What factors could drive LIN's EPS higher in 2025?

Linde's EPS is likely to be driven higher in 2025 by several key factors:

1. **Growth in Operating Profit**: Linde's operating profit is expected to increase by 7% to $9.7 billion. This growth in operating profit is a direct result of the company's strategic initiatives and effective cost management, which are reflected in the improved operating profit margins and EPS growth.
2. **Adjusted EPS Growth**: The company has provided guidance for 2025, projecting adjusted EPS growth of 8% to 11% excluding currency impacts. This guidance indicates a clear expectation of increased profitability, which will directly impact EPS.
3. **Return to Shareholders**: Linde has a history of returning value to shareholders, with plans to return $7 billion to shareholders through dividends and share repurchases. This return of capital to shareholders can lead to an increase in EPS as the company's earnings are distributed more closely to the owners.
4. **Strong Project Backlog**: Linde's strong project backlog, valued at over $10 billion, including a record $7 billion sale of gas backlog, provides a clear indication of future revenue streams. As these projects are completed, they will contribute to the company's earnings, thereby increasing EPS.
5. **Increase in Low-Carbon Renewable Energy Consumption**: The company has seen a significant increase in low-carbon renewable energy consumption, which now accounts for over 40% of total power consumption. This strategic shift is not only environmentally beneficial but also potentially more profitable, as it aligns with growing demand for sustainable energy solutions.

In summary, Linde's EPS is expected to rise in 2025 due to a combination of factors including growth in operating profit, adjusted EPS growth, return to shareholders, a strong project backlog, and an increase in low-carbon renewable energy consumption. These factors collectively point towards a positive earnings outlook for the company.