Linde : 2025 Q1 Press Release

Published: 2025-05-01 05:36:10 ET LIN

Published on 05/01/2025 at 05:36

First-Quarter Highlights

Sales $8.1 billion, flat YoY, underlying sales up 1%

Operating profit $2.2 billion, adjusted operating profit $2.4 billion, up 4%

Operating profit margin 26.9%; adjusted operating profit margin 30.1%, up 120 basis points

EPS $3.51, up 5%; adjusted EPS $3.95, up 5% YoY or 8% ex. FX

First-quarter operating cash flow of $2.2 billion, up 11% versus prior year

Full-year 2025 adjusted EPS guidance of $16.20 - $16.50 representing 4% to 6%, or 6% to 8% ex. FX, growth year-over-year

Woking, UK, May 1, 2025 - Linde plc (Nasdaq: LIN) today reported first-quarter 2025 net income of $1,673 million and diluted earnings per share of $3.51, up 3% and 5% respectively. Excluding Linde AG purchase accounting impacts and other charges, adjusted net income was $1,880 million, up 3% versus prior year. Adjusted earnings per share was $3.95, 5% above prior year.

Linde's sales for the first quarter were $8,112 million, flat versus prior year. Compared to prior year, underlying sales increased 1% from 2% price attainment partially offset by 1% lower volumes largely driven by the manufacturing and metals & mining end markets.

First-quarter operating profit was $2,184 million. Adjusted operating profit of $2,438 million was up 4% versus prior year led by higher price and continued productivity initiatives across all segments. Adjusted operating profit margin of 30.1% was 120 basis points above prior year.

First-quarter operating cash flow of $2,161 million increased 11% versus prior year. After capital expenditures of $1,270 million, free cash flow was $891 million. During the quarter, the company returned $1,808 million to shareholders through dividends and stock repurchases, net of issuances.

Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, "While first quarter macroeconomic headwinds largely played out as anticipated, Linde employees delivered another resilient performance by expanding operating margins 120 basis points to 30.1%, growing EPS (excluding FX) by 8%, and maintaining industry leading return on capital of 25.7%. These results were achieved through disciplined capital allocation and proactive management actions."

Lamba continued, "Looking forward, while we remain cautious on the economic outlook, I'm confident the Linde business model can continue to create shareholder value in any environment."

For the second quarter of 2025, Linde expects adjusted diluted earnings per share in the range of $3.95 to $4.05, up 3% to 5% versus prior-year quarter or 5% to 7% when excluding 2% of estimated currency headwind.

For the full year 2025, the company expects adjusted diluted earnings per share to be in the range of $16.20 to $16.50, up 4% to 6% versus prior year or 6% to 8% when excluding 2% of estimated currency headwind. Full-year capital expenditures are expected to be in the range of $5.0 billion to $5.5 billion to support growth and maintenance requirements including the

$7.0 billion contractual sale of gas project backlog.

Page 1/10

First-Quarter 2025 Results by Segment

Americas sales of $3,666 million were 3% higher versus prior-year quarter. Compared with first quarter 2024, underlying sales increased 4% driven by 3% higher pricing and 1% higher volumes, primarily in the electronics, chemicals & energy end markets. Operating profit of $1,137 million was 31.0% of sales, 40 basis points above prior year.

APAC (Asia Pacific) sales of $1,539 million were down 3% versus prior year. Compared with first quarter 2024, underlying sales were lower by 1% driven by stable pricing offset by 1% lower volumes, primarily in the metals & mining and manufacturing end markets. Operating profit of $451 million was 29.3% of sales, 120 basis points above prior year.

EMEA (Europe, Middle East & Africa) sales of $2,031 million were down 3% versus prior year. Compared with first quarter 2024, underlying sales were 1% lower, driven by 2% higher pricing more than offset by 3% lower volumes, primarily in the metals & mining and chemicals & energy end markets. Operating profit of $722 million was 35.5% of sales, 260 basis points above prior year.

Linde Engineering sales were $565 million, 5% higher versus prior year, and operating profit was $114 million or 20.2% of sales. Order intake for the quarter was $516 million and third-party sale of equipment backlog was $3.3 billion.

