|
|
|
|
|
|
|
|
|
|
|
| Effect of exchange rate changes on cash and cash equivalents | | | | () | |
| Change in cash and cash equivalents | () | | | () | |
| Cash and cash equivalents, beginning-of-period | | | | | |
|
|
| Cash and cash equivalents, end-of-period | $ | | | | $ | | |
|
|
|
The accompanying notes are an integral part of these financial statements.
INDEX TO NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Notes to Condensed Consolidated Financial Statements - Linde plc and Subsidiaries (Unaudited)
1.
2.
million and $ million at June 30, 2025 and December 31, 2024, respectively, and gross receivables aged greater than one year were $ million and $ million at June 30, 2025 and December 31, 2024, respectively. Gross other receivables were $ million and $ million at June 30, 2025 and December 31, 2024, respectively. Receivables aged greater than one year are generally fully reserved unless specific circumstances warrant exceptions, such as those backed by federal governments.Accounts receivable net of reserves were $ million at June 30, 2025 and $ million at December 31, 2024. Allowances for expected credit losses were $ million at June 30, 2025 and $ million at December 31, 2024. Provisions for expected credit losses were $ million and $ million for the six months ended June 30, 2025 and 2024, respectively. The allowance activity in the six months ended June 30, 2025 and 2024 related to write-offs of uncollectible amounts, net of recoveries and currency movements is not material.
Inventories
| | $ | | |
| Work in process | | | | | |
| Finished goods | | | | | |
| Total inventories | $ | | | | $ | | |
3.
| | $ | | | | Other bank borrowings (primarily non U.S.) | | | | | |
| Total short-term debt | | | | | |
| LONG-TERM (a) | | | |
| (U.S. dollar denominated unless otherwise noted) | | | |
% Notes due 2025 (d) | | | | | |
% Notes due 2025 (d) | | | | | |
% Euro denominated notes due 2025 (f) | | | | | |
% Euro denominated notes due 2025 | | | | | |
% Euro denominated notes due 2026 | | | | | |
% Notes due 2026 | | | | | |
% Notes due 2026 | | | | | |
% Euro denominated notes due 2027 | | | | | |
% Euro denominated notes due 2027 | | | | | |
% Euro denominated notes due 2027 | | | | | |
% Euro denominated notes due 2028 (b) | | | | | |
% Euro denominated notes due 2028 | | | | | |
% Euro denominated notes due 2029 | | | | | |
% Euro denominated notes due 2029 (c) | | | | | |
% Swiss franc denominated notes due 2029 (e) | | | | | |
% Notes due 2030 | | | | | |
% Euro denominated notes due 2030 | | | | | |
% Euro denominated notes due 2030 | | | | | |
% Euro denominated notes due 2031 | | | | | |
% Euro denominated notes due 2031 | | | | | |
% Euro denominated notes due 2032 | | | | | |
% Euro denominated notes due 2033 | | | | | |
% Euro denominated notes due 2033 (c) | | | | | |
% Swiss franc denominated notes due 2033 (e) | | | | | |
% Euro denominated notes due 2034 | | | | | |
% Euro denominated notes due 2034 | | | | | |
% Euro denominated notes due 2035 | | | | | |
% Euro denominated notes due 2036 | | | | | |
% Euro denominated notes due 2037 (c) | | | | | |
% Notes due 2042 | | | | | |
% Euro denominated notes due 2044 | | | | | |
% Notes due 2050 | | | | | |
% Euro denominated notes due 2051 | | | | | |
| Non U.S. borrowings | | | | | |
| Other | | | | | |
| | | | | |
| Less: current portion of long-term debt | () | | | () | |
| Total long-term debt | | | | | |
| Total debt | $ | | | | $ | | |
(a)Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable.
(b)June 30, 2025 and December 31, 2024 included a cumulative $ million and $ million adjustment to carrying value, respectively, related to hedge accounting of interest rate swaps. Refer to Note 4.
(c)In February 2025, Linde issued € million of % notes due in 2029, € million of % notes due in 2033, € million of % notes due in 2037.
(d)In February 2025, Linde redeemed $ million of % notes that were due in 2025 and repaid $ million of % notes that became due.
(e)In June 2025, Linde issued CHF million of % notes due in 2029 and CHF million of % notes due in 2033.
(f)In June 2025, Linde repaid € million of % notes that became due.
The company maintains a $ billion and a $ billion unsecured revolving credit agreement with a syndicate of banking institutions that expire on December 7, 2027 and December 3, 2025, respectively. There are no financial maintenance covenants contained within the credit agreements. borrowings were outstanding under the credit agreements as of June 30, 2025.
% and % as of June 30, 2025 and December 31, 2024, respectively.
4.
types of derivatives that the company enters into: (i) those relating to fair-value exposures, (ii) those relating to cash-flow exposures, and (iii) those relating to foreign currency net investment exposures. Fair-value exposures relate to recognized assets or liabilities, and firm commitments; cash-flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities, or forecasted transactions; and net investment exposures relate to the impact of foreign currency exchange rate changes on the carrying value of net assets denominated in foreign currencies.When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair-value hedge, cash-flow hedge, or a net investment hedge. Currently, Linde designates all interest-rate and treasury-rate locks as hedges for accounting purposes when used; however, currency contracts are generally not designated as hedges for accounting purposes. Currency contracts related to certain forecasted transactions and net investments in foreign-denominated subsidiaries are designated as hedges for accounting purposes. Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure. On an ongoing basis, the company assesses the hedge effectiveness of all derivatives designated as hedges for accounting purposes to determine if they continue to be highly effective in offsetting changes in fair values or cash flows of the underlying hedged items. If it is determined that the hedge is not highly effective through the use of a qualitative assessment, then hedge accounting will be discontinued prospectively.
Counterparties to Linde's derivatives are major banking institutions with credit ratings of investment grade or better. The company has Credit Support Annexes ("CSAs") in place for certain entities with their principal counterparties to minimize potential default risk and to mitigate counterparty risk. Under the CSAs, the fair values of derivatives for the purpose of interest rate and currency management are collateralized with cash on a regular basis. As of June 30, 2025, the impact of such collateral posting arrangements on the fair value of derivatives was insignificant. Management believes the risk of incurring losses on derivative contracts related to credit risk is remote and any losses would be immaterial.
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | Forecasted transactions | | | | | | | | | | | | | | | | | |
| Total | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Derivatives Designated as Hedging Instruments: | | | | | | | | | | | |
| | | | | | | |
| | | | | | | |
| Currency contracts: | | | | | | | | | | | |
| | | | | | | |
| Forecasted transactions | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Forward exchange transactions | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | |
| Commodity contracts | N/A | | N/A | | | | | | | | | | | | |
| | | | | | | |
| Total Hedges | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Total Derivatives | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
(a)Amounts as of June 30, 2025 and December 31, 2024, respectively, included current assets of $ million and $ million which are recorded in prepaid and other current assets; long-term assets of $ million and $ million which are recorded in other long-term assets; current liabilities of $ million and $ million which are recorded in other current liabilities; and long-term liabilities of $ million and $ million which are recorded in other long-term liabilities.
In addition, during 2024, Linde issued credit default swaps (“CDS”) to third-party financial institutions. The CDS relate to secured borrowings provided by the financial institutions to a government customer in Mexico, that were utilized to pay certain of Linde’s outstanding receivables. The notional amount of the CDS, which was $ million and $ million for the two programs as of June 30, 2025, will reduce on a monthly basis over their respective -month and -month terms. As of June 30, 2025, the fair value of the derivative liabilities was not material.
Balance Sheet Items
Foreign currency contracts related to balance sheet items consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on recorded balance sheet assets and liabilities denominated in currencies other than the functional currency of the related operating unit. Certain forward currency contracts are entered into to protect underlying monetary assets and liabilities denominated in foreign currencies from foreign exchange risk and are not designated as hedging instruments. For balance sheet items that are not designated as hedging instruments, the fair value adjustments on these contracts are offset by the fair value adjustments recorded on the underlying monetary assets and liabilities.
Forecasted Transactions
Foreign currency contracts related to forecasted transactions consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on (1) forecasted purchases of capital-related equipment and services, (2) forecasted sales, or (3) other forecasted cash flows denominated in currencies other than the functional currency of the related operating units. For forecasted transactions that are designated as cash flow hedges, fair value adjustments are recorded to accumulated other comprehensive income (loss) with deferred amounts reclassified to earnings over the same time period as the income statement impact of the associated purchase. For forecasted transactions that do not qualify for cash flow hedging relationships, fair value adjustments are recorded directly to earnings. Linde is hedging forecasted transactions for a maximum period of .
Commodity Contracts
Commodity contracts are entered into to manage the exposure to fluctuations in commodity prices, which arise in the normal course of business from its procurement transactions. To reduce the extent of this risk, Linde enters into a limited number of electricity, natural gas, and propane gas derivatives. For forecasted transactions that are designated as cash flow hedges, fair value adjustments are recorded to accumulated other comprehensive income (loss) with deferred amounts reclassified to
.Net Investment Hedges
Foreign Currency-Denominated Debt Designations
As of June 30, 2025, Linde has € billion ($ billion) Euro-denominated notes and intercompany loans, ¥ billion ($ billion) CNY-denominated intercompany loans, C$ billion ($ billion) CAD-denominated intercompany loans and CHF million ($ million) CHF-denominated notes that are designated as hedges of the net investment positions in certain foreign operations. Since hedge inception, the deferred loss recorded within the cumulative translation adjustment component of accumulated other comprehensive income (loss) in the consolidated balance sheet is $ million (deferred loss of $ million and $ million in the consolidated statement of comprehensive income for the quarter and six months ended June 30, 2025, respectively), which is largely offset by an offsetting loss or gain on the underlying foreign net investment being hedged.
