Linde : Full Year Report (2024 annual report to shareholders

Published: 2025-04-30 14:22:17 ET LIN

Published on 04/30/2025 at 14:22

CO2

Annual Report 2024

Financial Highlights

Year ended December 31

2024

2023

Dollar amounts in millions, except per share data

Reported

Sales

33,005

32,854

Operating Profit

8,635

8,024

Net Income

6,565

6,199

Diluted Earnings Per Share

13.62

12.59

Adjusted¹

Sales

33,005

32,854

Operating Profit

9,720

9,070

Net Income

7,475

6,989

Diluted Earnings Per Share

15.51

14.20

After-Tax Return on Capital²

25.9 %

25.4%

Other Information

Cash Flow from Operations

9,423

9,305

Capital Expenditures

4,497

3,787

End Markets³

Business Segments

Distribution Mode³

22 %

44%

38 %

8 %

13 %

17 %

25 %

32%

25 %

20 %

22 % 4 %

9 %

7 %

9 %

¹ Adjusted amounts are non-GAAP measures and are reconciled to reported amounts in the "Non-GAAP Financial Measures" Section in Item 7.

² Adjusted after-tax return on capital is a non-GAAP measure. For definition and reconciliation, please see Appendix to the Investor Teleconference Presentation Fourth Quarter 2024.

³ Total sales excluding Linde Engineering.

Letter to Shareholders

In 2024, Linde successfully navigated a challenging macroeconomic environment to deliver industry-leading performance. These results reflect the resilience of our business coupled with the disciplined execution of our strategy. I want to personally thank all our employees for their unrelenting commitment to operational excellence and focus on maximizing shareholder value throughout

the year.

For a capital-intensive business like ours, a critical financial metric is return on capital (ROC). In 2024, Linde delivered an ROC of 25.9%, an increase of 50 basis points compared to 2023. Our EBIT margin rose to 29.5%, and adjusted earnings per share reached $15.51, a 10% increase excluding foreign exchange impacts. In 2024, we generated $9.4 billion in cash, demonstrating our ability to consistently generate strong

and reliable cash flows through different economic cycles. This, together with our disciplined capital allocation policy and strong balance sheet, allowed us to return $7.1 billion to shareholders through dividends and share repurchases, while reinvesting $4.5 billion back into the business. Linde's strong performance across all measures demonstrates that our integrated business model, underpinned by exceptional network density, consistently delivers shareholder value throughout any cycle.

While these are industry-leading metrics, financial results alone do not define Linde's success. Safety, compliance, people and sustainability remain cornerstones of our performance. In 2024, we achieved world-class safety benchmarks and further strengthened Linde's robust compliance program, earning recognition as one of the World's Most Ethical Companies for the fourth consecutive year. We proudly supported over 800 local community projects worldwide and reduced our absolute greenhouse gas emissions year-on-year by increasing low-carbon power consumption to exceed 40% of our total consumption. Linde's products and technologies are indispensable to countless applications across every sector - helping our customers

operate more efficiently and successfully while helping them reduce their greenhouse gas emissions. In 2024, we helped our customers avoid more than 96 million metric tons of CO2e, more than double the emissions that Linde generated from its operations. These efforts resulted in continued external recognition and inclusion in the Dow Jones Best-In-Class World Index for the 22ndconsecutive year.

We maintain a disciplined approach to capital allocation, guided by three key priorities: preserving a strong A / A2 credit rating while consistently growing dividends annually, investing in high-quality projects and utilizing surplus cash for share repurchases. To ensure predictable returns, all projects we pursue must be supported by off-take agreements.

Linde remains focused on executing its growth strategy, reflected in a record backlog of $10.4 billion in high-quality projects under execution. Linde is well positioned to benefit from secular growth drivers such as electronics, AI and decarbonization opportunities. We are also investing in opportunities in new and growing markets - including space, quantum computing and others. This is further complemented by our world-class engineering business,

known for its execution of large-scale projects, and bolstered by competitive advantages from our portfolio of innovative and proprietary technologies.

