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Yahoo
02-05-2025
- Business
- Yahoo
Linde PLC (LIN) Q1 2025 Earnings Call Highlights: Strong Margins and Dividend Growth Amidst ...
Revenue: $8.1 billion, flat compared to the prior year and down 2% sequentially. Operating Margin: Expanded by 120 basis points to 30.1%. Return on Capital (ROC): Maintained at 25.7%. Earnings Per Share (EPS): $3.95, a 5% increase over the prior year, or 8% excluding currency effects. Capital Expenditure (CapEx): $1.3 billion, split equally between base CapEx and project backlog. Operating Cash Flow: $2.2 billion, an 11% increase from the previous year. Dividend Growth: Annual dividend increased by 8%, marking 32 consecutive years of growth. Stock Repurchase: $1.1 billion worth of stock repurchased during the quarter. Project Backlog: $10 billion, with more than $7 billion in sale of gas projects. Second Quarter EPS Guidance: $3.95 to $4.05, representing 3% to 5% growth. Full Year EPS Guidance: $16.20 to $16.50, maintaining the original guidance midpoint. Warning! GuruFocus has detected 11 Warning Signs with VTR. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Release Date: May 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Linde PLC (NASDAQ:LIN) achieved an 8% growth in APS XFX and expanded operating margins by 120 basis points to 30.1%. The company maintained an industry-leading return on capital (ROC) at 25.7%. Linde PLC (NASDAQ:LIN) has a strong backlog of $10 billion, with over $7 billion in sale of gas projects underpinned by long-term contracts. The company raised its annual dividend by 8%, marking 32 consecutive years of dividend growth. Linde PLC (NASDAQ:LIN) continues to see attractive acquisition opportunities, contributing 1% to sales growth through packaged gas tuck-ins in North America. Linde PLC (NASDAQ:LIN) experienced a 1% decline in volumes, primarily driven by seasonal factors and weaker trends in certain packaged gas markets. The company faces challenges from lower helium and rare gas prices, particularly impacting the APAC region. Industrial activity remains sluggish in most geographies, dragging down base volumes. The American segment is experiencing mixed results, with weakness in Canada and US package gases due to manufacturing uncertainty. Linde PLC (NASDAQ:LIN) anticipates more volatility in end market trends due to rapid changes in global trade policy. Q: Dow recently announced the delay of its Alberta project, where Linde is a partner. Can you speak to the impact on your project timing and startup, or what contingencies Linde has to protect itself? A: As expected, most on-site contracts have built-in contractual protection for customer-driven delays. There is a grace period beyond which invoicing starts, and the customer begins paying. We will work with Dow to explore alternatives while maintaining Linde's interests. - Sanjiv Lamba, CEO Q: Can you help us understand the margin profile once volumes start to return, given the robust EBITDA margin performance despite lower volumes? A: The margins result from hard work on pricing and productivity. As volumes improve, margins will continue to grow, which has been proven over time. - Sanjiv Lamba, CEO Q: How do you view the $50 billion opportunity around clean energy today, given changes in the world? A: The opportunity set around clean energy projects still looks attractive. We are about halfway through our $8 billion to $10 billion target over the next few years, with ongoing projects and potential expansions. We remain confident in reaching this target. - Sanjiv Lamba, CEO Q: On your guidance, you lowered it by roughly $0.30 due to FX. Was this mainly due to weaker manufacturing in the Americas? A: The FX change was due to a weakening dollar, with the euro and sterling helping the most. Manufacturing in Q1 was softer due to weather events, but ended strong in March. We expect volumes in America to remain flattish for the year. - Matthew White, CFO Q: Can you discuss the areas where you see the biggest commitments in your project backlog, either geographically or in terms of markets? A: We expect resilient end markets like electronics and food and beverage to grow. Geographically, Asia, particularly India, shows growth potential. We anticipate starting up $1 billion from the backlog this year and expect the backlog to remain strong. - Sanjiv Lamba, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Reuters
01-05-2025
- Business
- Reuters
Linde forecasts second-quarter profit below estimate on weakness in European market
May 1 (Reuters) - Linde ( opens new tab, the world's largest industrial gases company, forecast second-quarter adjusted earnings below analysts' expectations on Thursday, citing macroeconomic headwinds and weak demand in the European markets. Chemical companies in Europe have been grappling with slowing demand and rising raw material costs. A rigorous regulatory landscape is also compelling businesses to reassess their approach within the region. The German economy, the largest in Europe and which accounted for 7.6% of Linde's 2024 total sales, has been affected by intensifying competition from abroad, weak demand and an industrial slowdown. CEO Sanjiv Lamba in February had flagged continued softening in Europe, primarily Western Europe, with lower volumes in metals, manufacturing chemicals and energy. Linde is seen as a bellwether for industrial production as it supplies gases for a range of customers in sectors, including chemicals, manufacturing, steel-making, and food and beverages. The company saw the EMEA (Europe, Middle East and Africa) region segment post first-quarter sales of $2.03 billion, slightly down from $2.09 billion a year ago. Sales at its APAC (Asia Pacific) region segment fell to $1.54 billion from $1.59 billion a year earlier. According to Linde's annual report, nearly 65% of its 2024 sales took place outside of the United States. The company, which supplies gases such as oxygen, nitrogen and hydrogen to factories and hospitals, expects second-quarter adjusted earnings to be between $3.95 and $4.05 per share. Analysts on average were expecting $4.09 per share, according to data compiled by LSEG. The company forecast its annual adjusted profit to between $16.20 and $16.50 per share, compared with its previous projection of $16.15 to $16.55 per share. The U.S.-German company's first-quarter adjusted profit stood at $3.95 per share, higher than the estimate of $3.92.