Foreign Currency Forward Exchange Contract Designations
The Company enters into forward exchange contracts to partially hedge its net investment in certain foreign-denominated subsidiaries. The Company assesses the forward exchange contracts used as net investment hedges under the spot method. This results in the difference between the spot rate and the forward rate of the forward exchange contract being excluded from the assessment of hedge effectiveness and recorded as incurred as a reduction in interest expense - net in the consolidated statement of income. Since hedge inception, the deferred loss recorded within the cumulative translation adjustment component of accumulated other comprehensive income (loss) in the consolidated balance sheet is $ million (deferred loss of $ million and $ million in the consolidated statement of comprehensive income for the quarter and six months ended June 30, 2025, respectively), which is largely offset by an offsetting loss or gain on the underlying foreign net investment being hedged. The amount of net interest income recorded in the quarter and six months ended June 30, 2025 for all forward exchange contracts was $ million.
Effects of Previous Hedge Designations
As of June 30, 2025, exchange rate movements relating to previously designated hedges that remain in accumulated other comprehensive income (loss) is a loss of $ million. These movements will remain in accumulated other comprehensive income (loss), until appropriate, such as upon sale or liquidation of the related foreign operations at which time amounts will be reclassified to the consolidated statement of income.
Interest Rate Swaps
Linde has historically used interest rate swaps to hedge the exposure to changes in the fair value of financial assets and financial liabilities as a result of interest rate changes. When used, these interest rate swaps would effectively convert fixed-rate interest exposures to variable rates; fair value adjustments were recognized in earnings along with an equally offsetting charge/benefit to earnings for the changes in the fair value of the underlying financial asset or financial liability (See Note 3).
Derivatives' Impact on Consolidated Statement of Income
) | | $ | () | | | $ | () | | | $ | () | | | Other balance sheet items | | | | | | | | | | () | |
| | | |
| | | |
| Total | $ | () | | | $ | | | | $ | () | | | $ | () | |
* The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statement of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are generally recorded in the consolidated statement of income as other income (expenses)-net.
5.
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | Investments and securities* | | | | | | | | | | | | | | | | | |
| Total | $ | | | | $ | | | | $ | | | | $ | | | | | | | $ | | |
| | | | | | | | | | | |
| Liabilities | | | | | | | | | | | |
| Derivative liabilities | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
* Investments and securities are recorded in prepaid and other current assets and other long-term assets in the company's condensed consolidated balance sheet.
Level 1 investments and securities are marketable securities traded on an exchange. Level 2 investments are based on market prices obtained from independent brokers or determined using quantitative models that use as their basis readily observable market parameters that are actively quoted and can be validated through external sources, including third-party pricing services, brokers and market transactions. Level 3 investments and securities consist of a venture fund. For the valuation, Linde uses the net asset value received as part of the fund's quarterly reporting, which for the most part is not based on quoted prices in active markets. In order to reflect current market conditions, Linde proportionally adjusts by observable market data (stock exchange prices) or current transaction prices.
Changes in level 3 investments and securities were immaterial.
The fair value of cash and cash equivalents, short-term debt, accounts receivable-net, and accounts payable approximate carrying value because of the short-term maturities of these instruments.
The fair value of long-term debt is estimated based on the quoted market prices for the same or similar issues. Long-term debt is categorized within Level 2 of the fair value hierarchy. At June 30, 2025, the estimated fair value of Linde’s long-term debt portfolio was $ million versus a carrying value of $ million. At December 31, 2024, the estimated fair value of Linde’s long-term debt portfolio was $ million versus a carrying value of $ million. Differences between the carrying value and the fair value are attributable to fluctuations in interest rates subsequent to when the debt was issued and relative to stated coupon rates.
6.
| | $ | | | | $ | | | | $ | | | | Denominator (Thousands of shares) | | | | | | | |
| Weighted average shares outstanding | | | | | | | | | | | |
| Shares earned and issuable under compensation plans | | | | | | | | | | | |
| Weighted average shares used in basic earnings per share | | | | | | | | | | | |
| Effect of dilutive securities | | | | | | | |
| Stock options and awards | | | | | | | | | | | |
| Weighted average shares used in diluted earnings per share | | | | | | | | | | | |
| | | |
| | | |
| Basic Earnings Per Share | $ | | | | $ | | | | $ | | | | $ | | |
| | | |
| | | |
| Diluted Earnings Per Share | $ | | | | $ | | | | $ | | | | $ | | |
The weighted-average of antidilutive securities excluded from the calculation of diluted earnings per share was thousand and thousand for the quarter and six months ended June 30, 2025, respectively, and thousand and thousand for the respective 2024 periods.
7.
| | $ | | | | $ | | | | $ | | | | Amount recognized in Net pension and OPEB cost (benefit), excluding service cost | | | | | | | |
| Interest cost | | | | | | | | | | | |
| Expected return on plan assets | () | | | () | | | () | | | () | |
| Net amortization and deferral (gain) loss | () | | | () | | | () | | | () | |
| | | |
| | | |
| | | |
| () | | | () | | | () | | | () | |
| Net periodic benefit cost (benefit) | $ | () | | | $ | () | | | $ | () | | | $ | () | |
Components of net periodic benefit expense for other post-retirement plans for the quarter and six months ended June 30, 2025 and 2024 were not material.
million to $ million million have been made through June 30, 2025.
8.
per share. Any such increase would apply to all Linde AG shares that were outstanding on April 8, 2019, when the cash merger squeeze-out was completed. The period for plaintiffs to file claims expired on July 9, 2019. In November 2023, the court issued a decision rejecting the plaintiffs’ claims in their entirety and determining that the cash merger squeeze-out consideration was appropriate. The plaintiffs have appealed this decision.The company believes the consideration paid was fair and that the claims are not supported by sufficient evidence, and no reserve has been established. We cannot estimate the timing of resolution.
•On May 27, 2022, performance of all Linde Engineering agreements in Russia were lawfully suspended in compliance with applicable sanctions. In December 2022, at RusChemAlliance’s (RCA) request a Russian St. Petersburg court (“St. Petersburg Court”) issued an injunction preventing sale of Linde Russia subsidiaries and assets. During 2023 and 2024, in accordance with the dispute resolution provisions of the related engineering agreements Linde secured judgements reenforcing jurisdiction of the agreements with RCA outside of Russia and ordering the St. Petersburg proceedings stayed and injunctions lifted. However, RCA has continued to pursue its claims in Russia and during the fourth quarter of 2024 two Linde Russian joint ventures were sold locally pursuant to a St. Petersburg court order and the proceeds provided to RCA. Linde does not expect a material adverse impact on earnings given the $ billion liabilities recorded as of June 30, 2025 and the immaterial investment value of its remaining deconsolidated Russia subsidiaries. Please see further detail on the Russia legal cases below.
RCA LNG and GPP
In December 2022, the St. Petersburg Court issued an injunction preventing (i) the sale of any shares in Linde’s subsidiaries and joint ventures in Russia, and (ii) the disposal of any of the assets in those entities exceeding % of the relevant company’s overall asset value. RusChemAlliance is owned % by PJSC Gazprom. The injunction was requested by RCA to secure payment of a possible award under an arbitration proceeding RCA intended to file against Linde Engineering for alleged breach of contract under the agreement to build a gas processing plant in Russia entered into in July 2021. In March 2023, RCA filed a claim in St. Petersburg against Linde GmbH for recovery of advance payments under the agreement ("GPP Claim"), and subsequently (i) added Linde and other Linde subsidiaries as defendants, and (ii) is seeking payment of alleged damages from Linde and guarantor banks. In March 2024, RCA filed a similar claim for repayment and damages against Linde for alleged breach of contract under the agreement to build a liquefied natural gas plant in Russia entered into in September 2021 (“LNG Claim”, and together with the GPP Claim, the “Russian Claims”).
Dispute resolution provisions
In accordance with the dispute resolution provisions of the agreements, in 2023, Linde filed a notice of arbitration with the Hong Kong International Arbitration Centre ("HKIAC") against RCA to claim that (i) RCA has no entitlement to payment, (ii) RCA’s Russian Claims are in breach of the arbitration agreement which requires HKIAC arbitration, and (iii) RCA must compensate Linde for the losses and damages caused by the injunction. During 2024, Linde secured awards on exclusive jurisdiction with HKIAC.
In January 2024, the Hong Kong court issued a final judgment in Linde’s favor (i) granting a permanent anti-suit injunction against RCA to seek a stay of the GPP claim and not start an LNG claim, (ii) granting a permanent, global anti-enforcement injunction against RCA for the GPP claim, and (iii) ordering that the injunction issued by the St. Petersburg Court be lifted (“HK Court Judgement”).
million from two of the guarantor bank’s accounts in Russia. Linde intends to claim all damages related to or rising from RCA's enforcement of the GPP and LNG Decisions in the HKIAC arbitration proceedings. Linde subsidiaries affected by the GPP Decision have also filed claims for damages against RCA in the Southern District of New York, the Netherlands and Germany.
As of June 30, 2025, Linde has a contingent liability of $ billion, which represents advance payments previously recorded in contract liabilities related to terminated engineering projects with RCA. As a result of the contract terminations, Linde no longer has future performance obligations for these projects.
It is difficult to estimate the timing of resolution of these matters. The company intends to vigorously defend its interests in the Russian Claims, Hong Kong arbitration proceedings and other jurisdictions.