Earnings Call

A teleconference on Linde's first-quarter 2025 results is being held today at 9:00 am EDT.

Live conference call

US Toll-Free Dial-In Number: 1 888 770 7292

UK Toll-Free Dial-In Number: 0800 358 0970

Access code: 6877110

Live webcast (listen-only)

https://www.linde.com/investors/financial-reports

Materials to be used in the teleconference are also available on the website.

Linde is a leading global industrial gases and engineering company with 2024 sales of $33 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet.

The company serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases and technologies are used in countless applications including production of clean hydrogen and carbon capture systems critical to the energy transition, life-saving medical oxygen and high-purity & specialty gases for electronics. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.

For more information about the company and its products and services, please visit https://www.linde.com

Adjusted amounts, free cash flow and return on capital are non-GAAP measures. See the attachments for a summary of non-GAAP reconciliations and calculations for adjusted amounts.

Attachments: Summary Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information and Appendix: Non-GAAP Measures and Reconciliations.

Page 2/10

*Note: We are providing adjusted earnings per share ("EPS") guidance for 2025. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.

Forward-looking Statements

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. They are based on management's reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances, including trade conflicts and tariffs; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics, pandemics such as COVID-19 and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of changes in pension plan liabilities; the impact of tax, environmental, healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of investigations, litigation and regulatory proceedings; the impact of potential unusual or non-recurring items; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; the impact of information technology system failures, network disruptions and breaches in data security; and the effectiveness and speed of integrating new acquisitions into the business. These risks and uncertainties may cause future results or circumstances to differ materially from adjusted projections, estimates or other forward-looking statements.

Linde plc assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A. Risk Factors in Linde plc's Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on February 26, 2025 which should be reviewed carefully.

Please consider Linde plc's forward-looking statements in light of those risks.

Page 3/10

The following adjusted amounts are Non-GAAP measures and are intended to supplement investors' understanding of the company's financial statements by providing measures which investors, financial analysts and management use to help evaluate the company's operating performance. Items which the company does not believe to be indicative of ongoing business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. See the "NON GAAP MEASURES AND RECONCILIATIONS" starting on page 9 for additional details relating to the adjustments.

(Millions of dollars, except per share

amounts) Sales Operating Profit Net Income Diluted EPS

Quarter Ended March 31,

2025

2024

2025

2024

2025

2024

2025

2024

Reported GAAP Amounts

$ 8,112

$ 8,100

$ 2,184

$ 2,095

$ 1,673

$ 1,627

$ 3.51

$ 3.35

Cost reduction program and other charges (a)

(5)

0.08

(0.01)

Purchase accounting impacts - Linde AG (b)

199

246

170

199

0.36

0.41

Total adjustments

254

246

207

194

0.44

0.40

Adjusted amounts

$ 8,112

$ 8,100

$ 2,438

$ 2,341

$ 1,880

$ 1,821

$ 3.95

$ 3.75

2025 Cost reduction program and other charges are primarily related to severance.

To adjust for purchase accounting impacts related to the merger.

Quarter Ended March 31,

(Millions of dollars, except per share data)

2025

2024

Sales

$ 8,112

$ 8,100

Cost of sales

4,157

4,216

Selling, general and administrative

786

860

Depreciation and amortization

910

949

Research and development

Cost reduction program and other charges

Other income (expense) - net

Operating Profit

2,184

2,095

Interest expense - net

Net pension and OPEB cost (benefit), excluding service cost

(56)

(50)

Income Before Income Taxes and Equity Investments

2,180

2,080

Income taxes

511

463

Income Before Equity Investments

1,669

1,617

Income from equity investments

Income (Including Noncontrolling Interests)

1,707

1,665

Less: noncontrolling interests

(34)

(38)

Net Income - Linde plc

$ 1,673

$ 1,627

Per Share Data - Linde plc Shareholders

Basic earnings per share

$ 3.53

$ 3.38

Diluted earnings per share

$ 3.51

$ 3.35

Cash dividends per share

$ 1.50

$ 1.39

Weighted Average Shares Outstanding (000's):

Basic shares outstanding (000's)

473,303

481,949

Diluted shares outstanding (000's)

476,262

485,592

Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP.

