Linde 2025 Q2 Earnings Net Income Climbs 6% Amid Resilient Market

Linde (LIN), ranking 49th by market capitalization, reported its fiscal 2025 Q2 earnings on July 31st, 2025. The company exceeded expectations with its net income rising by 6% year-over-year to $1.81 billion. Linde maintained its full-year guidance, anticipating adjusted EPS of $16.30 to $16.50, reflecting a growth of 5% to 6%. Operating margins expanded by 80 basis points, showcasing a strong performance despite challenges in the industrial economy. The company continues to focus on strategic projects and investments to drive future growth and shareholder value.

Revenue
The total revenue of Linde rose by 2.8% to $8.49 billion in 2025 Q2, compared to $8.27 billion in 2024 Q2. This increase was driven by successful project execution and strategic pricing initiatives.

Earnings/Net Income
Linde's EPS increased by 8.4% to $3.75 in 2025 Q2 from $3.46 in 2024 Q2, indicating continued earnings growth. The company's profitability strengthened with a net income of $1.81 billion, marking a 6.2% growth from $1.70 billion in 2024 Q2. This reflects a positive earnings trajectory.

Post-Earnings Price Action Review
The strategy of acquiring Linde (LIN) shares 30 days post-earnings release, following a quarter-over-quarter revenue increase over the past three years, yielded moderate returns but fell short of the benchmark. The strategy achieved a compound annual growth rate (CAGR) of 8.49% with a maximum drawdown of 0.00%, indicating a low-risk profile. However, the Sharpe ratio of 0.48 and the excess return of -11.10% suggest that, despite minimizing losses, the strategy did not leverage broader market gains effectively. Investors may seek alternative approaches to capitalize on Linde’s potential, given the low risk but underwhelming excess returns compared to the market.

CEO Commentary
Sanjiv Lamba, Chief Executive Officer of Linde, highlighted the company's resilience in the second quarter, with EPS growing 6% and operating margins expanding by 80 basis points despite a muted industrial economy. He emphasized the successful addition of several new projects to the backlog, including a significant long-term agreement for a low-carbon ammonia facility in the U.S. Gulf Coast. Lamba expressed confidence in Linde's ability to secure high-quality projects in electronic and clean energy markets while maintaining a measured outlook on macroeconomic trends.

Guidance
Linde expects adjusted diluted earnings per share for Q3 2025 to range between $4.10 and $4.20, indicating a year-over-year growth of 4% to 7%. For the full year 2025, the company maintains its adjusted EPS guidance at $16.30 to $16.50, reflecting a growth of 5% to 6%. The company anticipates capital expenditures to be between $5.0 billion and $5.5 billion to support growth and maintenance, aligned with its $7.1 billion sale-of-gas project backlog.

Additional News
Linde plc announced a quarterly dividend of $1.50 per share, payable on September 18, 2025, to shareholders of record on September 4, 2025, as part of its ongoing commitment to returning value to shareholders. In recent corporate activity, Linde signed a $400 million agreement with Blue Point Number One to supply industrial gases in Louisiana, strengthening its presence in the region. Additionally, Linde expanded its partnership with China South Steel in Shaoguan, Guangdong Province, to further support the steelmaker’s production needs, showcasing its strategic growth initiatives in key markets.