Amur GPP
In July 2015, Gazprom Pererabotka Blagoveshchensk LLC ("Gazprom") entered into an engineering, procurement and construction contract with OJSC NIPIgazpererabotka ("Nipigas") for the construction of a gas processing plant and other components located in the Amur Region, Russia (“Amur GPP”). Subsequently, in December 2015, Nipigas and Linde Engineering, executed a subcontract for engineering, procurement, and site services for licensed production units for the Amur GPP project. Additionally, Linde also entered into (i) a license agreement with Gazprom in 2017 for the operation of the plants, and (ii) a direct owner agreement with Gazprom and Nipigas which included limitation of liability provisions. Performance of the Amur GPP agreements were lawfully suspended in compliance with applicable sanctions on May 27, 2022.
On October 8, 2021 and January 5, 2022, fires occurred at the Amur GPP facility. Following the initial fire in 2021, Linde undertook a comprehensive review of the incident, including a detailed local inspection conducted by Linde employees. The Linde report concluded that the fire was attributable to the quality of construction and assembly work, responsibilities falling under the scope of Nipigas. On October 29, 2024, Gazprom submitted a claim to the Arbitration State Court in the Amur Region, Russia (“Amur Court”) against Linde claiming damages and lost profits arising from the fire incidents.
As of June 30, 2025, Linde has a contingent liability of $ billion for this and other Amur GPP contract matters. It is difficult to estimate the timing of resolution of this matter. The company intends to vigorously defend its interests in this case.
9.
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | Variable Costs (b) | | | | | | | | | | | | | | | | | | |
| Fixed Costs and other (c) | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization (d) | | | | | | | | | | | | | | | | | | |
| Operating Profit (e) | | $ | | | | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | |
| 2024 | | | | | | | | | | | | |
| Sales (a) | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Variable Costs (b) | | | | | | | | | | | | | | | | | | |
| Fixed Costs and other (c) | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization (d) | | | | | | | | | | | | | | | | | | |
| Operating Profit (e) | | $ | | | | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | |
| | | | | | | | | | | | |
| Six Months Ended June 30, |
| (Millions of dollars) | | Americas | | EMEA | | APAC | | Engineering | | Other | | Total |
| 2025 | | | | | | | | | | | | |
| Sales (a) | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Variable Costs (b) | | | | | | | | | | | | | | | | | | |
| Fixed Costs and other (c) | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization (d) | | | | | | | | | | | | | | | | | | |
| Operating Profit (e) | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| 2024 | | | | | | | | | | | | |
| Sales (a) | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Variable Costs (b) | | | | | | | | | | | | | | | | | | |
| Fixed Costs and other (c) | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization (d) | | | | | | | | | | | | | | | | | | |
| Operating Profit (e) | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
(a)Sales reflect external sales only. Intersegment sales from Engineering to the industrial gases segments, were $ million and $ million for the second quarter 2025 and 2024, respectively, and $ million and $ million for the six months ended 2025 and 2024, respectively. Intersegment sales from Helium, were $ million and $ million for the second quarter 2025 and 2024, respectively, and $ million and $ million for the six months ended June 30, 2025 and 2024, respectively.
(b)Variable costs represents the variable portion of cost of sales, exclusive of depreciation and amortization.
(c)Fixed costs and other represents the fixed portion of cost of sales (exclusive of depreciation and amortization), selling, general and administrative, research and development and other income (expenses) - net.
(d)Refer to reconciliation of depreciation and amortization to consolidated results below.
(e)Refer to reconciliation of operating profit to consolidated results below.
Reconciliations to Consolidated Results
Depreciation and Amortization
The table below reconciles total depreciation and amortization disclosed in the table above to consolidated depreciation and amortization as reflected on our consolidated statement of income:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, | | Six Months Ended June 30, |
| (Millions of dollars) | | 2025 | | 2024 | | 2025 | | 2024 |
| Total segment depreciation and amortization | | $ | | | | $ | | | | $ | | | | $ | | |
| Purchase accounting impacts - Linde AG (a) | | | | | | | | | | | | |
| Total depreciation and amortization | | $ | | | | $ | | | | $ | | | | $ | | |
| | | | | | | | |
| | $ | | | | $ | | | | $ | | | | Cost reduction program and other charges | | | | | | | | | | | | |
| Purchase accounting impacts - Linde AG (a) | | | | | | | | | | | | |
| Total operating profit | | | | | | | | | | | | |
| Interest expense - net | | | | | | | | | | | | |
| Net pension and OPEB cost (benefit), excluding service cost | | () | | | () | | | () | | | () | |
| Total consolidated income before income taxes and equity investments | | $ | | | | $ | | | | $ | | | | $ | | |
(a)To adjust for purchase accounting impacts related to the merger.
10.
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | Net income (a) | | | | | | | | | | | | | | | | | |
| Other comprehensive income (loss) | | | | | | | | | | () | | | () | | | () | |
| Noncontrolling interests: | | | | | | | | | | | |
| Additions (reductions) | () | | | | | | | | | | | | | | | | |
| Dividends and other capital changes | | | | () | | | () | | | | | | () | | | () | |
| | | | | | | |
Dividends to Linde plc ordinary share holders ($ per share in 2025 and $ per share in 2024) | () | | | | | | () | | | () | | | | | | () | |
| Issuances of ordinary shares: | | | | | | | | | | | |
| | | | | | | |
| For employee savings and incentive plans | () | | | | | | () | | | () | | | | | | () | |
| | | | | | | |
| Purchases of ordinary shares | () | | | | | | () | | | () | | | | | | () | |
| | | | | | | |
| Share-based compensation | | | | | | | | | | | | | | | | | |
| Balance, end of period | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| | | | | | | | | | | |
| Six Months Ended June 30, |
| (Millions of dollars) | 2025 | | 2024 |
| Activity | Linde plc
Shareholders’
Equity | | Noncontrolling
Interests | | Total
Equity | | Linde plc
Shareholders’
Equity | | Noncontrolling
Interests | | Total
Equity |
| Balance, beginning of period | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Net income (a) | | | | | | | | | | | | | | | | | |
| Other comprehensive income (loss) | | | | | | | | | | () | | | () | | | () | |
| Noncontrolling interests: | | | | | | | | | | | |
| Additions (reductions) | () | | | | | | | | | | | | | | | | |
| Dividends and other capital changes | | | | () | | | () | | | | | | () | | | () | |
| | | | | | | |
Dividends to Linde plc ordinary share holders ($ per share in 2025 and $ per share in 2024) | () | | | | | | () | | | () | | | | | | () | |
| Issuances of ordinary shares: | | | | | | | | | | | |
| | | | | | | |
| For employee savings and incentive plans | () | | | | | | () | | | () | | | | | | () | |
| | | | | | | |
| Purchases of ordinary shares | () | | | | | | () | | | () | | | | | | () | |
| | | | | | | |
| Share-based compensation | | | | | | | | | | | | | | | | | |
| Balance, end of period | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
) | | $ | () | | | EMEA | () | | | () | |
| APAC | () | | | () | |
| Engineering | | | | () | |
| Other | () | | | | |
| () | | | () | |
| Derivatives - net of taxes | | | | () | |
|
Pension / OPEB (net of tax obligations of $ million and $ million at June 30, 2025 and December 31, 2024, respectively) | | | | | |
| $ | () | | | $ | () | |
11.
basic distribution methods: (i) on-site or tonnage; (ii) merchant or bulk liquid; and (iii) packaged or cylinder gases. The distribution method used by Linde to supply a customer is determined by many factors, including the customer’s volume requirements and location. The distribution method generally determines the contract terms with the customer and, accordingly, the revenue recognition accounting practices. Linde's primary products in its industrial gases business are atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (hydrogen, helium, carbon dioxide, carbon monoxide, electronic gases, specialty gases, acetylene). These products are generally sold through one of the distribution methods.Following is a description of each of the industrial gases distribution methods and the respective revenue recognition policies:
On-site. Customers that require the largest volumes of product and that have a relatively constant demand pattern are supplied by cryogenic and process gas on-site plants. Linde constructs plants on or adjacent to these customers’ sites and supplies the product directly to customers by pipeline. Where there are large concentrations of customers, a single pipeline may be connected to several plants and customers. On-site product supply contracts generally are total requirement contracts with terms typically ranging from - years and contain minimum purchase requirements and price escalation provisions. Many of the cryogenic on-site plants also produce liquid products for the merchant market. Therefore, plants are typically not dedicated to a single customer. Additionally, Linde is responsible for the design, construction, operations and maintenance of the plants and our customers typically have no involvement in these activities. Advanced air separation processes also allow on-site delivery to customers with smaller volume requirements.
The company’s performance obligations related to on-site customers are satisfied over time as customers receive and obtain control of the product. Linde has elected to apply the practical expedient for measuring progress towards the completion of a performance obligation and recognizes revenue as the company has the right to invoice each customer, which generally corresponds with product delivery. Accordingly, revenue is recognized when product is delivered to the customer and the company has the right to invoice the customer in accordance with the contract terms. Consideration in these contracts is generally based on pricing which fluctuates with various price indices. Variable components of consideration exist within on-
supply agreements based on the requirements of the customer. These contracts generally do not contain minimum purchase requirements or volume commitments.The company’s performance obligations related to merchant customers are generally satisfied at a point in time as the customers receive and obtain control of the product. Revenue is recognized when product is delivered to the customer and the company has the right to invoice the customer in accordance with the contract terms.
Packaged Gases. Customers requiring small volumes are supplied products in containers called cylinders, under medium to high pressure. Linde distributes merchant gases from its production plants to company-owned cylinder filling plants where cylinders are then filled for distribution to customers. Cylinders may be delivered to the customer’s site or picked up by the customer at a packaging facility or retail store. Linde invoices the customer for the industrial gases and the use of the cylinder container(s). The company also sells hardgoods and welding equipment purchased from independent manufacturers. Packaged gases are generally sold under one to supply contracts and purchase orders and do not contain minimum purchase requirements or volume commitments.