Associated Press
01-05-2025
- Business
- Associated Press
Linde Reports First-Quarter 2025 Results
WOKING, England--(BUSINESS WIRE)--May 1, 2025-- Linde plc (Nasdaq: LIN) today reported first-quarter 2025 net income of $1,673 million and diluted earnings per share of $3.51, up 3% and 5% respectively. Excluding Linde AG purchase accounting impacts and other charges, adjusted net income was $1,880 million, up 3% versus prior year. Adjusted earnings per share was $3.95, 5% above prior year. This press release features multimedia. View the full release here: Linde's sales for the first quarter were $8,112 million, flat versus prior year. Compared to prior year, underlying sales increased 1% from 2% price attainment partially offset by 1% lower volumes largely driven by the manufacturing and metals & mining end markets. First-quarter operating profit was $2,184 million. Adjusted operating profit of $2,438 million was up 4% versus prior year led by higher price and continued productivity initiatives across all segments. Adjusted operating profit margin of 30.1% was 120 basis points above prior year. First-quarter operating cash flow of $2,161 million increased 11% versus prior year. After capital expenditures of $1,270 million, free cash flow was $891 million. During the quarter, the company returned $1,808 million to shareholders through dividends and stock repurchases, net of issuances. Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, 'While first quarter macroeconomic headwinds largely played out as anticipated, Linde employees delivered another resilient performance by expanding operating margins 120 basis points to 30.1%, growing EPS (excluding FX) by 8%, and maintaining industry leading return on capital of 25.7%. These results were achieved through disciplined capital allocation and proactive management actions.' Lamba continued, 'Looking forward, while we remain cautious on the economic outlook, I'm confident the Linde business model can continue to create shareholder value in any environment.' For the second quarter of 2025, Linde expects adjusted diluted earnings per share in the range of $3.95 to $4.05, up 3% to 5% versus prior-year quarter or 5% to 7% when excluding 2% of estimated currency headwind. For the full year 2025, the company expects adjusted diluted earnings per share to be in the range of $16.20 to $16.50, up 4% to 6% versus prior year or 6% to 8% when excluding 2% of estimated currency headwind. Full-year capital expenditures are expected to be in the range of $5.0 billion to $5.5 billion to support growth and maintenance requirements including the $7.0 billion contractual sale of gas project backlog. First-Quarter 2025 Results by Segment Americas sales of $3,666 million were 3% higher versus prior-year quarter. Compared with first quarter 2024, underlying sales increased 4% driven by 3% higher pricing and 1% higher volumes, primarily in the electronics, chemicals & energy end markets. Operating profit of $1,137 million was 31.0% of sales, 40 basis points above prior year. APAC (Asia Pacific) sales of $1,539 million were down 3% versus prior year. Compared with first quarter 2024, underlying sales were lower by 1% driven by stable pricing offset by 1% lower volumes, primarily in the metals & mining and manufacturing end markets. Operating profit of $451 million was 29.3% of sales, 120 basis points above prior year. EMEA (Europe, Middle East & Africa) sales of $2,031 million were down 3% versus prior year. Compared with first quarter 2024, underlying sales were 1% lower, driven by 2% higher pricing more than offset by 3% lower volumes, primarily in the metals & mining and chemicals & energy end markets. Operating profit of $722 million was 35.5% of sales, 260 basis points above prior year. Linde Engineering sales were $565 million, 5% higher versus prior year, and operating profit was $114 million or 20.2% of sales. Order intake for the quarter was $516 million and third-party sale of equipment backlog was $3.3 billion. Earnings Call A teleconference on Linde's first-quarter 2025 results is being held today at 9:00 am EDT. Materials to be used in the teleconference are also available on the website. About Linde Linde is a leading global industrial gases and engineering company with 2024 sales of $33 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet. The company serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases and technologies are used in countless applications including production of clean hydrogen and carbon capture systems critical to the energy transition, life-saving medical oxygen and high-purity & specialty gases for electronics. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions. For more information about the company and its products and services, please visit Adjusted amounts, free cash flow and return on capital are non-GAAP measures. See the attachments for a summary of non-GAAP reconciliations and calculations for adjusted amounts. Attachments: Summary Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information and Appendix: Non-GAAP Measures and Reconciliations. *Note: We are providing adjusted earnings per share ('EPS') guidance for 2025. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort. Forward-looking Statements 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 expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances, including trade conflicts and tariffs; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics, pandemics such as COVID-19 and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of changes in pension plan liabilities; the impact of tax, environmental, healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of investigations, litigation and regulatory proceedings; the impact of potential unusual or non-recurring items; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; the impact of information technology system failures, network disruptions and breaches in data security; and the effectiveness and speed of integrating new acquisitions into the business. These risks and uncertainties may cause future results or circumstances to differ materially from adjusted projections, estimates or other forward-looking statements. Linde plc assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A. Risk Factors in Linde plc's Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on February 26, 2025 which should be reviewed carefully. Please consider Linde plc's forward-looking statements in light of those risks. View source version on CONTACT: Investor Relations Juan Pelaez [email protected] +1-203-837-2213Media Relations Anna Davies [email protected] +44-1483-244-705 KEYWORD: EUROPE UNITED STATES UNITED KINGDOM NORTH AMERICA INDUSTRY KEYWORD: OIL/GAS MANUFACTURING ENERGY OTHER ENERGY ENGINEERING SOURCE: Linde plc Copyright Business Wire 2025. PUB: 05/01/2025 07:40 AM/DISC: 05/01/2025 07:40 AM
Business Wire
23-04-2025
- Business
- Business Wire
Linde Named One of Ethisphere's 2025 World's Most Ethical Companies®
WOKING, England--(BUSINESS WIRE)--Linde (Nasdaq: LIN) today announced it has been included in the 2025 World's Most Ethical Companies® list for the fifth consecutive year. Ethisphere's annual list identifies organizations that prioritize integrity and ethical business practices. Each company is subject to a thorough assessment across five core categories: ethics & compliance, culture, corporate citizenship & responsibility, governance and third-party management. Only companies that achieve the highest scores are included in the final list. In 2025, Ethisphere recognized 136 companies across 19 countries and 44 industries. 'Ethical business practices help create sustainable value for all Linde's stakeholders,' said Sanjiv Lamba, Chief Executive Officer, Linde. 'Integrity is at the core of who we are, and Linde's employees strive relentlessly alongside our customers, suppliers and partners in more than 80 countries to embed this commitment in every aspect of our operations.' Linde's commitment to legal and ethical business practices is underpinned by a comprehensive and robust compliance program. Its Code of Business Integrity is designed to ensure that Linde adheres to the highest standards when conducting business, and that it complies with all applicable laws and regulations wherever it operates. Linde has been recognized through successive years of inclusion in the World's Most Ethical Companies and the Dow Jones Best-In-Class World Index (formerly the Dow Jones Sustainable World Index). About Linde Linde is a leading global industrial gases and engineering company with 2024 sales of $33 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet. The company serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases and technologies are used in countless applications including production of clean hydrogen and carbon capture systems critical to the energy transition, life-saving medical oxygen and high-purity & specialty gases for electronics. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions. For more information about the company and its products and services, please visit
Yahoo
07-02-2025
- Business
- Yahoo
Linde sees slower 1st quarter earnings on unfavourable currency effect
(Reuters) -Linde, the world's largest industrial gases company, sees slightly slower earnings growth in the first quarter of 2025, citing unfavourable currency exchange effects. The U.S.-German company, which supplies gases such as oxygen, nitrogen and hydrogen to factories and hospitals, expects the first quarter adjusted earnings per share to be in a range of $3.85 to $3.95, a 3% to 5% rise from the same period last year. "As anticipated, global macro conditions have continued to weaken, especially foreign currency translation," CEO Sanjiv Lamba said in a statement. Linde is seen as a bellwether for industrial production as it supplies gases for a range of customers in sectors including chemicals, manufacturing, steel-making, and food and beverages. This diversified footprint can help the company cope with weakness in some end markets, as others can compensate for it. Linde has regularly beaten earnings estimates or raised its guidance in recent years. The Woking Surrey-based company reported an 11% rise in its fourth quarter adjusted earnings per share to $3.97, ahead of analysts' mean estimate of $3.93 per share in an LSEG poll. Sign in to access your portfolio