‌LINDE PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET

(UNAUDITED)

(Millions of dollars)

March 31,

2025

December 31,

2024

Assets

Cash and cash equivalents

$ 5,294

$ 4,850

Accounts receivable - net

4,950

4,622

Contract assets

293

263

Inventories

1,984

1,946

Prepaid and other current assets

1,076

1,264

Total Current Assets

13,597

12,945

Property, plant and equipment - net

25,710

24,775

Goodwill

26,507

25,937

Other intangibles - net

11,561

11,330

Other long-term assets

5,329

5,160

Total Assets

$ 82,704

$ 80,147

Liabilities and Equity

Accounts payable

$ 2,446

$ 2,507

Short-term debt

4,465

4,223

Current portion of long-term debt

1,824

2,057

Contract liabilities

1,196

1,194

Other current liabilities

4,554

4,563

Total Current Liabilities

14,485

14,544

Long-term debt

17,608

15,343

Other long-term liabilities

11,148

10,772

Total Liabilities

$ 43,241

$ 40,659

Redeemable noncontrolling interests

Linde plc Shareholders' Equity

Ordinary shares

Additional paid-in capital

39,408

39,603

Retained earnings

13,545

12,634

Accumulated other comprehensive income (loss)

(6,768)

(6,894)

Less: Treasury shares, at cost

(8,154)

(7,252)

Total Linde plc Shareholders' Equity

38,032

38,092

Noncontrolling interests

1,418

1,383

Total Equity

$ 39,450

$ 39,475

Total Liabilities and Equity

$ 82,704

$ 80,147

Quarter Ended March 31,

(Millions of dollars)

2025

2024

Operations

Net income - Linde plc

$ 1,673

$ 1,627

Add: Noncontrolling interests

Net income (including noncontrolling interests)

1,707

1,665

Adjustments to reconcile net income to net cash provided by operating activities:

Cost reduction program and other charges (a)

(55)

Depreciation and amortization

910

949

Accounts receivable

(230)

(361)

Contract assets and liabilities, net

(65)

(50)

Inventory

(27)

Payables and accruals

(209)

(65)

Pension contributions

(5)

(11)

Deferred income taxes and other

(91)

Net cash provided by (used for) operating activities

2,161

1,954

Investing

Capital expenditures

(1,270)

(1,048)

Acquisitions, net of cash acquired

(112)

Divestitures, net of cash divested and asset sales

Net cash provided by (used for) investing activities

(1,369)

(1,041)

Financing

Debt increase (decrease) - net

1,493

1,215

Issuances of ordinary shares

Purchases of ordinary shares

(1,111)

(1,041)

Cash dividends - Linde plc shareholders

(708)

(669)

Noncontrolling interest transactions and other

(73)

(189)

Net cash provided by (used for) financing activities

(388)

(668)

Effect of exchange rate changes on cash and cash equivalents

(61)

Change in cash and cash equivalents

444

184

Cash and cash equivalents, beginning-of-period

4,850

4,664

Cash and cash equivalents, end-of-period

$ 5,294

$ 4,848

(a) 2025 Cost reduction program and other charges are primarily related to severance. Related cash outflows were $37 million and $55 million for the quarters ended March 31, 2025 and 2024, respectively.

Quarter Ended March 31,

(Millions of dollars)

2025

2024

Sales

Americas

$ 3,666

$ 3,560

EMEA

2,031

2,091

APAC

1,539

1,591

Engineering

565

539

Other

311

319

Total segment sales

$ 8,112

$ 8,100

Operating Profit

Americas

$ 1,137

$ 1,088

EMEA

722

687

APAC

451

447

Engineering

114

100

Other

Segment operating profit

2,438

2,341

Cost reduction program and other charges

(55)

Purchase accounting impacts - Linde AG

(199)

(246)

Total operating profit

$ 2,184

$ 2,095

The following Non-GAAP measures are intended to supplement investors' understanding of the company's financial information by providing measures which investors, financial analysts and management use to help evaluate the company's operating performance and liquidity. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures.