The company’s performance obligations related to packaged gases are satisfied at a point in time. Accordingly, revenue is recognized when product is delivered to the customer or when the customer picks up product from a packaged gas facility or retail store and the company has the right to payment from the customer in accordance with the contract terms.
Engineering
The company designs and manufactures equipment for air separation and other industrial gas applications manufactured specifically for end customers. Sale of equipment contracts are generally comprised of a single performance obligation. Revenue from sale of equipment is generally recognized over time as Linde has an enforceable right to payment for performance completed to date and performance does not create an asset with alternative use. For contracts recognized over time, revenue is recognized primarily using a cost incurred input method. Costs incurred to date relative to total estimated costs at completion are used to measure progress toward satisfying performance obligations. Costs incurred include material, labor, and overhead costs and represent work contributing and proportionate to the transfer of control to the customer. Changes to cost estimates and contract modifications are typically accounted for as part of the existing contract and are recognized as cumulative adjustments for the inception-to-date effect of such change.
Contract Assets and Liabilities
Contract assets and liabilities result from differences in timing of revenue recognition and customer invoicing. Contract assets primarily relate to sale of equipment contracts for which revenue is recognized over time. The balance represents unbilled revenue which occurs when revenue recognized under the measure of progress exceeds amounts invoiced to customers. Customer invoices may be based on the passage of time, the achievement of certain contractual milestones or a combination of both criteria. Contract liabilities include advance payments or right to consideration prior to performance under the contract. Contract liabilities are recognized as revenue as performance obligations are satisfied under contract terms. Linde has contract assets of $ million at June 30, 2025 (current contract assets of $ million and $ million within other long-term assets in the condensed consolidated balance sheet). Total contract assets were $ million at December 31, 2024, all classified as current contract assets in the condensed consolidated balance sheet. Total contract liabilities are $ million at June 30, 2025 (current contract liabilities of $ million and $ million within other long-term liabilities in the condensed consolidated balance sheet). Total contract liabilities were $ million at December 31, 2024 (current contract liabilities of $ million and $ million within other long-term liabilities in the condensed consolidated balance sheet). Revenue recognized for the six months ended June 30, 2025 that was included in the contract liability at December 31, 2024 was $ million. Contract assets and liabilities primarily relate to the Engineering business and customer prepayments for certain on-site supply agreements.
Payment Terms and Other
Linde generally receives payment after performance obligations are satisfied, and customer prepayments are not typical for the industrial gases business. Payment terms vary based on the country where sales originate and local customary payment practices. Linde does not offer extended financing outside of customary payment terms. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue producing transactions are
| $ | | | $ | | | $ | | | $ | | | $ | | | | % | | On-Site | | | | | | | | | | | | | | % |
| Packaged Gas | | | | | | | | | | | | | | % |
| Other | | | | | | | | | | | | | | % |
| Total | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | | % |
| 2024 | | | | | | | |
| Merchant | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | | % |
| On-Site | | | | | | | | | | | | | | % |
| Packaged Gas | | | | | | | | | | | | | | % |
| Other | | | | | | | | | | | | | | % |
| Total | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| (Millions of dollars) | Six Months Ended June 30, |
| Sales | Americas | EMEA | APAC | Engineering | Other | Total | % |
| 2025 | | | | | | | |
| Merchant | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | | % |
| On-Site | | | | | | | | | | | | | | % |
| Packaged Gas | | | | | | | | | | | | | | % |
| Other | | | | | | | | | | | | | | % |
| Total | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | | % |
| 2024 | | | | | | | |
| Merchant | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | | % |
| On-Site | | | | | | | | | | | | | | % |
| Packaged Gas | | | | | | | | | | | | | | % |
| Other | | | | | | | | | | | | | | % |
| Total | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | | % |
Remaining Performance Obligations
As described above, Linde's contracts with on-site customers are under long-term supply arrangements which generally require the customer to purchase their requirements from Linde and also have minimum purchase requirements. Additionally, plant sales from the Linde Engineering business are primarily contracted on a fixed price basis. The company estimates the consideration related to future minimum purchase requirements and plant sales was approximately $ billion. This amount excludes all on-site sales above minimum purchase requirements, which can be significant depending on customer needs. In the future, actual amounts will be different due to impacts from several factors, many of which are beyond the company’s control including, but not limited to, timing of newly signed, terminated and renewed contracts, inflationary price escalations, currency exchange rates, and pass-through costs related to natural gas and electricity. The actual duration of long-term supply contracts
. The company estimates that approximately half of the revenue related to minimum purchase requirements will be earned in the next and the remaining thereafter.12.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")
Non-GAAP Measures
Throughout MD&A, the company provides adjusted operating results exclusive of certain items such as Cost reduction program and other charges, purchase accounting impacts of the Linde AG merger, and pension settlement charges. Adjusted amounts are non-GAAP measures which are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management find useful in evaluating the company’s operating performance. Items which the company does not believe to be indicative of on-going business performance are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. In addition, operating results, excluding these items, is important to management's development of annual and long-term employee incentive compensation plans. Definitions of these non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures.
The non-GAAP measures and reconciliations are separately included in a later section in the MD&A titled "Non-GAAP Measures and Reconciliations."
Consolidated Results
The following table provides summary information for the quarters and six months ended June 30, 2025 and 2024. The reported amounts are GAAP amounts from the Consolidated Statement of Income. The adjusted amounts are intended to supplement investors' understanding of the company's financial information and are not a substitute for GAAP measures:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended June 30, | | Six Months Ended June 30, |
| (Millions of dollars, except per share data) | 2025 | | 2024 | | Variance | | 2025 | | 2024 | | Variance |
| Sales | $ | 8,495 | | | $ | 8,267 | | | 3 | % | | $ | 16,607 | | | $ | 16,367 | | | 1 | % |
| Cost of sales, exclusive of depreciation and amortization | $ | 4,306 | | | $ | 4,251 | | | 1 | % | | $ | 8,463 | | | $ | 8,467 | | | — | % |
| As a percent of sales | 50.7 | % | | 51.4 | % | | | | 51.0 | % | | 51.7 | % | | |
| Selling, general and administrative | $ | 870 | | | $ | 840 | | | 4 | % | | $ | 1,656 | | | $ | 1,700 | | | (3) | % |
| As a percent of sales | 10.2 | % | | 10.2 | % | | | | 10.0 | % | | 10.4 | % | | |
| Depreciation and amortization | $ | 942 | | | $ | 958 | | | (2) | % | | $ | 1,852 | | | $ | 1,907 | | | (3) | % |
| Cost reduction program and other charges | $ | — | | | $ | — | | | NA | | $ | 55 | | | $ | — | | | NA |
| Other income (expense) - net | $ | 15 | | | $ | 2 | | | 650 | % | | $ | 33 | | | $ | 60 | | | 45 | % |
| Operating profit | $ | 2,354 | | | $ | 2,184 | | | 8 | % | | $ | 4,538 | | | $ | 4,279 | | | 6 | % |
| Operating margin | 27.7 | % | | 26.4 | % | | | | 27.3 | % | | 26.1 | % | | |
| Interest expense - net | $ | 67 | | | $ | 70 | | | (4) | % | | $ | 127 | | | $ | 135 | | | (6) | % |
| Net pension and OPEB cost (benefit), excluding service cost | $ | (59) | | | $ | (49) | | | 20 | % | | $ | (115) | | | $ | (99) | | | 16 | % |
| Effective tax rate | 24.4 | % | | 23.5 | % | | | | 24.0 | % | | 22.9 | % | | |
| Income from equity investments | $ | 33 | | | $ | 45 | | | (27) | % | | $ | 71 | | | $ | 93 | | | (24) | % |
| Noncontrolling interests | $ | (40) | | | $ | (37) | | | 8 | % | | $ | (74) | | | $ | (75) | | | (1) | % |
| Net Income – Linde plc | $ | 1,766 | | | $ | 1,663 | | | 6 | % | | $ | 3,439 | | | $ | 3,290 | | | 5 | % |
| Diluted earnings per share | $ | 3.73 | | | $ | 3.44 | | | 8 | % | | $ | 7.24 | | | $ | 6.79 | | | 7 | % |
| Diluted shares outstanding | 473,573 | | | 483,177 | | | (2) | % | | 474,691 | | | 484,366 | | | (2) | % |
| Number of employees | 64,842 | | | 65,987 | | | (2) | % | | 64,842 | | | 65,987 | | | (2) | % |
| Adjusted Amounts (a) | | | | | | | | | | | |
| Operating profit | $ | 2,556 | | | $ | 2,422 | | | 6 | % | | $ | 4,994 | | | $ | 4,763 | | | 5 | % |
| Operating margin | 30.1 | % | | 29.3 | % | | | | 30.1 | % | | 29.1 | % | | |
| Effective tax rate | 24.3 | % | | 23.5 | % | | | | 23.9 | % | | 23.1 | % | | |
| Net Income – Linde plc | $ | 1,937 | | | $ | 1,859 | | | 4 | % | | $ | 3,817 | | | $ | 3,680 | | | 4 | % |
| Diluted earnings per share | $ | 4.09 | | | $ | 3.85 | | | 6 | % | | $ | 8.04 | | | $ | 7.60 | | | 6 | % |
| Other Financial Data (a) | | | | | | | | | | | |
| EBITDA | $ | 3,329 | | | $ | 3,187 | | | 4 | % | | $ | 6,461 | | | $ | 6,279 | | | 3 | % |
| As percent of sales | 39.2 | % | | 38.6 | % | | | | 38.9 | % | | 38.4 | % | | |
| Adjusted EBITDA | $ | 3,351 | | | $ | 3,206 | | | 5 | % | | $ | 6,564 | | | $ | 6,322 | | | 4 | % |
| As percent of sales | 39.4 | % | | 38.8 | % | | | | 39.5 | % | | 38.6 | % | | |
(a)Adjusted Amounts and Other Financial Data are non-GAAP performance measures. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this MD&A.
