Linde Posts Record Sales and Adjusted EPS, Guides 2026 EPS Up 8%-9%

Linde posted record third-quarter sales of $9.4 billion and record adjusted earnings per share of $4.59, up 9%, as the industrial gases giant leaned on pricing and electronics demand, though its reported profit fell on restructuring-related charges.

Sales rose 9% from a year earlier, including a 1% boost from currency, according to the earnings release Linde filed with an 8-K on Thursday. Underlying sales grew 5%, made up of 3% price attainment and 2% higher volumes, mainly in the electronics, chemicals and energy, and manufacturing end markets.

GAAP profit slips, adjusted profit grows

Net income fell 12% to $1.692 billion, and diluted EPS dropped 11% to $3.66. Excluding Linde AG purchase accounting impacts and cost reduction program and other charges, adjusted net income rose 7% to $2.122 billion.

Operating profit was $2.150 billion, while adjusted operating profit climbed 8% to $2.763 billion, for an adjusted margin of 29.4%. The company said its operating margin was 30 basis points lower than a year earlier but flat when excluding the effects of cost pass-through.

"Linde's financial performance continued to improve in the third quarter, with record sales of $9.4 billion and record EPS of $4.59, alongside strong operating cash flow of $3.2 billion," CEO Sanjiv Lamba said in the release.

Americas and Asia lead

The Americas segment grew sales 11% to $3.601 billion, with underlying sales up 9% on 6% higher pricing and 3% higher volumes. Its operating margin rose 50 basis points to 35.1%.

Asia Pacific sales rose 12% to $1.950 billion, with underlying growth of 8% helped by electronics, chemicals and energy, and project start-ups, though its margin narrowed 70 basis points to 27.4%.

Sales in Europe, the Middle East and Africa rose 7% to $2.327 billion, with underlying sales up 3%, mainly on healthcare and food and beverage demand.

Linde Engineering sales rose 12% to $582 million. The engineering unit's third-party equipment backlog stood at $2.9 billion, and Linde reported a total project backlog of $11 billion.

"Customer proposal activity remains robust, particularly across electronics, supporting our confidence in continued backlog growth," Lamba said.

Cash returns and outlook

Operating cash flow rose 8% to $3.169 billion. After $1.392 billion of capital spending, free cash flow was $1.777 billion. Linde returned $1.685 billion to shareholders in the quarter through dividends and stock repurchases, net of issuances.

For the fourth quarter, Linde expects adjusted EPS of $4.40 to $4.50, up 5% to 7% from a year earlier, with no expected impact from currency.

For the full year, it expects adjusted EPS of $17.82 to $17.92, representing growth of 8% to 9% when assuming a 2% currency benefit. Capital expenditures are expected at $5.5 billion to $6.0 billion, supporting growth and maintenance needs that include a $7.9 billion contractual sale-of-gas project backlog.

Sources

1. Linde Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001654954-26-009199)

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