NASDAQ$LIN

Linde PLC · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Linde's second-quarter performance in 2023 was marked by sales of $8.2 billion, a 3% decrease year-over-year, but underlying sales grew by 6%.

Linde reported a decrease in sales by 3% year-over-year, but underlying sales increased by 6%. The adjusted EPS was up 15% YoY. The company increased its full-year 2023 adjusted EPS guidance to $13.80 - $14.00, representing 12% to 14% growth year-over-year.

  • Sales were $8.2 billion, down 3% YoY, but underlying sales were up 6%.
  • Operating profit was $2.0 billion, with adjusted operating profit at $2.3 billion, up 15%.
  • The operating profit margin was 24.5%, and the adjusted operating profit margin was 27.9%, up 440 basis points.
  • EPS was $3.19, and adjusted EPS was $3.57, up 15% YoY.

Headline financials

Total Revenue

$8.2B

Previous: $8.46B-3.0%
EPS (adj)

$3.57

Previous: $3.10+15.2%
Operating Margin

27.9%

Previous: 23.5%+18.7%
Capital Expenditures

-$1.69B

Previous: -$1.48B-14.4%
Free Cash Flow

-$113M

Previous: -$1.1B+89.8%
Net Income

$1.58B

Previous: $372M+323.4%
Operating Income

$2.01B

Previous: $589M+241.4%
Gross Profit

-$4.32B

Previous: -$4.94B+12.6%
Cash & Equivalents

$3.36B

Previous: $3.66B-8.2%
Total Assets

$78.7B

Previous: $77.9B+1.1%
Stock-Based Comp

$36M

Previous: $17M+111.8%

Revenue & EPS history

Linde · Revenue · Quarterly

$8.2B

Q2 2023-3%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Linde · $7.88B total across 4 segments · Q2 2023

  • Americas
    $3.54B+1.0%
  • EMEA
    $2.16B+1.0%
  • APAC
    $1.68B+2.0%
  • Linde Engineering
    $495M

Forward guidance

For the third quarter of 2023, Linde expects adjusted diluted earnings per share in the range of $3.48 to $3.58, up 12% to 15% versus prior-year quarter. For the full year 2023, the company expects adjusted diluted earnings per share to be in the range of $13.80 to $14.00, up 12% to 14% versus prior year.

Tailwinds

  • Adjusted diluted earnings per share are expected to increase by 12% to 15% versus prior-year quarter for Q3 2023.
  • Adjusted diluted earnings per share are expected to be in the range of $3.48 to $3.58 for Q3 2023.
  • Full-year 2023 adjusted diluted earnings per share are expected to increase by 12% to 14% versus prior year.
  • Full-year 2023 adjusted diluted earnings per share are expected to be in the range of $13.80 to $14.00.
  • Full-year capital expenditures are expected to be in the range of $3.5 billion to $4.0 billion to support growth and maintenance requirements including the $4.4 billion contractual sale of gas project backlog.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.3%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+3.0%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+6.4%

Q3 2020

Best reaction

-4.3%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%+0.1%-0.7%
Q4 2025-2.9%-2.7%+2.4%
Q3 2025-4.2%-2.7%-4.6%
Q2 2025-0.2%+2.4%+3.9%
Q1 2025-1.1%-1.4%+3.2%
Q4 2024+1.5%+1.6%+3.3%
Q3 2024-3.4%-3.9%-2.6%
Q2 2024-2.2%-2.5%+5.5%
Q1 2024-4.3%-2.9%-1.6%
Q4 2023+4.0%+4.7%+16.1%
Q3 2023+1.7%+4.9%+13.7%
Q2 2023+0.1%+0.1%-1.7%
Q1 2023+1.2%+1.4%-2.4%
Q4 2022+3.5%+2.8%+7.1%
Q3 2022+2.4%+1.1%+16.8%
Q2 2022+4.0%+2.5%-1.4%
Q1 2022+1.6%+2.3%+7.4%
Q4 2021-3.1%-0.7%-7.7%
Q3 2021+0.1%+2.7%+0.5%
Q2 2021+0.3%+2.1%+5.0%
Q1 2021+2.5%+2.4%+2.8%
Q4 2020+3.3%+1.4%-0.6%
Q3 2020+6.4%+11.4%+6.5%
Q2 2020+0.2%-0.4%+3.6%
Q1 2020+5.3%+2.3%+23.7%
Q4 2019+2.5%+2.9%-18.7%
Q3 2019+2.7%+3.7%+3.8%
Q2 2019+0.6%+2.3%-0.1%
Q1 2019+4.2%+4.3%+15.4%
Q4 2018-1.6%-3.7%+2.0%
Q4 2017-1.6%-3.7%+2.0%
Q4 2016-1.6%-3.7%+2.0%
Q2 2018-1.6%-3.7%+2.0%
Q3 2018-3.7%-7.2%-7.6%
Q1 2018-1.5%+1.7%+5.7%
Q1 2017+0.0%-2.7%+3.1%
Q2 2017-1.4%-0.4%+4.7%
Q3 2017-1.4%-0.4%+4.7%
Q3 2016+2.0%+1.3%-1.2%
Q2 2016+2.5%+0.8%+5.3%
Q1 2016+0.2%
Q4 2015-1.5%
Q3 2015+0.9%
Q2 2015-0.0%
Q1 2015-0.4%
Q4 2014-1.1%
Q3 2014+0.7%
Q2 2014-0.8%
Q1 2014-0.7%
Q4 2013-0.4%
Q3 2013-0.7%
Q2 2013+1.4%
Q1 2013-0.4%
Q4 2012+4.3%
Q3 2012+0.1%
Q2 2012-0.4%
Q1 2012+0.3%
Q4 2011+0.9%
Q3 2011-3.8%
Q2 2011+1.0%
Q1 2011+1.0%
Q4 2010+0.4%
Q3 2010-0.1%
Q2 2010-0.8%
Q1 2010+1.3%

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