Reported
In the second quarter of 2025, Linde's sales were $8,495 million, 3% above the prior year. Sales grew 2% from higher price attainment. Cost pass-through, representing the contractual billing of energy cost variances primarily to onsite customers, increased sales by 1% in the quarter, with minimal impact on operating profit. Acquisitions increased sales by 1% in the second quarter. Engineering sales and currency translation were flat in the quarter. Volumes decreased sales by 1% in the quarter versus the 2024 respective period, as base volume declines were partially offset by new project start-ups.
Reported operating profit for the second quarter of 2025 was $2,354 million, or 27.7% of sales, 8% above the prior year. The reported year-over-year increase was primarily driven by higher pricing and productivity initiatives, which more than offset adverse impacts from cost inflation and lower volumes. The reported effective tax rate ("ETR") was 24.4% in the second
quarter 2025 versus 23.5% in the second quarter 2024. Diluted earnings per share ("EPS") was $3.73, or 8% above EPS of $3.44 in the second quarter of 2024, primarily due to higher net income - Linde plc and lower diluted shares outstanding.
Adjusted
In the second quarter of 2025, adjusted operating profit of $2,556 million, or 30.1% of sales, was 6% higher as compared to 2024, driven by higher pricing and productivity initiatives partially offset by cost inflation and lower volumes. The adjusted ETR was 24.3% in the second quarter 2025 versus 23.5% in the respective 2024 quarter. On an adjusted basis, EPS was $4.09, 6% above the 2024 adjusted EPS of $3.85, driven by higher adjusted net income - Linde plc and lower diluted shares outstanding.
Outlook
Linde provides quarterly updates on operating results, material trends that may affect financial performance, and financial guidance via quarterly earnings releases and investor teleconferences. These updates are available on the company’s website, www.linde.com, but are not incorporated herein.
Results of operations
The changes in consolidated sales compared to the prior year are attributable to the following:
| | | | | | | | | | | |
| | Quarter Ended June 30, 2025 vs. 2024 | | Six months ended June 30, 2025 vs. 2024 |
| | % Change | | % Change |
| Factors Contributing to Changes - Sales | | | |
| Volume | (1) | % | | (1) | % |
| Price/Mix | 2 | % | | 2 | % |
| Cost pass-through | 1 | % | | 1 | % |
| Currency | — | % | | (1) | % |
| Acquisitions/divestitures | 1 | % | | — | % |
| Engineering | — | % | | — | % |
| 3 | % | | 1 | % |
Sales
Sales increased 3% for the second quarter of 2025 and increased 1% for the six months ended June 30, 2025 versus the respective 2024 periods. Higher price attainment increased 2% in the quarter and six months ended June 30, 2025. Acquisitions increased sales by 1% in the quarter and were flat for the six months ended June 30, 2025. Cost pass-through increased sales by 1% in both the quarter and six months ended June 30, 2025, with minimal impact on operating profit. Volumes decreased sales by 1% in the quarter and six months ended June 30, 2025, as base volume declines were partially offset by new project start-ups. Currency translation was flat in the quarter and decreased sales by 1% for the six months ended June 30, 2025, primarily driven by the weakening of Brazilian real and Mexican peso partially offset by the strengthening of the Euro against the U.S. dollar year to date. Engineering sales were flat in the quarter and six months ended June 30, 2025.
Cost of sales, exclusive of depreciation and amortization
Cost of sales, exclusive of depreciation and amortization, increased $55 million, or 1%, for the second quarter of 2025, primarily due to cost inflation partially offset by lower volumes and productivity gains and decreased $4 million, for the six months ended June 30, 2025. Cost of sales, exclusive of depreciation and amortization was 50.7% and 51.0% of sales for the second quarter and six months ended June 30, 2025, respectively, versus 51.4% and 51.7% for the respective 2024 periods. The decrease as a percentage of sales in the quarter and year to date was primarily due to higher pricing and productivity gains.
Selling, general and administrative expenses
Selling, general and administrative expense ("SG&A") increased $30 million, or 4%, for the second quarter of 2025 and decreased $44 million, or 3%, for the six months ended June 30, 2025. SG&A was 10.2% of second quarter sales and 10.0% of sales for the six months ended June 30, 2025 versus 10.2% and 10.4% of sales for the respective 2024 periods. Currency impacts decreased SG&A approximately $15 million for the six months ended June 30, 2025. SG&A increased during the
second quarter of 2025 due to higher costs and decreased for the six months ended June 30, 2025, excluding foreign currency impacts, due to lower costs, savings from cost reduction programs, and productivity initiatives.
Depreciation and amortization
Reported depreciation and amortization expense decreased $16 million, or 2%, for the second quarter of 2025 and decreased $55 million, or 3%, in the six months ended June 30, 2025, primarily due to lower depreciation and amortization of assets acquired in the merger, partially offset by the net impact of new project start-ups.
On an adjusted basis, depreciation and amortization increased $23 million, or 3%, for the second quarter of 2025 and increased $33 million, or 2%, for the six months ended June 30, 2025. Currency impacts decreased depreciation and amortization by $12 million for the six months ended June 30, 2025. Excluding currency, for the quarter and year-to-date periods, the underlying depreciation and amortization increase was driven largely by new project start-ups.
Cost reduction program and other charges
There were no cost reduction program and other charges for the second quarter of 2025. For the six months ended June 30, 2025, cost reduction program and other charges of $55 million primarily related to severance charges. On an adjusted basis, these costs have been excluded. There were no charges during the respective 2024 periods.
Other income (expense) - net
Reported other income (expense) - net was a benefit of $15 million for the second quarter of 2025 and $33 million for the year-to-date period. 2024 other income (expense) for the year-to-date period included a benefit of $43 million in insurance recoveries primarily within the Other segment.
Operating profit
On a reported basis, operating profit increased $170 million, or 8%, for the second quarter of 2025 and increased $259 million, or 6%, for the six months ended June 30, 2025. The increase in the quarter was primarily due to higher pricing and savings from productivity initiatives, which more than offset the adverse impacts of cost inflation and lower volumes.
On an adjusted basis, which excludes the impacts of merger-related purchase accounting as well as cost reduction programs and other charges, operating profit increased $134 million, or 6%, in the second quarter of 2025 and increased $231 million, or 5%, for the six months ended June 30, 2025. Operating profit growth was driven by higher pricing and productivity initiatives, which more than offset the effects of cost inflation and lower volumes during the quarter and year-to-date periods of 2025. A discussion of operating profit by segment is included in the segment discussion that follows.
Interest expense - net
Reported interest expense - net decreased $3 million, or 4%, for the second quarter of 2025 and decreased $8 million, or 6%, for the six months ended June 30, 2025.
Net pension and OPEB cost (benefit), excluding service cost
Reported net pension and OPEB cost (benefit), excluding service cost, was a benefit of $59 million and $115 million for the quarter and six months ended June 30, 2025, respectively, versus $49 million and $99 million for the respective 2024 periods. The increase in the benefit primarily relates to lower interest cost due to lower benefit obligations and higher amortization of deferred gains year-over-year, partially offset by lower expected return on plan assets.
Effective tax rate
The reported effective tax rate ("ETR") for the quarter and six months ended June 30, 2025 was 24.4% and 24.0%, respectively, versus 23.5% and 22.9% for the respective 2024 periods. On an adjusted basis, the ETR for the quarter and six months ended June 30, 2025 was 24.3% and 23.9%, respectively, versus 23.5% and 23.1% for the respective 2024 periods.
On both a reported and adjusted basis, the increase in the quarter rate is primarily due to 2024 tax benefits from a repatriation. The increase in the year-to-date rate is primarily due to 2024 tax benefits from a repatriation and lower tax benefits from share-based compensation in 2025.
Income from equity investments
Reported income from equity investments for the second quarter and six months ended June 30, 2025 was $33 million and $71 million, respectively, versus $45 million and $93 million for the respective 2024 periods.
On an adjusted basis, income from equity investments for the second quarter and six months ended June 30, 2025 was $51 million and $107 million, respectively, versus $63 million and $129 million for the respective 2024 periods.
Noncontrolling interests
At June 30, 2025, noncontrolling interests consisted primarily of non-controlling shareholders' investments in APAC (primarily China). Reported noncontrolling interests income was $40 million and $74 million for the second quarter of 2025 and six months ended June 30, 2025, respectively. Noncontrolling interest was $37 million and $75 million for the respective 2024 periods.
Net Income – Linde plc
Reported net income - Linde plc increased $103 million, or 6%, for the second quarter of 2025 and increased $149 million, or 5%, for the six months ended June 30, 2025 versus the respective 2024 period.
On an adjusted basis, which excludes the impacts of merger-related purchase accounting and cost reduction program and other charges, net income - Linde plc increased $78 million, or 4%, for the second quarter of 2025 and increased $137 million, or 4%, for the six months ended June 30, 2025 versus the respective 2024 period.
On both a reported and adjusted basis, the increase was driven by higher operating profit.
Diluted earnings per share
Reported diluted earnings per share increased $0.29, or 8%, for the second quarter of 2025 versus the respective 2024 period. Reported diluted earnings per share increased $0.45, or 7%, for the six months ended June 30, 2025 versus the respective 2024 period.
On an adjusted basis, diluted EPS increased $0.24, or 6%, for the second quarter versus the respective 2024 period. On an adjusted basis, diluted EPS increased $0.44, or 6%, for the six months ended June 30, 2025, versus the respective 2024 period.