2025

2024

(Millions of dollars)

Adjusted Operating Profit and Operating Margin

Reported operating profit

$ 2,184

$ 2,270

$ 2,086

$ 2,184

$ 2,095

Add: Cost reduction program and other charges

145

Add: Purchase accounting impacts - Linde AG (c)

199

210

246

238

246

Total adjustments

254

210

391

238

246

Adjusted operating profit

$ 2,438

$ 2,480

$ 2,477

$ 2,422

$ 2,341

Reported percentage change

4 %

Adjusted percentage change

4 %

Reported sales

$ 8,112

$ 8,282

$ 8,356

$ 8,267

$ 8,100

Reported operating margin

26.9 %

27.4 %

25.0 %

26.4 %

25.9 %

Adjusted operating margin

30.1 %

29.9 %

29.6 %

29.3 %

28.9 %

Adjusted Depreciation and amortization

Reported depreciation and amortization

$ 910

$ 913

$ 960

$ 958

$ 949

Less: Purchase accounting impacts - Linde AG (c)

(191)

(206)

(240)

(237)

(240)

Adjusted depreciation and amortization

$ 719

$ 707

$ 720

$ 721

$ 709

Adjusted Other Income (Expense) - net

Reported Other Income (Expense) - net

$ 18

$ 74

$ 51

$ 2

$ 58

Add: Purchase accounting impacts - Linde AG (c)

(8)

(4)

(6)

(1)

(6)

Adjusted Other Income (Expense) - net

$ 26

$ 78

$ 57

$ 3

$ 64

Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost

Reported net pension and OPEB cost (benefit), excluding service cost

$ (56)

$ (46)

$ (45)

$ (49)

$ (50)

Add: Pension settlement charges

(4)

(6)

Adjusted Net Pension and OPEB cost (benefit), excluding service costs

$ (56)

$ (50)

$ (51)

$ (49)

$ (50)

Adjusted Interest Expense - Net

Reported interest expense - net

$ 60

$ 53

$ 68

$ 70

$ 65

Add: Purchase accounting impacts - Linde AG (c)

Adjusted interest expense - net

$ 60

$ 53

$ 68

$ 71

$ 67

Adjusted Income Taxes (a)

Reported income taxes

$ 511

$ 533

$ 498

$ 508

$ 463

Add: Purchase accounting impacts - Linde AG (c)

Add: Pension settlement charges

Add: Cost reduction program and other charges

Total adjustments

Adjusted income taxes

$ 573

$ 588

$ 580

$ 564

$ 528

2025

2024

(Millions of dollars)

Adjusted Effective Tax Rate (a)

Reported income before income taxes and equity investments

$ 2,180

$ 2,263

$ 2,063

$ 2,163

$ 2,080

Add: Pension settlement charge

Add: Purchase accounting impacts - Linde AG (c)

199

210

246

237

244

Add: Cost reduction program and other charges

145

Total adjustments

254

214

397

237

244

Adjusted income before income taxes and equity investments

$ 2,434

$ 2,477

$ 2,460

$ 2,400

$ 2,324

Reported Income taxes

$ 511

$ 533

$ 498

$ 508

$ 463

Reported effective tax rate

23.4%

23.6%

24.1%

23.5%

22.3%

Adjusted income taxes

$ 573

$ 588

$ 580

$ 564

$ 528

Adjusted effective tax rate

23.5%

23.7%

23.6%

23.5%

22.7%

Income from Equity Investments

Reported income from equity investments

$ 38

$ 39

$ 38

$ 45

$ 48

Add: Purchase accounting impacts - Linde AG (c)

Adjusted income from equity investments

$ 56

$ 57

$ 56

$ 63

$ 66

Adjusted Noncontrolling Interests

Reported noncontrolling interests

$ (34)

$ (44)

$ (53)

$ (37)

$ (38)

Add: Purchase accounting impacts - Linde AG (c)

(3)

Add: Cost reduction program and other charges

Total adjustments

(3)

Adjusted noncontrolling interests

$ (37)

$ (47)

$ (40)

$ (41)

Adjusted Net Income - Linde plc (b)

