Linde plc

What they do

Linde produces atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (hydrogen, helium, carbon dioxide, carbon monoxide, electronic gases, specialty gases, acetylene) through cryogenic and non-cryogenic air separation and other methods. It also designs and builds equipment for gas production and processing, including olefin plants, natural gas plants, and air separation plants. Distribution is via on-site, merchant (bulk liquid), and packaged (cylinder) methods, with major pipeline complexes primarily in the U.S. and China.

Revenue drivers

• Americas — Largest segment; Q2 2026 sales of $4,083 million, up 7% YoY, with underlying growth driven by higher pricing and volumes in electronics and manufacturing.
• APAC — Q2 2026 sales of $1,870 million, up 13% YoY, with underlying sales up 8% on volumes from electronics and chemicals & energy, plus project start-ups.
• EMEA — Q2 2026 sales of $2,303 million, up 7% YoY, with underlying sales up 1% from pricing, partly offset by lower volumes in manufacturing.
• Linde Engineering — Q2 2026 sales of $625 million, up 13% YoY; order intake $871 million and third-party equipment backlog $3.0 billion.

Recent performance

In Q2 2026, Linde reported sales of $9,289 million, up 9% YoY, with underlying sales up 4% (2% price, 2% volume). Operating profit was $2,554 million (27.5% margin), and adjusted operating profit was $2,744 million (29.5% margin). Diluted EPS was $4.15, up 11% YoY; adjusted EPS was $4.50, up 10%. Operating cash flow was $2,271 million, up 3%, and free cash flow after capex of $1,438 million was $833 million.

Strategy

Linde focuses on long-term contracts and pass-through of energy costs to maintain stable cash flows. The company is investing in project backlog, including a record $8.1 billion in sale-of-gas backlog, primarily from electronics supply contracts. It continues to develop low-carbon and renewable hydrogen technologies, including blue (from methane with carbon capture) and green (via electrolysis) hydrogen. Management emphasizes productivity initiatives, price attainment, and high-quality future growth projects across geographies.

Risks

• Economic downturn — A broad decline in economic conditions in the more than 80 countries served could reduce demand and cause contract terminations or project delays, impacting cash flows and potentially requiring asset impairments.
• Energy cost volatility — Energy is the largest production and distribution cost; although contracts have escalation and pass-through clauses, these may not fully mitigate cost variability, affecting profitability.
• Customer cyclicality — Many customers are in cyclical industries such as chemicals and energy and metals and mining, which can lead to demand downturns and utilization reductions.
• Global political uncertainty — Political and economic uncertainty can reduce customer investment activity, adversely affecting business and financial performance.

Outlook

For Q3 2026, management expects adjusted EPS of $4.45 to $4.55, up 6% to 8% YoY, with no expected FX impact. Full-year 2026 adjusted EPS guidance is $17.70 to $17.90, representing 8% to 9% growth assuming 1% favorable currency. Capital expenditures for 2026 are expected to be $5.5 billion to $6.0 billion to support growth and the record $8.1 billion sale-of-gas backlog. Management notes robust customer proposal activity, particularly in electronics, which supports further backlog growth.