Linde's Trading Volume Drops 38.79% to $360 Million, Second Consecutive Day of Decline

On June 18, 2025, Linde's trading volume reached $360 million, marking a 38.79% decrease from the previous day. The company's stock price fell by 0.48%, marking the second consecutive day of decline, with a total decrease of 1.69% over the past two days.

Linde, the industrial gas company, has emphasized its leadership position in sustainability during its fourth-quarter earnings call earlier this year. The company's Q1 2025 results highlight its ability to thrive even as global growth slows. Net income rose 3% year-over-year to $1.67 billion, while adjusted diluted EPS increased 5% to $3.95. Linde's adjusted operating margin expanded 120 basis points to 30.1%, driven by pricing power and cost discipline.

Linde's $7.0 billion contractual sale of gas project backlog and $3.3 billion third-party equipment backlog are its crown jewels. These projects represent long-term, fixed-price contracts that lock in steady revenue streams, shielding the company from short-term demand fluctuations. In Q1, 58% of $1.27 billion in capex was allocated to executing this backlog, signaling management's commitment to converting projects into cash. Full-year 2025 capex is projected at $5.0–5.5 billion, a level that balances growth with financial prudence.

Linde's capital allocation strategy prioritizes returns while funding growth. In Q1, it returned $1.8 billion to shareholders through dividends and buybacks, maintaining a strong 65% dividend payout ratio. The company's 5-year average free cash flow conversion of ~80% supports this generosity, and its return on invested capital (ROIC) of 25.7% rivals top industrial peers. Management has also signaled discipline in navigating macro risks, emphasizing maintaining margins through “price realization and productivity,” while avoiding overexposure to cyclical sectors.

Linde's geographic diversification mitigates regional risks. While APAC and EMEA sales dipped 3% each, both regions saw margin expansions. The Americas segment thrived, with sales up 3% and margins at 31.0%, driven by strength in chemicals and electronics. The Linde Engineering division also grew 5% in sales, with a $3.3 billion backlog, signaling robust demand for industrial gas infrastructure.