The increase on both a reported and adjusted basis was primarily due to higher net income - Linde plc and lower diluted shares outstanding.
Employees
The number of employees at June 30, 2025 was 64,842, a decrease of 1,145 employees from June 30, 2024, primarily due to the ongoing impact of cost reduction programs.
Other Financial Data
EBITDA was $3,329 million for the second quarter of 2025 as compared to $3,187 million in the respective 2024 period. EBITDA was $6,461 million for the six months ended June 30, 2025 as compared to $6,279 million in the respective 2024 period.
Adjusted EBITDA increased to $3,351 million for the second quarter 2025 from $3,206 million in the respective 2024 period. Adjusted EBITDA increased to $6,564 million for the six months ended June 30, 2025 from $6,322 million in the respective 2024 period. The increase on both a reported and adjusted basis was driven by higher net income - Linde plc versus prior year.
See the "Non-GAAP Measures and Reconciliations" section for definitions and reconciliations of these adjusted non-GAAP measures to reported GAAP amounts.
Other Comprehensive Income (Loss)
Other comprehensive income for the second quarter and six months ended June 30, 2025 was $541 million and $672 million, respectively. The income in the quarter and year-to-date periods resulted primarily from currency translation adjustments of $499 million and $633 million, respectively. The translation adjustments reflect the impact of translating local currency foreign subsidiary financial statements to U.S. dollars, and are largely driven by the movement of the U.S. dollar against major currencies, including the Euro, British pound and the Chinese yuan. See the "Currency" section of the MD&A for exchange
rates used for translation purposes and Note 10 to the condensed consolidated financial statements for a summary of the currency translation adjustment component of accumulated other comprehensive income (loss) by segment.
Segment Discussion
The following summary of sales and operating profit by segment provides a basis for the discussion that follows. Linde plc evaluates the performance of its reportable segments based on operating profit, excluding items not indicative of ongoing business trends. The reported amounts are GAAP amounts from the Consolidated Statement of Income.
| | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended June 30, | | Six Months Ended June 30, |
| (Millions of dollars) | 2025 | 2024 | Variance | | 2025 | 2024 | Variance |
| SALES | | | | | | | |
| Americas | $ | 3,812 | | $ | 3,655 | | 4 | % | | $ | 7,478 | | $ | 7,215 | | 4 | % |
| EMEA | 2,162 | | 2,091 | | 3 | % | | 4,193 | | 4,182 | | — | % |
| APAC | 1,655 | | 1,657 | | — | % | | 3,194 | | 3,248 | | (2) | % |
| Engineering | 551 | | 544 | | 1 | % | | 1,116 | | 1,083 | | 3 | % |
| Other | 315 | | 320 | | (2) | % | | 626 | | 639 | | (2) | % |
| Total sales | $ | 8,495 | | $ | 8,267 | | 3 | % | | $ | 16,607 | | $ | 16,367 | | 1 | % |
| | | | | | | |
| SEGMENT OPERATING PROFIT | | | | | | | |
| Americas | $ | 1,209 | | $ | 1,159 | | 4 | % | | $ | 2,346 | | $ | 2,247 | | 4 | % |
| EMEA | 780 | | 704 | | 11 | % | | 1,502 | | 1,391 | | 8 | % |
| APAC | 490 | | 474 | | 3 | % | | 941 | | 921 | | 2 | % |
| Engineering | 90 | | 96 | | (6) | % | | 204 | | 196 | | 4 | % |
| Other | (13) | | (11) | | (18) | % | | 1 | | 8 | | (88) | % |
| Segment operating profit | $ | 2,556 | | $ | 2,422 | | 6 | % | | $ | 4,994 | | $ | 4,763 | | 5 | % |
| Reconciliation to reported operating profit: | | | | | | | |
| Cost reduction program and other charges | — | | — | | | | (55) | | — | | |
| Purchase accounting impacts - Linde AG (a) | (202) | | (238) | | | | (401) | | (484) | | |
| Total operating profit | $ | 2,354 | | $ | 2,184 | | | | $ | 4,538 | | $ | 4,279 | | |
(a)To adjust for purchase accounting impacts related to the merger.
Americas
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, | | Six Months Ended June 30, |
| (Millions of dollars) | 2025 | | 2024 | | Variance | | 2025 | | 2024 | | Variance |
| Sales | $ | 3,812 | | | $ | 3,655 | | | 4 | % | | $ | 7,478 | | | $ | 7,215 | | | 4 | % |
| | | | | | | | | | | |
| Operating profit | $ | 1,209 | | | $ | 1,159 | | | 4 | % | | $ | 2,346 | | | $ | 2,247 | | | 4 | % |
| As a percent of sales | 31.7 | % | | 31.7 | % | | | | 31.4 | % | | 31.1 | % | | |
| | | | | | | | | | | |
| | Quarter Ended June 30, 2025 vs. 2024 | | Six Months Ended June 30, 2025 vs. 2024 |
| | % Change | | % Change |
Factors Contributing to Changes - Sales | | | |
| Volume | 1 | % | | 1 | % |
| Price/Mix | 3 | % | | 3 | % |
| Cost pass-through | 1 | % | | 2 | % |
| Currency | (2) | % | | (3) | % |
| Acquisitions/divestitures | 1 | % | | 1 | % |
|
| 4 | % | | 4 | % |
The Americas segment includes Linde's industrial gases operations in approximately 20 countries including the United States, Canada, Mexico, and Brazil.
Sales
Sales for the Americas segment increased $157 million, or 4%, in the second quarter and increased $263 million, or 4%, for the six months ended June 30, 2025 versus the respective 2024 periods. Higher pricing contributed 3% to sales in both the quarter and year-to-date periods. Cost pass-through increased sales by 1% in the second quarter and increased sales by 2% year to date, with minimal impact on operating profit. Acquisitions increased sales by 1% in both the quarter and year-to-date periods. Volumes increased sales by 1% in both the quarter and year-to-date periods, primarily driven by chemicals & energy end markets including project start-ups. Currency translation decreased sales by 2% in the second quarter and decreased sales by 3% year to date, driven primarily by the weakening of the Brazilian real and Mexican peso against the U.S. dollar.
Operating profit
Operating profit in the Americas segment increased $50 million, or 4%, in the second quarter and increased $99 million, or 4%, for the six months ended June 30, 2025 versus the respective 2024 period, driven primarily by higher pricing and continued productivity initiatives, which more than offset cost inflation and currency translation.
EMEA
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, | | Six Months Ended June 30, |
| (Millions of dollars) | 2025 | | 2024 | | Variance | | 2025 | | 2024 | | Variance |
| Sales | $ | 2,162 | | | $ | 2,091 | | | 3 | % | | $ | 4,193 | | | $ | 4,182 | | | — | % |
| | | | | | | | | | | |
| Operating profit | $ | 780 | | | $ | 704 | | | 11 | % | | $ | 1,502 | | | $ | 1,391 | | | 8 | % |
| As a percent of sales | 36.1 | % | | 33.7 | % | | | | 35.8 | % | | 33.3 | % | | |
| | | | | | | | | | | |
| | Quarter Ended June 30, 2025 vs. 2024 | | Six Months Ended June 30, 2025 vs. 2024 |
| % Change | | % Change |
Factors Contributing to Changes - Sales | | | |
| Volume | (4) | % | | (3) | % |
| Price/Mix | 3 | % | | 2 | % |
| Cost pass-through | — | % | | — | % |
| Currency | 4 | % | | 1 | % |
| Acquisitions/divestitures | — | % | | — | % |
|
| 3 | % | | — | % |
The EMEA segment includes Linde's industrial gases operations in approximately 45 European, Middle Eastern and African countries including Germany, United Kingdom, France, the Republic of South Africa and Sweden.
Sales
EMEA segment sales increased $71 million, or 3%, in the second quarter and were flat for the six months ended June 30, 2025 compared to the respective 2024 periods. Higher price attainment increased sales by 3% in the quarter and increased 2% year to date. Currency translation increased sales by 4% in the second quarter and increased sales by 1% year to date, driven primarily by the strengthening of the Euro and British pound against the U.S. dollar. Volumes decreased sales by 4% in the quarter and 3% in the year-to-date period, primarily driven by the metals & mining and manufacturing end markets. Cost pass-through was flat in both the quarter and year-to-date periods with minimal impact on operating profit.
Operating Profit
Operating profit for the EMEA segment increased by $76 million, or 11%, in the second quarter and increased $111 million, or 8%, for the six months ended June 30, 2025 compared to the respective 2024 periods. The increase in the second quarter and year to date was driven primarily by higher pricing, currency translation, and continued productivity initiatives, partially offset by cost inflation and lower volumes.
APAC
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, | | Six Months Ended June 30, |
| (Millions of dollars) | 2025 | | 2024 | | Variance | | 2025 | | 2024 | | Variance |
| Sales | $ | 1,655 | | | $ | 1,657 | | | — | % | | $ | 3,194 | | | $ | 3,248 | | | (2) | % |
| | | | | | | | | | | |
| Operating profit | $ | 490 | | | $ | 474 | | | 3 | % | | $ | 941 | | | $ | 921 | | | 2 | % |
| As a percent of sales | 29.6 | % | | 28.6 | % | | | | 29.5 | % | | 28.4 | % | | |
| | | | | | | | | | | |
| | Quarter Ended June 30, 2025 vs. 2024 | | Six Months Ended June 30, 2025 vs. 2024 |
| | % Change | | % Change |
Factors Contributing to Changes - Sales | | | |
Volume/Equipment | (1) | % | | (1) | % |
| Price/Mix | — | % | | — | % |
| Cost pass-through | (1) | % | | (1) | % |
| Currency | — | % | | (1) | % |
| Acquisitions/divestitures | 2 | % | | 1 | % |
|
| — | % | | (2) | % |
The APAC segment includes Linde's industrial gases operations in approximately 15 Asian and South Pacific countries and regions including China, Australia, India, and South Korea.