Reported net income

$ 1,673

$ 1,725

$ 1,550

$ 1,663

$ 1,627

Add: Pension settlement charge

Add: Cost reduction program and other charges

(10)

140

(5)

Add: Purchase accounting impacts - Linde AG (c)

170

181

201

196

199

Total adjustments

207

174

346

196

194

Adjusted net income - Linde plc

$ 1,880

$ 1,899

$ 1,896

$ 1,859

$ 1,821

2025

2024

(Millions of dollars)

Adjusted Diluted EPS (b)

Reported diluted EPS

$ 3.51

$ 3.60

$ 3.22

3.44

$ 3.35

Add: Pension settlement charge

0.01

Add: Cost reduction program and other charges

0.08

(0.02)

0.29

(0.01)

Add: Purchase accounting impacts - Linde AG (c)

0.36

0.38

0.42

0.41

Total adjustments

0.44

0.37

0.72

0.41

0.40

Adjusted diluted EPS

$ 3.95

$ 3.97

$ 3.94

3.85

$ 3.75

Reported percentage change

5 %

Adjusted percentage change

5 %

Second Quarter 2025

Full Year 2025

Adjusted Diluted EPS Guidance (d)

Low End High End

2025 Adjusted Guidance

$ 3.95

$ 4.05

$ 16.20

$ 16.50

Adjusted percentage changes versus 2024 adjusted diluted EPS

3 %

5 %

4 %

6 %

Add: Estimated currency headwind/(tailwind)

2 %

Adjusted percentage change excluding currency

5 %

7 %

6 %

8 %

Adjusted EBITDA and % of Sales

Net Income - Linde plc

$ 1,673

$ 1,725

$ 1,550

$ 1,663

$ 1,627

Add: Noncontrolling interests

Add: Net pension and OPEB cost (benefit), excluding service cost

(56)

(46)

(45)

(49)

(50)

Add: Interest expense

Add: Income taxes

511

533

498

508

463

Add: Depreciation and amortization

910

913

960

958

949

EBITDA

3,132

3,222

3,084

3,187

3,092

Add: Cost reduction program and other charges

145

Add: Purchase accounting impacts - Linde AG (c)

Total adjustments

169

Adjusted EBITDA

$ 3,213

$ 3,244

$ 3,253

$ 3,206

$ 3,116

Reported sales

$ 8,112

$ 8,282

$ 8,356

$ 8,267

$ 8,100

% of sales

EBITDA

38.6%

38.9%

36.9%

38.6%

38.2%

Adjusted EBITDA as a % of Sales

39.6%

39.2%

38.9%

38.8%

38.5%

The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.

Net of income taxes which are shown separately in "Adjusted Income Taxes and Effective Tax Rate".

The company believes that its non-GAAP measures excluding Purchase accounting impacts - Linde AG are useful to investors because: (i) the 2018 business combination was a merger of equals in an all-stock merger transaction, with no cash consideration, (ii) the company is managed on a geographic basis and the results of certain geographies are more heavily impacted by purchase accounting than others, causing results that are not comparable at the reportable segment level, therefore, the impacts of purchasing accounting adjustments to each segment vary and are not comparable within the company and when compared to other companies in similar regions, (iii) business management is evaluated and variable compensation is determined based on results excluding purchase accounting impacts, and; (iv) it is important to investors and analysts to understand the purchase accounting impacts to the financial statements.

A summary of each of the adjustments made for Purchase accounting impacts - Linde AG are as follows:

Adjusted Operating Profit and Margin: The purchase accounting adjustments for the periods presented relate primarily to depreciation and amortization related to the fair value step up of fixed assets and intangible assets (primarily customer related) acquired in the merger and the allocation of fair value step-up for ongoing Linde AG asset disposals (reflected in Other Income/(Expense)).

Adjusted Interest Expense - Net: Relates to the amortization of the fair value of debt acquired in the merger.

Adjusted Income Taxes and Effective Tax Rate: Relates to the current and deferred income tax impact on the adjustments discussed above. The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.

Adjusted Income from Equity Investments: Represents the amortization of increased fair value on equity investments related to depreciable and amortizable assets.

