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Jun 30, 2023

Linde Q2 2023 Earnings Report

Linde's second-quarter performance in 2023 was marked by sales of $8.2 billion, a 3% decrease year-over-year, but underlying sales grew by 6%.

Key Takeaways

Linde reported a decrease in sales by 3% year-over-year, but underlying sales increased by 6%. The adjusted EPS was up 15% YoY. The company increased its full-year 2023 adjusted EPS guidance to $13.80 - $14.00, representing 12% to 14% growth year-over-year.

Sales were $8.2 billion, down 3% YoY, but underlying sales were up 6%.

Operating profit was $2.0 billion, with adjusted operating profit at $2.3 billion, up 15%.

The operating profit margin was 24.5%, and the adjusted operating profit margin was 27.9%, up 440 basis points.

EPS was $3.19, and adjusted EPS was $3.57, up 15% YoY.

Total Revenue
$8.2B
Previous year: $8.46B
-3.0%
EPS
$3.57
Previous year: $3.1
+15.2%
Adjusted Operating Margin
27.9%
Previous year: 23.5%
+18.7%
Gross Profit
$3.89B
Previous year: $3.52B
+10.5%
Cash and Equivalents
$3.36B
Previous year: $3.66B
-8.2%
Free Cash Flow
$1.29B
Previous year: $1.31B
-1.2%
Total Assets
$78.7B
Previous year: $77.9B
+1.1%

Linde

Linde

Linde Revenue by Segment

Forward Guidance

For the third quarter of 2023, Linde expects adjusted diluted earnings per share in the range of $3.48 to $3.58, up 12% to 15% versus prior-year quarter. For the full year 2023, the company expects adjusted diluted earnings per share to be in the range of $13.80 to $14.00, up 12% to 14% versus prior year.

Positive Outlook

  • Adjusted diluted earnings per share are expected to increase by 12% to 15% versus prior-year quarter for Q3 2023.
  • Adjusted diluted earnings per share are expected to be in the range of $3.48 to $3.58 for Q3 2023.
  • Full-year 2023 adjusted diluted earnings per share are expected to increase by 12% to 14% versus prior year.
  • Full-year 2023 adjusted diluted earnings per share are expected to be in the range of $13.80 to $14.00.
  • Full-year capital expenditures are expected to be in the range of $3.5 billion to $4.0 billion to support growth and maintenance requirements including the $4.4 billion contractual sale of gas project backlog.

Revenue & Expenses

Visualization of income flow from segment revenue to net income