Linde plc Reports Strong Full-Year and Q4 2024 Financial Results, Demonstrating Resilience and Growth
Linde plc (Nasdaq: LIN), a global leader in industrial gases and engineering, announced its financial results for the full year and fourth quarter of 2024. The company delivered robust performance despite challenging macroeconomic conditions, reinforcing its position as an industry leader.
Full-Year Highlights: Steady Growth Amid Challenges
For the full year 2024, Linde reported sales of $33.0 billion, flat compared to the prior year, but underlying sales grew by 2% driven by price attainment and stable volumes. Key highlights include:
- Operating Profit: Reported operating profit was $8.6 billion, while adjusted operating profit rose 7% year-over-year to $9.7 billion.
- Profit Margins: Adjusted operating profit margin expanded significantly, reaching 29.5%, up 190 basis points from the previous year.
- Earnings Per Share (EPS): Diluted EPS increased by 8% to $13.62, and adjusted EPS grew by 9% (or 10% excluding currency impacts) to $15.51.
- Shareholder Returns: Linde returned $7.1 billion to shareholders through dividends and share repurchases, underscoring its commitment to delivering value.
The company also maintained a strong project backlog of $10.4 billion, reflecting its focus on long-term growth opportunities.
Fourth Quarter Performance: Continued Momentum
In Q4 2024, Linde demonstrated consistent execution with notable achievements:
- Sales: Revenue stood at $8.3 billion, flat year-over-year but up 2% on an underlying basis due to pricing gains and steady demand across key markets.
- Operating Profit: Adjusted operating profit surged 9% to $2.5 billion, with margins improving by 250 basis points to 29.9%.
- Earnings Per Share: Diluted EPS rose 14% to $3.60, while adjusted EPS climbed 11% (or 13% excluding currency effects) to $3.97.
- Cash Flow: Operating cash flow increased 3% to $2.8 billion, and free cash flow amounted to $1.6 billion after capital expenditures of $1.25 billion.
During the quarter, Linde returned $1.99 billion to shareholders, further solidifying its reputation as a reliable investment.
Segment Performance: Global Strength Across Regions
Linde’s diversified portfolio and geographic presence contributed to its success in 2024. Key regional performances included:
- Americas: Sales grew 1% to $3.6 billion, supported by higher pricing and volume increases in manufacturing, electronics, and food & beverage sectors. Operating profit margin reached 31.9%, up 190 basis points.
- Asia Pacific (APAC): Sales increased 2% to $1.67 billion, driven by project start-ups, particularly in the electronics market. Operating profit margin improved to 30.0%, up 240 basis points.
- Europe, Middle East & Africa (EMEA): Despite a 2% decline in sales to $2.06 billion, underlying sales grew 1% thanks to pricing improvements. Operating profit margin expanded by 400 basis points to 33.3%.
- Linde Engineering: While sales dipped 5% to $628 million, order intake remained strong at $880 million, contributing to a third-party equipment backlog of $3.3 billion.
Strategic Progress and Future Outlook
Commenting on the results, Linde CEO Sanjiv Lamba highlighted the company’s resilience and strategic progress: “In 2024, Linde delivered industry-leading results, including a 25.9% return on capital, 29.5% operating margin, and 10% EPS growth excluding currency impacts. These achievements reflect our team’s exceptional execution and the strength of our business model.”
Lamba also emphasized advancements in Linde’s clean energy strategy, citing the signing of its largest-ever product supply agreement. This milestone supports the company’s $10 billion project backlog, which is expected to drive earnings growth for years to come.
Looking ahead, Linde provided guidance for 2025:
- Q1 2025 Adjusted EPS Guidance: $3.85–$3.95, representing 7%–9% growth excluding currency headwinds.
- Full-Year 2025 Adjusted EPS Guidance: $16.15–$16.55, indicating 8%–11% growth when excluding estimated currency impacts.
- Capital Expenditures: Expected to range between $5.0 billion and $5.5 billion to support operational needs and growth initiatives.
Commitment to Shareholder Value
Linde’s disciplined capital allocation strategy continues to prioritize shareholder returns. In 2024, the company invested $4.5 billion in capital expenditures while returning $7.1 billion to investors through dividends and share buybacks.
Join the Earnings Call
A teleconference discussing Linde’s Q4 2024 results will be held today at 9:00 am EST. Participants can join via:
- US Toll-Free Dial-In: 1-888-770-7292
- UK Toll-Free Dial-In: 0800-358-0970
- Access Code: 6877110
A live webcast will also be available at https://investors.linde.com/events-presentations.
About Linde plc
Linde is a leading global industrial gases and engineering company with 2024 sales of $33 billion. Its mission is to make the world more productive by providing innovative solutions that help customers succeed while supporting sustainability and decarbonization efforts. Serving diverse end markets such as chemicals, energy, electronics, healthcare, and manufacturing, Linde plays a critical role in enabling clean hydrogen production, carbon capture systems, and other transformative technologies.
For more information, visit www.linde.com.