Sales
Sales for the APAC segment were flat in the second quarter and decreased $54 million, or 2%, for the six months ended June 30, 2025 versus the respective 2024 periods. Acquisitions increased sales by 2% in the quarter and increased 1% in the year-to-
date period. Price was flat in the quarter and year-to-date periods. Volumes decreased sales by 1% in the quarter and year-to-date periods as base volume declines primarily in the manufacturing end market were partially offset by new project start-ups. Currency translation was flat in the quarter and decreased sales by 1% year to date, primarily due to the weakening of the Korean won and Australian dollar against the U.S. dollar. Cost pass-through decreased sales by 1% in both the second quarter and year-to-date periods with minimal impact on operating profit.
Operating profit
Operating profit in the APAC segment increased $16 million, or 3%, in the second quarter and increased $20 million, or 2%, for the six months ended June 30, 2025, driven primarily by productivity initiatives, which more than offset cost inflation and lower volumes.
Engineering
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, | | Six Months Ended June 30, |
| (Millions of dollars) | 2025 | | 2024 | | Variance | | 2025 | | 2024 | | Variance |
| Sales | $ | 551 | | | $ | 544 | | | 1 | % | | $ | 1,116 | | | $ | 1,083 | | | 3 | % |
| | | | | | | | | | | |
| Operating profit | $ | 90 | | | $ | 96 | | | (6) | % | | $ | 204 | | | $ | 196 | | | 4 | % |
| As a percent of sales | 16.3 | % | | 17.6 | % | | | | 18.3 | % | | 18.1 | % | | |
| | | | | | | | | | | |
| | Quarter Ended June 30, 2025 vs. 2024 | | Six Months Ended June 30, 2025 vs. 2024 |
| | % Change | | % Change |
Factors Contributing to Changes - Sales | | | |
|
|
|
| Currency | 3 | % | | — | % |
|
| Other | (2) | % | | 3 | % |
| 1 | % | | 3 | % |
Sales
Engineering segment sales increased $7 million, or 1%, in the second quarter and increased $33 million, or 3%, for the six months ended June 30, 2025, as compared to the respective 2024 periods. The increase in the quarter was primarily driven by currency translation, which increased sales by 3% in the quarter due to the strengthening of the Euro against the U.S. dollar and was flat year to date. The increase in the year-to-date period was primarily driven by project timing.
Operating profit
Engineering segment operating profit decreased $6 million, or 6%, in the second quarter and increased $8 million, or 4%, for the six months ended June 30, 2025 as compared to the respective 2024 periods primarily driven by project timing.
Other
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, | | Six Months Ended June 30, |
| (Millions of dollars) | 2025 | | 2024 | | Variance | | 2025 | | 2024 | | Variance |
| Sales | $ | 315 | | | $ | 320 | | | (2) | % | | $ | 626 | | | $ | 639 | | | (2) | % |
| | | | | | | | | | | |
| Operating profit (loss) | $ | (13) | | | $ | (11) | | | (18) | % | | $ | 1 | | | $ | 8 | | | (88) | % |
| As a percent of sales | (4.1) | % | | (3.4) | % | | | | 0.2 | % | | 1.3 | % | | |
| | | | | | | | | | | |
| | Quarter Ended June 30, 2025 vs. 2024 | | Six Months Ended June 30, 2025 vs. 2024 |
| | % Change | | % Change |
Factors Contributing to Changes - Sales | | | |
Volume/price | (3) | % | | (2) | % |
| Cost pass-through | — | % | | — | % |
| Currency | 1 | % | | — | % |
| Acquisitions/divestitures | — | % | | — | % |
|
| (2) | % | | (2) | % |
|
Other consists of corporate costs and a few smaller businesses including Linde Advanced Material Technologies (LAMT) and global helium wholesale, which individually do not meet the quantitative thresholds for separate presentation.
Sales
Sales for Other decreased $5 million, or 2%, for the second quarter and decreased $13 million, or 2% for the six months ended June 30, 2025, versus the respective 2024 periods. Underlying sales decreased by 3% in the quarter and decreased 2% in the year-to-date period primarily due to lower volumes in LAMT. Currency translation increased sales by 1% in the quarter and was flat year to date.
Operating profit
Operating profit in Other decreased $2 million in the second quarter and decreased $7 million for the six months ended June 30, 2025 versus the respective 2024 periods. The decrease in the year to date period was driven by higher costs due to helium and an insurance recovery in 2024, partially offset by lower corporate costs and continued productivity initiatives.
Currency
The results of Linde's non-U.S. operations are translated to the company’s reporting currency, the U.S. dollar, from the functional currencies. For most operations, Linde uses the local currency as its functional currency. There is inherent variability and unpredictability in the relationship of these functional currencies to the U.S. dollar and such currency movements may materially impact Linde's results of operations in any given periods.
To help understand the reported results, the following is a summary of the significant currencies underlying Linde's consolidated results and the exchange rates used to translate the financial statements (rates of exchange expressed in units of local currency per U.S. dollar):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Percentage of YTD 2025 Consolidated Sales | | Exchange Rate for
Income Statement | | Exchange Rate for
Balance Sheet |
| | Year-To-Date Average | | June 30, | | December 31, |
| Currency | 2025 | | 2024 | | 2025 | | 2024 |
| Euro | 17 | % | | 0.91 | | | 0.93 | | | 0.85 | | | 0.97 | |
| Chinese yuan | 7 | % | | 7.25 | | | 7.22 | | | 7.16 | | | 7.30 | |
| British pound | 5 | % | | 0.77 | | | 0.79 | | | 0.73 | | | 0.80 | |
| Brazilian real | 4 | % | | 5.76 | | | 5.08 | | | 5.43 | | | 6.18 | |
| Australian dollar | 4 | % | | 1.58 | | | 1.52 | | | 1.52 | | | 1.62 | |
| Mexican peso | 3 | % | | 19.94 | | | 17.10 | | | 18.75 | | | 20.83 | |
| Korean won | 3 | % | | 1,425 | | | 1,350 | | | 1,354 | | | 1,472 | |
| Canadian dollar | 3 | % | | 1.41 | | | 1.36 | | | 1.36 | | | 1.44 | |
| Indian rupee | 2 | % | | 86.09 | | | 83.23 | | | 85.75 | | | 85.61 | |
| Swedish krona | 1 | % | | 10.14 | | | 10.54 | | | 9.46 | | | 11.07 | |
| South African rand | 1 | % | | 18.39 | | | 18.73 | | | 17.71 | | | 18.84 | |
| Swiss franc | 1 | % | | 0.86 | | | 0.89 | | | 0.79 | | | 0.91 | |
Liquidity, Capital Resources and Other Financial Data
The following selected cash flow information provides a basis for the discussion that follows:
| | | | | | | | | | | |
| (Millions of dollars) | Six Months Ended June 30, |
| | 2025 | | 2024 |
| NET CASH PROVIDED BY (USED FOR): | | | |
| OPERATING ACTIVITIES | | | |
| Net income (including noncontrolling interests) | $ | 3,513 | | | $ | 3,365 | |
| Non-cash charges (credits): | | | |
| Add: Depreciation and amortization | 1,852 | | | 1,907 | |
| Add: Deferred income taxes | (13) | | | (184) | |
| Add: Share-based compensation | 88 | | | 78 | |
| Add: Cost reduction program and other charges, net of payments | (14) | | | (75) | |
| Net income adjusted for non-cash charges | 5,426 | | | 5,091 | |
| Less: Working capital | (947) | | | (1,089) | |
|
|
|
|
|
|
| Less: Pension contributions | (15) | | | (24) | |
| Other | (92) | | | (95) | |
| Net cash provided by (used for) operating activities | $ | 4,372 | | | $ | 3,883 | |
| INVESTING ACTIVITIES | | | |
| Capital expenditures | (2,527) | | | (2,181) | |
| Acquisitions, net of cash acquired | (270) | | | (152) | |
| Divestitures, net of cash divested and asset sales | 24 | | | 22 | |
| Other investing, net | (53) | | | — | |
| Net cash provided by (used for) investing activities | $ | (2,826) | | | $ | (2,311) | |
| FINANCING ACTIVITIES | | | |
| Debt increase (decrease) - net | 1,839 | | | 2,535 | |
| Issuances (purchases) of common stock - net | (2,207) | | | (2,460) | |
| Cash dividends - Linde plc shareholders | (1,412) | | | (1,334) | |
| Noncontrolling interest transactions and other | 26 | | | (217) | |
| Net cash provided by (used for) financing activities | $ | (1,754) | | | $ | (1,476) | |
| | | |
| Effect of exchange rate changes on cash and cash equivalents | $ | 144 | | | $ | (134) | |
| Cash and cash equivalents, end-of-period | $ | 4,786 | | | $ | 4,626 | |
Cash Flow from Operations
Cash provided by operations of $4,372 million for the six months ended June 30, 2025 increased $489 million, or 13%, versus 2024. The increase was driven primarily by higher net income adjusted for non-cash charges and lower net working capital requirements.
Linde estimates that total 2025 required contributions to its pension plans will be in the range of approximately $25 million to $35 million, of which $15 million has been made through June 30, 2025.
Investing
Net cash used for investing activities of $2,826 million for the six months ended June 30, 2025 increased $515 million, or 22% versus 2024, due to higher capital expenditures and acquisition spend, net of cash acquired.
