Linde has reported a decline in fourth-quarter net income but delivered higher adjusted earnings, strong cash flow and a confident outlook for 2026, underscoring the industrial gases giant’s ability to grow through pricing, productivity and disciplined capital allocation.
The company said fourth-quarter 2025 net income fell 11% to $1.53 billion, with diluted earnings per share down 9% to $3.26. Excluding purchase accounting and restructuring impacts, however, adjusted net income rose 4% to $1.97 billion, while adjusted diluted EPS climbed 6% to $4.20.
Quarterly sales increased 6% to $8.76 billion, driven by higher pricing, project start-ups and acquisitions. Underlying sales rose 3%, reflecting 2% price attainment and 1% volume growth.
Operating profit for the quarter was $2.02 billion. On an adjusted basis, operating profit rose 4% to $2.59 billion, supported by pricing gains and productivity initiatives across all segments. Adjusted operating margin was 29.5%.
Cash generation remained a standout. Operating cash flow increased 8% to $3.03 billion, while free cash flow totaled $1.57 billion after $1.46 billion in capital expenditures. Linde returned $2.09 billion to shareholders through dividends and share repurchases during the quarter.
For the full year 2025, Linde posted sales of $34.0 billion, up 3% from 2024, with growth driven by pricing and bolt-on acquisitions. Operating profit reached $8.9 billion, while adjusted operating profit increased 4% to $10.1 billion. Adjusted operating margin expanded to 29.8%, and adjusted diluted EPS rose 6% to $16.46.
Operating cash flow for the year totaled $10.4 billion. The company invested $5.3 billion in capital expenditures and returned $7.4 billion to shareholders.
Chief Executive Officer Sanjiv Lamba pointed to the company’s consistency and scale as key drivers of performance.
“Linde delivered another year of resilient performance, with operating profit, cash flow and backlog each exceeding $10 billion. Operating margins expanded to 29.8%, ROC reached 24.2% and EPS grew 6%. These results underscore the strength of our operating model and the exceptional execution by the Linde team worldwide,” Lamba said.
Looking ahead, Lamba said the company remains well positioned to grow even amid macroeconomic uncertainty.
“With disciplined capital allocation, strong network density and an increasing project pipeline, Linde is well positioned to capture high-quality wins in 2026 and continue to create shareholder value regardless of macroeconomic uncertainties,” he said.
For full-year 2026, Linde expects adjusted diluted earnings per share of $17.40 to $17.90, representing growth of 6% to 9% year over year, or 5% to 8% excluding currency effects. Capital expenditures are projected at $5.0 billion to $5.5 billion to support operating growth and contractual gas backlog. First-quarter 2026 adjusted EPS is expected to range from $4.20 to $4.30.
In the Americas, fourth-quarter sales rose 8% to $3.88 billion, with underlying growth driven by higher pricing and volumes, particularly in electronics. Operating profit was $1.20 billion, representing 30.9% of sales.
Asia Pacific sales increased 3% to $1.73 billion, supported by volume growth in electronics and chemicals and energy markets. Operating profit totaled $502 million, or 29.1% of sales.
In EMEA, sales grew 6% to $2.18 billion, though underlying sales declined due to lower volumes in chemicals and energy. Operating profit reached $772 million, or 35.4% of sales.
Linde Engineering posted sales of $615 million, down 2% from a year earlier. Operating profit was $103 million, and quarterly order intake totaled $434 million.