Adjusted Noncontrolling Interests: Represents the noncontrolling interests' ownership portion of the adjustments described above determined on an entity by entity basis.

We are providing adjusted earnings per share ("EPS") guidance for 2025. This is a non-GAAP financial measure that represents diluted earnings per share (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges and the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the

non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.

2025 2024

(Millions of dollars) Q1 Q4 Q3 Q2 Q1

Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate the ability of a company to pursue opportunities that enhance shareholder value. FCF equals cash flow from operations less

capital expenditures.

Operating Cash Flow

$ 2,161

$ 2,809

$ 2,731

$ 1,929

$ 1,954

Less: Capital Expenditures

(1,270)

(1,250)

(1,066)

(1,133)

(1,048)

Free Cash Flow

$ 891

$ 1,559

$ 1,665

$ 796

$ 906

Net Debt - Net debt is a financial liquidity metric used by investors, financial analysts and management to evaluate the ability of a company to repay its debt and is calculated as total debt (excluding purchase accounting impacts) less liquid assets.

Debt

$23,897

$21,623

$22,262

$21,518

$20,319

Less: Cash and cash equivalents

(5,294)

(4,850)

(5,187)

(4,626)

(4,848)

Net debt

18,603

16,773

17,075

16,892

15,471

Less: Purchase accounting impacts - Linde AG

(4)

(5)

Adjusted net debt

$18,599

$16,769

$17,071

$16,888

$15,466

After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC) - After-tax return on capital is a measure used by investors, financial analysts and management to evaluate the return on net assets employed in the business. ROC measures the after-tax operating profit that the company was able to generate with the investments made by all parties in the business (debt, noncontrolling interests and Linde plc shareholders' equity).

Reported net income - Linde plc

$ 1,673

$ 1,725

$ 1,550

$ 1,663

$ 1,627

Add: noncontrolling interests

Add: interest expense - net

Less: tax benefit on interest expense - net *

(14)

(13)

(16)

(17)

(16)

Reported NOPAT

$ 1,753

$ 1,809

$ 1,655

$ 1,753

$ 1,714

Adjusted net income - Linde plc

$ 1,880

$ 1,899

$ 1,896

$ 1,859

$ 1,821

Add: adjusted noncontrolling interests

Add: adjusted interest expense - net

Less: tax benefit on interest expense - net *

(14)

(13)

(16)

(17)

Adjusted NOPAT

$ 1,963

$ 1,986

$ 1,988

$ 1,953

$ 1,912

*Tax benefit on interest expense - net is generally presented using the reported effective rate.

4-quarter trailing reported NOPAT

$ 6,970

$ 6,931

$ 6,753

$ 6,727

$ 6,626

4-quarter trailing adjusted NOPAT

$ 7,890

$ 7,839

$ 7,697

$ 7,560

$ 7,450

2025

2024

(Millions of dollars)

Equity and redeemable noncontrolling interests:

Redeemable noncontrolling interests

$ 13

Linde plc shareholders' equity

38,032

38,092

39,173

38,179

38,829

Noncontrolling interests

1,418

1,383

1,417

1,359

1,387

Total equity and redeemable noncontrolling interests

$39,463

$39,488

$40,603

$39,551

$40,229

Reported capital

$58,066

$56,261

$57,678

$56,443

$55,700

Total equity and redeemable noncontrolling interests

$39,463

$39,488

$40,603

$39,551

$40,229

Add: Adjusted net debt

18,599

16,769

17,071

16,888

15,466

Less: Linde AG Goodwill (a)

24,256

Less: Linde AG Indefinite lived intangibles (a)

1,868

Adjusted capital

$31,938

$30,133

$31,550

$30,315

$29,571

(a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger.

Ending capital (see above)

$58,066

$56,261

$57,678

$56,443

$55,700

5-quarter average ending capital

$56,830

$56,377

$55,994

$55,535

$55,277

Ending adjusted capital (see above)

$31,938

$30,133

$31,550

$30,315

$29,571

5-quarter average ending adjusted capital

$30,701

$30,248

$29,865

$29,404

$29,144

Disclaimer

Linde plc published this content on April 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2025 at 09:35 UTC.