: Features a 2.82% dividend with a target price of $222, representing a potential 19% gain [16][20]. - **Madison Square Garden Entertainment**: A live entertainment company with a target price of $52, indicating a 15% upside [21][23].

Core Viewpoint - Air Products has elected Howard Ungerleider to its Board of Directors, effective September 1, 2025, to enhance its leadership with his extensive experience in the chemicals and specialty materials industries [1][2]. Company Overview - Air Products is a leading industrial gases company with over 80 years of operation, focusing on energy, environmental, and emerging markets to create a cleaner future [4]. - The company supplies essential industrial gases and related equipment to various industries, including refining, chemicals, metals, electronics, manufacturing, medical, and food [4]. - Air Products is the leading global supplier of hydrogen and is involved in developing and operating large clean hydrogen projects to support the transition to low- and zero-carbon energy [4]. Financial Performance - For fiscal 2024, Air Products reported sales of $12.1 billion from operations in approximately 50 countries [5]. - The company currently has a market capitalization of over $60 billion [5]. Leadership Experience - Howard Ungerleider brings over three decades of global business and financial leadership experience, having served in various roles at Dow Inc. and its predecessors, including President and Chief Financial Officer [2][3]. - He has been an Operating Advisor for Clayton, Dubilier & Rice since 2024 and is also a board member of American Airlines Group Inc. and Kyndryl Holdings Inc. [2][3].

Core Insights - Linde reported revenue of $8.5 billion for the quarter ended June 2025, reflecting a year-over-year increase of 2.8% and surpassing the Zacks Consensus Estimate of $8.35 billion by 1.7% [1] - The company's EPS for the quarter was $4.09, an increase from $3.85 in the same quarter last year, also exceeding the consensus EPS estimate of $4.03 by 1.49% [1] Revenue Breakdown - Sales in the Americas reached $3.81 billion, slightly above the estimated $3.8 billion, marking a year-over-year increase of 4.3% [4] - EMEA sales were reported at $2.16 billion, exceeding the average estimate of $2.12 billion, with a year-over-year change of 3.4% [4] - Sales from Other regions totaled $315 million, slightly below the estimated $317.93 million, representing a year-over-year decline of 1.6% [4] - Engineering sales amounted to $551 million, compared to the average estimate of $567.47 million, showing a year-over-year increase of 1.3% [4] - APAC sales were reported at $1.66 billion, slightly above the estimated $1.62 billion, with a year-over-year change of -0.1% [4] Stock Performance - Linde's shares have returned -3.2% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Earnings per share (EPS) reached $4.9, marking an all-time quarterly high, with an operating margin of 30.1%, also a record [6][19] - Operating cash flows increased by 15%, and return on capital employed (ROCE) stood at 25.1%, leading the industry [6][19] - Sales for Q2 were $8.5 billion, a 3% increase year-over-year and a 5% sequential increase [16] Business Line Data and Key Metrics Changes - The sale of gas project backlog grew from $3.6 billion to $7.1 billion over four years, with the number of projects increasing from 33 to 70 [9] - Operating profit for the quarter was $2.6 billion, a 6% increase year-over-year, with a 30.1% operating margin, up 80 basis points [19] - Volumes decreased by 1% year-over-year, primarily due to weaker base volumes in EMEA, despite contributions from the project backlog [18] Market Data and Key Metrics Changes - In The Americas, volumes are expected to be flat or slightly up, driven by resilient end markets, while Western Europe is anticipated to see a decline in demand [26][30] - Asia presents a mixed outlook, with India showing strong growth while China remains flat due to weaker metals and chemicals [32][34] - The overall trend indicates low to mid-single-digit growth in resilient end markets, offset by declines in the industrial sector, particularly in EMEA [34] Company Strategy and Development Direction - The company emphasizes disciplined project backlog management, focusing on high-quality contracts with fixed fees [8] - Investments in clean energy projects are highlighted, with a total of approximately $5 billion in low carbon contracts [10] - The company plans to continue its strategy of base volume growth through annual CapEx exceeding $1 billion [12] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic environment, particularly in Europe, where no immediate catalysts for improvement are seen [30][31] - The company expects to maintain positive pricing despite macroeconomic challenges, with a historical track record of achieving positive pricing through cycles [36] - Future growth is anticipated from the space sector, with significant investments planned to support this market [70][71] Other Important Information - The company issued bonds totaling CHF 5 billion with an average yield of less than 1%, indicating strong access to low-cost capital [21] - The guidance for Q3 EPS is projected to be between $4.1 and $4.2, reflecting a cautious outlook amid economic uncertainty [22][23] Q&A Session Summary Question: Insights on global business conditions - Management provided a geographical overview, indicating flat volumes in The Americas, a decline in Europe, and mixed signals from Asia, with India showing growth potential [26][30][32] Question: Risks of future price increases - Management expressed confidence in maintaining positive pricing, citing historical performance and alignment with global inflation trends, except for challenges in China [36][38] Question: Margin performance in The Americas - Management noted that margin performance can vary by quarter, with expectations for continued improvement in margins across segments [41][44] Question: Customer appetite for new projects - Management remains optimistic about maintaining a backlog above $7 billion, supported by ongoing project starts and a healthy pipeline [48] Question: EBIT growth in Europe - Management attributed EBIT growth to favorable currency effects and pricing opportunities, despite negative volume trends [53][54] Question: Long-term outlook for Europe - Management acknowledged short-term challenges in Europe but highlighted potential long-term improvements driven by infrastructure investments and recovery efforts [61][65] Question: Growth potential in the space sector - Management emphasized significant growth opportunities in the space sector, with substantial investments planned to support this market [70][71] Question: Energy transition investments - Management expects continued demand for low carbon products, with a focus on economically viable projects moving forward [93][95]

