Linde reported second-quarter 2024 net income of US$ 1,663 million and diluted earnings per share of US$ 3.44, up 6% and 8% respectively. Excluding Linde AG purchase accounting impacts and other charges, adjusted net income was US$ 1,859 million, up 6% versus prior year. Adjusted earnings per share was US$ 3.85, 8% above prior year.

Linde’s sales for the second quarter were US$ 8,267 million, up 1% versus prior year. Compared to prior year, underlying sales increased 3% from price attainment as volume growth was flat.

Second-quarter operating profit was US$ 2,184 million. Adjusted operating profit of US$ 2,422 million was up 6% versus prior year led by higher price and continued productivity initiatives across all segments. Adjusted operating profit margin of 29.3% was 140 basis points above prior year.

Second-quarter operating cash flow of US$ 1,929 million decreased 10% versus prior year driven primarily by engineering project prepayment timing. After capital expenditures of US$ 1,133 million, free cash flow was US$ 796 million. During the quarter, the company returned US$ 2,100 million to shareholders through dividends and stock repurchases, net of issuances. 

Second-Quarter Highlights

* Sales US$ 8.3 billion, up 1%, underlying sales up 3%

* Operating profit $2.2 billion, adjusted operating profit US$ 2.4 billion, up 6%

* Operating profit margin 26.4%; adjusted operating profit margin 29.3%, up 140 basis points

* EPS US$ 3.44, up 8%; adjusted EPS $3.85, up 8% YoY

* Full-year 2024 adjusted EPS guidance of US$ 15.40 - $15.60 representing 9% to 11% growthyear-over-year excluding FX

Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, “Despite the challenging macro, the Linde team again delivered high-quality results, growing EPS 8%, increasing ROC to 25.7% and expanding operating margins 140 basis points, reaching 29.3%. This exemplifies our ability to continuously grow the integrated industrial gas model while developing and winning high-quality growth opportunities.”

Lamba continued, “Looking ahead, the economic environment remains uncertain. However, we are well positioned to win more than our fair share of high-quality projects and continue to create shareholder value.”

For the third quarter of 2024, Linde expects adjusted diluted earnings per share in the range of US$ 3.82 to $3.92, up 5% to 8% versus prior-year quarter or 6% to 9% when excluding 1% of estimated currency headwind.

For the full year 2024, the company expects adjusted diluted earnings per share to be in the range of US$ 15.40 to $15.60, up 8% to 10% versus prior year or 9% to 11% when excluding 1% of estimated currency headwind. Full-year capital expenditures are expected to be in the range of US$ 4.0 billion to US$ 4.5 billion to support growth and maintenance requirements including the US$ 4.7 billion contractual sale of gas project backlog.