NASDAQ$LIN

Linde PLC · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Linde's Q2 2024 results reflected EPS growth, increased ROC, and expanded operating margins despite a challenging macroeconomic environment.

Linde reported a 1% increase in sales to $8.3 billion and an 8% increase in EPS to $3.44. Adjusted EPS was $3.85, up 8% year-over-year. The adjusted operating profit margin reached 29.3%, a 140 basis point increase. The company reaffirmed its full-year adjusted EPS guidance of $15.40 - $15.60, representing 9% to 11% growth year-over-year excluding FX.

  • Sales reached $8.3 billion, up 1%, with underlying sales up 3%.
  • Operating profit was $2.2 billion, with adjusted operating profit at $2.4 billion, up 6%.
  • Adjusted operating profit margin increased by 140 basis points to 29.3%.
  • EPS was $3.44, up 8%, and adjusted EPS was $3.85, also up 8% year-over-year.

Headline financials

Total Revenue

$8.27B

Previous: $8.2B+0.8%
EPS

$3.44

Previous: $3.57-3.6%
Operating Margin

29.3%

Previous: 27.9%+5.0%
Capital Expenditures

-$2.18B

Previous: -$1.69B-29.2%
Free Cash Flow

-$518M

Previous: -$113M-358.4%
Net Income

$1.66B

Previous: $1.58B+5.6%
Operating Income

$2.18B

Previous: $2.01B+8.6%
Gross Profit

-$4.25B

Previous: -$4.32B+1.5%
Cash & Equivalents

$4.63B

Previous: $3.36B+37.8%
Total Assets

$80.2B

Previous: $78.7B+1.9%
R&D Expense

$36M

No prior period

Revenue & EPS history

Linde · Revenue · Quarterly

$8.27B

Q2 2024+0.8%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Linde · $7.37B total across 3 segments · Q3 2023

  • Americas
    $3.63B
  • EMEA
    $2.11B
  • APAC
    $1.64B

Forward guidance

Linde expects adjusted diluted earnings per share in the range of $3.82 to $3.92 for Q3 2024, representing a 5% to 8% increase versus the prior-year quarter. Full year 2024 adjusted diluted earnings per share is expected to be in the range of $15.40 to $15.60, up 8% to 10% versus prior year.

Tailwinds

  • Adjusted diluted EPS guidance for Q3 2024 is $3.82 to $3.92, up 5% to 8% versus prior year quarter.
  • Excluding a 1% estimated currency headwind, Q3 2024 adjusted diluted EPS is expected to increase by 6% to 9%.
  • Full year 2024 adjusted diluted EPS guidance is $15.40 to $15.60, up 8% to 10% versus prior year.
  • Excluding a 1% estimated currency headwind, full year 2024 adjusted diluted EPS is expected to increase by 9% to 11%.
  • Full-year capital expenditures are expected to be in the range of $4.0 billion to $4.5 billion to support growth and maintenance requirements.

Headwinds

  • Economic environment remains uncertain.
  • Q3 2024 adjusted diluted earnings per share includes an estimated currency headwind of 1%.
  • APAC sales were down 2% versus prior year driven by negative currency translation.
  • EMEA sales were down 3% versus prior year.
  • Second-quarter operating cash flow decreased 10% versus prior year driven primarily by engineering project prepayment timing.

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 2024

Historical avgQ2 2024

+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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