Financial Data and Key Metrics Changes - Earnings per share (EPS) reached $4.9, and operating margin was 30.1%, both representing all-time quarterly highs [2][3][18] - Operating cash flows grew by 15%, and return on capital employed (ROCE) was 25.1%, leading the industry [3][18] - Sales for the second quarter were $8.5 billion, a 3% increase year-over-year and a 5% sequential increase [15][18] - Operating profit increased by 6% year-over-year to $2.6 billion [18] Business Line Data and Key Metrics Changes - The sale of gas project backlog doubled from $3.6 billion to $7.1 billion over four years, with the number of projects increasing from 33 to 70 [6][9] - The backlog turnover was over 150% in 4.5 years, with $5.7 billion of new projects started [6][9] - Base volume growth investments totaled over $1 billion annually, supporting packaged and merchant supply modes [10][12] Market Data and Key Metrics Changes - In The Americas, volumes are expected to be flat, with growth in resilient end markets offset by a softer industrial sector [27][30] - Europe is expected to see a decline in demand, particularly in Western Europe, with negative volume trends anticipated in the second half of the year [31][32] - Asia presents a mixed outlook, with India showing growth while China remains flat due to weaker metals and chemicals [33][34] Company Strategy and Development Direction - The company emphasizes disciplined project backlog management, focusing on high-quality contracts with fixed fees [5][6] - Investments in clean energy projects are a priority, with a total of approximately $5 billion in low carbon contracts signed [8][9] - The company aims to leverage its strong position in the space market, with significant investments planned to support growth in this sector [29][75] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic environment, particularly in Europe, where no immediate catalysts for improvement are seen [32][66] - The company expects to maintain positive pricing despite macroeconomic challenges, with a historical track record of achieving positive pricing through cycles [39][40] - Future growth is anticipated from self-help initiatives and industrial recovery, with a goal of returning to double-digit EPS growth [24][25] Other Important Information - The company issued bonds totaling CHF 5 billion with an average yield of less than 1%, ensuring access to low-cost capital [21] - The guidance for the third quarter EPS is projected to be between $4.1 and $4.2, reflecting a cautious outlook amid economic uncertainty [22][23] Q&A Session Summary Question: Insights on global business conditions - Management provided a geographical overview, indicating flat volumes in The Americas, a decline in Europe, and mixed signals from Asia, particularly highlighting growth in India and challenges in China [27][30][34] Question: Future pricing risks - Management expressed confidence in maintaining positive pricing, citing historical performance and current pricing trends across most regions, with some exceptions in China [39][40] Question: Margin performance in The Americas - Management noted that margin performance can vary by quarter due to business mix, but overall margins are expected to improve [44][47] Question: Appetite for new projects - Management remains optimistic about maintaining a backlog above $7 billion, supported by ongoing project opportunities [51] Question: EBIT growth in Europe - Management attributed EBIT growth to favorable currency effects and pricing opportunities, despite negative volume trends [56][58] Question: Helium pricing impact - Management indicated that helium volumes remain flat, with pricing down due to market oversupply, but this exposure is smaller compared to competitors [60][61] Question: Long-term outlook for Europe - Management expressed cautious optimism about potential recovery in Europe driven by infrastructure investments and rebuilding efforts in Ukraine [69][70] Question: Space market growth potential - Management highlighted significant growth in the space sector, with plans for substantial investments to support this market [75][78] Question: Energy transition projects - Management expects continued demand for low carbon products, emphasizing that economic viability will drive future projects [99][100]

August 1, 2025 Linde plc Investor Teleconference Presentation Second Quarter 2025 Forward-Looking Statement This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. They are based on management's reasonable exp ...