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LIN Q2 Earnings & Revenues Beat Estimates on Volume & Pricing Growth
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Key Takeaways
LIN's Q2 2026 earnings topped estimates as pricing, volume growth, currency and acquisitions boosted sales.
Electronics sales rose 18%, leading volume growth across Linde's major end markets in the second quarter.
LIN expects 2026 adjusted earnings to grow 8-9% as its $11.1 billion project backlog supports expansion.
Linde plc (LIN - Free Report) reported second-quarter 2026 adjusted earnings of $4.50 per share, up 10% from $4.09 per share a year ago. The bottom line topped the Zacks Consensus Estimate of $4.49 per share by 0.22%.
Sales increased 9% to $9.29 billion from $8.49 billion in the prior-year quarter, surpassing the Zacks Consensus Estimate of $8.96 billion by 3.68%.
The strong quarterly results were driven by higher pricing, volume growth, favorable currency movements and acquisition. Electronics was the strongest end market.
Underlying sales advanced 4% from the prior-year quarter, reflecting 2% higher pricing and 2% volume growth. Currency translation added 2% to reported sales, acquisitions contributed 1%, cost pass-through added 1% and Engineering provided another 1%.
Volume gains were led by electronics, manufacturing and chemicals and energy. Electronics sales grew 18%, the strongest increase among Linde’s major end markets. Manufacturing advanced 5%, metals and mining rose 4%, food and beverage increased 3%, and healthcare, chemicals and energy each gained 2%.
Linde's Americas Results Reflect Volume & Pricing
Americas sales increased 7% to $4.08 billion. Underlying sales grew 4%, supported equally by 2% higher pricing and 2% volume growth. Electronics and manufacturing, led by commercial aerospace, were the primary volume drivers.
Operating profit rose 5% to $1.27 billion. The operating margin declined 50 basis points to 31.2% as price increases and productivity initiatives were partly offset by cost inflation in the U.S. homecare business. Excluding that business, the region’s margin improved 20 basis points.
LIN's APAC Growth Leads Regional Performance
APAC sales increased 13% to $1.87 billion, representing the strongest growth among Linde’s main geographic segments. Underlying sales rose 8% as volumes increased 6% and pricing improved 2%. Project start-ups, equipment sales and demand from electronics and chemicals and energy supported volume growth.
Operating profit increased 8% to $531 million. However, the margin fell 120 basis points to 28.4%. Excluding cost pass-through effects, the decline was 70 basis points, reflecting the lower-margin sale of equipment and helium-related dislocation costs.
Linde's EMEA Sales Rise Despite Lower Volumes
EMEA sales advanced 7% to $2.30 billion. Favorable currency translation contributed 3%, while pricing and cost pass-through each added 2%. Acquisitions contributed another 1%. Underlying sales increased 1% as 2% higher pricing more than offset a 1% volume decline. The weakness was mainly tied to manufacturing.
Operating profit rose 6% to $823 million, while the margin decreased 40 basis points to 35.7%. Excluding cost pass-through, the margin improved 10 basis points on pricing and productivity actions.
LIN's Engineering & Other Businesses Advance
Linde Engineering sales increased 13% to $625 million, while operating profit rose 11% to $100 million. The operating margin was 16%, compared with 16.3% a year earlier, reflecting project timing and the mix of intercompany and third-party plant sales.
Quarterly order intake increased to $871 million from $311 million. The sale-of-plant backlog stood at $3 billion. Global Other sales increased 30% to $408 million, led by advanced materials demand from electronics and commercial aerospace. The business posted operating profit of $18 million against a $13 million loss a year earlier.
Linde's Profitability Stays Solid
Adjusted operating profit rose 7% year over year to $2.74 billion. The adjusted operating margin declined 60 basis points to 29.5% as higher pricing and productivity benefits were offset by cost inflation. Adjusted net income increased 8% to $2.09 billion.
LIN’s Backlog
At the end of the second quarter, the company’s high-quality project backlog amounted to $11.1 billion.
Linde’s Cash Flow Supports Shareholder Returns
Operating cash flow improved 3% to $2.27 billion. Capital expenditures increased 14% to $1.44 billion, including a 27% rise in project spending to $780 million. As a result, free cash flow declined to $833 million from $954 million. Linde returned $1.59 billion to shareholders through dividends and net share repurchases.
LIN Maintains a Substantial Balance Sheet
Linde ended June 2026 with cash and cash equivalents of $4.90 billion.
Total debt was $28.01 billion, comprising $4.86 billion in short-term debt, $2.47 billion in current long-term debt and $20.68 billion in long-term debt.
LIN's 2026 Outlook Signals Further Earnings Growth
For the third quarter, Linde expects adjusted earnings of $4.45-$4.55 per share, representing growth of 6% to 8% from the prior-year period. The midpoint assumes no improvement in economic conditions and no year-over-year currency impact.
Full-year 2026 adjusted earnings are projected in the range of $17.70-$17.90 per share, indicating growth of 8-9%. Management expects currency to provide a 1% tailwind. Capital expenditures are forecast between $5.5 billion and $6 billion to fund maintenance and projects supporting the company’s $8.1 billion contractual sale-of-gas backlog.
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LIN Q2 Earnings & Revenues Beat Estimates on Volume & Pricing Growth
Key Takeaways
Linde plc (LIN - Free Report) reported second-quarter 2026 adjusted earnings of $4.50 per share, up 10% from $4.09 per share a year ago. The bottom line topped the Zacks Consensus Estimate of $4.49 per share by 0.22%.
Sales increased 9% to $9.29 billion from $8.49 billion in the prior-year quarter, surpassing the Zacks Consensus Estimate of $8.96 billion by 3.68%.