Letter to Shareholders

Linde continues to support industrial decarbonization efforts through its technologies, products and solutions, spanning the entire value chain from clean hydrogen to carbon capture and beyond. The recent reset of expectations around clean energy has sharpened industry focus on viable, scalable projects, a development that we welcome and see reflected in our project pipeline. Linde remains steadfast in investing only in high-quality projects with strong partners that meet our stringent investment criteria.

At present, Linde's clean energy portfolio includes around

$5 billion worth of high-quality projects with secured off-take agreements. Among these is our largest-ever industrial gases contract with Dow, which will supply low-carbon hydrogen and other industrial gases in Alberta, Canada. Additionally, we are advancing work on our project to deliver low-carbon hydrogen to Woodside Energy in Texas.

At the heart of Linde's success are our people, many extraordinary teams, who are highly engaged and skilled at operating local businesses effectively through all economic cycles. Our strong focus on operations combines the strength of our global footprint with the agility to adapt to local dynamics where necessary. Pricing and cost management are two prime examples of controllable actions, which are deeply embedded in our operating rhythm. Productivity is another hallmark of Linde's performance culture, which has been nurtured and refined over decades. Our employees constantly seek opportunities to enhance efficiency. Today, they are leveraging AI solutions and integrating machine learning

into business processes, delivering tangible results in both productivity and operational excellence.

At Linde, we take pride in being responsible stewards of capital, delivering consistent value to our shareholders. Over the years, we have charted a steady course through challenging periods, whether a global pandemic, an energy crisis, or broader macroeconomic uncertainty, while consistently growing profits and returning capital to shareholders. Recently, we increased our dividend for the 32ndconsecutive year.

Our best-in-class execution culture, disciplined capital strategy and proven management actions have enabled our success, regardless of external challenges. While we remain vigilant, our strong track record and clear growth

strategy, underpinned by a record backlog of projects, gives me confidence that Linde will continue creating shareholder value in the years ahead.

Sincerely,

Sanjiv Lamba

Chief Executive Officer

Leadership

Sanjiv Lamba

Chief Executive Officer & Member of the Board of Directors

Sean Durbin

Executive Vice President North America

Guillermo Bichara Executive Vice President & Chief Legal Officer

Matt White

Executive Vice President & Chief Financial Officer

Juergen Nowicki Executive Vice President Linde Engineering

David Strauss

Executive Vice President & Chief Human Resources Officer

Desiree Bacher Senior Vice President Communications & AI

Binod Patwari Senior Vice President APAC

Ben Glazer

Senior Vice President

US Packaged & Latin America

Oliver Pfann

Senior Vice President EMEA

Kelcey Hoyt

Senior Vice President & Chief Accounting Officer

Moloy Banerjee

ASEAN & South Asia

Jeff Barnhard

Lincare

Gilney Bastos

South Latin America

Armando Botello

UK & Ireland

Lindsey Burkin

Europe North

Stefano Innocenzi

Europe West

Mathias Kranz

Europe East

Josue Lee

North Latin America

Zhengmin Li

Greater China

Theo Martin

South Pacific

Nicolas Pattera

Canada

Anshul Sarda

Helium & Rare Gas

Todd Skare

Advanced Material Technologies

Susan Stevenson

NuCO2

BS Sung

South Korea

Dominic Cianchetti

Engineering Americas

Robert Eichelmann

Engineering APAC

John van der Velden

Engineering Sales & Technology

Anne Boyd

Tax & Treasury

Denny Brown

Information Technology

Erin Catapano

Sustainability

Venkatadas Devisetty

SHEQ

Karin Griggel

Compliance

Amitabh Gupta

Technology

Tim Heisterkamp Global Public Affairs & Executive Staff

Shannon Lenze Operations Excellence & Productivity

Michelle Loo

Inclusion

Juan Pelaez

Investor Relations

Bjoern Schneider

Internal Audit

Vipin Sher

Strategy, Capex & M&A

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 April 30, 2025 at 18:21 UTC.