Capital expenditures for the six months ended June 30, 2025 were $2,527 million, $346 million higher than the prior year primarily due to investments in new plant and production equipment for backlog growth requirements.
At June 30, 2025, Linde's sale of gas backlog of large projects under construction was approximately $7.1 billion. This represents the total estimated capital cost of large plants under construction.
Acquisitions, net of cash acquired, were $270 million for the six months ended June 30, 2025, and relate primarily to businesses in the Americas and APAC.
Divestitures, net of cash divested and asset sales for the six months ended June 30, 2025 were $24 million. 2024 divestitures, net of cash divested and asset sales were $22 million.
Other investing, net for the six months ended June 30, 2025 was outflows of $53 million and relate to the cash settlement of foreign exchange contracts designated in a net investment hedging relationship.
Financing
Cash used for financing activities was $1,754 million for the six months ended June 30, 2025 as compared to $1,476 million for the six months ended June 30, 2024. Cash provided by debt was $1,839 million in 2025 versus $2,535 million in 2024, driven primarily by higher commercial paper issuances partially offset by lower net debt issuances in 2025. For the six months ended June 30, 2025, Linde issued €2,250 million Euro-denominated notes and CHF500 million Swiss-franc denominated notes and redeemed or repaid $1,000 million U.S. dollar-denominated notes and €500 million Euro denominated notes.
Net purchases of ordinary shares were $2,207 million in 2025 versus $2,460 million in 2024. For additional information related to the share repurchase programs, see Part II Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Cash dividends of $1,412 million increased $78 million from 2024 driven primarily by an 8% increase in quarterly dividends per share from $1.39 per share to $1.50 per share, partially offset by lower shares outstanding. Cash provided by Noncontrolling interest transactions and other was $26 million for the six months ended June 30, 2025 versus cash used of $217 million for the respective 2024 period. Higher cash inflows from financing related derivatives more than offset outflows for withholding taxes related to share-based compensation arrangements.
The company continues to believe it has sufficient operating flexibility, cash, and funding sources to maintain adequate amounts of liquidity to meet its business needs around the world. The company maintains a $5 billion and a $1.5 billion unsecured and undrawn revolving credit agreement with no associated financial covenants. No borrowings were outstanding under the credit agreements as of June 30, 2025. The company does not anticipate any limitations on its ability to access the debt capital markets and/or other external funding sources and remains committed to its strong ratings from Moody’s and Standard & Poor’s.
Legal Proceedings
See Note 8 to the condensed consolidated financial statements.
NON-GAAP MEASURES AND RECONCILIATIONS
(Millions of dollars, except per share data)
The following non-GAAP measures are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management use to help evaluate the company’s operating performance and liquidity. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures.
| | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended June 30, | | Six Months Ended June 30, |
| 2025 | | 2024 | | 2025 | | 2024 |
| Adjusted Operating Profit and Operating Margin | | | | | | | |
| Reported operating profit | $ | 2,354 | | | $ | 2,184 | | | $ | 4,538 | | | $ | 4,279 | |
| Add: Cost reduction program and other charges | — | | | — | | | 55 | | | — | |
| | | |
| Add: Purchase accounting impacts - Linde AG (c) | 202 | | | 238 | | | 401 | | | 484 | |
| Total adjustments | 202 | | | 238 | | | 456 | | | 484 | |
| Adjusted operating profit | $ | 2,556 | | | $ | 2,422 | | | $ | 4,994 | | | $ | 4,763 | |
| | | | | | | |
| Reported percentage change | 8 | % | | | | 6 | % | | |
| Adjusted percentage change | 6 | % | | | | 5 | % | | |
| | | | | | | |
| Reported sales | $ | 8,495 | | | $ | 8,267 | | | $ | 16,607 | | | $ | 16,367 | |
| | | | | | | |
| Reported operating margin | 27.7 | % | | 26.4 | % | | 27.3 | % | | 26.1 | % |
| Adjusted operating margin | 30.1 | % | | 29.3 | % | | 30.1 | % | | 29.1 | % |
| | | | | | | |
| Adjusted Depreciation and amortization | | | | | | | |
| Reported depreciation and amortization | $ | 942 | | | $ | 958 | | | $ | 1,852 | | | $ | 1,907 | |
| Less: Purchase accounting impacts - Linde AG (c) | (198) | | | (237) | | | (389) | | | (477) | |
| Adjusted depreciation and amortization | $ | 744 | | | $ | 721 | | | $ | 1,463 | | | $ | 1,430 | |
| | | | | | | |
| Adjusted Other Income (Expense) - net | | | | | | | |
| Reported Other Income (Expense) - net | $ | 15 | | | $ | 2 | | | $ | 33 | | | $ | 60 | |
| Add: Purchase accounting impacts - Linde AG (c) | (4) | | | (1) | | | (12) | | | (7) | |
| Adjusted Other Income (Expense) - net | $ | 19 | | | $ | 3 | | | $ | 45 | | | $ | 67 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | | | | | |
| Adjusted Interest Expense - Net | | | | | | | |
| Reported interest expense - net | $ | 67 | | | $ | 70 | | | $ | 127 | | | $ | 135 | |
| Add: Purchase accounting impacts - Linde AG (c) | — | | | 1 | | | — | | | 3 | |
| Adjusted interest expense - net | $ | 67 | | | $ | 71 | | | $ | 127 | | | $ | 138 | |
| | | |
| | | |
| | | |
| | | | | | | |
| Adjusted Income Taxes (a) | | | | | | | |
| Reported income taxes | $ | 573 | | | $ | 508 | | | $ | 1,084 | | | $ | 971 | |
| Add: Purchase accounting impacts - Linde AG (c) | 46 | | | 56 | | | 90 | | | 116 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended June 30, | | Six Months Ended June 30, |
| 2025 | | 2024 | | 2025 | | 2024 |
| Add: Cost reduction program and other charges | — | | | — | | | 18 | | | 5 | |
| Total adjustments | 46 | | | 56 | | | 108 | | | 121 | |
| Adjusted income taxes | $ | 619 | | | $ | 564 | | | $ | 1,192 | | | $ | 1,092 | |
| | | | | | | |
| Adjusted Effective Tax Rate (a) | | | | | | | |
| Reported income before income taxes and equity investments | $ | 2,346 | | | $ | 2,163 | | | $ | 4,526 | | | $ | 4,243 | |
| | | |
| Add: Purchase accounting impacts - Linde AG (c) | 202 | | | 237 | | | 401 | | | 481 | |
| Add: Cost reduction program and other charges | — | | | — | | | 55 | | | — | |
| Total adjustments | 202 | | | 237 | | | 456 | | | 481 | |
| Adjusted income before income taxes and equity investments | $ | 2,548 | | | $ | 2,400 | | | $ | 4,982 | | | $ | 4,724 | |
| | | | | | | |
| Reported Income taxes | $ | 573 | | | $ | 508 | | | $ | 1,084 | | | $ | 971 | |
| Reported effective tax rate | 24.4 | % | | 23.5 | % | | 24.0 | % | | 22.9 | % |
| | | | | | | |
| Adjusted income taxes | $ | 619 | | | $ | 564 | | | $ | 1,192 | | | $ | 1,092 | |
| Adjusted effective tax rate | 24.3 | % | | 23.5 | % | | 23.9 | % | | 23.1 | % |
| | | | | | | |
| Income from Equity Investments | | | | | | | |
| Reported income from equity investments | $ | 33 | | | $ | 45 | | | $ | 71 | | | $ | 93 | |
| Add: Purchase accounting impacts - Linde AG (c) | 18 | | | 18 | | | 36 | | | 36 | |
| Adjusted income from equity investments | $ | 51 | | | $ | 63 | | | $ | 107 | | | $ | 129 | |
| | | | | | | |
| Adjusted Noncontrolling Interests | | | | | | | |
| Reported noncontrolling interests | $ | (40) | | | $ | (37) | | | $ | (74) | | | $ | (75) | |
| Add: Purchase accounting impacts - Linde AG (c) | (3) | | | (3) | | | (6) | | | (6) | |
| | | |
| | | |
| Adjusted noncontrolling interests | $ | (43) | | | $ | (40) | | | $ | (80) | | | $ | (81) | |
| | | | | | | |
| Adjusted Net Income - Linde plc (b) | | | | | | | |
| Reported net income | $ | 1,766 | | | $ | 1,663 | | | $ | 3,439 | | | $ | 3,290 | |
| | | |
| Add: Cost reduction program and other charges | — | | | — | | | 37 | | | (5) | |
| Add: Purchase accounting impacts - Linde AG (c) | 171 | | | 196 | | | 341 | | | 395 | |
| Total adjustments | 171 | | | 196 | | | 378 | | | 390 | |
| Adjusted net income - Linde plc | $ | 1,937 | | | $ | 1,859 | | | $ | 3,817 | | | $ | 3,680 | |
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| Quarter Ended June 30, | | Six Months Ended June 30, |
| 2025 | | 2024 | | 2025 | | 2024 |
| Adjusted Diluted EPS (b) | | | | | | | |
| Reported diluted EPS | $ | 3.73 | | | $ | 3.44 | | | $ | 7.24 | | | $ | 6.79 | |
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*Indicates a management contract or compensatory plan or arrangement.
SIGNATURE
Linde plc and Subsidiaries
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | | | | | | | | | | |
| | | Linde plc | |
| | |
| | (Registrant) | |
| | |
Date: August 1, 2025 | | By: /s/ Kelcey E. Hoyt | |
| | |
| | Kelcey E. Hoyt | |
| | Chief Accounting Officer | |
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Annual report 2023 (10-K 2023-09-30)
Annual report 2025 (10-Q 2025-06-30)
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