Linde — Third-Quarter 2026 Earnings Summary

Financial Performance:

• Sales reached $9.4 billion, a 9% year-over-year increase, with underlying sales up 5% (driven by 3% price attainment and 2% volume growth).
• Net income was $1,692 million, down 12% year-over-year; diluted EPS was $3.66, down 11%.
• Adjusted net income was $2,122 million, up 7% year-over-year; adjusted diluted EPS was $4.59, up 9%.
• Operating profit was $2,150 million (22.9% margin); adjusted operating profit was $2,763 million (29.4% margin), up 8% year-over-year.
• Operating cash flow was $3.2 billion, up 8% year-over-year.
• Free cash flow was $1,777 million after capital expenditures of $1,392 million.
• The company returned $1,685 million to shareholders via dividends and stock repurchases, net of issuances.

Guidance and Future Outlook:

• Full-year 2026 adjusted EPS guidance is $17.82 to $17.92, representing 8% to 9% growth.
• Q4 2026 adjusted diluted EPS is expected to be $4.40 to $4.50, up 5% to 7% year-over-year, with no expected foreign currency impact.
• Full-year 2026 capital expenditures are projected between $5.5 billion and $6.0 billion to support growth and maintenance, including a $7.9 billion contractual sale of gas project backlog.
• Management expects continued backlog growth driven by robust customer proposal activity, particularly in electronics.

Business Segments and Product Lines:

• Americas sales were $3,601 million (up 11% YoY); underlying sales up 9% driven by 6% pricing and 3% volume growth in electronics, chemicals & energy, and metals & mining. Operating profit margin was 35.1%.
• APAC sales were $1,950 million (up 12% YoY); underlying sales up 8% driven by 3% pricing and 5% volume growth in electronics and chemicals & energy. Operating profit margin was 27.4%.
• EMEA sales were $2,327 million (up 7% YoY); underlying sales up 3% driven by 2% pricing and 1% volume growth in healthcare and food & beverage. Operating profit margin was 35.1%.
• Linde Engineering sales were $582 million (up 12% YoY) with an operating profit margin of 18.4%.
• Linde Engineering order intake was $499 million, and third-party sale of equipment backlog was $2.9 billion.
• Total project backlog stands at $11 billion.

Management Commentary and Tone:

• CEO Sanjiv Lamba described financial performance as "continued to improve," citing record sales and adjusted EPS alongside strong operating cash flow.
• Management emphasized actions taken to improve productivity and strengthen performance while maintaining a goal of delivering industry-leading results.
• The tone remains confident regarding operational excellence, disciplined capital deployment, and securing high-quality projects to compound shareholder value.

Other Key Points:

• The company serves end markets including chemicals & energy, food & beverage, electronics, healthcare, manufacturing, and metals & mining.
• Applications for Linde's gases and technologies include space exploration, semiconductor manufacturing, medical oxygen, clean hydrogen production, and carbon capture.
• A teleconference regarding these results was held on October 29, 2026, at 9:00 am EDT.
• Adjusted financial measures exclude Linde AG purchase accounting impacts, cost reduction program charges, and other non-recurring items.