Linde today reported fourth-quarter 2024 net income of $1,725 million and diluted earnings per share of $3.60, up 12% and 14% respectively.  Excluding Linde AG purchase accounting impacts and other charges, adjusted net income was $1,899 million, up 8% versus prior year.  Adjusted earnings per share was $3.97, 11% above prior year or 13% when excluding currency translation impact.

Linde’s sales for the fourth quarter were $8,282 million, flat versus prior year or 2% above when excluding negative currency impact.  Compared to prior year, underlying sales increased 2% from price attainment and stable volumes. 

Fourth-quarter operating profit was $2,270 million.  Adjusted operating profit of $2,480 million was up 9% versus prior year led by higher price and continued productivity initiatives across all segments.  Adjusted operating profit margin of 29.9% was 250 basis points above prior year. 

Fourth-quarter operating cash flow of $2,809 million increased 3% versus prior year.  After capital expenditures of $1,250 million, free cash flow was $1,559 million.  During the quarter, the company returned $1,990 million to shareholders through dividends and stock repurchases, net of issuances. 

For full-year 2024, sales were $33.0 billion, flat versus 2023.  Compared to prior year, underlying sales increased 2% from 2% price attainment and stable volumes.  Operating profit was $8.6 billion and adjusted operating profit was $9.7 billion, 7% above prior year.  Adjusted operating profit margin was 29.5% of sales, 190 basis points higher than 2023.  Diluted earnings per share was $13.62 and adjusted diluted earnings per share was $15.51, up 9% versus prior year or 10% when excluding currency translation impact. 

In 2024, Linde generated strong operating cash flow of $9.4 billion.  The company invested $4.5 billion in capital expenditures and returned $7.1 billion to shareholders in the form of dividends and share buybacks, net of issuances. 

Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, “In 2024, the Linde team once again delivered industry leading results, including a 25.9% ROC, 29.5% operating margin and an EPS growth of 10% excluding currency.  The results were delivered despite the challenging environment, reflecting the resiliency of our model and the exceptional execution by our employees.  We also made significant progress in our clean energy strategy, signing our largest ever product supply agreement with a high-quality customer, supporting the $10 billion project backlog which will contribute to earnings growth for years to come.” 

Lamba continued, “As anticipated, global macro conditions have continued to weaken, especially foreign currency translation.  Regardless, I’m confident that with our disciplined capital allocation and focused management actions Linde will continue to deliver shareholder value.” 

For the full year 2025, the company expects adjusted diluted earnings per share to be in the range of $16.15 to $16.55, up 4% to 7% versus prior year or 8% to 11% when excluding estimated currency headwinds.  Full-year capital expenditures are expected to range between $5 billion and $5.5 billion to support operating and growth requirements, including the contractual sale of gas backlog.  For the first quarter 2025, adjusted earnings per share is expected to be in the range of $3.85 to $3.95, 3% to 5% above prior-year quarter or 7% to 9% when excluding 4% assumed unfavorable currency.