In This Article:
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Revenue: $8.1 billion, flat compared to the prior year and down 2% sequentially.
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Operating Margin: Expanded by 120 basis points to 30.1%.
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Return on Capital (ROC): Maintained at 25.7%.
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Earnings Per Share (EPS): $3.95, a 5% increase over the prior year, or 8% excluding currency effects.
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Capital Expenditure (CapEx): $1.3 billion, split equally between base CapEx and project backlog.
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Operating Cash Flow: $2.2 billion, an 11% increase from the previous year.
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Dividend Growth: Annual dividend increased by 8%, marking 32 consecutive years of growth.
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Stock Repurchase: $1.1 billion worth of stock repurchased during the quarter.
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Project Backlog: $10 billion, with more than $7 billion in sale of gas projects.
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Second Quarter EPS Guidance: $3.95 to $4.05, representing 3% to 5% growth.
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Full Year EPS Guidance: $16.20 to $16.50, maintaining the original guidance midpoint.
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Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Linde PLC (NASDAQ:LIN) achieved an 8% growth in APS XFX and expanded operating margins by 120 basis points to 30.1%.
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The company maintained an industry-leading return on capital (ROC) at 25.7%.
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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.
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The company raised its annual dividend by 8%, marking 32 consecutive years of dividend growth.
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Linde PLC (NASDAQ:LIN) continues to see attractive acquisition opportunities, contributing 1% to sales growth through packaged gas tuck-ins in North America.
Negative Points
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Linde PLC (NASDAQ:LIN) experienced a 1% decline in volumes, primarily driven by seasonal factors and weaker trends in certain packaged gas markets.
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The company faces challenges from lower helium and rare gas prices, particularly impacting the APAC region.
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Industrial activity remains sluggish in most geographies, dragging down base volumes.
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The American segment is experiencing mixed results, with weakness in Canada and US package gases due to manufacturing uncertainty.
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Linde PLC (NASDAQ:LIN) anticipates more volatility in end market trends due to rapid changes in global trade policy.
Q & A Highlights
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