Industrial gases giant Linde has reported a solid start to 2026, delivering higher sales, stronger earnings, and improved cash generation in the first quarter, even as global conditions remained challenging.

 

The company posted first-quarter sales of $8.8 billion, up 8% year over year, with underlying growth of 3% driven by pricing gains and rising volumes from project start-ups. Currency effects added a 5% boost.

 

Net income rose to $1.86 billion. On an adjusted basis, net income reached $2.02 billion, with adjusted EPS up 10% to $4.33.

Operating performance remained robust. 

 

Adjusted operating profit increased 8% to $2.63 billion, with margins holding at a strong 30.0%. Operating cash flow rose 4% to $2.24 billion, while free cash flow came in at $898 million after capital spending of $1.34 billion.

 

Chief Executive Officer Sanjiv Lamba said, “Linde employees delivered another solid quarter with 10% EPS growth, 30% operating margin and 24% return on capital under increasingly challenging global conditions. These results underscore the resiliency of our operating model, discipline of capital allocation and perseverance of management actions.”

 

He added, “Looking ahead, I’m confident the Linde team will continue to create shareholder value in any environment.”

 

For the full year, Linde reiterated guidance for adjusted EPS of $17.60 to $17.90, implying growth of 7% to 9%, and expects capital expenditures of $5.0 billion to $5.5 billion to support growth projects and maintenance needs.

 

Regional performance mixed but resilient

In the Americas, sales rose 10% to $4.03 billion, driven by pricing and volume growth across electronics, manufacturing, and metals and mining. Operating profit margin improved to 31.6%.

 

Asia Pacific (APAC) delivered the strongest revenue growth, with sales up 11% to $1.70 billion, fueled by electronics and energy demand and project start-ups. However, margins slipped 130 basis points to 28.0%.

Europe, Middle East & Africa (EMEA) posted sales of $2.17 billion, up 7%, though underlying volumes declined. Despite that, operating margins improved to 36.1%.

 

Linde Engineering saw weaker activity, with sales down 8% to $517 million. Order intake reached $640 million, while backlog stood at $2.8 billion.

 

For the second quarter, Linde expects adjusted EPS between $4.40 and $4.50, representing growth of 7% to 9% on a currency-adjusted basis.

 

With steady earnings growth, strong cash flow, and disciplined capital returns, Linde enters the remainder of 2026 with momentum—despite uneven regional demand and softer engineering activity.