Linde plc LIN reported third-quarter 2026 adjusted earnings of $4.59 per share, up 9% from $4.21 a year ago. The bottom line surpassed the Zacks Consensus Estimate of $4.52 per share by 1.55%.
Sales increased 9% year over year to $9.40 billion from $8.62 billion, beating the Zacks Consensus Estimate of $9.18 billion by 2.45%.
Higher pricing, volume growth and favorable currency movements supported the results. Electronics remained the strongest end market, while the company's project backlog stood at $10.8 billion.
Linde PLC Price, Consensus and EPS Surprise
Linde PLC price-consensus-eps-surprise-chart | Linde PLC Quote
LIN's Underlying Sales Growth Reflects Broad Demand
Underlying sales increased 5% year over year, reflecting 3% higher pricing and 2% volume growth. Currency translation, acquisitions and divestitures, cost pass-through and Engineering each contributed 1% to reported sales growth.
Electronics led end-market performance with 15% sales growth, followed by chemicals and energy at 12% and manufacturing at 7%. Metals and mining sales increased 3%, while food and beverage advanced 3% and healthcare grew 2%. The volume gains reflected demand across industrial and consumer-related markets.
Linde's Americas Sales Rise on Pricing Strength
Americas sales increased 11% year over year to $3.60 billion. Underlying sales advanced 9%, supported by 6% higher pricing and 3% volume growth. Electronics, metals and mining, and chemicals and energy were the primary volume drivers.
Operating profit rose 12% to $1.26 billion. The operating margin expanded 50 basis points to 35.1%, benefiting from higher pricing and productivity initiatives, partly offset by cost inflation. Favorable currency movements, particularly involving the Mexican peso and Brazilian real, also supported sales.
LIN's APAC Growth Benefits From Project Start-Ups
APAC sales increased 12% year over year to $1.95 billion. Underlying sales rose 8%, reflecting 5% volume growth and 3% higher pricing. Project start-ups, equipment sales and demand from electronics and chemicals and energy supported volumes.
Operating profit climbed 9% to $534 million. However, the operating margin contracted 70 basis points to 27.4%. Excluding cost pass-through effects, the decline was 40 basis points, primarily reflecting lower-margin equipment sales and helium-related dislocation costs.
Linde's EMEA Sales Advance on Pricing and Volumes
EMEA sales increased 7% year over year to $2.33 billion. Underlying sales improved 3%, supported by 2% higher pricing and 1% volume growth. Healthcare and food and beverage were the main contributors to higher volumes.
Operating profit increased 5% to $817 million, while the margin declined 80 basis points to 35.1%. Excluding cost pass-through effects, the margin remained flat year over year. Continued pricing and productivity initiatives supported regional profitability.
LIN's Engineering Business Posts Higher Profit
Linde Engineering sales increased 12% to $582 million, while operating profit advanced 6% to $107 million. The operating margin declined to 18.4% from 19.5% a year earlier, reflecting project execution and timing.
Quarterly order intake totaled $499 million, compared with $269 million in the prior-year period. The sale-of-plant backlog reached $2.94 billion. Global Other sales rose 2% to $944 million, although operating profit fell 32% to $42 million, primarily due to weaker performance at Lincare.
Linde's Profitability Reflects Cost Pressures
Adjusted operating profit rose 8% year over year to $2.76 billion. The adjusted operating margin declined 30 basis points to 29.4%, but remained flat after excluding cost pass-through effects. Adjusted net income increased 7% to $2.12 billion.
On a reported basis, operating profit declined to $2.15 billion from $2.37 billion. The company recognized $425 million in cost reduction program and other charges, including severance, restructuring-related expenses and noncash charges primarily associated with its U.S. homecare business.
LIN's Cash Flow Strengthens Shareholder Returns
Operating cash flow increased 8% to $3.17 billion. Capital expenditures rose 9% to $1.39 billion, including $750 million in project spending. Free cash flow improved to $1.78 billion from $1.67 billion. Linde returned $1.69 billion to shareholders through dividends and net share repurchases.
The company ended September 2026 with cash and cash equivalents of $3.95 billion. Total debt stood at $26.70 billion, comprising $4.65 billion in short-term borrowings, $1.46 billion in current long-term debt and $20.59 billion in long-term debt.
Linde Raises Full-Year Earnings Outlook
For the fourth quarter, Linde expects adjusted earnings of $4.40-$4.50 per share, representing growth of 5-7% year over year. Management anticipates no year-over-year currency impact, while the guidance midpoint assumes no improvement in economic conditions.
Full-year 2026 adjusted earnings are now projected at $17.82-$17.92 per share, compared with the previous guidance of $17.70-$17.90. The updated range indicates growth of 8-9%, including a 2% currency tailwind. Capital expenditures are expected between $5.5 billion and $6 billion, supporting maintenance and projects associated with the company's $7.9 billion contractual sale-of-gas backlog.
LIN currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some better-ranked stocks that you may want to consider, as they have the right combination of elements to post an earnings beat this reporting cycle.
Flotek Industries FTK specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. It currently has an Earnings ESP of +18.18% and a Zacks Rank #1.
Flotek Industries is scheduled to release third-quarter 2026 earnings on Nov. 3. The Zacks Consensus Estimate for earnings is pegged at 22 cents per share, indicating an improvement of 10% from the prior-year reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntsman Corporation HUN manufactures diversified organic chemical products and markets the products to a wide range of industrial and consumer customers. The company currently has an Earnings ESP of +36.14% and a Zacks Rank #3.
Huntsman is scheduled to release third-quarter 2026 earnings on Nov. 2. The Zacks Consensus Estimate for HUN’s earnings is pegged at 7 cents per share, indicating a 333.3% increase from the prior-year reported figure.
Air Products and Chemicals APD is involved in producing and marketing industrial gases for a wide range of industries. It currently has an Earnings ESP of +0.44% and a Zacks Rank #3.
Air Products and Chemicals is scheduled to release third-quarter 2026 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at $3.60 per share, indicating an improvement of 6.2% from the prior-year reported figure.
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Linde PLC (LIN): Free Stock Analysis Report
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