• Revenue: $8.1 billion, flat compared to the prior year and down 2% sequentially.
• Operating Margin: Expanded by 120 basis points to 30.1%.
• Return on Capital (ROC): Maintained at 25.7%.
• Earnings Per Share (EPS): $3.95, a 5% increase over the prior year, or 8% excluding currency effects.
• Capital Expenditure (CapEx): $1.3 billion, split equally between base CapEx and project backlog.
• Operating Cash Flow: $2.2 billion, an 11% increase from the previous year.
• Dividend Growth: Annual dividend increased by 8%, marking 32 consecutive years of growth.
• Stock Repurchase: $1.1 billion worth of stock repurchased during the quarter.
• Project Backlog: $10 billion, with more than $7 billion in sale of gas projects.
• Second Quarter EPS Guidance: $3.95 to $4.05, representing 3% to 5% growth.
• Full Year EPS Guidance: $16.20 to $16.50, maintaining the original guidance midpoint.

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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

• Linde PLC (NASDAQ:LIN) achieved an 8% growth in APS XFX and expanded operating margins by 120 basis points to 30.1%.
• The company maintained an industry-leading return on capital (ROC) at 25.7%.
• Linde PLC (NASDAQ:LIN) has a strong backlog of $10 billion, with over $7 billion in sale of gas projects underpinned by long-term contracts.
• The company raised its annual dividend by 8%, marking 32 consecutive years of dividend growth.
• Linde PLC (NASDAQ:LIN) continues to see attractive acquisition opportunities, contributing 1% to sales growth through packaged gas tuck-ins in North America.

Negative Points

• Linde PLC (NASDAQ:LIN) experienced a 1% decline in volumes, primarily driven by seasonal factors and weaker trends in certain packaged gas markets.
• The company faces challenges from lower helium and rare gas prices, particularly impacting the APAC region.
• Industrial activity remains sluggish in most geographies, dragging down base volumes.
• The American segment is experiencing mixed results, with weakness in Canada and US package gases due to manufacturing uncertainty.
• Linde PLC (NASDAQ:LIN) anticipates more volatility in end market trends due to rapid changes in global trade policy.

Q & 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

Q: Can you help us understand the margin profile once volumes start to return, given the robust EBITDA margin performance despite lower volumes? A: The margins result from hard work on pricing and productivity. As volumes improve, margins will continue to grow, which has been proven over time. - Sanjiv Lamba, CEO

Q: How do you view the $50 billion opportunity around clean energy today, given changes in the world? A: The opportunity set around clean energy projects still looks attractive. We are about halfway through our $8 billion to $10 billion target over the next few years, with ongoing projects and potential expansions. We remain confident in reaching this target. - Sanjiv Lamba, CEO

Q: On your guidance, you lowered it by roughly $0.30 due to FX. Was this mainly due to weaker manufacturing in the Americas? A: The FX change was due to a weakening dollar, with the euro and sterling helping the most. Manufacturing in Q1 was softer due to weather events, but ended strong in March. We expect volumes in America to remain flattish for the year. - Matthew White, CFO

Q: Can you discuss the areas where you see the biggest commitments in your project backlog, either geographically or in terms of markets? A: We expect resilient end markets like electronics and food and beverage to grow. Geographically, Asia, particularly India, shows growth potential. We anticipate starting up $1 billion from the backlog this year and expect the backlog to remain strong. - Sanjiv Lamba, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.