Linde 2025 Q1 Earnings Strong Performance as Net Income Grows 2.5%
Thursday, May 1, 2025 9:08 pm ET
13min read Linde (LIN), ranking 47th by market capitalization, reported its fiscal 2025 Q1 earnings on May 01st, 2025. The total revenue of linde increased by 0.1% to $8.11 billion in 2025 Q1, up from $8.10 billion in 2024 Q1. Linde's EPS rose 4.4% to $3.53 in 2025 Q1 from $3.38 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $1.71 billion in 2025 Q1, marking 2.5% growth from $1.67 billion in 2024 Q1. The Company has sustained profitability for 8 years over the corresponding fiscal quarter, reflecting stable business performance.
Linde's revenue experienced slight growth in Q1 2025, reaching a total of $8.11 billion compared to $8.10 billion in the prior year. The Merchant segment contributed a substantial $2.38 billion, while On-Site operations accounted for $1.98 billion. Packaged Gas showed robust performance, generating $2.82 billion. Additionally, the Other category provided $933 million, collectively bringing the total revenue to $8.11 billion.
Linde's EPS demonstrated positive growth, increasing 4.4% to $3.53 in 2025 Q1 from $3.38 in 2024 Q1. Net income also improved, rising 2.5% to $1.71 billion from $1.67 billion, underscoring stable business performance. This indicates strong earnings growth for the quarter.
The backtest results for Linde's stock price following earnings report metrics indicate positive short-to-medium-term gains. The stock price has shown strong responses to revenue, net income, and EPS-related news. With a 3-day win rate of 50% for revenue impact, the stock exhibited volatility initially but performed well over 30 days with a win rate of 66.67%. Net income impact demonstrated a consistent 3-day win rate of 66.67%, maintained over 10 and 30 days. EPS impact mirrored this trend, reflecting consistent market reactions to EPS announcements. This suggests that investors may consider historical performance trends when assessing potential stock impacts. However, past performance is not always indicative of future results, and other market factors should be considered.
CEO Commentary
Sanjiv Lamba, Chief Executive Officer, remarked that despite anticipated macroeconomic headwinds, Linde delivered a resilient performance, achieving a 120 basis point increase in operating margins to 30.1% and growing EPS by 8% when excluding foreign exchange effects. He emphasized that these results stemmed from disciplined capital allocation and proactive management actions, reinforcing Linde's industry-leading return on capital of 25.7%. Lamba expressed confidence in the company's ability to create shareholder value, even amid economic uncertainties, highlighting the robustness of the Linde business model.
Guidance
Linde anticipates adjusted diluted earnings per share for Q2 2025 in the range of $3.95 to $4.05, reflecting a year-over-year increase of 3% to 5%, or 5% to 7% when excluding an estimated 2% currency headwind. For the full year 2025, the company guides adjusted diluted EPS between $16.20 and $16.50, indicating a growth of 4% to 6% year-over-year, or 6% to 8% when excluding the currency impact. Capital expenditures are expected to range from $5.0 billion to $5.5 billion to support growth initiatives.
Additional News
In recent developments, Linde announced an expansion of its industrial gas supply partnership with Samsung in South Korea. This agreement involves the construction of an eighth on-site air separation unit at Samsung's semiconductor facility in Pyeongtaek, ensuring the supply of essential gases like nitrogen, oxygen, and argon. Additionally, Linde declared a quarterly dividend of $1.50 per share, reinforcing its commitment to returning value to shareholders. Furthermore, Linde has been recognized as one of the World's Most Ethical Companies® for 2025, marking its fifth consecutive year on Ethisphere's prestigious list, showcasing its dedication to ethical business practices and corporate responsibility.
Linde's revenue experienced slight growth in Q1 2025, reaching a total of $8.11 billion compared to $8.10 billion in the prior year. The Merchant segment contributed a substantial $2.38 billion, while On-Site operations accounted for $1.98 billion. Packaged Gas showed robust performance, generating $2.82 billion. Additionally, the Other category provided $933 million, collectively bringing the total revenue to $8.11 billion.
Linde's EPS demonstrated positive growth, increasing 4.4% to $3.53 in 2025 Q1 from $3.38 in 2024 Q1. Net income also improved, rising 2.5% to $1.71 billion from $1.67 billion, underscoring stable business performance. This indicates strong earnings growth for the quarter.
The backtest results for Linde's stock price following earnings report metrics indicate positive short-to-medium-term gains. The stock price has shown strong responses to revenue, net income, and EPS-related news. With a 3-day win rate of 50% for revenue impact, the stock exhibited volatility initially but performed well over 30 days with a win rate of 66.67%. Net income impact demonstrated a consistent 3-day win rate of 66.67%, maintained over 10 and 30 days. EPS impact mirrored this trend, reflecting consistent market reactions to EPS announcements. This suggests that investors may consider historical performance trends when assessing potential stock impacts. However, past performance is not always indicative of future results, and other market factors should be considered.
CEO Commentary
Sanjiv Lamba, Chief Executive Officer, remarked that despite anticipated macroeconomic headwinds, Linde delivered a resilient performance, achieving a 120 basis point increase in operating margins to 30.1% and growing EPS by 8% when excluding foreign exchange effects. He emphasized that these results stemmed from disciplined capital allocation and proactive management actions, reinforcing Linde's industry-leading return on capital of 25.7%. Lamba expressed confidence in the company's ability to create shareholder value, even amid economic uncertainties, highlighting the robustness of the Linde business model.
Guidance
Linde anticipates adjusted diluted earnings per share for Q2 2025 in the range of $3.95 to $4.05, reflecting a year-over-year increase of 3% to 5%, or 5% to 7% when excluding an estimated 2% currency headwind. For the full year 2025, the company guides adjusted diluted EPS between $16.20 and $16.50, indicating a growth of 4% to 6% year-over-year, or 6% to 8% when excluding the currency impact. Capital expenditures are expected to range from $5.0 billion to $5.5 billion to support growth initiatives.
Additional News
In recent developments, Linde announced an expansion of its industrial gas supply partnership with Samsung in South Korea. This agreement involves the construction of an eighth on-site air separation unit at Samsung's semiconductor facility in Pyeongtaek, ensuring the supply of essential gases like nitrogen, oxygen, and argon. Additionally, Linde declared a quarterly dividend of $1.50 per share, reinforcing its commitment to returning value to shareholders. Furthermore, Linde has been recognized as one of the World's Most Ethical Companies® for 2025, marking its fifth consecutive year on Ethisphere's prestigious list, showcasing its dedication to ethical business practices and corporate responsibility.
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