This article first appeared on GuruFocus .
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EPS:$4.33, a 10% increase year-over-year.
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Operating Margin:30%.
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Return on Capital:23.8%.
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Revenue:$8.8 billion, up 8% year-over-year.
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Operating Profit:$2.6 billion, an 8% increase year-over-year.
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Operating Cash Flow:$2.2 billion, 4% higher than prior year.
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Capital Expenditures:$1.3 billion.
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Free Cash Flow:$900 million.
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Dividend Growth:7% increase, marking 33 consecutive years of growth.
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Stock Repurchase:$800 million during the quarter.
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Healthcare Sales Growth:1% year-over-year.
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Food and Beverage Sales Growth:5% year-over-year.
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Electronics Sales Growth:10% year-over-year.
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Chemicals and Energy Sales Growth:3% year-over-year.
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Metals and Mining Sales Growth:3% year-over-year.
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Manufacturing Sales Growth:5% year-over-year.
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Guidance for Q2 2026 EPS:$4.40 to $4.50, 8% to 10% growth.
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Full Year 2026 EPS Guidance:$17.60 to $17.90, 7% to 9% growth.
Release Date: May 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Linde PLC ( NASDAQ:LIN ) reported a strong EPS growth of 10% to $4.33, showcasing resilience against a challenging economic backdrop.
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Operating margins reached an impressive 30%, with a return on capital at a healthy 24%, indicating efficient management and profitability.
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The electronics sector saw a significant 10% growth, driven by investments in advanced chips for AI, positioning Linde PLC ( NASDAQ:LIN ) well in the market.
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The company signed 9 bolt-on acquisitions in the Americas, contributing to future EPS growth and expanding its market presence.
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Linde PLC ( NASDAQ:LIN ) raised its annual dividend by 7%, marking 33 consecutive years of dividend growth, reflecting strong shareholder returns.
Negative Points
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The US home care business within the healthcare segment remained flat due to a new policy affecting service levels, impacting overall growth.
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EMEA experienced negative volumes, primarily due to on-site customers shifting production to more competitive regions outside Continental Europe.
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The helium market faced acute global shortages, although Linde PLC ( NASDAQ:LIN ) is well-positioned, the situation adds uncertainty to supply dynamics.
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APAC saw lower volumes driven by seasonal factors and weaker trends in industrial end markets, affecting overall sales growth.
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The construction and subcontractor environment in the US Gulf Coast remains challenging, causing delays in project timelines.
Q & A Highlights
Q: Can you explain the margin performance across different regions, particularly the strong improvement in the Americas and the flat performance in Europe and Asia? A: Matthew White, Chief Financial Officer, explained that on a full-year basis, Linde expects to raise margins for 2026, likely at the upper end of their traditional range. In Europe, weaker industrial and chemical environments, along with impacts from the Middle East conflict, have affected volumes. In Asia, seasonal factors and a one-off sale of equipment related to electronics contracts impacted margins. However, the company expects improvements in both regions as the year progresses.
Q: How is Linde positioned to support the commercial space sector, and what are the growth expectations for this market? A: Matthew White stated that Linde is well-positioned to support the growing space economy, particularly in the U.S. and internationally. The company is working with major and emerging launch providers to ensure capacity and contractual relationships are in place. Growth will depend on launch frequency, size, and propellant type, with hydrogen-based rockets potentially accelerating growth. Linde expects to reach significant sales in this sector, driven by increased satellite launches and replacements.
Q: What are the longer-term implications of the current geopolitical crisis on energy security and potential projects in conventional and renewable energy? A: Matthew White noted that energy independence and security are likely to be accelerated due to the crisis. While renewable energy remains a focus, it requires government support and subsidies to be viable. Conventional energy sources, such as LNG and oil sands, may see renewed interest due to their lower exploration risks. Linde expects continued interest in both conventional and renewable energy projects, depending on economic viability and government policies.
Q: How is Linde managing the impact of European energy price fluctuations on merchant and packaged gas pricing? A: Matthew White explained that Linde uses surcharges to manage short-term energy price volatility. If energy prices remain elevated for a sustained period, they may be incorporated into overall pricing. Currently, the company is using surcharges to address the volatility, but sustained increases could lead to structural price adjustments.
Q: What is the outlook for Linde's helium business given the current supply constraints? A: Matthew White stated that Linde's helium business is largely contracted, with 85% to 90% of sales under long-term agreements. The company has seen pricing rise due to recent supply constraints and expects this trend to continue. Linde is prioritizing securing long-term agreements with high-quality customers and anticipates incremental volumes and pricing as opportunities arise.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
