Linde's Strong Q4 Earnings: A Beacon of Resilience Amidst Global Challenges

Linde plc, a leading global industrial gases and engineering company, has reported robust fourth-quarter and full-year 2024 results, demonstrating its resilience and strategic focus amidst challenging global macro conditions. The company's earnings beat expectations, reflecting its disciplined capital allocation and focused management actions.

Fourth-Quarter Highlights

Linde's sales for the fourth quarter of 2024 were $8.3 billion, flat year-over-year (YoY) or 2% above when excluding negative currency impact. Underlying sales increased 2% from price attainment and stable volumes. The company's operating profit was $2.3 billion, with an adjusted operating profit of $2.5 billion, up 9% versus prior year. Adjusted operating profit margin of 29.9% was 250 basis points above prior year. Linde's earnings per share (EPS) were $3.60, up 14%, and adjusted EPS were $3.97, up 11% or 13% excluding currency translation impact.

Full-Year 2024 Results

For the full year 2024, Linde's sales were $33.0 billion, flat versus 2023. Underlying sales increased 2% from 2% price attainment and stable volumes. Operating profit was $8.6 billion, and adjusted operating profit was $9.7 billion, 7% above prior year. Adjusted operating profit margin was 29.5% of sales, 190 basis points higher than 2023. Diluted earnings per share were $13.62, and adjusted diluted earnings per share were $15.51, up 9% versus prior year or 10% excluding currency translation impact.



Strategic Focus on Clean Energy and Decarbonization

Linde's strategic focus on clean energy and decarbonization projects has significantly contributed to its earnings growth. In 2024, the company signed its largest ever product supply agreement with a high-quality customer, supporting a $10 billion project backlog that will contribute to earnings growth for years to come. This focus on clean energy and decarbonization projects is expected to continue driving future earnings growth.

Disciplined Capital Allocation and Management Actions

Linde's disciplined capital allocation and focused management actions have been instrumental in its resilience and shareholder value creation. The company generated strong operating cash flow of $9.4 billion in 2024, while investing $4.5 billion in capital expenditures. Linde returned $7.1 billion to shareholders through dividends and share repurchases, net of issuances. The company's record number of new small on-site projects, driven by electronics and decarbonization, further aligns with its long-term growth strategy and is expected to contribute to earnings in the coming years.

Future Outlook

For the full year 2025, Linde expects adjusted diluted earnings per share to be in the range of $16.15 to $16.55, up 4% to 7% versus prior year or 8% to 11% when excluding estimated currency headwinds. Full-year capital expenditures are expected to range between $5 billion and $5.5 billion to support operating and growth requirements, including the contractual sale of gas backlog. For the first quarter 2025, adjusted earnings per share are expected to be in the range of $3.85 to $3.95, 3% to 5% above prior-year quarter or 7% to 9% when excluding 4% assumed unfavorable currency.

Linde's strong Q4 earnings and full-year 2024 results demonstrate the company's ability to navigate challenging global macro conditions and deliver shareholder value through disciplined capital allocation and focused management actions. With a strategic focus on clean energy and decarbonization projects, Linde is well-positioned to continue its growth trajectory in the coming years.