The strong quarterly results were driven by higher pricing, volume growth, favorable currency movements and acquisition. Electronics was the strongest end market.
Linde PLC Price, Consensus and EPS Surprise
Linde PLC price-consensus-eps-surprise-chart | Linde PLC Quote
LIN's Sales Growth Broadens Across End Markets
Underlying sales advanced 4% from the prior-year quarter, reflecting 2% higher pricing and 2% volume growth. Currency translation added 2% to reported sales, acquisitions contributed 1%, cost pass-through added 1% and Engineering provided another 1%.
Volume gains were led by electronics, manufacturing and chemicals and energy. Electronics sales grew 18%, the strongest increase among Linde’s major end markets. Manufacturing advanced 5%, metals and mining rose 4%, food and beverage increased 3%, and healthcare, chemicals and energy each gained 2%.
Linde's Americas Results Reflect Volume & Pricing
Americas sales increased 7% to $4.08 billion. Underlying sales grew 4%, supported equally by 2% higher pricing and 2% volume growth. Electronics and manufacturing, led by commercial aerospace, were the primary volume drivers.
Operating profit rose 5% to $1.27 billion. The operating margin declined 50 basis points to 31.2% as price increases and productivity initiatives were partly offset by cost inflation in the U.S. homecare business. Excluding that business, the region’s margin improved 20 basis points.
LIN's APAC Growth Leads Regional Performance
APAC sales increased 13% to $1.87 billion, representing the strongest growth among Linde’s main geographic segments. Underlying sales rose 8% as volumes increased 6% and pricing improved 2%. Project start-ups, equipment sales and demand from electronics and chemicals and energy supported volume growth.
Operating profit increased 8% to $531 million. However, the margin fell 120 basis points to 28.4%. Excluding cost pass-through effects, the decline was 70 basis points, reflecting the lower-margin sale of equipment and helium-related dislocation costs.
Linde's EMEA Sales Rise Despite Lower Volumes
EMEA sales advanced 7% to $2.30 billion. Favorable currency translation contributed 3%, while pricing and cost pass-through each added 2%. Acquisitions contributed another 1%. Underlying sales increased 1% as 2% higher pricing more than offset a 1% volume decline. The weakness was mainly tied to manufacturing.
Operating profit rose 6% to $823 million, while the margin decreased 40 basis points to 35.7%. Excluding cost pass-through, the margin improved 10 basis points on pricing and productivity actions.
LIN's Engineering & Other Businesses Advance
Linde Engineering sales increased 13% to $625 million, while operating profit rose 11% to $100 million. The operating margin was 16%, compared with 16.3% a year earlier, reflecting project timing and the mix of intercompany and third-party plant sales.
Quarterly order intake increased to $871 million from $311 million. The sale-of-plant backlog stood at $3 billion. Global Other sales increased 30% to $408 million, led by advanced materials demand from electronics and commercial aerospace. The business posted operating profit of $18 million against a $13 million loss a year earlier.
Linde's Profitability Stays Solid
Adjusted operating profit rose 7% year over year to $2.74 billion. The adjusted operating margin declined 60 basis points to 29.5% as higher pricing and productivity benefits were offset by cost inflation. Adjusted net income increased 8% to $2.09 billion.
LIN’s Backlog
At the end of the second quarter, the company’s high-quality project backlog amounted to $11.1 billion.
Linde’s Cash Flow Supports Shareholder Returns
Operating cash flow improved 3% to $2.27 billion. Capital expenditures increased 14% to $1.44 billion, including a 27% rise in project spending to $780 million. As a result, free cash flow declined to $833 million from $954 million. Linde returned $1.59 billion to shareholders through dividends and net share repurchases.
LIN Maintains a Substantial Balance Sheet
Linde ended June 2026 with cash and cash equivalents of $4.90 billion.
Total debt was $28.01 billion, comprising $4.86 billion in short-term debt, $2.47 billion in current long-term debt and $20.68 billion in long-term debt.
LIN's 2026 Outlook Signals Further Earnings Growth
For the third quarter, Linde expects adjusted earnings of $4.45-$4.55 per share, representing growth of 6% to 8% from the prior-year period. The midpoint assumes no improvement in economic conditions and no year-over-year currency impact.
Full-year 2026 adjusted earnings are projected in the range of $17.70-$17.90 per share, indicating growth of 8-9%. Management expects currency to provide a 1% tailwind. Capital expenditures are forecast between $5.5 billion and $6 billion to fund maintenance and projects supporting the company’s $8.1 billion contractual sale-of-gas backlog.
LIN’s Zacks Rank & Key Picks
Linde currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials sector are Axalta Coating Systems Ltd. (AXTA - Free Report) , Minerals Technologies Inc. (MTX - Free Report) and Sensient Technologies Corporation (SXT - Free Report) . SXT sports a Zacks Rank #1 (Strong Buy), while AXTA and MTX carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here
Axalta reported second-quarter 2026 adjusted earnings of 72 cents per share, which beat the Zacks Consensus Estimate of 65 cents per share.
As of June 30, 2026, AXTA had Long-term debt of $2.6 billion, and cash and cash equivalents of $636 million.
Minerals Technologies reported second-quarter 2026 adjusted earnings of $1.60 per share, which missed the Zacks Consensus Estimate of $1.64 per share.
As of July 5, 2026, MTX had total debt of $964.9 million, and cash, cash equivalents and short-term investments of $346.2 million.
Sensient Technologies reported second-quarter 2026 adjusted earnings of $1.20 per share, which beat the Zacks Consensus Estimate of $1.00 per share.
As of June 30, 2026, SXT had long-term debt of $763.5 million, and cash and cash equivalents of $31 million.